Momentive releases first results since restructuring

Waterford, New York — Silicones manufacturer Momentive Performance Materials Inc. presented mixed but optimistic financial results in its first year-end report since it announced its balance sheet restructuring last October.

Sales for fiscal year 2014 were $2.48 billion (€2.31 billion), up 3 percent from 2013’s $2.4 billion, Momentive announced 30 March. The company credited increased volume in silicones for the improvement in sales.

Earnings before taxes, interest, depreciation and amortization were $238 million in 2014, even with 2013 results, Momentive said.

Gains from the company’s silicones portfolio were offset by cyclical demand for semiconductor-related quartz products and an increase in corporate expenses, the company said.

For the fourth quarter ended 31 Dec, Momentive’s net sales were down 2 percent, to $603 million from $614 million. The strengthening of the US dollar more than offset price and mix improvements in the company’s silicones sector during the quarter, it said.

“On a constant currency basis, net sales would have increased 2 percent,” Momentive said.

Segment EBITDA, however, increased 17 percent during the quarter, to $61 million from last year’s $52 million. Strong growth in Momentive’s specialty silicones portfolio drove the earnings increase, which was partially offset by cyclical demand for semiconductor-related quartz products, Momentive said.

Momentive announced its emergence from Chapter 11 bankruptcy proceedings on 24 Oct, 2014, and at that time announced fresh start accounting procedures which created a new entity for financial reporting purposes.