Hexion Specialty Chemicals Posts Q1 Loss

Privately held Hexion Specialty Chemicals posted a first-quarter loss, though revenue and demand for its products jumped.

The company reported a net loss of $7 million compared with net income of $117 million for the same period last year, which included a large gain from early debt repayment. Revenue rose 28 percent to $1.17 billion, while volume rose 25%.

"We remain optimistic that the gradual recovery in volumes will continue in 2010," Chief Executive Craig O. Morrison said. "However, we believe the extent of the economic recovery is likely to vary significantly by industry sector and geographical region."

Hexion is owned by Apollo Management LP, a private equity firm that also owns the Harrah's casino chain and Norwegian Cruise Lines.