Privately owned Hexion Specialty Chemicals said it swung to a second-quarter profit versus a year-ago loss as sales volumes and prices rose. Net income was $52 million in the quarter versus a net loss of $56 million a year ago as revenues jumped to $1.3 billion from $956 million.
Lower expenses and an improved cost structure bolstered profit, partially offset by the impact from foreign currency, the company said. Sales volumes rose 30% from the prior-year period and 8 percent from the first quarter, aided by a recovery in Hexion's base epoxy business.
"Despite the ongoing volatility in various leading economic indicators, we remain optimistic that the recovery in volumes will continue in 2010," said Craig O. Morrison, Hexion's chairman and chief executive.
Hexion is owned by Apollo Management LP, a private equity firm that also owns the Harrah's casino chain and Norwegian Cruise Lines.
