HEXION (MSC) saw its loss widen to $97 million in the quarter ended compared with $11 million a year ago.
Revenue during the quarter dropped 16.61 percent to $758 million from $909 million in the previous year period. Gross margin for the quarter contracted 326 basis points over the previous year period to 10.16 percent. Operating margin for the quarter stood at negative 4.75 percent as compared to a positive 4.84 percent for the previous year period.
Operating loss for the quarter was $36 million, compared with an operating income of $44 million in the previous year period.
"We are pleased to report solid fourth quarter fundamental business performance in-line with our previously announced preliminary results," said Craig O. Morrison, chairman, president and chief executive officer. "In particular, we continue to see solid growth in our Forest Products Resins Division and are encouraged by the sequential improvements we are seeing in our oilfield proppants business from trough conditions in the second quarter. Going forward, we remain focused on accelerating the growth of our specialty product portfolio through strategic capital investments, executing against structural cost reduction initiatives and deleveraging Hexion’s balance sheet."
Operating cash flow turns negativeHEXION has spent $20 million cash to meet operating activities during the year as against cash inflow of $213 million in the last year. Cash flow from investing activities was $210 million from investing activities during the year as against cash outgo of $155 million in the last year. It has incurred net capital expenditure of $65 million on net basis during the year, down 58.86 percent or $93 million from year ago.
The company has spent $235 million cash to carry out financing activities during the year as against cash inflow of $24 million in the last year period.
Working capital drops significantly
HEXION has witnessed a decline in the working capital over the last year. It stood at $146 million as at Dec. 31, 2016, down 48.41 percent or $137 million from $283 million on Dec. 31, 2015. Current ratio was at 1.19 as on Dec. 31, 2016, down from 1.37 on Dec. 31, 2015.
Debt comes downHEXION has recorded a decline in total debt over the last one year. It stood at $3,504 million as on Dec. 31, 2016, down 7.25 percent or $274 million from $3,778 million on Dec. 31, 2015. Total debt was 170.51 percent of total assets as on Dec. 31, 2016, compared with 158.61 percent on Dec. 31, 2015. Disclaimer: Please note that this is an auto-generated article. IRIS does not guarantee the accuracy, adequacy or completeness of any information and is not responsible for any errors or omissions or for the results obtained from the use of such information. IRIS especially states that it has no financial liability whatsoever to any user on account of the use of information provided on its website. For queries contact: editor@irisindia.net
