Hexion Specialty chemicals reported a net loss of $4 million in the second quarter, compared to a net loss of $75 million in the same period last year. Sales rose 10%, to $1.46 billion. While we experienced ongoing volatility and historically high prices for several key raw materials, such as phenol and urea, our ability to leverage our contractual pass through capabilities helped us partially offset the rapid rise in raw material costs, says Craig O. Morrison, chairman, president, and CEO. Despite these raw material headwinds, our operating margin improved 163 basis points compared to the second quarter of 2006, reflecting an ongoing focus on cost-control and productivity initiatives, Morrison says. Hexion says strong international customer demand offset softness in the North American residential construction and automotive sector. Hexion signed a definitive agreement last month to acquire Huntsman for $10.6 billion. In June it agreed to acquire Arkema s urea-formaldehyde resins business for an undisclosed sum.
