ALBANY, N.Y.—Momentive Performance Materials Inc. said it expects sales to be down for the fourth quarter of 2011 compared to the same period in 2010, but even with sales for the previous fiscal year.
Momentive said it expects to record sales of about $600 million and an operating loss of $32 million to $22 million in the fourth quarter of 2011, according to preliminary results for the quarter and fiscal year ended Dec. 31.
The company also predicts a combined adjusted EBITDA, excluding the impact of pro forma cost savings, of $32 million to $42 million in the quarter.
These figures are down from the fourth quarter of 2010, when the company recorded sales of $670 million, operating income of $59 million and Combined Adjusted EBITDA, excluding the impact of pro forma cost savings, of $110 million.
For the year, Momentive expects to record sales of about $2.6 billion, operating income of $138 million to $148 million and Combined Adjusted EBITDA, excluding the impact of pro forma cost savings, of $373 million to $383 million.
Sales were on par with 2010 fiscal year figures at $2.6 billion, but operating income was $262 million and Combined Adjusted EBITDA was $493 million in 2010.
“Our fourth quarter 2011 results reflected economic weakness in Europe and China, pricing pressures in certain end use markets, and inventory destocking as customers remained cautious in their order patterns considering the macro-economic volatility,” said Craig O. Morrison, Chairman, President and CEO. “We also experienced slower demand for our quartz products in the fourth quarter of 2011 due primarily to softer semiconductor markets.”