WATERFORD, N.Y.—Momentive Performance Materials reported a minor increase in net sales and a net loss of in its first quarter 2017 results.
Net sales grew 1.5 percent to $544 million from the previous year. The change reflects improved product mix in specialty silicone products and higher quartz business sales, offset by lower volumes of siloxane derivative products, according to Momentive's financial statement.
Momentive posted a net loss of $30 million on the quarter, compared to an $18 million loss in the prior-year quarter. Operating income increased about 9 percent to $98 million.
Divided by segment, the silicones segment saw its revenue drop 1 percent to $495 million for the three-month period. The unit's EBITDA climbed 42 percent from the 2016 quarter to $71 million. Momentive said he increase in EBITDA was driven primarily by improved demand in automotive, consumer products and electronics markets, production efficiencies and raw materials deflation in the silicones segment.
Momentive's global restructuring programs and siloxane production transformation are expected to generate approximately $45 million in annual savings, according to the statement. During the first quarter, Momentive identified another $3 million of incremental savings under the program, which increased its expected value to $48 million. So far, Momentive has achieved $33 million of savings through the program.