WATERFORD, N.Y.—Momentive Performance Materials Holdings Inc. reported an increase in net sales but a net loss of $8 million in its third quarter results.
Momentive showed net sales for the third quarter at $594 million, an increase of 5 percent compared to $567 million in 2016. The increase in net sales was driven primarily by volume gains across Momentive's portfolio due to increased demand in automotive, electronics, consumer and industrial end markets, according to a company release. Year-to-date compared to 2016, net sales have increased by 2.54 percent from $1.69 billion in 2016 to $1.73 billion in 2017.
Net loss for Momentive was $8 million, compared with a net loss of $17 million in 2016, a difference of 53 percent. The firm also reported a net loss of $19 million for the first nine months, down 58 percent compared to a loss of $45 million in 2016.
Segment EBITDA for the three months was $67 million, an increase of 2 percent compared with $66 million in the prior year's period. Year-to-date, it increased to $210 million from $173 million, a change of 21.4 percent.
The increase in EBITDA was driven primarily by demand in the company's Formulated and Basic Silicones and Quartz Technologies segments, offset partially by the timing of about $7 million of turnarounds costs and temporary lead/lag raw material inflation impacts. Momentive's facilities since have started up in normal course and are at full production, Momentive said. The company also raised prices across its silicones portfolio.
In the third quarter of 2017, Momentive reorganized its segment structure and bifurcated it Silicones segment into Performance Additives and Formulated and Basic Silicones to better reflect the company's specialty chemical portfolio and related performance, Momentive said.
By segment, Performance Additives for the third quarter increased net sales to $223 million from $215 in 2016, a change of 3.7 percent. For the year, it increased to $670 million from $638 million, raising by 5 percent.
Net sales for Formulated and Basic Silicones in the third quarter rose to $320 million compared to $309, a change of 4.5 percent. Year-to-date, the segment is down to $910 million from $925 million in 2016, a difference of 1.62 percent.
Net sales for Quartz Technologies rose to $51 million for the third quarter from $43 million in the same quarter last year, an increase of 18.6 percent. Year-to-date, the segment is up to $152 million from $126 million in 2016, an increase of 20.6 percent.
"Momentive delivered solid topline growth in the third quarter reflecting improved demand in our specialty silicones product portfolio and Quartz Technologies segment," Jack Boss, Momentive CEO and president, said in a statement. "Despite the impact of facility turnarounds in the third quarter on year-over-year comparability, we saw strong growth throughout our Formulated and Basic Silicones and Quartz Technologies segments, which enabled the company to post a year-over-year increase in segment EBITDA."
Momentive's global restructuring programs and siloxane production transformation are expected to generate about $48 million of savings in annual savings, the company said. Cumulatively through Sept. 30, Momentive has achieved $42 million of savings under this program and continues to evaluate additional structural cost savings opportunities.