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BORDEN CHEMICAL REPORTS SECOND QUARTER GROWTH; EXPECTS SALE TO APOLLO
August 9, 2004
Borden Chemical has reported growth of 11 percent in both sales and operating income for its second quarter ended June 30, 2004. Total sales for the period were $413 million versus $371 million for the previous year period, with the increase resulting largely from higher sales volumes and selling prices. Sales volumes for the quarter increased 8 percent, reflecting continuing improvement in domestic and international wood and industrial markets. Operating income for the quarter was $22.3 million versus $20 million for the previous year period, driven by strong growth in sales volumes across major business segments. Earnings before interest, taxes, depreciation and amortization (Segment EBITDA), adjusted for business realignment, impairments, non-operating expense, and certain other operating expense items, was $41 million, a 20 percent improvement over second quarter 2003. On July 5, Borden Chemical entered into a definitive agreement for sale of the company to Apollo Management, LP. The sale is anticipated to close in the third quarter. As a result of the agreement, a previously filed registration statement with the Securities and Exchange Commission for an initial public offering of the company's common stock has been suspended.