Huntsman has 'marked improvement' with $50m in Q1 profit

17 April 2002 22:56  [Source: ICIS news]

HOUSTON (CNI)--Huntsman Corporation reported Wednesday a "marked improvement" in its first quarter results, saying job reductions and other cost cutting measures helped generate $50m (Euro57m) in earnings.

As a privately-held company, Salt Lake City, Utah-based Huntsman Corp usually does not issue quarterly earnings reports or statements, but spokesman Don Olsen said the company has enjoyed such a marked turnaround compared to first quarter 2001, "we thought we'd let the industry know about it."

The company said its earnings before interest, taxes, depreciation and amortisation (Ebitda) of $50.2m for the period ending 31 March are a welcome turnaround from the nearly $15m in losses reported for first quarter 2001.

The company did not reveal sales figures or other financial data for the just ended quarter.

In a statement, Peter Huntsman, president and chief executive of Huntsman Corp, said: "We are very encouraged by Huntsman Corporation's recent performance." Citing "some of the worst economic conditions in the history of the chemical industry," Peter Huntsman said the company's performance improvement is due chiefly to the elimination of 800 positions and permanent cost reductions of more than $130m "in our annual fixed cost and overhead expenses."

"We are pleased to see the benefits of that initiative in our first quarter results," Huntsman said. Olsen said the cost-cutting initiative was started in the second quarter last year.

Peter Huntsman said the firm is "experiencing increased demand for most of our products and are optimistic that we will see continuing financial improvements."

Huntsman Corp also reported that the Huntsman companies overall had first quarter Ebitda of $132m. No other first quarter total figures were offered.

The Huntsman companies include Huntsman Corporation, made up chiefly of Huntsman's North America operations, and Huntsman International, which encompasses the companies' European and Asian operations. The company said total annual revenues are approximately $8bn.

Huntsman is the world's largest privately-held chemicals company.

By: Joe Kamalick
+1 713 525 2653

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