Huntsman: Lower energy costs to have 'positive’ impact

24 May 2005 23:42  [Source: ICIS news]

HOUSTON (CNI)--Lower energy and raw material costs could have a positive impact on profit margins for US chemical major Huntsman, the company’s chief executive said Tuesday.

 

Peter Huntsman, president and chief executive of Huntsman, noted at the MatlinPatterson 2005 limited partners annual meeting that declines in the selling prices of a select number of commodity products including propylene and ethylene and their derivatives “have been well publicised."

 

Continued Huntsman: "We also have seen lower energy and raw material costs over the course of the past several weeks. If these declines continue we would expect to see meaningful opportunities to expand profit margins in many of our differentiated products."

 

Huntsman noted that the company's differentiated segments, including polyurethanes, advanced materials and performance products, contributed over 50% of the company's adjusted earnings before interest, tax, depreciation and amortisation (EBITDA) in the 2005 first quarter.

 

Huntsman said the company expects 2005 second quarter adjusted EBITDA will be only slightly “lower than the record levels achieved in the first quarter."

 

The Woodlands, Texas-based Huntsman is a global manufacturer and marketer of commodity and differentiated chemicals with revenues of $11.5bn (Euro9.1bn).

 

MatlinPatterson is a major Huntsman shareholder.  It acquired its stake in 2002 when it purchased the distressed bonds of Huntsman, later swapping them for an almost 50% stake in the company.

By: Mike Sheridan
+1 713 525 2653

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