16 February 2012 17:50 [Source: ICIS news]
HOUSTON (ICIS)--Titanium dioxide (Ti02) will not be as profitable in 2012 as it was in 2011 as a result of rising raw material costs, US Huntsman said on Thursday.
“I’m not pessimistic about Ti02, but I don’t believe Ti02 is necessarily going to peak as much as it’s going to plateau,” Huntsman chief executive Peter Huntsman said during an earnings conference call with investors.
“I think that plateau is going to be somewhat choppy,” he added.
Peter Huntsman said he believes the company’s other segments should offset the expected sluggishness in Ti02.
“Are we going to see they type of increase in profitability year over year in Ti02 in 2012?” he said. “I don't think so, but I am a lot more bullish on other ends of our business.”
Huntsman CFO Kimo Esplin said titanium ore costs could more than double this year, adding prices would rise even higher if the company did not have contracts in place for 2012 and 2013.
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