01 August 2012 12:03 [Source: ICIS news]
LONDON (ICIS)--Huntsman’s second-quarter net profit grew by 9% year on year to $124m (€100m), helped by strong growth from the group’s Polyurethanes business, the US-based chemicals major said on Wednesday.
Revenues for the three months ended 30 June fell slightly to $2.91bn from $2.93bn in the corresponding period last year, following a fall in sales from the group’s Performance Products, Advanced Materials, Textile Effects and Pigments segments.
Adjusted earnings before interest, tax depreciation and amortisation (EBITDA) improved by 14% to $365m compared with the same period in 2011, while adjusted diluted income per share improved by 21% to $0.58, Huntsman said.
“We experienced a solid second quarter, particularly in the quality of our earnings. Net income, adjusted EBITDA and adjusted diluted income all increased compared to the prior year,” said president and CEO Peter Huntsman.
“More than 40% of our adjusted EBITDA was derived from our Polyurethanes business, which experienced double-digit growth globally for our MDI [methyl di-p-phenylene isocyanate] products. Margins in that business improved as well,” he added.
The Polyurethanes division saw sales in the second quarter rise by 12% year on year to $1.27bn, due to higher sales volumes partially offset by lower average selling prices.
“MDI sales volumes increased as a result of improved demand in all regions and across most major markets,” Huntsman said.
Second-quarter sales in Huntsman’s Performance Products division fell by 14% year on year to $770m because of lower average selling prices and lower sales volumes.
“Average selling prices decreased primarily in response to lower raw material costs and the strength of the US dollar against major international currencies. Sales volumes decreased primarily due to lower demand across most markets and a greater shift to tolling arrangements,” the company said.
There was also a fall in the group’s Advanced Materials division during the second quarter, which declined by 4% year on year to $346m as average selling prices decreased, primarily in response to competitive market pressure and the strength of the US dollar against international currencies, Huntsman said.
Sales in the Huntsman’s Textile Effects and Pigments segments for the quarter fell by 3% to $195m and 4% to $407m, respectively.
Looking ahead, the CEO said: “We expect the annual EBITDA benefit above our current run rate will exceed $150m when completed by the end of 2013.”
($1 = €0.81)
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