02 November 2012 10:48 [Source: ICIS news]
LONDON (ICIS)--Huntsman swung to a net income of $116m (€89m) in the third quarter of 2012 from a loss of $34m in the same period last year, on the back of stronger earnings in its polyurethanes segment, the US-based chemicals major said on Friday.
Revenues for the three months ended 30 September fell 7.9% year on year to $2.74bn, while adjusted earnings before interest, tax depreciation and amortisation (EBITDA) grew by 16% to $401m.
“Our third-quarter 2012 adjusted EBITDA of $401m represents a new record in quarterly earnings. Compared to the prior year and quarter, improved earnings in our polyurethanes businesses more than offset the decline in our pigments business,” said Peter Huntsman, president and CEO.
“In addition to the increased earnings in our polyurethanes business, all of our non-pigments businesses saw an increase in earnings from the previous year,” he added.
In the group’s polyurethanes segment, revenue in the third quarter rose 3% year on year to $1.24bn, due to higher average selling prices and an improved sales mix, partially offset by lower sales volumes and the strength of the US dollar against major European currencies. Third-quarter adjusted EBITDA from polyurethanes increased steeply by 71% to $239m.
Huntsman saw revenues fall compared with the third quarter in 2011 in its performance products, advanced materials and pigments businesses by 12% to $742m, 6% to $328m and 30% to $319m, respectively.
The company said the declines in revenues in its performance products and advanced materials businesses were due to lower average selling prices. The decrease in revenues in its pigments division, which also reported adjusted EBITDA fall 55% year on year to $72m, was blamed on lower sales volumes driven by a decline in global demand.
“In addition to aggressive sales efforts, we continue to benefit from our ongoing restructuring and cost cutting that was started last year and will continue to deliver a better cost structure into 2013," the CEO said.
($1 = €0.77)
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