12 February 2013 13:14 [Source: ICIS news]
(updates with segment performance information in paragraphs 7-11)
LONDON (ICIS)--Huntsman’s net income swung to a net loss of $40m (€30m) in the fourth quarter of 2012 as a result of restructuring costs and the early repayment of debt, the US-based chemicals company said on Tuesday.
The loss, which compares with a $105m net profit during the fourth quarter in 2011 and a $116m net profit during the third quarter of 2012, is driven by the early repayment of $78m of debt, compared with $2m during the prior-year period. The company also spent $40m on restructuring costs during the period, Huntsman added.
Earnings before interest, tax, depreciation and amortisation (EBITDA) for the quarter stood at $104m compared with $273m during the fourth quarter of 2011, and revenues were broadly stable year on year at $2.62bn.
Net income for the year as a whole was $363m, a 47% increase on the $247m generated in 2011, the company added.
Huntsman CEO Peter Huntsman said: “We have put programs in place across our divisions that will enhance our future competitiveness and increase shareholder value. I expect the future annual benefits of these programs to be approximately $190m when complete in the middle of 2014.
“The company generated more than $200m in cash from operations and repaid $50m of term loans in the fourth quarter. We look forward to funding future growth opportunities with free cash flow generation and remain committed to reducing our overall debt,” he added.
Adjusted EBITDA for the company’s polyurethanes business more than doubled year on year during the quarter to $186m, driven by higher average prices and increased sales volumes, partially offset by the strength of the US dollar against the euro.
Methyl di-p-phenylene isocyanate (MDI) sales in particular were buoyed during the quarter by the recovery of the housing and automotive sectors in North America, Huntsman added.
Performance products adjusted EBITDA was also up 32% year on year to $79m despite reduced sales, as a result of increased contribution margins from the company’s amines, maleic anhydride (MA) and North American intermediates businesses.
Advanced materials adjusted EBITDA more than halved year on year to $6m because of competition-driven lower average selling prices, as well as lower contribution margins. The company recently announced a restructure of the advanced materials business to shore up its global competitiveness, which it expects to complete by mid-2014.
Textile division adjusted EBITDA was $1m compared to a $22m loss in the fourth quarter of 2011 as a result of lower costs post-restructuring and higher sales volumes, while adjusted EBITDA for pigments fell by 93% year on year to $10m, as a result of weak global demand and falling sales prices due to the strength of the US dollar against other key international currencies, the company said.
($1 = €0.75)
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