31 July 2013 12:17 [Source: ICIS news]
LONDON (ICIS)--Huntsman Corporation said on Wednesday that its net income for the second quarter of 2013 dropped by 62% year on year to $47m (€35m) as a result of falling earnings for the company’s titanium dioxide (TiO2) division.
Revenues were down by 3% year on year at $2.83bn, while earnings before interest, taxes, depreciation and amortisation (EBITDA) were down by 29% for the quarter at $249m.
Although net income was down year on year, the quarter represents a sharp improvement following two consecutive quarters of net loss, due to lower sales volumes across most of the business in the first quarter of 2013, and restructuring costs in the closing quarter of 2012.Second-quarter profits were impacted by a $103m drop in TiO2 earnings and a force majeure at the company’s Rozenburg, Netherlands methyl di-p-phenylene isocyanate production (MDI) facility, which had a $25m negative impact on earnings for the quarter, huntsman said. The force majeure came into effect in late April and remained in effect until early July.
Earnings were broadly stable year on year across the company’s polyurethanes, performance products and advanced materials divisions, which posted revenues of $1.25bn, $777m and $321m respectively.
Textiles revenues were up by 11% to $216m on the back of higher volumes and selling prices, while pigments revenues slumped 18% to $334m on lower selling prices, which dragged down the division’s results despite higher volumes.
Peter Huntsman predicted that performance would continue to improve during the second half of the year as a result of cost-cutting and focus on growth sectors.
“While many areas of the global economy continue to moderate or languish, between new products, our focus on growing sectors and our further cost reduction efforts, we believe that we will see an improving second half of the year," he added.
($1 = €0.75)
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