Huntsman Corporation reported first quarter 2013 results with revenues of $2,702 million and adjusted EBITDA of $220 million.
First Quarter 2013 Highlights
-Adjusted EBITDA was $220 million compared to $407 million in the prior year period (adjusted to exclude amortization of pension and postretirement actuarial losses of $19 million and $10 million, respectively).
-Adjusted diluted income per share was $0.19 compared to $0.77 in the prior year period (adjusted to exclude amortization of pension and postretirement actuarial losses of $0.05 and $0.04, respectively).
-Net loss attributable to Huntsman Corporation was $24 million compared to net income of $163 million in the prior year period.
-We estimate first quarter 2013 EBITDA was impacted by approximately $55 million as a result of our planned maintenance at our Port Neches, TX facility during the period.
Peter R. Huntsman, our President and CEO, commented:
"During the first quarter this year we saw a meaningful improvement in our MDI polyurethane margins. We expect this trend to continue as industry fundamentals improve.
I am encouraged by general demand trends across our businesses in North America and Asia and am optimistic about future prospects of our business in the key markets we serve. With the successful restart of our Port Neches facility and in excess of $165 million of annual cash improvements in the next several quarters, we continue to forecast that our non-TiO2 divisions will collectively do better this year than last."
Segment Analysis for 1Q13 Compared to 1Q12
The decrease in revenues in our Polyurethanes division for the three months ended March 31, 2013 compared to the same period in 2012 was primarily due to lower sales volumes partially offset by higher average selling prices. MDI sales volumes decreased in the European region partially offset by increased sales volumes in the Asia Pacific and Americas regions. PO/MTBE sales volumes decreased primarily due to the timing of shipments. MDI average selling prices increased in all regions primarily in response to higher raw material costs. PO/MTBE average selling prices decreased primarily due to less favorable market conditions. The decrease in adjusted EBITDA was primarily due to lower PO/MTBE earnings (first quarter 2012 benefited from industry supply outages) partially offset by higher MDI contribution margins.
The decrease in revenues in our Performance Products division for the three months ended March 31, 2013 compared to the same period in 2012 was due to lower sales volumes partially offset by higher average selling prices. Sales volumes decreased by 18% as a result of scheduled maintenance on our olefins and ethylene oxide facilities in Port Neches, Texas in the first quarter of 2013. Excluding the impact of this scheduled maintenance sales volumes would have increased by approximately 2%. Average selling prices increased primarily due to sales mix effect. The decrease in adjusted EBITDA was primarily due to the impact of our scheduled maintenance. As a result of lower upstream margins and lower product sales we estimate the impact of this maintenance to be approximately $55 million on the first quarter of 2013.