Huntsman Textile Effects sales volumes drop
Revenues for the second quarter of 2008 were $2,895.7 million, an increase of 17% as compared to $2,471.2 million for the second quarter of 2007 and an increase of 14% as compared to $2,540.4 million for the first quarter of 2008.
Net income for the second quarter of 2008 was $23.7 million or $0.10 per diluted share as compared to a net loss of $70.9 million or $0.30 loss per diluted share for the same period in 2007 and compared to $7.3 million or $0.03 per diluted share for the first quarter of 2008.
Adjusted net income from continuing operations for the second quarter of 2008 was $19.9 million or $0.09 per diluted share as compared to $83.8 million or $0.36 per diluted share for the same period in 2007 and $16.9 million or $0.07 per diluted share for the first quarter of 2008.
Adjusted EBITDA from continuing operations for the second quarter of 2008 was $209.8 million as compared to $246.4 million for the same period in 2007 and compared to $188.3 million for the first quarter of 2008.
Summarized earnings are as follows:
• On June 18, 2008, Hexion filed a lawsuit in Delaware seeking to avoid its obligations under the merger agreement. Huntsman strongly disagrees with allegations outlined in this lawsuit. A trial is scheduled to begin on September 8, 2008, to adjudicate these allegations.
• On June 23, 2008, Huntsman filed a lawsuit in Texas against Apollo and its principals Leon Black and Joshua Harris for fraud and tortious interference.
• With the conditional approval of the European Commission, which was granted on June 30, 2008, all significant regulatory approvals related to the merger other than FTC approval have now been received.
• On July 4, 2008, Huntsman's board of directors voted unanimously to exercise its right to extend the merger agreement. The termination date under the Merger Agreement is now October 2, 2008.
Peter R. Huntsman, our President and CEO, stated:
“I am very pleased with our results in the second quarter. Adjusted EBITDA was $209.8 million, an increase of 11% as compared to the first quarter results.
This increase in profitability was achieved in spite of a challenging raw material environment and the continued decline in the value of the U.S. dollar.
Sales volumes were strong in all of our divisions, with total volumes in our Polyurethanes division up by 14%, in Materials & Effects up 7%, in Performance Products up 13%, and in Pigments up 9%, all relative to the first quarter of 2008.
“As we look forward to the second half of 2008, we are encouraged by the recent moderation in crude oil and natural gas prices that we have seen in the past several weeks.
This, together with the aggressive actions we have recently taken to increase our selling prices, is expected to result in further opportunities to increase margins in many of our products.
We expect that Adjusted EBITDA in the second half of the yearwill be stronger than the results in both the first half of 2008 and the second half of 2007.
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