Huntsman sees strong underlying demand for their products
Huntsman, a global manufacturer and marketer of differentiated chemicals announced result for the second quarter 2010.
Second Quarter 2010 Highlights
• Revenues for the second quarter of 2010 were $2,343 million, an increase of 27% compared to $1,846 million for the same period in 2009 and an increase of 12% compared to $2,094 million for the first quarter of 2010.
• Adjusted EBITDA for the second quarter of 2010 was $257 million compared to $93 million for the same period in 2009 and $123 million for the first quarter of 2010.
• Net income attributable to Huntsman Corporation for the second quarter of 2010 was $114 million or $0.47 per diluted share. This compares to net income attributable to Huntsman Corporation of $406 million or $1.51 per diluted share for the same period in 2009 (including $531 million of net income or $2.27 per diluted share related to our terminated merger and related litigation) and $172 million loss or $0.73 loss per diluted share for the first quarter of 2010.
• Adjusted net income for the second quarter of 2010 was $75 million or $0.31 per diluted share. This compares to an adjusted net loss of $66 million or $0.28 loss per diluted share for the same period in 2009 and adjusted net loss of $16 million or $0.07 loss per diluted share for the first quarter of 2010.
Peter R. Huntsman, our President and CEO, commented:
"The second quarter of 2010 was a strong quarter for us, the combination of a number of conditions resulted in adjusted earnings we haven't seen since 2007. We saw strong underlying demand for our products as volumes grew across all of our businesses compared to the prior year as well as the prior quarter. We increased selling prices to offset recent pressure in raw material costs. In addition, the benefits of our successful cost saving efforts implemented in 2009 are evident in the bottom line."
He continued, "The third quarter is traditionally slower than the second within the chemical industry; notwithstanding this, we believe there is still significant long term upside to our business earnings. North American and European economies, which represent approximately two thirds of our volume, still show relatively modest growth. We continue to have idle capacity in many of our products that will be more fully utilized as demand improves. We are excited about the future of HUN and will continue our efforts to improve earnings in every division of the company."
The increase in revenues in our Textile Effects division for the three months ended June 30, 2010 compared to the same period in 2009 was due to higher sales volumes and higher average selling prices. Sales volumes increased across all business lines and in all regions primarily due to the worldwide economic recovery.
Average selling prices increased primarily due to favorable changes in product mix and the strength of the Indian Rupeeand Brazilian Real against the U.S. dollar. The increase in Adjusted EBITDA was primarily due to higher sales volumes and higher contribution margins partially offset by higher fixed costs in part due to our second quarter 2009 acquisition of Baroda.