Decrease in revenues in Huntsman's Textile Effects Division

05 Aug '11

5 min read

Huntsman releases second quarter 2011 results.

Highlights:

• Revenues for the second quarter of 2011 were $2,934 million, an increase of 25% compared to $2,343 million for the same period in 2010 and an increase of 10% compared to $2,679 million for the first quarter of 2011.

• Adjusted EBITDA for the second quarter of 2011 was $318 million, an increase of 24% compared to $257 million for the same period in 2010 and an increase of 5% compared to $302 million for the first quarter of 2011.

• Adjusted net income for the second quarter of 2011 was $117 million or $0.48 per diluted share. This compares to adjusted net income of $75 million or $0.31 per diluted share for the same period in 2010 and adjusted net income of $114 million or $0.47 per diluted share for the first quarter of 2011.

• Net income attributable to Huntsman Corporation for the second quarter of 2011 was $114 million or $0.47 per diluted share. This compares to net income attributable to Huntsman Corporation of $114 million or $0.47 per diluted share for the same period in 2010 and net income attributable to Huntsman Corporation of $62 million or $0.26 per diluted share for the first quarter of 2011.

Recent Highlights

• Effective May 5, 2011, Mary C. Beckerle, Ph.D. was appointed as a new director to our Board of Directors and serves as a member of the Board's Nominating and Corporate Governance Committee. Dr. Beckerle is an internationally recognized scientist.

• On April 2, 2011, we completed the acquisition of the Indian chemicals business of Laffans Petrochemicals Ltd. The business manufactures amines and surfactants for use in the fast growing Asia Pacific region.

Peter R. Huntsman, our President and CEO, commented:

“Our second quarter 2011 revenues increased 25% compared to the prior year as a result of improvements in both pricing and demand. Despite inflation in raw material and other manufacturing costs our Adjusted EBITDA improved 24% compared to the prior year.” He added, "Given the sluggish global economic recovery, I am very pleased with the improving results of this past quarter. When combined with our strong performance from the first quarter, the first half of the year was one of the strongest in our company's history. With new growth projects and many of our products experiencing higher capacity utilization rates, we are optimistic about the second half of the year as underlying trends for our major businesses continue to improve."

Three Months Ended June 30, 2011 Compared to Three Months Ended June 30, 2010

Revenues for the three months ended June 30, 2011 increased to $2,934 million from $2,343 million for the same period in 2010. For the three months ended June 30, 2011, Adjusted EBITDA was $318 million compared to $257 million for the same period in 2010.

Performance Products
The increase in revenues in our Performance Productsdivision for the three months ended June 30, 2011 compared to the same period in 2010 was due to higher average selling prices and higher sales volumes. Average selling prices increased across almost all product groups primarily in response to higher raw material costs and the strength of major European currencies and the Australian dollar against the U.S. dollar. Sales volumes increased primarily due to the impact from the consolidation of our Sasol-Huntsman maleic anhydride joint venture during the second quarter 2011 and more production from our Arabian Amines Company joint venture which was starting up in the second quarter 2010. The decrease in Adjusted EBITDA was primarily due to a nonrecurring $15 million credit recorded in the second quarter of 2010 to appropriately reflect our investment in the Sasol-Huntsman maleic anhydride joint venture.

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