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Huntsman President, CEO pleased with Q1 results
08 May '10
5 min read
Huntsman announced result of first quarter 2010.
Peter R. Huntsman, our President and CEO, commented:
"I am pleased with our first quarter results. Our first quarter 2010 Adjusted EBITDA was more than double our prior year results despite the negative impact of approximately $40 million from planned maintenance and approximately $11 million from unplanned mechanical shut downs. Throughout the first quarter and April we saw positive signs of economic recovery within our business. Adjusted for the effect of our planned maintenance, first quarter sales volumes improved 19% compared to the previous year and 5% compared to the fourth quarter. Results from our restructuring efforts this past year are positively reflected in our earnings and are most visible in our Textile Effects business which had break-even earnings and our Pigments business which recorded the highest level of quarterly earnings since early 2006."
He added, "The positive momentum we are seeing in underlying demand suggests that second quarter sales volumes should continue to improve. We are aggressively working to increase our product prices to offset the increase we are seeing in raw materials."
Three Months Ended March 31, 2010 Compared to Three Months Ended March 31, 2009
Revenues for the three months ended March 31, 2010 increased to $2,094 million from $1,680 million for the same period in 2009. Revenues increased primarily due to higher sales volumes in all divisions with the exception of Polyurethanes which was impacted by a planned maintenance outage at our Port Neches, Texas PO/MTBE facility and higher average selling prices in all divisions with the exception of Advanced Materials. For the three months ended March 31, 2010, Adjusted EBITDA was $123 million compared to $57 million for the same period in 2009.
Starting in the first quarter of 2010, we reclassed the impact of LIFO inventory accounting gains and losses from our Performance Products division into Corporate, LIFO and Other. All prior period segment results have been conformed to this presentation. This reclass has no impact on the total Adjusted EBITDA or Adjusted net earnings of our company; however, we believe it provides greater transparency to the underlying operating results of our Performance Products division.
Textile Effects
The increase in revenues in our Textile Effects division for the three months ended March 31, 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 the strength of the Euro, Indian Rupee and Brazilian Real against the U.S. dollar as well as favorable changes in product mix. 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.
Peter R. Huntsman, our President and CEO, commented:
"I am pleased with our first quarter results. Our first quarter 2010 Adjusted EBITDA was more than double our prior year results despite the negative impact of approximately $40 million from planned maintenance and approximately $11 million from unplanned mechanical shut downs. Throughout the first quarter and April we saw positive signs of economic recovery within our business. Adjusted for the effect of our planned maintenance, first quarter sales volumes improved 19% compared to the previous year and 5% compared to the fourth quarter. Results from our restructuring efforts this past year are positively reflected in our earnings and are most visible in our Textile Effects business which had break-even earnings and our Pigments business which recorded the highest level of quarterly earnings since early 2006."
He added, "The positive momentum we are seeing in underlying demand suggests that second quarter sales volumes should continue to improve. We are aggressively working to increase our product prices to offset the increase we are seeing in raw materials."
Three Months Ended March 31, 2010 Compared to Three Months Ended March 31, 2009
Revenues for the three months ended March 31, 2010 increased to $2,094 million from $1,680 million for the same period in 2009. Revenues increased primarily due to higher sales volumes in all divisions with the exception of Polyurethanes which was impacted by a planned maintenance outage at our Port Neches, Texas PO/MTBE facility and higher average selling prices in all divisions with the exception of Advanced Materials. For the three months ended March 31, 2010, Adjusted EBITDA was $123 million compared to $57 million for the same period in 2009.
Starting in the first quarter of 2010, we reclassed the impact of LIFO inventory accounting gains and losses from our Performance Products division into Corporate, LIFO and Other. All prior period segment results have been conformed to this presentation. This reclass has no impact on the total Adjusted EBITDA or Adjusted net earnings of our company; however, we believe it provides greater transparency to the underlying operating results of our Performance Products division.
Textile Effects
The increase in revenues in our Textile Effects division for the three months ended March 31, 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 the strength of the Euro, Indian Rupee and Brazilian Real against the U.S. dollar as well as favorable changes in product mix. 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.
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