Improved Demand Increases Earnings for Huntsman
Huntsman net income for the second quarter of 2010 was $114 million, or $0.47 per diluted share; net income was $406 million, or $1.51 per diluted share, for the same period in 2009.
The company reported adjusted net income for the second quarter of 2010 of $75 million, or $0.31 per diluted share, compared to an adjusted net loss of $66 million, or $0.28 loss per diluted share, for the same period in 2009, and an adjusted net loss of $16 million, or $0.07 loss per diluted share, for the first quarter of 2010. Adjusted net income and adjusted EBITDA for the second quarter 2010 includes a nonrecurring $15 million pre-tax benefit to appropriately reflect the company’s investment in the Sasol-Huntsman maleic anhydride joint venture. Adjusted net income also includes a $15 million pre-tax one-time reduction to interest expense related to a cross currency swap. The combined effect of these non-recurring items was approximately $0.09 per diluted share.
“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,” said Peter R. Huntsman, president and CEO. “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.
“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,” he said. “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 the company and will continue our efforts to improve earnings in every division of the company.”
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