Huntsman Optimistic for 2019 Despite First Quarter Dip
Huntsman reports that its Polyurethanes segment saw decreased revenues in the 2019 third quarter due to lower average methylene diphenyl diisocyanate (MDI) and methyl tertiary butyl ether (MTBE) selling prices, partially offset by higher MDI sales volumes.
Huntsman Corp. recently reported first quarter 2019 revenues of $2 billion and net income of $131 million, compared to $2.3 billion and $350 million, respectively, in the 2018 first quarter. The company reports that its Polyurethanes segment saw decreased revenues in the 2019 third quarter due to lower average methylene diphenyl diisocyanate (MDI) and methyl tertiary butyl ether (MTBE) selling prices, partially offset by higher MDI sales volumes. MDI average selling prices decreased primarily due to a decline in polymeric MDI selling prices in China and Europe. MDI sales volumes increased primarily due to the startup of the company’s new Chinese MDI facility in 2018 and the acquisition of Demilec in the second quarter of 2018. MTBE average selling prices decreased primarily as a result of lower pricing for high octane gasoline.
The decrease in revenues in the company’s Performance Products segment for the first quarter of 2019 was reportedly due to lower sales volumes and lower average selling prices. Sales volumes decreased primarily due to weakened market conditions, while average selling prices were down primarily due to lower raw material costs and weakened market conditions.
Huntsman’s Advanced Materials segment also saw revenues decline in the 2019 first quarter. According to the company, the decrease was primarily due to lower average selling prices, which were down mainly as a result of the impact of a stronger U.S. dollar against major international currencies, partially offset by higher local currency selling prices. The impact of sales volumes on revenues remained relatively flat, as favorable product mix effect from sales volumes in the aerospace components market was offset by lower sales volumes in the power- and automotive-related markets.
“While global economic conditions remained challenging in the first quarter of this year, we are pleased with the relative resilience of our core downstream portfolio,” said Peter R. Huntsman, chairman, president and CEO. “The month of March ended slightly better than we projected, and while we remain cautious of certain regions of the world, notably Europe, we see momentum returning to Asia, especially in China. In 2019, we are on course to achieve our second best year ever. We remain focused on delivering consistent strong free cash flow and executing our downstream strategy through strategic investments, new products and continued globalization of recent bolt-on acquisitions. Our balance sheet is strong, our dividend yield is attractive, and we continue our balanced approach to capital allocation, including share repurchases.”
Additional details are available at www.huntsman.com.