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.