Huntsman Corp. recently reported its first quarter 2020 results with revenues of almost $1.6 billion (a 5% decline compared to the prior year quarter), net income of $708 million, adjusted net income of $65 million, and adjusted EBITDA of $165 million.
“Fortunately, we have been well prepared for this global economic crisis,” said Peter R. Huntsman, chairman, president, and CEO. “The ongoing transformation of our business has made us a much better Company. Our balance sheet is stronger than ever before, with significant cash and robust liquidity. Visibility has at no time been more difficult, but our portfolio of businesses has never been more differentiated. In this environment we are laser focused on what is in our control and protecting our balance sheet strength. Having learned from prior crises, we preemptively reduced unnecessary inventories and are reducing capital spending this year by 30%, or approximately $90 million, by delaying discretionary spending. We have proactively taken other measures, including suspending share repurchases, and various cost reduction measures yielding immediate benefit. We will accelerate our plans to achieve synergies with our recent and pending strategic bolt-on acquisitions and aggressively press forward with the global scale up of our differentiated platform. Our Company is ready and able to take advantage of opportunities to come, and I am confident that Huntsman will emerge from this global crisis a stronger Company.”
Revenues in the Polyurethanes segment declined by 4% for the 2020 first quarter, to $888 million, compared to the same period of 2019. The decrease was reportedly due to lower MDI average selling prices and modestly lower overall polyurethanes sales volumes. MDI average selling prices decreased primarily due to a decline in component MDI selling prices in China and Europe. Overall polyurethanes sales volumes decreased slightly primarily due to decreased demand across most major markets, partially offset by modest growth in MDI sales volumes.
The Performance Products segment saw a more modest decrease of 3%, to $292 million, in the first quarter of 2020, reportedly due to lower average selling prices and lower sales volumes. Average selling prices decreased primarily due to lower raw material costs. Sales volumes decreased primarily due to weakened market conditions in our maleic anhydride business, partially offset by higher sales volumes in our amines business.
Revenues declined 11% in the Advanced Materials segment in the 2020 first quarter, to $241 million. The decrease was reportedly due to lower sales volumes and lower average selling prices. Sales volumes decreased across most markets, particularly commodity, industrial, and aerospace, primarily due to economic slowdown and customer destocking. Average selling prices decreased primarily due to the impact of a stronger U.S. dollar against major international currencies, partially offset by higher local currency selling prices.
Additional details are available at www.huntsman.com.