Home » Huntsman Experiences Steep Sales Decreases in 2020 Second Quarter
Huntsman Corp. recently reported second quarter 2020 results with revenues of $1.2 billion, a 30% decrease compared to the 2019 second quarter. Revenues in the Advanced Materials segment were $192 million, also a 30% decrease.
Huntsman attributes the decrease in revenues in the Advanced Materials segment to lower sales volumes; overall average selling prices remained unchanged. Sales volumes decreased significantly across all markets and regions, except in the global power market, primarily in relation to the global economic slowdown and customer destocking. Average selling prices increased in local currencies, offset by the impact of a stronger U.S. dollar against major international currencies.
Revenues in the Polyurethanes segment were $730 million in the second quarter of 2020, a 28% decline from the 2019 quarter. The decrease in revenues in the Polyurethanes segment was reportedly due to lower MDI average selling prices and lower overall polyurethanes sales volumes. MDI average selling prices decreased across most major markets in relation to the global economic slowdown resulting from the COVID-19 pandemic.
Overall Polyurethanes sales volumes decreased primarily in relation to the global economic slowdown and the resulting decrease in demand across most major markets, partially offset by growth in China during the second quarter of 2020 and additional sales volumes in connection with the Icynene-Lapolla acquisition.
“We were fortunate to have been more prepared than ever as we entered the second quarter in an unprecedented global economic crisis, with little to no visibility,” said Peter R. Huntsman, chairman, president, and CEO. “With our transformed balance sheet, there was no need to access capital markets and we completed the quarter with $2.6 billion of overall liquidity and generated positive free cash flow.
“We remain focused on what we can control and have accelerated and improved integration plans for our recent acquisitions, CVC Thermoset Specialties and Icynene-Lapolla. The total annualized targeted synergies for these acquisitions, to be achieved by the end of 2021, is now $35 million. Including these synergies, we have plans to achieve in excess of $100 million of targeted annualized savings by year end 2021. While the ongoing related global effects of COVID-19 remain uncertain and visibility continues to be poor, we see improving trends within most of our major markets and are optimistic that the worst of this economic slowdown is behind us.”