During Huntsman's second quarter earnings conference call, the company provided third quarter adjusted EBITDA guidance of between approximately $310 million and $355 million, excluding Textile Effects. The company now expects third quarter adjusted EBITDA from continuing operations to be between $260 million and $280 million. As previously announced, Huntsman will begin reporting Textile Effects as discontinued operations following the announced agreement to sell the division to Archroma, a portfolio company of SK Capital Partners.
Peter Huntsman, chairman, president, and CEO commented, "Huntsman is feeling the same pressures as others in the industry as we are being impacted by persistent and extraordinary cost of energy in Europe, together with lower than expected demand across segments in our portfolio, primarily within polyurethanes and performance products. The economy in China continues to lag our expectations due to continued Covid-related lockdowns. While the United States remains our most resilient market, demand in residential housing has slowed.
"We remain on track to exceed our previously announced cost optimization and synergy program and expect to deliver an annualized run rate of approximately $170 million by year-end. Given the current operating environment, we are evaluating further cost reduction and optimization opportunities and we are actively moving product into Europe from our facilities in the United States and Asia."
For more information, visit: www.huntsman.com.