Huntsman (Salt Lake City, Utah / USA; www.huntsman.com) has reported operating profit (adjusted EBITDA) of USD 165m (EUR 121m) for the fourth quarter of 2009, compared with USD 51m in the same period of 2008, and USD 200m in the third quarter of 2009. Sales in the period were USD 2.10 bn, a year-on-year increase of 2% and 1% down on the third quarter of 2009. Volumes increased year-on-year by 13% in the period. Huntsman president and CEO Peter Huntsman described the quarter as very encouraging. During the year the company eliminated over USD 150m in costs and reduced working capital by USD 500m, he added, and, despite challenging economic conditions in 2009, the company maintained consistent margins on a per unit basis throughout the business. Full year operating profit in 2009 was USD 511m, down from USD 643m in 2008, on sales down 24% year-on-year at USD 7.76 bn.

Operating profit in the company’s largest division, polyurethanes, was USD 135m in the fourth quarter of 2009, up from USD 13m in the same period of 2008, thanks to higher margins and improved volumes as well as the comparative low result in the fourth quarter of 2008 caused by the storms on the US Gulf Coast. Sales in the period increased 6% year-on-year to USD 841m with higher volumes being partially offset by lower average selling prices. Full year operating profit was marginally up on 2008, at USD 384m, on sales down 26% year-on-year at USD 3.0 bn.

Looking to the future, Peter Huntsman said: “We look forward to improving market conditions in 2010. We have a number of innovative products in our pipeline that address energy concerns that will provide long term benefits. I expect our operational discipline, improving global market conditions and stronger capacity utilisation to further enhance our earnings potential.”

In an interview with “Bloomberg” news agency following the results announcement, Peter Huntsman said demand for chemicals had stabilised in North America and Europe, and that he believed that a “double dip” recession is unlikely. However, he added that there are no signs of a recovery in Europe, which accounts for 30% of Huntsman’s sales. “Relative to 2006 or 2007, everything in Europe is just a little softer, whether it’s furniture, footwear, coatings, appliances, textiles or carpets. We just are not seeing western Europe come back very fast. Things are very slow,” he told Bloomberg.

e-Service:
Huntsman’s press release on its fourth quarter and full year results for 2008 with segment report as a PDF document (77 KB)