Huntsman Corporation said it saw meaningful improvements across its business, while releasing financial results for the second quarter ending June 30, 2014, as net income skyrocketed more than 150%, from a year earlier.
Net income surged 153% to $119 million in the first half of 2014 from $47 million in the prior year period, mainly from increased demand for its key products such as MDI and amines and higher selling prices for many of its products.
However, revenues in the second quarter of 2014 increased slowly by 5.58% to $2,988 million from $2,830 million in the corresponding quarter of 2013.
NYSE-listed Huntsman reported adjusted EBITDA of $363 million in the second quarter of 2014, compared to $304 million in the prior year period, an improvement of 19%.
Correspondingly, adjusted diluted income per share too went up to $0.59 versus $0.39 in the second quarter of 2013.
Meanwhile, the Textile Effects division also posted a hike in sales, primarily due to higher average selling prices, partially offset by lower sales volumes.
Huntsman said, average selling prices at the Textile Effects division increased, primarily in response to higher raw material costs, while sales volumes declined due to the de-selection of lower value business.
It added, “The increase in adjusted EBITDA was also due to higher contribution margins and lower manufacturing and selling, general and administrative costs as a result of its restructuring efforts.”
CEO Peter Huntsman said, “We saw strong earnings in the second quarter as a result of increased demand for key products such as MDI and amines and higher selling prices for many of our products.
"We also benefited from restructuring efforts in our Advanced Materials and Textile Effects businesses. These results are well in line with our earlier forecast of substantial earnings growth in the next two to three years.”
With 5 distinct business divisions, Huntsman Corporation is a global manufacturer and marketer of differentiated chemicals serving a broad range of end markets. It operates more than 75 manufacturing and R&D facilities in 30 countries and employs around 12,000 associates.
