An unplanned manufacturing disruption of PO/MTBE, led to US based Huntsman Corporation reporting a lower adjusted EBITDA, from a year ago quarter, in the third quarter of 2014.
Huntsman said adjusted EBITDA amounted to $356 million in the three months to September 2014, down from $376 million in the prior year period.
However, adjusted diluted income per share in the third quarter of 2014 rose to $0.60 from $0.54 in the third quarter of 2013.
Third quarter of 2014, net income attributable to Huntsman Corp touched $188 million compared to $64 million in the same quarter of 2013.
“Third quarter 2014 was impacted by $94 million of tax benefit resulting from foreign tax credit elections,” Huntsman explained.
Revenue in the third quarter of 2014 too grew slowly to $2.88 billion in the reporting quarter from $2.84 billion in the year earlier quarter.
Higher average selling prices, partially offset by lower sales volumes, helped the Textile Effects division notch up higher revenues for the three months to September 2014.
“Average selling prices increased primarily in response to higher raw material costs and improved sales mix, while sales volumes fell from de-selection of lower value business,” Huntsman noted.
The Textile Effects segment also posted a hike in adjusted EBITDA, due to higher contribution margins, as a result of restructuring efforts.
As of September 30, 2014, Huntsman had $1,365 million of combined cash and unused borrowing capacity compared to $1,048 million at December 31, 2013.
On October 1, 2014, it successfully completed the acquisition of the Performance Additives and Titanium Dioxide businesses of Rockwood for $1.04 billion in cash and assumed certain unfunded European pension liabilities.
In August 2014, Huntsman increased its existing revolving credit facility by $200 million to $600 million and in October 2014, it was increased by an additional $25 million.
Total capital expenditures for the three months ended September 30, 2014 were $137 million and it expects to spend approximately $550 million on capital expenditures in 2014.
CEO Peter Huntsman said, “We continue to see growing demand for key products such as MDI polyurethanes, amines, maleic, aerospace composites and environmentally friendly textile dyes and chemicals.”
“Third quarter EBITDA from these products increased more than $30 million compared to the prior year and the strength in our earnings is underpinned by broad earnings growth from multiple products across our divisions,” he added. (AR)
