Huntsman's Q4 net income up on US$1 bln merger termination settlement

27-Feb-09

Huntsman Corp., a Texas-based diversified chemical maker recorded a Q4 - 2008 net income of US$598 mln ($2.53 per diluted share) compared to net income of US$2 mln ($0.01 per diluted share) for the same period in 2007. The net income boost in the last quarter of 2008 was fueled by US$1 bln received from Hexion, Apollo Management, L.P. and certain of its affiliates as a part of a settlement agreement to terminate the merger agreement with Hexion Specialty Chemicals, Inc. Adjusted net loss from continuing operations for the period stood at US$91 mln ($0.38 loss per diluted share) compared to US$51 mln for same quarter last year. Sales revenues posted 18% dip in the quarter to US$2,048 mln from US$2,504 mln in the same period last year. For full year, Huntsman posted a net income of US$609 mln ($2.60 per diluted share) compared to net loss of US$172 mln ($0.74 loss per diluted share) for 2007. The company's Polyurethanes segment clocked Q4 sales revenues of US$796 mln compared to US$989 mln in the same period last year to lower sales volumes and lower average selling prices. In particular, this was a result of the downfall in US and European markets led by the decline in construction and housing markets. The Materials and Effects segment witnessed a decrease in revenues to US$470 mln from US$613 mln in the same quarter last year primarily due to lower sales volumes, partially offset by higher average selling prices. Total sales volumes decreased 24%, advanced materials volumes decreased 18% primarily due to lower demand in the automotive, electronics, construction and coatings markets, and textile effects sales volumes decreased 33%.