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Everchem Updates
VOLUME XXI
September 14, 2023
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December 10, 2020
Huntsman Updates its Fourth Quarter Outlook
Download as PDF December 10, 2020 6:30am EST
THE WOODLANDS, Texas, Dec. 10, 2020 /PRNewswire/ — Huntsman Corporation (NYSE: HUN) today updated its fourth quarter 2020 outlook. Overall the Company currently expects its fourth quarter adjusted EBITDA to be better than its prior guidance and above the prior year by between 20% and 25%. For the Polyurethanes segment, fourth quarter adjusted EBITDA is now expected to be better than third quarter 2020 adjusted EBITDA by at least 20%. The increase versus the previous guidance is being driven by stronger than expected overall demand as well as higher MDI component margins, most notably in Asia. For the Performance Products segment, fourth quarter adjusted EBITDA is currently expected to be better than third quarter 2020 by nearly 15%. For the Advanced Materials segment, fourth quarter adjusted EBITDA is now expected to be approximately in-line with the third quarter 2020. For the Textile Effects segment, fourth quarter adjusted EBITDA is now expected to be approximately flat with the prior year fourth quarter.
The Company remains on-track to close on the sale of approximately 42.5 million shares it holds in Venator Materials PLC to funds managed by SK Capital Partners, LP before year-end 2020. Additionally, the Company intends to redeem in full €445 million in aggregate principal amount of its 5.125% Senior Notes due 2021 at par with available liquidity. The redemption date will be January 15, 2021, and the redemption price will equal to 100% of the principal amount of the notes, plus accrued and unpaid interest on the redemption date. Redeeming the notes will reduce the Company’s interest expense by approximately $25 million on an annual basis.
https://www.huntsman.com/news/media-releases/detail/465/huntsman-updates-its-fourth-quarter-outlook
December 9, 2020
BASF Weighs Sale of $400 Million in U.S. Chemical Assets
Andrew Noël, Bloomberg News
The BASF SE logo sits on banners flying outside the company’s headquarters in Ludwigshafen, Germany, on Friday, Feb, 28, 2020. The chemical industry became the latest sector to be hit by the coronavirus after German giant BASF warned the outbreak could lead to the lowest growth in production since the financial crisis more than a decade ago. Photographer: Alex Kraus/Bloomberg , Bloomberg
(Bloomberg) — BASF SE is exploring the sale of some U.S. chemicals assets that could fetch around $400 million, as Chief Executive Officer Martin Brudermueller seeks to streamline the company’s portfolio, people familiar with the matter said.
The world’s largest chemical producer is considering the divestment of a surfactants plant in Kankakee, Illinois, that could be valued at about $250 million, according to the people, who asked not to be identified as the plans are private.
BASF is also working with an adviser to gauge interest in a kaolin business in the southern U.S. state of Georgia, the people said. Those operations could fetch at least $150 million, the people said.
Deliberations are ongoing, and no final decisions have been made on the potential disposals, according to the people. A representative for BASF declined to comment.
Under Brudermueller, BASF has been streamlining its operations. In late 2019, it agreed to sell its construction chemicals business to private equity firm Lone Star Funds for 3.2 billion euros.
BASF has also been preparing a potential stock market listing for Wintershall Dea GmbH, its oil and gas venture with billionaire Mikhail Fridman. Brudermueller said on an Oct. 28 conference call that only some smaller units are left to be divested under its current plan, and BASF has “no urgent need” to rush ahead.
Any proceeds from asset sales in the U.S. would raise funds for BASF at a time when the coronavirus pandemic is hurting demand. BASF reported a net loss of 2.1 billion euros ($2.6 billion) in the third quarter due to heavy writedowns linked to the aviation and automobile industries.
The company’s shares have fallen about 5% this year, giving it a market value of 58.7 billion euros.
December 9, 2020
BASF Weighs Sale of $400 Million in U.S. Chemical Assets
Andrew Noël, Bloomberg News
The BASF SE logo sits on banners flying outside the company’s headquarters in Ludwigshafen, Germany, on Friday, Feb, 28, 2020. The chemical industry became the latest sector to be hit by the coronavirus after German giant BASF warned the outbreak could lead to the lowest growth in production since the financial crisis more than a decade ago. Photographer: Alex Kraus/Bloomberg , Bloomberg
(Bloomberg) — BASF SE is exploring the sale of some U.S. chemicals assets that could fetch around $400 million, as Chief Executive Officer Martin Brudermueller seeks to streamline the company’s portfolio, people familiar with the matter said.
The world’s largest chemical producer is considering the divestment of a surfactants plant in Kankakee, Illinois, that could be valued at about $250 million, according to the people, who asked not to be identified as the plans are private.
BASF is also working with an adviser to gauge interest in a kaolin business in the southern U.S. state of Georgia, the people said. Those operations could fetch at least $150 million, the people said.
Deliberations are ongoing, and no final decisions have been made on the potential disposals, according to the people. A representative for BASF declined to comment.
Under Brudermueller, BASF has been streamlining its operations. In late 2019, it agreed to sell its construction chemicals business to private equity firm Lone Star Funds for 3.2 billion euros.
BASF has also been preparing a potential stock market listing for Wintershall Dea GmbH, its oil and gas venture with billionaire Mikhail Fridman. Brudermueller said on an Oct. 28 conference call that only some smaller units are left to be divested under its current plan, and BASF has “no urgent need” to rush ahead.
Any proceeds from asset sales in the U.S. would raise funds for BASF at a time when the coronavirus pandemic is hurting demand. BASF reported a net loss of 2.1 billion euros ($2.6 billion) in the third quarter due to heavy writedowns linked to the aviation and automobile industries.
The company’s shares have fallen about 5% this year, giving it a market value of 58.7 billion euros.
December 9, 2020
Tempur Sealy Provides Market Update
Wed December 9, 2020 6:45 AM|PR Newswire|About: TPX
– Improved Fourth Quarter Adjusted EBITDA Outlook
– Provides Details on Capital Allocation Plan
PR Newswire
LEXINGTON, Ky., Dec. 9, 2020 /PRNewswire/ — Tempur Sealy International, Inc. (TPX) (NYSE: TPX, “Tempur Sealy” or “Company”) today announced that fourth quarter product demand continues to be strong around the world. Management has an improved profitability outlook for the fourth quarter of 2020 compared to the same period last year, and now expects adjusted EBITDA growth of approximately 30% on low double-digit net sales growth. The improvement is driven by stronger than expected U.S. e-commerce and international sales, combined with favorable company-wide margins. The supply constraints that continue to impact the Company’s U.S. Sealy and Sherwood production have been greater than expected.
Tempur Sealy Chairman and CEO Scott Thompson stated, “Tempur Sealy’s global operating scale provides significant cost and sourcing advantages that have helped the team manage the robust sales environment and the industry’s challenged supply chain. Our well-established omni-channel marketing approach has served us well as our online direct-to-consumer Tempur-Pedic and Cocoon by Sealy businesses are experiencing triple-digit sales growth over the comparable prior-year quarter.”
Capital Allocation
The Company’s long-term capital allocation strategy focuses on four areas: repurchasing shares, debt management, investing in operations and accretive acquisitions. The Company today shared additional details on its plan.
The Company is:
- Targeting share repurchases of approximately $280 million for 2020, including approximately $100 million in share repurchases in the fourth quarter.
- Intending to redeem in the first quarter of 2021 $125 million of the $250 million outstanding on the Company’s Senior Notes due 2023, funded by lower cost long-term debt.
- Planning to invest an incremental $150 million over the next three years to support growth initiatives. The Company plans to expand its three existing foam facilities and open one new state-of-the-art foam facility in the U.S. This initiative is expected to increase U.S. pouring capacity for Tempur material and base foam by approximately 50%.
Thompson continued, “Our commitment to serving consumers wherever and however they want to shop with the highest quality products and service has fueled strong demand for our industry leading Tempur-Pedic and Sealy brands and our rapidly growing OEM business. We expect the industry, and specifically the Company’s business, to continue to expand. The new capacity will ensure that we can fully meet the consumer’s demand for our products across the multitude of channels we serve: wholesale, direct to consumer, and OEM.
https://seekingalpha.com/pr/18115526-tempur-sealy-provides-market-update
December 9, 2020
Tempur Sealy Provides Market Update
Wed December 9, 2020 6:45 AM|PR Newswire|About: TPX
– Improved Fourth Quarter Adjusted EBITDA Outlook
– Provides Details on Capital Allocation Plan
PR Newswire
LEXINGTON, Ky., Dec. 9, 2020 /PRNewswire/ — Tempur Sealy International, Inc. (TPX) (NYSE: TPX, “Tempur Sealy” or “Company”) today announced that fourth quarter product demand continues to be strong around the world. Management has an improved profitability outlook for the fourth quarter of 2020 compared to the same period last year, and now expects adjusted EBITDA growth of approximately 30% on low double-digit net sales growth. The improvement is driven by stronger than expected U.S. e-commerce and international sales, combined with favorable company-wide margins. The supply constraints that continue to impact the Company’s U.S. Sealy and Sherwood production have been greater than expected.
Tempur Sealy Chairman and CEO Scott Thompson stated, “Tempur Sealy’s global operating scale provides significant cost and sourcing advantages that have helped the team manage the robust sales environment and the industry’s challenged supply chain. Our well-established omni-channel marketing approach has served us well as our online direct-to-consumer Tempur-Pedic and Cocoon by Sealy businesses are experiencing triple-digit sales growth over the comparable prior-year quarter.”
Capital Allocation
The Company’s long-term capital allocation strategy focuses on four areas: repurchasing shares, debt management, investing in operations and accretive acquisitions. The Company today shared additional details on its plan.
The Company is:
- Targeting share repurchases of approximately $280 million for 2020, including approximately $100 million in share repurchases in the fourth quarter.
- Intending to redeem in the first quarter of 2021 $125 million of the $250 million outstanding on the Company’s Senior Notes due 2023, funded by lower cost long-term debt.
- Planning to invest an incremental $150 million over the next three years to support growth initiatives. The Company plans to expand its three existing foam facilities and open one new state-of-the-art foam facility in the U.S. This initiative is expected to increase U.S. pouring capacity for Tempur material and base foam by approximately 50%.
Thompson continued, “Our commitment to serving consumers wherever and however they want to shop with the highest quality products and service has fueled strong demand for our industry leading Tempur-Pedic and Sealy brands and our rapidly growing OEM business. We expect the industry, and specifically the Company’s business, to continue to expand. The new capacity will ensure that we can fully meet the consumer’s demand for our products across the multitude of channels we serve: wholesale, direct to consumer, and OEM.
https://seekingalpha.com/pr/18115526-tempur-sealy-provides-market-update
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