The Urethane Blog
June 22, 2020
June 22, 2020Huntsman Updates its Second Quarter Outlook; To Discuss Second Quarter 2020Results on July 28, 2020THE WOODLANDS, Texas, June 22, 2020 /PRNewswire/ —
Huntsman Corporation (NYSE:HUN) today reaffirmed its overall general outlook for the second quarter 2020 and announced that overall sales for the quarter are expected to be down between approximately 30 to 35 percent versus last year. Huntsman noted that the sales trendsshowed improvement from April to May, and it expects to see this continued improvement through June.
Results in its Polyurethanes division are expected to be modestly better than expected as trends in China and in U.S. construction, including spray foam, are better than originally anticipated.
The better-than-expected results in Polyurethanes are being mostly offset by weaker-than-anticipated results in Huntsman’s Textiles Effects division due largely to the prolonged impact of mandated shutdowns in key textile manufacturing regions, and the expected recovery in the industry may not begin until the third quarter due to the continued lockdowns. Huntsman anticipates that adjusted EBITDA in its Textiles Effects division will likely be slightly negative for the second quarter. Huntsman expects that results in the Performance Products division will be in-line with the prior outlook, but the results in the Advanced Materials division may fall a little short of expectations as a result of a deeper trough in Aerospace, Europe, and India than anticipated at the time of its last quarterly earnings call.
Huntsman Corporation will hold a conference call on Tuesday, July 28, 2020, at 10:00 a.m.ET to discuss its second quarter 2020 financial results, which will be released at approximately 6:00 a.m. ET that day.
June 22, 2020
June 22, 2020Huntsman Updates its Second Quarter Outlook; To Discuss Second Quarter 2020Results on July 28, 2020THE WOODLANDS, Texas, June 22, 2020 /PRNewswire/ —
Huntsman Corporation (NYSE:HUN) today reaffirmed its overall general outlook for the second quarter 2020 and announced that overall sales for the quarter are expected to be down between approximately 30 to 35 percent versus last year. Huntsman noted that the sales trendsshowed improvement from April to May, and it expects to see this continued improvement through June.
Results in its Polyurethanes division are expected to be modestly better than expected as trends in China and in U.S. construction, including spray foam, are better than originally anticipated.
The better-than-expected results in Polyurethanes are being mostly offset by weaker-than-anticipated results in Huntsman’s Textiles Effects division due largely to the prolonged impact of mandated shutdowns in key textile manufacturing regions, and the expected recovery in the industry may not begin until the third quarter due to the continued lockdowns. Huntsman anticipates that adjusted EBITDA in its Textiles Effects division will likely be slightly negative for the second quarter. Huntsman expects that results in the Performance Products division will be in-line with the prior outlook, but the results in the Advanced Materials division may fall a little short of expectations as a result of a deeper trough in Aerospace, Europe, and India than anticipated at the time of its last quarterly earnings call.
Huntsman Corporation will hold a conference call on Tuesday, July 28, 2020, at 10:00 a.m.ET to discuss its second quarter 2020 financial results, which will be released at approximately 6:00 a.m. ET that day.
June 22, 2020
Total to Solvay Pursue Chemical Divestments as M&A Returns
Myriam Balezou, Andrew Noël and Dinesh Nair, Bloomberg News
A logo sits on the exterior of the Total SA skyscraper headquarters in the La Defense business district in Paris, France, on Wednesday, Jan. 22, 2020. French Finance Minister Bruno Le Maire said he’s hopeful for a compromise with the U.S. on digital tax to avoid a transatlantic trade war. Photographer: Anita Pouchard Serra/Bloomberg , Bloomberg
(Bloomberg) — European companies from Total SA to Solvay SA are pursuing divestments of chemical businesses, in one of the first tentative signs that mergers and acquisitions are starting to return in the region.
Total is considering a sale of its Cray Valley chemical-additives unit, which could fetch about $300 million to $500 million, according to people with knowledge of the matter. The French energy company has been speaking with potential advisers about a divestment, the people said, asking not to be identified because the information is private.
Arkema SA has separately started gauging interest in its plexiglass business, which could fetch about 1 billion euros ($1.1 billion) for the French chemical producer, people familiar with the matter said. The company has sent potential bidders so-called teaser documents with an overview of the Altuglas International division, according to the people.
Companies have been seeking to offload peripheral businesses in a bid to boost returns and fend off criticism from activist investors. Carveouts by European companies hit a record last year and could rise further in 2020 as firms seek to weather the after-effects of the coronavirus pandemic, a top Credit Suisse Group AG dealmaker said last week.
Streamlining Operations
Some chemical producers have been able to ride through the crisis relatively unscathed, particularly those making products like cleaning solvents and protective sheets which are seeing increased sales. A gauge of European chemical companies has risen 1.8% over the past 12 months, bucking the 5.4% decline in the Stoxx Europe 600 Index.
Solvay SA is also exploring a sale of two units as Chief Executive Officer Ilham Kadri pushes ahead with efforts to streamline the Belgian chemical maker, people with knowledge of the matter said. The potential divestments include a unit that works with the compound strontium carbonate, which could fetch around 150 million euros, and another making chemicals used in shampoo and dishwashing products, the people said.
The volume of dealmaking globally has fallen 47% this year to $991 billion, according to data compiled by Bloomberg. Some shelved deal processes have been revived in recent weeks, with Bridgepoint preparing to restart a bidding process for Iberian agrochemical business Rovensa, Bloomberg News reported this month.
Sasol Sale
Arkema’s Altuglas sale is attracting initial interest from private equity firms including Advent International, Rhone, SK Capital Partners and Triton Partners, the people said. The business produces polymethyl methacrylate-based plastics, which are used in car parts like headlights as well as building materials. Colombes, France-based Arkema hasn’t decided when to seek first-round bids and could wait until after summer to formally solicit offers, one of the people said.
Beyond Europe, Sasol Ltd. is attracting interest in a large stake it’s selling in the Lake Charles chemical complex in the U.S. The South African company has received offers from Ineos Group Ltd., Chevron Phillips Chemical Co. and LyondellBasell Industries NV for the holding, which could fetch more than $2 billion, people familiar with the matter said earlier this month.
All the companies’ deliberations are at an early stage, and there’s no certainty the suitors will submit bids, the people said.
Representatives for Total, Arkema, Advent, Rhone, SK and Triton declined to comment. A spokesman for Solvay said the chemical group has a clear plan to unlock value and regularly receives approaches, particularly after last year’s strategy update. He declined to comment further. A spokesman for Sasol said the firm’s asset disposal process had yielded “good interest from strong contenders.”
June 22, 2020
Total to Solvay Pursue Chemical Divestments as M&A Returns
Myriam Balezou, Andrew Noël and Dinesh Nair, Bloomberg News
A logo sits on the exterior of the Total SA skyscraper headquarters in the La Defense business district in Paris, France, on Wednesday, Jan. 22, 2020. French Finance Minister Bruno Le Maire said he’s hopeful for a compromise with the U.S. on digital tax to avoid a transatlantic trade war. Photographer: Anita Pouchard Serra/Bloomberg , Bloomberg
(Bloomberg) — European companies from Total SA to Solvay SA are pursuing divestments of chemical businesses, in one of the first tentative signs that mergers and acquisitions are starting to return in the region.
Total is considering a sale of its Cray Valley chemical-additives unit, which could fetch about $300 million to $500 million, according to people with knowledge of the matter. The French energy company has been speaking with potential advisers about a divestment, the people said, asking not to be identified because the information is private.
Arkema SA has separately started gauging interest in its plexiglass business, which could fetch about 1 billion euros ($1.1 billion) for the French chemical producer, people familiar with the matter said. The company has sent potential bidders so-called teaser documents with an overview of the Altuglas International division, according to the people.
Companies have been seeking to offload peripheral businesses in a bid to boost returns and fend off criticism from activist investors. Carveouts by European companies hit a record last year and could rise further in 2020 as firms seek to weather the after-effects of the coronavirus pandemic, a top Credit Suisse Group AG dealmaker said last week.
Streamlining Operations
Some chemical producers have been able to ride through the crisis relatively unscathed, particularly those making products like cleaning solvents and protective sheets which are seeing increased sales. A gauge of European chemical companies has risen 1.8% over the past 12 months, bucking the 5.4% decline in the Stoxx Europe 600 Index.
Solvay SA is also exploring a sale of two units as Chief Executive Officer Ilham Kadri pushes ahead with efforts to streamline the Belgian chemical maker, people with knowledge of the matter said. The potential divestments include a unit that works with the compound strontium carbonate, which could fetch around 150 million euros, and another making chemicals used in shampoo and dishwashing products, the people said.
The volume of dealmaking globally has fallen 47% this year to $991 billion, according to data compiled by Bloomberg. Some shelved deal processes have been revived in recent weeks, with Bridgepoint preparing to restart a bidding process for Iberian agrochemical business Rovensa, Bloomberg News reported this month.
Sasol Sale
Arkema’s Altuglas sale is attracting initial interest from private equity firms including Advent International, Rhone, SK Capital Partners and Triton Partners, the people said. The business produces polymethyl methacrylate-based plastics, which are used in car parts like headlights as well as building materials. Colombes, France-based Arkema hasn’t decided when to seek first-round bids and could wait until after summer to formally solicit offers, one of the people said.
Beyond Europe, Sasol Ltd. is attracting interest in a large stake it’s selling in the Lake Charles chemical complex in the U.S. The South African company has received offers from Ineos Group Ltd., Chevron Phillips Chemical Co. and LyondellBasell Industries NV for the holding, which could fetch more than $2 billion, people familiar with the matter said earlier this month.
All the companies’ deliberations are at an early stage, and there’s no certainty the suitors will submit bids, the people said.
Representatives for Total, Arkema, Advent, Rhone, SK and Triton declined to comment. A spokesman for Solvay said the chemical group has a clear plan to unlock value and regularly receives approaches, particularly after last year’s strategy update. He declined to comment further. A spokesman for Sasol said the firm’s asset disposal process had yielded “good interest from strong contenders.”
June 19, 2020
National Survey Findings Confirm Consumers Are More Likely to Buy a Mattress Containing CertiPUR-US®-Certified Foam
According to benchmark research conducted through an independent, nationally recognized SurveyGizmo consumer panel for the CertiPUR-US® program, 9 out of 10 recent or upcoming mattress buyers were more likely to purchase a mattress that contains CertiPUR-US®-certified flexible polyurethane foam.
More than 90 percent said they were willing to pay more to ensure the foam was certified. Forty-six percent said they were willing to pay $50 or more; 30 percent would pay more than $75 extra.
The online survey respondents, randomly selected from a SurveyGizmo consumer panel, were limited to those who had purchased a mattress within the past 12 months or were planning to in the next 12 months. Among the survey’s goals were to gauge buyers’ receptivity to the concept of certified foam for those not aware of it and discover their propensity to purchase a mattress containing certified foam.
Other findings include:
Factors preventing a good night’s sleep. An uncomfortable mattress was the second most cited answer when respondents were asked what was the biggest factor on nights when they had trouble sleeping. Temperature—being too hot or too cold—was the No. 1 reason. Aches and pains, general life stress and screen time also ranked high. Only 4 percent said they usually didn’t have trouble sleeping.
Mattresses matter. Nearly all respondents (99 percent) said the quality of their mattress was important to getting a good night’s sleep, with 84 percent of those saying it was very important.
Materials used in mattresses matter, too. When asked to rank what mattered most when deciding to purchase a mattress, not surprisingly, comfort was the top answer (1), followed by price (2). “Materials the mattress is made of” ranked third (3), followed by warranty (4), brand name (5), appearance of mattress (6), customer/user reviews (7), made without chemicals of concern (8), return policy (9) and delivery speed (10).
Buyers are becoming savvy. More than half of recent and future mattress buyers (55 percent) considered themselves very knowledgeable or knowledgeable about mattress materials. Forty-five percent admitted they were not knowledgeable.
Where buyers learn. The top three places, in order, cited by respondents about where they learn about mattress materials were: manufacturer or retailer websites; health/consumer/home websites; and tied for third, information on mattresses/labels at point of purchase and past experience.
Where buyers purchase. For those respondents who had purchased a mattress online in the past year, top answers were department store website (31 percent), site that sells only mattresses (22 percent), and Amazon (19 percent). For those purchasing in store, top answers were mattress specialty store (43 percent), department store (21 percent), furniture store (15 percent) and big box store (15 percent).
Consumers rely on knowledgeable salespersons. Ninety-five percent of respondents agree it was important or very important for the salesperson they were working with to be knowledgeable about the foam in the mattress.
Satisfaction is high. Nearly all (96 percent) of the recent mattress buyers surveyed said they were very satisfied or satisfied with their mattress.
CertiPUR-US name recognition is significant. More respondents (41 percent) said they were aware of CertiPUR-US certification, far outpacing other certification program options presented. By comparison, GreenGuard was ranked at 26 percent, Green Bear 10 percent, and Oeko Tex
6 percent.
Mattress shoppers value certified foam. At the conclusion of the survey and after reading a short description about the CertiPUR-US program, mattress shoppers’ receptivity about foam certification increased significantly, with 88 percent saying it would be important or very important to purchase a mattress containing CertiPUR-US certified foam. More than 90 percent said they were willing to pay more to ensure the foam was certified. Forty-six percent said they were willing to pay $50 or more; 30 percent would pay more than $75 extra for a mattress containing certified foam.
“It’s clear that consumers feel that a quality mattress is key to a good night’s sleep, but this survey also shows they value certified foam—and are willing to pay more for it,” says Michael Crowell, executive director of the nonprofit CertiPUR-US® program.
CertiPUR-US is a certification program for flexible polyurethane foam used in bedding and upholstered furniture that is administered by a nonprofit organization. Certified foams meet CertiPUR-US standards for content, emissions and durability, and are analyzed by independent, accredited laboratories.
Download the consumer survey report, including charts of data, at www.certipur.us/survey
www.certipur.us
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