Huntsman Warns on Q3
THE WOODLANDS, Texas, Sept. 25, 2015 /PRNewswire/ — Huntsman Corporation (NYSE: HUN) identified certain trends which are expected to impact its third quarter earnings.
- Lower titanium dioxide selling prices, particularly in North America
- Continued year-on-year foreign currency headwind
- Soft demand in the Asia Pacific region
- Lower MTBE margins as a result of lower oil prices
- Lower MDI urethane component product margins in the Asia Pacific region
- Delayed lower raw material benefits
- Paid down $198 million of debt in September, expected annual savings more than $15 million
Peter R. Huntsman, President and CEO, commented:
"Although we are seeing headwinds within the business during the third quarter, we are optimistic about the future. Lower raw material prices impacted demand and margins in the third quarter, thus the accounting benefits will be delayed into the fourth quarter. Based on current market conditions, we expect our fourth quarter adjusted EBITDA to look similar to the third quarter – notwithstanding normal seasonality – and expect that it will also be in the range of prior year results of $300 million. In 2016 we expect that cash flow will improve approximately $300 million with further improvements projected in 2017. We remain committed to a separation of the Pigments and Additives business by the end of 2016 or sooner."