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Huntsman Management Discusses Q2 2012 Results - Earnings Call Transcript

Stocks in this article: HUN

During this call, we may make statements about our projections or expectations for the future. All such statements are forward-looking statements, and while they reflect our current expectations, they involve risks and uncertainties and are not guarantees of future performance. You should review our filings with the Securities and Exchange Commission for more information regarding the factors that could cause actual results to differ materially from these projections or expectations. We do not plan on publicly updating or revising any forward-looking statements during the quarter.

In addition, we will also refer to non-GAAP financial measures, such as EBITDA, adjusted EBITDA and adjusted net income or loss. You can find reconciliations to the most directly comparable GAAP financial measures in our earnings release, which has been posted on our website at huntsman.com.

Let's turn to Slide 2. In our earnings release this morning, we reported second quarter 2012 revenue of $2,914,000,000, adjusted EBITDA of $365 million and adjusted earnings per share of $0.58 per diluted share. Our adjusted EBITDA was $365 million in the second quarter 2012 compared to $321 million in the prior year, an increase of 14%.

I will now turn the call over to Peter Huntsman, our President and CEO.

Peter R. Huntsman

Thank you, Kurt. Good morning, everyone. Thank you for joining us.

Let's turn to Slide #3. Adjusted EBITDA for our Polyurethanes division in the second quarter 2012 was $170 million, an improvement of $27 million compared to the prior year of $143 million of adjusted EBITDA. The increase in earnings was entirely attributed to improvements in our MDI urethanes volumes and margins. Sales volumes for our MDI products increased 12% compared to the prior year. We are encouraged by the strong growth in demand from our largest end markets: insulation, adhesives, coatings, elastomers and composite wood products, all of which grew at double-digit rates compared to the prior year. Despite economic concerns that dominate current headlines, sales volumes in Europe improved 15% compared to the prior year and 9% compared to the prior quarter. Most of this growth came in Northern Europe, where sales volumes for our MDI products improved 14%, whereas Southern Europe grew only 1% compared to the prior year.

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