Huntsman Reports Fourth Quarter Earnings

The chemical manufacturer announced a decrease in revenue due to lower sales volumes.
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On February 26, 2009,

Huntsman Corporation

(HUN) - Get Report

reported that its Q4 FY08 earnings increased several times over, driven by gains from compensation received on its aborted merger deal with Hexion Specialty Chemicals Inc. Net income surged to $598.00 million or $2.53 per share from $2.00 million or $0.01 per share in the prior year's quarter. Excluding special items, the company reported a net loss of $91.00 million or $0.38 per share. The most recent consensus estimate was a loss of $0.05 per share.

Total revenue decreased 18.2% to $2.05 billion from $2.50 billion a year ago, due to lower sales volumes across segments. Revenue from Polyurethanes decreased 19.5% to $796.00 million from $989.00 million due to lower sales volumes and lower average selling prices. Revenue from Materials and Effects slipped 23.3% to $470.00 million from $613.00 million, attributed to a 24.0% decline in sales volumes. Moreover, revenue from Performance Products dipped 2.1% to 606.00 million from $619.00 million due to 21.0% decrease in sales volumes, partially offset by a 22.0% increase in average selling prices and higher tolling revenue. Finally, revenue from Pigments slumped 32.1% to $186.00 million from $274.00 million on a year-over-year basis.

Recently, Huntsman Corp. declared a cash dividend of $0.10 per share, payable on March 31, 2009. Also, it partnered with Zavod Sintanolov to share know-how, expertise and resources to develop the Russian market for surfactants. Furthermore, the company suspended work on design and feasibility studies for its planned investment in a new methylene diphenyl diisocyanate (MDI) plant at its site in Rozenburg, the Netherlands.

For FY08, revenue increased 5.8% to $10.22 billion from $9.65 billion a year ago. Moreover, the company reported net profit of $609.00 million or $2.60 per share from a loss of $172.00 million or $0.74 per share in FY07.