The Woodlands, Texas - Huntsman Corp. has announced an increase of 17 percent in revenues for the second quarter (Q2) of 2008 of $2895.7 million as compared to $2471.2 million for the second quarter of 2007. Net income was $23.7 million compared to a net loss of $70.9 million for the same period in 2007.
Revenue from Huntsman's polyurethane segment increased to $1160.9 million in Q2 OF 2008 from $1010.2 million in Q2 of 2007. Within the polyurethanes segment the company reported that average MDI (methylene diphenyl diisocyanate) selling prices increased by 7 percent, primarily in Europe, thanks to price increase initiatives and the strength of foreign currencies against the US dollar. MDI sales volumes increased 1 percent as a result of growth in Europe, the Americas and certain developing regions of the world, partially offset by lower volumes in China.
The company said, "the decrease in EBITDA in the polyurethanes segment was primarily the result of higher raw material and energy costs," adding that in urethanes, higher MDI selling prices were more than offset by higher costs for all raw materials, as well as increased fixed manufacturing and selling, general and administrative costs due primarily to the strength of the Euro against the dollar.
Commenting on the controversial merger with Hexion, Huntsman said:
• On 18 June 2008, Hexion filed a lawsuit in Delaware seeking to avoid its obligations under the merger agreement. Huntsman strongly disagrees with allegations outlined in this lawsuit. A trial is scheduled to begin 8 September 2008 to adjudicate these allegations
• On 23 June 2008 Huntsman filed a lawsuit in Texas against Apollo and its principals Leon Black and Joshua Harris for fraud and tortious interference
• With the conditional approval of the European Commission, which was granted on 30 June 2008, all significant regulatory approvals relating to the merger other than FTC approval have now been received
• On 4 July 2008 Huntsman's board of directors voted unanimously to exercise its right to extend the merger agreement. The termination date under the new merger agreement is now 2 October 2008