The Woodlands, Texas - Huntsman Corp more than doubled its second-quarter net income and posted an improved result in its polyurethanes business.
The Texas-based company reported a net income of $262.9 million for the second quarter of 2006, compared to $112.7 million during the same period last year, and revenues of $3343.9 million.
Huntsman's polyurethanes division recorded a 3.4 percent increase in quarterly revenues of $925.1 million and earnings before interest, tax, depreciation and amortisation (EBITDA) of $180.5 million for the quarter, a 16 percent rise from last year.
Hunstman put the positive polyurethanes result to higher methylene diphenyl diisocyanate (MDI) sales volumes.
''MDI sales volumes increased 11 percent as a result of strong demand in insulation related construction applications, whereas MDI average selling prices decreased 9 percent... due to pricing pressures in Asia, the strengthening of the US dollar against the relevant European currencies and the expectation of new industry capacity,'' the company said in a statement.
''The increase in EBITDA in the polyurethanes segment was primarily the result of lower losses from our discontinued TDI (toluene diisocyanate) operations of $40.1 million and a gain of $8.8 million in the 2006 period related to an insurance recovery.
''This was partially offset by lower margins resulting from higher raw material and energy costs.''
Hunstman president and chief executive Peter Huntsman said the company was in the final stage of commissioning its MDI joint venture in China.
''This world-scale state-of-the-art facility strengthens our ability to competitively supply our customers in the critical Chinese market with products manufactured locally and will support the double-digit demand growth that we believe this region will continue to experience," he said.
''The successful sale of certain of our US butadiene and associated MTBE (methyl tertiary butyl ether) business, and the acquisition of Ciba's Textile Effects division are significant steps in our ongoing corporate strategy to realign an increasingly differentiated portfolio.''
Peter Huntsman said the company was experiencing strong demand for its products and remained upbeat about its prospects, despite rising commodity prices.
''As we look to the second half of 2006, we remain concerned about high and volatile raw material and energy costs and the potential impact that these high prices will have on global macroeconomic conditions, but have a growing confidence that our business today is becoming less dependent on commodity-based raw materials,'' he said.
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