Woodlands, Texas - Huntsman estimates that during the third quarter (Q3) it incurred $49 million in costs and lost profit as a result of Hurricanes Gustav and Ike, the company said 23 Oct. The company added that excluding the Hurricane impact costs its expects adjusted earnings (EBITDA) for Q3 to be higher than Q2 2008.
"Despite the financial impact caused by the hurricanes in the third quarter, I am pleased that our associates are safe and that the damage was less than we might have otherwise expected given the storm's severity," said Peter Hutsman, president and ceo.
"Although the affected plants are insured for both physical damage and business interruption, our current estimated impact is within the insurance deductibles for each location, so an insurance claim is not anticipated. The impacted plants are now back up and running and we will continue to work with our customers as we return to normal operating levels."
Plants affected by the Hurricanes were those at Geismar (Louisiana), Chocolate Bayou (Texas), Port Neches (Texas), Freeport (Texas), Dayton (Texas), and Conroe (Texas).