The Woodlands, Texas - Huntsman has posted revenues of $600 million in its Polyurethanes business in the first quarter of 2009 (Q1), down from $1002 million for the same period in 2008.
Earnings (EBITDA) in polyurethanes were also down from $132 million to $26 million for Q1 2009, Huntsman said in an 8 May company statement. The company said lower MDI (methylene diphenyl diisocyanate) sales volumes and lower overall average selling prices due to lower demand in all regions were the primary reasons for the drop in revenue.
Overall, Huntsman said, revenues for the company were down by 33 percent in Q1, from $2540 million the previous year to $1693 million. The group has $1115 million of unused cash available and borrowing capacity to help see the company through the current tough economic climate, Huntsman said.
The company reported that, although demand had been down, it did see positive order patterns and finished the quarter with more demand than it started with. "We are ahead of target and schedule to eliminate in excess of $150 million from our cost structure," said Peter Huntsman, adding, "with our strong liquidity and lower cost structure we are well positioned for the current recession and to prosper as we see a return to normal market conditions."
Huntsman intends to reduce full-time employment at the company by nearly 10 percent, around 1250 staff positions, as part of its attempts to cut costs across all divisions, as well as pursuing its multi-billion dollar court case against Credit Suisse and Deutsche Bank for "fraud and tortious interference" claims concerning funding arrangements in the dispute against Apollo Management. The case relates to the failed Huntsman merger with Hexion Specialty Chemicals, and was settled in December 2008 when Apollo agreed to pay $1000 million to Huntsman, following a number of Huntsman court case victories. (RD)