Huntsman 4Q profit drops 89 pct from year-ago results inflated by hefty gain, but revenue up

Huntsman 4Q profit tumbles, revenue rises

THE WOODLANDS, Tex. — Chemicals maker Huntsman Corp. reported on Friday a steep drop in its fourth-quarter profit versus year-ago results that were inflated by a hefty gain, but its revenue edged up.

Its adjusted earnings beat Wall Street estimates and its shares rose more than 7 percent.

CEO Peter R. Huntsman called the latest results “very encouraging” and added that the company looks forward to improving market conditions in 2010.

He said Huntsman eliminated more than $150 million of costs in 2009 and was able to maintain “consistent margins on a per unit basis throughout our business.”

Huntsman, based in The Woodlands, Tex., makes chemicals that are used in a variety of industries, such as plastics, autos, footwear, paints, construction, furniture and packaging.

It earned $66 million, or 26 cents per share, in the last three months of 2009, down 89 percent from $598 million, or $2.53 per share, a year earlier,

But the 2008 results included an $815 million gain that resulted from Hexion Specialty Chemicals Inc.’s cancellation of its deal to purchase Huntsman.

Excluding the gain and other one-time items, Huntsman earned 27 cents per share compared to a loss of 38 cents per share in the quarter a year earlier.

Revenue rose to $2.1 billion from $2.05 billion primarily due to higher sales volumes in its polyurethanes, textile, performance products and pigments segments.

Results exceeded the forecast of analysts, who were expecting Huntsman to lose 12 cents per share on revenue of $1.97 billion, according to a Thomson Reuters survey.

Its shares rose 89 cents, or 7.2 percent, to $13.26 in midday trading after briefly touching a 52-week high of $13.32.

For the year, the company earned $114 million, or 48 cents per share, compared with $609 million, or $2.60 per share. Revenue fell to $7.76 billion from $10.2 billion.