Organic and inorganic chemical products manufacturer Huntsman Corp. (HUN) on Friday reported a sharp decline in fourth quarter profit, reflecting the absence of a hefty one-time income present last year associated with a terminated merger and related litigation. However, on an adjusted basis, earnings were well above the Street view.
For the fourth quarter, net earnings attributable to shareholders were $66 million or $0.26 per share, compared with $598 million or $2.53 per share in the prior-year period.
Current quarter results included an income tax benefit of about $79 million, compared to expense of $148 million a year earlier. In the prior year quarter, the company recorded an income associated with the terminated merger with Hexion and related litigation of $815 million compared to nil in the 2009 period.
On an adjusted basis, net income was $70 million or $0.27 per share, compared to a loss of $91 million or $0.38 per share a year earlier.
On average, four analysts polled by Thomson Reuters expected Huntsman to report a loss of $0.12 per share for the quarter. Analysts' estimates typically exclude special items.
The Woodlands, Texas-based company's profit from continuing operations for the quarter plummeted to $69 million from $476 million in the previous-year period.
Revenues for the three-month period increased 2% to $2.10 billion from $2.05 billion in the fourth quarter last year, reflecting higher sales volumes in polyurethanes, textile effects, performance products and pigment segments, partially offset by lower average selling prices in polyurethanes, advanced materials and performance product divisions. Analysts expected the company to generate revenues of $1.97 billion for the quarter.
In the sequential third quarter, Huntsman reported an attributable loss of $68 million or $0.29 per share on revenues of $2.11 billion.
On a segmental basis, polyurethane revenues were $841 million versus $796 million in the previous year, and revenues from textile effects grew to $187 million from $169 million in the year-earlier quarter, and pigment revenues for the period were $248 million as compared with $186 million in the 2008-year period. However, revenues from performance products fell to $568 million from $606 million in the previous year, and advanced material revenues were $274 million versus $301 million a year ago.
Average selling price in performance products segment fell 19%, average selling price in polyurethanes business dropped 4%, and advanced materials average selling price slipped down 1%. Meanwhile, average selling price at textile effects for the period rose 2%.
During the three-month period, operating expenses rose to $277 million from $256 million in the same quarter last year, while restructuring, impairment and plant closing costs declined to $13 million from $28 million in the previous year fourth quarter.
The company noted that during the 2009 fourth quarter, volumes increased 13% from the prior year, but still fell short of normalized demand. Huntsman said it anticipates to see improved earnings as demand continues to improve.
For the full year 2009, the company's attributable income was $114 million or $0.48 per share, down from $609 million or $2.60 per share a year earlier. Adjusted loss for the period widened to $323 million or $1.38 per share from a loss of $57 million or $0.24 per share in fiscal 2008. The company's profit from continuing operations were $115 million versus $479 million in the comparable period prior year.
Full year revenues were down to $7.76 billion from $10.22 billion in the corresponding period last year.
Analysts expected the company report a loss of $1.18 per share on revenues of $7.67 billion for the year.
During the 2009-year period, Huntsman eliminated over $150 million of costs from its business and reduced working capital needs by approximately $500 million.
HUN is currently trading on the New York Stock Exchange at $12.94 per share, up $0.57 or 4.61%, on a volume of 709,126 shares. In the past 52-week period, the stock has been trading in a range of $2.03 to $12.81.
For comments and feedback contact: editorial@rttnews.com
June 05, 2026 16:18 ET A busy week for economic news flow saw a slew of reports being released that reflected the trends in the U.S. labor market. In Europe, economic growth and inflation data gained attention as the European Central Bank and Bank of England head for policy session later in the month. In Asia, the monetary policy session of the Indian central bank was in focus as the country, a major oil importer, reels under the pressures of a weaker rupee and rising inflation.