THE WOODLANDS, Texas,
March 27, 2017 /PRNewswire/
-- Huntsman Corporation (NYSE: HUN) today announced that
positive trends during the first quarter 2017 are strengthening its
business. Based on current market conditions, we expect first
quarter 2017 adjusted EBITDA to exceed the $274 million of adjusted EBITDA during the same
quarter in 2016. Notably, we are seeing continued strength in
our MDI urethanes business, specifically in the Asia Pacific region. Within our Pigments
and Additives division, TiO2 price increases announced for
implementation January 1st
have taken effect. In addition we have been able to mitigate
a portion of the impact from the outage at our Pori, Finland facility through sales of undamaged
inventory such that we now expect the first quarter EBITDA impact
to be less than previously anticipated.
As previously announced, on January 30,
2017 we experienced a fire at our titanium dioxide facility
in Pori, Finland. Importantly there were no injuries.
The site has 130,000 metric tons of capacity, representing
approximately 15% of our titanium dioxide capacity and
approximately 2% of global demand. We are currently able to
produce a small amount of product at the facility, and expect to be
fully operational around year end 2018. We expect to restart
portions of the facility in phases according to the following
schedule.
- ~20% capacity within 2Q17
- ~40% capacity within 2Q18
- ~100% capacity around year end 2018
We are also working closely with our insurer to secure prompt
reimbursement for our losses – both on the property and on the
EBITDA side (for business interruption). We have already been
advanced €50 million. We are responsible for retained
deductibles of $15 million relating
to property damage, and 60 days relating to lost earnings (business
interruption) all within the first quarter 2017.
Peter R. Huntsman, President and
CEO commented:
"Results in the first quarter are looking stronger than they
were in the prior year. We remain focused on delivering more
than $350 million of free cash flow
in 2017 and growing our downstream businesses such as
differentiated MDI polyurethanes. We continue to work toward
the separation of our Pigments and Additives business (identified
now as Venator Materials Corporation) and are targeting the end of
the second quarter this year for it to take place."
As we prepare for the separation of Venator we will continue to
provide increased transparency to the business. A new
presentation is expected to be posted to the investor relations
portion of our website at ir.huntsman.com later this week.
About Huntsman:
Huntsman Corporation is a
publicly traded global manufacturer and marketer of differentiated
chemicals with 2016 revenues of approximately $10 billion. Our chemical products number
in the thousands and are sold worldwide to manufacturers serving a
broad and diverse range of consumer and industrial end markets. We
operate more than 100 manufacturing and R&D facilities in
approximately 30 countries and employ approximately 15,000
associates within our 5 distinct business divisions including the
Pigments and Additives division that we intend to spin-off as
Venator Materials Corporation. For more information about Huntsman,
please visit the company's website at
www.huntsman.com.
Social Media:
Twitter:
twitter.com/Huntsman_Corp
Facebook: www.facebook.com/huntsmancorp
LinkedIn:
www.linkedin.com/company/huntsman
Forward-Looking Statements:
Statements in
this release that are not historical are forward-looking
statements. These statements are based on management's current
beliefs and expectations. The forward-looking statements in this
release are subject to uncertainty and changes in circumstances and
involve risks and uncertainties that may affect the company's
operations, markets, products, services, prices and other factors
as discussed in the Huntsman companies' filings with the U.S.
Securities and Exchange Commission. Significant risks and
uncertainties may relate to, but are not limited to, volatile
global economic conditions, cyclical and volatile product markets,
disruptions in production at manufacturing facilities,
reorganization or restructuring of Huntsman's operations, including
any delay of, or other negative developments affecting, the
spin-off of Venator Materials Corporation, the ability to implement
cost reductions and manufacturing optimization improvements in
Huntsman businesses and realize anticipated cost savings, and other
financial, economic, competitive, environmental, political, legal,
regulatory and technological factors. The company assumes no
obligation to provide revisions to any forward-looking statements
should circumstances change, except as otherwise required by
applicable laws.
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SOURCE Huntsman Corporation