Huntsman Corp. (HUN) swung to a worse-than-expected first-quarter loss Friday but said global stimulus efforts would boost demand for its chemical products in the second half of the year.

The company said the slide in volume accelerated from the prior quarter, led by units in Europe and Asia that account for more than half of Huntsman's revenue.

Huntsman shares were recently down 9% at $5.34 after revenue in the three months ending March 31 fell by a third from a year earlier.

The company whose planned sale to Apollo Management LP collapsed last year is cutting costs and idling capacity in tandem with rivals as the global economic slowdown hits demand and pricing.

"Although average demand for the quarter was soft - in fact, it was softer than the fourth quarter - we did see positive order patterns within the first quarter and left the quarter with stronger demand than we entered," said President and Chief Executive Peter Huntsman in a statement. A conference call is slated for 11 a.m. EDT.

Its cost-cutting plan is also ahead of schedule, said the company, which has won waivers from lenders to restructure its debt.

The company reported a net loss of $290 million, or $1.24 a share, compared with prior-year earnings of $7 million, or 3 cents a share. Excluding items the loss would have been 55 cents.

Revenue fell 33% to $1.7 billion, led by a 40% decline in polyurethanes, its largest segment. Average volume and prices both fell 19% in the quarter.

Analysts polled by Thomson Reuters most recently were looking for a loss of 22 cents a share on revenue of $2.2 billion.

Gross margin slid to 8.6% from 14.4%.

Huntsman is seeking $3 billion in damages from Credit Suisse AG (CS) and Deutsche Bank AG (DB) following the collapse of the Apollo transaction. A Texas court has ordered mediation to start May 13, with a trial set for June.

-By Doug Cameron, Dow Jones Newswires; 312-750-4135; doug.cameron@dowjones.com

(Tess Stynes contributed to this article.)