MOSCOW (MRC) -- Chemicals maker Huntsman fourth-quarter profit narrowly beat Wall Street's expectations, helped by higher prices for chemicals used to make insulation and paint, said the company.
For the quarter, the company posted net income of USD105 million, or 44 cents per share, compared with USD30 million, or 12 cents per share, a year ago. Excluding items, Huntsman earned 28 cents a share.
By that measure, analysts expected earnings of 27 cents per share. "Looking forward, we anticipate that the corporation will see an improving global economy from this point forward," Chief Executive Peter Huntsman said in a statement. "Most of our businesses have strong upside potential as we see a continued recovery in the world's economy." Revenue rose 9% to USD2.63 billion. Analysts expected USD2.69 billion in revenue.
The jump in revenue was highest in the polyurethanes unit, which makes products for insulation markets, and the pigments unit, which makes titanium dioxide pigment for paint. Price hikes in both units also lifted results. DuPont is a large competitor in the titanium dioxide space.
Huntsman's textile effects unit saw sales fall 8% as customers bought fewer specialty clothing materials and due to the high value of the Swiss franc. The quarterly results are the first since Jon Huntsman Jr., the former U.S. presidential candidate, son of the company's founder and brother to the chief executive, joined the company's board of directors.
We remind, Huntsman Corporation announced that it has secured all regulatory approvals required to complete the sale of its textile effects division to Archroma, a portfolio company of SK Capital Partners, said the company.
Both parties expect the transaction to close 28 February. The agreed purchase price was $593m in cash plus assumed pension liabilities, and Huntsman expects the net after tax cash proceeds to be approximately $540m before customary post-closing adjustments.