SALT LAKE CITY(Aug. 10)—Huntsman Corp. reported double-digit increases in sales and earnings in the second quarter in part because of big improvements in its polyurethanes business unit.
The PU business—primarily based on methylene diphenyl diisocyanate—reported a 27-percent jump in sales to $908.7 million, while the adjusted earnings before income taxes, depreciation and amortization jumped two thirds to $198.2 million.
The average selling prices of MDI increased 42 percent during the period as a result of the combination of strong growth in higher-value applications, continued strong supply/demand fundamentals, the strength of major European currencies vs. the dollar, and the response to higher raw material and energy costs, the firm said.
MDI sales volumes, however, were down 2 percent in the second quarter from the same period last year, primarily due to planned maintenance outages in the 2005 period. Propylene oxide and co-product methyl-tert-butyl ether average selling prices were also higher, the firm added.
Huntsman´s corporate sales rose 21.3 percent to $3.34 billion, with adjusted EBITDA at $429.9 million, up 49 percent on the same period of 2004, representing 12.9 percent of sales.