THE WOODLANDS, Texas—Huntsman Corp. saw significant increases in sales, according to its third-quarter financial results. The global chemicals company credits high demand in a recovering market for the gains.
Third quarter sales at Huntsman were up by 51 percent to $2.3 billion and drove adjusted EBITDA up by 97.3 percent to $371 million in the third quarter of 2021, up 51.3 percent on the same period last year.
"We are pleased with the strong earnings we delivered in the third quarter," said CEO Peter Huntsman. "Despite pockets of disruption in our supply chain and cost inflation, we see strong pent-up demand across most of our businesses with favorable pricing dynamics."
In the company's polyurethanes business, sales rose by 49.9 percent between the third quarter of 2020 and the third quarter of 2021. At $1.4 billion, this was up from $936 million in the equivalent period in 2020.
Adjusted EBITDA in the division rose 57.7 percent at $246 million in the third quarter of 2021. This compares with $156 million in the equivalent period in 2020.
MDI prices rose in all regions, and Huntsman said it sold more because of strong demand driven by recovery from coronavirus slowdowns, although this was partly offset by the impact of Hurricane Ida on the plant in Geismar, Louisiana. Higher prices fed through to higher earnings.
Huntsman also won an arbitration dispute with Albemarle Corp. Three judges found that Albemarle—and its predecessor Rockwood Holdings Inc.—had defrauded Huntsman in connection with the sale of its pigments business in 2014 and breached the contract under which it was sold. Huntsman won $600 million in damages and, after lawyers' fees, expects to net more than $400 million. Albemarle could appeal against the decision in a New York court.
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