Huntsman Corporation (HUN)

[MrBruce]

Huntsman Jumps After Saying First-Quarter Pigment Profit Rose

By Jack Kaskey - Apr 7, 2011 10:41 AM PT
Huntsman Corp. (HUN), the world’s third- biggest producer of titanium-dioxide pigment, gained in New York trading after the company said profit margins for the white paint ingredient widened in the first quarter.

Huntsman increased prices about $400 a ton in the quarter and each $100 gain adds $50 million to earnings before interest, tax, depreciation and amortization, Chief Executive Officer J. Kimo Esplin said today in a presentation on the company’s website. Rising raw-material costs will erode some of the margin expansion, he said.

“We’re going to still expand margins and we’re going to expand them at a pretty good rate,” Esplin said. “Just don’t forget the headwinds that we are all experiencing.”

Huntsman, which is run from offices in Salt Lake City and The Woodlands, Texas, rose as much as 7 percent and was 99 cents, or 5.6 percent, higher at $19.10 as of 1:18 p.m. in New York Stock Exchange composite trading.

The largest titanium dioxide maker is DuPont Co., followed by Cristal Global, Esplin said. The chemical adds opacity and whiteness in paints, plastics and paper.