Huntsman Corporation (HUN)

[mlkrborn]

HUN: $13.77 now! Huntsman 2Q earnings flat, shares tumble
Shares of Huntsman drop after reporting flat profit; rising revenue offset by higher costs
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HUN 13.77 -4.22

On Thursday August 4, 2011, 1:13 pm

NEW YORK (AP) -- Shares of Huntsman Corp. plunged Thursday after the chemical company reported no growth in its second-quarter profit as sharply higher revenue was offset by rising costs.

Some analysts fear that Huntsman will continue to be tripped up by higher costs, especially if manufacturing activity slows further. Huntsman and its peers are heavily dependent on the health of the nation's manufacturing base and consumer confidence because they make chemicals that so many people use every day.

Huntsman makes chemicals used in items ranging from paint to cosmetics and clothing.

The Woodlands, Texas company reported net income of $114 million, or 47 cents per share, in the quarter ended June 30, the same as a year earlier.

Revenue rose 25 percent to $2.93 billion from $2.34 billion a year ago. The bulk of that increase was due to higher prices.

But higher expenses offset the gain. Total costs rose 24 percent to $2.43 billion.

Analysts polled by FactSet expected higher earnings of 49 cents per share on revenue of $2.78 billion.

Shares lost $4.24, or 23.6 percent, to $13.75 in afternoon trading. The stock has traded between $8.47 and $21.52 in the past year.

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