Replies to post #506 on Huntsman Corporation (HUN)

[eastunder]

UPDATE 3-Huntsman profit nearly triples on rising demand

Tue May 1, 2012 8:13am EDT

http://www.reuters.com/article/2012/05/01/huntsman-idUSL4E8G158R20120501?feedType=RSS&feedName=cyclicalConsumerGoodsSector&rpc=43

* Adj EPS 74 cents vs Street forecast 40 cents

* Revenue rose 9 percent to $2.91 bln; beats Street view

* CEO "optimistic about earnings potential"

* Shares rise nearly 9 percent in premarket trading

By Ernest Scheyder

May 1 (Reuters) - Huntsman Corp's quarterly profit beat Wall Street's expectations as the company benefited from higher prices for chemicals used in insulation and paint, and its stock rose nearly 9 percent in premarket trading.

The results show that demand is beginning to pick up in key markets Huntsman serves, including clothing, housing, construction and auto production.

"Notwithstanding certain economic challenges in various parts of the world, I am most optimistic about our earnings potential," Chief Executive Officer Peter Huntsman said in a statement on Tuesday.

The company posted first-quarter net income of $163 million, or 68 cents per share, compared with $62 million, or 26 cents per share, a year earlier.

Excluding a loss from discontinued operations and other one-time items, the company earned 74 cents per share.

By that measure, analysts had expected earnings of 40 cents per share, according to Thomson Reuters I/B/E/S.

Revenue rose 9 percent to $2.91 billion. Analysts, on average, had expected $2.81 billion.


POLYURETHANE STRENGTH

Revenue rose 17 percent to $1.22 billion in the company's biggest unit, polyurethanes, largely due to higher prices and demand for methylene diphenyl diisocyanate, also known as MDI.

MDI is commonly used in foam insulation.

Demand was also strong for titanium dioxide, a white paint pigment. Revenue in the company's pigments unit rose 16 percent to $424 million. DuPont rivals Huntsman in the titanium dioxide market.

Demand slipped slightly for Huntsman chemical dyes and specialty chemicals.

Huntsman shares rose 8.6 percent to $15.37 in premarket trading on Tuesday. As of Monday's $14.16 close, the stock had gained about 42 percent so far this year.

Former U.S. Republican presidential candidate Jon Huntsman Jr., son of the company's founder and brother of its chief executive, joined the board of directors in February.