Huntsman Corp. recently reported second quarter 2019 results with revenues of almost $2.2 billion, a decrease of 9% from $2.4 billion in the 2018 second quarter. The 9% decrease in revenues in the Polyurethanes segment for the 2019 second quarter, to almost $1.2 billion, was reportedly due to lower average MDI and MTBE selling prices, partially offset by higher MDI and MTBE sales volumes. MDI average selling prices decreased primarily due to a decline in component MDI selling prices in China and Europe. MTBE average selling prices decreased in China primarily as a result of lower pricing for high-octane gasoline. MDI sales volumes increased primarily due to the start-up of a new Chinese MDI facility in 2018 and the acquisition of Demilec in the second quarter of 2018.
In the Performance Products segment, revenues fell 9% to $537 million in the second quarter of 2019, reportedly due to lower average selling prices, partially offset by slightly higher sales volumes. Average selling prices decreased in the derivatives business, primarily due to lower raw material costs, and in the upstream intermediates business, primarily due to lower feedstock costs and weakened market conditions. The increase in sales volumes was primarily due to the impact of the planned maintenance outage at Huntsman’s Port Neches, Texas, facility in the second quarter of 2018.
The 6% decrease in revenues in the Advanced Materials segment, to $275 million, was reportedly due to lower sales volumes and lower average selling prices. Sales volumes decreased primarily due to lower sales volumes in power- and automotive-related markets, partially offset by favorable product mix effect from sales volumes in the aerospace components market. Average selling prices decreased primarily due to the impact of a stronger U.S. dollar against major international currencies, partially offset by higher local currency selling prices.
“We are pleased with the relative resilience of the margins in our core downstream portfolio,” said Peter R. Huntsman, chairman, president, and CEO. “In spite of challenging economic conditions, we generated $240 million of free cash flow in the quarter and reaffirm our stated objective of generating 40% free cash flow to adjusted EBITDA. Regardless of second half economic uncertainties, we will continue to control our costs, protect our margins and focus on maintaining a strong balance sheet and cash generation. We will continue to follow a balanced approach to capital allocation between maintaining a competitive dividend, ongoing share repurchases and strategic organic and inorganic growth in our downstream portfolio.”
Additional details are available at www.huntsman.com.