Huntsman: textile margins may offset pigment decline
Huntsman says improved margins from polyurethane foam,
textile dyes and other chemicals may make up for declining earnings from white
pigment titanium dioxide during the second half of the year.
Profit from titanium dioxide, known by its chemical
formula, TiO2, will drop by about $350 a ton in the current quarter from the
prior three months because of higher ore costs and lower pigment prices, chief
executive officer Peter Huntsman said.
The company plans to cut costs by $350 million with a
focus on the textile effects unit, the world’s biggest maker of textile dyes,
which should return to profitability next year.
According to Mr Huntsman, second-quarter net income rose
8.8% to $124 million from $114 million a year earlier. Profit in the
polyurethane unit, which supplies makers of insulation, adhesives, coatings and
composite wood, climbed 19%. Pigment earnings rose 16% as higher prices more
than made up for lower sales volumes.
