Huntsman second quarter results: revenue down, acquisition on track
According to Huntsman’s second quarter report, the chemical manufacturer had revenues of $1,247 million, net loss of $59 million, adjusted net loss of $30 million and adjusted net income of $54 million.
The second quarter net loss of $59 million is compared to net income of $118 million in the same period last year; the reported loss per share of $0.28 is compared to diluted earnings per share of $0.47; and the adjusted net loss of $30 million is compared to adjusted net income of $108 million last year for the same period. The second quarter 2020 adjusted EBITDA of $54 million is compared to $245 million in the prior year period. Second quarter net cash from operating activities was $85 million and free cash flow from continuing operations was $30 million.
Huntsman said the balance sheet remains strong with a net leverage of 1.5x and total liquidity is approximately $2.6 billion. The company completed its acquisition of CVC Thermoset Specialties in May and the integration is said to be on track. Huntsman said it expects to “achieve the targeted annualised synergies of approximately $15 million by the end of 2021” which includes $35 million related to recent acquisitions and annualised savings of more than $100 million anticipated between now and the end of 2021.
"We were fortunate to have been more prepared than ever as we entered the second quarter in an unprecedented global economic crisis, with little to no visibility,” said Peter Huntsman, chairman, president and CEO.
“While the ongoing related global effects of covid-19 remain uncertain and visibility continues to be poor, we see improving trends within most of our major markets and are optimistic that the worst of this economic slowdown is behind us."