Peter Huntsman Discusses Current Chemical Industry Trends
Tuesday May 24, 2:50 pm ET
Comments Made at MatlinPatterson Limited Partners Annual Meeting
NEW YORK, May 24 /PRNewswire-FirstCall/ -- Peter R. Huntsman, President and CEO of Huntsman Corporation, said today that lower energy and raw material costs could have a positive impact on profit margins for many of Huntsman's differentiated products.
In remarks delivered at the MatlinPatterson 2005 Limited Partners Annual Meeting, Huntsman said, "Recent declines in the selling prices of a select number of commodity products, including propylene and ethylene and their derivatives, have been well publicized. This is especially true of ethylene glycol and polyethylene."
"However," he continued, "We also have seen lower energy and raw material costs over the course of the past several weeks. If these declines continue we would expect to see meaningful opportunities to expand profit margins in many of our differentiated products."
Mr. Huntsman noted that Huntsman's differentiated segments, which include the Polyurethanes, Advanced Materials and Performance Products businesses, contributed over 50% of the Company's Adjusted EBITDA for the three months ended March 31, 2005.
Mr. Huntsman also reiterated the directional guidance provided during the Company's first quarter earnings release call. "We expect adjusted EBITDA for the second quarter of 2005 to be only slightly lower than the record levels achieved in the first quarter," he said.
Huntsman is a global manufacturer and marketer of commodity and differentiated chemicals. Its operating companies manufacture products for a variety of global industries including chemicals, plastics, automotive, aviation, footwear, paints and coatings, construction, technology, agriculture, health care, textiles, detergent, personal care, furniture, appliances and packaging. Originally known for pioneering innovations in packaging, and later, rapid and integrated growth in petrochemicals, Huntsman today has revenues of $11.5 billion, 11,300 employees and 62 operations in 22 countries.
For a definition of Adjusted EBITDA, please see the Company's earnings release for the first quarter of 2005.
Statements in this release that are not historical are forward-looking statements. These statements are based on management's current beliefs and expectations. The forward-looking statements in this release are subject to uncertainty and changes in circumstances and involve risks and uncertainties that may affect the company's operations, markets, products, services, prices and other factors as discussed in the Huntsman companies' filings with the Securities and Exchange Commission. Significant risks and uncertainties may relate to, but are not limited to, financial, economic, competitive, environmental, political, legal, regulatory and technological factors. Accordingly, there can be no assurance that the company's expectations will be realized. The company assumes no obligation to provide revisions to any forward-looking statements should circumstances change, except as otherwise required by securities and other applicable laws.
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