Huntsman Announces Reduced Operating Rates at its Geismar, La. Facility

Rhea-AI Summary

Huntsman Corporation (NYSE: HUN) reported a partial outage at its MDI facility in Geismar, Louisiana, caused by mechanical failure at a third-party supplier. This outage is expected to last approximately 5 weeks and could affect the company's fourth quarter adjusted EBITDA by around $15 million. An update will be provided during the third quarter earnings conference call scheduled for October 29, 2020.

Positive

• Limited duration of outage (estimated at 5 weeks)

Negative

• Estimated $15 million impact on fourth quarter adjusted EBITDA

THE WOODLANDS, Texas, Oct. 15, 2020 /PRNewswire/ -- Huntsman Corporation (NYSE: HUN) announced today that due to a mechanical failure at a third-party raw material supplier, its Geismar, Louisiana MDI facility is experiencing a partial outage which is estimated to last approximately 5 weeks.  It is currently estimated that this will impact the Company's fourth quarter adjusted EBITDA by approximately $15 million.  The Company will provide an update on its third quarter earnings conference call on October 29, 2020.          

About Huntsman:
Huntsman Corporation is a publicly traded global manufacturer and marketer of differentiated and specialty chemicals with 2019 revenues of approximately $7 billion. Our chemical products number in the thousands and are sold worldwide to manufacturers serving a broad and diverse range of consumer and industrial end markets. We operate more than 70 manufacturing, R&D and operations facilities in approximately 30 countries and employ approximately 9,000 associates within our four distinct business divisions. For more information about Huntsman, please visit the company's website at www.huntsman.com.

Social Media:
Twitter: www.twitter.com/Huntsman_Corp
Facebook: www.facebook.com/huntsmancorp
LinkedIn: www.linkedin.com/company/huntsman

Forward-Looking Statements:
Certain information in this release constitutes forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. 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 under the caption "Risk Factors" in the Huntsman companies' filings with the U.S. Securities and Exchange Commission. Significant risks and uncertainties may relate to, but are not limited to, volatile global economic conditions, cyclical and volatile product markets, disruptions in production at manufacturing facilities, reorganization or restructuring of Huntsman's operations, including any delay of, or other negative developments affecting the ability to implement cost reductions, timing of proposed transactions, and manufacturing optimization improvements in Huntsman businesses and realize anticipated cost savings, and other financial, economic, competitive, environmental, political, legal, regulatory and technological factors. The company assumes no obligation to provide revisions to any forward-looking statements should circumstances change, except as otherwise required by applicable laws.

 

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SOURCE Huntsman Corporation

FAQ

What caused the outage at Huntsman's Geismar facility?

The outage at Huntsman's Geismar facility was caused by a mechanical failure at a third-party raw material supplier.

What is the estimated financial impact of the outage on Huntsman Corporation?

The outage is estimated to impact Huntsman's fourth quarter adjusted EBITDA by approximately $15 million.

How long will the outage at Huntsman's MDI facility last?

The outage at Huntsman's MDI facility is expected to last approximately 5 weeks.

When will Huntsman report on the effects of the outage?

Huntsman will provide an update during its third quarter earnings conference call on October 29, 2020.