Huntsman Updates Fourth Quarter 2023 Outlook; To Discuss Fourth Quarter 2023 Results on February 22, 2024; Results to be Released After Market Close on February 21, 2024

Rhea-AI Summary

Huntsman Corporation (NYSE: HUN) expects a lower adjusted EBITDA for Q4 2023, ranging from $40 million to $45 million, due to challenges in the Polyurethanes segment and an unplanned outage at the Rotterdam facility. The company will hold a conference call on February 22, 2024, to discuss the financial results.

Insights

Financial Analyst

The revised adjusted EBITDA forecast from Huntsman Corporation indicates a significant downward revision from their original guidance. This suggests a potential underperformance in the company's Polyurethanes segment, which could be a red flag for investors concerned with the company's operational stability and market demand for its products. The unplanned outage in the Rotterdam facility also points to possible vulnerabilities in the company's supply chain and operational risk management.

From a financial perspective, the impact on equity earnings and the subsequent effect on adjusted EBITDA could signal a revision of future earnings projections by analysts. This could influence the company's stock valuation and investor sentiment in the short-term. Long-term implications may include a reassessment of the company's risk profile and the effectiveness of its contingency planning for such operational disruptions.

Market Research Analyst

Considering the polyurethane market dynamics, Huntsman Corporation's performance issues in this segment could be indicative of broader market challenges or increased competition. Polyurethanes are used in various applications, including foams, coatings and adhesives and demand in these areas could be a bellwether for economic activity in sectors like construction, automotive and consumer goods.

External factors such as raw material price volatility, geopolitical tensions, or changes in consumer demand could be influencing this segment's performance. It is essential to compare Huntsman's performance with industry peers to assess whether these are company-specific issues or part of a wider industry trend. Understanding these factors could provide insights into potential market opportunities or threats that Huntsman and its competitors might face.

Risk Management Expert

The unplanned outage at Huntsman Corporation's Rotterdam facility highlights the importance of risk management in manufacturing operations. Such incidents can lead to significant financial repercussions, as evidenced by the company's adjusted EBITDA forecast. It raises questions about the company's preventive maintenance practices and disaster recovery planning.

An analysis of the company's risk management strategies and how they compare to industry norms could provide valuable insights into the company's operational resilience. Stakeholders would benefit from understanding the measures Huntsman is taking to mitigate similar risks in the future and whether these measures are sufficient to reassure investors of the company's commitment to operational excellence and reliability.

THE WOODLANDS, Texas, Jan. 19, 2024 /PRNewswire/ -- Huntsman Corporation (NYSE: HUN) now expects fourth quarter 2023 adjusted EBITDA to be in the range of $40 million to $45 million compared to our original guidance range of $65 million to $90 million as communicated on October 31, 2023. The lower range compared to prior guidance is primarily due to continued pressure in our Polyurethanes segment, including lower equity earnings and the negative impact of an unplanned outage during the quarter at the Rotterdam, Netherlands facility, which has now been resolved. These are preliminary results and are subject to completion of the corporation's annual audit process.

Huntsman Corporation will hold a conference call on Thursday, February 22, 2024, at 10:00 a.m. ET to discuss its fourth quarter 2023 financial results. Following some opening remarks, the call will move into a question and answer session.

The earnings press release, including financial statements and segment information, will be distributed after the market closes on Wednesday, February 21, 2024. The earnings slide presentation and prepared remarks will be available at www.huntsman.com/investors after the market closes on Wednesday, February 21, 2024.

Webcast link:
https://event.choruscall.com/mediaframe/webcast.html?webcastid=4YckWj4j

Participant dial-in numbers:
Domestic callers:	(877) 402-8037
International callers:	(201) 378-4913

The conference call will be accessible via the webcast link and Huntsman's investor relations website, www.huntsman.com/investors. Upon conclusion of the call, the webcast replay will be accessible via Huntsman's website.

About Huntsman:
Huntsman Corporation is a publicly traded global manufacturer and marketer of differentiated and specialty chemicals with 2022 revenues of approximately $8 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 60 manufacturing, R&D and operations facilities in approximately 30 countries and employ approximately 7,000 associates within our continuing operations. 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 is the adjusted EBITDA range expected by Huntsman Corporation for Q4 2023?

Huntsman Corporation expects the adjusted EBITDA for Q4 2023 to be in the range of $40 million to $45 million.

What are the reasons for the lower adjusted EBITDA compared to the original guidance?

The lower adjusted EBITDA is primarily due to challenges in the Polyurethanes segment and an unplanned outage at the Rotterdam facility.

When will Huntsman Corporation hold a conference call to discuss its Q4 2023 financial results?

Huntsman Corporation will hold a conference call on February 22, 2024, at 10:00 a.m. ET to discuss its Q4 2023 financial results.

Where can the earnings press release and related information be accessed?

The earnings press release, financial statements, and segment information will be available at www.huntsman.com/investors after the market closes on February 21, 2024.

How can participants access the conference call?

Participants can access the conference call via the webcast link and Huntsman's investor relations website, www.huntsman.com/investors.

What are the participant dial-in numbers for the conference call?

Domestic callers can dial (877) 402-8037, and international callers can dial (201) 378-4913 to participate in the conference call.