Huntsman Corporation’s HUN third-quarter 2024 adjusted earnings per share fell to 10 cents from 15 cents in the year-ago quarter. The bottom line beat the Zacks Consensus Estimate of 9 cents.

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Revenues were $1,540 million, up around 2.2% year over year. The top line missed the Zacks Consensus Estimate of $1,550.7 million.

HUN’s Segment Highlights

Polyurethanes: Revenues from the segment rose 4% year over year to $1,003 million. It beat our estimate of $908.5 million. The revenue increase was primarily due to increasing sales volumes, which were partly offset by reduced MDI average selling prices. Sales volumes increased predominantly owing to increased demand and market share gains in specific markets. 

MDI average selling prices fell mainly due to weaker supply and demand dynamics. The decline in segment adjusted EBITDA was largely caused by lower MDI average selling prices and reduced equity earnings from HUN’s minority-owned joint venture in China, which were partially offset by lower fixed costs and higher sales volumes.

Performance Products: Revenues moved up 1% to $280 million. It lagged our estimate of $308.2 million. The increase was primarily driven by rising sales volumes, which were partly offset by reduced average selling prices. Sales volumes rose primarily owing to increased demand in the fuels and lubricants, coatings and adhesives markets. The primary reason for the fall in average selling prices was competitive pressure. The drop in segment adjusted EBITDA was mainly caused by lower average selling prices and an unfavorable sales mix, which were slightly offset by increased sales volumes and lower fixed costs.

Advanced Materials: Revenues from the unit declined 3% to $261 million. It fell short of our estimate of $335.3 million. The decline was mostly due to decreased average selling prices, which were slightly compensated by higher sales volumes. Average selling prices fell essentially due to an unfavorable sales mix. Sales volumes increased in the aerospace and coatings markets as markets recovered, which was, however, slightly offset by weaker demand in the industrial market. The decline in segment adjusted EBITDA was mainly due by higher fixed costs.

HUN’s Financials

Free cash flow from continuing operations was $93 million compared with $117 million in the prior-year quarter. The company had approximately $1.7 billion in combined cash and unused borrowing capacity as of Sept. 30, 2024.

The company spent $41 million on capital expenditures from continuing operations compared with $50 million in the prior-year quarter. 

The net cash generated by operating activities from continuing operations was $134 million.

HUN’s Outlook

In 2024, Huntsman expects capital expenditures to be between $180 million and $190 million. The adjusted effective tax rate is expected to be between 30% and 34%. The company expects its long-term adjusted effective tax rate to be between 22% and 24%.

HUN Stock’s Price Performance

Shares of Huntsman have lost 12.5% in the past year against the industry’s 10.6% rise.

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HUN's Zacks Rank & Other Chemicals Releases

HUN currently carries a Zacks Rank #4 (Sell).

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

DuPont de Nemours, Inc. DD reported adjusted earnings of $1.18 per share in the third quarter, which topped the Zacks Consensus Estimate of $1.04. DD raised its full-year 2024 projections for operating EBITDA and adjusted earnings per share. 

The Chemours Company CC recorded adjusted earnings of 40 cents per share for the third quarter, which topped the Zacks Consensus Estimate of 32 cents. CC expects consolidated net sales to decline in the mid to high-single digit sequentially in the fourth quarter. Consolidated adjusted EBITDA is forecast to be down in the high teens to low 20% range from third-quarter 2024 results. 

PPG Industries, Inc. PPG reported third-quarter adjusted earnings per share of $2.13, which missed the Zacks Consensus Estimate of $2.15. PPG anticipates organic sales to be flat and adjusted earnings per share to be at the bottom end of the $8.15-$8.30 range for full-year 2024.

 

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