Huntsman group lists increase in earnings

The Salt Lake-based Huntsman group of companies on Tuesday reported combined earnings before interest, taxes, depreciation and amortization of $293.2 million during the third quarter — a figure that includes $33.9 million of restructuring and other charges.

The third-quarter 2004 amount compares with year-ago quarter EBITDA of $166.9 million, including $10.7 million in charges, and second-quarter 2004 EBITDA of $116.3 million, including charges of $171.6 million.

Third-quarter adjusted EBITDA was $327.1 million, up from the year-ago quarter's $177.6 million and the second quarter's $287.9 million.

The adjusted figures eliminate the impacts of restructuring and reorganization costs, gains and losses on the accounts receivable securitization program, gains and losses from early extinguishment of debt, nonrecurring legal and contract settlements and minority interest.

"The third-quarter results reflect a good, solid performance despite continued high and volatile energy and feedstock costs," Peter R. Huntsman, president and chief executive officer, said in a prepared statement.

"We are finally approaching normalized levels of profitability in many of our products after years of difficult industry conditions. Our results also indicate ongoing success with our $200 million global cost-reduction initiative. We remain cautiously optimistic about our outlook for the remainder of the year."

The group's world headquarters are in Salt Lake City, but its administrative headquarters are in Texas.

The Huntsman companies have more than 15,000 employees worldwide in six divisions: advanced materials, base chemicals, performance products, pigments, polymers and polyurethanes. Its materials are found in everything from cars, airplanes and footwear to paints, textiles and packaging products.

The companies include HMP Equity Holdings Corp. and its principal operating subsidiaries Huntsman LLC, Huntsman International Holdings LLC and Huntsman Advanced Materials LLC.

As of Sept. 30, HMP and its subsidiaries had combined cash and unused borrowing capacity of approximately $923 million, comprised of $185 million at Huntsman LLC excluding HIH, $629 million at HIH and $109 million at Advanced Materials.

The Huntsman companies, with operations in 40 countries, said in September it will go public, filing with the Securities and Exchange Commission a registration statement by year-end for an initial public offering. The proceeds, it said, would be used to repay debt, which stood at about $5.8 billion.

Jon Huntsman Jr., chairman and CEO of Huntsman Family Holdings Co., is Utah's governor-elect, although he has said he will relinquish his company duties when he takes office Jan. 3.