Huntsman Corp. released its fourth-quarter and year-end earnings report for 2007 Friday, showing significant losses despite increased revenues.
The net loss for 2007 was $172.1 million, or 74 cents per share, compared to net income of $229.8 million, or 99 cents per share, for 2006. Revenues for 2007 were $9.65 billion, an increase of 11 percent over $8.73 billion in 2006.
The report indicates the 2007 net loss included $217.1 million from discontinued operations and $209.8 million in merger-related expenses, while 2006 results include $132.9 million in losses from discontinued operations.
The company, based in Houston and Salt Lake City, reported fourth-quarter revenues of $2.5 billion in 2007, a 17 percent increase compared to $2.15 billion for the fourth quarter of 2006. Net income for the fourth quarter of 2007 was $2.2 million, or 1 cent per share, compared with $80.2 million, or 34 cents per share, for the same period in 2006.
Last year, Huntsman Corp. sold its European units to Saudi Basic Industries Corp. for $685 million and its North American polymers and chemicals operations to Koch Industries Inc.'s Flint Hills Resources unit for $456 million. In addition, the sale of plants in Port Neches, Texas, to Texas Petrochemicals LP was completed in June for $262 million.
Huntsman is in the process of being acquired by Apollo Management LP's Hexion Specialty Chemicals unit for $6.54 billion in cash.
"When we sold those businesses, we took a one-time hit of about $250 million," Chief Executive Officer Peter Huntsman said Friday. "That was not cash that was out the door; it was a write-down of those assets."
Huntsman said the businesses were sold because the company believed they would have been less competitive in the current global market environment.
"It was a very, very wise decision to have sold those assets," Peter Huntsman said. "We received nearly $2 billion for those businesses that are today probably marginally profitable."
He said with the less-profitable businesses sold, the company is now quite optimistic about the coming year.
"As we look at 2008," he said, "we'll continue to see strong growth in most all of our businesses."Huntsman stock rose 73 cents Friday to close at $23.37. During the past year, the price has ranged from $18.39 to $28.40.
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