Huntsman Corp. on Friday reported a decrease in net income for the first quarter, despite increased revenues from last year.
Net income for the first quarter of 2008 was $7.3 million, or 3 cents per share, compared to net income of $46.6 million, or 20 cents per share, for the same period in 2007.
The company, based in Houston and Salt Lake City, reported revenues for the first quarter of 2008 of $2,540.4 million, a 13 percent increase compared to $2,251.9 million for the first quarter of 2007. The company attributed the increase to higher selling prices.
"First-quarter earnings were in line with our results for the fourth quarter and were achieved despite the continued escalation in prices for many of our raw material and feedstock, the continued decline in the value of the U.S. dollar as compared to the euro, and the impact on our customers, suppliers and employees from the uncertainties related to our pending merger," said president and chief executive officer Peter R. Huntsman in a statement.
In July 2007, the company agreed to be acquired by the Hexion Specialty Chemicals unit of New York-based Apollo Management LP for $28 a share.
In April, Huntsman Corp. announced that Hexion had exercised its right to extend the termination date under the merger agreement by 90 days from April 5 to July 4. Under the terms of the agreement, the $28 common share price to be paid by Hexion upon completion of the merger increased at the rate of 8 percent per year beginning April 6.
"We continue to engage in constructive discussions with the antitrust agencies regarding the regulatory approvals required to close the transaction," Huntsman said.
Huntsman stock fell 58 cents Friday to close at $22.65. During the past year, the price has ranged from $18.70 to $28.40.