Views: 1 Author: Site Editor Publish Time: 2019-03-26 Origin: Site
Huntsman Corporation, a manufacturer and marketer of specialty chemicals, has released its updated outlook for the first quarter of 2019. The company expects its first quarter 2019 consolidated adjusted EBITDA to be 10 per cent or so below fourth quarter 2018, largely resulting from a slower seasonal pickup in North America and a softer European economy.
Huntsman’s Textile Effects segment continues to feel the effects of lingering challenges in China resulting in softer volumes than previously expected. The US-based company expects first quarter results in this segment to be similar to fourth quarter 2018.
Meanwhile, Polyurethanes, Huntsman’s largest business segment is seeing improving trends in China. “However, this is currently being more than offset by a slower-than-expected seasonal pickup in construction-related markets and lower demand in automotive in North America, as well as softer demand patterns across most of the major European markets, including automotive,” the company said in a press release.
The Performance Products segment results for the first quarter will likely be flat to down from the fourth quarter 2018, versus the previous expectation of flat to up, due largely to weather-related delays in the agricultural markets and weaker oilfield chemical demand, Huntsman said.
Within the Advanced Materials segment, Huntsman is seeing similar pockets of softness, such as in construction and coatings, yet Huntsman still expects that its first quarter results will be modestly up from the fourth quarter 2018, which is roughly in line with previous expectations.
“We are pleased to see business conditions improve within our Polyurethanes segment in Asia following the Chinese New Year, and our downstream global strategy is working. Despite softer-than-anticipated conditions in Europe and a slower seasonal start in North America, our downstream margins are holding firm. While the first quarter has been more challenging than anticipated, it is largely volumetric. We continue to see inventory levels reduced and general long-term fundamentals intact. Absent macro events occurring that are out of our control, we remain cautiously encouraged that the rest of the year will improve, and we reaffirm our prior full year guidance of 2019 adjusted EBITDA between 5 per cent and 7 per cent lower than 2018,” said Huntsman president and CEO Peter R Huntsman.