Huntsman Expects Q1 Adj EBITDA To Be 10% Lower Sequentially - Quick Facts

(RTTNews) - Specialty chemicals company Huntsman Corp. (HUN) on Monday provided an update on the first quarter 2019 outlook.

Huntsman expects its first quarter 2019 consolidated adjusted EBITDA to be 10 percent or so below fourth quarter 2018, due to a slower seasonal pickup in North America and a softer European economy. However, the company reaffirms its prior full year guidance of 2019 adjusted EBITDA to be between 5 and 7 percent lower than 2018 as it remains cautiously encouraged that the rest of the year will improve.

For the first quarter, the company said its largest business segment, Polyurethanes, 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.

While Huntsman expects the Polyurethanes segment first quarter results to be a bit softer than previously expected due to overall softer volumes, the margins in the downstream business remain stable.

Huntsman expects the Performance Products segment results for the first quarter to be flat to down sequentially, compared to previous expectation of flat to up, due largely to weather-related delays in the agricultural markets and weaker oilfield chemical demand.

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.

The Textile Effects segment continues to feel the effects of lingering challenges in China resulting in softer volumes than previously expected. Huntsman expects first quarter results in this segment to be similar to fourth quarter 2018.

The management will be presenting to investors the company's updated outlook for the first quarter 2019 over the coming days at the Goldman Sachs Houston Chemical Intensity Days Conference in Houston, Texas.