Huntsman Corporation HUN logged fourth-quarter 2023 net loss of $71 million or 41 cents per share compared with a loss of $91 million 48 cents per share in the year-ago quarter.

Barring one-time items, adjusted loss per share came in at 21 cents per share for the reported quarter. It was wider than the Zacks Consensus Estimate of a loss of 14 cents.

Revenues were $1,403 million, down around 15% year over year. The top line, however, beat the Zacks Consensus Estimate of $1,324 million. HUN witnessed lower sales across its segments in the quarter on reduced prices and volumes.

 

Huntsman Corporation Price, Consensus and EPS Surprise

 

Huntsman Corporation price-consensus-eps-surprise-chart | Huntsman Corporation Quote

 

Segment Highlights

Polyurethanes: Revenues from the segment declined 16% year on year to $895 million in the reported quarter, owing to lower MDI average selling prices, fewer sales volumes and an adverse sales mix. It was above our estimate of $881 million. MDI average selling prices fell in the quarter due to less favorable supply and demand dynamics.

Performance Products: Revenues fell 15% to $260 million as a result of a decline in average selling prices and modestly lower sales volumes. It was above our estimate of $246 million. Sales volumes fell due to slow construction activities and soft demand in fuel and lubes and other industrial markets.

Advanced Materials: Revenues from the unit declined 10% to $251 million due to reduced sales volumes and lower average selling prices. It was higher than our estimate of $243 million. Sales volumes fell mainly due to lower customer demand in industrial and commodity markets.

FY23 Results

Earnings for full-year 2023 were 57 cents per share compared with earnings of $2.27 per share a year ago. Net sales fell around 24% year over year to $6,111 million.

Financials

Huntsman ended 2023 with cash of $540 million, down around 17% year over year. Long-term debt was $1,676 million, flat year over year.

Net cash provided by operating activities from continuing operations was $166 million in the fourth quarter while free cash flow from continuing operations was $83 million.

Huntsman repurchased approximately 2.1 million shares for roughly $50 million in the fourth quarter. Its board approved a 5% increase to its quarterly dividend.

Outlook

Huntsman said that it witnessed a modest improvement in demand in early 2024 from the lows experienced in the fourth quarter. Although HUN is yet to see a clear inflexion point in demand, it remains optimistic about the future. The company is well-placed to gain significantly from volume leverage once its end markets improve and as it continues to control costs, HUN noted.