THE WOODLANDS, Texas - Huntsman Corporation (NYSE: NYSE:HUN) experienced a slight decrease in its stock by 1.6% after reporting a fourth-quarter adjusted loss per share of $0.21, which fell short of analyst expectations by $0.04. The chemical company's revenue for the quarter was $1.4 billion, surpassing the consensus estimate of $1.33 billion.
In comparison to the same period last year, Huntsman's fourth-quarter revenue decreased by 15%, down from $1.65 billion. The company's net loss attributable to Huntsman was $71 million, an improvement from a net loss of $91 million in the prior year. Adjusted EBITDA also saw a decline to $44 million from $87 million YoY.
Chairman, President, and CEO Peter R. Huntsman commented on the results, noting that while a moderate improvement was seen in early 2024, the demand inflection point remains elusive. However, he expressed optimism about the future, citing the company's positioning to benefit from volume leverage and cost control measures once market conditions improve.
The company's Polyurethanes segment saw a revenue decrease primarily due to lower MDI average selling prices and sales volumes combined with an adverse sales mix. The Performance Products segment also reported lower revenues and volumes due to slow construction activity and weak demand in fuel and lubes and other industrial markets. The Advanced Materials segment's revenue drop was attributed to lower sales volumes and selling prices in response to reduced raw material costs.
Despite the challenging demand environment, Huntsman remains focused on financial strength, considering internal and external investments, and returning cash to shareholders through dividends and buybacks, as evidenced by the Board's approval of a 5% increase to the quarterly dividend.
Looking ahead, the company expects to spend approximately $200 million on capital expenditures in 2024 and anticipates an adjusted effective tax rate of 34% to 37%. Huntsman's liquidity remains strong, with approximately $1.7 billion of combined cash and unused borrowing capacity as of December 31, 2023.
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