Huntsman Corp (HUN) Reports Q3 2023 Earnings: Revenues Down 25% YoY, Net Income Drops to Zero
Huntsman Corp (NYSE:HUN) reported Q3 2023 revenues of $1,506 million, a 25% decrease from $2,011 million in Q3 2022.
The company's net income attributable to Huntsman Corporation dropped to $0 million from $100 million in the same period last year.
Adjusted EBITDA for the quarter was $136 million, down from $271 million in Q3 2022.
Free cash flow from continuing operations was $117 million, compared to $228 million in the same period last year.
On October 31, 2023, Huntsman Corp (NYSE:HUN) released its third quarter 2023 earnings report. The company reported revenues of $1,506 million, a significant decrease from $2,011 million in the same period last year. Net income attributable to Huntsman Corporation dropped to $0 million from $100 million in Q3 2022. Despite these challenges, the company remains committed to strategic investments and cost control.
Financial Performance Overview
The company's revenues for the first nine months of 2023 were $4,708 million, down from $6,373 million in the same period in 2022. Net income for the nine-month period was $172 million, a significant decrease from $551 million in 2022. The company's adjusted net income for the period was $103 million, compared to $628 million in 2022.
CEO Commentary
Peter R. Huntsman, Chairman, President, and CEO, commented on the company's performance. He stated,
Between 2020 and 2022 we strengthened our balance sheet through a combination of timely strategic divestitures and improved free cash flow generation. These actions placed us in a strong position to weather the current year of depressed demand and economic uncertainty."
Segment Analysis
The company's Polyurethanes segment reported a decrease in revenues due to lower MDI average selling prices and lower sales volumes. The Performance Products segment also reported a decrease in revenues due to lower sales volumes and reduced average selling prices. The Advanced Materials segment reported a decrease in revenues primarily due to lower sales volumes.
Liquidity and Capital Resources
As of September 30, 2023, Huntsman Corp (NYSE:HUN) had approximately $1.8 billion of combined cash and unused borrowing capacity. The company spent $50 million on capital expenditures from continuing operations during the third quarter of 2023, compared to $57 million in the same period of 2022.
Outlook
Despite the challenging market conditions, Huntsman Corp (NYSE:HUN) remains committed to its strategic investments and cost control measures. The company is confident in the long-term outlook for its products and is looking forward to improved economic conditions in 2024.
Explore the complete 8-K earnings release (here) from Huntsman Corp for further details.
This article first appeared on GuruFocus.
