Huntsman Corp. posted higher third-quarter earnings, despite an unplanned outage at its Port Neches plant that cut into the company’s polyurethane production and slashed sales volumes.
The Woodlands-based chemical manufacturer recorded earnings of $188 million, or 76 cents per share, during the three-month period ending Sept. 30. That’s up from $64 million, or 26 cents per share, during the same period a year ago.
Those earnings included a one-time tax benefit of $94 million. Excluding acquisition costs, tax credit elections and pension adjustments, Huntsman posted adjusted earnings per share of 60 cents, up from 54 cents a year ago.
The company attributed the increase to growing demand for key products, including textile dyes and chemicals and a specific kind of polyurethanes, which are used in construction, refrigeration and to make coatings and adhesives, despite flat sales in the weak European economy, where Huntsman has a sizable footprint.
“2014 is shaping up to be a great year for us but we still have plenty of room for improvements,” CEO Peter Huntsman said in an earnings call with investors Monday.
The boost in the polyurethane business, however, was partially offset by a decrease in sales volumes of propylene oxide and methyl tertiary butyl ether at the company’s Port Neches facility, which experienced an unplanned disruption in the third quarter. The outage cost the company $30 million in earnings, the company said.
Huntsman is planning to take the plant offline in February for routine maintenance that will cost the company $60 million, including lost revenue.
The company remained optimistic about its recent purchase of assets from New Jersey-based Rockwood Holdings, the largest pigmetns producer in Europe. The $1 billion deal, which closed Oct. 1, made Huntsman the second-largest maker in the world of titanium dioxide and inorganic color pigments, used in paint, coatings and other products.
The company said it expects the acquisition to yield earnings per share of 70 cents to shareholders by the middle of 2016.
Third-quarter revenue climbed 1.4 percent to nearly $2.9 billion.
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