Huntsman Corp.'s (HUN) second-quarter profit rose 8.8% on improved sales by the chemical company's polyurethanes business. All other segments, however, declined.
Huntsman's chemicals are used to make products for a wide range of industries, including aviation, textiles, construction and auto manufacturing. The company's revenue had previously grown in recent quarters as Huntsman offset rising raw-material costs with higher prices. However, the industry at large now faces slowing global demand due to weakness in Europe.
Huntsman in July agreed to buy full ownership of Huntsman NMG, its Russian polyurethanes joint venture with NMG, a polyurethanes maker in the former Soviet Union. Financial terms weren't disclosed, and the company said the investment will offer greater access to high-value coatings, adhesives and elastomers markets in Russia and other areas of the former Soviet Union.
Huntsman reported a profit of $124 million, or 52 cents a share, up from $114 million, or 47 cents a share, a year earlier. Excluding restructuring expenses and costs tied to a terminated merger, earnings rose to 58 cents from 48 cents.
Revenue slipped 0.7% to $2.91 billion.
Analysts surveyed by Thomson Reuters recently expected a per-share profit of 54 cents on revenue of $3.02 billion.
Gross margin widened to 18.1% from 17.1%.
Sales at the polyurethanes business, which makes products ranging from fuel additives to coatings and is the company's largest revenue contributor, increased 12% to $1.27 billion on higher volumes, partially offset by lower prices.
Performance products revenue declined 14% as prices fell, mostly in response to lower raw material costs, and volumes also dropped amid lower demand across most markets.
Pigments revenue declined 4% as volumes fell on weak global demand but prices improved.
The company said it has yet to realize the majority of benefits from its restructuring efforts.
Shares closed Tuesday at $12.65 and were inactive premarket. The stock is off 34% in the past 12 months.
