- Huntsman ( NYSE: HUN ) has trimmed its profitability outlook for the third quarter, now expecting adjusted EBITDA from continuing operations to be between $260M and $280M.
- Previous outlook called for adjusted EBITDA between ~$310M and $355M, excluding Textile Effects.
- The specialty chemicals firm will begin reporting Textile Effects as discontinued operations following its sale to Archroma , a portfolio company of SK Capital Partners.
- CEO Peter Huntsman stated that the company is feeling pressured from the persistent and extraordinary cost of energy in Europe, lower than expected demand across segments and continued Covid-related lockdowns.
- Given the current operating environment, it is evaluating further cost reduction and optimization opportunities and is actively moving product into Europe from facilities in the U.S. and Asia.
- "We remain on track to exceed our previously announced cost optimization and synergy program and expect to deliver an annualized run rate of approximately $170 million by year-end, " added Peter Huntsman.
- Shares have dipped 6% pre-market in response to the guidance cut
For further details see:
Huntsman cuts Q3 adj. EBITDA outlook amid lower demand, high costs