Huntsman Corporation (HUN) has reported a 75.63 percent plunge in profit for the quarter ended Jun. 30, 2015. The company has earned $29 million, or $0.12 a share in the quarter, compared with $119 million, or $0.48 a share for the same period last year. Revenue during the quarter dropped 8.30 percent to $2,740 million from $2,988 million in the previous year period. Total expenses were 94.67 percent of quarterly revenues, up from 92.77 percent for the same period last year. That has resulted in a contraction of 190 basis points in operating margin to 5.33 percent.
Operating income for the quarter was $146 million, compared with $216 million in the previous year period.
Peter R. Huntsman, our president and chief executive officer, commented: "Our Performance Products and Advanced Materials businesses continue to demonstrate remarkable earnings. Combined, these businesses represent approximately 50% of our adjusted EBITDA; they have EBITDA margins of approximately 20% and low earnings volatility. Their EBITDA grew approximately 20% compared to the prior year and we have growth projects in place for these businesses that are expected to deliver an additional $100 million over the next couple of years."
Operating cash flow turns positive
Huntsman Corporation has generated cash of $181 million from operating activities during the first half as against cash outgo of $17 million in the last year period.
The company has spent $233 million cash to meet investing activities during the first six months as against cash outgo of $202 million in the last year period.
The company has spent $202 million cash to carry out financing activities during the first six months as against cash inflow of $103 million in the last year period.
Cash and cash equivalents stood at $599 million as on Jun. 30, 2015, up 48.64 percent or $196 million from $403 million on Jun. 30, 2014.
Working capital increases
Huntsman Corporation has recorded an increase in the working capital over the last year. It stood at $2,473 million as at Jun. 30, 2015, up 7.34 percent or $169 million from $2,304 million on Jun. 30, 2014. Current ratio was at 2.17 as on Jun. 30, 2015, up from 2.07 on Jun. 30, 2014.
Cash conversion cycle (CCC) has increased to 87 days for the quarter from 82 days for the last year period. Days sales outstanding went up to 57 days for the quarter compared with 55 days for the same period last year.
Days inventory outstanding has increased to 79 days for the quarter compared with 69 days for the previous year period. At the same time, days payable outstanding went up to 49 days for the quarter from 41 for the same period last year.
Debt moves up
Huntsman Corporation has witnessed an increase in total debt over the last one year. It stood at $5,047 million as on Jun. 30, 2015, up 24.13 percent or $981 million from $4,066 million on Jun. 30, 2014. Total debt was 47.71 percent of total assets as on Jun. 30, 2015, compared with 43.06 percent on Jun. 30, 2014. Debt to equity ratio was at 2.74 as on Jun. 30, 2015, up from 1.76 as on Jun. 30, 2014. Interest coverage ratio deteriorated to 2.75 for the quarter from 4.24 for the same period last year.
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