Huntsman Announces Layoffs!

On February 17th, Huntsman Corporation (NYSE: HUN) released its fourth-quarter 2024 financial results, reporting revenues of $1.452 billion. The company recorded a net loss attributable to Huntsman of $141 million and an adjusted net loss of $43 million. The adjusted EBITDA was $71 million.

Chairman, President, and CEO Peter R. Huntsman commented:

"The fourth-quarter performance met our expectations as our core markets remain in a downturn. Although the company’s quarterly sales grew by 5% year-over-year and full-year sales increased by 6%, we have not yet seen this growth translate into the margin improvements we require. As we enter 2025, the construction and automotive markets (which account for approximately two-thirds of our business portfolio) remain sluggish. China is facing economic challenges, but we expect the automotive sector to show modest growth, and the region's overall profitability should remain relatively stable. High energy costs, heavy regulatory burdens, and overcapacity have severely impacted the industry conditions in Europe. We will not sit idly by waiting for the market to improve; we will continue to actively reduce costs, including announcing layoffs in our polyurethane division. In addition, we will begin evaluating strategic alternatives for our European maleic anhydride business and close downstream polyurethane plants. We will continue to focus on protecting our balance sheet, concentrating on cash, and creating a leaner company that will have significant operational leverage when demand starts to improve noticeably."

It is worth mentioning that in early February, driven by pressures from raw material, energy, and logistics costs, Huntsman raised prices for MDI products and its MDI-based polyurethane system products in Europe, Africa, the Middle East, and India.

Business Segment Performance

Polyurethane Business:

In the fourth quarter of 2024, revenue from the polyurethane business increased year-over-year, primarily driven by higher sales, especially from increased demand and market share in the insulation and composite wood panel markets.

Performance Products Business:

In the fourth quarter of 2024, revenue for the performance products segment decreased year-over-year, mainly due to a decline in sales, although the rise in average selling prices partly offset the revenue decrease. The decline in sales was primarily due to extended downtime in maleic anhydride production, a slowdown in construction activity, and weak demand in industrial markets, although modest improvements in fuel and lubricants partially offset the sales drop.

Advanced Materials Business:

In the fourth quarter of 2024, revenue from the advanced materials business increased year-over-year, primarily due to higher sales, although the decline in average selling prices partially offset this growth. Sales volumes in the infrastructure and general industrial sectors increased, but the drop in average selling prices was mainly due to an unfavorable sales mix.

Huntsman Performance in the First Three Quarters of 2024

In addition, Huntsman’s performance in the first three quarters of 2024 is also noteworthy:

• In the third quarter, the company reported revenues of $1.540 billion, with a net loss of $33 million, compared to a net profit of $0 million in the same period of 2023.
• In the second quarter, the company achieved revenues of $1.574 billion, with a net profit of $22 million, compared to a net profit of $19 million in the same period of 2023.
• In the first quarter, the company reported revenues of $1.47 billion, with a net loss of $37 million, compared to a net profit of $153 million in the same period of 2023.

Overall, Huntsman only recorded a net profit in the second quarter of 2024, while the other quarters were in a loss position, leaving the company with a net loss for the entire year.

It is worth mentioning that since the beginning of 2025, in response to the fierce competitive market, ten petrochemical giants including Dow, Arkema, INEOS, Teijin, Mitsubishi Chemical, Furla, AkzoNobel, Chevron, and others have announced plant closures, production halts, and layoffs. These measures, which affect products such as nylon, aramid, MMA, ethanol, coatings, and adhesives, reflect the current challenging situation in the chemical industry and the response strategies of businesses.