Huntsman CEO sees impact from weather, pipeline outage in Q1

Peter Huntsman, head of U.S.-based Huntsman Corp., said that higher prices on titanium dioxide are needed to avoid a global capacity crunch that could hit recovery in the auto and housing markets. Supplies of titanium ore are becoming more difficult and expensive to secure. Huntsman said no new titanium dioxide plant had been built outside of China for 20 years, and demand is outstripping expansion in Asia. Titanium dioxide is used as a pigment in paint. The company reported a profit of US$30 million, or 12 cents a share, down from US$66 million, or 26 cents a share, a year earlier. The latest period included a US$17 million tax benefit, down from US$73 million a year earlier. Excluding restructuring charges and “debt-extinguishment” losses, earnings slipped to 24 US cents a share, from 30 US cents, while revenue increased 17% to US$2.41 billion. Average titanium dioxide selling prices are up 8%. (February 17, 2011)