Huntsman manufactures chemicals used in insulation, construction materials, adhesives, electronics and paint. In 2007, polyurethanes accounted for 39.6% of sales, driven by the strong growth of MDI (a type of polyurethane), a versatile material mostly used in construction and insulation., and revenues totaled $9.65 billion. Huntsman sells its products globally, with a strong presence in the US and in the Netherlands. In 2007, sales in the US and the Netherlands accounted for 49.6% and 22.5% of sales respectively.
In the past 5 years, Huntsman has been plagued by debt. In 2003, Huntsman had debt of $5.9 billion on revenues of just $4.8 billion, and although the ratio has improved (total debt was $3.6 billion in 2007), the interest from the debt has been the main reason Huntsman has been unprofitable. In the five years from 2003 – 2007, 2006 was the only year Huntsman has posted a positive net income.(Read more at Wikinvest )
- Business Financials
- Key Trends and Forces
- MDI sales are the key driver of revenue growth
- The amount of debt can still hurt the company’s bottom line
- Further merger delays could hurt Huntsman sales
- Continuing changes in environmental, health and safety laws can cost the company