Huntsman Corp. (HUN:US), the biggest maker of textile dyes, climbed the most in more than two months as demand for chemicals used in insulation and composite wood helped boost third-quarter earnings past analysts’ expectations.
Huntsman rose 4.2 percent to $16.19 at the close in New York, the biggest gain since Aug. 15. The company is based in Salt Lake City and run from The Woodlands, Texas.
Net income was $116 million, or 48 cents a share, compared with a net loss of 34 million, or 14 cents, a year earlier, Huntsman said today in a statement. Profit excluding restructuring and other expenses was 70 cents a share, exceeding the 51-cent average of 11 analysts’ estimates (HUN:US)compiled by Bloomberg.
Adjusted profit in the polyurethanes unit, which makes ingredients for insulation, adhesives and composite wood, rose 71 percent to $239 million on higher prices and stronger demand in Europe and Asia. That more than made up for a 55 percent decline in pigments, where sales volumes for titanium dioxide, known as TiO2, fell and ore costs rose.
“Investors should take comfort that polyurethanes continues to offset the expected decline in TiO2,” Edlain Rodriguez, an analyst at Lazard Capital Markets LLC in New York, who recommends buying the shares, said today in a note.
Revenue declined 7.9 percent to $2.74 billion from $2.98 billion.
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