Chemical company Huntsman posts 84 percent 1Q profit drop

THE WOODLANDS, Texas—Specialty chemical company Huntsman Corp. said Friday its first-quarter profit tumbled 84 percent on costlier raw materials and feedstocks and dollar weakness.

Net income for the three months ended March 31 fell to $7.3 million, or 3 cents per share, compared with $46.6 million, or 20 cents per share, in the prior year's first quarter.

Excluding one-time gains, Huntsman earned 7 cents per share in the recent quarter.

Analysts polled by Thomson Financial expected, on average, earnings per share of 22 cents. Such estimates typically exclude one-time gains.

Revenue rose 13 percent to $2.54 billion from $2.25 billion. Analysts expected revenue of $2.37 billion.

Chief Executive Peter R. Huntsman, in a statement, cited such challenges as "continued escalation in prices for many of our raw material and feedstock, the continued decline in the value of the U.S. dollar as compared to the euro and the impact on our customers, suppliers and employees from the uncertainties related to our pending (acquisition by Hexion Specialty Chemicals Co.)."

Columbus, Ohio-based Hexion, which is controlled by an affiliate of Apollo Management LP, plans to buy Huntsman for $6.5 billion in cash.