A Record Quarter for This Chemical Company

Continuing the trends from several high-profile chemical companies that released third-quarter results last week, Huntsman (NYSE: HUN  ) displayed strength in nearly all aspects of its business over the past three months. Aside from the pigments division, which produces titanium dioxide, all others improved their earnings year over year. Natural gas prices are still propelling margins on the production of ethylene and other derivative chemicals higher in the United States, which has contributed to the recent surge by Hunstman and competitors Dow Chemical (NYSE: DOW  ) , LyondellBasell (NYSE: LYB  ) , and Westlake Chemical (NYSE: WLK  ) .

Credit restructuring and cost-cutting measures have also helped contribute to these widening margins. Management plans on rolling the measures out through 2013 and has already helped the company improve its balance sheet. Using these record earnings, Huntsman generated $200 million in cash from operations and paid of $75 million in debt.

The movement toward alternative energy is gaining momentum. One potential opportunity in this field is Clean Energy Fuels, which focuses its natural gas efforts primarily on trucking and fleets. It's poised to make a big impact on an essential industry. Read all about Clean Energy Fuels in our brand-new report. Just click here to get started.

Joel South and Taylor Muckerman have no positions in the stocks mentioned above. The Motley Fool owns shares of Clean Energy Fuels. Motley Fool newsletter services recommend Clean Energy Fuels. Try any of our Foolish newsletter services free for 30 days. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.


Read/Post Comments (0) | Recommend This Article (3)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 2093581, ~/Articles/ArticleHandler.aspx, 11/22/2014 9:37:32 PM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...


Advertisement