Please ensure Javascript is enabled for purposes of website accessibility

A Record Quarter for This Chemical Company

By Taylor Muckerman and Joel South - Nov 3, 2012 at 4:00PM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Natural gas continues to provide cheap feedstocks.

Continuing the trends from several high-profile chemical companies that released third-quarter results last week, Huntsman (HUN 1.38%) 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 (DOW), LyondellBasell (LYB 3.84%), and Westlake Chemical (WLK 0.90%).

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.

Invest Smarter with The Motley Fool

Join Over 1 Million Premium Members Receiving…

  • New Stock Picks Each Month
  • Detailed Analysis of Companies
  • Model Portfolios
  • Live Streaming During Market Hours
  • And Much More
Get Started Now

Stocks Mentioned

Huntsman Corporation Stock Quote
Huntsman Corporation
HUN
$36.66 (1.38%) $0.50
DuPont de Nemours, Inc. Stock Quote
DuPont de Nemours, Inc.
DOW
Westlake Chemical Corporation Stock Quote
Westlake Chemical Corporation
WLK
$129.61 (0.90%) $1.16
LyondellBasell Industries N.V. Stock Quote
LyondellBasell Industries N.V.
LYB
$115.78 (3.84%) $4.28
Kronos Worldwide, Inc. Stock Quote
Kronos Worldwide, Inc.
KRO
$18.82 (0.03%) $0.01

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

Related Articles

Motley Fool Returns

Motley Fool Stock Advisor

Market-beating stocks from our award-winning service.

Stock Advisor Returns
344%
 
S&P 500 Returns
120%

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 05/27/2022.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.