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Huntsman (HUN) Reports On Impact of Hurricane Ida on Operations

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Huntsman Corporation (HUN - Free Report) announced that Hurricane Ida caused no significant damage to its Geismar, LA manufacturing facility.

The Geismar site is involved in the production of Huntsman's Polyurethanes and Performance Products divisions. All units were shutdown systematically and safely before Hurricane Ida made landfall.

Site personnel are presently preparing the production units for restart. The defined timing of the restart of each unit relies on the availability of utilities and the ability of other third-party suppliers to resume their respective operations.

At present, the company's best estimate is that production comes back online slowly this coming weekend with a spike in rates next week. Under this timeline, Huntsman expects that the estimated impact from the hurricane to third-quarter 2021 EBITDA will be offset by strength in the broader Performance Products division as well as the European and Asian MDI markets.

Shares of Huntsman have increased 16.8% in the past year compared with 22.7% rise of the industry.

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The company, in its last earnings call, stated that it is focused on delivering a strong EBITDA performance and high free cash flow in the second half of 2021. It is focused on maintaining a strong balance sheet and a balanced capital deployment.

It is also optimistic about its progress in organic capital investments, including the MDI splitter project in Geismar that is expected to commence in early 2022.


Zacks Rank & Key Picks

Huntsman currently carries a Zacks Rank #3 (Hold).

Some better-ranked stocks in the basic materials space are Nucor Corporation (NUE - Free Report) , Dow Inc. (DOW - Free Report) and Cabot Corporation (CBT - Free Report) .

Nucor has a projected earnings growth rate of around 478.7% for the current year. The company’s shares have soared 149.2% in a year. It currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Dow has an expected earnings growth rate of around 403% for the current year. The company’s shares have gained 25.7% in the past year. It currently flaunts a Zacks Rank #2 (Buy).

Cabot has an expected earnings growth rate of around 138.5% for the current fiscal. The company’s shares have rallied 36.9% in the past year. It currently carries a Zacks Rank #2.

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