Huntsman(US:HUN)2025-05-02 15:02Financial Data and Key Metrics Changes - The company did not provide specific financial data or key metrics for the first quarter of 2025, but indicated that there was significant volatility in order patterns and demand [8][29] - The management expressed concerns about the disconnect between orders and downstream demand, particularly in the automotive and aerospace sectors [8][23] Business Line Data and Key Metrics Changes - The MDI (Methylene Diphenyl Diisocyanate) market saw a significant drop in imports into the Americas, with a 60% decrease by the end of March 2025 compared to previous months [10] - The company noted that while MDI prices in China had stabilized and recovered by 10%, the overall market conditions remained uncertain [12][14] Market Data and Key Metrics Changes - The automotive industry experienced a low single-digit percentage drop in production, with some manufacturers slowing down production in Mexico [22] - The construction materials market also showed volatility, with a disconnect between the number of homes being built and sold [26] Company Strategy and Development Direction - The company is focused on capitalizing on short-term changes and volatility while aligning costs with long-term market realities [16] - Management emphasized the need for a clear and realistic industrial policy in Europe to encourage investment [15] Management's Comments on Operating Environment and Future Outlook - Management expressed uncertainty about the macroeconomic environment and the petrochemical industry, indicating that many companies might need to adjust their outlooks [7][8] - The management believes that the current supply and demand issues are largely driven by uncertainty and expects these conditions to resolve in the coming months [9] Other Important Information - The company announced the closure of its Boisbury facility in Canada for spray foam, consolidating operations in Arlington, Texas [35] - The management reiterated their commitment to maintaining the dividend, citing a strong balance sheet and confidence in future cash generation [58][59] Q&A Session Summary Question: Can you speak to the bullwhip effect and inventory levels? - Management acknowledged the bullwhip effect and noted that inventory levels are generally leaner than in previous years, with pronounced volume reductions in automotive and aerospace sectors [20][24] Question: What is the outlook for the spray foam business? - The spray foam business has seen a slowdown in both new home construction and remodeling, impacting demand [34] Question: How are pricing and margins in the MDI market? - Management indicated that while they are pushing for price increases, the lack of demand has made it challenging to implement these increases effectively [37][38] Question: What is the impact of planned turnarounds on EBITDA? - Management estimated a $15 million hit to EBITDA in the first half of the year due to planned turnarounds, with $5 million in Q1 and $10 million expected in Q2 [62] Question: How does the company view its debt levels? - Management expressed that while current margins are not satisfactory, they believe the balance sheet remains strong and that improvements in EBITDA will help reduce leverage [104]