Huntsman CORP Q3 FY2024 earnings call

• Third quarter ended as expected, focusing on fourth quarter and year end.
• Improvement in North American housing and construction is key for earnings.
• MDI price increases in Q4 had little traction despite low inventories.
• Record global chemical assets for sale in Europe, with potential facility closures due to regulatory and cost issues.
• Initiating a $50 million cost reduction program in global polyurethanes business.
• Capitalizing on EV battery opportunities, energy efficiency in home and building materials.
• Recently settled Boeing strike will cost a few million dollars in Q4.
• Visits to markets in Malaysia, China, Saudi Arabia, and Korea identified relatively low growth but opportunities ahead.

No detailed absolute revenue figures with contribution percentages provided in the transcript. However, mentions include MDI market dynamics, with low inventories and recent price increases having little traction; Performance Products saw sales volume increases in construction, coatings, and adhesives but faced demand challenges.

• Hopes for lower interest rates, pent-up housing demand, Asian stimulus announcements, lower inventories, and greater political certainty in Europe and U.S. to improve market conditions.
• Anticipates margin expansion in 2025 depending on demand in North American housing, Chinese consumer confidence, and Europe's manufacturing policy around energy.
• Believes global capacity utilization from Europe is moving to other regions like U.S., Middle East, and Asia.

• Uncertainty regarding competitors' MDI asset actions in Europe.
• Europe's regulatory and high-cost structures potentially leading to facility closures.
• Challenges in inventory restocking due to anemic demand in some regions.
• Impact of interest rate changes on consumer spending and housing demand.
• Delayed recovery from Boeing strike due to aerospace supply chain complexities.

Q: How to think about inventory restocking with demand anemic?

A: No widespread restocking until genuine demand picks up, with chemical supply chains taking time to ramp up if demand spikes.

Q: International trade flows in MDI and maleic anhydride?

A: Trade flows remain regional, with U.S. tariffs on MDI and maleic, and maleic overcapacity in China spilling into Europe.

Q: New business wins in North America polyurethanes and competitive position?

A: Wins in construction (OSB, insulation), but MDI is also used in other areas not major for Huntsman.

Q: Performance Amines capacity expansion timeline?

A: Polyurethane catalyst project in Hungary expected done by year end, ULTRAPURE amines production in qualifying phases with commercial contribution expected early 2025.

Q: Inventory charges and seasonality in Q4 EBITDA?

A: Q4 EBITDA includes seasonal slowness and inventory charges, with optimism for 2025 due to stimulus, rate cuts, and capacity utilization improvement.

Q: Impact of Boeing strike end on Q4 and beyond?

A: Boeing strike impact won't normalize quickly due to aerospace supply chain complexities, likely affecting Huntsman closer to year end.