Get breaking news alerts via email

Click here to manage your alerts
(Rick Egan | Tribune file photo) The Huntsman Chemical Plant in Port Neches, Texas.
Huntsman stock up after report hints of sale

Deals » Company won’t confirm whether Bank of America has been brought on board.

First Published Apr 03 2012 08:12 am • Last Updated Apr 04 2012 12:11 am

Huntsman Corp., the chemicals conglomerate based in Salt Lake City and The Woodlands, Texas, is attracting investor attention after DealReporter said it hired Bank of America Corp. to explore a potential sale of the company.

Company shares rose 1 percent on Tuesday after Monday’s gain of 7 percent, which was the biggest advance in the company’s stocks in more than a month. Huntsman shares closed Tuesday at $15.11, up 12 cents for the day.

At a glance

Huntsman Corp. at a glance

Worldwide operations » 75 facilities in 30 countries

Administrative headquarters » Salt Lake City

Utah employees » 60

Corporate headquarters » The Woodlands, Texas

Employees worldwide » 12,000+

Annual revenue » $11.2 billion in 2011

Net income » $247 million in 2011

Join the Discussion
Post a Comment

DealReporter, a news website that is part of The Financial Times Group, cited two people in the industry whom it didn’t identify.

Brad Hart, a spokesman for Huntsman, would neither confirm nor deny the report when contacted by The Salt Lake Tribune, saying only"no comment."

Founder Jon M. Huntsman said in a March 8 investor presentation that he would pursue a sale of part or all of the company "at the right price" because it is being undervalued by the market.

Huntsman Corp. is worth at least $19 a share based on a multiple of six times normalized earnings before interest, taxes, depreciation and amortization, the company’s chairman said.

He added that the company has no interest in selling at the current market value.

In early February, Bloomberg News reported that Huntsman and Celanese Corp. were turning into the cheapest takeover targets in the U.S. chemicals industry as signs grew that a strengthening economy would boost demand for paint ingredients and building insulation.

At the time, Huntsman was trading at 6.7 times estimated 2012 earnings, the lowest valuation among 29 U.S. basic and diversified chemicals companies with market values of more than $1 billion, according to data compiled by Bloomberg. Celanese, the world’s biggest producer of acetic acid, was the second-cheapest, at 10.1 times.

With U.S. economic growth accelerating at the fastest pace in 18 months and confidence among U.S. homebuilders climbing to a four-year high, analysts quoted by Bloomberg projected that Huntsman and Celanese would both post record sales this year.

story continues below
story continues below

In its most recent earnings report, Huntsman said revenue reached $11.2 billion, up 21 percent in fiscal 2011, compared with its prior year. Net income was $247 million, or $1.02 per share. A year earlier, Huntsman reported net income of $27 million, or 11 cents per share.

For the fourth quarter of 2011, Huntsman said revenue rose 9 percent, to $2.6 billion. Net income was $105 million, or 44 cent per share, compared with $30 million, or 12 cents per share, recorded in the final quarter of fiscal 2010.

Copyright 2014 The Salt Lake Tribune. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

Top Reader Comments Read All Comments Post a Comment
Click here to read all comments   Click here to post a comment

About Reader Comments

Reader comments on sltrib.com are the opinions of the writer, not The Salt Lake Tribune. We will delete comments containing obscenities, personal attacks and inappropriate or offensive remarks. Flagrant or repeat violators will be banned. If you see an objectionable comment, please alert us by clicking the arrow on the upper right side of the comment and selecting "Flag comment as inappropriate". If you've recently registered with Disqus or aren't seeing your comments immediately, you may need to verify your email address. To do so, visit disqus.com/account.
See more about comments here.
Staying Connected
Contests and Promotions
  • Search Obituaries
  • Place an Obituary

  • Search Cars
  • Search Homes
  • Search Jobs
  • Search Marketplace
  • Search Legal Notices

  • Other Services
  • Advertise With Us
  • Subscribe to the Newspaper
  • Access your e-Edition
  • Frequently Asked Questions
  • Contact a newsroom staff member
  • Access the Trib Archives
  • Privacy Policy
  • Missing your paper? Need to place your paper on vacation hold? For this and any other subscription related needs, click here or call 801.204.6100.