HUN - Earnings call transcript Q1 2020

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Operator

Greetings, and welcome to the Huntsman Corporation First Quarter 2020 Earnings Call. At this time, all participants are in a listen-only mode. A question-and-answer session will follow the formal presentation. [Operator Instructions] As a reminder, this conference is being recorded.

It is now my pleasure to introduce your host, Mr. of President Vice Marcuse, Investor Relations. Ivan sir. you, Thank

You may begin.

Ivan Marcuse

everyone. you, first Huntsman's and morning, Donna, good Welcome quarter to Thank XXXX earnings call.

the and Vice on President us call Peter are Joining Huntsman, and CEO; and Sean President Executive Douglas, CFO. today Chairman,

we This our the press and earnings via website, our released posted morning, XXXX market to quarter huntsman.com. for the release before opened, first

morning We use on will website, which also we posted a results. call set while this of our slides on our presenting this

projections our or may such and we the they guarantees our performance. not future. statements, statements During of involve are for make All expectations about statements and call, the while current risks forward-looking are and future they uncertainties reflect expectations,

could projections review materially with You our during cause revising expectations. more or the results filings information statements forward-looking to or do the publicly from updating for quarter. on differ not factors any plan these should SEC actual We that regarding the

EBITDA, will also income to measures cash non-GAAP and financial We as refer adjusted free net flow. adjusted such

You on reconciliations earnings been measures has financial release, which directly in posted most can comparable to website, our huntsman.com. find our GAAP the

will the now to over Huntsman, Chairman, I President CEO. call our and Peter turn

Peter Huntsman

Good the and morning, much, you for thank taking Thank very you time Ivan. us. join to everybody,

X. to Slides turn Let's X and

experienced Americas declines Adjusted trends global million quarter to offset the were first the versus European our ago. and were of during in able EBITDA $XX for MDI for growth Asia slowing the regions two volumes in months up the Polyurethanes quarter $XXX in year was and division volume the demand in quarter as Total million March. first a X%

relatively remained stable. Our differentiated margins

into existing differentiated to on component as the However, polymeric margins we diverted more upstream softer the demand in and markets in polymeric pressure being with polymeric to markets. MDI pressure continue added margin experience

downstream in innovation. the near-term of long-term remain further our headwinds, committed we product our and businesses investing to strategy Despite differentiated

product sustainable substitution for long-term solutions MDI urethanes confident and are trends that the positive remain We around intact.

regionally Polyurethanes quarter. at the for first Looking

in Several were the Our our the markets quarter. American construction-related single-digits year, volumes prior for versus the lower of growth was up prior year. automotive while saw

hit of The our Our added in globally. has this XX, which X% business integration X% the closed to spray growth of and Americas February polyurethane XXXX. integrate foam move current approximately with acquisition our given this existing business Icynene-Lapolla, on ground quickly the running. the by we achieve environment, targets looking Especially to our and to possible end are synergy of fully business the to as as

margins TEROL integrated world. is EBITDA of our Polyols will sustainable and approximately a $XXX so versatile years, leader million ecofriendly few We million. annualized billion have of especially to achieve EBITDA in otherwise the the in polyester product, remarkable when is with insulation equivalent that It's business. and most produce a with be as best to a of projected MDI X integrated feedstock produce excess business expect with $XX blended to well XX% polyol in bottles, excess in Within take the PET a growth market. business wasted in We The will and high the synergies. combined this a be

very a This alternative to compelling, is sustainable insulation traditional ecofriendly products. and

Geismar, spending continue out our this markets. months push appropriately project to leverage Louisiana current grow see and This spend international in fundamental commence In will decided six current to million. in our operations our hurdle North in to our year our this have remains differentiated order our by mid-XXXX. America. rate project reduce we IRR in footprint by we We business manage to to will long-term as splitter well above $XX growth estimated The to environment, discretionary now splitter global in capital the

of Turning region Asian Polyurethane. to the

volumes X%. down overall were Our

double-digit, end except footwear and use declines nearly due while was were sharp most the were demand. and down saw businesses over down markets and impact single-digit. to XX% ACE all shutdowns to supply COVID-XX, business Our for Asian Due up year, chains, the our prior mandatory insulation categories other business production, which that other restrictions

While the end at March. the quarter, improving overall for China the trends declined saw region through of starting February

are We overall the behind single-digit ACE us the that optimistic in growth cautiously Europe, in In we worst China. in saw is mid region.

However, of the weakening the we pandemic, acceleration toward with the saw the quarter. of volumes end

significantly our forward to this we Up to handful All closure operations of of lost albeit second these at to looking orders Now remained customers any Polyurethane a not time, quarter. the have facilities. a but running reduced have or due the rate.

is demand COVID-XX. by currently the global business on economic urethanes significant experiencing due reaped to impact a Our havoc

This be clear, demand our such demand To decline sharp felt this being markets. short in in is impact about we've of period just global core in time. a one on seen a of of never every

we China. China, remain and seasonal margins significantly not typically quarter is the differentiated in however, volumes Our year but we lost month component being differentiated as our both April happening resilient, the that of have impacted. The for except see this in are everywhere, essentially second uptick product entire

are we and versus XX% expectation idea we've automotive-related XX% businesses would year-ago believed our be both declines To and decline sequentially a Our down Europe. in is America saw seen, orders North Even Europe in than June around in the of conditions. month of XX%. the the and on in and construction-related for improving and of orders materially were our insulation backside products, between May include for wood prior pandemic, in the orders composite lower America businesses, in April China, some April saw to give year the you which which

past that our business crisis have of over key years. the learned the to improved like a I'd highlight Polyurethanes point great our and versus past differences we deal best crisis that from has the period it crisis recession, much today XX comparable XXXX significantly some business between then. global ensuing different to. Though we the is financial than note to can XXXX our that is and current Important economic

at year. this of First, we the we no beginning business longer that have our sold PO/MTBE

our China; Geismar, in kilotons increased roughly by XXX,XXX Louisiana. of sites expansions with overall in Netherlands; we've three capacity all Rotterdam, or XX% in our upstream Secondly, Caojing,

XXXX, and we've state-of-the-art importantly our our £XXX commodity scale-ups. global into portfolio increase differentiated proportional businesses, improved end Rotterdam in product ongoing to greatly in bolt-on including amounts million. the more of exposure differentiated Also, to mix the Caojing, approximately investments since reduced and overall acquisitions through and most have splitters meaningfully our and strategic This products

excessive and Lastly our exposure, we we've time drag levels entered believe inventory meaningfully tighter XXXX, in has we around, continued levels, which and high profitability levels quarters. in XXXX in Polyurethanes level this significantly crisis have and commodity of a This today inventory trough benzene. including with division resulted had lifted benzene, cost for recessionary ensuing the we that meaningfully higher EBITDA. less Though of significant

we that the over that in the decade, Keep the the $XXX recession pro trough, last trough is we've be was mind period XXXX, our cause results. effect, elimination previous EBITDA very in different the XXXX forma which investments terms each during the well will million made of current because of PO/MTBE but believe around of and above for

about ahead we quarter at the remains best. our visibility see only can Currently, into or weeks three In second four tough. summary,

down our could With more the quarter. expectation expect XX% around EBITDA than be in prior year, volumes breakeven be second we our could versus the the that

in timing in the However, the of the recovery and segments months. weeks this of and product is coming highly dependent number on speed

X. number Slide to turn Let's

in demand EBITDA demand business reported primarily quarter. of EBITDA due Our million The driven Advanced lower our million quarter industrial aerospace down such partially last Materials decline by trends the in adjusted $XX improved softer to by year's and and as $XX XX% markets, markets power. in adjusted from offset electronics in first was in volumes commodity,

While which specialty continued did the end saw X%. trends perform of our quarter. than overall declined The average, improved second China the but demand we first weak, started quarter, better the into off still segment has throughout portfolio

differentiated a As we from revenue to our one its of margins headwinds strong resilient XX% volume very of sales expect despite a coming would the products, experienced. business with see specialty core remain from

business integrating We business on track this recently months. business will on the of our our platform our and We as product opportunities Specialties leverage global into Furthermore, such commercial and areas Thermoset specialty Americas to augments to strengthen margin provide our attractive in this us high coatings, over taking close it markets. structural composites. portfolio. by the into adhesives, the This in Materials already portfolio European announced to look coming well-established our acquisition Advanced remain significantly forward and CVC Asian

we'll synergies as environment, look rate to possible. accelerate current as the business quickly In achieve expected this integration full of a and of to run the

expect to two next years. million rate achieve We of synergies $XX within approximately the a run

Advanced a in COVID-XX Materials impact will markets several core have of business of the the on our through the remainder material year.

recessionary environment EBITDA several Advanced XX%. highlighting worth Materials today our by business versus XXXX differences it However, between the is fell key when

substantially First, lower wind commodity, epoxy resin basic and is today. our to exposure market

ourselves Our specialty diverse portfolio of versus and differentiated more now XX% today significantly going around years into markets. prior with

Additionally, in our the past the business approximately recessions, of $XX of out contrast million cost taken to business. we've in

a Although today, our EBITDA business, headwinds portion in now do bigger we our versus is experience which of aerospace today significant XXXX.

less growth challenges on Advanced Despite the of out in to our of markets maintenance, applications markets the Asia CVC, will remainder will lower the versus the aerospace fixed markets help and Visibility overall in business be second such new retaining focused most impacted offset the military steady. for to value like built. than more order trends volume others will integration of offset the margin of quarter costs, year, remain XX% year I down today aircraft down low keep likely repair core EBITDA Materials as the weakness managing in improving roughly be as and business specialty weakness cost. remains be that the would point its XX% and in which a in volume across goes other of into than in partially the commercial prior in to by will certain product segment

in versus down by very the adjusted of Ethyleneamines offset Let's Performance to went in The Products solid million and maleic. the previous throughout lower last remained amines first compared were quarter. year's $XX in year, number volumes X. in turn million to quarter performance $XX segment Volume X% reported volumes EBITDA quarter. Higher Slide

Performance by expect cost material stable in to lower pricing, be not benefits costs, would repeated. margins control, $X Products million favorably that lower were raw impacted cost and roughly good

plants prices materials and locally raw unlike drop the or reminder, our seeing a in divisions, are this in material division. locally raw a much is to other sooner procured our As three

by material slow all economy. global we be Performance expect businesses, to the in Like the other Products down impacted

differences and today our period is amines out. Performance obvious is primarily and and Intermediates some pointed difference versus However, businesses. between Products that Surfactant Chemical there this be XXXX maleic significant the of that segment anhydride up we've sold should Most are today made XXXX time franchises.

regions and manufacturing Our amines much a and developed is diversified much more different markets improved niche today markets, use with across portfolio end footprint.

higher as significantly Our performance the a portion amines amines larger of are total margin portfolio well.

maleic the the Our maleic XXXX larger more is same North crashing and new coming was the housing is business into was market American when the time. and versus supply at market industry today balanced

the and Europe America Finally, personal overall Performance larger markets versus XXXX to products. less has Products exposure exposure care North construction the today a much in to and

expect construction continue the in the and in help we to over a versus coming diverse costs niche markets its However, markets to breadth we near-term portfolio years. grow serve to and industrial will niche ago high control to focused weakness years division today's is reduced the market. business, offset more this margin With of look more XX volume

across second the wind. businesses nearly strengths We partially China such North expect as in segment, weaker only in conditions markets quarter all which be pressure will of this and to American in our by offset overall certain within put European market

than result, prior year. XX% second we a be below expect EBITDA more quarter As could the

to on number move Slide Let's X.

year-over-year, down solutions. Our the Total sustainable Effects volumes adjusted year. for to leading specialty reported benefit customers grew as from quarter $XX quarter, for million but technologies prior EBITDA first volumes fairly we of flat were our demand and ecofriendly offer continue from slightly X% that the increased Textile division our the in our

some compounded mills has government by from cancellations and see mandatory April, At been India to significant by sharp volumes of we decline impacting trends It saw traffic. the textile regions and China. core a positive we've in such as and sharp our decline markets Bangladesh. due a in in in retailers who are shutdowns in order retailers to March customer experiencing But started end

be Our seen XXXX. volumes to since likely at are in levels second the not quarter

the during like and is other However, Textile recession than businesses, today our different Effects XXXX. XXXX of much

we've significantly First have strategically profitable XX removed deselected have textile about over specialty $XXX the businesses and and Also, and last years, the aligned geographically have our margin million grown been been to fixed businesses less to repositioned from higher costs margin industry. product. today's lower

XXXX chain up and the we left us gives inventory destocking trends very throughout early confidence see economies supply the some improving begin to levels, Lastly, expect once has been which for demand rebound recessions. global at that low to business, back in a in the quicker that open started past should

seasonal the usual the second quarter expected the near-term, we strength to experienced In typically is happen. not in

expect significantly quarter be second year. the prior We results lower to versus

thoughts, Douglas, the Officer, to minutes XX and Sean CFO on table. certainly He I'd concluding least best a and a of Chief wish him at few over some side sharing birthday. Before same Financial to like the at today, turns our that time happy years old turn this

Sean? So

Sean Douglas

I'm was I you. thank Peter, XX – XX. sorry,

Turning X. now to Slide

dropped $XX or EBITDA million the approximately by First quarter versus XX% quarter first XXXX. of adjusted

to erosion approximately EBITDA or polymeric $XX declined in XX%, due margin products. MDI largely adjusted divisions Our Polyurethanes million component and by

Performance due higher volumes and performance increased million margins adjusted EBITDA by divisions XX% to Our amines. approximately $XX Products and largely or

adjusted Our overall million with approximately division to flat fixed by adjusted And volumes, offset Advanced million our Effects or volumes. $X largely EBITDA divisions $X Materials EBITDA was by by costs. modestly declined down due lower Textile partially X% lower

of very polyurethane X. XX, business the $XXX On liquidity. sheet Huntsman spray sale approximately to for on robust strong with February our enjoyed XXXX, approximately billion. January foam X, $X.X completed acquisition we Surfactants Slide Huntsman And Icynene-Lapolla a Turning and XXXX, of for Chemicals producer a completed million. Intermediate balance the

liquidity leverage Huntsman of $X.X and turn. has approximately As quarters total balance ratio at billion debt three March of XX, a net approximately a of of XXXX, a

acquire for XXXX. Surfactants XXXX, payment business, the forma sale taxes customary to CVC On be and the acquisition an Pro March composites, and million from adhesives $XXX $XXX price the projected Thermoset Huntsman XX, to has and agreement to signed coatings this cash paid business Chemicals approximately adjustments. million Intermediate our for gain all Specialties pending within subject of relating on the in to closing

forma liquidity approximately $X.X March with approximately billion ratio XXXX Our leverage a net of pro XX, forma pro position turns. is debt X.X

last benefit overdue free discussed collecting the $XX pro foreign XXXX, from or March a XX% our LTM XX% cash strong forma of of XX as call. value-added our XX, in conversion approximately for As months million was flow prior approximately earnings one-time taxes,

Free quarter in anticipated when the measures quarter. first Largely response results global quarter of because a cash inventory we reduce had XXXX better projected few from of flow to did reported our was fourth to ago. proactive as for taken first than in levels conditions, slowing XXXX was we not months the big inventory of we experience as build

working our in metrics. improved Additionally, payable change net capital from accounts benefited

look of of quarter a a result to conditions and as capital, we second manage release inventory. meaningful XXXX, into economic we actions largely further softer the working As anticipate taken of

rebounds. of net degree release second million an inventory the the economy to for largely between we change During quarter, overall remainder to million. anticipate of The $XXX $XXX what XXXX the upon capital working depend will

in $XXX and $XXX in six-month now constructing to Geismar, completed quarter, current economic expenditures. have $XX delay response capital expected be global conditions, spent XX% our capital Louisiana, million we approximately expect to year MDI first $XX by the which spend In XXXX. reduced splitter is mid-XXXX. rapid includes by the This between change or to we our to in now During million at spend million on a estimated million

and was in this the still expected $XX of which last and is $XXX spent $XX spend XXXX. be approximately XXXX total around which The which spent remainder will to million approximately will year million be be million year, spent

million approximately the Huntsman. X.X $XX of to shares purchase During spent million we quarter, approximately

years for total $XXX our approximately above our well approximately repurchased of early we share outstanding when XX ago we XX% in shares XXXX, repurchases Since from million million have started. two shares we began

of Given the the crisis, for the onset time further global suspended repurchases share economic we have being.

income XX%. global rate tax that tax XX%. approximately expected of for to XX% lower adjusted XX% quarter. our due to quarter distribution effective approximately first than will expect forward the stated be our This going adjusted XX% of and was first rate We between Our annual range still the the approximately effective in is

been sheet our and In have liquidity balance summary, never stronger.

a Our position over cash liquidity years have deliver to prepared the global durable Huntsman consistently a efforts conditions. strong strong build and sheet for the well flow, free balance current proceeding

discretionary focused responsibly working with macroeconomic and developing conditions. are controlling our capital on We net alignment spend managing in

importantly, and capital are we approach Lastly, our to committed to value returning to shareholders. and balanced allocation, creating

Peter, back you. to

Peter Huntsman

Thanks Sean.

XXXX past great reflect years. company, the the a I So managing in spikes the one industry in this think cash. back past hemorrhaging I XX, the in years and and shocks with wintered, been most profound I've involved our that upon economic of the manipulation fallouts economic XXXX, oil of and gas September that's over XX XXXX team XX

chaos but quote, Shakespeare's great the around As Pass. look thinking I help, can't I taking at Too economic Shall This of place us,

what of So we March, across prices. CapEx emptied by we the cut light By our and Board, take or in orders evaluating carefully and raw every cancellations our material experiences? done more better We of prices tracked of We have our past of capacities falling the XX% terms. advantage better our facilities. of project inventories renegotiate the to manufacturing end

sure merit of carefully hiring customers and and that low freeze implemented remain a the to each increases are risk. suspended XXXX. We for sale We've credit current tracking make

reviewing and and allow the advanced world's expansion Our further Polyurethanes to of us our business. largest and obtain structure to to business, we insulation acquisition have growth. spray foam accelerated also efficiencies spray most our better downstream and foam polyurethane cost our integration recent create We're economic

will product new bring products. continue and innovative market of pipeline Our its we Materials, to Advanced to

Thermoset CVC and business on We cutting integrating costs. to our will globally simultaneously our products accelerate and while announced focus expand recently our close

our platforms integrated become corporate of and better in and over create additional end $XX shared consolidate million shared of Our and million cost we service XXXX. the other Performance plan savings. target $XX as savings projects our Advanced divisions into will we Between ongoing an other further Polyurethanes, Materials Products business to services, by

In Perhaps years the to taken the biggest and focus the changes cash us over short, these started change We've on portfolio our of a that our are steps set are projects to decisive sheet. today. company and months. we've but past generation balance is management we two past where in few in

of to clear, be me associates, wellbeing our priority safety Let is one strength and after our balance the of the sheet. maintain number our

this $XX stock buyback CapEx we are our To reducing our and mentioned costs. by million, earlier, as cutting suspending I our end, operating

We value chance shareholder grade create this will no future. the within doubt confines the further have that be to will our and profile opportunities as arise an of preserving done assuring investment

guess Huntsman can started I as in when will I that company these will only stronger even the weeks I'm we XXXX. but or confident where than am certain go markets months, coming emerge constructions, that our energy on other products and consumption, that thousands and of future. technology will lightweighting, forefront adhesives, our of coatings, textiles, economy and improve be applications transportation, will our build the

open we'll operator, line up that, the for questions. With any

Operator

is you. Please open Goldman Bob [Operator now go for question Our ahead. coming Instructions] Sachs. floor questions. Thank is first from of Koort The

Anthony Walker

through just Anthony utilization better and is parts? fixed at was EBITDA, expectation certain on are unabsorbed levels Walker and within costs? Bob. and breakeven the This embedded facilities parts trying taking to moving on price, understand as which hoping would the for levels to at get volume those such, some moving down containing you guys. I’m Thanks to of think just of I or Polyurethane idling was the you understand hoping

Peter Huntsman

the facilities. be of we No, to that MDI downstream. rate Polyurethanes be that manufacturing any our of production obviously see demand the our not as will business, At I we matching idling further look we and think plus somewhere demand percent, We'll the and XX%, Europe see those at XX% continue. around we Americas June May and and in at Asian time, our XX%, XX-ish will between facility expect the we probably that present around at

possible and the QX, that would trying again, as as at scenario I about we us look look at right the a hope to with we I put a some economic just we're last matter seen forth, slowdowns I say, And over when we visibility and in just would now in of books, so we've before the weeks of would that as visibility talk caution. days. of a breakeven be realistic orders order the XX

been something had of given the future. the first with year. better the markets call forward change more last that you'd really visibility. these cure, a and – because optimistic materially think time see a quarter more coming can we've of since And This a remember we've a granular out lack just conference were if mean, the is or haven't coming come where on public, well the that's over focus we I to something I I with vaccination internally

by to we're were quarter. you see the that culminate to If wave of more May, you calamitous end might here see second a a second

about I see get with we So are right what numbers production I now we're we're think our breakeven, now. think the what realistically matching capacities and trying that talk to see right of market we we that the MDI in

Anthony Walker

Thanks. And cash year. for flow conversion free highlighted previously then the you anticipated

in With color play could on terms flow cash free could conversion all your the changes provide you're working how Geismar basis the pro you the forma around out delay with and making? of capital, the efforts any

Sean Douglas

in flow, up $XXX of we to don't terms taxes we're towards clarity We going around earnings out land million Yes. cash not elements that venturing We how think of just end because but lion’s to you with have $XXX where of just are end there, know, this much million pay a fixed. of the that. and we Anthony, on of the at free that's give year. color gave will something the we stage see you to and the And some out share, as pensions. to quarter interest release I second obviously some look meaningful forward those inventory. we're know as I

to we CapEx, we've $XX can reduced So million. significantly by control. we're control what going a

on color of some the more some you components. give I'll

million probably for $XX $XX million around $XX around noticed, be for to will interest million. you million. to $XX paid Pensions think cash million. around probably paid year probably Cash for around $XX I restructuring be million. Taxes $XX the probably will

do all this keep together, to best normalcy, into going. XX% going to are those get we is to that so have year we that free things be we're are flow that conversion still as conversion can confident when target going cash you we I to normal. put be back target we aiming able But And that mean and anomaly. And the that here we're as deliver to an

Anthony Walker

Thanks guys.

Operator

Thank you.

Our next Aleksey coming Please question is from KeyBanc. ahead. go Yefremov of

Aleksey Yefremov

Good you. morning, Thank everyone.

Just trying segments around ballpark to $XX up all quarter. that add in I you this by had the it just sort outlook kind provided the of arrived math, Is the by high and you mind? million EBITDA in second of

Peter Huntsman

limited I But be quarter. be going upside would that too hope as wouldn't such think would to but bit but probably be to the I would a I a that people it's little off that’s when we're ballpark. have be that. frustrating table to closer to where might pessimistic, have Again, that you've it this in think far number, we around visibility me probably the on incredibly that from

Aleksey Yefremov

clarification. $XXX And X, Thank On you, Polyurethanes you of Slide downstream just million. EBITDA Peter. showed

represents XX% your of that So about EBITDA. XXXX segment

So about you how relation think on we in that show slide? to XX/XX component differentiated that that also mix the should

Peter Huntsman

as That the business $XXX and years. of of over that couple added been the last course million the the should be acquisitions to looked at made have

selling as had see been market. we incremental have being otherwise into So been an we general open I would those and MDI making, what would that to

the value those can think as and had you we we think with, adding all subjectivity. we that’s some is probably I have that achieved could like what product there's placed together. There's It's done you obviously those was. not But up that in when we been what otherwise I'd as start an – broad. have number it's Now that's that would come accurate – to market components a have numbers probably get earnings that not acquisitions. that that

Aleksey Yefremov

Peter. Okay. Thank you,

Operator

Thank you.

Please is next McCarthy coming from Research Our Partners. Vertical Kevin go ahead. of question

Kevin McCarthy

good two you Yes, question for part on a Either morning. MDI.

use in that at obviously autos what could your down were do down other you if unit recognizing in markets this back secondly, progressing then wondering in a if was that how margin so on quarter the XX% April seeing the inventory of you're April. through for through lot oil, a I crude end MDI. comment flow think look benzene to referenced XX% is on I you see the we forth? you perspective, second effects and from And

Peter Huntsman

some Yes, start but benefit most be if seeing is of a our by – going the record end of to we such of benzene It's low across that we'll Even the I a benzene we some benzene, would but inventory We second make into then just nitrile as the make buy Rotterdam. UK. a aniline globally. it the say benzene. We our aniline. stored. shipped that We channel that that second quarter, it site, globally, make in end reminder, of In cases the March, half. as European we lower by the had of of ship

some in inventory there's those of areas. so And

months that benzene fumes, – I benefit two think system. March, had or even if through literally to so end running the of at close to are that on the months we of So we we which out look benzene, plus work it'll take when by two

second sort half of impact. think benefit a be I of line bottom a that will So most

subject. line, about look of our at now, we our asked Polyurethanes. And across again, these obviously we're as and Now would I the you are seeing what but businesses are segmentation it's say these the I really fairly mean, that right accurate,

globally, XX% probably to forth down year, maybe Americas from June, to in we're XX% around In forecasting, the down, look In seeing so But XX% about as Asia. something, Board. at like in May, XX%. in XX% kind we're down looking XX%. around something That's we and but to order I XX%-ish close the think across that's urethanes the orders in previous something would over patterns say a we April, and year. improvements, of down automobile,

construction as get somewhere we we'd customers, other look orders think XX% year-over-year. being the to and talking have time markets, see I CWP, in around so down And you the June, best wood by you the and that at visibility XX%. – April And down the across to composite out looking

an elastomers, look of in April succession throughout I ago May those that by region. of improvement vary over as the at from a looking So out April again, June. businesses to year taking are similar going from would going you to see down and And to XX% most region you're again, And XX% June. place improvement to certainly

XX%, when overall just in start product that The We think the they up at manufacturing next XX%. think start are inventory. that XX%, a it companies week to in going think up there's automobile So have very pipeline. start or very here the of OEMs two, at amount we low little I

I said as we customer. for think our that can look CWP be at

So as we and throughout just in this see long an point. eternal to in April, been improvement by this got be you've orders May, I've industry that enough June, optimist this

to think we I the I in chain. supply our as there's little inventory customers, think But very speak

you're hasn't units I May. an talk running I the of have, end think Ford of visibility automobiles that the us. a at been about see be GM the month-to-month on of going That told that when again, we many But improvement exactly, be to BMW or impact to basis. how again, or will

XX consumer to what's a know a at this lot number tied of And to issues The going of sentiment XX think days that's dealer OEMs happening don't I next point. here. at the other the seem end to and to be over that's and –

improvement sorry, to on month-by-month that sort almost but can basis, long that Kevin, sort basis. of of rambling go answer, So look business-by-business, at think a segmentation, a you division-by-division I that when on was a I

going and of and improvements recovery You're similar April, June. from fairly sort May see to

Kevin McCarthy

what second question, Advanced or appreciate currently piece market is you profitability and maybe the And the then guess Materials is and to rearview the or color. margin volume Advanced remind aerospace, non-aerospace Perfect. how can compare much for would mirror, as that us how I exposed the of there to a outlook Materials? I of

Peter Huntsman

Yes. the it look of about Well, XX% XX% makes as we XX% at overall aerospace, our of makes it up up to XX% EBITDA, about volume. to our

basis, the on segment. pro profitability on the So proportionately aerospace a is higher rata

OEMs that, of Materials Boeing and is manufacturers my the of XX% so Airbus comments, said from to world. business, about of Embraer and EBITDA commercial made military, up the the in As I XX% MRO about in plane other, Advanced comes that around of XX% XX% other of and volume of

to been that just I the last as inventory based supply and more the commercial XX manufacturers think, of by again, obviously Boeing revision hours line, So going But be out what's little over coming just the we as the that we said as the as be. in that devastated, going I XX look think say last forth hours. back so think downward some schedules there's OEM, Airbus chain. the out quite sentiment don't to look they're But it's and into it's of but at we has personally, building been in I in on

and start back you manufacturing we'll line down restock be the be to those And pulling back aircraft starting coming been as mean and up product Those coming And mode, has into May of April. through. and manufacturing every assembly OEMs gradually then aircraft June. seeing I lines month will in in

Kevin McCarthy

Thanks very much and well. be

Peter Huntsman

you, Thank Kevin.

Operator

Thank you.

ahead. go Bank of coming is America. Matthew Please question of next from Our DeYoe

Matthew DeYoe

bit should EBITDA dig what if wonder we I be more kind just we little XQ talk and morning. you to as the Good a of hole, of come change of expecting rate back. orders out about how could

as were I more XQ. concerned. to general to think were XQ, far sense you guidance But is margins look XQ decremental as the makes it to if of for in should should more for we what but little differentiated I to assuming and a recovery, earnings expecting hard out Obviously a XQ, the do, know be and Polyurethanes a modest business? particularly margins, it's what be for kind surprising

Peter Huntsman

trying not to are an evasive be There many on all so on right now. I'm Matthew, variabilities answer just Well, at this.

look if I that by QX, you're of the see end going year. think, to where think going, and I at I the we're QX us look I in As

that to you're material going see think a I improvement.

And go will to we they're are we as stronger we look finished negatives easy back I XXXX, grasp and macro economy would. year but company, always are mean to As of an had and at not talking as stronger than worry the any a here. And right We anticipated and XXXX And us. of I'm economy. I about. in and the action reaction finished front easy

and grocery a use XX and I law XX or, let what and say was days or market ago would a that where San side ago against that plastic markets the me doubt well, positive disposable be are there using XX end what grocery consumer a as be so see we'll Francisco bags Bay developing people The the days of those. – bag can improvement the forth. new

Now there's a law against using multi-use grocery bags.

projection, So intend bankers I this modeling to think a look around up going are that. as markets, mean we as own with as have But I you the their forecast, as solid point. I this, to we And come speculate. lot communicate a a look little forth. their there's just such so economic at hate solid of and more we internally, to and number more own visibility

last economics in million $XXX around of round an at my million look as substantially that's as at conditions of is into around look market around financial – trough similar financial we I a I at as the better being you prepared that said see of a and Again, a we similar as go that you But go see here. from million, This crisis. this crisis. crisis turned as rapidly $XXX health recovery remarks, being $XXX look mean, sort if sort a – improvement to seeing our was we and

are I think well. So are also real there as but some there similarities, dissimilarities some

Matthew DeYoe

Okay. just want I And clarify. to

But downstream differentiated comments, going of that the around business. to $XXX volume in Aleksey’s mean definition the not higher or your $XXX mix, answered than on the would is assume I considerably an margin. differentiated Correct, million actually The You I margin cumulative what imagine above premium because million. mean, would downstream chart it's a there's I number would be EBITDA. some of be debate to EBITDA Correct? shows the XX% that the

Sean Douglas

Yes.

Let are and me you represents we've systems other and for got include does products. million forma downstream things differentiated of and houses entities, downstream strictly acquisition That only just acquired that. produce that we've not to the recent by the addition take entities, $XXX footnote, the the Icynene-Lapolla. it acquired a manufacture pro Those see can developed also that

Matthew DeYoe

Thank enough. you. Fair

Operator

Thank you.

Please from Fermium is question next of coming ahead. Frank Our Research. go Mitsch

Frank Mitsch

Good happy Sean. morning, and birthday,

Sean Douglas

Frank. you, Thank

Frank Mitsch

Did Well, sanitizer you What him? hand present of you the Peter, sort buy a get that what so did or get him question, pegs you sneakers? Sean? did obviously, high-end first

Peter Huntsman

didn't in No, of even I Red until gin his put shots Bull three He know morning. this now.

he's why still happy. that's So

Sean Douglas

toilet Frank, paper. paper, Toilet

Peter Huntsman

Yes.

Frank Mitsch

necessity April the quarter. want a first the key listen, have Was as come for to A I Do in sure. just obviously of months second sense on negative fair was back you Where EBITDA? terms Polyurethanes to Hey, to for how the there? breakeven April?

Peter Huntsman

that to was in close throughout I granular of and very scenario, get don't want to but basis, was so April sort Yes. progressively a it worse month-by-month too month. yes, the

Frank Mitsch

Okay, fair.

Peter Huntsman

the very of color that we I very see as a look end kind being Again, to second that, – fell on to at quarter, quarter a sort of but inverted off it quarter I would expect give of similar quarter. just at as way, suddenly the the first first

here don't The second want don't and quarter will so of that tell that want start be I end and as as digs the it want And out very I something market how to pessimist us poorly. to can't start we'll think to Again, fast don't – for I out I deliver. will I digging the – hole forth. much

what's so now, right that look up the with we where look I we're coming and as teams shared really our going That's forecast on as forth. So about you. with

Frank Mitsch

there in of I at late were auto late should plant March, $XXX as to see Well, starting as up guys late March, look terms mean, have I that with understood. I if $XXX back yes, recovery would saying million on and May in And that's to what think Peter, start some came XX, yes, kind you. mean, as million I of as $XXX on XQ EBITDA you and million. you we

or CapEx. eyeopening. you splitter, operating more capacity I rates little the are What obviously if broadly others just in a obviously you're pulling seeing – terms is you vacuum it are industry expecting where delay follow-up cetera. and in of are, additions the in MDI of here. the MDI could start Other by not et And in broadly bit back operating more companies in a terms what the are of on Just

Peter Huntsman

I an can industry, only think that the as operating rates I imagine.

anything operating than earlier. mentioned that But would different Those rates think that, I I industry sort operating want be rates, I would operating numbers. that. I intelligence kind rest don't assume the that April-ish rate is again, aren't fairly of us. I around to the same of of our me on I the you have QX of the And sort numbers. to as any of they're that And are tell kind gave close that those clear earlier,

same do a doing not are what press. XX, forth. and so we're And people these get additions doing months in know but to in and only what rates other doing, back six, if But necessarily canceling I and companies public them with and probably say, needless so read operating the are markets. read thing XX expansions to I forth, only that projects, of the I prudent pushing thing it's what sort

Frank Mitsch

right. Yes, seems All much. Thanks it so reasonable.

Peter Huntsman

Thanks.

Operator

Thank you.

ahead. Our Please is of P.J. go Juvekar from Citigroup. question next coming

Prashant Juvekar

Sean. Happy and Peter Sean. morning, Good Yes. birthday,

Sean Douglas

Thank you, P.J.

Prashant Juvekar

A – started guys likely good China. lot intelligence your seems isn't on the that comments, you there. of demand based to it have that but know up And recovery. the people I it plants, pretty are expecting have seems on show V-shaped China they

plant at So your China and what customers all seeing in you are that? your at and

Peter Huntsman

the look our I in of that's two business the I of share kind us. so like for Think domestic at of of XX-XX, because in Well, lion's mostly is Polyurethanes And of XX-XX focused forth, and products the on export. phases China. mean something depending versus sort business on split

was look last an domestic there. markets as and recover. and I and it domestic the at will product restocking internally inventory not how Chinese that's think on of was part call we of export of much people that their real as are that take recovery. we how But lot markets, said economic because a it Now And it's of those to we we our much uncertain of part seeing exact number were used

it's mostly I think It's we recovery. look think economic markets, in we restocking. those now more as than just that

we where in of And and a so a within I of XX% were year China, XX% close look orders as points couple percentage tracking consumption our to and that fairly it's at business ago. consumption

XX%, of is thing that business like at into downstream look our XX% something I is As the going export-oriented, footwear.

going to for segment market, domestic Chinese shoes, segment, in – of running producing you're great is that to If going part us. you're have stay growing a the

you start export XX%, XX%. looking markets, going be the to As at though that's down

wall. business hit So your And your that that's the is XX%, is export segment. of in that exportable just XX%

business, where domestic which domestic Chinese we're and years focus of to China. a couple Your on producing last in selling is China, building we've Chinese one really in we're the tried

takes service, in customer We’re China locals. place everything development, marketing, billing, product management all

actually majority well. as Chinese that vast look I is business And that the think business, quite of you domestic doing at that,

and at is Chinese over be I I real – changed we've seen We've business changed seems a urethanes saying the economic, to the forth. vitality. gone would the real what's down Chinese restocking say last is, business And country so quarter, has that least what of think from So gone has of from our versus markets in and XX% about greater on seeing Asia, the economic XX% margin, year growth X% we're depending the ago. to

all so about And Asia in all X%. is up

of As And are China the where right the with now, present it lion's we probably say again, anecdotal is say, but too that. we I'll this being at anyway. demand share as to as far look

six kind markets kind of four being behind of think we to weeks Europe. think the six three of major around four look China. to weeks being the U.S. world, And China, Europe and of around As the is behind U.S., the Europe

the of auto kind the of think lockdowns when when plants, stopped. started, You aerospace, everything

as what look we bullish so we're quite And see. at we about China,

that the see a we As would or consider think be of and we look coming to at from particular I bottom Europe, cycle, definitely the are gradual rebuilding. what we this trough we

come think start market. as are coming of As you'll think we the weeks, automotive, aerospace the trough, but pickup I see gradually forth back that weeks, not that that Americas, look and to at months, so into we in at those and products I the

strong as at of do earlier, I And to said be flywheel how in be, will yet by just have how build indicate seen. we when XX%, look think America. at the the market as that the come that end recovery the will we Again, XX%, quarter and automotive that's to North XX% back I of they rate, solid

Prashant Juvekar

Thanks. you Thank that Great. color. for detailed

Peter Huntsman

you. Thank

Operator

you. Thank

from is Please next Our Blair of Holt. ahead. Tudor, coming question Pickering, Matthew go

Matthew Blair

your Hey, higher on reduced store sound. everyone some good an QX levels. benzene to sounds and morning. margins road? it's Is to the enjoy down up benzene, is wider there cost though Glad low is even hurting maybe inventories cheap It you've in like opportunity and safe to while hear you now

Peter Huntsman

I we've I clear. think looked be at absolutely that, again, want to

of We of as April. the beginning buying are

going benzene. your But again, I think the be middle By you of time the low move the we’re time cost that start benefit economic inventory, that. it to through very by June. end to it's buying the June, buy see of you April, you in and of

commodities. a XX in Now When ago, XX time where barrel benzene a invest learned years do crude month goes I from for here? the I first never at years, past $XX saw in this oil lesson

thought thought can and a go I a about down going think next barrel. oil, lower I $XX much the on negative crude barrel? $XX crude how I long day, And it oil went than

the the heavy on the of some those level, the and to at refining the consumer side world, production a think patterns, of I cracker, the of that the number the light. people toluene, might an chemical refining but from byproduct ethylene to improving we we're a demand, in look shifting that benzene, driving xylene – consumption, light are heavy crude slate slate production, of economics on on versus today's some in aromatic pre-purchasing benzene,

satisfied if part not the just I for that if we're of add up, better satisfied. probably this side mean, it be well all probably the benzene very on year, to going tells well that I me

I pull in sure want natural to a that tie fairly benzene, that moves through our it's about the locked on look that's So that regular a up we too remind would at I'm a basis. on we But look side that with North pricing of raw business, not have of XX% at to that again, material gas. necessarily of capital. as our customers lot something our you Polyurethanes And that place that's we we of commodity with American just

I'm sure into not really – nothing not that that some I So of business, we're into getting that financial the some absolutely of hedging instruments running now about. we're know – getting we that

Matthew Blair

leave I'll it there. the to Thanks color.

Operator

Thank you.

next Jefferies. Alexander go ahead. Our from coming is of Please question Laurence

Laurence Alexander

to stable. various quickly you've expected guess so fairly things the I the ask deck very to covered, in most the I slide have in been margins businesses – be comments, wanted where are and the of just your highlighted

to much up, those driven roll round. opposed you roughly is by having how in volumes volatile swinging sort If the your all the as business of stable but of margin, spread of

Peter Huntsman

Sean, looking say what that? would you at

Sean Douglas

to good Laurence, XX – I the question. think that portfolio. go Look, Well, you

We XX% stable of business. Advanced our is about Materials, talk business. which pretty got You've a urethanes much margin

XX% to stable. XX%. looking That's You're at

number volume. wild there. go is But portfolio. And you around would a out volume stability You to you say we stable the into I'm to at there. there. XX% issue the get and there, market, just a got volume margins somewhere XX% Products, I face percentage drill say of Average of looking that just Performance is textiles, then but of high I'm portfolio, It's pretty pretty together, margin. going are throwing That's in you're the all probably stable today's a

Peter Huntsman

we're resiliency. give an Yes. I'm wanted seeing margins. if erosion And of In call, pleased to preparation quite this color, the really to I with

the in Something last recession. I see didn't

crushed with more got was and suspected the tilted than even margins. commodity think at And volume far I we to our time. portfolio with we

as is out pricing not we're forth. start push see we’re the volume the into of XX% aerospace XX%, XX% so you of coming there a here, battle is this to going to lot having market, necessarily and the drill. and CWP back to us, automotive a so battle For and of And and be here through

Laurence Alexander

changed current what smaller acquisitions? then of pipeline environment looks has kind bolt-on urethane of like the And terms in the

Peter Huntsman

I – separation, still and mean, think that I of a now, looked at at is transactions transactions. think that I continue look to we've number right there a

from gulf like That's selling are on side think that think what buying the a be worth there's something the side. between still and I assets to people think expected this. from I

into. getting been, going what buying, look accomplished, what seller look to to what look as So the I've buyers And say, always I'm I'm look I've to I've yes, want done. the what where always forward

a profile I that come to a going macro we're little And together more of these next Again, right see you'll probably to and start that the over job, be. like bit. big get of the to in things start think having to the we economy until of construction, numbers autos, course pandemic those two that, as said quarter, little see some visibility and the the we are now, where

I think going capital preservation be number to is priority. continue to our one

Laurence Alexander

Thank you.

Operator

Thank you.

Our next go Wells Mike question ahead. is of Fargo. coming from Please Sison

Michael Sison

Sean. Happy birthday, guys. Hi. Good morning,

Just question. one you to margins term, do come or think does absolute quick back? get EBITDA think Polyurethanes, should time, demand hopefully longer what – comes over when you when back, if at about profitability volume Peter,

Peter Huntsman

consistent. sure and back, have in is that urethanes as reliability, Well, we a can we I of and for consistency our want think again, the business, result comes is volume us, that what nirvana reliability operations financial there making that

use at our at at XXXX look look QX MDI I was and last year at XX%, year, I end this and downstream today, at QX if margin our XXXX XX% margin So XX%. our

think So downstream we've I consistent. – got those I margins mean, that

need to losing come is customers. will is do. we the And to keep We're losing the and I that. what think we make applications. first going to The volume sure not foremost, back. not going We're that volume volume do

continue and to going that's our we new continue margin and to to has forth. EBITDA XX% going get a so we that that. that and into business, downstream But continue a to you headway can make to quarter-by-quarter, think to be high if you see that consistently hope applications –I that's business build get continue We I priority and

Michael Sison

you. Thank

Operator

you. Thank

from ahead. Alembic Please Our next question Ahmed of is coming Hassan Global. go

Hassan Ahmed

to Peter, happy Good you morning, Sean. birthday and

Sean Douglas

Hassan. Thanks,

Hassan Ahmed

of Just time. one a in quick the interest

really of us like. the out and terms good slide sort downturns we showing of the put a portfolio guys You kind sort where of in relative today of are to past

of nat I it one now I things, last a are a in side bit in to to as and things? Polyurethane positioning side dealing derivative guess prices as yesteryears nat portfolio guys oil extreme further prices. and crude Polyurethane volatility acute. have of early crude both oil decade, guys of as the gas of it this you was How sort seems be part there more particularly on sort downstream feeling Is of relative about price gas on well with the you and the sort in volatility the this but energy the think of gone particularly derivative the

Peter Huntsman

excellent Well, question. that's an Hassan,

the and we purchasers a were utility think I gallons forth. months down, of at raw tracking and the propylene were we think commodity material our you it's And I consumption, million year. so at Today pricing, something. we and as ethylene look lot and that we benzene, about largest drop single buy and where mean ethane is XXX just I which ago, we or maybe here more pricing probably way or costs portfolio butane look then chemicals our a overall couple

our if internally. market, of to – and we benzene MDI, we're saying our has track a Yantai by suppose we some it's coal raw yes, being a not benzene ago. and all of know been there, materials, Materials as carefully. would couple essentially of in especially have quarters into divisions, raw in volumetrically, they're Our like very it's if into don't – you any something looking and But I I position benzene. benzene we're other look start Advanced volatility competitors benzene producing whipsawed our at material, competitors And our we not just of of just and that

of I starts what imagine – has Everybody won't a within be, leader I the price. MDI same economics benzene, competitors lagger between same but kind is cost XX% Everyone are it's own XX% much their they the that has of top for of are like XX%, of don't we're the benzene say the the of XX%, kind I and industry, how technology, the producers. our not. the ones not the that the producing have would know and would all of X% only at but and all that

materials going with I say to but And brush that aren't sure us it's don't and impede any off than important, so, raw again, want to I'm more somebody else. not

then real that. has of managing you side than are how the of impact volumes that the that physical and question the rather working so And the capital pricing is

Hassan Ahmed

much. helpful Very Peter. you Thank so

Peter Huntsman

Thank you.

Operator

Thank you.

SunTrust. of Please Sheehan Jim from ahead. coming is question next Our go

James Sheehan

the do after with a move for to efficiency price morning. Is the lower Good you talk and likely And proportion up? integrate XX%. your numbers that hold energy how Could it it to is business oil consists environment? still Thanks. spray moves about up foam also demand of Polyurethanes, you it's higher? expect portfolio Icynene that around you differentiated of that When regarding

Peter Huntsman

you of Well, I and look foam mean, at so spray at as at we on business, going as forth that and $XX we million, look economic the forward. sort around of kind synergies kind look our performance XXXX of

on want the of I to couple things. A think lay groundwork I here. track. that just we're

EBITDA. well we're track, of in we get As a perhaps even of that a ahead sort I look at that, on think to little seeing business track that $XXX of million

our term, residential near-term. people is a that look this about growing and this XX% business Now of energy we've foam, are are and doubt drop states more the that as the segment and insulation in orders seen a more conservation XX%, longer half of – and no on But the on business construction mandating spray new building at we don't near-term codes.

a unique lobbying building chemical is and tougher which out for building Here's company exactly situation codes, a doing. where we're is tougher what standards what

a I around conservation. focus as continue see to longer you're term, we that So think to going look energy

all just of in and especially look so and by there's forth, utility of where North lot great it's oil. last a the utility cooling on a of raw America hasn't on on gas. and a that's based natural gas really moved those that decade. or costs heating are a As people Europe, in building the are taxation deal dependent Most lot a crude you price at material natural not – That and costs large

think to for energy still going that I you're conservation. see push

to a being going as to comes this Taiwan, will on able second bottles, what year as doing to the continue increasing growth industry. to I we're say, longer that that in place of think growth term that conserving term in be billion as X you're story we a want equivalency taking bottles market And It’s the it's told. insulation be and consume great of plant PET see that's we I upwards PET X.X that very an make we that and XXXX And think longer aggressively you billion a to one will of COX. be to go because there. see lot through

James Sheehan

a Peter. Thanks lot,

Operator

Mike Your of Securities. next question go is Harrison Seaport ahead. Please coming from Global

Michael Harrison

Good Hi. morning.

in a Within ethyleneamines? can on color see what in give bit in amines the Products more you Performance competitive any view business? was the driving the performance And business, environment improvement when strength could little we the on some maybe

Peter Huntsman

going another that probably quarter. lot fairly continue a the to the gas Gas beginning, that at particularly that's improvement for but wind. seen and is be see China. wind going in throughout say strong we I story. think for to wind is that speaking, demand decent, that treating, a the we'll relatively In first say in be fairly first would treating. and the I I of to that saw we've

be in those I a that headwinds by the falloff that. crude falloff have. to We're that platform But and in of think some seeing in think Products a of was that business is it's see gas we a going large treating same on demand and to going it side I because real of QX prices. Performance competitive

it's to first And strong business. continue very that I have the reach, demonstration I as great a of end marketing to how going be, think that is global quarter and We global think a to is. division strong

Michael Harrison

much. Thanks very

Operator

you. Thank

next Please is Our go coming UBS. question Roberts from ahead. of John

John Roberts

happy Thank well you, as and Sean. birthday

Sean Douglas

Thanks.

John Roberts

eventually business as downturn, I consolidation, chemical textile might the end we this as the think past. textile with of out characterized business in path often a think exit to your merging has non-core the do And in a up area? you been

Peter Huntsman

that discussions probably that John, room saying would comes taking is place. is the there for in it's that not a the poised. I midst of again, But you nothing's fact a The industry. I'm that that of consolidation I good we'll tells question. business think were If And see. in if But comment, we think say about, such I comment. no merger, no

we a PPE we're the have opportunities to and we end the we product, and the as competitors out that of our we that area, see here, that where have real I to going think next grow opportunity the that pipeline XX business. excel over amongst think look I in the the months will

the also that real growth in think of fibers end some I that going business. synthetic we're see to

it now As put raw business. and fiber lower think put opportunities going you that see the it – and give synthetic product side lower will pressure cotton over innovations the will into of on rise a and to end material I crude and on probably

for cash, a divisions business. generates core generates me any look, So positive is that EBITDA

last recession have we when comparison were is that was going much ours. – Effects, last look the to as wonderful in And in well. I that it recession. business making now. that to the That's a at there. Textile losing you say And continue very to core at business it's where of that the business a today EBITDA It's they to phenomenal tremendous and as turnaround credit team that

It's amount business. great got a it's now, upside. a right great So of

the And in were think first quarter, think a recovery I call when ago, I about in that our business. we say, I just would talking a quarterly quarter back on

time first pretty mean, quarter-on-quarter, that textile coming we growth the beaten had of ashes for year-on-year been a the or been badly sort were it XXXX. had in – think a that of in in was out seeing business. of up so, I year industry literally that I

I think that anyway, improve. So continue to business will

John Roberts

Thank you.

Peter Huntsman

hour, possible. to questions Operator, take of that to as I more make and that are also stayed I and know don't try the with Why some top we appreciate those to question chemical right really competition other people I usually the reporting, some We have end as the want here? companies try address we've one sure that got we at on. many of that now

Operator

Certainly.

Our be Capital ahead. coming Please go of today Markets. last Arun Viswanathan question from RBC will

Arun Viswanathan

on around, doing morning. everything Thanks. COVID. and you're for thanks Thanks Great. Good for sticking

just differentiated wanted side. real I to guess ask I on So the yes, quickly

from be And substitution future? would from to getting had how any you last in so, the forward, margins if the downstream business? years. your in away look – would guess, that going impact maybe that you when You that, expect Thanks. value-added push a I indication customers made grow would that materials, your guys there's you any more guess couple at I the are

Peter Huntsman

No.

Arun, think I great question.

aerospace. place I tilt seeing are I think just we're in industry, headwinds in facing lightweighting to lighter, the aerospace, going we're of no going in that's to the contrary, in to they're industry in lightweighting be flying the taking doubt be yes, But and longer they're efficient. Automobiles, – going term, look planes and longer, the more so automobiles to the at opposite. be a and the If the forth.

us place and and opportunity. excellent goes place and taking I out of hope about anything our those else's materials that else's product that takes accelerate. applications. insulation, half growth it downstream replacing someone place would takes of And going technology and GDP an someone would our that building have and coatings from product into that we I if downstream in and contrary, to half with the think growth, businesses adhesives What's of About

as downstream, And look not hearing our anything we from this at I'm opportunity customers.

of I that we're continue from think look, downstream feed corporate that excellent growth. in position point to view, to a an

balance business. not starve sheet, we CapEx a slowing of to our And that we're projects, on while cash We this some balance sheet. got going are have strong

We to to continue feed are going that.

the We have sheet. balance

so. to to do cash be the have able We

to And pushing perhaps at new a horns, going into be those time those and in aggressively to when be others applications. are new their markets going pulling out we're

balance or certainly hope GDP people, overall accelerating business, to we all disproportionate why sheet, the No that. So to have that in technology if beyond downstream able particular, our to be so, growing growth our in month anything the we're I business the that. do coming shouldn't. reason product, and We

Arun Viswanathan

Thanks. Great.

Peter Huntsman

Thank you.

Peter Huntsman

time and salutations you us. to if very please day. the wish you of questions send thank would any Douglas, to to have taking that the for feel you do thank or join to much throughout And Operator, all Sean free any

So thank much. you very

Operator

your for concludes participation. event. and thank you today's Ladies This gentlemen,

your a disconnect at this may log You day. webcast And off have time. wonderful lines or the

Huntsman (HUN) 1 May 202020 Q1 Earnings call transcript