The results confirm what many chemical investors have long feared: Rising costs for crude oil, natural gas and other feedstocks cannot be passed on to customers indefinitely.
Huntsman’s larger rivals, Dow Chemical and DuPont, for the most part were able to pass on higher costs to their customers given their scale, though analysts were skeptical that the trend could continue.
Huntsman’s cost of goods sold rose 24 percent from a year earlier to $2.43 billion in the second quarter.
While the company was able to boost prices for titanium dioxide, a key paint pigment, and chemicals used to make pesticides and cosmetics, demand for Spandex was eroded by price increases.
“Given the sluggish global economic recovery, I am very pleased with the improving results of this past quarter,” Chief Executive Peter Huntsman said in a statement.
“We are optimistic about the second half of the year as underlying trends for our major businesses continue to improve.”
For the second quarter, the company reported net income of $114 million, or 47 cents per share, unchanged from a year earlier.
Excluding restructuring costs and one-time items, the company earned 48 cents per share. By that measure, analysts expected 49 cents, according to Thomson Reuters I/B/E/S.
Revenue rose 25 percent to $2.93 billion. Analysts expected $2.77 billion.
Jon Huntsman, former US envoy to China and son of Huntsman Corp’s founder, is a Republican presidential candidate. He is also a former company executive.
