Huntsman Corporation (NYSE:HUN) Q4 2018 Earnings Conference Call Transcript
Feb 12, 2019 • 10:00 am ET
Good day, and welcome everyone to the Q4 2018 Huntsman Corporation Earnings Conference Call. My name is Matthew, and I will be your operator for today. At this time, all participants are in listen-only mode. We will conduct a question-and-answer session towards the end of this conference. (Operator Instructions) As a reminder, this call is being recorded for replay purposes.
And I would like to turn the call over to Ivan Marcuse. Please go ahead.
Ivan M. Marcuse
Thank you, Matthew, and good morning, everyone. I am Ivan Marcuse, Huntsman Corporation's Vice President of Investor Relations. Welcome to Huntsman's fourth quarter 2018 earnings call. Joining us on the call today are Peter Huntsman, Chairman, President and CEO; Sean Douglas, Executive Vice President and CFO; and Tony Hankins, President, Polyurethanes.
This morning, before the market opened, we released our earnings for the fourth quarter 2018 via press release and posted it to our website on huntsman.com. We also posted a set of slides on our website which we will use on the call this morning while presenting our results.
During this call, you may make -- we may make statements about our projections or expectations for the future. All such statements are forward-looking statements, and while they reflect our current expectations, they involve risk and uncertainties and are not guarantees of future performance. You should review our filings with the SEC for more information regarding the factors that could cause actual results to differ materially from these projections or expectations. We do not plan on publicly updating or revising any forward-looking statements during the quarter.
We will also refer to non-GAAP financial measures such as adjusted EBITDA, adjusted net income or loss and free cash flow. You can find reconciliations to the most directly comparable GAAP financial measures in our earnings release, which has been posted to our website at huntsman.com.
In our earnings release this morning, we reported fourth quarter 2018 revenue of $2.2 billion, adjusted EBITDA of $275 million and adjusted earnings of $0.52 per diluted share.
I'll now turn the call over to Peter Huntsman, our Chairman, President and CEO.
Peter R. Huntsman
Thank you very much, Ivan. Good morning, everyone. Appreciate you taking the time to join us this morning. Let's turn to slide number 3. Adjusted EBITDA for our Polyurethanes division for the fourth quarter was $169 million versus $294 million a year ago. Our MDI Urethanes business, which includes our MDI, Polyols, Propylene oxide and formulated systems businesses recorded adjusted EBITDA of $175 million. This compares with $291 million a year ago and $242 million for the previous quarter.
As a reminder, in the fourth quarter last year, we temporarily experienced exceptionally high margins in the component end of our Urethanes portfolio. That short-term spike in margins of roughly $85 million of EBITDA is now gone. As we explained in our previous quarter's call, we saw destocking and softer demand in certain market segments and we saw softer component MDI prices. Nevertheless, we grew our overall MDI volumes by 5% and our