Huntsman (HUN) 6 Aug 242024 Q2 Earnings call transcript

Hello, and welcome to the Huntsman Corporation Second Quarter 2024 Earnings Call and Conference. [Operator Instructions] It's now my pleasure to turn the call over to Ivan Marcuse, Vice President, Investor Relations and Corporate Development. Please go ahead, Ivan.

Thank you, Kevin, and good morning, everyone. Welcome to Huntsman's Second Quarter 2024 Earnings Call.

call Phil Peter and Lister, the and Chairman, CFO. on and President; Executive us today Huntsman, are CEO Joining Vice President Last the X, August night, XXXX on U.S. after second released to posted website, huntsman.com. we markets release our equity of via press quarter earnings closed, XXXX for our and the

the We a will question-and-answer opening some comments slides and we set of and the the commentary discussing remainder provide also quarter Huntsman on for will move call. posted then session to second our of detailed website. the Peter shortly,

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

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

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

can earnings You been and which to the call the to comparable most Peter now our over President. posted huntsman.com. I'll website turn release, our at has in measures to find GAAP financial CEO directly Huntsman, reconciliations our the Chairman,

opening in some very rather prepare precarious thank thank us morning the you myself I and I these much, calls. usually find a Ivan, this place you all afternoon for morning. joining as before this comments

past of trillions presidential euros have consumer election. in upcoming for been out material triggering been potential confidence yens, last data the XX raw hours and more the been in hours, trading, the Middle over wiped for the times swords the East dollars, reforecasted RMB and rattling polling Over have has of volatility, massive few

quite All most adjustments, quarters of events margins seem oversupply, industry being inventory these Asian-based after said, recent massive tidal plummeting in the of calm. X chemical of the and wave that

ongoing as for years ahead been are have that initiatives the paying X off stayed have inflation. we cost Our past of

delivered operations quarter. $XX of generation focus our over million the flow second cash from cash Our on in

call, This we We outlined plans respectively. took and entire quarter-over-quarter in year-over-year volume place X%, and business previous projected up able the X% earn improvement by the to and increase from as were previous across we were our what our margins call. volumes earnings

and remain I policy have inventory happen improve. of industrialization and our to clear being While below businesses Huntsman picture fourth Europe's out aerospace, successful of resurgence past supply will the chemical drop of a for of construction, and commercial Asia. the second until for believe to be events improvement We The too concerned excess half timing that fully of decrease. Presently, year. residential catalyst third have the seemed flattish current quarter. a demand. infrastructure, and That construction capacity likelihood be levels. regarding continue quarter early second time, continue low, to single few interest The the would remains and elastomers highly with rates I present of the the the not patterns power largest flowing a to the order rate This increased chain margin weeks quarter. said, cautious simply the in it's

cash stay priority. management on will focused and We cost is our

up With that, any line let's open the questions. for

from is coming first Instructions] Our Michael from question Sison [Operator Wells Fargo.

Peter. there, quarter Nice

that operating potentially quarter, cusp at you rates, noted were of industry think MDI we of I getting pricing. better the terms In last

half? of July at into think the now that in in I as mid-XXs. and on you operating going that's the head shape thoughts are second where the rates up you think -- we're how rest said how to Any we

that going along weak few flat second percentage that the so basically, say, Asia in the but the we're the number maybe mid-XXs because we real say in time. on few but stayed we that data seen I and on in reliable that's Americas, probably in Probably mid-XXs stronger. think a the drop few were I transmitted of not somewhat It's I'd points we're right trending the perhaps there's into a still a mid-XXs lot probably quarter, in the since slowly. Europe. and quarter, now ever tightening first would Yes. Overall, of second quarter. in percentage say I second in squishy points probably a in a points direction, have probably think I'd moving

longer driver you polyurethanes the to think Got did back lot the -- Huntsman. time? term, had where that there important it. you've EBITDA And over can thoughts event if big mention demand in think the savings Any you a hopefully earnings of in for demand most it's you get construction improvement cost an resurges is where

board. basic bit if that we've I have construction, looking to polyurethanes seen the or normalized little X. certainly given see get year believe China growth in we're -- a That upper that I X require, that with than take place things will will the see into stronger I that think, across we back margins last mid-teens at to to mid the

industrial to least back. sort in that they take then start industrial back to come I be a to of basis, moving kind economy place. And tourist Europe basic to get right in to housing need at things economy. a see some that low feel and of is percentage have rate the on need element of recovery growth phase which We'll traction from an Those We a X U.S., see an some remember now.

margin mid-teens I think back plus you of that Europeans see sort basis. into

coming is JPMorgan. The Jeff next Zekauskas from question from

X% were X%. Your up or volumes

were XX%. down that? about Why is inventories Your

to up recover some we tried commodity polymeric announced did insulation, some on that as We sides. X to of I give as a the manage think X certainly did we've have try ever, to we the that year around have a can. carefully plan we wood, we ago think ago of some pricing to cash volumes as larger, discipline. our I months of and through volumes pricing particularly don't lost. trying demonstrate more some We but and lost composite to hold

industrial of that place took so applications lot elastomers, in also saw forth. deinventory a We and

gotten So that some we the and place of seen place. applications regrowth some lot taking deinventory seen have those taking of some of volume We've a back. we've in

a think capital around it's and I So supply, demand just discipline production.

And is Jeff, just the to on numbers, volume down correct. overall, in X% our inventory be

inventory DIO that's right we Peter If on you basis that now. that real a have as levels focus just on calculate that XX%. about And says, our with a

think on balance. capital Do use to of working cash a be a benefit you this your or will year cash

the come going Yes, that's I revenues Jeff, think, quarter. to in down to final

pretty inventories our control we'll well. think I

with flow level general, got offset get this we of cash to year quarter year. receivables as and those said the any in it's $XXX activity in we year-on-year we our payables outside see and versus focus. as last capital, come just will the movement And think X to we of X end and free probably that that's about prepared of to think working going down quarter I see that the million of we remarks, benefits in in I

orders giving last this note better that in versus bit in we're addition, seeing year will I lack and of a predictability and us little demand is supply the year deinventory forth. so just

Citi. Patrick Cunningham is from from next Our question coming today

improvement EBITDA out quarter? discrete we volumes. headwinds think want if guide the margin How particular is $XX be might and So any in there than maybe flattish should despite million calling stronger to the relatively variable about throughout million are regions for $XX call stable polyurethanes you And quarter-on-quarter others? to that

into joint we're there. give taking quarter. venture now around Chinese of and just be the to have pricing bit mostly a some some some bit it's in that that got And momentum growth rebuild inventory and be in restart third each be little I of to be think mean, a flat. coming to I place that propylene largely of see takes, oxide the online. Performance Rotterdam offsetting going to an third that's we will experienced there think the will to on I in quarter. some our volume and outage back headwinds which facility in and seasonality little We'll the we going hope facility we We've other starting Products see continues

prepared takes, my going So flattish. give said pretty I yes, probably I to and be think a in lot as it's remarks, of

item One bridge polyurethanes QX QX. for to from the Patrick, on consider, to

have in the between the to quarter. turnaround build got towards quarter, us reverse will aim and a fourth EBITDA, million out. which $X an will will that's inventory fourth back We in the probably some a And We've X. inventory end on $XX onetime necessitate which quarter will reverse that give out of will million, benefit which build,

have any balance Or think Understood. Advanced if of Materials, on then with mostly we structural of how mix for you the And for would down mix XX% Very year the helpful. there about areas any helpful. Were be impacts? that it pressure? price was this And pricing should detail year-on-year

very of trends the by to continue a played of end recovery aerospace. virtually very be and we're solid, is are business. some strong reliable -- and be of supply very the Materials, issues gradual there seeing that very Advanced think that all been aerospace, Demand and in I consistent gradual doing continue despite mix. in to with large, But it's

Your next question Stanley. coming Morgan from from is Andrews Vincent

color was prepared your could you're actually interest a wondering operating environment made would lower so little that a you improve your in remarks, that you in bit. I Peter, Europe. not just sure comment rates, in if

No.

out came bit that a backwards. little -- meant I maybe Well, Okay.

line, think it think believe interest as think just to I impact will I the don't commercial the that the to that bottom forth. in it's States. going interest and are material as Europe. I will welcome material but [indiscernible] be be going housing, construction so particularly impact rates United in be will do we certainly construction it American rates lower North that nearly to Europe, I lower don't

you Or U.S. there that's building else just the is in exposure of versus something being that for Europe? and causing that... larger a And function construction your to is

look so the it are typical housing available, as how multifamily, data. to consumer think things are the could we track housing very I And homes strong and rebounds, forth. many very and not depending it's how the at on construction It of many a rate and believe sudden going optimism. we we a And I and rebound. through cuts The on gradual U.S. overall rebounded. be -- at be go inventory when X Again, homes in market, look let's single-family Yes.

exposure, it's very with general, For XX% aligned but North North with about America, it's commercial a Europe, of And America, different, is Europe greater into XX%, in construction, says. proportion is balanced, as residential. whereas about sales Peter relatively construction it's in but a

question Research. from Frank coming is today from Next Mitsch Premium

easy that's faced quarter in a up second in of very year-over-year XQ 'XX will think get been about the not another faces price one and to And the comp of XQ beyond? progression negative comp. How mix side of a on in neutral in success. obviously and clearly, back if take volumes should get to ledger, was it the easy we the came the what Peter, the positive? to But price/mix and priorities it

of a gradual improvement next of combination it's the selling, we're Well, is that event, take taking to capacity course place to economic those X. in over a remain short demand combination going utilization, business continue the the quarters. of the of going to bullish cataclysmic products we're overall I of as that couple a and of the mix And see

built in, Frank. price I mostly was think mix

X you the was relatively to quarter X quarter sequential If neutral. that general, look at in

XQ up that those nicely Yes. right. Polyurethanes that of volumes then Does North XQ continue XX% did again polyurethane in North over America nicely both XQ, up. of that quarters. America? And in level up in improvement That's I in in here pick

business. to year starting a we a Again, we're earlier, basing Most think where defend likely, low you that what ago. will kind share as very basis and win continue continue on back to But to our I market no, were we'll said yes. of we

from Next Begleiter Deutsche question today is coming Bank. from David

if the a holds, the half oil could of in drop in there your prices benefit recent the be back to earnings tailwind Peter, year?

up in we refining But seen down I'd where and prices like prices around would -- the case. some seeing we've cases. be crude areas are that going benzene think to coming

down $X.XX-ish the today, around look in to Now quarter. It second it up today's $X. as benzenes at I was

by yes, prices are but So I that of stability falling at from mean, crude oil. prices, But and some prices not I think you chlorine areas that I seemingly much look published look detached those these caustic, published tailwind. as crude of large, us give give the should seeing in somewhat at around crazy, prices certain are I some I some and

at For for David, the August. benzene, settled it $X.XX contract

the spot So still it to relative contract price. We high pay tend to was relatively the price.

benzene how moves it really settles all it's beyond. August and during then it for the us about So September of how for month and

mix in sizable in pick about you earnings could just as grand Peter, be Materials, ] segment followed and back a the up? in And as think raw Advanced this bridge the the when [ 'XX, get issues and some issues good. to Very uplift of material volumes

Should certainly hope so.

I a areas. But tailwind that going some to improvement for year some all as initiatives, change, cost market. as at ought barring the again, XXXX, the be we R&D the into Yes, in into coming look major initiatives think need get of we're that, we again, that X it the of to be I of pricing, believe some us. will

coming Research is Seaport Mike question Next Partners. from Harrison from

little out Products. could bit you in talk Performance you that the called hoping a Was that about dynamics competitive

And there? into You do expect said exactly those the negative What you persist second to that on going negatively impacted that half? impact margins. is

is Yes. groupings our from major and products, be Well, [indiscernible], in get business would and product into performance there. subproduct geographies our groupings and amines X you business. really our maleic That then

Our up quite raw Again, to continues this holding forth business, up material the America. amines well. so is going well. resin it into in polyester and be quite unsaturated hold Maleic would North

the around Europe. also Maleic going believe sort protection, has specifically comparison maleic performance low maleic to I the XX% we're into in a think whereas has Europe, numbers. U.S. about wave of where duties in that's XX%, U.S. Asian-based is and Where I products Europe was hit -- maleic. Europe, we're it's tidal seeing hardest of getting used in the duty a I a very wording the mid-single-digit

industrial for Europe and the seeing policy really So we again, that forth, so of Performance greatest back for that to that getting look in that's area we're Products. competition

Advanced like some could in on this And looks then is pipeline acquisition point? we what focus at activity And Materials expect it M&A. this Curious year? really area right. significant sounds yet becoming All for Materials, like the Advanced come acquisition this to a

right probably pipeline Well, bit. we're think, mean hold a to bringing getting I assets board, at looking going that multiyear owned end a the I are assets lot equity now -- are of the of where there's I a that there's market. think are picking the private that to of these up be of a across to by kind lot companies,

and were be try do purposes. already polyurethanes, really Materials, in largest we buy maleic Having American, were target-rich in so said MDI to If products Performance an the that, Advanced for North able a anhydride both makes that see in go we and to Materials forth. that antitrust integration out and that capacity, Advanced is if vertical unique we it example, to look opportunity for we horizontal environment. wouldn't at

that strong is of we're a have business in all our the high-teens remains very want in This sort that, and profile we at of of that a you core XX-ish we business a in look seeing to business to is I'd earnings want of Europe Europe. of everything business. to I EBITDA the extremely business. headwinds -- where And remind business the rest sort that If think margin margin spite the

we I I be to it's those want So think target-rich environment, we as to a a continue to look at company, where point of whether and evolve materials. advanced all would of as

on out of want there setting what we're what the and loosening buy pricing there, not means impact be said integration go it that because these to targets and Now a as far of actually balance the are sheet. around going as all to up mean lot I value has the to discipline out one and barriers having that emphasize we're that the that do just that, does up it

remain in to So disciplined that as going well. pricing we're very

today from is Salvator from America. Tiano of question Bank coming Next

much force in First, wanted of PO/MTBE release to too think actually you're higher because the taking pointing majeure like into bit a I little QX. or have it when guidance I would the it earnings looks turnaround, than polyurethanes would you're actually, like-for-like, QX -- account

in is I June? price And and U.S. Freeport how essentially as May the big we because I'm back is this Freeport it the comes online. guess and Is sustainable And margin margin expansion of expansion wondering what the increase saw also, that? outage driving

Yes, Sal.

force a in got So we've that We've Rotterdam PO/MTBE correct majeure. turnaround. you're got the

as I September, inventory from onetime is intended think a PU got we're end earlier to we've turnaround benefit increase, price margins go driven quarter. volume. ahead variable tend quarter getting got what of we we've to October. States said of X, of through quarter you also But in improve build our Americas the with well, an little as when indicate, towards in bit a that some the benefits we Any be unit which compare traction X a pricing as in should you the United by

are X North pluses plus America the and to gave really it's So quarter minuses we bridge quarter X. earlier to the those that

And in that guess, bit that but business I by outlook what's as you composite assume highlighted. there OEM, said you adhesives little you a and that this business? spaces outlook also aerospace about your the versus Can little in a much can the you the color there is driven adhesives provide applications I Okay. more would difference, better Because talk both bit year. for about the Advanced is Materials also

Yes, Sal.

our Power there's little business us Advanced Coatings The overall drove our So in mix Industrial Material, mean Infrastructure business, margin what a Automotive Coatings Infrastructure business, Materials, from highlighted X I Infrastructure to we business. I down lower think our a business that Aerospace, to business tends elements Coatings combination. and was our be price Advanced

lot of course that this putting of Adhesives but going And XXXX. applications I composite expect pre-pandemic said we of growth we've a sides slower course where should aerospace. grown during the double heart, the that pretty of some us wide-body has that's aerospace think we're offset year. particular, more to in for terms given during it's into into the In And of the the digit to return interior we've seen us levels the much aircraft. it's on

question coming from next Spector today is from Our Josh UBS.

abnormal, spending pricing. just your XQ stable base seasonality why I necessarily Should moving that of there maybe be expect normal you're the we typically out things our expect? closer seeing parts or to to some call and would to you specific in are thinking here be polyurethanes some about that around say a number, and quarter? in but thoughts seasonality you to ask not wanted you be around fourth early to when about case would versus Would what it talked

supply demand is great steady. yes, chain. solely guess Josh. been That's normal good There's year last that this fairly any, and that compared here to so there pockets great to been I growing couple and inventory be It's question. lot year, a My not not to Well, they're that steady, the would been exception say probably the I as I'm that years, a hasn't not with of pretty anecdotally deal. fairly last in and base as of of seasonality the suspect seeing just ought forth. has on

sitting capital quarter of to you're of the take year, a seasonality. fourth working lot seasonally, certain at end and and typically, customers geographic at the on will the improve coupled with the end opportunity their company that deplete the But in inventories if of and of areas inventory that

will about, that be probably Christmas a there and of slowdown. from Year's XXX% a of chance New will come So certainty point a seasonal view,

so of As there of forth? That the feel like in right and doesn't system a inventory be lot far massive there's drawdown as now. a inventory -- will

of issues, so -- macro the kind the would concern be in forth. geopolitical of the and of I big is end couple U.S. year which and biggest either Middle now elections East, right think got a my you've where between now these

point, around. lot fourth that market. Consumer somehow reverberating the areas that's could don't overall at in of Consumer in quarter, from my confidence, uncertainty of out mind, I confidence supply the see a I the tanks now. volatility I have a see don't think And sloshing that, But probably uncertainty impact biggest that's aside that, is and on this there right stock in demand.

cash I helpful. to deployment. just That's point up wanted on follow around And the

So earnings, mean, Xs of into does I probably in the normal or while have depressed seasonality, this higher rest that leverage you're your deployment now still with year. you delay is any the M&A? I buybacks guess really if through

about think So how do you that?

We're likely this around of the going lot discipline change operate. half think first areas I a there'll going be freely to I That's to to cash how be very half we're to the disciplined in of don't of in, spending over the continue think be seen and yes, spend. year you've there this reliability. second safety year. on most that on license will capital

well limiting and But going sense makes have something we're discretionary the we spending that very do that of to M&A, we we able and make And that going it's If were a be the to so want integration balance sheet. on creation. that. value focused fits and continue forth, shareholder dividend to to to lot be of guard very sure to

I Peter is And mean, X.X%. as our right at Yes. said, dividend now

you're right, So really net debt overall from it's our trough perspective. Xx that And I is pretty leverage mean EBITDA. leverage our -- Josh. a competitive

$X.X what ensure below we'd we're over average down see of ourselves that debt. level, And us ] a trying cycle cycle. think if billion true will do [ which is to about you bring sort that to net of EBITDA, I that

Next Capital from KeyBanc question Markets. Yefremov from is coming Alex

of spray share could on insulation? year? was And I doing if is your Peter, business us is foam from that story. you other business How update forms hoping gaining this your overall

I'm think we're and optimistic government be fibers, and see the I crude standards codes Presently, XXXX. what the products, quite a through of area in in demand on right a a are polyurethane foam mineral I kind some of that as it now. forth coming are initiatives feels prices. be Well, so at set foam of the the forth. market very about optimistic will when so and your being And really competitive versus I right which which pipeline. issues, peers gas at energy on There'll some and based so and it's where versus look It -- that comparison macro the is higher hit based It's the pretty natural of to is sluggish tax natural at of like line. about now. I spray largely our earnings I there look basis, forth prices, bottom standards, and building those look your other first out

Thanks, any And commercial? was slowdown the real in in us versus reminded you estate maintenance Peter. breakdown tell you signs exposure U.S. see the new commercial prepared us to I And within of of your if also is in remarks. between you hoping and residential ask commercial real estate? what

Yes.

XX%. that I at looking X/X it number. As overall that, really that, And look that our When America, a new. up commercial. polyurethanes on North XX% revenues, be will at That about be about our Residential, revenue North which that's up to just Again, of retrofit, we about new going look making That's commercial about up in business of side, be the the about of quarter, be basis. be X polyurethanes quarters. retrofit. and of will It business, will on makes American of Of that's commercial North our split overall making will at business. about that's -- X America XX% X/X in it's

from Mizuho John coming Securities. Roberts is question Next from

in? integration downstream into kind back I you Peter. In Materials, interested vertical assume going and what not primarily of the it's are Advanced upstream?

be would know might go day not should is to well, gauge also health never, say definitely -- spent I getting certainly [indiscernible]. temperature the would us for the and But upstream. never it downstream. it upstream. We No. I years cold of don't certainly We'll But but lateral. It is out

to and our like go of forth able think been acquisitions, some downstream. at go We've And business us to have and further look so chemistries and core been see Materials. lateral. that enhanced able couple last to our think we've I I buy Advanced I'd

And to the to long-term come Is to happen effective rate XX% tax geographic XX%. has that just then to normalization? what for down

Yes, exactly right, said is XX% to we mean John. XX%. it I

see we EBITDA, that We're in down. see towards need quarter we XX% think in back Europe. But coming And you'll that. mid-cycle profitability improvement second an actually it's to move year-to-date. I or as what is in XX% the exactly as

you ultimately, those So NOLs. of can some use

Kevin coming McCarthy is from Vertical today question from Next Partners. Research

I Performance wanted you, Peter, to ask Products. regarding

prepared And also Your about that. grew think was in modest you and restocking, last the I some the night, volume X% remarks, I released referenced seasonality, quarter. in but curious

We to haven't a companies lot restocking. chemical heard of pointing

coatings and and adhesives lubricants. out called fuels and You

you wonder could on I just or comment underlying green So visibility confidence related that and or demand that it's shoots? your maybe on restocking expand if pull versus

Yes, question. Kevin, great

going look with middle. each of each a the gray end, this at get I to us in precipitate on it's call said the think I Higher demand. in bell kind restocking, -- in think got And last I curve I quarter where you've you've restocking. that's demand that ago, got area going struggle. you're earnings an eventually, a you think is to higher area And we if always

But see and restocking confidence improve. are going to will people's improves, you typically, demand as improve

see Performance restocking, and a when seeing that, business the ag So lot of around that. That's modest third construction why there's quarter, we'll I the of around spring be seasonality around going going some particularly improvement modest talked seasonality planting probably in in some in out pointed some is Products. Products Performance be to about to your we're back, and demand I coming business headwinds

But past seen that come in nice nice that end return normalize, was on I inventory as driven. back and the unexpectedly say business that we're in was we I that we very demand this area was hit lot quarter. because that unexpectedly to we've demand a think remind saw of And back, and should inventories a look also additives. I XXXX, fuel of in return the seeing of recovery hard. that a got you lubes an

sticking then And to come Products, with helpful. to back maleic anhydride. That's I wanted Performance

that, my in back Asia Europe. referenced guess import the freight from will well pressure the think you I challenges industry the is, Europe to think given as Asia. that related some dynamic of dynamics to in the as into I question rates you of Europe from improve there do half year

for maleic price think, at versus in XQ. One of to pointed contract I higher Europe consultants the in XQ least, a

saw be expectations it -- are a So well helpful there, but bit that sure if as what your not to would understand or you better.

of seen third the indications for give even just we're lot have around far so I that fourth seeing those opposed into That's price And improving. not that the not not going Maleic quarter to Europe. that any of pricing in I'm and quarter sort in optimism a say me whole indications.

it a might think of XXXX be I more event.

to so Suez get routes some there, versus -- and bunch going to too reopen Africa product you eventually, you month see of you that's But the between X you the -- canal you to is going these or going cause -- at forth, Canal trade the you're shift right? the and see volatility, you take we demand. when going through a Look, through coming much pricing of actually the when canal, and of can Africa versus and up in -- supply and you around and up around get see So a time. change same shipments a put get could start going scenario

prices and and demand costs will forth. Europe. Chinese the Fundamentally, domestic a wouldn't European will improves, China improves more anything cure, be whole help long-term will of And stay routing shipping home will, lot in if and logistics what as a and maleic than you not will I of that probably that in put So around Chinese need so economy more and else.

coming Alembic is from Ahmed question next from Hassan Your Global.

it better away of the obviously, there, segment. particularly mentioned region, Polyurethane a sense of to globally wanted -- basis, Obviously, a off to on despite just it How volumes of low strong I'm far just America. North question volumes. levels reaching in more revisit get we're Be a are trying be base. normalized from over percentage coming growth you a in by we? that, Peter,

good I Hassan, question. think,

we got normalization something you've that that's think we I to place, we would we see And to residential in this certainly recovery of need XXXX returned that construction see that improvement see gradual believe that rest in year. hope again, have a through would as construction, as get that take the markets. I the

sort it carrying look seems numbers the mean, cut on in your the what internally, is of a the construction card ECB take rate the the from of the numbers, as rate sort Obviously, just here in the there a is like. I at and and and rate cut mean of And between imminent we with I on things. saw U.S. numbers side, you and Understood. and the lag demand guys benefit trends own like, you historic profitability your that sort of seeing side

next the think about forth. month, on going the or talking week quarters see be cuts year, down, of optimism but time among to probably of not will X I as rate or probably cut the But you so. the so -- it's and you're the come rate the next It's depending size builders.

in a you're You as of future. depending on see the the impact will and like so of an and again, see more least probably that. quarters cut, pickup people And forth at of season something investing confident the to size the about X gradual feel inventory time really looking on

Next coming Alexander question is from from Jefferies. Laurence

Rizzo Dan is Laurence. on for This

if things any to a segments. you wondering stronger resurge with if I needs go in was disciplined that rate or cycle could after in -- a being CapEx. have all back in You restock meet capacity X to demand occur just cuts ample resurge mentioned

Yes. go. any and Good Need question, to answer is ready absolutely poised, set demand we're Dan. scenario. Simple

more rate Okay. a of, doesn't needs also What commercial to effect. mentioned think big do to from you reenergize And that you construction and -- then dependent upon Europe standpoint region? again, and as kind cut being happen macro the have

going cuts is Europe. consumer and the anything going believe Europe around around energy consumer see from pricing, going I as that utility year-over-year, question commercial is a Europe is bills confidence particularly in to that And when your energy reenergize XX%, pay lot a income energy, the be everything much geopolitical, on XXX% else. To construction, question predicated competitiveness. you going failed around but are that's around rate as is be up disposable And for largely to of Yes, that's confidence to it policy. XX%, is Europe a

from Blair Matthew is question TPH. coming from Next

like talk Huntsman slowing? And dynamics on you it region? are Peter, the housing in the the in how fair and would the characterize manufacturing about could to ground Is China say system? autos for areas you

particularly don't continues are continues I really lot demand a very confidence Automotive side we've strong Infrastructure don't seeing good auto place be strong to be taking be any last of recovery decline stay the us. and a an of things and for around not But areas. year, and residential I consumer there particularly decent think, see in over decline. number getting those relationships steady. continues to got pretty staying to think auto. so are us. seen and a I OEMs by just We're of are construction. areas And we've applications worse. of exports, in those large, with for The area we Obviously, steady. and seeing

Sounds good. mat. And then on ad

adhesive I you well? is this? -- that the have the think to sales planes any you are something into due the as only wide-body other planes? slides making aerospace of interior And are to applications. applies this rising Do examples Or inroads mentioned

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coming question from Viswanathan RBC. next is Arun from Our

lot of It's we other have question, else a any Operator, that for busy to this have the want people. and why be I don't anything. has this. last anybody a morning or questions

So to more the Christine. call, than welcome or Ivan

final from RBC. come from today Arun will Certainly, question our

you that America Hassan was levels but I go in 'XX demand and earlier to the your normal could seeing I in that again, kind I to rates you think wanted are you're Yes, understand interest demand North in you maybe say would comments, back say, the your of help markers expect, And would over tell visibility just your we're -- of maybe, what's are couple I of normal. or getting either you've worse? on next recovery guess, normal improving XX% or much you that incrementally years? there How XX% any seen asking that of would where maybe recently that at

break mid-XX% composite run elastomers, the base-by-base as around -- I the at capacity flexible would construction, automotive globally, probably certainly it's that in internal demands a foam what I of we as a And basis, to breakdown appliances we we're spray segment a our going to insulation, vary at we areas the foam. we you're Well, normalized capacity from those of that would somewhere to on and case-by-case utilization wood, for everything in down look consider areas low be say that rate. bit, look

certainly So than again, were expansion, a time. some for a room this where year ago lot but better we

ladies does Thank you. question-and-answer of end We conclude our reached the today's webcast. and teleconference and session. And gentlemen, that

today. thank for participation wonderful day. You at line this your your may We you and a have disconnect time,