Polyurethane sales to auto industry up in Q1, could drop in Q2 due to chip shortage – Huntsman
HOUSTON (CIHI) – Huntsman’s sales of its automotive polyurethanes division increased year-over-year in the first quarter, but sales could see some reduction in the second quarter due to the impact of the Global semiconductor shortage CEO and Chairman Peter Huntsman said during an earnings call Friday.
“Our first quarter sales in the automotive market were up 12% in the first quarter from a year ago as we saw no real impact of the chip shortage on demand for our products. We believe this is mainly due to the fact that our automotive business is primarily focused on Europe and focuses on luxury vehicle lines, ”Huntsman said.
“We are seeing a 2-3% decline in automotive sales so far in the second quarter due to chip-related production slowdowns. We have been successful in reallocating a large portion of the subject methylene diphenyl diisocyanate (MDI) volumes to other segments and do not expect to see a real impact on margins, ”added Huntsman.
Tony Hankins, President of the Polyurethanes Division, said: “The products we supply to the automotive industry are typically specialized formulations for the premium automotive market. There are some similarities between these formulations and some of our other market segments. Some of the viscoelastic qualities that we provide to automotive customers are also intended for high end furniture, which offers similar margins to even better than automotive ones. The high-end furniture market is growing at a rapid pace at the moment, so there are definitely opportunities there.