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Huntsman Corporation (HUN) Announces Strategic Review for Textile Effects and New Compensation Plan; Shares Rise

Wednesday, December 29, 2021 10:56 AM | Kyle Depontes

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Huntsman Corporation (HUN) Announces Strategic Review for Textile Effects and New Compensation Plan; Shares Rise

What is going on with HUN?

Huntsman Corporation (HUN) stock rose today after the company, a US-based manufacturer of organic chemical products, today announced two significant corporate initiatives: a review of strategic options for its Textile Effects Division and a multi-year compensation plan.

The compensation plan is designed to align the incentives of the company's management team with the targets presented at its Investor Day in November.

Shares of HUN increased 3.75% to $34.90 as of Wednesday at 10:34am.

What does this mean for Huntsman Corporation?

Huntsman's new compensation plan will feature equity incentives that are performance-based and tied to relative Total Shareholder Return and Free Cash Flow measures.

Additionally, the entirety of the company's incentive cash bonus program will be linked to the achievement of the Adjusted EBITDA margin.

In regards to the company's Textile Effects Division, Huntsman disclosed that the review process will begin early in the first quarter of 2022.

Speaking on the strategic review for textiles, Peter R. Huntsman, Chairman, President and CEO, commented, "We believe now is the right time to explore options for Textile Effects. We expect that the division will generate close to $100 million of Adjusted EBITDA in 2021, recovering much of what was lost due to COVID-19."

"While its value-added portfolio of sustainable products is consistent with Huntsman's strategic direction, there may well be an external party that recognizes the value of these extremely attractive assets and will be a better owner for them."

Long-Term Technical Rank - 86

HUN has a Long-Term Technical Rank of 86. Find out what this means to you and get the rest of the rankings on HUN!

Huntsman Corp is a US-based manufacturer of differentiated organic chemical products. Its product portfolio comprises methyl diphenyl diisocyanate (MDI), amines, surfactants, maleic anhydride, epoxy-based polymer formulations, textile chemicals, dyes, and others. The company's products are used in adhesives, aerospace, automotive, construction products, among others. Its operating segments are Polyurethanes, Performance Products, Advanced Materials, and Textile Effects. It derives most of its revenue from the Polyurethanes segment, which includes MDI, polyols, TPU(thermoplastic polyurethane), and other polyurethane-related products. Its geographical segments are the United States & Canada, Europe, Asia- Pacific, and the Rest of the world.

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