Huntsman reports 10% rise in second-quarter earnings

Huntsman Corp., the chemical maker whose takeover by a unit of Apollo Management LP faces collapse, said adjusted second-quarter earnings rose 10 percent from the previous period because of price gains and improved sales volumes.

Adjusted earnings before interest, taxes, depreciation and amortization will be higher in the second half than in the first six months, Huntsman said Wednesday in a statement. Huntsman, which is run from The Woodlands, Texas, and Salt Lake City, said it overcame energy, raw-material and other costs that rose $75 million from the first quarter.

Apollo's Hexion Specialty Chemicals unit sued Huntsman on June 18 to cancel their proposed $6.54 billion merger, saying Huntsman's deteriorating financial condition would render the combined company insolvent. Huntsman responded by suing New York-based Apollo and partners Leon Black and Joshua Harris in Texas for $3 billion, accusing them of fraud.

Adjusted earnings were $188.3 million in the first quarter, Huntsman said in May. A 10 percent increase implies about $207 million of adjusted earnings in the second quarter. Spokesman Russ Stolle declined to say what items were excluded from adjusted earnings in the quarter or to provide net income. The company said it will release complete earnings for the period on July 30.

Airlines' red ink is growing, spurring rises in ticket prices

The red ink is mounting for airlines amid soaring fuel costs, leaving them little choice but to further hike ticket prices. As Delta Air Lines and American Airlines reported big second-quarter losses Wednesday, they signaled customers should expect more hits to their checkbooks.

Atlanta-based Delta Air Lines Inc. reported a $1.04 billion loss in the April-June quarter, and Fort Worth, Texas-based AMR Corp., the parent of American, posted a $1.45 billion loss for the quarter. One-time charges and unprecedented fuel costs impacted both airlines, which saw their shares soar as their results beat Wall Street expectations and oil prices dropped.

The two carriers have posted combined net losses of $9.2 billion since the start of the year.

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