Chemicals maker Huntsman Corp on Friday, reported a first-quarter loss on weak demand in the recession. It posted a net loss of $290 million, or $1.24 per share as against a profit of $7 million or 3 cents per share, in the same per last year.

Revenue fell to $1.69 billion, a 33 per cent drop from $2.54 billion a year earlier.

According to analysts, a first-quarter loss of 22 cents per share on $2.2 billion was expected. Their projections usually exclude one-time items.

The period saw a drop in sales at all five of the company's business segments.

President and chief executive Peter R Huntsman said in a statement, that the company's results for the first quarter of 2009 reflected decreased demand in all businesses due to the worldwide economic slowdown.

He added that while demand during the period was worse than in the fourth quarter of 2008, it seems to be picking up as the company enters the second quarter. The first quarter has been the worst quarter for the chemical sector according to industry sources.

The company initiated aggressive cost cutting measures as recession sharply curtailed demand and in January. The Texas-based company announced it would slash 1,175 jobs, close a plant in the UK and cut capital spending.

That announcement came following an 18-month long acquisition bid by Hexion Specialty Chemicals.

Huntsman faced a $6.51-billion takeover bid by Hexion in July 2007. With the economy sliding and consumers spending less, Huntsman lost $172.2 million in 2007 compared with a $229.8 million profit in 2006.

Hexion later tried to break off the deal fearing that it was overpaying for Huntsman. A string of lawsuits and legal maneuvers followed before Huntsman let Hexion walk away for a $1-billion late last year.

Due in part to that payout, Huntsman highlighted it in reporting its cash reserves when announcing first-quarter results. The company said it had $473 million cash on hand and $642 million available under a credit facility, should either be needed.

Huntsman said in a statement, "We are well positioned for the current recession and to prosper as we see a return to normal market conditions.''

Shares of the company slid 87 cents, or 14.8 per cent, to $5.01 in morning trading. The company's stock has been seen trading between $2.03 and $23.95 over the past 52 weeks.

Huntsman Corp is a global manufacturer and marketer of differentiated chemicals. Its operating companies manufacture products for diverse application, including chemicals, plastics, automotive, aviation, textiles, footwear, paints and coatings Originally known for pioneering innovations in packaging, and later for its rapid and integrated growth in petrochemicals, Huntsman today has more than 12,000 employees and operates from multiple locations across the world. The company had 2008 revenues exceeding $10 billion.