Huntsman Corporation
Company Summary
Financial Data:
NYSE:HUN from Google FinanceTickers:
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HUN - New York Stock Exchange
Recent news
- 5/22/2017 - Huntsman & Clariant... (subscriber access)
Company Transactions
Date: 12/31/2017
Type: Merger
NOTES:
The merged company will be known as HuntsmanClarient and will have an enterprise value of $20 billion once the deal closes at year-end 2017. As part of the deal, Huntsman shareholders will receive 1.2196 shares in HunstmanClarient for each share of Huntsman while each shareholder in Clarient will hold thier shares in the new company.
The merged company will be known as HuntsmanClarient and will have an enterprise value of $20 billion once the deal closes at year-end 2017. As part of the deal, Huntsman shareholders will receive 1.2196 shares in HunstmanClarient for each share of Huntsman while each shareholder in Clarient will hold thier shares in the new company.
News & Press Releases
Criterion News
- 5/22/2017 - Huntsman & Clariant... (subscriber access)
Press Releases
- Third quarter 2020 net income of $57 million compared to net income of $41 million in the prior year period; third quarter 2020 diluted earnings per share of $0.22 compared to diluted earnings per share of $0.13 in the prior year period.
- Third quarter 2020 adjusted net income of $70 million compared to adjusted net income of $95 million in the prior year period; third quarter 2020 adjusted diluted earnings per share of $0.32 compared to adjusted diluted earnings per share of $0.41 in the prior year period.
- Third quarter 2020 adjusted EBITDA of $188 million compared to $215 million in the prior year period.
- Third quarter 2020 net cash provided by operating activities from continuing operations was $65 million. Free cash flow from continuing operations was $11 million for the third quarter 2020 and adjusted free cash flow from continuing operations was $189 million.
- Balance sheet remains strong with a net leverage of 1.6x and total liquidity is approximately $2.5 billion.
- Sale of Venator Materials PLC shares to funds advised by SK Capital is on track to close near year end. Together with estimated cash tax savings of approximately $150 million, which this transaction facilitates, we expect to secure an aggregate total cash benefit of approximately $250 million.
- In excess of $100 million of previously announced targeted annualized savings and acquisition integration synergies remains on track to be achieved by the end of 2021.
- On October 28, 2020, Huntsman announced the agreement to sell its India based Do-It-Yourself consumer adhesives business for up to $285 million to Pidilite Industries Ltd. The transaction value represents a 2019 adjusted EBITDA multiple of ~15x and is expected to close within the coming week.
- Second quarter 2020 net loss of $59 million compared to net income of $118 million in the prior year period; second quarter 2020 loss per share of $0.28 compared to diluted earnings per share of $0.47 in the prior year period.
- Second quarter 2020 adjusted net loss of $30 million compared to adjusted net income of $108 million in the prior year period; second quarter 2020 adjusted loss per share of $0.14 compared to diluted earnings per share of $0.47 in the prior year period.
- Second quarter 2020 adjusted EBITDA of $54 million compared to $245 million in the prior year period.
- Second quarter 2020 net cash provided by operating activities was $85 million. Free cash flow from continuing operations was $30 million for the second quarter 2020 and adjusted free cash flow from continuing operations was $38 million.
- Balance sheet remains strong with a net leverage of 1.5x and total liquidity is approximately $2.6 billion.
- The CVC Thermoset Specialties acquisition closed on May 18, 2020. The integration remains on track and the Company expects to achieve the targeted annualized synergies of approximately $15 million by the end of 2021.
- Including approximately $35 million of synergies relating to recent acquisitions, annualized savings in excess of $100 million are targeted by the end of 2021.
- Net income attributable to Venator of $7 million; adjusted net income attributable to Venator of $12 million
- Adjusted EBITDA of $57 million compared to $60 million in 1Q19 and $23 million in 4Q19
- Diluted earnings per share of $0.07 and adjusted diluted earnings per share of $0.11
- Average TiO2 pricing was stable compared to the fourth quarter of 2019; volumes increased in-line with historical seasonality
- Delivered $4 million of adjusted EBITDA benefit from our 2019 Business Improvement Program in the first quarter
- At the end of the quarter, we had $25 million of cash supplemented by $191 million of availability under our ABL
- Implementing a range of actions to reduce costs and cash uses in response to COVID-19
- First quarter 2020 net income of $708 million compared to $131 million in the prior year period; first quarter 2020 diluted earnings per share of $3.16 compared to $0.51 in the prior year period.
- First quarter 2020 adjusted net income of $65 million compared to $85 million in the prior year period; first quarter 2020 adjusted diluted earnings per share of $0.29 compared to $0.36 in the prior year period.
- First quarter 2020 adjusted EBITDA of $165 million compared to $204 million in the prior year period.
- First quarter 2020 net cash used in operating activities was $40 million. Free cash flow was a use of $101 million for the first quarter 2020.
- Balance sheet remains strong with a net leverage of 0.7x and total liquidity for the Company is approximately $2.9 billion. First quarter 2020 share repurchases of approximately 5.4 million shares for approximately $96 million.
- The Icynene-Lapolla acquisition closed on February 20, 2020, which approximately doubled our existing global spray polyurethane foam insulation business. Our recently announced acquisition of CVC Thermoset Specialties on March 16, 2020, is on track to close by mid-year.
- 2019 net income of $598 million compared to $650 million in the prior year period; 2019 diluted earnings per share of $2.44 compared to $1.39 in the prior year period.
- 2019 adjusted net income of $353 million compared to $642 million in the prior year period; 2019 adjusted diluted earnings per share of $1.53 compared to $2.66 in the prior year period.
- 2019 adjusted EBITDA $846 million compared to $1,161 million in the prior year
- Fourth quarter 2019 net income of $308 million compared to a net loss of $315 million in the prior year period; fourth quarter 2019 diluted earnings per share of $1.34 compared to a loss per share of $1.43 in the prior year period.
- Fourth quarter 2019 adjusted net income of $65 million compared to $90 million in the prior year period; fourth quarter 2019 adjusted diluted earnings per share of $0.29 compared to $0.38 in the prior year period.
- Fourth quarter 2019 adjusted EBITDA of $182 million compared to $207 million in the prior year period.
- 2019 net cash provided by operating activities from continuing operations of $656 million. 2019 free cash flow from continuing operations was $389 million.
- Balance sheet remains strong with total Company net debt leverage of 1.7x; proforma net debt leverage for the proceeds from the Chemical Intermediates and Surfactants sale that closed on January 3, 2020 is 0.4x.
- 2019 share repurchases of approximately 10.1 million shares for approximately $208 million.
- Previously announced acquisition of Icynene-Lapolla, a spray polyurethane foam business, is now on track to close in the first quarter of 2020.
- Third quarter 2019 net income of $41 million compared to a net loss of $8 million in the prior year period; third quarter 2019 diluted earnings per share of $0.13 compared to a loss per share of $0.05 in the prior year period.
- Third quarter 2019 adjusted net income of $95 million compared to $170 million in the prior year period; third quarter 2019 adjusted diluted earnings per share of $0.41 compared to $0.71 in the prior year period.
- Third quarter 2019 adjusted EBITDA of $215 million compared to $308 million in the prior year period.
- Third quarter 2019 net cash provided by operating activities from continuing operations of $257 million. Free cash flow from continuing operations of $197 million for the quarter.
- Balance sheet remains strong with total Company net leverage of 1.6x.
- Third quarter 2019 share repurchases of approximately 4.1 million shares for approximately $81 million.
- Previously announced divestiture of the Chemical Intermediates and Surfactants businesses for $2.1 billion remains on track and is expected to close in early 2020. The businesses to be divested are now reported as discontinued operations on the income statement and held for sale on the balance sheet.
- Second quarter 2019 net income of $118 million compared to $623 million in the prior year period; second quarter 2019 diluted earnings per share of $0.47 compared to $1.71 in the prior year period.
- Second quarter 2019 adjusted net income of $146 million compared to $246 million in the prior year period; second quarter 2019 adjusted diluted earnings per share of $0.63 compared to $1.01 in the prior year period.
- Second quarter 2019 adjusted EBITDA of $318 million compared to $415 million in the prior year period.
- Second quarter 2019 net cash provided by operating activities was $304 million. Free cash flow was $240 million for the quarter.
- Balance sheet remains strong with a net leverage of 1.7x.
- Second quarter 2019 share repurchases of approximately 4 million shares for approximately $81 million.
- On July 26, 2019 announced a definitive agreement with Sasol to acquire the 50% interest that Huntsman does not own in the Sasol-Huntsman maleic anhydride joint venture located in Moers, Germany for $92.5 million, adjusted for net debt and other agreed upon adjustments.
- 2018 net income of $650 million compared to $741 million in the prior year; 2018 diluted earnings per share of $1.39 compared to $2.61 in the prior year.
- 2018 adjusted net income of $808 million compared to $604 million in the prior year; 2018 adjusted diluted earnings per share of $3.34 compared to $2.48 in the prior year.
- 2018 adjusted EBITDA of $1,469 million compared to $1,259 million in the prior year.
- Fourth quarter net loss of $315 million compared to net income of $287 million in the prior year period; Fourth quarter diluted loss per share of $1.43 compared to diluted earnings per share of $1.00 in the prior year period.
- Fourth quarter adjusted net income of $123 million compared to $186 million in the prior year period; Fourth quarter adjusted diluted earnings per share of $0.52 compared to $0.76 in the prior year period.
- Fourth quarter adjusted EBITDA of $275 million compared to $360 million in the prior year period.
- 2018 net cash provided by operating activities was $963 million. Free cash flow generation was $651 million.
- Balance sheet remains strong with a net leverage of 1.3x.
- 2018 share repurchases of approximately 10.4 million shares for approximately $276 million.
- Net income was $623 million compared to $183 million in the prior year period and $350 million in the prior quarter.
- Adjusted EBITDA was $415 million compared to $299 million in the prior year period and $405 million in the prior quarter.
- Diluted income per share was $1.71 compared to $0.69 in the prior year period and $1.11 in the prior quarter.
- Adjusted diluted income per share was $1.01 compared to $0.59 in the prior year period and $0.96 in the prior quarter.
- Net cash provided by operating activities was $228 million. Free cash flow generation was $174 million.
- Balance sheet remains strong with a net leverage of 1.4x.
- Completed cumulative share repurchases of approximately $138 million through end of second quarter 2018.
- Net income was $350 million compared to $92 million in the prior year period and $287 million in the prior quarter.
- Adjusted EBITDA was $405 million compared to $260 million in the prior year period and $360 million in the prior quarter.
- Diluted income per share was $1.11 compared to $0.31 in the prior year period and $1.00 in the prior quarter.
- Adjusted diluted income per share was $0.96 compared to $0.45 in the prior year period and $0.76 in the prior quarter.
- Net cash provided by operating activities was $111 million. Free cash flow generation was $56 million.
- Balance sheet remains strong with a net leverage of 1.3x.
- Completed share repurchases of approximately $103 million through April 19, 2018, and approximately $347 million remains on the existing share repurchase authorization.
- Expanded the Polyurethanes downstream business with the acquisition of Demilec, a leading North American polyurethane spray foam producer, which was completed on April 23, 2018.
- Net income was $287 million compared to $137 million in the prior year period and $179 million in the prior quarter.
- Adjusted EBITDA was $360 million compared to $210 million in the prior year period and $340 million in the prior quarter.
- Diluted income per share was $1.00 compared to $0.53 in the prior year period and $0.60 in the prior quarter.
- Adjusted diluted income per share was $0.76 compared to $0.21 in the prior year period and $0.67 in the prior quarter.
- Net cash provided by operating activities was $304 million. Free cash flow generation was $190 million.
- Successful secondary offering of Venator (NYSE – VNTR) shares was completed in December. The net proceeds were used to pay down the remaining $511 million on Huntsman's Term Loan B due 2023, reducing net leverage to 1.4x. Huntsman's remaining ownership interest in Venator is currently approximately 53%.
- Net income was $741 million compared to $357 million in the prior year.
- Adjusted EBITDA was $1,259 million compared to $997 million in the prior year.
- Net cash provided by operating activities was $842 million compared to $974 million in the prior year. Free cash flow generation was $594 million compared to free cash flow of $656 million in the prior year.
- Annual free cash flow target for the upcoming years is increased by $50 million to between $450 million and $650 million.
- In 2017, debt was reduced by approximately $2.1 billion and Huntsman exited the year with the strongest balance sheet in its history with a net debt to EBITDA ratio of 1.4x. Since the beginning of 2016 to the end of 2017, net debt was reduced by 60%, from $4.5 billion to $1.8 billion.
- The board approved a 30% increase of the quarterly dividend from $0.125 to $0.1625 per share, effective immediately, and share repurchases up to $450 million.
- Net income was $179 million compared to $64 million in the prior year period and $183 million in the prior quarter.
- Adjusted EBITDA was $340 million (16% EBITDA margin), impacted by $50 million from Hurricane Harvey, compared to $234 million in the prior year period and $299 million in the prior quarter.
- Diluted income per share was $0.60 compared to $0.23 in the prior year period and $0.69 in the prior quarter.
- Adjusted diluted income per share was $0.67 compared to $0.31 in the prior year period and $0.59 in the prior quarter.
- Net cash provided by operating activities was $261 million. Free cash flow generation was $227 million.
- The balance sheet was transformed by applying the $1.2 billion in Venator IPO net proceeds to reduce Huntsman debt. On October 25, 2017, we made an additional $100 million early repayment of debt. From the beginning of 2016 to this most recent quarter our net-debt was reduced by 47%, from $4.5 billion to $2.4 billion.
- Merger of equals with Clariant terminated by mutual agreement.
- Continued focus on growth and expanding margins in our differentiated and specialty businesses through both organic growth and appropriate bolt-on acquisitions;
- Consistent strong annual free cash flow and deleveraging, reaching investment grade metrics beginning in 2018;
- Monetization of the remaining Venator shares, further strengthening the balance sheet; and
- Upon achieving investment grade metrics, return of additional value to shareholders.
- Net income was $183 million compared to $94 million in the prior year period and $92 million in the prior quarter.
- Adjusted EBITDA was $413 million compared to $325 million in the prior year period and $329 million in the prior quarter.
- Diluted income per share was $0.69 compared to $0.36 in the prior year period and $0.31 in the prior quarter.
- Adjusted diluted income per share was $0.85 compared to $0.53 in the prior year period and $0.57 in the prior quarter.
- Net cash provided by operating activities was $301 million. Free cash flow generation was $251 million.
- On July 26, 2017, we made a $100 million early repayment of debt on our term loan B due 2019.
- Our Pigments and Additives division (Venator) launched its initial public offering on July 24, 2017.
- Our definitive agreement to merge with Clariant remains on track. We are confident in our ability to achieve in excess of $400 million in annual cost synergies with another $25 million in annual tax savings, creating in excess of $3.5 billion of value for shareholders
- Merger of equals to create a leading global specialty chemical company with approximately $20 billion enterprise value at announcement
- More than $3.5 billion value creation through annual cost synergies in excess of $400 million
- Enhanced returns from improved growth profile in highly attractive end markets and key geographies such as the United States and China
- Opportunities for stronger joint innovation platforms and shared knowledge in sustainability
- Stronger balance sheet and cash flow generation; plan to continue Clariant's attractive dividend policy
- Transaction targeted to close by year end 2017
- Previously announced IPO of Huntsman's Pigments and Additives business (Venator) to continue as planned in summer 2017
- All-stock merger of equals transaction
- Clariant shareholders: 52%, Huntsman shareholders: 48%
- Huntsman shareholders receive 1.2196 shares in HuntsmanClariant for each Huntsman share (each existing Clariant share will remain outstanding as a share in HuntsmanClariant)
- Board of Directors with equal representation from Clariant and Huntsman
- Global Headquarters in Pratteln, Switzerland, Operational Headquarters in The Woodlands, Texas
- Dual stock exchange direct listing on the SIX Swiss Exchange and the New York Stock Exchange
- Net income was $92 million compared to $62 million in the prior year period and $137 million in the prior quarter.
- Adjusted EBITDA was $329 million compared to $274 million in the prior year period and $256 million in the prior quarter.
- Diluted income per share was $0.31 compared to $0.24 in the prior year period and $0.53 in the prior quarter.
- Adjusted diluted income per share was $0.57 compared to $0.37 in the prior year period and $0.30 in the prior quarter.
- Net cash provided by operating activities was $93 million. Free cash flow generation was $82 million.
- On April 25, 2017, we made a $100 million early repayment of debt.
- We are committed to an IPO or spin of our Pigments business in the summer of 2017.
- ~20% capacity within 2Q17
- ~40% capacity within 2Q18
- ~100% capacity around year end 2018
- Net income was $137 million compared to $9 million in the prior year period and $64 million in the prior quarter.
- Adjusted EBITDA was $256 million compared to $240 million in the prior year period and $272 million in the prior quarter.
- Diluted income per share was $0.53 compared to $0.02 in the prior year period and $0.23 in the prior quarter.
- Adjusted diluted income per share was $0.30 compared to $0.51 in the prior year period and $0.38 in the prior quarter.
- Net cash provided by operating activities was $240 million. Free cash flow generation was $117 million.
- On December 30, 2016, we completed the sale of our European surfactants business for an enterprise value of $225 million.
- On December 30, 2016, we made a $260 million early repayment of debt.
- Net income was $357 million compared to $126 million in the prior year.
- Adjusted EBITDA was $1,127 million compared to $1,221 million in the prior year.
- Net cash provided by operating activities was $1,088 million compared to $575 million in the prior year. Free cash flow generation was $686 million compared to negative free cash flow of $30 million in the prior year.
- We repaid $560 million of debt during the year from cash generation and proceeds from the sale of our European surfactants business. This represents a 12% reduction in debt during 2016.
- Europe, Africa, Middle East and Latin America: €235 (Euros) per tonne or $250 (USD) per tonne in dollar-based markets
- Asia-Pacific: $160 (USD) per tonne
- North America: $0.07 per pound (USD)
- Net income was $64 million compared to $63 million in the prior year period and $94 million in the prior quarter.
- Adjusted EBITDA was $272 million compared to $311 million in the prior year period and $325 million in the prior quarter.
- Diluted income per share was $0.23 compared to $0.22 in the prior year period and $0.36 in the prior quarter.
- Adjusted diluted income per share was $0.38 compared to $0.47 in the prior year period and $0.53 in the prior quarter.
- Adjusted EBITDA and net income impact from weather related and other production outages of approximately $25 million and $16 million or approximately $0.07 per adjusted diluted share.
- Net cash provided by operating activities was $405 million. Free cash flow generation was $300 million; we made a $100 million early repayment of debt in July 2016 and another $100 million early repayment of debt in September 2016.
- On August 3, 2016, we announced that Innospec Inc. committed to purchase our European surfactants business at an enterprise value of $225 million. The business represents approximately $24 million of annual adjusted EBITDA. Closing is expected to occur by the end of the fourth quarter of 2016.
- On October 28, 2016, our subsidiary, temporarily named Huntsman Spin Corporation, filed an initial Form 10 registration statement with the U.S. Securities and Exchange Commission for the previously announced spin-off of our Pigments & Additives and Textile Effects businesses.
- Subject to market conditions, we plan to separate these businesses from Huntsman in the first half of 2017.
- The shares of the spin-off corporation that will be distributed to Huntsman shareholders in the spin-off are expected to be listed and traded on the New York Stock Exchange.
- The Form 10 filed today includes a business overview, market information, company strengths and strategy, certain named executive management and historical carve-out financial statements. Additional information regarding the final company name, capitalization, additional pro forma information and other matters will be provided in subsequent amendments to the Form 10.
- Net income was $94 million compared to $39 million in the prior year period and $62 million in the prior quarter.
- Adjusted EBITDA was $325 million compared to $385 million in the prior year period and $274 million in the prior quarter.
- Diluted income per share was $0.36 compared to $0.12 in the prior year period and $0.24 in the prior quarter.
- Adjusted diluted income per share was $0.53 compared to $0.63 in the prior year period and $0.37 in the prior quarter.
- Net cash provided by operating activities was $355 million. Free cash flow generation was $282 million; we subsequently made a $100 million early repayment of debt in July 2016.
- Wells Fargo Industrial & Construction Conference, May 11, 2016
- Barclays High Yield & Syndicated Loan Conference, June 9, 2016
- Adjusted EBITDA was $274 million compared to $285 million in the prior year period and $240 million in the prior quarter.
- Adjusted diluted income per share was $0.37 compared to $0.40 in the prior year period and $0.51 in the prior quarter.
- Net income attributable to Huntsman Corporation was $56 million compared to $5 million in the prior year period and $4 million in the prior quarter.
- The stronger U.S. dollar reduced adjusted EBITDA by an estimated $19 million compared to the prior year period; a negative impact of approximately $0.05 loss per diluted share.
- First quarter 2016 free cash flow generation improved $34 million compared to the prior year period.
- Adjusted EBITDA was $240 million compared to $292 million in the prior year period and $311 million in the prior quarter.
- Adjusted diluted income per share was $0.51 compared to $0.33 in the prior year period and $0.47 in the prior quarter.
- Net income attributable to Huntsman Corporation was $4 million compared to net loss of $38 million in the prior year period and net income of $55 million in the prior quarter.
- The stronger U.S. dollar reduced adjusted EBITDA by an estimated $24 million compared to the prior year period; a negative impact of approximately $0.07 loss per diluted share.
- The combination of effective tax planning, certain unusual tax benefits and regional mix of income created an approximate $0.25 per diluted share net tax benefit during the fourth quarter 2015.
- $100 million accelerated share repurchase program completed; $50 million authorization remaining.
- Adjusted EBITDA was $1,221 million compared to $1,340 million in the prior year.
- Adjusted diluted income per share was $2.00 compared to $1.94 in the prior year.
- Net income attributable to Huntsman Corporation was $93 million compared to $323 million in the prior year.
- The stronger U.S. dollar reduced adjusted EBITDA by an estimated $136 million compared to the prior year; a negative impact of approximately $0.39 loss per diluted share.
- Planned PO/MTBE maintenance at our Port Neches, TX facility reduced adjusted EBITDA in 2015 by approximately $95 million. This maintenance occurs approximately once every five years.
Huntsman Completes the Acquisition of Gabriel Performance Products, Further Expanding its Specialty Chemicals Portfolio
Source: PR Newswire
Orignial Article: https://contentapi.cision...
THE WOODLANDS, Texas, Jan. 15, 2021 /PRNewswire/ -- Huntsman Corporation (NYSE: HUN) today announced it completed the acquisition of Gabriel Performance Products (Gabriel), a North American specialty chemical manufacturer of specialty additives and epoxy curing agents for the coatings, adhesives, sealants and composite end-markets, from Audax Private Equity.
Huntsman paid $250 million, subject to customary closing adjustments, in an all-cash transaction funded from available liquidity. Gabriel had 2019 revenues of approximately $106 million with three manufacturing facilities located in Ashtabula, Ohio, Harrison City, Pennsylvania and Rock Hill, South Carolina. Based on calendar year 2019, the purchase price represents an adjusted EBITDA multiple of approximately 11 times, or approximately 8 times pro forma for synergies.
About Huntsman:
Huntsman Corporation is a publicly traded global manufacturer and marketer of differentiated and specialty chemicals with 2019 revenues of approximately $7 billion. Our chemical products number in the thousands and are sold worldwide to manufacturers serving a broad and diverse range of consumer and industrial end markets. We operate more than 70 manufacturing, R&D and operations facilities in approximately 30 countries and employ approximately 9,000 associates within our four distinct business divisions. For more information about Huntsman, please visit the company's website at www.huntsman.com.
Social Media:
Twitter: www.twitter.com/Huntsman_Corp
Facebook: www.facebook.com/huntsmancorp
LinkedIn: www.linkedin.com/company/huntsman
Forward-Looking Statements:
Certain information in this release constitutes forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. These statements are based on management's current beliefs and expectations. The forward-looking statements in this release are subject to uncertainty and changes in circumstances and involve risks and uncertainties that may affect the company's operations, markets, products, services, prices and other factors as discussed under the caption "Risk Factors" in the Huntsman companies' filings with the U.S. Securities and Exchange Commission. Significant risks and uncertainties may relate to, but are not limited to, volatile global economic conditions, cyclical and volatile product markets, disruptions in production at manufacturing facilities, reorganization or restructuring of Huntsman's operations, including any delay of, or other negative developments affecting the ability to implement cost reductions, timing of proposed transactions, and manufacturing optimization improvements in Huntsman businesses and realize anticipated cost savings, ability to achieve projected synergies, and other financial, economic, competitive, environmental, political, legal, regulatory and technological factors. The company assumes no obligation to provide revisions to any forward-looking statements should circumstances change, except as otherwise required by applicable laws.
View original content to download multimedia:http://www.prnewswire.com/news-releases/huntsman-completes-the-acquisition-of-gabriel-performance-products-further-expanding-its-specialty-chemicals-portfolio-301209534.html
SOURCE Huntsman Corporation
Article Date
1/15/2021Huntsman to Discuss Fourth Quarter 2020 Results on February 12, 2021
Source: PR Newswire
Orignial Article: https://contentapi.cision...
THE WOODLANDS, Texas, Jan. 12, 2021 /PRNewswire/ -- Huntsman Corporation (NYSE: HUN) will hold a conference call on Friday, February 12, 2021, at 10:00 a.m. ET to discuss its fourth quarter 2020 financial results, which will be released at approximately 6:00 a.m. ET that day.
Webcast link:
https://78449.themediaframe.com/dataconf/productusers/hun/mediaframe/42984/indexl.html
Participant dial-in numbers:
Domestic callers: (877) 402-8037
International callers: (201) 378-4913
The conference call will be accompanied by presentation slides that will be accessible via the webcast link and Huntsman's investor relations website, ir.huntsman.com. Upon conclusion of the call, the webcast replay will be accessible via Huntsman's website.
About Huntsman:
Huntsman Corporation is a publicly traded global manufacturer and marketer of differentiated and specialty chemicals with 2019 revenues of approximately $7 billion. Our chemical products number in the thousands and are sold worldwide to manufacturers serving a broad and diverse range of consumer and industrial end markets. We operate more than 70 manufacturing, R&D and operations facilities in approximately 30 countries and employ approximately 9,000 associates within our four distinct business divisions. For more information about Huntsman, please visit the company's website at www.huntsman.com.
Social Media:
Twitter: www.twitter.com/Huntsman_Corp
Facebook: www.facebook.com/huntsmancorp
LinkedIn: www.linkedin.com/company/huntsman
Forward-Looking Statements:
Certain information in this release constitutes forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. These statements are based on management's current beliefs and expectations. The forward-looking statements in this release are subject to uncertainty and changes in circumstances and involve risks and uncertainties that may affect the company's operations, markets, products, services, prices and other factors as discussed under the caption "Risk Factors" in the Huntsman companies' filings with the U.S. Securities and Exchange Commission. Significant risks and uncertainties may relate to, but are not limited to, volatile global economic conditions, cyclical and volatile product markets, disruptions in production at manufacturing facilities, reorganization or restructuring of Huntsman's operations, including any delay of, or other negative developments affecting the ability to implement cost reductions, timing of proposed transactions, and manufacturing optimization improvements in Huntsman businesses and realize anticipated cost savings, and other financial, economic, competitive, environmental, political, legal, regulatory and technological factors. The company assumes no obligation to provide revisions to any forward-looking statements should circumstances change, except as otherwise required by applicable laws.
View original content to download multimedia:http://www.prnewswire.com/news-releases/huntsman-to-discuss-fourth-quarter-2020-results-on-february-12-2021-301206968.html
SOURCE Huntsman Corporation
Article Date
1/12/2021Huntsman Completes the Sale of Shares in Venator Materials PLC
Source: PR Newswire
THE WOODLANDS, Texas, Dec. 23, 2020 /PRNewswire/ -- Huntsman Corporation (NYSE: HUN) announced today that it has completed the sale of approximately 42.4 million ordinary shares of Venator Materials PLC to funds advised by SK Capital Partners, LP. The Company received approximately $100 million in cash, which includes $8 million for a 30-month option for the sale of the remaining approximate 9.7 million ordinary shares held by Huntsman at $2.15 per share. Together with immediate cash tax savings of approximately $150 million from offsetting the capital loss on the sale of Venator shares against the capital gain realized on the sale of our chemical intermediates and surfactants businesses that closed in early January of this year, Huntsman secured an aggregate total related benefit of approximately $250 million in cash this year.
Peter Huntsman, CEO and Chairman, commented, "We are pleased to have completed this transaction before year end enabling us to reduce our current tax obligations by $150 million. Venator has a bright future as Tio2 markets strengthen and the business continues to improve. I am confident that SK Capital has the capacity to even further enhance Venator's prospects."
About Huntsman:
Huntsman Corporation is a publicly traded global manufacturer and marketer of differentiated and specialty chemicals with 2019 revenues of approximately $7 billion. Our chemical products number in the thousands and are sold worldwide to manufacturers serving a broad and diverse range of consumer and industrial end markets. We operate more than 70 manufacturing, R&D and operations facilities in approximately 30 countries and employ approximately 9,000 associates within our four distinct business divisions. For more information about Huntsman, please visit the company's website at www.huntsman.com.
Social Media:
Twitter: www.twitter.com/Huntsman_Corp
Facebook: www.facebook.com/huntsmancorp
LinkedIn: www.linkedin.com/company/huntsman
Forward-Looking Statements:
Certain information in this release constitutes forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. These statements are based on management's current beliefs and expectations. The forward-looking statements in this release are subject to uncertainty and changes in circumstances and involve risks and uncertainties that may affect the company's operations, markets, products, services, prices and other factors as discussed under the caption "Risk Factors" in the Huntsman companies' filings with the U.S. Securities and Exchange Commission. Significant risks and uncertainties may relate to, but are not limited to, volatile global economic conditions, cyclical and volatile product markets, disruptions in production at manufacturing facilities, reorganization or restructuring of Huntsman's operations, including any delay of, or other negative developments affecting the ability to implement cost reductions, timing of proposed transactions, and manufacturing optimization improvements in Huntsman businesses and realize anticipated cost savings, ability to achieve projected synergies, and other financial, economic, competitive, environmental, political, legal, regulatory and technological factors. The company assumes no obligation to provide revisions to any forward-looking statements should circumstances change, except as otherwise required by applicable laws.
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SOURCE Huntsman Corporation
Article Date
12/23/2020Venator Announces Closing of Major Investment from SK Capital Partners
Source: PR Newswire
WYNYARD, UK, Dec. 23, 2020 /PRNewswire/ -- Venator Materials PLC (NYSE: VNTR) ("Venator") announced today that funds advised by SK Capital Partners, L.P. have closed on the previously announced agreement to purchase approximately 42.4 million shares, representing just under 40% of Venator's outstanding shares, from Huntsman Corporation (NYSE: HUN) for a purchase price of approximately $100 million. The agreement also includes a 30-month option pursuant to which SK Capital can elect to purchase Huntsman's remaining approximate 9.7 million shares.
Simon Turner, President and CEO of Venator, commented, "SK Capital's significant investment in Venator marks a major milestone for Venator and our natural progression as a standalone public entity following our initial public offering in August, 2017. We are excited to engage with Barry Siadat and the SK Capital team, who have a strong reputation within the chemical industry for supporting long term growth and innovation.
Our business is poised for increased shareholder value creation as demand for our world class functional and specialty products continues to strengthen. Additionally, we have completed consultations with employee representatives at our German manufacturing facilities and are well positioned to deliver the full $55 million in EBITDA improvement from our 2020 Business Improvement Program over the next two years. We look forward to implementing additional steps to strengthen our business and further unlock shareholder value."
About Venator
Venator is a global manufacturer and marketer of chemical products that comprise a broad range of pigments and additives that bring color and vibrancy to buildings, protect and extend product life, and reduce energy consumption. We market our products globally to a diversified group of industrial customers through two segments: Titanium Dioxide, which consists of our TiO2 business, and Performance Additives, which consists of our functional additives, color pigments, timber treatment and water treatment businesses. We operate 24 facilities, employ approximately 4,000 associates worldwide and sell our products in more than 110 countries.
Cautionary Statement Concerning Forward-Looking Statements
Certain statements contained in this press release constitute "forward looking statements" within the meaning of the U.S. Private Securities Litigation Reform Act of 1995. These forward looking statements represent Venator's expectations or beliefs concerning future events, and it is possible that the expected results described in this press release will not be achieved. These forward looking statements are subject to risks, uncertainties and other factors, many of which are outside of Venator's control, that could cause actual results to differ materially from the results discussed in the forward looking statements, including the impacts and duration of the global outbreak of the Coronavirus Disease 2019 pandemic on the global economy and all aspects of our business, including our employees, customers, suppliers, partners, results of operations, financial condition and liquidity, global economic conditions, our ability to maintain sufficient working capital, our ability to access capital markets on favorable terms, our ability to transfer technology and manufacturing capacity from our Pori, Finland manufacturing facility to other sites in our manufacturing network, the costs associated with such transfer and the closure of our Pori facility, our ability to realize financial and operational benefits from our business improvement plans and initiatives, impacts on TiO2 markets and the broader global economy from the imposition of tariffs by the U.S. and other countries, changes in raw material and energy prices, or interruptions in raw materials and energy, industry production capacity and operating rates, the supply demand balance for our products and that of competing products, pricing pressures, technological developments, legal claims by or against us, changes in government regulations, including increased manufacturing, labeling and waste disposal regulations and the classification of TiO2 as a carcinogen in the EU, geopolitical events, cyberattacks and public health crises such as coronavirus.
Any forward looking statement speaks only as of the date on which it is made, and, except as required by law, Venator does not undertake any obligation to update or revise any forward looking statement, whether as a result of new information, future events or otherwise. New factors emerge from time to time, and it is not possible for Venator to predict all such factors. When considering these forward looking statements, you should keep in mind the risk factors and other cautionary statements in Venator's Annual Report on Form 10-K for the year ended December 31, 2019 filed with the SEC and in its Quarterly Reports on Form 10-Q and Current Reports on Form 8-K. The risk factors and other factors noted therein could cause its actual results to differ materially from those contained in any forward looking statement.
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SOURCE Venator Materials PLC
Article Date
12/23/202012/10/2020 - Huntsman Updates its Fourth Quarter Outlook
Huntsman Updates its Fourth Quarter Outlook
Source: PR Newswire
THE WOODLANDS, Texas, Dec. 10, 2020 /PRNewswire/ -- Huntsman Corporation (NYSE: HUN) today updated its fourth quarter 2020 outlook. Overall the Company currently expects its fourth quarter adjusted EBITDA to be better than its prior guidance and above the prior year by between 20% and 25%. For the Polyurethanes segment, fourth quarter adjusted EBITDA is now expected to be better than third quarter 2020 adjusted EBITDA by at least 20%. The increase versus the previous guidance is being driven by stronger than expected overall demand as well as higher MDI component margins, most notably in Asia. For the Performance Products segment, fourth quarter adjusted EBITDA is currently expected to be better than third quarter 2020 by nearly 15%. For the Advanced Materials segment, fourth quarter adjusted EBITDA is now expected to be approximately in-line with the third quarter 2020. For the Textile Effects segment, fourth quarter adjusted EBITDA is now expected to be approximately flat with the prior year fourth quarter.
The Company remains on-track to close on the sale of approximately 42.5 million shares it holds in Venator Materials PLC to funds managed by SK Capital Partners, LP before year-end 2020. Additionally, the Company intends to redeem in full €445 million in aggregate principal amount of its 5.125% Senior Notes due 2021 at par with available liquidity. The redemption date will be January 15, 2021, and the redemption price will equal to 100% of the principal amount of the notes, plus accrued and unpaid interest on the redemption date. Redeeming the notes will reduce the Company's interest expense by approximately $25 million on an annual basis.
About Huntsman:
Huntsman Corporation is a publicly traded global manufacturer and marketer of differentiated and specialty chemicals with 2019 revenues of approximately $7 billion. Our chemical products number in the thousands and are sold worldwide to manufacturers serving a broad and diverse range of consumer and industrial end markets. We operate more than 70 manufacturing, R&D and operations facilities in approximately 30 countries and employ approximately 9,000 associates within our four distinct business divisions. For more information about Huntsman, please visit the company's website at www.huntsman.com.
Social Media:
Twitter: www.twitter.com/Huntsman_Corp
Facebook: www.facebook.com/huntsmancorp
LinkedIn: www.linkedin.com/company/huntsman
Forward-Looking Statements:
Certain information in this release constitutes forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. These statements are based on management's current beliefs and expectations. The forward-looking statements in this release are subject to uncertainty and changes in circumstances and involve risks and uncertainties that may affect the company's operations, markets, products, services, prices and other factors as discussed under the caption "Risk Factors" in the Huntsman companies' filings with the U.S. Securities and Exchange Commission. Significant risks and uncertainties may relate to, but are not limited to, volatile global economic conditions, cyclical and volatile product markets, disruptions in production at manufacturing facilities, reorganization or restructuring of Huntsman's operations, including any delay of, or other negative developments affecting the ability to implement cost reductions, timing of proposed transactions, and manufacturing optimization improvements in Huntsman businesses and realize anticipated cost savings, ability to achieve projected synergies, and other financial, economic, competitive, environmental, political, legal, regulatory and technological factors. The company assumes no obligation to provide revisions to any forward-looking statements should circumstances change, except as otherwise required by applicable laws.
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SOURCE Huntsman Corporation
Article Date
12/10/2020Huntsman Announces the Acquisition of Gabriel Performance Products, Further Expanding its Specialty Chemicals Portfolio
Source: PR Newswire
THE WOODLANDS, Texas, Dec. 7, 2020 /PRNewswire/ -- Huntsman Corporation (NYSE: HUN) today announced its agreement to acquire Gabriel Performance Products, a North American specialty chemical manufacturer of specialty additives and epoxy curing agents for the coatings, adhesives, sealants and composite end-markets, from funds owned by Audax Private Equity.
Under terms of the agreement, Huntsman will pay $250 million, subject to customary closing adjustments, in an all-cash transaction funded from available liquidity. Gabriel had 2019 revenues of approximately $106 million with three manufacturing facilities located in Ashtabula, Ohio, Harrison City, Pennsylvania and Rock Hill, South Carolina. Based on calendar year 2019, the purchase price represents an adjusted EBITDA multiple of approximately 11 times, or approximately 8 times pro forma for synergies. The transaction is expected to close in the first quarter of 2021 after regulatory approvals.
Commenting on the acquisition, Scott Wright, President of Huntsman's Advanced Materials division, said: "The acquisition of Gabriel Performance Products broadens the offering in our specialty portfolio and is complementary to our recent acquisition of CVC Thermoset Specialties. Gabriel makes highly specialized toughening and curing agents and other additives used in a wide range of composite, adhesive and coatings applications. We expect that the Gabriel business will strengthen our North America footprint and provide significant commercial synergies as we expand and globalize their specialty products across our global footprint and customer base. The acquisition will further enhance our competitiveness and our world class formulations business by improving our ability to create differentiation in our customers' applications."
Peter Huntsman, Chairman, President and CEO further commented: "With this acquisition we conclude a series of strategic initiatives in our Advanced Materials division we started in 2019 before the COVID-19 pandemic. Our initial intent was to complete the acquisitions of Gabriel and CVC simultaneously, together with the divestiture of our India DIY business earlier this year. Despite the challenges created by COVID, I am pleased that we have already closed on two of the transactions and intend to close on the acquisition of Gabriel within the first quarter of 2021. We have significantly strengthened our Advanced Material's portfolio and broadened our offerings to the market. Based on 2019 results, when netting the three transactions together, we are adding approximately $57 million of adjusted EBITDA pro forma for synergies to our Advanced Materials division, for less than 5 times EBITDA."
About Huntsman:
Huntsman Corporation is a publicly traded global manufacturer and marketer of differentiated and specialty chemicals with 2019 revenues of approximately $7 billion. Our chemical products number in the thousands and are sold worldwide to manufacturers serving a broad and diverse range of consumer and industrial end markets. We operate more than 70 manufacturing, R&D and operations facilities in approximately 30 countries and employ approximately 9,000 associates within our four distinct business divisions. For more information about Huntsman, please visit the company's website at www.huntsman.com.
Social Media:
Twitter: www.twitter.com/Huntsman_Corp
Facebook: www.facebook.com/huntsmancorp
LinkedIn: www.linkedin.com/company/huntsman
Forward-Looking Statements:
Certain information in this release constitutes forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. These statements are based on management's current beliefs and expectations. The forward-looking statements in this release are subject to uncertainty and changes in circumstances and involve risks and uncertainties that may affect the company's operations, markets, products, services, prices and other factors as discussed under the caption "Risk Factors" in the Huntsman companies' filings with the U.S. Securities and Exchange Commission. Significant risks and uncertainties may relate to, but are not limited to, volatile global economic conditions, cyclical and volatile product markets, disruptions in production at manufacturing facilities, reorganization or restructuring of Huntsman's operations, including any delay of, or other negative developments affecting the ability to implement cost reductions, timing of proposed transactions, and manufacturing optimization improvements in Huntsman businesses and realize anticipated cost savings, ability to achieve projected synergies, and other financial, economic, competitive, environmental, political, legal, regulatory and technological factors. The company assumes no obligation to provide revisions to any forward-looking statements should circumstances change, except as otherwise required by applicable laws.
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SOURCE Huntsman Corporation
Article Date
12/7/2020Huntsman Completes the Sale of its India Based DIY Consumer Adhesives Business
Source: PR Newswire
THE WOODLANDS, Texas, Nov. 3, 2020 /PRNewswire/ -- Huntsman Corporation (NYSE: HUN) announced today that it has completed the sale of its India based Do-It-Yourself consumer adhesives business, within its Advanced Materials division, to Pidilite Industries Ltd. in an all-cash transaction. Huntsman received pre-tax proceeds of approximately $257 million on November 3, 2020, excluding working capital and other adjustments. Taxes on the transaction are estimated to be just under 10 percent. Under the terms of the agreement Huntsman may receive up to approximately $28 million of additional cash under an earnout within 18 months if the business achieves sales revenue in-line with 2019, for a total value of up to $285 million, excluding working capital and other adjustments. The total transaction value represents a 2019 adjusted EBITDA multiple of approximately 15 times.
About Huntsman:
Huntsman Corporation is a publicly traded global manufacturer and marketer of differentiated and specialty chemicals with 2019 revenues of approximately $7 billion. Our chemical products number in the thousands and are sold worldwide to manufacturers serving a broad and diverse range of consumer and industrial end markets. We operate more than 70 manufacturing, R&D and operations facilities in approximately 30 countries and employ approximately 9,000 associates within our four distinct business divisions. For more information about Huntsman, please visit the company's website at www.huntsman.com.
Social Media:
Twitter: www.twitter.com/Huntsman_Corp
Facebook: www.facebook.com/huntsmancorp
LinkedIn: www.linkedin.com/company/huntsman
Forward-Looking Statements:
Certain information in this release constitutes forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. These statements are based on management's current beliefs and expectations. The forward-looking statements in this release are subject to uncertainty and changes in circumstances and involve risks and uncertainties that may affect the company's operations, markets, products, services, prices and other factors as discussed under the caption "Risk Factors" in the Huntsman companies' filings with the U.S. Securities and Exchange Commission. Significant risks and uncertainties may relate to, but are not limited to, volatile global economic conditions, cyclical and volatile product markets, disruptions in production at manufacturing facilities, reorganization or restructuring of Huntsman's operations, including any delay of, or other negative developments affecting the ability to implement cost reductions, timing of proposed transactions, and manufacturing optimization improvements in Huntsman businesses and realize anticipated cost savings, and other financial, economic, competitive, environmental, political, legal, regulatory and technological factors. The company assumes no obligation to provide revisions to any forward-looking statements should circumstances change, except as otherwise required by applicable laws.
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SOURCE Huntsman Corporation
Article Date
11/3/2020Huntsman Announces Fourth Quarter 2020 Common Dividend
Source: PR Newswire
THE WOODLANDS, Texas, Nov. 2, 2020 /PRNewswire/ -- Huntsman Corporation (NYSE: HUN) today announced that its board of directors has declared a $0.1625 per share cash dividend on its common stock. The dividend is payable on December 31, 2020, to stockholders of record as of December 15, 2020.
About Huntsman:
Huntsman Corporation is a publicly traded global manufacturer and marketer of differentiated and specialty chemicals with 2019 revenues of approximately $7 billion. Our chemical products number in the thousands and are sold worldwide to manufacturers serving a broad and diverse range of consumer and industrial end markets. We operate more than 70 manufacturing, R&D and operations facilities in approximately 30 countries and employ approximately 9,000 associates within our four distinct business divisions. For more information about Huntsman, please visit the company's website at www.huntsman.com.
Social Media:
Twitter: www.twitter.com/Huntsman_Corp
Facebook: www.facebook.com/huntsmancorp
LinkedIn: www.linkedin.com/company/huntsman
Forward-Looking Statements:
Certain information in this release constitutes forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. These statements are based on management's current beliefs and expectations. The forward-looking statements in this release are subject to uncertainty and changes in circumstances and involve risks and uncertainties that may affect the company's operations, markets, products, services, prices and other factors as discussed under the caption "Risk Factors" in the Huntsman companies' filings with the U.S. Securities and Exchange Commission. Significant risks and uncertainties may relate to, but are not limited to, volatile global economic conditions, cyclical and volatile product markets, disruptions in production at manufacturing facilities, reorganization or restructuring of Huntsman's operations, including any delay of, or other negative developments affecting the ability to implement cost reductions, timing of proposed transactions, and manufacturing optimization improvements in Huntsman businesses and realize anticipated cost savings, and other financial, economic, competitive, environmental, political, legal, regulatory and technological factors. The company assumes no obligation to provide revisions to any forward-looking statements should circumstances change, except as otherwise required by applicable laws.
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SOURCE Huntsman Corporation
Article Date
11/2/2020Huntsman Announces Third Quarter 2020 Earnings; Solid Recovery Trends in Core Markets
Source: PR Newswire
THE WOODLANDS, Texas, Oct. 29, 2020 /PRNewswire/ --
Third Quarter Highlights
Three months ended | Nine months ended | |||||||
September 30, | September 30, | |||||||
In millions, except per share amounts | 2020 | 2019 | 2020 | 2019 | ||||
Revenues | $ 1,510 | $ 1,687 | $ 4,350 | $ 5,140 | ||||
Net income | $ 57 | $ 41 | $ 706 | $ 290 | ||||
Adjusted net income(1) | $ 70 | $ 95 | $ 105 | $ 288 | ||||
Diluted income per share | $ 0.22 | $ 0.13 | $ 3.13 | $ 1.12 | ||||
Adjusted diluted income per share(1) | $ 0.32 | $ 0.41 | $ 0.47 | $ 1.24 | ||||
Adjusted EBITDA(1) | $ 188 | $ 215 | $ 407 | $ 664 | ||||
Net cash provided by operating activities from continuing operations | $ 65 | $ 257 | $ 110 | $ 434 | ||||
Free cash flow from continuing operations(2) | $ 11 | $ 194 | $ (60) | $ 253 | ||||
Adjusted free cash flow from continuing operations(6) | $ 189 | $ 194 | $ 128 | $ 253 | ||||
See end of press release for footnote explanations and reconciliations of non-GAAP measures. | ||||||||
Huntsman Corporation (NYSE: HUN) today reported third quarter 2020 results with revenues of $1,510 million, net income of $57 million, adjusted net income of $70 million and adjusted EBITDA of $188 million.
Peter R. Huntsman, Chairman, President and CEO, commented:
"The third quarter proved to be better than we had anticipated with improving conditions in almost all of our businesses except for commercial aircraft. Although the global community continues to face significant challenges around COVID-19, we see positive momentum entering the fourth quarter. We remain fully on track in integrating our two downstream acquisitions completed earlier this year and in delivering in excess of $100 million of annualized synergies and savings from our previously announced cost optimization initiative by the end of 2021. We are also on track to close on the sale of our Venator shares near the end of 2020 further bolstering our liquidity and balance sheet with approximately $250 million of total related cash. During 2020, a year that history will remember for unprecedented challenges, more than ever before Huntsman has become significantly stronger, further focused on strategically growing its differentiated businesses and enhancing shareholder value."
Segment Analysis for 3Q20 Compared to 3Q19
Polyurethanes
The decrease in revenues in our Polyurethanes segment for the three months ended September 30, 2020 compared to the same period of 2019 was primarily due to lower MDI average selling prices. MDI average selling prices decreased across most major markets in relation to the global economic slowdown resulting from the COVID-19 pandemic. Overall polyurethanes sales volumes were roughly flat, when including sales volumes in connection with the Icynene-Lapolla Acquisition. The increase in segment adjusted EBITDA was primarily due to lower raw material costs and lower fixed costs as well as additional sales volumes in connection with the Icynene-Lapolla Acquisition, partially offset by lower MDI pricing.
Performance Products
The decrease in revenues in our Performance Products segment for the three months ended September 30, 2020 compared to the same period of 2019 was due to lower sales volumes and lower average selling prices. Sales volumes decreased primarily in relation to the global economic slowdown. Average selling prices decreased primarily due to lower raw material costs. The decrease in segment adjusted EBITDA was primarily due to lower sales volumes, partially offset by higher margins in our performance amines business and lower fixed costs.
Advanced Materials
The decrease in revenues in our Advanced Materials segment for the three months ended September 30, 2020 compared to the same period in 2019 was due to lower sales volumes and lower overall average selling prices. Sales volumes decreased across all markets and regions, except in our global power market, primarily in relation to the global economic slowdown and customer destocking. Despite local currency average selling prices remaining unchanged, overall average selling prices decreased due to the impact of a stronger U.S. dollar against major international currencies. The decrease in segment adjusted EBITDA was primarily due to lower sales volumes, partially offset by lower fixed costs.
Textile Effects
The decrease in revenues in our Textile Effects segment for the three months ended September 30, 2020 compared to the same period of 2019 was due to lower sales volumes and lower average selling prices. Sales volumes decreased primarily due to weaker demand in relation to the global economic slowdown. Average selling prices decreased as a result of product mix change, competitive market pressures and the impact of a stronger U.S. dollar against major international currencies. The decrease in segment adjusted EBITDA was primarily due to lower sales revenues and lower capitalization of indirect costs because of reduced production, partially offset by lower raw material costs and lower fixed costs.
Corporate, LIFO and other
For the three months ended September 30, 2020, adjusted EBITDA from Corporate and other for Huntsman Corporation decreased by $1 million to a loss of $37 million from a loss of $36 million for the same period of 2019.
Liquidity and Capital Resources
During the three months ended September 30, 2020, our adjusted free cash flow from continuing operations was $189 million as compared to $194 million in the prior year period. As of September 30, 2020, we had approximately $2.5 billion of combined cash and unused borrowing capacity.
During the three months ended September 30, 2020, we spent $54 million on capital expenditures as compared to $63 million in the same period of 2019. For 2020 we expect to spend between $250 million to $255 million on capital expenditures.
Year to date we paid approximately $188 million in taxes related to the sale of our Chemical Intermediates Businesses, which was completed on January 3, 2020, and we expect to spend an additional $187 million within the fourth quarter. However, depending upon the timing of the completion of the sale of most of our Venator shares, which is expected near year-end, the net amount of taxes to be paid in the fourth quarter may be reduced by approximately $150 million.
Income Taxes
In the third quarter 2020, our adjusted effective tax rate was 23%. For 2020, our adjusted effective tax rate is expected to be approximately 20% - 22%. We expect our forward adjusted effective tax rate will be approximately 22% - 24%.
Earnings Conference Call Information
We will hold a conference call to discuss our third quarter 2020 financial results on Thursday, October 29, 2020 at 10:00 a.m. ET.
Webcast link: https://78449.themediaframe.com/dataconf/productusers/hun/mediaframe/41067/indexl.html
Participant dial-in numbers: | |
Domestic callers: | (877) 402-8037 |
International callers: | (201) 378-4913 |
The conference call will be accompanied by presentation slides that will be accessible via the webcast link and Huntsman's investor relations website, ir.huntsman.com. Upon conclusion of the call, the webcast replay will be accessible via Huntsman's website.
Upcoming Conferences
During the fourth quarter 2020, a member of management is expected to present at:
Morgan Stanley Virtual Global Chemicals Conference on November 10, 2020
Citi Basic Materials Virtual Conference on December 1, 2020
A webcast of the presentation, if applicable, along with accompanying materials will be available at ir.huntsman.com.
Table 1 – Results of Operations | ||||||||
Three months ended | Nine months ended | |||||||
September 30, | September 30, | |||||||
In millions, except per share amounts | 2020 | 2019 | 2020 | 2019 | ||||
Revenues | $ 1,510 | $ 1,687 | $ 4,350 | $ 5,140 | ||||
Cost of goods sold | 1,231 | 1,347 | 3,612 | 4,068 | ||||
Gross profit | 279 | 340 | 738 | 1,072 | ||||
Operating expenses | 208 | 231 | 660 | 695 | ||||
Restructuring, impairment and plant closing costs (credits) | 12 | (43) | 34 | (42) | ||||
Operating income | 59 | 152 | 44 | 419 | ||||
Interest expense | (24) | (27) | (63) | (86) | ||||
Equity in income of investment in unconsolidated affiliates | 21 | 19 | 25 | 41 | ||||
Fair value adjustments to Venator investment | 6 | (148) | (100) | (90) | ||||
Loss on early extinguishment of debt | - | - | - | (23) | ||||
Other income, net | 10 | 7 | 27 | 16 | ||||
Income (loss) from continuing operations before income taxes | 72 | 3 | (67) | 277 | ||||
Income tax expense | (15) | (30) | (9) | (113) | ||||
Income (loss) from continuing operations | 57 | (27) | (76) | 164 | ||||
Income from discontinued operations, net of tax(3) | - | 68 | 782 | 126 | ||||
Net income | 57 | 41 | 706 | 290 | ||||
Net income attributable to noncontrolling interests, net of tax | (9) | (11) | (15) | (31) | ||||
Net income attributable to Huntsman Corporation | $ 48 | $ 30 | $ 691 | $ 259 | ||||
Adjusted EBITDA(1) | $ 188 | $ 215 | $ 407 | $ 664 | ||||
Adjusted net income(1) | $ 70 | $ 95 | $ 105 | $ 288 | ||||
Basic income per share | $ 0.22 | $ 0.13 | $ 3.13 | $ 1.12 | ||||
Diluted income per share | $ 0.22 | $ 0.13 | $ 3.13 | $ 1.12 | ||||
Adjusted diluted income per share(1) | $ 0.32 | $ 0.41 | $ 0.47 | $ 1.24 | ||||
Common share information: | ||||||||
Basic weighted average shares | 220 | 227 | 221 | 230 | ||||
Diluted weighted average shares | 221 | 227 | 221 | 232 | ||||
Diluted shares for adjusted diluted income per share | 221 | 229 | 222 | 232 | ||||
See end of press release for footnote explanations. | ||||||||
Table 2 – Results of Operations by Segment | ||||||||||||
Three months ended | Nine months ended | |||||||||||
September 30, | Better / | September 30, | Better / | |||||||||
In millions | 2020 | 2019 | (Worse) | 2020 | 2019 | (Worse) | ||||||
Segment Revenues: | ||||||||||||
Polyurethanes | $ 936 | $ 993 | (6%) | $ 2,554 | $ 2,931 | (13%) | ||||||
Performance Products | 238 | 281 | (15%) | 758 | 880 | (14%) | ||||||
Advanced Materials | 199 | 256 | (22%) | 632 | 803 | (21%) | ||||||
Textile Effects | 142 | 179 | (21%) | 424 | 583 | (27%) | ||||||
Corporate and Eliminations | (5) | (22) | n/m | (18) | (57) | n/m | ||||||
Total | $ 1,510 | $ 1,687 | (10%) | $ 4,350 | $ 5,140 | (15%) | ||||||
Segment Adjusted EBITDA(1): | ||||||||||||
Polyurethanes | $ 156 | $ 146 | 7% | $ 271 | $ 426 | (36%) | ||||||
Performance Products | 36 | 38 | (5%) | 123 | 125 | (2%) | ||||||
Advanced Materials | 25 | 51 | (51%) | 103 | 159 | (35%) | ||||||
Textile Effects | 8 | 16 | (50%) | 24 | 66 | (64%) | ||||||
Corporate, LIFO and other | (37) | (36) | (3%) | (114) | (112) | (2%) | ||||||
Total | $ 188 | $ 215 | (13%) | $ 407 | $ 664 | (39%) | ||||||
n/m = not meaningful | ||||||||||||
See end of press release for footnote explanations. | ||||||||||||
Table 3 – Factors Impacting Sales Revenue | ||||||||||
Three months ended | ||||||||||
September 30, 2020 vs. 2019 | ||||||||||
Average Selling Price(a) | ||||||||||
Local | Exchange | Sales Mix | Sales | |||||||
Currency | Rate | & Other | Volume(b) | Total | ||||||
Polyurethanes | (5%) | 1% | (2%) | 0% | (6%) | |||||
Performance Products | (3%) | 1% | 6% | (19%) | (15%) | |||||
Advanced Materials | 0% | (1%) | (10%) | (11%) | (22%) | |||||
Textile Effects | (7%) | (2%) | 1% | (13%) | (21%) | |||||
Nine months ended | ||||||||||
September 30, 2020 vs. 2019 | ||||||||||
Average Selling Price(a) | ||||||||||
Local | Exchange | Sales Mix | Sales | |||||||
Currency | Rate | & Other | Volume(b) | Total | ||||||
Polyurethanes | (6%) | (1%) | 0% | (6%) | (13%) | |||||
Performance Products | (5%) | (1%) | 5% | (13%) | (14%) | |||||
Advanced Materials | 1% | (2%) | (2%) | (18%) | (21%) | |||||
Textile Effects | (2%) | (2%) | (2%) | (21%) | (27%) | |||||
(a) Excludes sales from tolling arrangements, by-products and raw materials. | ||||||||||
(b) Excludes sales from by-products and raw materials. | ||||||||||
Table 4 – Reconciliation of U.S. GAAP to Non-GAAP Measures | ||||||||||||||||
Income Tax | Diluted Income | |||||||||||||||
EBITDA | (Expense) Benefit | Net Income | Per Share | |||||||||||||
Three months ended | Three months ended | Three months ended | Three months ended | |||||||||||||
September 30, | September 30, | September 30, | September 30, | |||||||||||||
In millions, except per share amounts | 2020 | 2019 | 2020 | 2019 | 2020 | 2019 | 2020 | 2019 | ||||||||
Net income | $ 57 | $ 41 | $ 57 | $ 41 | $ 0.26 | $ 0.18 | ||||||||||
Net income attributable to noncontrolling interests | (9) | (11) | (9) | (11) | (0.04) | (0.05) | ||||||||||
Net income attributable to Huntsman Corporation | 48 | 30 | 48 | 30 | 0.22 | 0.13 | ||||||||||
Interest expense from continuing operations | 24 | 27 | ||||||||||||||
Income tax expense from continuing operations | 15 | 30 | $ (15) | $ (30) | ||||||||||||
Income tax expense from discontinued operations(3) | - | 25 | ||||||||||||||
Depreciation and amortization from continuing operations | 70 | 65 | ||||||||||||||
Depreciation and amortization from discontinued operations(3) | - | 13 | ||||||||||||||
Business acquisition and integration expenses and purchase accounting inventory adjustments | 9 | 3 | (3) | (1) | 6 | 2 | 0.03 | 0.01 | ||||||||
EBITDA / Income from discontinued operations, net of tax(3) | - | (106) | N/A | N/A | - | (68) | - | (0.30) | ||||||||
Income from transition services arrangements | (1) | - | - | - | (1) | - | - | - | ||||||||
Fair value adjustments to Venator Investment(a) | (6) | 148 | - | - | (6) | 148 | (0.03) | 0.65 | ||||||||
Certain legal and other settlements and related (income) expenses | (4) | 1 | 1 | - | (3) | 1 | (0.01) | - | ||||||||
Certain non-recurring information technology project implementation costs | 1 | 1 | - | - | 1 | 1 | - | - | ||||||||
Amortization of pension and postretirement actuarial losses | 20 | 16 | (4) | (5) | 16 | 11 | 0.07 | 0.05 | ||||||||
Restructuring, impairment and plant closing and transition costs (credits) | 12 | (43) | (3) | 9 | 9 | (34) | 0.04 | (0.15) | ||||||||
Plant incident remediation costs | - | 5 | - | (1) | - | 4 | - | 0.02 | ||||||||
Adjusted(1) | $ 188 | $ 215 | $ (24) | $ (28) | $ 70 | $ 95 | $ 0.32 | $ 0.41 | ||||||||
Adjusted income tax expense(1) | $ 24 | $ 28 | ||||||||||||||
Net income attributable to noncontrolling interests, net of tax | 9 | 11 | ||||||||||||||
Adjusted pre-tax income(1) | $ 103 | $ 134 | ||||||||||||||
Adjusted effective tax rate(4) | 23% | 21% | ||||||||||||||
Effective tax rate | 21% | n/m | ||||||||||||||
Income Tax | Diluted Income | |||||||||||||||
EBITDA | (Expense) Benefit | Net Income | Per Share | |||||||||||||
Nine months ended | Nine months ended | Nine months ended | Nine months ended | |||||||||||||
September 30, | September 30, | September 30, | September 30, | |||||||||||||
In millions, except per share amounts | 2020 | 2019 | 2020 | 2019 | 2020 | 2019 | 2020 | 2019 | ||||||||
Net income | $ 706 | $ 290 | $ 706 | $ 290 | $ 3.20 | $ 1.25 | ||||||||||
Net income attributable to noncontrolling interests | (15) | (31) | (15) | (31) | (0.07) | (0.13) | ||||||||||
Net income attributable to Huntsman Corporation | 691 | 259 | 691 | 259 | 3.13 | 1.12 | ||||||||||
Interest expense from continuing operations | 63 | 86 | ||||||||||||||
Income tax expense from continuing operations | 9 | 113 | $ (9) | $ (113) | ||||||||||||
Income tax expense from discontinued operations(3) | 239 | 44 | ||||||||||||||
Depreciation and amortization from continuing operations | 206 | 201 | ||||||||||||||
Depreciation and amortization from discontinued operations(3) | - | 59 | ||||||||||||||
Business acquisition and integration expenses and purchase accounting inventory adjustments | 30 | 4 | (6) | (1) | 24 | 3 | 0.11 | 0.01 | ||||||||
EBITDA / Income from discontinued operations, net of tax(3) | (1,021) | (229) | N/A | N/A | (782) | (126) | (3.54) | (0.54) | ||||||||
U.S. tax reform impact on tax expense | - | - | - | 3 | - | 3 | - | 0.01 | ||||||||
Impact of Switzerland income tax rate change | - | - | - | 32 | - | 32 | - | 0.14 | ||||||||
Gain on sale of businesses/assets | (1) | - | - | - | (1) | - | - | - | ||||||||
Income from transition services arrangements | (6) | - | 1 | - | (5) | - | (0.02) | - | ||||||||
Fair value adjustments to Venator Investment(a) | 100 | 90 | - | - | 100 | 90 | 0.45 | 0.39 | ||||||||
Loss on early extinguishment of debt | - | 23 | - | (5) | - | 18 | - | 0.08 | ||||||||
Certain legal and other settlements and related expenses | 2 | 1 | - | - | 2 | 1 | 0.01 | - | ||||||||
Certain non-recurring information technology project implementation costs | 3 | 1 | - | - | 3 | 1 | 0.01 | - | ||||||||
Amortization of pension and postretirement actuarial losses | 57 | 49 | (12) | (13) | 45 | 36 | 0.20 | 0.16 | ||||||||
Restructuring, impairment and plant closing and transition costs (credits) | 34 | (42) | (7) | 9 | 27 | (33) | 0.12 | (0.14) | ||||||||
Plant incident remediation costs | 1 | 5 | - | (1) | 1 | 4 | - | 0.02 | ||||||||
Adjusted(1) | $ 407 | $ 664 | $ (33) | $ (89) | $ 105 | $ 288 | $ 0.47 | $ 1.24 | ||||||||
Adjusted income tax expense(1) | $ 33 | $ 89 | ||||||||||||||
Net income attributable to noncontrolling interests, net of tax | 15 | 31 | ||||||||||||||
Adjusted pre-tax income(1) | $ 153 | $ 408 | ||||||||||||||
Adjusted effective tax rate(4) | 22% | 22% | ||||||||||||||
Effective tax rate | (13%) | 41% | ||||||||||||||
(a) Represents the changes in market value in Huntsman's remaining interesting in Venator. | ||||||||||||||||
N/A = not applicable | ||||||||||||||||
See end of press release for footnote explanations. | ||||||||||||||||
Table 5 – Selected Balance Sheet Items | ||||
September 30, | December 31, | |||
In millions | 2020 | 2019 | ||
Cash | $ 1,168 | $ 525 | ||
Accounts and notes receivable, net | 889 | 953 | ||
Inventories | 819 | 914 | ||
Other current assets | 125 | 155 | ||
Current assets held for sale | - | 1,208 | ||
Property, plant and equipment, net | 2,477 | 2,383 | ||
Other noncurrent assets | 2,619 | 2,182 | ||
Total assets | $ 8,097 | $ 8,320 | ||
Accounts payable | $ 725 | $ 822 | ||
Other current liabilities | 629 | 462 | ||
Current portion of debt | 567 | 212 | ||
Current liabilities held for sale | - | 512 | ||
Long-term debt | 1,557 | 2,177 | ||
Other noncurrent liabilities | 1,242 | 1,311 | ||
Huntsman Corporation stockholders' equity | 3,222 | 2,687 | ||
Noncontrolling interests in subsidiaries | 155 | 137 | ||
Total liabilities and equity | $ 8,097 | $ 8,320 | ||
Table 6 – Outstanding Debt | ||||
September 30, | December 31, | |||
In millions | 2020 | 2019 | ||
Debt: | ||||
Revolving credit facility | $ - | $ 40 | ||
Accounts receivable programs | 52 | 167 | ||
Term loan | - | 103 | ||
Senior notes | 2,003 | 1,963 | ||
Variable interest entities | 50 | 65 | ||
Other debt | 19 | 51 | ||
Total debt - excluding affiliates | 2,124 | 2,389 | ||
Total cash | 1,168 | 525 | ||
Net debt - excluding affiliates(5) | $ 956 | $ 1,864 | ||
See end of press release for footnote explanations. | ||||
Table 7 – Summarized Statement of Cash Flows | ||||||||
Three months ended | Nine months ended | |||||||
September 30, | September 30, | |||||||
In millions | 2020 | 2019 | 2020 | 2019 | ||||
Total cash at beginning of period | $ 1,254 | $ 449 | $ 525 | $ 340 | ||||
Net cash provided by operating activities from continuing operations | 65 | 257 | 110 | 434 | ||||
Net cash provided by (used in) operating activities from discontinued operations(3) | 18 | 126 | (22) | 222 | ||||
Net cash (used in) provided by investing activities from continuing operations | (47) | (11) | 1,105 | (111) | ||||
Net cash used in investing activities from discontinued operations(3) | - | (13) | - | (31) | ||||
Net cash used in financing activities | (129) | (383) | (546) | (431) | ||||
Effect of exchange rate changes on cash | 7 | (7) | (4) | (5) | ||||
Total cash at end of period | $ 1,168 | $ 418 | $ 1,168 | $ 418 | ||||
Free cash flow from continuing operations(2): | ||||||||
Net cash provided by operating activities | $ 65 | $ 257 | $ 110 | $ 434 | ||||
Capital expenditures | (54) | (63) | (170) | (181) | ||||
Free cash flow from continuing operations | $ 11 | $ 194 | $ (60) | $ 253 | ||||
Taxes paid on sale of Chemical Intermediates Businesses | $ 178 | $ - | $ 188 | $ - | ||||
Adjusted free cash flow from continuing operations(6): | $ 189 | $ 194 | $ 128 | $ 253 | ||||
Supplemental cash flow information: | ||||||||
Cash paid for interest | $ (9) | $ (12) | $ (49) | $ (65) | ||||
Cash paid for income taxes | (187) | (34) | (242) | (102) | ||||
Cash paid for restructuring and integration | (10) | (3) | (24) | (14) | ||||
Cash paid for pensions | (27) | (29) | (73) | (68) | ||||
Depreciation and amortization | 70 | 65 | 206 | 201 | ||||
Change in primary working capital: | ||||||||
Accounts and notes receivable | $ (76) | $ 116 | $ 103 | $ 69 | ||||
Inventories | 75 | (5) | 154 | 19 | ||||
Accounts payable | 111 | (4) | (85) | (16) | ||||
Total change in primary working capital | $ 110 | $ 107 | $ 172 | $ 72 | ||||
See end of press release for footnote explanations. | ||||||||
Footnotes | |
(1) | We use adjusted EBITDA to measure the operating performance of our business and for planning and evaluating the performance of our business segments. We provide adjusted net income because we feel it provides meaningful insight for the investment community into the performance of our business. We believe that net income (loss) is the performance measure calculated and presented in accordance with generally accepted accounting principles in the U.S. ("GAAP") that is most directly comparable to adjusted EBITDA and adjusted net income (loss). Additional information with respect to our use of each of these financial measures follows: |
Adjusted EBITDA, adjusted net income (loss) and adjusted diluted income (loss) per share, as used herein, are not necessarily comparable to other similarly titled measures of other companies. | |
Adjusted EBITDA is computed by eliminating the following from net income (loss): (a) net income attributable to noncontrolling interests, net of tax; (b) interest; (c) income taxes; (d) depreciation and amortization (e) amortization of pension and postretirement actuarial losses (gains); (f) restructuring, impairment and plant closing costs (credits); and further adjusted for certain other items set forth in reconciliation of adjusted EBITDA to net income (loss) in Table 4 above. | |
Adjusted net income (loss) and adjusted diluted income (loss) per share are computed by eliminating the after tax impact of the following items from net income (loss): (a) net income attributable to noncontrolling interest; (b) amortization of pension and postretirement actuarial losses (gains); (c) restructuring, impairment and plant closing costs (credits); and further adjusted for certain other items set forth in reconciliation of adjusted EBITDA to net income (loss) in Table 4 above. The income tax impacts, if any, of each adjusting item represent a ratable allocation of the total difference between the unadjusted tax expense and the total adjusted tax expense, computed without consideration of any adjusting items using a with and without approach. | |
We do not provide reconciliations for adjusted EBITDA, adjusted net income (loss) or adjusted diluted income (loss) per share on a forward-looking basis because we are unable to provide a meaningful or accurate calculation or estimation of reconciling items and the information is not available without unreasonable effort. This is due to the inherent difficulty of forecasting the timing and amount of certain items, such as, but not limited to, (a) business acquisition and integration expenses and purchase accounting adjustments, (b) merger costs, and (c) certain legal and other settlements and related costs. Each of such adjustments has not yet occurred, are out of our control and/or cannot be reasonably predicted. For the same reasons, we are unable to address the probable significance of the unavailable information. | |
(2) | Management internally uses a free cash flow measure: (a) to evaluate our liquidity, (b) evaluate strategic investments, (c) plan stock buyback and dividend levels and (d) evaluate our ability to incur and service debt. We have historically defined free cash flow as cash flows provided by operating activities and used in investing activities, excluding acquisition/disposition activities and including non-recurring separation costs. Starting with the quarter ended March 31, 2020, we updated our definition of free cash flow to a presentation more consistent with today's market standard of net cash provided by operating activities less capital expenditures. Using our updated definition, our free cash flow for the years ended December 31, 2019, 2018, and 2017 were $382 million, $453 million, and $438 million, respectively. Free cash flow is not a defined term under U.S. GAAP, and it should not be inferred that the entire free cash flow amount is available for discretionary expenditures. |
(3) | During the third quarter 2019, we entered into an agreement to sell our Chemical Intermediates Businesses. Results from these businesses, including the associated gain on sale, was treated as discontinued operations until the completion of the sale on January 3, 2020. |
(4) | We believe adjusted effective tax rate provides improved comparability between periods through the exclusion of certain items that management believes are not indicative of the businesses' operational profitability and that may obscure underlying business results and trends. In our view, effective tax rate is the performance measure calculated and presented in accordance with U.S. GAAP that is most directly comparable to adjusted effective tax rate. |
The reconciliation of historical adjusted effective tax rate and effective tax rate is set forth in Table 4 above. We do not provide reconciliations for adjusted effective tax rate on a forward-looking basis because we are unable to provide a meaningful or accurate calculation or estimation of reconciling items and the information is not available without unreasonable effort. This is due to the inherent difficulty of forecasting the timing and amount of certain items, such as, but not limited to, (a) business acquisition and integration expenses, (b) merger costs, and (c) certain legal and other settlements and related costs. Each of such adjustments has not yet occurred, are out of our control and/or cannot be reasonably predicted. For the same reasons, we are unable to address the probable significance of the unavailable information. | |
(5) | Net debt is a measure we use to monitor how much debt we have after taking into account our total cash. We use it as an indicator of our overall financial position, and calculate it by taking our total debt, including the current portion, and subtracting total cash. |
(6) | Adjusted free cash flow is defined as free cash flow, as described above, adjusted by excluding the taxes paid in connection with the sale of our Chemical Intermediates Businesses. We believe that adjusted free cash flow provides a useful comparison from period to period because it excludes the impact of cash taxes unrelated to our operations. Additionally, the proceeds received from the sale of our Chemical Intermediates Businesses was classified as cash provided by investing activities and therefore was not factored into our free cash flow. As result, we believe the adjustment to exclude the taxes paid associated with this sale provides a meaningful measure of our free cash flow. |
About Huntsman:
Huntsman Corporation is a publicly traded global manufacturer and marketer of differentiated and specialty chemicals with 2019 revenues of approximately $7 billion. Our chemical products number in the thousands and are sold worldwide to manufacturers serving a broad and diverse range of consumer and industrial end markets. We operate more than 70 manufacturing, R&D and operations facilities in approximately 30 countries and employ approximately 9,000 associates within our four distinct business divisions. For more information about Huntsman, please visit the company's website at www.huntsman.com.
Social Media:
Twitter: www.twitter.com/Huntsman_Corp
Facebook: www.facebook.com/huntsmancorp
LinkedIn: www.linkedin.com/company/huntsman
Forward-Looking Statements:
Certain information in this release constitutes forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. These statements are based on management's current beliefs and expectations. The forward-looking statements in this release are subject to uncertainty and changes in circumstances and involve risks and uncertainties that may affect the company's operations, markets, products, services, prices and other factors as discussed under the caption "Risk Factors" in the Huntsman companies' filings with the U.S. Securities and Exchange Commission. Significant risks and uncertainties may relate to, but are not limited to, volatile global economic conditions, cyclical and volatile product markets, disruptions in production at manufacturing facilities, reorganization or restructuring of Huntsman's operations, including any delay of, or other negative developments affecting the ability to implement cost reductions, timing of proposed transactions, and manufacturing optimization improvements in Huntsman businesses and realize anticipated cost savings, and other financial, economic, competitive, environmental, political, legal, regulatory and technological factors. The company assumes no obligation to provide revisions to any forward-looking statements should circumstances change, except as otherwise required by applicable laws.
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SOURCE Huntsman Corporation
Article Date
10/29/2020Huntsman Announces the Sale of its India Based DIY Consumer Adhesives Business
Source: PR Newswire
THE WOODLANDS, Texas, Oct. 28, 2020 /PRNewswire/ -- Huntsman Corporation (NYSE: HUN) announced today that it has entered into a definitive agreement to sell its India based Do-It-Yourself (DIY) consumer adhesives business, part of the Advanced Materials division, to Pidilite Industries Ltd. in an all-cash transaction valued at up to $285 million, excluding customary working capital and other adjustments. The transaction value represents a 2019 adjusted EBITDA multiple of approximately 15 times. Under the terms of the agreement Huntsman will receive approximately $257 million in cash at closing and up to approximately $28 million of additional cash under an earnout within 18 months if the business achieves sales revenue in-line with 2019. The transaction is expected to close within the coming week.
Peter Huntsman, Chairman, President and CEO commented:
"We have taken this business and built it from almost nothing to be a market leader in India. To take it to the next level of size and value, we simply do not have the footprint in India to do so. Pidilite is a respected leader in consumer adhesives within India and is in a better position to invest in and more aggressively grow this consumer DIY business over the coming years. We anticipate within the coming months that we will be able to deploy the proceeds from this asset and replace the lost EBITDA with other growth assets that fit even better within our core Advanced Materials specialty business."
About Huntsman:
Huntsman Corporation is a publicly traded global manufacturer and marketer of differentiated and specialty chemicals with 2019 revenues of approximately $7 billion. Our chemical products number in the thousands and are sold worldwide to manufacturers serving a broad and diverse range of consumer and industrial end markets. We operate more than 70 manufacturing, R&D and operations facilities in approximately 30 countries and employ approximately 9,000 associates within our four distinct business divisions. For more information about Huntsman, please visit the company's website at www.huntsman.com.
Social Media:
Twitter: www.twitter.com/Huntsman_Corp
Facebook: www.facebook.com/huntsmancorp
LinkedIn: www.linkedin.com/company/huntsman
Forward-Looking Statements:
Certain information in this release constitutes forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. These statements are based on management's current beliefs and expectations. The forward-looking statements in this release are subject to uncertainty and changes in circumstances and involve risks and uncertainties that may affect the company's operations, markets, products, services, prices and other factors as discussed under the caption "Risk Factors" in the Huntsman companies' filings with the U.S. Securities and Exchange Commission. Significant risks and uncertainties may relate to, but are not limited to, volatile global economic conditions, cyclical and volatile product markets, disruptions in production at manufacturing facilities, reorganization or restructuring of Huntsman's operations, including any delay of, or other negative developments affecting the ability to implement cost reductions, timing of proposed transactions, and manufacturing optimization improvements in Huntsman businesses and realize anticipated cost savings, and other financial, economic, competitive, environmental, political, legal, regulatory and technological factors. The company assumes no obligation to provide revisions to any forward-looking statements should circumstances change, except as otherwise required by applicable laws.
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SOURCE Huntsman Corporation
Article Date
10/28/2020Huntsman Announces Reduced Operating Rates at its Geismar, La. Facility
Source: PR Newswire
THE WOODLANDS, Texas, Oct. 15, 2020 /PRNewswire/ -- Huntsman Corporation (NYSE: HUN) announced today that due to a mechanical failure at a third-party raw material supplier, its Geismar, Louisiana MDI facility is experiencing a partial outage which is estimated to last approximately 5 weeks. It is currently estimated that this will impact the Company's fourth quarter adjusted EBITDA by approximately $15 million. The Company will provide an update on its third quarter earnings conference call on October 29, 2020.
About Huntsman:
Huntsman Corporation is a publicly traded global manufacturer and marketer of differentiated and specialty chemicals with 2019 revenues of approximately $7 billion. Our chemical products number in the thousands and are sold worldwide to manufacturers serving a broad and diverse range of consumer and industrial end markets. We operate more than 70 manufacturing, R&D and operations facilities in approximately 30 countries and employ approximately 9,000 associates within our four distinct business divisions. For more information about Huntsman, please visit the company's website at www.huntsman.com.
Social Media:
Twitter: www.twitter.com/Huntsman_Corp
Facebook: www.facebook.com/huntsmancorp
LinkedIn: www.linkedin.com/company/huntsman
Forward-Looking Statements:
Certain information in this release constitutes forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. These statements are based on management's current beliefs and expectations. The forward-looking statements in this release are subject to uncertainty and changes in circumstances and involve risks and uncertainties that may affect the company's operations, markets, products, services, prices and other factors as discussed under the caption "Risk Factors" in the Huntsman companies' filings with the U.S. Securities and Exchange Commission. Significant risks and uncertainties may relate to, but are not limited to, volatile global economic conditions, cyclical and volatile product markets, disruptions in production at manufacturing facilities, reorganization or restructuring of Huntsman's operations, including any delay of, or other negative developments affecting the ability to implement cost reductions, timing of proposed transactions, and manufacturing optimization improvements in Huntsman businesses and realize anticipated cost savings, and other financial, economic, competitive, environmental, political, legal, regulatory and technological factors. The company assumes no obligation to provide revisions to any forward-looking statements should circumstances change, except as otherwise required by applicable laws.
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SOURCE Huntsman Corporation
Article Date
10/15/2020Huntsman to Discuss Third Quarter 2020 Results on October 29, 2020
Source: PR Newswire
THE WOODLANDS, Texas, Oct. 1, 2020 /PRNewswire/ -- Huntsman Corporation (NYSE: HUN) will hold a conference call on Thursday, October 29, 2020, at 10:00 a.m. ET to discuss its third quarter 2020 financial results, which will be released at approximately 6:00 a.m. ET that day.
Webcast link:
https://78449.themediaframe.com/dataconf/productusers/hun/mediaframe/41067/indexl.html
Participant dial-in numbers: | |
Domestic callers: | (877) 402-8037 |
International callers: | (201) 378-4913 |
The conference call will be accompanied by presentation slides that will be accessible via the webcast link and Huntsman's investor relations website, ir.huntsman.com. Upon conclusion of the call, the webcast replay will be accessible via Huntsman's website.
About Huntsman:
Huntsman Corporation is a publicly traded global manufacturer and marketer of differentiated and specialty chemicals with 2019 revenues of approximately $7 billion. Our chemical products number in the thousands and are sold worldwide to manufacturers serving a broad and diverse range of consumer and industrial end markets. We operate more than 70 manufacturing, R&D and operations facilities in approximately 30 countries and employ approximately 9,000 associates within our four distinct business divisions. For more information about Huntsman, please visit the company's website at www.huntsman.com.
Social Media:
Twitter: www.twitter.com/Huntsman_Corp
Facebook: www.facebook.com/huntsmancorp
LinkedIn: www.linkedin.com/company/huntsman
Forward-Looking Statements:
Certain information in this release constitutes forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. These statements are based on management's current beliefs and expectations. The forward-looking statements in this release are subject to uncertainty and changes in circumstances and involve risks and uncertainties that may affect the company's operations, markets, products, services, prices and other factors as discussed under the caption "Risk Factors" in the Huntsman companies' filings with the U.S. Securities and Exchange Commission. Significant risks and uncertainties may relate to, but are not limited to, volatile global economic conditions, cyclical and volatile product markets, disruptions in production at manufacturing facilities, reorganization or restructuring of Huntsman's operations, including any delay of, or other negative developments affecting the ability to implement cost reductions, timing of proposed transactions, and manufacturing optimization improvements in Huntsman businesses and realize anticipated cost savings, and other financial, economic, competitive, environmental, political, legal, regulatory and technological factors. The company assumes no obligation to provide revisions to any forward-looking statements should circumstances change, except as otherwise required by applicable laws.
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SOURCE Huntsman Corporation
Article Date
10/1/2020Huntsman Updates Its Third Quarter 2020 Outlook
Source: PR Newswire
THE WOODLANDS, Texas, Sept. 8, 2020 /PRNewswire/ -- Huntsman Corporation (NYSE: HUN) management will be participating in several investor meetings over the coming weeks including the UBS Virtual Global Chemicals Conference on September 9, 2020 and the RBC Capital Markets Global Industrials Virtual Conference on September 15, 2020. Huntsman management intends to communicate that its Polyurethanes segment third quarter 2020 adjusted EBITDA is expected to be at least 40% better than what it guided on its second quarter earnings call, or near the prior year third quarter period. This improved outlook is being driven by continued strength in construction related markets, better than expected improvement in automotive demand and higher overall margins. Huntsman's other divisions, in total, are expected to be approximately in-line with the guidance that was previously communicated on its second quarter conference call on July 28, 2020.
About Huntsman:
Huntsman Corporation is a publicly traded global manufacturer and marketer of differentiated and specialty chemicals with 2019 revenues of approximately $7 billion. Our chemical products number in the thousands and are sold worldwide to manufacturers serving a broad and diverse range of consumer and industrial end markets. We operate more than 70 manufacturing, R&D and operations facilities in approximately 30 countries and employ approximately 9,000 associates within our four distinct business divisions. For more information about Huntsman, please visit the company's website at www.huntsman.com.
Social Media:
Twitter: www.twitter.com/Huntsman_Corp
Facebook: www.facebook.com/huntsmancorp
LinkedIn: www.linkedin.com/company/huntsman
Forward-Looking Statements:
Certain information in this release constitutes forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. These statements are based on management's current beliefs and expectations. The forward-looking statements in this release are subject to uncertainty and changes in circumstances and involve risks and uncertainties that may affect the company's operations, markets, products, services, prices and other factors as discussed under the caption "Risk Factors" in the Huntsman companies' filings with the U.S. Securities and Exchange Commission. Significant risks and uncertainties may relate to, but are not limited to, volatile global economic conditions, cyclical and volatile product markets, disruptions in production at manufacturing facilities, reorganization or restructuring of Huntsman's operations, including any delay of, or other negative developments affecting the ability to implement cost reductions, timing of proposed transactions, and manufacturing optimization improvements in Huntsman businesses and realize anticipated cost savings, and other financial, economic, competitive, environmental, political, legal, regulatory and technological factors. The company assumes no obligation to provide revisions to any forward-looking statements should circumstances change, except as otherwise required by applicable laws.
View original content:http://www.prnewswire.com/news-releases/huntsman-updates-its-third-quarter-2020-outlook-301125814.html
SOURCE Huntsman Corporation
Article Date
9/8/2020Venator Announces Major Investment from SK Capital Partners
Source: PR Newswire
WYNYARD, UK, Aug. 28, 2020 /PRNewswire/ -- Venator Materials PLC (NYSE: VNTR) ("Venator") today announced that funds advised by SK Capital Partners, L.P. have agreed to purchase approximately 42.5 million shares, representing just under 40% of Venator's outstanding shares, from Huntsman Corporation (NYSE: HUN) for a purchase price of approximately $100 million, including a 30-month option for the sale of Huntsman's remaining approximate 9.5 million shares it holds at $2.15 per share. The transaction is subject to regulatory approvals and is expected to close near year-end.
Simon Turner, President and CEO of Venator, stated, "I am excited to welcome SK Capital as a major investor in Venator. They have a successful track record of investing in the chemical industry with a focus on long term growth. We appreciate this vote of confidence by Barry Siadat and the SK Capital team in the opportunities ahead for Venator and expected value creation for our shareholders."
About Venator
Venator is a global manufacturer and marketer of chemical products that comprise a broad range of pigments and additives that bring color and vibrancy to buildings, protect and extend product life, and reduce energy consumption. We market our products globally to a diversified group of industrial customers through two segments: Titanium Dioxide, which consists of our TiO2 business, and Performance Additives, which consists of our functional additives, color pigments, timber treatment and water treatment businesses. We operate 24 facilities, employ approximately 4,000 associates worldwide and sell our products in more than 110 countries.
Cautionary Statement Concerning Forward-Looking Statements
Certain statements contained in this press release constitute "forward looking statements" within the meaning of the U.S. Private Securities Litigation Reform Act of 1995. These forward looking statements represent Venator's expectations or beliefs concerning future events, and it is possible that the expected results described in this press release will not be achieved. These forward looking statements are subject to risks, uncertainties and other factors, many of which are outside of Venator's control, that could cause actual results to differ materially from the results discussed in the forward looking statements, including the impacts and duration of the global outbreak of the Coronavirus Disease 2019 pandemic on the global economy and all aspects of our business, including our employees, customers, suppliers, partners, results of operations, financial condition and liquidity, global economic conditions, our ability to maintain sufficient working capital, our ability to access capital markets on favorable terms, our ability to transfer technology and manufacturing capacity from our Pori, Finland manufacturing facility to other sites in our manufacturing network, the costs associated with such transfer and the closure of our Pori facility, our ability to realize financial and operational benefits from our business improvement plans and initiatives, impacts on TiO2 markets and the broader global economy from the imposition of tariffs by the U.S. and other countries, changes in raw material and energy prices, or interruptions in raw materials and energy, industry production capacity and operating rates, the supply demand balance for our products and that of competing products, pricing pressures, technological developments, legal claims by or against us, changes in government regulations, including increased manufacturing, labeling and waste disposal regulations and the classification of TiO2 as a carcinogen in the EU, geopolitical events, cyberattacks and public health crises such as coronavirus.
Any forward looking statement speaks only as of the date on which it is made, and, except as required by law, Venator does not undertake any obligation to update or revise any forward looking statement, whether as a result of new information, future events or otherwise. New factors emerge from time to time, and it is not possible for Venator to predict all such factors. When considering these forward looking statements, you should keep in mind the risk factors and other cautionary statements in Venator's Annual Report on Form 10-K for the year ended December 31, 2019 filed with the SEC and in its Quarterly Reports on Form 10-Q and Current Reports on Form 8-K. The risk factors and other factors noted therein could cause its actual results to differ materially from those contained in any forward looking statement.
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SOURCE Venator Materials PLC
Article Date
8/28/2020Huntsman Agrees to Sell its Remaining Interest in Venator Materials PLC
Source: PR Newswire
THE WOODLANDS, Texas, Aug. 28, 2020 /PRNewswire/ -- Huntsman Corporation (NYSE: HUN) announced today that it has entered into a definitive agreement with funds advised by SK Capital Partners, LP to sell approximately 42.5 million of the shares it holds in Venator Materials PLC for a cash purchase price of approximately $100 million, including a 30-month option for the sale of the remaining approximate 9.5 million shares it holds at $2.15 per share. The transaction is subject to regulatory approvals and is expected to close near year-end.
Together with estimated cash tax savings of approximately $150 million anticipated by offsetting the capital loss on the sale of Venator shares against the capital gain realized on the sale of our chemical intermediates and surfactants businesses that closed this year in January, we expect to secure an aggregate total benefit of approximately $250 million in cash near year end.
Peter Huntsman, Chairman, President and CEO, further commented, "I am pleased to have reached an agreement to sell our remaining interest in Venator to SK Capital. We enjoy an ongoing relationship with SK Capital and their co-founder Barry Siadat. They are a great owner and operator of businesses and we are pleased for them to acquire Huntsman's stake in Venator, a world class functional and specialty TiO2 business. The proceeds to be received will further bolster our balance sheet and only enhance our flexibility for further growth."
About Huntsman:
Huntsman Corporation is a publicly traded global manufacturer and marketer of differentiated and specialty chemicals with 2019 revenues of approximately $7 billion. Our chemical products number in the thousands and are sold worldwide to manufacturers serving a broad and diverse range of consumer and industrial end markets. We operate more than 70 manufacturing, R&D and operations facilities in approximately 30 countries and employ approximately 9,000 associates within our four distinct business divisions. For more information about Huntsman, please visit the company's website at www.huntsman.com.
Social Media:
Twitter: www.twitter.com/Huntsman_Corp
Facebook: www.facebook.com/huntsmancorp
LinkedIn: www.linkedin.com/company/huntsman
Forward-Looking Statements:
Certain information in this release constitutes forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. These statements are based on management's current beliefs and expectations. The forward-looking statements in this release are subject to uncertainty and changes in circumstances and involve risks and uncertainties that may affect the company's operations, markets, products, services, prices and other factors as discussed under the caption "Risk Factors" in the Huntsman companies' filings with the U.S. Securities and Exchange Commission. Significant risks and uncertainties may relate to, but are not limited to, volatile global economic conditions, cyclical and volatile product markets, disruptions in production at manufacturing facilities, reorganization or restructuring of Huntsman's operations, including any delay of, or other negative developments affecting the ability to implement cost reductions, timing of proposed transactions, and manufacturing optimization improvements in Huntsman businesses and realize anticipated cost savings, and other financial, economic, competitive, environmental, political, legal, regulatory and technological factors. The company assumes no obligation to provide revisions to any forward-looking statements should circumstances change, except as otherwise required by applicable laws.
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SOURCE Huntsman Corporation
Article Date
8/28/2020Huntsman Announces Third Quarter 2020 Common Dividend
Source: PR Newswire
THE WOODLANDS, Texas, Aug. 5, 2020 /PRNewswire/ -- Huntsman Corporation (NYSE: HUN) today announced that its board of directors has declared a $0.1625 per share cash dividend on its common stock. The dividend is payable on September 30, 2020, to stockholders of record as of September 15, 2020.
About Huntsman:
Huntsman Corporation is a publicly traded global manufacturer and marketer of differentiated and specialty chemicals with 2019 revenues of approximately $7 billion. Our chemical products number in the thousands and are sold worldwide to manufacturers serving a broad and diverse range of consumer and industrial end markets. We operate more than 70 manufacturing, R&D and operations facilities in approximately 30 countries and employ approximately 9,000 associates within our four distinct business divisions. For more information about Huntsman, please visit the company's website at www.huntsman.com.
Social Media:
Twitter: www.twitter.com/Huntsman_Corp
Facebook: www.facebook.com/huntsmancorp
LinkedIn: www.linkedin.com/company/huntsman
Forward-Looking Statements:
Certain information in this release constitutes forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. These statements are based on management's current beliefs and expectations. The forward-looking statements in this release are subject to uncertainty and changes in circumstances and involve risks and uncertainties that may affect the company's operations, markets, products, services, prices and other factors as discussed under the caption "Risk Factors" in the Huntsman companies' filings with the U.S. Securities and Exchange Commission. Significant risks and uncertainties may relate to, but are not limited to, volatile global economic conditions, cyclical and volatile product markets, disruptions in production at manufacturing facilities, reorganization or restructuring of Huntsman's operations, including any delay of, or other negative developments affecting the ability to implement cost reductions, timing of proposed transactions, and manufacturing optimization improvements in Huntsman businesses and realize anticipated cost savings, and other financial, economic, competitive, environmental, political, legal, regulatory and technological factors. The company assumes no obligation to provide revisions to any forward-looking statements should circumstances change, except as otherwise required by applicable laws.
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SOURCE Huntsman Corporation
Article Date
8/5/2020Huntsman Announces Second Quarter 2020 Earnings; Targets Total Annualized Cost Savings and Synergies of $100+ Million by End of 2021
Source: PR Newswire
THE WOODLANDS, Texas, July 28, 2020 /PRNewswire/ --
Second Quarter Highlights
Three months ended | Six months ended | |||||||
June 30, | June 30, | |||||||
In millions, except per share amounts | 2020 | 2019 | 2020 | 2019 | ||||
Revenues | $ 1,247 | $ 1,784 | $ 2,840 | $ 3,453 | ||||
Net (loss) income | $ (59) | $ 118 | $ 649 | $ 249 | ||||
Adjusted net (loss) income(1) | $ (30) | $ 108 | $ 35 | $ 193 | ||||
Diluted (loss) income per share | $ (0.28) | $ 0.47 | $ 2.90 | $ 0.98 | ||||
Adjusted diluted (loss) income per share(1) | $ (0.14) | $ 0.47 | $ 0.16 | $ 0.83 | ||||
Adjusted EBITDA(1) | $ 54 | $ 245 | $ 219 | $ 449 | ||||
Net cash provided by operating activities from continuing operations | $ 85 | $ 217 | $ 45 | $ 177 | ||||
Free cash flow from continuing operations(2) | $ 30 | $ 160 | $ (71) | $ 59 | ||||
Adjusted free cash flow from continuing operations(6) | $ 38 | $ 160 | $ (61) | $ 59 | ||||
See end of press release for footnote explanations and reconciliations of non-GAAP measures. | ||||||||
Huntsman Corporation (NYSE: HUN) today reported second quarter 2020 results with revenues of $1,247 million, net loss of $59 million, adjusted net loss of $30 million and adjusted EBITDA of $54 million.
Peter R. Huntsman, Chairman, President and CEO, commented:
"We were fortunate to have been more prepared than ever as we entered the second quarter in an unprecedented global economic crisis, with little to no visibility. With our transformed balance sheet, there was no need to access capital markets and we completed the quarter with $2.6 billion of overall liquidity and generated positive free cash flow. We remain focused on what we can control and have accelerated and improved integration plans for our recent acquisitions, CVC Thermoset Specialties and Icynene-Lapolla. The total annualized targeted synergies for these acquisitions, to be achieved by the end of 2021, is now $35 million. Including these synergies, we have plans to achieve in excess of $100 million of targeted annualized savings by year end 2021. While the ongoing related global effects of COVID-19 remain uncertain and visibility continues to be poor, we see improving trends within most of our major markets and are optimistic that the worst of this economic slowdown is behind us."
Segment Analysis for 2Q20 Compared to 2Q19
Polyurethanes
The decrease in revenues in our Polyurethanes segment for the three months ended June 30, 2020 compared to the same period of 2019 was due to lower MDI average selling prices and lower overall polyurethanes sales volumes. MDI average selling prices decreased across most major markets in relation to the global economic slowdown resulting from the COVID-19 pandemic. Overall polyurethanes sales volumes decreased in primarily relation to the global economic slowdown and the resulting decrease in demand across most major markets, partially offset by growth in China during the second quarter of 2020 and additional sales volumes in connection with the Icynene-Lapolla acquisition. The decrease in segment adjusted EBITDA was primarily due to lower component and polymeric systems margins largely driven by lower MDI pricing and lower polyurethanes sales volumes.
Performance Products
The decrease in revenues in our Performance Products segment for the three months ended June 30, 2020 compared to the same period of 2019 was due to lower average selling prices and lower sales volumes. Average selling prices decreased primarily in response to lower raw material costs. Sales volumes decreased primarily in relation to the global economic slowdown. The decrease in segment adjusted EBITDA was primarily due to lower sales volumes, partially offset by higher margins in our performance amines business and lower fixed costs.
Advanced Materials
The decrease in revenues in our Advanced Materials segment for the three months ended June 30, 2020 compared to the same period in 2019 was due to lower sales volumes while overall average selling prices remained unchanged. Sales volumes decreased significantly across all markets and regions, except in our global power market, in primarily relation to the global economic slowdown and customer destocking. Average selling prices increased in local currencies, offset by the impact of a stronger U.S. dollar against major international currencies. The decrease in segment adjusted EBITDA was primarily due to lower sales volumes, partially offset by lower fixed costs.
Textile Effects
The decrease in revenues in our Textile Effects segment for the three months ended June 30, 2020 compared to the same period of 2019 was due to lower sales volumes and sales mix changes. Sales volumes decreased primarily due to significantly weaker demand in relation to the global economic slowdown. Average selling prices in local currencies increased mainly due to geographical mix change, offset by the impact of a stronger U.S. dollar against major international currencies. The decrease in segment adjusted EBITDA was primarily due to lower sales volumes and lower capitalization of indirect costs because of reduced production, partially offset by lower raw material costs and lower fixed costs.
Corporate, LIFO and other
For the three months ended June 30, 2020, adjusted EBITDA from Corporate and other for Huntsman Corporation increased by $4 million to a loss of $32 million from a loss of $36 million for the same period of 2019.
Liquidity and Capital Resources
During the three months ended June 30, 2020, our adjusted free cash flow from continuing operations was $38 million as compared to $160 million in the prior year period. As of June 30, 2020, we had $2.6 billion of combined cash and unused borrowing capacity.
During the three months ended June 30, 2020, we spent $55 million on capital expenditures as compared to $57 million in the same period of 2019. For 2020 we expect to spend between approximately $225 million and $235 million on capital expenditures.
On May 18, 2020 we completed our acquisition of CVC Thermoset Specialties and paid approximately $300 million from available cash. In the second half of 2020, we expect to pay from available cash approximately $365 million in taxes related to the sale of our Chemical Intermediates and Surfactants businesses which was completed on January 3, 2020.
As of the end of the second quarter 2020, we have approximately $420 million remaining on our existing $1 billion multiyear share repurchase program. Our share repurchase program remains suspended.
Income Taxes
In the second quarter 2020, our adjusted effective tax rate was 18%. For 2020, our adjusted effective tax rate is expected to be approximately 20%. We expect our forward adjusted effective tax rate will be approximately 22% - 24%.
Earnings Conference Call Information
We will hold a conference call to discuss our second quarter 2020 financial results on Tuesday, July 28, 2020 at 10:00 a.m. ET.
Webcast link: https://78449.themediaframe.com/dataconf/productusers/hun/mediaframe/38928/indexl.html
Participant dial-in numbers: | |
Domestic callers: | (877) 402-8037 |
International callers: | (201) 378-4913 |
The conference call will be accompanied by presentation slides that will be accessible via the webcast link and Huntsman's investor relations website, ir.huntsman.com. Upon conclusion of the call, the webcast replay will be accessible via Huntsman's website.
Upcoming Conferences
During the third quarter 2020 a member of management is expected to present at:
Jefferies Virtual Global Industrials Conference on August 5, 2020
Seaport Global Virtual Summer Conference on August 26, 2020
UBS Virtual Global Chemicals Conference on September 9, 2020
RBC Capital Markets Global Industrials Virtual Conference on September 15, 2020
A webcast of the presentation, if applicable, along with accompanying materials will be available at ir.huntsman.com.
Table 1 -- Results of Operations | ||||||||
Three months ended | Six months ended | |||||||
June 30, | June 30, | |||||||
In millions, except per share amounts | 2020 | 2019 | 2020 | 2019 | ||||
Revenues | $ 1,247 | $ 1,784 | $ 2,840 | $ 3,453 | ||||
Cost of goods sold | 1,085 | 1,411 | 2,381 | 2,721 | ||||
Gross profit | 162 | 373 | 459 | 732 | ||||
Operating expenses | 212 | 221 | 452 | 464 | ||||
Restructuring, impairment and plant closing costs | 19 | - | 22 | 1 | ||||
Operating (loss) income | (69) | 152 | (15) | 267 | ||||
Interest expense | (21) | (29) | (39) | (59) | ||||
Equity in income of investment in unconsolidated affiliates | 2 | 12 | 4 | 22 | ||||
Fair value adjustments to Venator investment | 4 | (18) | (106) | 58 | ||||
Loss on early extinguishment of debt | - | - | - | (23) | ||||
Other income, net | 7 | 4 | 17 | 9 | ||||
(Loss) income from continuing operations before income taxes | (77) | 121 | (139) | 274 | ||||
Income tax benefit (expense) | 13 | (38) | 6 | (83) | ||||
(Loss) income from continuing operations | (64) | 83 | (133) | 191 | ||||
Income from discontinued operations, net of tax(3) | 5 | 35 | 782 | 58 | ||||
Net (loss) income | (59) | 118 | 649 | 249 | ||||
Net income attributable to noncontrolling interests, net of tax | (3) | (8) | (6) | (20) | ||||
Net (loss) income attributable to Huntsman Corporation | $ (62) | $ 110 | $ 643 | $ 229 | ||||
Adjusted EBITDA(1) | $ 54 | $ 245 | $ 219 | $ 449 | ||||
Adjusted net (loss) income(1) | $ (30) | $ 108 | $ 35 | $ 193 | ||||
Basic (loss) income per share | $ (0.28) | $ 0.48 | $ 2.90 | $ 0.99 | ||||
Diluted (loss) income per share | $ (0.28) | $ 0.47 | $ 2.90 | $ 0.98 | ||||
Adjusted diluted (loss) income per share(1) | $ (0.14) | $ 0.47 | $ 0.16 | $ 0.83 | ||||
Common share information: | ||||||||
Basic weighted average shares | 220 | 231 | 221 | 232 | ||||
Diluted weighted average shares | 220 | 232 | 221 | 234 | ||||
Diluted shares for adjusted diluted (loss) income per share | 220 | 232 | 223 | 234 | ||||
See end of press release for footnote explanations. | ||||||||
Table 2 -- Results of Operations by Segment | ||||||||||||
Three months ended | Six months ended | |||||||||||
June 30, | Better / | June 30, | Better / | |||||||||
In millions | 2020 | 2019 | (Worse) | 2020 | 2019 | (Worse) | ||||||
Segment Revenues: | ||||||||||||
Polyurethanes | $ 730 | $ 1,014 | (28%) | $ 1,618 | $ 1,938 | (17%) | ||||||
Performance Products | 228 | 299 | (24%) | 520 | 599 | (13%) | ||||||
Advanced Materials | 192 | 275 | (30%) | 433 | 547 | (21%) | ||||||
Textile Effects | 102 | 215 | (53%) | 282 | 404 | (30%) | ||||||
Corporate and Eliminations | (5) | (19) | n/m | (13) | (35) | n/m | ||||||
Total | $ 1,247 | $ 1,784 | (30%) | $ 2,840 | $ 3,453 | (18%) | ||||||
Segment Adjusted EBITDA(1): | ||||||||||||
Polyurethanes | $ 31 | $ 156 | (80%) | $ 115 | $ 280 | (59%) | ||||||
Performance Products | 29 | 42 | (31%) | 87 | 87 | 0% | ||||||
Advanced Materials | 30 | 55 | (45%) | 78 | 108 | (28%) | ||||||
Textile Effects | (4) | 28 | n/m | 16 | 50 | (68%) | ||||||
Corporate, LIFO and other | (32) | (36) | 11% | (77) | (76) | (1%) | ||||||
Total | $ 54 | $ 245 | (78%) | $ 219 | $ 449 | (51%) | ||||||
n/m = not meaningful | ||||||||||||
See end of press release for footnote explanations. | ||||||||||||
Table 3 -- Factors Impacting Sales Revenue | ||||||||||
Three months ended | ||||||||||
June 30, 2020 vs. 2019 | ||||||||||
Average Selling Price(a) | ||||||||||
Local | Exchange | Sales Mix | Sales | |||||||
Currency | Rate | & Other | Volume(b) | Total | ||||||
Polyurethanes | (7%) | (2%) | (3%) | (16%) | (28%) | |||||
Performance Products | (7%) | (1%) | 4% | (20%) | (24%) | |||||
Advanced Materials | 3% | (3%) | 1% | (31%) | (30%) | |||||
Textile Effects | 1% | (1%) | (5%) | (48%) | (53%) | |||||
Six months ended | ||||||||||
June 30, 2020 vs. 2019 | ||||||||||
Average Selling Price(a) | ||||||||||
Local | Exchange | Sales Mix | Sales | |||||||
Currency | Rate | & Other | Volume(b) | Total | ||||||
Polyurethanes | (6%) | (2%) | 0% | (9%) | (17%) | |||||
Performance Products | (5%) | (1%) | 4% | (11%) | (13%) | |||||
Advanced Materials | 1% | (2%) | 1% | (21%) | (21%) | |||||
Textile Effects | (3%) | (1%) | (2%) | (24%) | (30%) | |||||
(a) Excludes sales from tolling arrangements, by-products and raw materials. | ||||||||||
(b) Excludes sales from by-products and raw materials. | ||||||||||
Table 4 -- Reconciliation of U.S. GAAP to Non-GAAP Measures | ||||||||||||||||
Income Tax | Diluted (Loss) Income | |||||||||||||||
EBITDA | Benefit (Expense) | Net (Loss) Income | Per Share | |||||||||||||
Three months ended | Three months ended | Three months ended | Three months ended | |||||||||||||
June 30, | June 30, | June 30, | June 30, | |||||||||||||
In millions, except per share amounts | 2020 | 2019 | 2020 | 2019 | 2020 | 2019 | 2020 | 2019 | ||||||||
Net (loss) income | $ (59) | $ 118 | $ (59) | $ 118 | $ (0.27) | $ 0.51 | ||||||||||
Net income attributable to noncontrolling interests | (3) | (8) | (3) | (8) | (0.01) | (0.03) | ||||||||||
Net (loss) income attributable to Huntsman Corporation | (62) | 110 | (62) | 110 | (0.28) | 0.47 | ||||||||||
Interest expense from continuing operations | 21 | 29 | ||||||||||||||
Income tax (benefit) expense from continuing operations | (13) | 38 | $ 13 | $ (38) | ||||||||||||
Income tax expense from discontinued operations(3) | 1 | 14 | ||||||||||||||
Depreciation and amortization from continuing operations | 69 | 69 | ||||||||||||||
Depreciation and amortization from discontinued operations(3) | - | 23 | ||||||||||||||
Business acquisition and integration expenses and purchase accounting inventory adjustments | 8 | - | - | - | 8 | - | 0.04 | - | ||||||||
EBITDA / Income from discontinued operations, net of tax(3) | (6) | (72) | N/A | N/A | (5) | (35) | (0.02) | (0.15) | ||||||||
U.S. tax reform impact on tax expense | - | - | - | 3 | - | 3 | - | 0.01 | ||||||||
Loss on sale of businesses/assets | 1 | - | - | - | 1 | - | 0.00 | - | ||||||||
Income from transition services arrangements | (5) | - | 1 | - | (4) | - | (0.02) | - | ||||||||
Fair value adjustments to Venator Investment(a) | (4) | 18 | - | - | (4) | 18 | (0.02) | 0.08 | ||||||||
Certain legal settlements and related expenses | 4 | - | (1) | - | 3 | - | 0.01 | - | ||||||||
Certain non-recurring information technology project implementation costs | 1 | - | - | - | 1 | - | 0.00 | - | ||||||||
Amortization of pension and postretirement actuarial losses | 19 | 16 | (4) | (4) | 15 | 12 | 0.07 | 0.05 | ||||||||
Restructuring, impairment and plant closing and transition costs | 19 | - | (3) | - | 16 | - | 0.07 | - | ||||||||
Plant incident remediation costs | 1 | - | - | - | 1 | - | 0.00 | - | ||||||||
Adjusted(1) | $ 54 | $ 245 | $ 6 | $ (39) | $ (30) | $ 108 | $ (0.14) | $ 0.47 | ||||||||
Adjusted income tax (benefit) expense(1) | $ (6) | $ 39 | ||||||||||||||
Net income attributable to noncontrolling interests, net of tax | 3 | 8 | ||||||||||||||
Adjusted pre-tax (loss) income(1) | $ (33) | $ 155 | ||||||||||||||
Adjusted effective tax rate(4) | 18% | 25% | ||||||||||||||
Effective tax rate | 17% | 31% | ||||||||||||||
Income Tax | Diluted Income | |||||||||||||||
EBITDA | Benefit (Expense) | Net Income | Per Share | |||||||||||||
Six months ended | Six months ended | Six months ended | Six months ended | |||||||||||||
June 30, | June 30, | June 30, | June 30, | |||||||||||||
In millions, except per share amounts | 2020 | 2019 | 2020 | 2019 | 2020 | 2019 | 2020 | 2019 | ||||||||
Net income | $ 649 | $ 249 | $ 649 | $ 249 | $ 2.93 | $ 1.07 | ||||||||||
Net income attributable to noncontrolling interests | (6) | (20) | (6) | (20) | (0.03) | (0.09) | ||||||||||
Net income attributable to Huntsman Corporation | 643 | 229 | 643 | 229 | 2.90 | 0.98 | ||||||||||
Interest expense from continuing operations | 39 | 59 | ||||||||||||||
Income tax (benefit) expense from continuing operations | (6) | 83 | $ 6 | $ (83) | ||||||||||||
Income tax expense from discontinued operations(3) | 239 | 19 | ||||||||||||||
Depreciation and amortization from continuing operations | 136 | 136 | ||||||||||||||
Depreciation and amortization from discontinued operations(3) | - | 46 | ||||||||||||||
Business acquisition and integration expenses and purchase accounting inventory adjustments | 21 | 1 | (3) | - | 18 | 1 | 0.08 | 0.00 | ||||||||
EBITDA / Income loss from discontinued operations, net of tax(3) | (1,021) | (123) | N/A | N/A | (782) | (58) | (3.53) | (0.25) | ||||||||
U.S. tax reform impact on tax expense | - | - | - | 3 | - | 3 | - | 0.01 | ||||||||
Impact of Switzerland income tax rate change | - | - | - | 32 | - | 32 | - | 0.14 | ||||||||
Gain on sale of businesses/assets | (1) | - | - | - | (1) | - | (0.00) | - | ||||||||
Income from transition services arrangements | (5) | - | 1 | - | (4) | - | (0.02) | - | ||||||||
Fair value adjustments to Venator Investment(a) | 106 | (58) | - | - | 106 | (58) | 0.48 | (0.25) | ||||||||
Loss on early extinguishment of debt | - | 23 | - | (5) | - | 18 | - | 0.08 | ||||||||
Certain legal settlements and related expenses | 6 | - | (1) | - | 5 | - | 0.02 | - | ||||||||
Certain non-recurring information technology project implementation costs | 2 | - | - | - | 2 | - | 0.01 | - | ||||||||
Amortization of pension and postretirement actuarial losses | 37 | 33 | (8) | (8) | 29 | 25 | 0.13 | 0.11 | ||||||||
Restructuring, impairment and plant closing and transition costs | 22 | 1 | (4) | - | 18 | 1 | 0.08 | 0.00 | ||||||||
Plant incident remediation costs | 1 | - | - | - | 1 | - | 0.00 | - | ||||||||
Adjusted(1) | $ 219 | $ 449 | $ (9) | $ (61) | $ 35 | $ 193 | $ 0.16 | $ 0.83 | ||||||||
Adjusted income tax expense(1) | $ 9 | $ 61 | ||||||||||||||
Net income attributable to noncontrolling interests, net of tax | 6 | 20 | ||||||||||||||
Adjusted pre-tax income(1) | $ 50 | $ 274 | ||||||||||||||
Adjusted effective tax rate(4) | 18% | 22% | ||||||||||||||
Effective tax rate | 4% | 30% | ||||||||||||||
(a) Represents the changes in market value in Huntsman's remaining interesting in Venator. | ||||||||||||||||
N/A = not applicable | ||||||||||||||||
See end of press release for footnote explanations. | ||||||||||||||||
Table 5 -- Selected Balance Sheet Items | ||||||
June 30, | March 31, | December 31, | ||||
In millions | 2020 | 2020 | 2019 | |||
Cash | $ 1,254 | $ 1,594 | $ 525 | |||
Accounts and notes receivable, net | 835 | 1,027 | 953 | |||
Inventories | 885 | 1,008 | 914 | |||
Other current assets | 130 | 145 | 155 | |||
Current assets held for sale | - | - | 1,208 | |||
Property, plant and equipment, net | 2,457 | 2,357 | 2,383 | |||
Other noncurrent assets | 2,565 | 2,327 | 2,182 | |||
Total assets | $ 8,126 | $ 8,458 | $ 8,320 | |||
Accounts payable | $ 610 | $ 856 | $ 822 | |||
Other current liabilities | 767 | 784 | 462 | |||
Current portion of debt | 650 | 134 | 212 | |||
Current liabilities held for sale | - | - | 512 | |||
Long-term debt | 1,527 | 2,049 | 2,177 | |||
Other noncurrent liabilities | 1,248 | 1,252 | 1,311 | |||
Huntsman Corporation stockholders' equity | 3,181 | 3,243 | 2,687 | |||
Noncontrolling interests in subsidiaries | 143 | 140 | 137 | |||
Total liabilities and equity | $ 8,126 | $ 8,458 | $ 8,320 | |||
Table 6 -- Outstanding Debt | ||||||
June 30, | March 31, | December 31, | ||||
In millions | 2020 | 2020 | 2019 | |||
Debt: | ||||||
Revolving credit facility | $ - | $ - | $ 40 | |||
Accounts receivable programs | 34 | 55 | 167 | |||
Term loan | 103 | 101 | 103 | |||
Senior notes | 1,969 | 1,950 | 1,963 | |||
Variable interest entities | 53 | 58 | 65 | |||
Other debt | 18 | 19 | 51 | |||
Total debt - excluding affiliates | 2,177 | 2,183 | 2,389 | |||
Total cash | 1,254 | 1,594 | 525 | |||
Net debt - excluding affiliates(5) | $ 923 | $ 589 | $ 1,864 | |||
See end of press release for footnote explanations. | ||||||
Table 7 -- Summarized Statement of Cash Flows | ||||||||
Three months ended | Six months ended | |||||||
June 30, | June 30, | |||||||
In millions | 2020 | 2019 | 2020 | 2019 | ||||
Total cash at beginning of period | $ 1,594 | $ 444 | $ 525 | $ 340 | ||||
Net cash provided by operating activities from continuing operations | 85 | 217 | 45 | 177 | ||||
Net cash (used in) provided by operating activities from discontinued operations(3) | (5) | 87 | (40) | 96 | ||||
Net cash (used in) provided by investing activities from continuing operations | (359) | (55) | 1,152 | (100) | ||||
Net cash used in investing activities from discontinued operations(3) | - | (9) | - | (18) | ||||
Net cash used in financing activities | (63) | (231) | (417) | (48) | ||||
Effect of exchange rate changes on cash | 2 | (4) | (11) | 2 | ||||
Total cash at end of period | $ 1,254 | $ 449 | $ 1,254 | $ 449 | ||||
Free cash flow from continuing operations(2): | ||||||||
Net cash provided by operating activities | $ 85 | $ 217 | $ 45 | $ 177 | ||||
Capital expenditures | (55) | (57) | (116) | (118) | ||||
Free cash flow from continuing operations | $ 30 | $ 160 | $ (71) | $ 59 | ||||
Taxes paid on sale of Chemical Intermediates Businesses | $ 8 | $ - | $ 10 | $ - | ||||
Adjusted free cash flow from continuing operations(6): | $ 38 | $ 160 | $ (61) | $ 59 | ||||
Supplemental cash flow information: | ||||||||
Cash paid for interest | $ (35) | $ (27) | $ (40) | $ (53) | ||||
Cash paid for income taxes | (19) | (54) | (55) | (68) | ||||
Cash paid for restructuring and integration | (9) | (2) | (14) | (11) | ||||
Cash paid for pensions | (26) | (18) | (46) | (39) | ||||
Depreciation and amortization | 69 | 69 | 136 | 136 | ||||
Change in primary working capital: | ||||||||
Accounts and notes receivable | $ 213 | $ (32) | $ 179 | $ (47) | ||||
Inventories | 171 | 106 | 79 | 24 | ||||
Accounts payable | (257) | (2) | (196) | (12) | ||||
Total change in primary working capital | $ 127 | $ 72 | $ 62 | $ (35) | ||||
See end of press release for footnote explanations. | ||||||||
Footnotes | |
(1) | We use adjusted EBITDA to measure the operating performance of our business and for planning and evaluating the performance of our business segments. We provide adjusted net income because we feel it provides meaningful insight for the investment community into the performance of our business. We believe that net income (loss) is the performance measure calculated and presented in accordance with generally accepted accounting principles in the U.S. ("GAAP") that is most directly comparable to adjusted EBITDA and adjusted net income (loss). Additional information with respect to our use of each of these financial measures follows: |
Adjusted EBITDA, adjusted net income (loss) and adjusted diluted income (loss) per share, as used herein, are not necessarily comparable to other similarly titled measures of other companies. | |
Adjusted EBITDA is computed by eliminating the following from net income (loss): (a) net income attributable to noncontrolling interests, net of tax; (b) interest; (c) income taxes; (d) depreciation and amortization (e) amortization of pension and postretirement actuarial losses (gains); (f) restructuring, impairment and plant closing costs (credits); and further adjusted for certain other items set forth in reconciliation of adjusted EBITDA to net income (loss) in Table 4 above. | |
Adjusted net income (loss) and adjusted diluted income (loss) per share are computed by eliminating the after tax impact of the following items from net income (loss): (a) net income attributable to noncontrolling interest; (b) amortization of pension and postretirement actuarial losses (gains); (c) restructuring, impairment and plant closing costs (credits); and further adjusted for certain other items set forth in reconciliation of adjusted EBITDA to net income (loss) in Table 4 above. The income tax impacts, if any, of each adjusting item represent a ratable allocation of the total difference between the unadjusted tax expense and the total adjusted tax expense, computed without consideration of any adjusting items using a with and without approach. | |
We do not provide reconciliations for adjusted EBITDA, adjusted net income (loss) or adjusted diluted income (loss) per share on a forward-looking basis because we are unable to provide a meaningful or accurate calculation or estimation of reconciling items and the information is not available without unreasonable effort. This is due to the inherent difficulty of forecasting the timing and amount of certain items, such as, but not limited to, (a) business acquisition and integration expenses and purchase accounting adjustments, (b) merger costs, and (c) certain legal and other settlements and related costs. Each of such adjustments has not yet occurred, are out of our control and/or cannot be reasonably predicted. For the same reasons, we are unable to address the probable significance of the unavailable information. | |
(2) | Management internally uses a free cash flow measure: (a) to evaluate our liquidity, (b) evaluate strategic investments, (c) plan stock buyback and dividend levels and (d) evaluate our ability to incur and service debt. We have historically defined free cash flow as cash flows provided by operating activities and used in investing activities, excluding acquisition/disposition activities and including non-recurring separation costs. Starting with the quarter ended March 31, 2020, we updated our definition of free cash flow to a presentation more consistent with today's market standard of net cash provided by operating activities less capital expenditures. Using our updated definition, our free cash flow for the years ended December 31, 2019, 2018, and 2017 were $382 million, $453 million, and $438 million, respectively. Free cash flow is not a defined term under U.S. GAAP, and it should not be inferred that the entire free cash flow amount is available for discretionary expenditures. |
(3) | During the third quarter 2019, we entered into an agreement to sell our Chemical Intermediates and Surfactants businesses. Results from these businesses, including the associated gain on sale, was treated as discontinued operations until the completion of the sale on January 3, 2020. |
(4) | We believe adjusted effective tax rate provides improved comparability between periods through the exclusion of certain items that management believes are not indicative of the businesses' operational profitability and that may obscure underlying business results and trends. In our view, effective tax rate is the performance measure calculated and presented in accordance with U.S. GAAP that is most directly comparable to adjusted effective tax rate. |
The reconciliation of historical adjusted effective tax rate and effective tax rate is set forth in Table 4 above. We do not provide reconciliations for adjusted effective tax rate on a forward-looking basis because we are unable to provide a meaningful or accurate calculation or estimation of reconciling items and the information is not available without unreasonable effort. This is due to the inherent difficulty of forecasting the timing and amount of certain items, such as, but not limited to, (a) business acquisition and integration expenses, (b) merger costs, and (c) certain legal and other settlements and related costs. Each of such adjustments has not yet occurred, are out of our control and/or cannot be reasonably predicted. For the same reasons, we are unable to address the probable significance of the unavailable information. | |
(5) | Net debt is a measure we use to monitor how much debt we have after taking into account our total cash. We use it as an indicator of our overall financial position, and calculate it by taking our total debt, including the current portion, and subtracting total cash. |
(6) | Adjusted free cash flow is defined as free cash flow, as described above, adjusted by excluding the taxes paid in connection with the sale of our Chemical Intermediates and Surfactants Businesses. We believe that adjusted free cash flow provides a useful comparison from period to period because it excludes the impact of cash taxes unrelated to our operations. Additionally, the proceeds received from the sale of our Chemical Intermediates and Surfactants Businesses was classified as cash provided by investing activities and therefore was not factored into our free cash flow. As result, we believe the adjustment to exclude the taxes paid associated with this sale provides a meaningful measure of our free cash flow. |
About Huntsman:
Huntsman Corporation is a publicly traded global manufacturer and marketer of differentiated and specialty chemicals with 2019 revenues of approximately $7 billion. Our chemical products number in the thousands and are sold worldwide to manufacturers serving a broad and diverse range of consumer and industrial end markets. We operate more than 70 manufacturing, R&D and operations facilities in approximately 30 countries and employ approximately 9,000 associates within our four distinct business divisions. For more information about Huntsman, please visit the company's website at www.huntsman.com.
Social Media:
Twitter: www.twitter.com/Huntsman_Corp
Facebook: www.facebook.com/huntsmancorp
LinkedIn: www.linkedin.com/company/huntsman
Forward-Looking Statements:
Certain information in this release constitutes forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. These statements are based on management's current beliefs and expectations. The forward-looking statements in this release are subject to uncertainty and changes in circumstances and involve risks and uncertainties that may affect the company's operations, markets, products, services, prices and other factors as discussed under the caption "Risk Factors" in the Huntsman companies' filings with the U.S. Securities and Exchange Commission. Significant risks and uncertainties may relate to, but are not limited to, volatile global economic conditions, cyclical and volatile product markets, disruptions in production at manufacturing facilities, reorganization or restructuring of Huntsman's operations, including any delay of, or other negative developments affecting the ability to implement cost reductions, timing of proposed transactions, and manufacturing optimization improvements in Huntsman businesses and realize anticipated cost savings, and other financial, economic, competitive, environmental, political, legal, regulatory and technological factors. The company assumes no obligation to provide revisions to any forward-looking statements should circumstances change, except as otherwise required by applicable laws.
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SOURCE Huntsman Corporation
Article Date
7/28/20207/24/2020 - Huntsman's Advanced Materials Business Announces Expansion of Partnership with Azelis in the Americas
Huntsman's Advanced Materials Business Announces Expansion of Partnership with Azelis in the Americas
Source: PR Newswire
THE WOODLANDS, Texas, July 24, 2020 /PRNewswire/ -- Huntsman's Advanced Materials business is proud to announce the expansion of our Pan-American business relationship with our preferred distribution partner, Azelis Americas CASE, LLC in the US and Azelis Canada, Inc. in Canada. With this agreement, Azelis will lead the distribution arm of the Coatings, Adhesives, Sealants & Elastomers (CASE) business for Advanced Materials, both in the United States and Canada. This differentiated customer offer includes all of Huntsman's legacy CASE business and CVC Thermoset Specialties product lines acquired in April of 2020.
"Huntsman and Azelis have enjoyed a successful business relationship for almost 40 years. One of their primary strengths is a commitment to unparalleled customer service throughout the sales process," said Peter Huntsman Jr., Commercial Director, Americas for Huntsman's Advanced Materials business. "This expanded agreement strengthens our reach to our target markets in the United States and Canada, and we believe that Azelis will continue to establish Huntsman as the leading provider of material solutions that creates mutual value for our customers and our stakeholders."
Azelis is a leading distributor of specialty chemicals and food ingredients present in over 50 countries across the globe, with approximately 2,200 employees. Their knowledgeable teams of industry, market and technical experts are each dedicated to a specific market within Life Sciences and Industrial Chemicals. They offer a lateral value chain of complementary products to about 40,000 customers, creating a turnover of $2.37 billion (2019). In the United States they operate under several renowned co-brands that cater to the various markets in the region.
Huntsman expects to complete formal agreements with Azelis in the coming weeks. Azelis will be fully prepared to service their expanded territory by October 1, 2020.
About Huntsman:
Huntsman Corporation (NYSE: HUN) is a publicly traded global manufacturer and marketer of differentiated and specialty chemicals with 2019 revenues of approximately $7 billion. Our chemical products number in the thousands and are sold worldwide to manufacturers serving a broad and diverse range of consumer and industrial end markets. We operate more than 70 manufacturing, R&D and operations facilities in approximately 30 countries and employ approximately 9,000 associates within our four distinct business divisions. For more information about Huntsman, please visit the company's website at www.huntsman.com.
Social Media:
Twitter: www.twitter.com/Huntsman_Corp
Facebook: www.facebook.com/huntsmancorp
LinkedIn: www.linkedin.com/company/huntsman
Forward-Looking Statements:
Certain information in this release constitutes forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. These statements are based on management's current beliefs and expectations. The forward-looking statements in this release are subject to uncertainty and changes in circumstances and involve risks and uncertainties that may affect the company's operations, markets, products, services, prices and other factors as discussed under the caption "Risk Factors" in the Huntsman companies' filings with the U.S. Securities and Exchange Commission. Significant risks and uncertainties may relate to, but are not limited to, volatile global economic conditions, cyclical and volatile product markets, disruptions in production at manufacturing facilities, reorganization or restructuring of Huntsman's operations, including any delay of, or other negative developments affecting the ability to implement cost reductions, timing of proposed transactions, and manufacturing optimization improvements in Huntsman businesses and realize anticipated cost savings, and other financial, economic, competitive, environmental, political, legal, regulatory and technological factors. The company assumes no obligation to provide revisions to any forward-looking statements should circumstances change, except as otherwise required by applicable laws.
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SOURCE Huntsman Corporation
Article Date
7/24/20206/22/2020 - Huntsman Updates its Second Quarter Outlook; To Discuss Second Quarter 2020 Results on July 28, 2020
Huntsman Updates its Second Quarter Outlook; To Discuss Second Quarter 2020 Results on July 28, 2020
Source: PR Newswire
THE WOODLANDS, Texas, June 22, 2020 /PRNewswire/ -- Huntsman Corporation (NYSE: HUN) today reaffirmed its overall general outlook for the second quarter 2020 and announced that overall sales for the quarter are expected to be down between approximately 30 to 35 percent versus last year. Huntsman noted that the sales trends showed improvement from April to May, and it expects to see this continued improvement through June. Results in its Polyurethanes division are expected to be modestly better than expected as trends in China and in U.S. construction, including spray foam, are better than originally anticipated. The better-than-expected results in Polyurethanes are being mostly offset by weaker-than-anticipated results in Huntsman's Textiles Effects division due largely to the prolonged impact of mandated shutdowns in key textile manufacturing regions, and the expected recovery in the industry may not begin until the third quarter due to the continued lockdowns. Huntsman anticipates that adjusted EBITDA in its Textiles Effects division will likely be slightly negative for the second quarter. Huntsman expects that results in the Performance Products division will be in-line with the prior outlook, but the results in the Advanced Materials division may fall a little short of expectations as a result of a deeper trough in Aerospace, Europe, and India than anticipated at the time of its last quarterly earnings call.
Huntsman Corporation will hold a conference call on Tuesday, July 28, 2020, at 10:00 a.m. ET to discuss its second quarter 2020 financial results, which will be released at approximately 6:00 a.m. ET that day.
Webcast link: https://78449.themediaframe.com/dataconf/productusers/hun/mediaframe/38928/indexl.html
Participant dial-in numbers: | |
Domestic callers: | (877) 402-8037 |
International callers: | (201) 378-4913 |
The conference call will be accompanied by presentation slides that will be accessible via the webcast link and Huntsman's investor relations website, ir.huntsman.com. Upon conclusion of the call, the webcast replay will be accessible via Huntsman's website.
About Huntsman:
Huntsman Corporation is a publicly traded global manufacturer and marketer of differentiated and specialty chemicals with 2019 revenues of approximately $7 billion. Our chemical products number in the thousands and are sold worldwide to manufacturers serving a broad and diverse range of consumer and industrial end markets. We operate more than 70 manufacturing, R&D and operations facilities in approximately 30 countries and employ approximately 9,000 associates within our four distinct business divisions. For more information about Huntsman, please visit the company's website at www.huntsman.com.
Social Media:
Twitter: www.twitter.com/Huntsman_Corp
Facebook: www.facebook.com/huntsmancorp
LinkedIn: www.linkedin.com/company/huntsman
Forward-Looking Statements:
Certain information in this release constitutes forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. These statements are based on management's current beliefs and expectations. The forward-looking statements in this release are subject to uncertainty and changes in circumstances and involve risks and uncertainties that may affect the company's operations, markets, products, services, prices and other factors as discussed under the caption "Risk Factors" in the Huntsman companies' filings with the U.S. Securities and Exchange Commission. Significant risks and uncertainties may relate to, but are not limited to, volatile global economic conditions, cyclical and volatile product markets, disruptions in production at manufacturing facilities, reorganization or restructuring of Huntsman's operations, including any delay of, or other negative developments affecting the ability to implement cost reductions, timing of proposed transactions, and manufacturing optimization improvements in Huntsman businesses and realize anticipated cost savings, and other financial, economic, competitive, environmental, political, legal, regulatory and technological factors. The company assumes no obligation to provide revisions to any forward-looking statements should circumstances change, except as otherwise required by applicable laws.
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SOURCE Huntsman Corporation
Article Date
6/22/20206/16/2020 - Huntsman Appoints Two Directors to its Board of Directors: Ms. Cynthia L. Egan and Ms. Sonia Dulá
Huntsman Appoints Two Directors to its Board of Directors: Ms. Cynthia L. Egan and Ms. Sonia Dulá
Source: PR Newswire
THE WOODLANDS, Texas, June 16, 2020 /PRNewswire/ -- Huntsman Corporation (NYSE: HUN) today announced the appointment of Ms. Cynthia L. Egan and Ms. Sonia Dulá to its Board of Directors effective immediately. Both bring to Huntsman long and distinguished professional careers in global financial services, investment management, and international operations. The Huntsman Board now comprises ten directors, nine of whom are independent.
Ms. Egan spent her career primarily as an executive in the investment management industry. She served as President of Retirement Plan Services for T. Rowe Price Group, a global investment management organization, and as an advisor to the U.S. Department of Treasury. Prior to joining T. Rowe Price, Ms. Egan held progressively senior level positions with Fidelity Investments, a multinational financial services corporation, including Executive Vice President, Head of Fidelity Institutional Services Company, President of the Fidelity Charitable Gift Fund, and Executive Vice President of Fidelity Management Research Company. Ms. Egan started her professional career at the Board of Governors of the Federal Reserve in 1980 and worked at KPMG Peat Marwick and Bankers Trust before joining Fidelity in 1989.
Ms. Egan presently serves as a director and the Vice Chair of the Board of The Hanover Insurance Group. She is also a director of Unum Group and the BlackRock Fixed Income Funds Complex, comprising 110 mutual funds, and she previously sat on the Board of Envestnet. She currently serves as Chair of the Board of Visitors of the University of Maryland School of Medicine.
Ms. Dulá spent her career primarily as an executive in the financial services and media industries, most recently serving as Vice Chairman at Bank of America (BofA), Global Corporate and Investment Banking. Before that, she ran Merrill Lynch's Latin America Wealth Management Division and was head of BofA's Latin America Corporate and Investment Banking Division. Before joining BofA, Ms. Dulá was the CEO of Grupo Latino de Radio, owner and operator of more than 500 radio stations in Latin America and the U.S. Hispanic market. Ms. Dulá began her career in investment banking at Goldman Sachs in London and New York.
Ms. Dulá presently serves as a director on the boards of Hemisphere Media Group, PRISA, and Acciona of Spain, and she serves as a member of the Latin America Strategic Advisory Board of Banco Itaú. Ms. Dulá is a life member of the Council on Foreign Relations, and she previously sat on the boards of the Council of the Americas, Women's World Banking, and the Arsht Center for the Performing Arts.
Peter Huntsman, Chairman, President and CEO, commenting on the appointments, said, "We are honored to have Ms. Cynthia Egan and Ms. Sonia Dulá join our Board of Directors. Cynthia and Sonia each bring a wealth of relevant experience from the investment and banking industries, adding to our already diverse and experienced Board. These new directors will give us greater depth and capability."
About Huntsman:
Huntsman Corporation is a publicly traded global manufacturer and marketer of differentiated and specialty chemicals with 2019 revenues of approximately $7 billion. Our chemical products number in the thousands and are sold worldwide to manufacturers serving a broad and diverse range of consumer and industrial end markets. We operate more than 70 manufacturing, R&D and operations facilities in approximately 30 countries and employ approximately 9,000 associates within our four distinct business divisions. For more information about Huntsman, please visit the company's website at www.huntsman.com
Social Media:
Twitter: www.twitter.com/Huntsman_Corp
Facebook: www.facebook.com/huntsmancorp
LinkedIn: www.linkedin.com/company/huntsman
Forward-Looking Statements:
Certain information in this release constitutes forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. These statements are based on management's current beliefs and expectations. The forward-looking statements in this release are subject to uncertainty and changes in circumstances and involve risks and uncertainties that may affect the company's operations, markets, products, services, prices and other factors as discussed under the caption "Risk Factors" in the Huntsman companies' filings with the U.S. Securities and Exchange Commission. Significant risks and uncertainties may relate to, but are not limited to, volatile global economic conditions, cyclical and volatile product markets, disruptions in production at manufacturing facilities, reorganization or restructuring of Huntsman's operations, including any delay of, or other negative developments affecting the ability to implement cost reductions, timing of proposed transactions, and manufacturing optimization improvements in Huntsman businesses and realize anticipated cost savings, and other financial, economic, competitive, environmental, political, legal, regulatory and technological factors. The company assumes no obligation to provide revisions to any forward-looking statements should circumstances change, except as otherwise required by applicable laws.
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SOURCE Huntsman Corporation
Article Date
6/16/2020Huntsman Publishes 2019 Sustainability Report
Source: PR Newswire
THE WOODLANDS, Texas, June 1, 2020 /PRNewswire/ -- Huntsman Corporation (NYSE: HUN) has published its 2019 corporate sustainability report titled, "Innovating Toward a Circular Economy: Transform, Reduce Eliminate," on its web site at Huntsman.com/sustainability. The report discusses how Huntsman is adopting a circular mindset in its business.
This GRI-compliant sustainability report includes Huntsman's annual Communication on Progress to the United Nations Global Compact, as well as its first formal materiality assessment and a robust reporting of its environmental, social and governance performance.
"In our operations today, Huntsman is revising manufacturing processes to reduce energy use and CO₂ emissions and to recycle waste byproducts," said Corporate Sustainability Officer Ron Gerrard. "We're also developing new chemistries to use waste as a resource or to eliminate it altogether. In this report, we share how we're already moving from a linear 'cradle-to-grave' approach toward a circular mindset that transforms, reduces and eliminates waste and moves us closer to a more sustainable future.
"We are committed to the principles of the Global Reporting Initiative (GRI) to provide regular, reliable and transparent reporting on our sustainability performance, and continue to look for ways to elevate our sustainability reporting to better meet the needs of our stakeholders."
This is Huntsman's ninth sustainability report since launching its corporate sustainability initiative in 2010.
About Huntsman:
Huntsman Corporation is a publicly traded global manufacturer and marketer of differentiated and specialty chemicals with 2019 revenues of approximately $7 billion. Our chemical products number in the thousands and are sold worldwide to manufacturers serving a broad and diverse range of consumer and industrial end markets. We operate more than 70 manufacturing, R&D and operations facilities in approximately 30 countries and employ approximately 9,000 associates within our four distinct business divisions. For more information about Huntsman, please visit the company's website at www.huntsman.com.
Social Media:
Twitter: www.twitter.com/Huntsman_Corp
Facebook: www.facebook.com/huntsmancorp
LinkedIn: www.linkedin.com/company/huntsman
Forward-Looking Statements:
Certain information in this release constitutes forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. These statements are based on management's current beliefs and expectations. The forward-looking statements in this release are subject to uncertainty and changes in circumstances and involve risks and uncertainties that may affect the company's operations, markets, products, services, prices and other factors as discussed under the caption "Risk Factors" in the Huntsman companies' filings with the U.S. Securities and Exchange Commission. Significant risks and uncertainties may relate to, but are not limited to, volatile global economic conditions, cyclical and volatile product markets, disruptions in production at manufacturing facilities, reorganization or restructuring of Huntsman's operations, including any delay of, or other negative developments affecting the ability to implement cost reductions, timing of proposed transactions, and manufacturing optimization improvements in Huntsman businesses and realize anticipated cost savings, and other financial, economic, competitive, environmental, political, legal, regulatory and technological factors. The company assumes no obligation to provide revisions to any forward-looking statements should circumstances change, except as otherwise required by applicable laws.
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SOURCE Huntsman Corporation
Article Date
6/1/2020Huntsman Unveils Spray Polyurethane Foam Business Name: Huntsman Building Solutions
Source: PR Newswire
THE WOODLANDS, Texas, May 20, 2020 /PRNewswire/ -- Huntsman Corporation (NYSE: HUN) today announced that it has branded its world leading spray polyurethane foam (SPF) Business as Huntsman Building Solutions (HBS). HBS is a global platform within Huntsman's Polyurethanes division.
The SPF Business was formed when Huntsman acquired leading North American SPF company Icynene-Lapolla in February and combined it with Demilec, which Huntsman acquired in 2018. HBS is now one of the world's leading SPF providers and the fifth largest insulation manufacturer. Simon Baker, previously president of Demilec, and Doug Kramer, formerly president of Icynene-Lapolla, jointly lead HBS. Baker is responsible for Canada and international business and Kramer for U.S. business.
Commenting on the new name, Tony Hankins, President of Huntsman's Polyurethanes division, said: "Integration of the two legacy companies is progressing well and the selection of the new name is an important milestone for the Business. I'm excited about the opportunities that lie ahead, notwithstanding the current challenges caused by the Covid-19 pandemic. SPF is a highly attractive growth business; we have a product offering which is second to none and our products provide significant environmental benefits – not just in terms of energy savings, as they are the most effective thermal insulants in the market; but also in terms of the upcycling of PET bottles and scrap, which are used in our TEROL® polyols, a key ingredient in the production of SPF. HBS will consume significant volumes of our lower margin polymeric MDI – the other key ingredient in SPF formulations – to produce higher margin specialized SPF systems."
About Huntsman:
Huntsman Corporation is a publicly traded global manufacturer and marketer of differentiated and specialty chemicals with 2019 revenues of approximately $7 billion. Our chemical products number in the thousands and are sold worldwide to manufacturers serving a broad and diverse range of consumer and industrial end markets. We operate more than 70 manufacturing, R&D and operations facilities in approximately 30 countries and employ approximately 9,000 associates within our four distinct business divisions. For more information about Huntsman, please visit the company's website at www.huntsman.com.
Social Media:
Twitter: www.twitter.com/Huntsman_Corp
Facebook: www.facebook.com/huntsmancorp
LinkedIn: www.linkedin.com/company/huntsman
Forward-Looking Statements:
Certain information in this release constitutes forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. These statements are based on management's current beliefs and expectations. The forward-looking statements in this release are subject to uncertainty and changes in circumstances and involve risks and uncertainties that may affect the company's operations, markets, products, services, prices and other factors as discussed under the caption "Risk Factors" in the Huntsman companies' filings with the U.S. Securities and Exchange Commission. Significant risks and uncertainties may relate to, but are not limited to, volatile global economic conditions, cyclical and volatile product markets, disruptions in production at manufacturing facilities, reorganization or restructuring of Huntsman's operations, including any delay of, or other negative developments affecting the ability to implement cost reductions, timing of proposed transactions, and manufacturing optimization improvements in Huntsman businesses and realize anticipated cost savings, and other financial, economic, competitive, environmental, political, legal, regulatory and technological factors. The company assumes no obligation to provide revisions to any forward-looking statements should circumstances change, except as otherwise required by applicable laws.
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SOURCE Huntsman Corporation
Article Date
5/20/2020Huntsman Completes the Acquisition of CVC Thermoset Specialties
Source: PR Newswire
THE WOODLANDS, Texas, May 18, 2020 /PRNewswire/ -- Huntsman Corporation (NYSE: HUN) today announced that it has completed the acquisition of CVC Thermoset Specialties, a North American specialty chemical manufacturer serving the industrial composites, adhesives and coatings markets. Huntsman acquired the business from Emerald Performance Materials LLC, a majority-owned affiliate of American Securities LLC, for approximately $300 million, subject to customary closing adjustments. The all-cash transaction was funded from available liquidity.
The acquisition of CVC Thermoset Specialties, with its highly specialized toughening, curing and other additives used in a wide range of applications and markets, is strongly aligned with Huntsman's strategy of growing its specialty Advanced Materials portfolio. CVC Thermoset Specialties has annual revenues of approximately $115 million with manufacturing facilities located in Akron, Ohio, and Maple Shade, New Jersey.
Scott Wright, President of Huntsman's Advanced Materials division, commented: "These products deliver enhanced performance, such as durability, flexibility, and chemical, crack and impact resistance, in harsh environments. Its applications make vehicles, aircraft, infrastructure and electronics lighter, stronger and last longer. Not only will this acquisition strengthen Advanced Materials' position in North America, it offers products and technologies that we intend to rapidly grow and globalize by utilizing our existing asset footprint and routes to market in Europe and Asia. We expect to achieve approximately $15 million of annualized synergies within two years."
Peter Huntsman, Chairman, President and CEO, further commented: "This acquisition provides unique technology, cost efficiency, an expanded customer base, and greater shareholder value. We look forward to continuing to expand through transactions such as this."
About Huntsman:
Huntsman Corporation is a publicly traded global manufacturer and marketer of differentiated and specialty chemicals with 2019 revenues of approximately $7 billion. Our chemical products number in the thousands and are sold worldwide to manufacturers serving a broad and diverse range of consumer and industrial end markets. We operate more than 70 manufacturing, R&D and operations facilities in approximately 30 countries and employ approximately 9,000 associates within our four distinct business divisions. For more information about Huntsman, please visit the company's website at www.huntsman.com.
Social Media:
Twitter: www.twitter.com/Huntsman_Corp
Facebook: www.facebook.com/huntsmancorp
LinkedIn: www.linkedin.com/company/huntsman
Forward-Looking Statements:
Certain information in this release constitutes forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. These statements are based on management's current beliefs and expectations. The forward-looking statements in this release are subject to uncertainty and changes in circumstances and involve risks and uncertainties that may affect the company's operations, markets, products, services, prices and other factors as discussed under the caption "Risk Factors" in the Huntsman companies' filings with the U.S. Securities and Exchange Commission. Significant risks and uncertainties may relate to, but are not limited to, volatile global economic conditions, cyclical and volatile product markets, disruptions in production at manufacturing facilities, reorganization or restructuring of Huntsman's operations, including any delay of, or other negative developments affecting the ability to implement cost reductions, timing of proposed transactions, and manufacturing optimization improvements in Huntsman businesses and realize anticipated cost savings, and other financial, economic, competitive, environmental, political, legal, regulatory and technological factors. The company assumes no obligation to provide revisions to any forward-looking statements should circumstances change, except as otherwise required by applicable laws.
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SOURCE Huntsman Corporation
Article Date
5/18/20205/11/2020 - Huntsman Receives Six Responsible Care® Certificates for 2019 Health and Safety Performance
Huntsman Receives Six Responsible Care® Certificates for 2019 Health and Safety Performance
Source: PR Newswire
THE WOODLANDS, Texas, May 11, 2020 /PRNewswire/ -- Huntsman Corporation (NYSE: HUN) was honored recently by the American Chemistry Council (ACC) with six Responsible Care® Facility Safety Awards in recognition of the company's significant achievements in employee health and safety performance during 2019.
Certificates of Honor recognize facilities that experienced zero fatalities, zero cases resulting in days away from work, and zero job transfer or restriction cases among employees, according to current Occupational Safety and Health Administration (OSHA) guidelines. Huntsman's manufacturing sites in McIntosh, Alabama, and Freeport, Texas, earned Certificates of Honor.
Certificates of Excellence recognize the same among both employees and contractors. Huntsman's R&D locations in The Woodlands, Texas (Huntsman Advanced Technology Center) and Auburn Hills, Michigan, as well as production sites in East Lansing, Michigan, and Charlotte, North Carolina, received Certificates of Excellence.
Ron Gerrard, Huntsman's Senior Vice President of Environmental, Health and Safety and Manufacturing Excellence, said: "Huntsman is, of course, pleased to receive such high honors from the ACC and beyond proud of our associates and contractors who dedicate themselves to working safely every day. It is their commitment to safety that contributed to this recognition and the excellent progress we have made over many years reducing our injury rate, in line with other ACC Responsible Care® companies, to nearly four times lower than the latest U.S. chemical industry average."
About Huntsman:
Huntsman Corporation is a publicly traded global manufacturer and marketer of differentiated and specialty chemicals with 2019 revenues of approximately $7 billion. Our chemical products number in the thousands and are sold worldwide to manufacturers serving a broad and diverse range of consumer and industrial end markets. We operate more than 70 manufacturing, R&D and operations facilities in approximately 30 countries and employ approximately 9,000 associates within our four distinct business divisions. For more information about Huntsman, please visit the company's website at www.huntsman.com.
Social Media:
Twitter: www.twitter.com/Huntsman_Corp
Facebook: www.facebook.com/huntsmancorp
LinkedIn: www.linkedin.com/company/huntsman
Forward-Looking Statements:
Certain information in this release constitutes forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. These statements are based on management's current beliefs and expectations. The forward-looking statements in this release are subject to uncertainty and changes in circumstances and involve risks and uncertainties that may affect the company's operations, markets, products, services, prices and other factors as discussed under the caption "Risk Factors" in the Huntsman companies' filings with the U.S. Securities and Exchange Commission. Significant risks and uncertainties may relate to, but are not limited to, volatile global economic conditions, cyclical and volatile product markets, disruptions in production at manufacturing facilities, reorganization or restructuring of Huntsman's operations, including any delay of, or other negative developments affecting the ability to implement cost reductions, timing of proposed transactions, and manufacturing optimization improvements in Huntsman businesses and realize anticipated cost savings, and other financial, economic, competitive, environmental, political, legal, regulatory and technological factors. The company assumes no obligation to provide revisions to any forward-looking statements should circumstances change, except as otherwise required by applicable laws.
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SOURCE Huntsman Corporation
Article Date
5/11/2020Venator Announces First Quarter 2020 Results; Stable Pricing and Strong Sequential Volume Improvement
Source: PR Newswire
WYNYARD, UK, May 6, 2020 /PRNewswire/ --
First Quarter 2020 Highlights
Three months ended | ||||||||||||
March 31, | December 31, 2019 | |||||||||||
(In millions, except per share amounts) | 2020 | 2019 | ||||||||||
Revenues | $ | 532 | $ | 562 | $ | 464 | ||||||
Net income (loss) attributable to Venator(a) | $ | 7 | $ | (3) | $ | (174) | ||||||
Adjusted net income (loss) attributable to Venator(1)(a) | $ | 12 | $ | 14 | $ | (10) | ||||||
Adjusted EBITDA(1)(a) | $ | 57 | $ | 60 | $ | 23 | ||||||
Diluted earnings (loss) per share(a) | $ | 0.07 | $ | (0.03) | $ | (1.63) | ||||||
Adjusted diluted earnings (loss) per share(1)(a) | $ | 0.11 | $ | 0.13 | $ | (0.09) | ||||||
Net cash (used in) provided by operating activities | $ | (58) | $ | (29) | $ | 69 | ||||||
Free cash flow(3) | $ | (85) | $ | (82) | $ | 20 | ||||||
(a) Includes a $3 million benefit in the three months ended December 31, 2019, due to a change in plant utilization rates, which increased our overhead absorption and corresponding inventory valuation at certain facilities |
See end of press release for footnote explanations |
Venator Materials PLC ("Venator") (NYSE: VNTR) today reported first quarter 2020 results with revenues of $532 million, net income attributable to Venator of $7 million, adjusted net income attributable to Venator of $12 million and adjusted EBITDA of $57 million.
Simon Turner, President and CEO of Venator, commented:
"I am pleased with our first quarter results. Prices remained stable across our portfolio and our TiO2 volumes improved 13% compared to the fourth quarter of 2019. As the coronavirus pandemic unfolded, we took swift and decisive actions to prioritize and protect the health and safety of our employees and the integrity of our operations, all of which continue to operate to meet customer demand.
"While the impact on our first quarter earnings was limited, we expect COVID-19 will have a meaningful impact on demand in the second quarter. We estimate that TiO2 volumes could decline 15% to 20% in the second quarter compared to the first quarter. We remain focused on delivering on our self-help initiatives and are implementing a range of immediate cost actions that we expect will yield approximately $20 million of adjusted EBITDA benefit in 2020. In addition, we are taking steps to reduce our cash uses and improve our liquidity, including reducing planned capital expenditures by approximately $25 million. We believe these actions will better position Venator to navigate the impact of the pandemic and we will continue to assess the need for additional actions."
Segment Analysis for 1Q20 Compared to 1Q19
Titanium Dioxide
The Titanium Dioxide segment generated revenues of $402 million in the three months ended March 31, 2020, a decrease of $23 million, or 5%, compared to the same period in 2019. The decrease was primarily due to a 1% decline in the average TiO2 selling price, a 2% unfavorable impact from foreign currency translation, a 1% decrease in sales volumes, and a 1% unfavorable impact due to mix and other. The decline in the average TiO2 selling price was primarily attributable to a lower global average functional TiO2 price. Sequentially, the average TiO2 selling price remained stable. Sales volumes declined compared to the prior year period primarily in certain specialty applications and were partially offset by higher demand for new products and for plastics applications.
Adjusted EBITDA for the Titanium Dioxide segment was $46 million for the three months ended March 31, 2020, a decrease of $15 million compared to the same period in 2019. The decline was primarily a result of a lower average TiO2 selling price, higher ore costs and a decline in overall TiO2 volumes. This was partially offset by lower selling, general and administrative costs, a decline in other raw materials and energy costs and a $3 million benefit from our 2019 Business Improvement Program.
Performance Additives
The Performance Additives segment generated $130 million of revenues in the three months ended March 31, 2020, a decline of $7 million, or 5%, compared to the same period in 2019. The decline was primarily due to a 4% decrease in sales volumes, a 1% unfavorable impact of foreign currency translation and a 1% unfavorable impact of mix and other, partially offset by a 1% increase in the average selling price. The decline in sales volumes was primarily a result of lower demand for certain coatings and construction-related products and portfolio optimization in color pigments and timber treatment.
Adjusted EBITDA in the Performance Additives segment was $22 million, an increase of $7 million for the three months ended March 31, 2020 compared to the same period in 2019. The increase was primarily due to a favorable mix of sales within the businesses, lower selling, general and administrative costs, lower raw material, energy and other costs and a $1 million benefit from our 2019 Business Improvement Program, partially offset by a decline in sales volumes.
Corporate and Other
Corporate and other represents expenses which are not allocated to our segments. Losses from Corporate and Other were $11 million, or $5 million lower in the three months ended March 31, 2020 compared to the same period in 2019. This was primarily as a result of favorable foreign currency translation and lower costs in various corporate functions. We expect Corporate and other to be approximately $50 million for the full year 2020.
Tax Items
We recorded an income tax benefit of $2 million for the three months ended March 31, 2020, compared to an income tax expense of $1 million for the three months ended March 31, 2019. Our adjusted effective tax rate was 35% for the three months ended March 31, 2020 compared to 38% for the same period in 2019.
Our income taxes are significantly affected by the mix of income and losses in the tax jurisdictions in which we operate, as impacted by the presence of valuation allowances in certain tax jurisdictions. In 2020, we expect an adjusted effective tax rate of approximately 35%. We expect cash taxes in 2020 to be less than $5 million and we continue to expect our adjusted effective tax rate in the long-term will be approximately 15% to 20%.
Liquidity and Capital Resources
As of March 31, 2020, we had cash and cash equivalents of $25 million compared to $55 million as of December 31, 2019. In addition, we have in place an asset-based revolving credit facility available for our working capital needs and general corporate purposes with an availability of $191 million as of March 31, 2020. As of March 31, 2020, net debt was $781 million compared to $695 million as of December 31, 2019.
In the first quarter of 2020, capital expenditures totaled $31 million. In 2020, we expect total capital expenditures to be approximately $60 million compared to our prior estimate of $80 million to $90 million.
Earnings Conference Call Information
We will hold a conference call to discuss our first quarter 2020 results on Wednesday, May 6, 2020 at 10:00 a.m. ET.
Call-in numbers for the conference call: | |
U.S. participants | 1-800-367-2403 |
International participants | 1-334-777-6978 |
(No passcode required) | |
Webcast Information
The conference call will be available via webcast and can be accessed from the company's website at venatorcorp.com/investor-relations.
Replay Information
The conference call will be available for replay beginning May 6, 2020 and ending May 13, 2020.
Call-in numbers for the replay: | |
U.S. participants | 1-888-203-1112 |
International participants | 1-719-457-0820 |
Passcode | 5191172 |
Upcoming Conferences
During the second quarter of 2020, a member of management is expected to present at the KeyBanc Industrials & Basic Materials conference on May 26-29, 2020, the Deutsche Bank Global Industrials & Materials Summit on June 8-9, 2020 and the BMO Chemical & Packaging conference on June 24, 2020. A webcast of the presentations, if applicable, along with accompanying materials will be available at venatorcorp.com/investor-relations.
Table 1 — Results of Operations | ||||||||
Three months ended | ||||||||
March 31, | ||||||||
(In millions, except per share amounts) | 2020 | 2019 | ||||||
Revenues | $ | 532 | $ | 562 | ||||
Cost of goods sold | 471 | 486 | ||||||
Operating expenses | 42 | 55 | ||||||
Restructuring, impairment and plant closing and transition costs | 7 | 12 | ||||||
Operating income | 12 | 9 | ||||||
Interest expense, net | (10) | (11) | ||||||
Other income | 4 | 1 | ||||||
Income (loss) before income taxes | 6 | (1) | ||||||
Income tax benefit (expense) | 2 | (1) | ||||||
Net income (loss) | 8 | (2) | ||||||
Net income attributable to noncontrolling interests | (1) | (1) | ||||||
Net income (loss) attributable to Venator | $ | 7 | $ | (3) | ||||
Adjusted EBITDA(1) | $ | 57 | $ | 60 | ||||
Adjusted net income(1) | $ | 12 | $ | 14 | ||||
Basic earnings (loss) per share | $ | 0.07 | $ | (0.03) | ||||
Diluted earnings (loss) per share | $ | 0.07 | $ | (0.03) | ||||
Adjusted earnings per share(1) | $ | 0.11 | $ | 0.13 | ||||
Adjusted diluted earnings per share(1) | $ | 0.11 | $ | 0.13 | ||||
Ordinary share information: | ||||||||
Basic shares outstanding | 106.7 | 106.5 | ||||||
Diluted shares | 106.7 | 106.8 | ||||||
See end of press release for footnote explanations |
Table 2 — Results of Operations by Segment | ||||||||||
Three months ended | ||||||||||
March 31, | Favorable / | |||||||||
(In millions) | 2020 | 2019 | (Unfavorable) | |||||||
Segment Revenues: | ||||||||||
Titanium Dioxide | $ | 402 | $ | 425 | (5)% | |||||
Performance Additives | 130 | 137 | (5)% | |||||||
Total | $ | 532 | $ | 562 | (5)% | |||||
Segment Adjusted EBITDA(1): | ||||||||||
Titanium Dioxide | $ | 46 | $ | 61 | (25)% | |||||
Performance Additives | 22 | 15 | 47% | |||||||
Corporate and other | (11) | (16) | 31% | |||||||
Total | $ | 57 | $ | 60 | (5)% | |||||
See end of press release for footnote explanations |
Table 3 — Factors Impacting Sales Revenue | |||||||||
Three months ended | |||||||||
March 31, 2020 vs. 2019 | |||||||||
Average Selling Price(a) | |||||||||
Local Currency | Exchange Rate | Sales Mix & Other | Sales Volume(b) | Total | |||||
Titanium Dioxide | (1)% | (2)% | (1)% | (1)% | (5)% | ||||
Performance Additives | 1% | (1)% | (1)% | (4)% | (5)% | ||||
Total Company | (1)% | (1)% | (1)% | (2)% | (5)% | ||||
(a) Excludes revenues from tolling arrangements, by-products and raw materials |
(b) Excludes sales volumes of by-products and raw materials |
Table 4 — Reconciliation of U.S. GAAP to Non-GAAP Measures | ||||||||||||||||||||||||
EBITDA | Net Income (Loss) | Diluted Earnings (Loss) Per Share(1) | ||||||||||||||||||||||
Three months ended | Three months ended | Three months ended | ||||||||||||||||||||||
March 31, | March 31, | March 31, | ||||||||||||||||||||||
(In millions, except per share amounts) | 2020 | 2019 | 2020 | 2019 | 2020 | 2019 | ||||||||||||||||||
Net income (loss) | $ | 8 | $ | (2) | $ | 8 | $ | (2) | $ | 0.08 | $ | (0.02) | ||||||||||||
Net income attributable to noncontrolling interests | (1) | (1) | (1) | (1) | (0.01) | (0.01) | ||||||||||||||||||
Net income (loss) attributable to Venator | 7 | (3) | 7 | (3) | 0.07 | (0.03) | ||||||||||||||||||
Interest expense, net | 10 | 11 | ||||||||||||||||||||||
Income tax (benefit) expense | (2) | 1 | ||||||||||||||||||||||
Depreciation and amortization | 28 | 26 | ||||||||||||||||||||||
Business acquisition and integration expenses | 1 | 2 | 1 | 2 | 0.01 | 0.02 | ||||||||||||||||||
Loss on disposal of businesses/assets | 2 | — | 2 | — | 0.02 | — | ||||||||||||||||||
Amortization of pension and postretirement actuarial losses | 3 | 4 | 3 | 4 | 0.03 | 0.04 | ||||||||||||||||||
Net plant incident costs | 1 | 7 | 1 | 7 | 0.01 | 0.06 | ||||||||||||||||||
Restructuring, impairment, plant closing and transition costs | 7 | 12 | 7 | 12 | 0.06 | 0.11 | ||||||||||||||||||
Income tax adjustments(2) | — | — | (9) | (8) | (0.09) | (0.07) | ||||||||||||||||||
Adjusted(1) | $ | 57 | $ | 60 | $ | 12 | $ | 14 | $ | 0.11 | $ | 0.13 | ||||||||||||
Adjusted income tax expense(2) | 7 | 9 | ||||||||||||||||||||||
Net income attributable to noncontrolling interests, net of tax | 1 | 1 | ||||||||||||||||||||||
Adjusted pre-tax income | $ | 20 | $ | 24 | ||||||||||||||||||||
Adjusted effective tax rate | 35% | 38% | ||||||||||||||||||||||
EBITDA | Net Income (Loss) | Diluted Earnings (Loss) Per Share(1) | ||||||||||||||||||||||
Three months ended December 31, | Three months ended December 31, | Three months ended December 31, | ||||||||||||||||||||||
(In millions, except per share amounts) | 2019 | 2019 | 2019 | |||||||||||||||||||||
Net loss | $ | (173) | $ | (173) | $ | (1.62) | ||||||||||||||||||
Net income attributable to noncontrolling interests | (1) | (1) | (0.01) | |||||||||||||||||||||
Net loss attributable to Venator | (174) | (174) | (1.63) | |||||||||||||||||||||
Interest expense, net | 10 | |||||||||||||||||||||||
Income tax expense | 150 | |||||||||||||||||||||||
Depreciation and amortization | 28 | |||||||||||||||||||||||
Business acquisition and integration adjustments | (4) | (4) | (0.04) | |||||||||||||||||||||
Separation expense, net | (3) | (3) | (0.03) | |||||||||||||||||||||
Certain legal settlements and related expenses | 1 | 1 | 0.01 | |||||||||||||||||||||
Amortization of pension and postretirement actuarial losses | 3 | 3 | 0.03 | |||||||||||||||||||||
Net plant incident costs | 3 | 3 | 0.03 | |||||||||||||||||||||
Restructuring, impairment, plant closing and transition costs | 9 | 9 | 0.08 | |||||||||||||||||||||
Income tax adjustments(2) | — | 155 | 1.46 | |||||||||||||||||||||
Adjusted(1) | $ | 23 | $ | (10) | $ | (0.09) | ||||||||||||||||||
Adjusted income tax benefit(2) | $ | (5) | ||||||||||||||||||||||
Net income attributable to noncontrolling interests, net of tax | 1 | |||||||||||||||||||||||
Adjusted pre-tax loss | $ | (14) | ||||||||||||||||||||||
Adjusted effective tax rate | 35 | % | ||||||||||||||||||||||
See end of press release for footnote explanations |
Table 5 — Selected Balance Sheet Items | ||||||||
March 31, | December 31, | |||||||
(In millions) | 2020 | 2019 | ||||||
Cash and cash equivalents | $ | 25 | $ | 55 | ||||
Accounts and notes receivable, net | 377 | 321 | ||||||
Inventories | 492 | 513 | ||||||
Prepaid expenses and other current assets | 74 | 88 | ||||||
Property, plant and equipment, net | 948 | 989 | ||||||
Other assets | 307 | 299 | ||||||
Total assets | $ | 2,223 | $ | 2,265 | ||||
Accounts payable | $ | 301 | $ | 351 | ||||
Other current liabilities | 112 | 124 | ||||||
Current portion of debt | 70 | 13 | ||||||
Long-term debt | 736 | 737 | ||||||
Non-current payable to affiliates | 30 | 30 | ||||||
Other non-current liabilities | 315 | 337 | ||||||
Total equity | 659 | 673 | ||||||
Total liabilities and equity | $ | 2,223 | $ | 2,265 | ||||
Table 6 — Outstanding Debt | ||||||||
March 31, | December 31, | |||||||
(In millions) | 2020 | 2019 | ||||||
Debt: | ||||||||
Senior Notes | $ | 371 | $ | 371 | ||||
Term Loan Facility | 361 | 361 | ||||||
Other debt | 74 | 18 | ||||||
Total debt - excluding affiliates | 806 | 750 | ||||||
Total cash | 25 | 55 | ||||||
Net debt - excluding affiliates | $ | 781 | $ | 695 | ||||
Table 7 — Summarized Statement of Cash Flows | ||||||||
Three months ended | ||||||||
March 31, | ||||||||
(In millions) | 2020 | 2019 | ||||||
Total cash at beginning of period | $ | 55 | $ | 165 | ||||
Net cash used in operating activities | (58) | (29) | ||||||
Net cash used in investing activities | (27) | (53) | ||||||
Net cash provided by (used in) financing activities | 56 | (3) | ||||||
Effect of exchange rate changes on cash | (1) | — | ||||||
Total cash at end of period | $ | 25 | $ | 80 | ||||
Supplemental cash flow information: | ||||||||
Cash paid for interest | $ | (14) | $ | (18) | ||||
Cash paid for income taxes | — | (1) | ||||||
Capital expenditures | (31) | (52) | ||||||
Depreciation and amortization | 28 | 26 | ||||||
Changes in primary working capital: | ||||||||
Accounts receivable | (62) | (61) | ||||||
Inventories | 9 | 35 | ||||||
Accounts payable | (20) | (22) | ||||||
Total cash used in primary working capital | $ | (73) | $ | (48) | ||||
Three months ended | ||||||||
March 31, | ||||||||
(In millions) | 2020 | 2019 | ||||||
Free cash flow(3): | ||||||||
Net cash used in operating activities | $ | (58) | $ | (29) | ||||
Capital expenditures | (31) | (52) | ||||||
Other investing activities | 4 | (1) | ||||||
Total free cash flow(3) | $ | (85) | $ | (82) | ||||
Adjusted EBITDA(1) | $ | 57 | $ | 60 | ||||
Capital expenditures excluding cash paid for Pori rebuild | (30) | (28) | ||||||
Cash paid for interest | (14) | (18) | ||||||
Cash paid for income taxes | — | (1) | ||||||
Primary working capital change | (73) | (48) | ||||||
Restructuring | (4) | (7) | ||||||
Maintenance & other | (20) | (4) | ||||||
Net cash flows associated with Pori | (1) | (36) | ||||||
Total free cash flow(3) | $ | (85) | $ | (82) | ||||
See end of press release for numbered footnote explanations |
Footnotes | |
(1) | Our management uses adjusted EBITDA to assess financial performance. Adjusted EBITDA is defined as net income/loss before interest income/expense, net, income tax expense/benefit, depreciation and amortization, and net income attributable to noncontrolling interests, as well as eliminating the following adjustments: (a) business acquisition and integration expenses/adjustments; (b) loss/gain on disposition of business/assets; (c) amortization of pension and postretirement actuarial losses/gains; (d) net plant incident costs/credits; and (e) restructuring, impairment, and plant closing and transition costs/credits; (f) certain legal settlements and related expenses/gains; (g) amortization of pension and postretirement actuarial losses/gains; (h) net plant incident costs/credits; and (i) restructuring, impairment, and plant closing and transition costs/credits. We believe that net income is the performance measure calculated and presented in accordance with U.S. GAAP that is most directly comparable to adjusted EBITDA. |
We believe adjusted EBITDA is useful to investors in assessing our ongoing financial performance and provides improved comparability between periods through the exclusion of certain items that management believes are not indicative of our operational profitability and that may obscure underlying business results and trends. However, this measure should not be considered in isolation or viewed as a substitute for net income or other measures of performance determined in accordance with U.S. GAAP. Moreover, adjusted EBITDA as used herein is not necessarily comparable to other similarly titled measures of other companies due to potential inconsistencies in the methods of calculation. Our management believes this measure is useful to compare general operating performance from period to period and to make certain related management decisions. Adjusted EBITDA is also used by securities analysts, lenders and others in their evaluation of different companies because it excludes certain items that can vary widely across different industries or among companies within the same industry. For example, interest expense can be highly dependent on a company's capital structure, debt levels and credit ratings. Therefore, the impact of interest expense on earnings can vary significantly among companies. In addition, the tax positions of companies can vary because of their differing abilities to take advantage of tax benefits and because of the tax policies of the various jurisdictions in which they operate. As a result, effective tax rates and tax expense can vary considerably among companies. Finally, companies employ productive assets of different ages and utilize different methods of acquiring and depreciating such assets. This can result in considerable variability in the relative costs of productive assets and the depreciation and amortization expense among companies. | |
Nevertheless, our management recognizes that there are limitations associated with the use of adjusted EBITDA in the evaluation of us as compared to net income. Our management compensates for the limitations of using adjusted EBITDA by using this measure to supplement U.S. GAAP results to provide a more complete understanding of the factors and trends affecting the business rather than U.S. GAAP results alone. | |
In addition to the limitations noted above, adjusted EBITDA excludes items that may be recurring in nature and should not be disregarded in the evaluation of performance. However, we believe it is useful to exclude such items to provide a supplemental analysis of current results and trends compared to other periods because certain excluded items can vary significantly depending on specific underlying transactions or events, and the variability of such items may not relate specifically to ongoing operating results or trends and certain excluded items, while potentially recurring in future periods, may not be indicative of future results. | |
Adjusted net income is computed by eliminating the after-tax amounts related to the following from net income attributable to Venator Materials PLC ordinary shareholders: (a) business acquisition and integration expenses/adjustments; (b) loss/gain on disposition of business/assets; (c) amortization of pension and postretirement actuarial losses/gains; (d) net plant incident costs/credits; and (e) restructuring, impairment, and plant closing and transition costs/credits; (f) certain legal settlements and related expenses/gains; (g) amortization of pension and postretirement actuarial losses/gains; (h) net plant incident costs/credits; and (i) restructuring, impairment, and plant closing and transition costs/credits. Basic adjusted net earnings per share excludes dilution and is computed by dividing adjusted net income by the weighted average number of shares outstanding during the period. Adjusted diluted net earnings per share reflects all potential dilutive ordinary shares outstanding during the period increased by the number of additional shares that would have been outstanding as dilutive securities. | |
Adjusted net income (loss) and adjusted net earnings (loss) per share amounts are presented solely as supplemental information. These measures exclude similar noncash items as Adjusted EBITDA in order to assist our investors in comparing our performance from period to period and as such, bear similar risks as Adjusted EBITDA as documented above. For that reason, adjusted net income and the related per share amounts, should not be considered in isolation and should be considered only to supplement analysis of U.S. GAAP results. | |
(2) | Prior to the second quarter of 2019, the income tax impacts, if any, of each adjusting item represented a ratable allocation of the total difference between the unadjusted tax expense and the total adjusted tax expense, computed without consideration of any adjusting items using a with and without approach. |
Beginning in the three- and six-month periods ended June 30, 2019, income tax expense is adjusted by the amount of additional tax expense or benefit that we would accrue if we used non-GAAP results instead of GAAP results in the calculation of our tax liability, taking into consideration our tax structure. We use a normalized effective tax rate of 35%, which reflects the weighted average tax rate applicable under the various jurisdictions in which we operate. This non-GAAP tax rate eliminates the effects of non-recurring and period specific items which are often attributable to restructuring and acquisition decisions and can vary in size and frequency. This rate is subject to change over time for various reasons, including changes in the geographic business mix, valuation allowances, and changes in statutory tax rates. | |
We eliminate the effect of significant changes to income tax valuation allowances from our presentation of adjusted net income to allow investors to better compare our ongoing financial performance from period to period. We do not adjust for insignificant changes in tax valuation allowances because we do not believe it provides more meaningful information than is provided under GAAP. We believe that our revised approach enables a clearer understanding of the long term impact of our tax structure on post tax earnings. | |
(3) | Management internally uses a free cash flow measure: (a) to evaluate the Company's liquidity, (b) to evaluate strategic investments and (c) to evaluate the Company's ability to incur and service debt. Free cash flow is not a defined term under U.S. GAAP, and it should not be inferred that the entire free cash flow amount is available for discretionary expenditures. The Company defines free cash flow as cash flows provided by (used in) operating activities from continuing operations and used in investing activities. Free cash flow is typically derived directly from the Company's condensed consolidated statement of cash flows; however, it may be adjusted for items that affect comparability between periods. Free cash flow is presented as supplemental information. |
About Venator
Venator is a global manufacturer and marketer of chemical products that comprise a broad range of pigments and additives that bring color and vibrancy to buildings, protect and extend product life, and reduce energy consumption. We market our products globally to a diversified group of industrial customers through two segments: Titanium Dioxide, which consists of our TiO2 business, and Performance Additives, which consists of our functional additives, color pigments, timber treatment and water treatment businesses. Based in Wynyard, U.K., Venator employs approximately 4,000 associates and sells its products in more than 110 countries.
Social Media:
Twitter: www.twitter.com/VenatorCorp
Facebook: www.facebook.com/venatorcorp
LinkedIn: www.linkedin.com/company/venator-corp
Cautionary Statement Concerning Forward-Looking Statements
Certain statements contained in this press release constitute "forward looking statements" within the meaning of the U.S. Private Securities Litigation Reform Act of 1995. These forward looking statements represent Venator's expectations or beliefs concerning future events, and it is possible that the expected results described in this press release will not be achieved. These forward looking statements are subject to risks, uncertainties and other factors, many of which are outside of Venator's control, that could cause actual results to differ materially from the results discussed in the forward looking statements, including the impacts and duration of the global outbreak of the Coronavirus Disease 2019 pandemic on the global economy and all aspects of our business, including our employees, customers, suppliers, partners, results of operations, financial condition and liquidity, global economic conditions, our ability to maintain sufficient working capital, our ability to access capital markets on favorable terms, our ability to transfer technology and manufacturing capacity from our Pori, Finland manufacturing facility to other sites in our manufacturing network, the costs associated with such transfer and the closure of our Pori facility, our ability to realize financial and operational benefits from our business improvement plans and initiatives, impacts on TiO2 markets and the broader global economy from the imposition of tariffs by the U.S. and other countries, changes in raw material and energy prices, or interruptions in raw materials and energy, industry production capacity and operating rates, the supply demand balance for our products and that of competing products, pricing pressures, technological developments, legal claims by or against us, changes in government regulations, including increased manufacturing, labeling and waste disposal regulations and the classification of TiO2 as a carcinogen in the EU, geopolitical events, cyberattacks and public health crises such as coronavirus.
Any forward looking statement speaks only as of the date on which it is made, and, except as required by law, Venator does not undertake any obligation to update or revise any forward looking statement, whether as a result of new information, future events or otherwise. New factors emerge from time to time, and it is not possible for Venator to predict all such factors. When considering these forward looking statements, you should keep in mind the risk factors and other cautionary statements in Venator's Annual Report on Form 10-K for the year ended December 31, 2019 filed with the SEC, and in its Quarterly Reports on Form 10-Q for the three months ended March 31, 2020 filed with the SEC. The risk factors and other factors noted therein could cause its actual results to differ materially from those contained in any forward looking statement.
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SOURCE Venator Materials PLC
Article Date
5/6/2020Huntsman Announces Second Quarter 2020 Common Dividend
Source: PR Newswire
THE WOODLANDS, Texas, May 5, 2020 /PRNewswire/ -- Huntsman Corporation (NYSE: HUN) today announced that its board of directors has declared a $0.1625 per share cash dividend on its common stock. The dividend is payable on June 30, 2020, to stockholders of record as of June 15, 2020.
About Huntsman:
Huntsman Corporation is a publicly traded global manufacturer and marketer of differentiated and specialty chemicals with 2019 revenues of approximately $7 billion. Our chemical products number in the thousands and are sold worldwide to manufacturers serving a broad and diverse range of consumer and industrial end markets. We operate more than 70 manufacturing, R&D and operations facilities in approximately 30 countries and employ approximately 9,000 associates within our four distinct business divisions. For more information about Huntsman, please visit the company's website at www.huntsman.com.
Social Media:
Twitter: www.twitter.com/Huntsman_Corp
Facebook: www.facebook.com/huntsmancorp
LinkedIn: www.linkedin.com/company/huntsman
Forward-Looking Statements:
Certain information in this release constitutes forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. These statements are based on management's current beliefs and expectations. The forward-looking statements in this release are subject to uncertainty and changes in circumstances and involve risks and uncertainties that may affect the company's operations, markets, products, services, prices and other factors as discussed under the caption "Risk Factors" in the Huntsman companies' filings with the U.S. Securities and Exchange Commission. Significant risks and uncertainties may relate to, but are not limited to, volatile global economic conditions, cyclical and volatile product markets, disruptions in production at manufacturing facilities, reorganization or restructuring of Huntsman's operations, including any delay of, or other negative developments affecting the ability to implement cost reductions, timing of proposed transactions, and manufacturing optimization improvements in Huntsman businesses and realize anticipated cost savings, and other financial, economic, competitive, environmental, political, legal, regulatory and technological factors. The company assumes no obligation to provide revisions to any forward-looking statements should circumstances change, except as otherwise required by applicable laws.
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SOURCE Huntsman Corporation
Article Date
5/5/20205/1/2020 - Huntsman Announces First Quarter 2020 Earnings; A Strong Balance Sheet with Robust Liquidity
Huntsman Announces First Quarter 2020 Earnings; A Strong Balance Sheet with Robust Liquidity
Source: PR Newswire
THE WOODLANDS, Texas, May 1, 2020 /PRNewswire/ --
First Quarter Highlights
Three months ended | ||||
March 31, | ||||
In millions, except per share amounts | 2020 | 2019 | ||
Revenues | $ 1,593 | $ 1,669 | ||
Net income | $ 708 | $ 131 | ||
Adjusted net income(1) | $ 65 | $ 85 | ||
Diluted income per share | $ 3.16 | $ 0.51 | ||
Adjusted diluted income per share(1) | $ 0.29 | $ 0.36 | ||
Adjusted EBITDA(1) | $ 165 | $ 204 | ||
Net cash used in operating activities from continuing operations | $ (40) | $ (40) | ||
Free cash flow from continuing operations(2) | $ (101) | $ (101) | ||
See end of press release for footnote explanations and reconciliations of non-GAAP measures. | ||||
Huntsman Corporation (NYSE: HUN) today reported first quarter 2020 results with revenues of $1,593 million, net income of $708 million, adjusted net income of $65 million and adjusted EBITDA of $165 million.
Peter R. Huntsman, Chairman, President and CEO, commented:
"Fortunately, we have been well prepared for this global economic crisis. The ongoing transformation of our business has made us a much better Company. Our balance sheet is stronger than ever before, with significant cash and robust liquidity. Visibility has at no time been more difficult, but our portfolio of businesses has never been more differentiated. In this environment we are laser focused on what is in our control and protecting our balance sheet strength. Having learned from prior crises, we preemptively reduced unnecessary inventories and are reducing capital spending this year by 30%, or approximately $90 million, by delaying discretionary spending. We have proactively taken other measures, including suspending share repurchases, and various cost reduction measures yielding immediate benefit. We will accelerate our plans to achieve synergies with our recent and pending strategic bolt-on acquisitions and aggressively press forward with the global scale up of our differentiated platform. Our Company is ready and able to take advantage of opportunities to come, and I am confident that Huntsman will emerge from this global crisis a stronger Company."
Segment Analysis for 1Q20 Compared to 1Q19
Polyurethanes
The decrease in revenues in our Polyurethanes segment for the three months ended March 31, 2020 compared to the same period of 2019 was due to lower MDI average selling prices and modestly lower overall polyurethanes sales volumes. MDI average selling prices decreased primarily due to a decline in component MDI selling prices in China and Europe. Overall polyurethanes sales volumes decreased slightly primarily due to decreased demand across most major markets, partially offset by modest growth in MDI sales volumes. The decrease in segment adjusted EBITDA was primarily due to lower MDI margins driven by lower MDI pricing, partially offset by higher MDI sales volumes.
Performance Products
The decrease in revenues in our Performance Products segment for the three months ended March 31, 2020 compared to the same period of 2019 was due to lower average selling prices and lower sales volumes. Average selling prices decreased primarily due to lower raw material costs. Sales volumes decreased primarily due to weakened market conditions in our maleic anhydride business, partially offset by higher sales volumes in our amines business. The increase in segment adjusted EBITDA was primarily due to higher margins in our performance amines business and lower fixed costs.
Advanced Materials
The decrease in revenues in our Advanced Materials segment for the three months ended March 31, 2020 compared to the same period in 2019 was due to lower sales volumes and lower average selling prices. Sales volumes decreased across most markets, particularly commodity, industrial and aerospace, primarily due to economic slowdown and customer destocking. Average selling prices decreased primarily due to the impact of a stronger U.S. dollar against major international currencies, partially offset by higher local currency selling prices. The decrease in segment adjusted EBITDA was primarily due to lower sales volumes, partially offset by lower fixed costs.
Textile Effects
The decrease in revenues in our Textile Effects segment for the three months ended March 31, 2020 compared to the same period of 2019 was due to lower average selling prices, partially offset by higher sales volumes. Average selling prices decreased as a result of competitive market pressures and the impact of a stronger U.S. dollar against major international currencies. Sales volumes increased mainly in Europe and Asia. The decrease in segment adjusted EBITDA was primarily due to lower sales revenues, partially offset by lower raw material costs and lower fixed costs.
Corporate, LIFO and other
For the three months ended March 31, 2020, adjusted EBITDA from Corporate and other for Huntsman Corporation decreased by $5 million to a loss of $45 million from a loss of $40 million for the same period of 2019.
Liquidity and Capital Resources
During the three months ended March 31, 2020, our free cash flow from continuing operations was a use of $101 million compared to a use of $101 million in the prior year period. As of March 31, 2020, we had $2.9 billion of combined cash and unused borrowing capacity.
During the three months ended March 31, 2020, we spent $61 million on capital expenditures compared to $61 million in the same period of 2019. For 2020, we have reduced our projected capital spend by $90 million, or approximately 30%, and now expect to spend between approximately $225 million to $235 million on capital expenditures. We have deferred a portion of capital spending on the new MDI splitter in Geismar, Louisiana for six months leaving roughly $40 million of capital spend in 2020 with the remaining spend of approximately $120 million in 2021 and 2022.
During the three months ended March 31, 2020, we spent approximately $96 million to repurchase approximately 5.4 million shares. As of the end of the first quarter 2020, we have approximately $420 million remaining on our existing $1 billion multiyear share repurchase program. We have temporarily suspended our share repurchase program.
Income Taxes
In the first quarter, our adjusted effective tax rate was 18%. We expect our forward adjusted effective tax rate will be approximately 22% - 24%.
Earnings Conference Call Information
We will hold a conference call to discuss our first quarter 2020 financial results on Friday, May 1, 2020 at 10:00 a.m. ET.
Webcast link: https://78449.themediaframe.com/dataconf/productusers/hun/mediaframe/37217/indexl.html
Participant dial-in numbers: | |
Domestic callers: | (877) 402-8037 |
International callers: | (201) 378-4913 |
The conference call will be accompanied by presentation slides that will be accessible via the webcast link and Huntsman's investor relations website, ir.huntsman.com. Upon conclusion of the call, the webcast replay will be accessible via Huntsman's website.
Upcoming Conferences
During the second quarter 2020 a member of management is expected to present at:
Fermium Research Virtual Chemicals Conference, May 5, 2020
Wells Fargo Virtual Industrials Conference, May 6, 2020
Goldman Sachs Virtual Industrials & Materials Conference, May 14, 2020
KeyBanc Capital Markets' Virtual Industrial & Basic Materials Conference, May 27, 2020
Tudor, Pickering, Holt & Co. Virtual Hotter 'N Hell 2020 Conference, June 11, 2020
A webcast of the presentation, if applicable, along with accompanying materials will be available at ir.huntsman.com.
Table 1 – Results of Operations | ||||
Three months ended | ||||
March 31, | ||||
In millions, except per share amounts | 2020 | 2019 | ||
Revenues | $ 1,593 | $ 1,669 | ||
Cost of goods sold | 1,296 | 1,310 | ||
Gross profit | 297 | 359 | ||
Operating expenses | 240 | 243 | ||
Restructuring, impairment and plant closing costs | 3 | 1 | ||
Operating income | 54 | 115 | ||
Interest expense, net | (18) | (30) | ||
Equity in income of investment in unconsolidated affiliates | 2 | 10 | ||
Fair value adjustments to Venator investment | (110) | 76 | ||
Loss on early extinguishment of debt | - | (23) | ||
Other income, net | 10 | 5 | ||
(Loss) income from continuing operations before income taxes | (62) | 153 | ||
Income tax expense | (7) | (45) | ||
(Loss) income from continuing operations | (69) | 108 | ||
Income from discontinued operations, net of tax(3) | 777 | 23 | ||
Net income | 708 | 131 | ||
Net income attributable to noncontrolling interests, net of tax | (3) | (12) | ||
Net income attributable to Huntsman Corporation | $ 705 | $ 119 | ||
Adjusted EBITDA(1) | $ 165 | $ 204 | ||
Adjusted net income(1) | $ 65 | $ 85 | ||
Basic income per share | $ 3.16 | $ 0.51 | ||
Diluted income per share | $ 3.16 | $ 0.51 | ||
Adjusted diluted income per share(1) | $ 0.29 | $ 0.36 | ||
Common share information: | ||||
Basic weighted average shares | 223 | 233 | ||
Diluted weighted average shares | 223 | 235 | ||
See end of press release for footnote explanations. | ||||
Table 2 – Results of Operations by Segment | ||||||
Three months ended | ||||||
March 31, | Better / | |||||
In millions | 2020 | 2019 | (Worse) | |||
Segment Revenues: | ||||||
Polyurethanes | $ 888 | $ 924 | (4%) | |||
Performance Products | 292 | 300 | (3%) | |||
Advanced Materials | 241 | 272 | (11%) | |||
Textile Effects | 180 | 189 | (5%) | |||
Corporate and Eliminations | (8) | (16) | n/m | |||
Total | $ 1,593 | $ 1,669 | (5%) | |||
Segment Adjusted EBITDA(1): | ||||||
Polyurethanes | $ 84 | $ 124 | (32%) | |||
Performance Products | 58 | 45 | 29% | |||
Advanced Materials | 48 | 53 | (9%) | |||
Textile Effects | 20 | 22 | (9%) | |||
Corporate, LIFO and other | (45) | (40) | (13%) | |||
Total | $ 165 | $ 204 | (19%) | |||
n/m = not meaningful | ||||||
See end of press release for footnote explanations. | ||||||
Table 3 – Factors Impacting Sales Revenue | ||||||||||
Three months ended | ||||||||||
March 31, 2020 vs. 2019 | ||||||||||
Average Selling Price(a) | ||||||||||
Local | Exchange | Sales Mix | Sales | |||||||
Currency | Rate | & Other | Volume(b) | Total | ||||||
Polyurethanes | (6%) | (1%) | 4% | (1%) | (4%) | |||||
Performance Products | (3%) | (1%) | 4% | (3%) | (3%) | |||||
Advanced Materials | 1% | (2%) | 1% | (11%) | (11%) | |||||
Textile Effects | (3%) | (1%) | (2%) | 1% | (5%) | |||||
(a) Excludes sales from tolling arrangements, by-products and raw materials. | ||||||||||
(b) Excludes sales from by-products and raw materials. | ||||||||||
Table 4 – Reconciliation of U.S. GAAP to Non-GAAP Measures | ||||||||||||||||
Income Tax | Diluted Income | |||||||||||||||
EBITDA | Expense (Benefit) | Net Income | Per Share | |||||||||||||
Three months ended | Three months ended | Three months ended | Three months ended | |||||||||||||
March 31, | March 31, | March 31, | March 31, | |||||||||||||
In millions, except per share amounts | 2020 | 2019 | 2020 | 2019 | 2020 | 2019 | 2020 | 2019 | ||||||||
Net income | $ 708 | $ 131 | $ 708 | $ 131 | $ 3.17 | $ 0.56 | ||||||||||
Net income attributable to noncontrolling interests | (3) | (12) | (3) | (12) | (0.01) | (0.05) | ||||||||||
Net income attributable to Huntsman Corporation | 705 | 119 | 705 | 119 | 3.16 | 0.51 | ||||||||||
Interest expense, net from continuing operations | 18 | 30 | ||||||||||||||
Income tax expense from continuing operations | 7 | 45 | $ (7) | $ (45) | ||||||||||||
Income tax expense from discontinued operations(3) | 238 | 5 | ||||||||||||||
Depreciation and amortization from continuing operations | 67 | 67 | ||||||||||||||
Depreciation and amortization from discontinued operations(3) | - | 23 | ||||||||||||||
Business acquisition and integration expenses | ||||||||||||||||
and purchase accounting inventory adjustments | 13 | 1 | (3) | - | 10 | 1 | 0.04 | 0.00 | ||||||||
EBITDA / Income from discontinued operations, net of tax(3) | (1,015) | (51) | N/A | N/A | (777) | (23) | (3.48) | (0.10) | ||||||||
Impact of Switzerland income tax rate change | - | - | - | 32 | - | 32 | - | 0.14 | ||||||||
Gain on sale of businesses/assets | (2) | - | - | - | (2) | - | (0.01) | - | ||||||||
Fair value adjustments to Venator Investment(a) | 110 | (76) | - | - | 110 | (76) | 0.49 | (0.32) | ||||||||
Loss on early extinguishment of debt | - | 23 | - | (5) | - | 18 | - | 0.08 | ||||||||
Certain legal settlements and related expenses | 2 | - | - | - | 2 | - | 0.01 | - | ||||||||
Certain non-recurring information technology project implementation costs | 1 | - | - | - | 1 | - | 0.00 | - | ||||||||
Amortization of pension and postretirement actuarial losses | 18 | 17 | (4) | (4) | 14 | 13 | 0.06 | 0.06 | ||||||||
Restructuring, impairment and plant closing and transition costs | 3 | 1 | (1) | - | 2 | 1 | 0.01 | 0.00 | ||||||||
Adjusted(1) | $ 165 | $ 204 | $ (15) | $ (22) | $ 65 | $ 85 | $ 0.29 | $ 0.36 | ||||||||
Adjusted income tax expense(1) | $ 15 | $ 22 | ||||||||||||||
Net income attributable to noncontrolling interests, net of tax | 3 | 12 | ||||||||||||||
Adjusted pre-tax income(1) | $ 83 | $ 119 | ||||||||||||||
Adjusted effective tax rate(4) | 18% | 18% | ||||||||||||||
Effective tax rate | (11%) | 29% | ||||||||||||||
(a) Represents the changes in market value in Huntsman's remaining interesting in Venator. | |||||||||||||||||
n/m = not meaningful; n/a = not applicable | |||||||||||||||||
See end of press release for footnote explanations. | |||||||||||||||||
Table 5 – Selected Balance Sheet Items | ||||
March 31, | December 31, | |||
In millions | 2020 | 2019 | ||
Cash | $ 1,594 | $ 525 | ||
Accounts and notes receivable, net | 1,027 | 953 | ||
Inventories | 1,008 | 914 | ||
Other current assets | 145 | 155 | ||
Current assets held for sale | - | 1,208 | ||
Property, plant and equipment, net | 2,357 | 2,383 | ||
Other noncurrent assets | 2,327 | 2,182 | ||
Total assets | $ 8,458 | $ 8,320 | ||
Accounts payable | $ 856 | $ 822 | ||
Other current liabilities | 784 | 462 | ||
Current portion of debt | 134 | 212 | ||
Current liabilities held for sale | - | 512 | ||
Long-term debt | 2,049 | 2,177 | ||
Other noncurrent liabilities | 1,252 | 1,311 | ||
Huntsman Corporation stockholders' equity | 3,243 | 2,687 | ||
Noncontrolling interests in subsidiaries | 140 | 137 | ||
Total liabilities and equity | $ 8,458 | $ 8,320 | ||
Table 6 – Outstanding Debt | ||||
March 31, | December 31, | |||
In millions | 2020 | 2019 | ||
Debt: | ||||
Revolving credit facility | $ - | $ 40 | ||
Accounts receivable programs | 55 | 167 | ||
Term loan | 101 | 103 | ||
Senior notes | 1,950 | 1,963 | ||
Variable interest entities | 58 | 65 | ||
Other debt | 19 | 51 | ||
Total debt - excluding affiliates | 2,183 | 2,389 | ||
Total cash | 1,594 | 525 | ||
Net debt - excluding affiliates(5) | $ 589 | $ 1,864 | ||
See end of press release for footnote explanations. | ||||
Table 7 – Summarized Statement of Cash Flows | ||||
Three months ended | ||||
March 31, | ||||
In millions | 2020 | 2019 | ||
Total cash at beginning of period | $ 525 | $ 340 | ||
Net cash used in operating activities from continuing operations | (40) | (40) | ||
Net cash (used in) provided by operating activities from discontinued operations(3) | (35) | 9 | ||
Net cash provided by (used in) investing activities from continuing operations | 1,511 | (45) | ||
Net cash used in investing activities from discontinued operations(3) | - | (9) | ||
Net cash (used in) provided by financing activities | (354) | 183 | ||
Effect of exchange rate changes on cash | (13) | 6 | ||
Total cash at end of period | $ 1,594 | $ 444 | ||
Free cash flow from continuing operations(2): | ||||
Net cash used in operating activities | $ (40) | $ (40) | ||
Capital expenditures | (61) | (61) | ||
Free cash flow from continuing operations | $ (101) | $ (101) | ||
Supplemental cash flow information: | ||||
Cash paid for interest | $ (5) | $ (26) | ||
Cash paid for income taxes | (36) | (14) | ||
Cash paid for restructuring | (5) | (9) | ||
Cash paid for pensions | (20) | (21) | ||
Depreciation and amortization | 67 | 67 | ||
Change in primary working capital: | ||||
Accounts and notes receivable | $ (34) | $ (15) | ||
Inventories | (92) | (82) | ||
Accounts payable | 61 | (10) | ||
Total change in primary working capital | $ (65) | $ (107) | ||
Footnotes | |
(1) | We use adjusted EBITDA to measure the operating performance of our business and for planning and evaluating the performance of our business segments. We provide adjusted net income because we feel it provides meaningful insight for the investment community into the performance of our business. We believe that net income (loss) is the performance measure calculated and presented in accordance with generally accepted accounting principles in the U.S. ("GAAP") that is most directly comparable to adjusted EBITDA and adjusted net income (loss). Additional information with respect to our use of each of these financial measures follows: |
Adjusted EBITDA, adjusted net income (loss) and adjusted diluted income (loss) per share, as used herein, are not necessarily comparable to other similarly titled measures of other companies. | |
Adjusted EBITDA is computed by eliminating the following from net income (loss): (a) net income attributable to noncontrolling interests, net of tax; (b) interest; (c) income taxes; (d) depreciation and amortization (e) amortization of pension and postretirement actuarial losses (gains); (f) restructuring, impairment and plant closing costs (credits); and further adjusted for certain other items set forth in reconciliation of adjusted EBITDA to net income (loss) in Table 4 above. | |
Adjusted net income (loss) and adjusted diluted income (loss) per share are computed by eliminating the after tax impact of the following items from net income (loss): (a) net income attributable to noncontrolling interest; (b) amortization of pension and postretirement actuarial losses (gains); (c) restructuring, impairment and plant closing costs (credits); and further adjusted for certain other items set forth in reconciliation of adjusted EBITDA to net income (loss) in Table 4 above. The income tax impacts, if any, of each adjusting item represent a ratable allocation of the total difference between the unadjusted tax expense and the total adjusted tax expense, computed without consideration of any adjusting items using a with and without approach. | |
We do not provide reconciliations for adjusted EBITDA, adjusted net income (loss) or adjusted diluted income (loss) per share on a forward-looking basis because we are unable to provide a meaningful or accurate calculation or estimation of reconciling items and the information is not available without unreasonable effort. This is due to the inherent difficulty of forecasting the timing and amount of certain items, such as, but not limited to, (a) business acquisition and integration expenses and purchase accounting adjustments, (b) merger costs, and (c) certain legal and other settlements and related costs. Each of such adjustments has not yet occurred, are out of our control and/or cannot be reasonably predicted. For the same reasons, we are unable to address the probable significance of the unavailable information. | |
(2) | Management internally uses a free cash flow measure: (a) to evaluate our liquidity, (b) evaluate strategic investments, (c) plan stock buyback and dividend levels and (d) evaluate our ability to incur and service debt. We have historically defined free cash flow as cash flows provided by operating activities and used in investing activities, excluding acquisition/disposition activities and including non-recurring separation costs. Starting with the quarter ended March 31, 2020, we updated our definition of free cash flow to a presentation more consistent with today's market standard of net cash provided by operating activities less capital expenditures. Using our updated definition, our free cash flow for the years ended December 31, 2019, 2018, and 2017 were $382 million, $453 million, and $438 million, respectively. Free cash flow is not a defined term under U.S. GAAP, and it should not be inferred that the entire free cash flow amount is available for discretionary expenditures. |
(3) | During the third quarter 2019, we entered into an agreement to sell our Chemical Intermediates and Surfactants businesses. Results from these businesses, including the associated gain on sale, are treated as discontinued operations until the completion of the sale on January 3, 2020. |
(4) | We believe adjusted effective tax rate provides improved comparability between periods through the exclusion of certain items that management believes are not indicative of the businesses' operational profitability and that may obscure underlying business results and trends. In our view, effective tax rate is the performance measure calculated and presented in accordance with U.S. GAAP that is most directly comparable to adjusted effective tax rate. |
The reconciliation of historical adjusted effective tax rate and effective tax rate is set forth in Table 4 above. We do not provide reconciliations for adjusted effective tax rate on a forward-looking basis because we are unable to provide a meaningful or accurate calculation or estimation of reconciling items and the information is not available without unreasonable effort. This is due to the inherent difficulty of forecasting the timing and amount of certain items, such as, but not limited to, (a) business acquisition and integration expenses, (b) merger costs, and (c) certain legal and other settlements and related costs. Each of such adjustments has not yet occurred, are out of our control and/or cannot be reasonably predicted. For the same reasons, we are unable to address the probable significance of the unavailable information. | |
(5) | Net debt is a measure we use to monitor how much debt we have after taking into account our total cash. We use it as an indicator of our overall financial position, and calculate it by taking our total debt, including the current portion, and subtracting total cash. |
About Huntsman:
Huntsman Corporation is a publicly traded global manufacturer and marketer of differentiated and specialty chemicals with 2019 revenues of approximately $7 billion. Our chemical products number in the thousands and are sold worldwide to manufacturers serving a broad and diverse range of consumer and industrial end markets. We operate more than 70 manufacturing, R&D and operations facilities in approximately 30 countries and employ approximately 9,000 associates within our four distinct business divisions. For more information about Huntsman, please visit the company's website at www.huntsman.comhttps://c212.net/c/link/?t=0&l=en&o=2729073-1&h=708906847&u=http%3A%2F%2Fwww.huntsman.com%2F&a=www.huntsman.com.
Social Media:
Twitter: www.twitter.com/Huntsman_Corp
Facebook: www.facebook.com/huntsmancorp
LinkedIn: www.linkedin.com/company/huntsman
Forward-Looking Statements:
Certain information in this release constitutes forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. These statements are based on management's current beliefs and expectations. The forward-looking statements in this release are subject to uncertainty and changes in circumstances and involve risks and uncertainties that may affect the company's operations, markets, products, services, prices and other factors as discussed under the caption "Risk Factors" in the Huntsman companies' filings with the U.S. Securities and Exchange Commission. Significant risks and uncertainties may relate to, but are not limited to, volatile global economic conditions, cyclical and volatile product markets, disruptions in production at manufacturing facilities, reorganization or restructuring of Huntsman's operations, including any delay of, or other negative developments affecting the ability to implement cost reductions, timing of proposed transactions, and manufacturing optimization improvements in Huntsman businesses and realize anticipated cost savings, and other financial, economic, competitive, environmental, political, legal, regulatory and technological factors. The company assumes no obligation to provide revisions to any forward-looking statements should circumstances change, except as otherwise required by applicable laws.
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SOURCE Huntsman Corporation
Article Date
5/1/2020Huntsman Producing Hand Sanitizer in Australia to Help Combat COVID-19
Source: PR Newswire
THE WOODLANDS, Texas, April 15, 2020 /PRNewswire/ -- Huntsman Corporation's (NYSE:HUN) manufacturing site near Melbourne, Australia, has become the company's third location around the world to produce hand sanitizer for donation to health care and other critical facilities as part of the COVID-19 response. The Australia site's first batch of hand sanitizer, a pallet of 27 15-liter containers, was provided free of charge to the Austin Hospital in Melbourne on April 7.
The team at the site collaborated with their colleagues in McIntosh, Alabama, and Monthey, Switzerland – where Huntsman is also producing hand sanitizer for donation – to learn best practices for cleaning and repurposing equipment to produce hand sanitizer.
Huntsman also partnered with one of its customers, Fortis Adhesives, Coatings & Specialties, to obtain the base alcohol needed for the first batch of hand sanitizer and to package and label the product in various sizes for end use.
The Melbourne site plans to produce 22,000 liters per week of the hand sanitizer, which is validated for use in hospitals as well as the domestic market through the Australia government's Therapeutic Goods Administration exemption. In addition to initially providing the hand sanitizer free of charge to health care facilities, some of the product will be supplied to retail stores to satisfy high consumer demand. Huntsman will sell to retailers at prices which enable it to cover its costs only and won't make a profit from the sales.
"Our recent experience in Switzerland and Alabama allowed us to move quickly in Australia to help fill an urgent community need," said Peter Huntsman, Chairman, President and CEO of Huntsman Corporation. "We are grateful that through our global presence we can expand our contribution to the fight against this pandemic."
About Huntsman:
Huntsman Corporation is a publicly traded global manufacturer and marketer of differentiated and specialty chemicals with 2019 revenues of approximately $7 billion. Our chemical products number in the thousands and are sold worldwide to manufacturers serving a broad and diverse range of consumer and industrial end markets. We operate more than 70 manufacturing, R&D and operations facilities in approximately 30 countries and employ approximately 9,000 associates within our four distinct business divisions. For more information about Huntsman, please visit the company's website at www.huntsman.com.
Social Media:
Twitter: www.twitter.com/Huntsman_Corp
Facebook: www.facebook.com/huntsmancorp
LinkedIn: www.linkedin.com/company/huntsman
Forward-Looking Statements:
Certain information in this release constitutes forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. These statements are based on management's current beliefs and expectations. The forward-looking statements in this release are subject to uncertainty and changes in circumstances and involve risks and uncertainties that may affect the company's operations, markets, products, services, prices and other factors as discussed under the caption "Risk Factors" in the Huntsman companies' filings with the U.S. Securities and Exchange Commission. Significant risks and uncertainties may relate to, but are not limited to, volatile global economic conditions, cyclical and volatile product markets, disruptions in production at manufacturing facilities, reorganization or restructuring of Huntsman's operations, including any delay of, or other negative developments affecting the ability to implement cost reductions, timing of proposed transactions, and manufacturing optimization improvements in Huntsman businesses and realize anticipated cost savings, and other financial, economic, competitive, environmental, political, legal, regulatory and technological factors. The company assumes no obligation to provide revisions to any forward-looking statements should circumstances change, except as otherwise required by applicable laws.
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SOURCE Huntsman Corporation
Article Date
4/15/20204/13/2020 - Huntsman Announces Plans for 2020 Virtual Meeting of Stockholders; Meeting Date Changed to May 1, 2020
Huntsman Announces Plans for 2020 Virtual Meeting of Stockholders; Meeting Date Changed to May 1, 2020
Source: PR Newswire
THE WOODLANDS, Texas, April 13, 2020 /PRNewswire/ -- Huntsman Corporation (NYSE: HUN) today announced, in light of public health concerns related to the coronavirus (COVID-19) pandemic, that the date and format of the 2020 Annual Meeting of Stockholders (the "Annual Meeting") of Huntsman Corporation (the "Company") have been changed. The Annual Meeting will be held in virtual meeting format only at 2:00 p.m. Central Time on May 1, 2020. Stockholders of record at the close of business on March 5, 2020, are entitled to attend the Annual Meeting. Stockholders will not be able to attend the meeting in-person.
To be admitted electronically to the Annual Meeting at www.virtualshareholdermeeting.com/HUN2020, stockholders must enter the 16-digit control number found on the proxy card, voting instruction form, notice of internet availability of proxy materials or email previously received. Stockholders may vote virtually during the Annual Meeting by following the instructions available on the meeting website during the meeting.
Whether or not you plan to attend the Annual Meeting virtually, the Company urges all stockholders to vote and submit proxies in advance of the meeting by one of the methods described in the Company's proxy materials previously distributed in connection with the Annual Meeting. Please note that the proxy card and voting instruction form previously distributed with the Company's proxy materials will not be updated and may continue to be used to vote stockholders' shares in connection with the Annual Meeting.
About Huntsman:
Huntsman Corporation is a publicly traded global manufacturer and marketer of differentiated and specialty chemicals with 2019 revenues of approximately $7 billion. Our chemical products number in the thousands and are sold worldwide to manufacturers serving a broad and diverse range of consumer and industrial end markets. We operate more than 70 manufacturing, R&D and operations facilities in approximately 30 countries and employ approximately 9,000 associates within our four distinct business divisions. For more information about Huntsman, please visit the company's website at www.huntsman.com
Social Media:
Twitter: www.twitter.com/Huntsman_Corp
Facebook: www.facebook.com/huntsmancorp
LinkedIn: www.linkedin.com/company/huntsman
Forward-Looking Statements:
Certain information in this release constitutes forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. These statements are based on management's current beliefs and expectations. The forward-looking statements in this release are subject to uncertainty and changes in circumstances and involve risks and uncertainties that may affect the company's operations, markets, products, services, prices and other factors as discussed under the caption "Risk Factors" in the Huntsman companies' filings with the U.S. Securities and Exchange Commission. Significant risks and uncertainties may relate to, but are not limited to, volatile global economic conditions, cyclical and volatile product markets, disruptions in production at manufacturing facilities, reorganization or restructuring of Huntsman's operations, including any delay of, or other negative developments affecting the ability to implement cost reductions, timing of proposed transactions, and manufacturing optimization improvements in Huntsman businesses and realize anticipated cost savings, and other financial, economic, competitive, environmental, political, legal, regulatory and technological factors. The company assumes no obligation to provide revisions to any forward-looking statements should circumstances change, except as otherwise required by applicable laws.
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SOURCE Huntsman Corporation
Article Date
4/13/2020Huntsman to Discuss First Quarter 2020 Results on May 1, 2020
Source: PR Newswire
THE WOODLANDS, Texas, April 8, 2020 /PRNewswire/ -- Huntsman Corporation (NYSE: HUN) will hold a conference call on Friday, May 1, 2020, at 10:00 a.m. ET to discuss its first quarter 2020 financial results, which will be released at approximately 6:00 a.m. ET that day.
Webcast link:
https://78449.themediaframe.com/dataconf/productusers/hun/mediaframe/37217/indexl.html
Participant dial-in numbers: | |
Domestic callers: | (877) 402-8037 |
International callers: | (201) 378-4913 |
The conference call will be accompanied by presentation slides that will be accessible via the webcast link and Huntsman's investor relations website, ir.huntsman.com. Upon conclusion of the call, the webcast replay will be accessible via Huntsman's website.
About Huntsman:
Huntsman Corporation is a publicly traded global manufacturer and marketer of differentiated and specialty chemicals with 2019 revenues of approximately $7 billion. Our chemical products number in the thousands and are sold worldwide to manufacturers serving a broad and diverse range of consumer and industrial end markets. We operate more than 70 manufacturing, R&D and operations facilities in approximately 30 countries and employ approximately 9,000 associates within our four distinct business divisions. For more information about Huntsman, please visit the company's website at www.huntsman.com.
Social Media:
Twitter: www.twitter.com/Huntsman_Corp
Facebook: www.facebook.com/huntsmancorp
LinkedIn: www.linkedin.com/company/huntsman
Forward-Looking Statements:
Certain information in this release constitutes forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. These statements are based on management's current beliefs and expectations. The forward-looking statements in this release are subject to uncertainty and changes in circumstances and involve risks and uncertainties that may affect the company's operations, markets, products, services, prices and other factors as discussed under the caption "Risk Factors" in the Huntsman companies' filings with the U.S. Securities and Exchange Commission. Significant risks and uncertainties may relate to, but are not limited to, volatile global economic conditions, cyclical and volatile product markets, disruptions in production at manufacturing facilities, reorganization or restructuring of Huntsman's operations, including any delay of, or other negative developments affecting the ability to implement cost reductions, timing of proposed transactions, and manufacturing optimization improvements in Huntsman businesses and realize anticipated cost savings, and other financial, economic, competitive, environmental, political, legal, regulatory and technological factors. The company assumes no obligation to provide revisions to any forward-looking statements should circumstances change, except as otherwise required by applicable laws.
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SOURCE Huntsman Corporation
Article Date
4/8/2020Huntsman Producing Hand Sanitizer in the U.S. to Aid in COVID-19 Response
Source: PR Newswire
THE WOODLANDS, Texas, April 6, 2020 /PRNewswire/ -- Huntsman Corporation (NYSE: HUN) has begun producing hand sanitizer at its manufacturing site in McIntosh, Alabama, for distribution to health care facilities in the United States. The move follows the company's announcement on March 23 that it would begin making hydro alcoholic solution to produce hand sanitizer in Switzerland.
Huntsman will donate free of charge the first 5-ton shipment of hand sanitizer to Huntsman Cancer Institute (HCI) and the associated medical facilities at the University of Utah to help protect health care workers treating COVID-19 patients. The University of Utah is the home of HCI, a National Cancer Institute-designated Comprehensive Cancer Center that was established with a major philanthropic gift by the late Jon M. Huntsman, founder of Huntsman Corporation.
At its Alabama plant, Huntsman typically produces high-performance specialty chemicals used in aerospace and other industries. After the U.S. Food and Drug Administration (FDA) recently published temporary guidelines permitting Huntsman to produce hand sanitizer at the site, the company quickly mobilized to develop a manufacturing process to produce the sanitizer. Huntsman does not produce isopropyl alcohol (IPA), a key ingredient in hand sanitizers, so it turned to LyondellBasell, another major player in the global chemical industry, for supply of that raw material. LyondellBasell agreed to donate the IPA needed to produce the first shipment.
"We are so grateful to Huntsman Corporation and LyondellBasell for making this donation, which will be instrumental in helping to protect the health of our staff at the Huntsman Cancer Institute and at University of Utah Health hospitals and clinics across our state," said University of Utah President Ruth V. Watkins. "This is an incredible example of how leading companies are stepping up to address vital needs of health providers who are on the front lines of battling the coronavirus pandemic. My deepest appreciation to Huntsman Corporation for its innovation and swift response in meeting this need."
Peter Huntsman, Chairman, President and CEO of Huntsman Corporation, said, "We thank the FDA for moving swiftly to issue the temporary guidelines that have enabled us to fast-track our production and distribution of much-needed hand sanitizer in the U.S."
LyondellBasell CEO Bob Patel added, "This is a critical time where the public and private sectors can work hand-in-hand to help safeguard our health care workers. We are proud to have played a role in the fight against this pandemic."
About Huntsman:
Huntsman Corporation is a publicly traded global manufacturer and marketer of differentiated and specialty chemicals with 2019 revenues of approximately $7 billion. Our chemical products number in the thousands and are sold worldwide to manufacturers serving a broad and diverse range of consumer and industrial end markets. We operate more than 70 manufacturing, R&D and operations facilities in approximately 30 countries and employ approximately 9,000 associates within our four distinct business divisions. For more information about Huntsman, please visit the company's website at www.huntsman.com.
Social Media:
Twitter: www.twitter.com/Huntsman_Corp
Facebook: www.facebook.com/huntsmancorp
LinkedIn: www.linkedin.com/company/huntsman
Forward-Looking Statements:
Certain information in this release constitutes forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. These statements are based on management's current beliefs and expectations. The forward-looking statements in this release are subject to uncertainty and changes in circumstances and involve risks and uncertainties that may affect the company's operations, markets, products, services, prices and other factors as discussed under the caption "Risk Factors" in the Huntsman companies' filings with the U.S. Securities and Exchange Commission. Significant risks and uncertainties may relate to, but are not limited to, volatile global economic conditions, cyclical and volatile product markets, disruptions in production at manufacturing facilities, reorganization or restructuring of Huntsman's operations, including any delay of, or other negative developments affecting the ability to implement cost reductions, timing of proposed transactions, and manufacturing optimization improvements in Huntsman businesses and realize anticipated cost savings, and other financial, economic, competitive, environmental, political, legal, regulatory and technological factors. The company assumes no obligation to provide revisions to any forward-looking statements should circumstances change, except as otherwise required by applicable laws.
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SOURCE Huntsman Corporation
Article Date
4/6/20203/16/2020 - Huntsman Announces the Acquisition of CVC Thermoset Specialties, Expanding its Specialty Chemicals Portfolio
Huntsman Announces the Acquisition of CVC Thermoset Specialties, Expanding its Specialty Chemicals Portfolio
Source: PR Newswire
THE WOODLANDS, Texas, March 16, 2020 /PRNewswire/ -- Huntsman Corporation (NYSE: HUN) today announces its agreement to acquire CVC Thermoset Specialties, a North American specialty chemical manufacturer serving the industrial composites, adhesives and coatings markets. CVC Thermoset Specialties is part of Emerald Performance Materials LLC which is majority owned by affiliates of American Securities LLC.
CVC Thermoset Specialties has annual revenues of approximately $115 million with two manufacturing facilities located in Akron, Ohio, and Maple Shade, New Jersey. Under terms of the agreement, Huntsman will pay $300 million, subject to customary closing adjustments, in an all-cash transaction funded from available liquidity. Based on full year 2019, the purchase price represents an adjusted EBITDA multiple of approximately 10 times, or between approximately 7 to 8 times pro forma for synergies, the lower multiple end being dependent upon normal growth market conditions. The transaction is expected to close around midyear of 2020.
Commenting on the acquisition, Scott Wright, President of Huntsman's Advanced Materials division, said: "The acquisition of CVC Thermoset Specialties brings valuable complementary technology breadth to our Advanced Materials portfolio and its unique products will make systems using our class-leading epoxy-based materials even tougher, stronger, and more durable. This business manufactures highly specialized toughening, curing and other additives used in a wide range of composite, adhesive and coatings applications across aerospace, automotive and industrial markets. In addition to strengthening our position in North America, Huntsman will use our existing asset footprint and routes to market in Europe and Asia to rapidly grow and globalize CVC Thermoset Specialties' exciting and complementary product range. This acquisition will further improve our ability to create differentiation in our customers' applications, in particular through our strong formulations business."
Peter Huntsman, Chairman, President and CEO, further commented: "This bolt-on fits all the criteria we look for in acquisitions for our Advanced Materials division, including new technology, synergies, and globalization opportunities. The business currently achieves EBITDA margins in excess of 25% and we expect to achieve significant synergies within two years.
"In these uncertain times, our financial strength will allow us to keep looking for these types of acquisitions, while at the same time maintain a conservative balance sheet and opportunistically repurchase shares. We remain committed to our balanced approach to capital allocation. Year-to-date we have taken advantage of our depressed stock price and have repurchased approximately $85 million in stock. Lastly, while forward visibility remains low, the first quarter is on track to deliver on the outlook that we communicated on our February 13, 2020 earnings call."
About Huntsman:
Huntsman Corporation is a publicly traded global manufacturer and marketer of differentiated and specialty chemicals with 2019 revenues of approximately $7 billion. Our chemical products number in the thousands and are sold worldwide to manufacturers serving a broad and diverse range of consumer and industrial end markets. We operate more than 70 manufacturing, R&D and operations facilities in approximately 30 countries and employ approximately 9,000 associates within our four distinct business divisions. For more information about Huntsman, please visit the company's website at www.huntsman.com.
Social Media:
Twitter: www.twitter.com/Huntsman_Corp
Facebook: www.facebook.com/huntsmancorp
LinkedIn: www.linkedin.com/company/huntsman
Forward-Looking Statements:
Certain information in this release constitutes forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. These statements are based on management's current beliefs and expectations. The forward-looking statements in this release are subject to uncertainty and changes in circumstances and involve risks and uncertainties that may affect the company's operations, markets, products, services, prices and other factors as discussed under the caption "Risk Factors" in the Huntsman companies' filings with the U.S. Securities and Exchange Commission. Significant risks and uncertainties may relate to, but are not limited to, volatile global economic conditions, cyclical and volatile product markets, disruptions in production at manufacturing facilities, reorganization or restructuring of Huntsman's operations, including any delay of, or other negative developments affecting the ability to implement cost reductions, timing of proposed transactions, and manufacturing optimization improvements in Huntsman businesses and realize anticipated cost savings, and other financial, economic, competitive, environmental, political, legal, regulatory and technological factors. The company assumes no obligation to provide revisions to any forward-looking statements should circumstances change, except as otherwise required by applicable laws.
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SOURCE Huntsman Corporation
Article Date
3/16/2020Huntsman Announces 2020 Annual Meeting of Stockholders
Source: PR Newswire
THE WOODLANDS, Texas, March 2, 2020 /PRNewswire/ -- Huntsman Corporation (NYSE: HUN) today announced that it will hold its 2020 annual meeting of stockholders on Wednesday, April 29, 2020 at 8:30 a.m., local time, at The Woodlands® Resort & Conference Center, 2301 North Millbend Drive, The Woodlands, Texas 77380.
About Huntsman:
Huntsman Corporation is a publicly traded global manufacturer and marketer of differentiated and specialty chemicals with 2019 revenues of approximately $7 billion. Our chemical products number in the thousands and are sold worldwide to manufacturers serving a broad and diverse range of consumer and industrial end markets. We operate more than 70 manufacturing, R&D and operations facilities in approximately 30 countries and employ approximately 9,000 associates within our four distinct business divisions. For more information about Huntsman, please visit the company's website at www.huntsman.com.
Social Media:
Twitter: www.twitter.com/Huntsman_Corp
Facebook: www.facebook.com/huntsmancorp
LinkedIn: www.linkedin.com/company/huntsman
Forward-Looking Statements:
Certain information in this release constitutes forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. These statements are based on management's current beliefs and expectations. The forward-looking statements in this release are subject to uncertainty and changes in circumstances and involve risks and uncertainties that may affect the company's operations, markets, products, services, prices and other factors as discussed under the caption "Risk Factors" in the Huntsman companies' filings with the U.S. Securities and Exchange Commission. Significant risks and uncertainties may relate to, but are not limited to, volatile global economic conditions, cyclical and volatile product markets, disruptions in production at manufacturing facilities, reorganization or restructuring of Huntsman's operations, including any delay of, or other negative developments affecting the ability to implement cost reductions and manufacturing optimization improvements in Huntsman businesses and realize anticipated cost savings, and other financial, economic, competitive, environmental, political, legal, regulatory and technological factors. The company assumes no obligation to provide revisions to any forward-looking statements should circumstances change, except as otherwise required by applicable laws.
Additional Information and Where to Find It
The Company intends to file a proxy statement and accompanying white proxy card with the U.S. Securities and Exchange Commission (the "SEC") with respect to the Company's 2020 Annual Meeting of Stockholders. The Company's stockholders are strongly encouraged to read such proxy statement, the accompanying proxy card and other documents filed with the SEC carefully in their entirety when they become available because they will contain important information. The Company's stockholders will be able to obtain any proxy statement, any amendments or supplements to the proxy statement and other documents filed by the Company with the SEC free of charge at the SEC's website at www.sec.gov. Copies will also be available free of charge at the Company's website at www.huntsman.com.
Certain Information Regarding Participants
The Company, its directors and certain of its executive officers may be deemed to be participants in the solicitation of proxies from the Company's stockholders in connection with the matters to be considered at the Company's 2020 Annual Meeting of Stockholders. Information about the Company's directors and executive officers is available in the Company's (a) annual report on Form 10-K for the year ended December 31, 2019 filed with the SEC on February 13, 2020 and (b) proxy statement filed with the SEC on March 22, 2019 with respect to the Company's 2019 Annual Meeting of Stockholders. To the extent holdings of the Company's securities by such directors or executive officers have changed since the amounts printed in the proxy statement, such changes have been or will be reflected on Statements of Changes in Beneficial Ownership on Form 4 filed with the SEC. Additional information regarding the identity of potential participants, and their direct or indirect interests, by security holdings or otherwise, will be set forth in the proxy statement and other materials to be filed with the SEC in connection with the Company's 2020 Annual Meeting of Stockholders.
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SOURCE Huntsman Corporation
Article Date
3/2/2020Huntsman Announces First Quarter 2020 Common Dividend
Source: PR Newswire
THE WOODLANDS, Texas, Feb. 24, 2020 /PRNewswire/ -- Huntsman Corporation (NYSE: HUN) today announced that its board of directors has declared a $0.1625 per share cash dividend on its common stock. The dividend is payable on March 31, 2020 to stockholders of record as of March 13, 2020.
About Huntsman:
Huntsman Corporation is a publicly traded global manufacturer and marketer of differentiated and specialty chemicals with 2019 revenues of approximately $7 billion. Our chemical products number in the thousands and are sold worldwide to manufacturers serving a broad and diverse range of consumer and industrial end markets. We operate more than 70 manufacturing, R&D and operations facilities in approximately 30 countries and employ approximately 9,000 associates within our four distinct business divisions. For more information about Huntsman, please visit the company's website at www.huntsman.com.
Social Media:
Twitter: www.twitter.com/Huntsman_Corp
Facebook: www.facebook.com/huntsmancorp
LinkedIn: www.linkedin.com/company/huntsman
Forward-Looking Statements:
Certain information in this release constitutes forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. These statements are based on management's current beliefs and expectations. The forward-looking statements in this release are subject to uncertainty and changes in circumstances and involve risks and uncertainties that may affect the company's operations, markets, products, services, prices and other factors as discussed under the caption "Risk Factors" in the Huntsman companies' filings with the U.S. Securities and Exchange Commission. Significant risks and uncertainties may relate to, but are not limited to, volatile global economic conditions, cyclical and volatile product markets, disruptions in production at manufacturing facilities, reorganization or restructuring of Huntsman's operations, including any delay of, or other negative developments affecting the ability to implement cost reductions, timing of proposed transactions, and manufacturing optimization improvements in Huntsman businesses and realize anticipated cost savings, and other financial, economic, competitive, environmental, political, legal, regulatory and technological factors. The company assumes no obligation to provide revisions to any forward-looking statements should circumstances change, except as otherwise required by applicable laws.
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SOURCE Huntsman Corporation
Article Date
2/24/2020Huntsman Completes the Acquisition of Icynene-Lapolla, Expanding its Downstream Footprint in Spray Polyurethane Foam Insulation
Source: PR Newswire
THE WOODLANDS, Texas, Feb. 20, 2020 /PRNewswire/ -- Huntsman Corporation (NYSE: HUN) today announced that it has completed the acquisition of Icynene-Lapolla, a leading North American manufacturer and distributor of spray polyurethane foam (SPF) insulation systems for residential and commercial applications. Huntsman acquired the business from an affiliate of FFL Partners, LLC, for $350 million, subject to customary closing adjustments, in an all-cash transaction funded from available liquidity.
The acquisition of Icynene-Lapolla is aligned with Huntsman's strategy of growing its downstream polyurethanes business. The combination of Icynene-Lapolla with Demilec, the SPF business Huntsman acquired in 2018, will create the world's leading supplier of spray foam products used to insulate commercial and residential structures. The acquisition will further strengthen our portfolio of leading energy-saving insulation applications and technologies, providing customers with an unmatched product offering. Further, it will accelerate the globalization of the combined SPF business by leveraging Huntsman's extensive international network of systems houses. The acquisition will generate substantial synergies as a result of Huntsman's ability to pull through significant volumes of polyols and lower margin upstream polymeric MDI into the higher margin and growing specialized SPF systems.
Icynene-Lapolla has annual revenues of approximately $230 million with two manufacturing facilities located in Houston, Texas and Mississauga, Ontario, where it produces a full range of MDI-based SPF formulations and reflective roof coatings, which it markets directly to applicators as well as through distributors.
Tony Hankins, President of Huntsman's Polyurethanes division, commented on the acquisition: "I am excited about the opportunities that lie ahead, now that Icynene-Lapolla is joining our high-growth MDI urethanes insulation business. Together with Demilec, our existing SPF business, we will create a world-leading SPF platform, providing highly innovative, energy-saving solutions for residential and commercial property owners alike."
Peter Huntsman, Chairman, President and CEO added: "SPF is a highly attractive growth business and Icynene-Lapolla is widely recognized as a leading player in the industry. Icynene-Lapolla will strengthen our move downstream and provide further impetus to the globalization of our SPF technology. The purchase price represents an adjusted EBITDA multiple of approximately 10 times, or approximately 7 times adjusted EBITDA, pro forma for synergies. The combined business is now approaching $500 million in revenues and by the end of 2021 with synergies we see the SPF business exceeding $100 million in EBITDA."
About Huntsman:
Huntsman Corporation is a publicly traded global manufacturer and marketer of differentiated and specialty chemicals with 2019 revenues of approximately $7 billion. Our chemical products number in the thousands and are sold worldwide to manufacturers serving a broad and diverse range of consumer and industrial end markets. We operate more than 70 manufacturing, R&D and operations facilities in approximately 30 countries and employ approximately 9,000 associates within our four distinct business divisions. For more information about Huntsman, please visit the company's website at www.huntsman.com.
Social Media:
Twitter: www.twitter.com/Huntsman_Corp
Facebook: www.facebook.com/huntsmancorp
LinkedIn: www.linkedin.com/company/huntsman
Forward-Looking Statements:
Certain information in this release constitutes forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. These statements are based on management's current beliefs and expectations. The forward-looking statements in this release are subject to uncertainty and changes in circumstances and involve risks and uncertainties that may affect the company's operations, markets, products, services, prices and other factors as discussed under the caption "Risk Factors" in the Huntsman companies' filings with the U.S. Securities and Exchange Commission. Significant risks and uncertainties may relate to, but are not limited to, volatile global economic conditions, cyclical and volatile product markets, disruptions in production at manufacturing facilities, reorganization or restructuring of Huntsman's operations, including any delay of, or other negative developments affecting the ability to implement cost reductions, timing of proposed transactions, and manufacturing optimization improvements in Huntsman businesses and realize anticipated cost savings, and other financial, economic, competitive, environmental, political, legal, regulatory and technological factors. The company assumes no obligation to provide revisions to any forward-looking statements should circumstances change, except as otherwise required by applicable laws.
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SOURCE Huntsman Corporation
Article Date
2/20/2020Huntsman Announces Full Year 2019 Earnings; Another Year of Strong Cash Flow Generation
Source: PR Newswire
THE WOODLANDS, Texas, Feb. 13, 2020 /PRNewswire/ --
Full Year 2019 and Fourth Quarter Highlights
Three months ended | Twelve months ended | |||||||
December 31, | December 31, | |||||||
In millions, except per share amounts | 2019 | 2018 | 2019 | 2018 | ||||
Revenues | $ 1,657 | $ 1,821 | $ 6,797 | $ 7,604 | ||||
Net income (loss) | $ 308 | $ (315) | $ 598 | $ 650 | ||||
Adjusted net income(1) | $ 65 | $ 90 | $ 353 | $ 642 | ||||
Diluted income (loss) per share | $ 1.34 | $ (1.43) | $ 2.44 | $ 1.39 | ||||
Adjusted diluted income per share(1) | $ 0.29 | $ 0.38 | $ 1.53 | $ 2.66 | ||||
Adjusted EBITDA(1) | $ 182 | $ 207 | $ 846 | $ 1,161 | ||||
Net cash provided by operating activities from continuing operations | $ 222 | $ 258 | $ 656 | $ 704 | ||||
Free cash flow from continuing operations(2) | $ 131 | $ 154 | $ 389 | $ 454 | ||||
See end of press release for footnote explanations and reconciliations of non-GAAP measures. | ||||||||
Huntsman Corporation (NYSE: HUN) today reported fourth quarter 2019 results with revenues of $1,657 million, net income of $308 million, adjusted net income of $65 million and adjusted EBITDA of $182 million.
Peter R. Huntsman, Chairman, President and CEO, commented:
"2019 was a memorable year for Huntsman with several milestones achieved that significantly strengthened the Company for years to come. The biggest milestone was the $2 billion divestiture of our Chemical Intermediates and Surfactants businesses, which significantly reduces our upstream footprint. The proceeds from this sale have further fortified our investment grade balance sheet and enhances our ability to focus on and grow our core downstream businesses. Additionally, we acquired the remaining 50% investment in our Maleic Anhydride joint venture from Sasol, we opened a new polyurethanes system house in Dubai, and in early December we announced the agreement to acquire Icynene-Lapolla which will double the size of our existing high growth spray foam business. We remained balanced in our capital allocation by repurchasing over $200 million in stock and paying $150 million in dividends to our shareholders. Lastly, in the beginning of 2019 we achieved our long-term goal to earn an investment grade rating.
"Heading into 2020 we remain focused on what we can control, which will include investing both organically and through acquisitions into our downstream and specialty platforms, and being balanced in our approach to capital allocation, including maintaining a competitive dividend and ongoing opportunistic share repurchases. The economic headwinds remain as we enter the year making earnings growth more of a challenge. However, with our strengthened balance sheet and strong downstream platforms for further growth, I see far more opportunities than challenges before us as we pursue multiple opportunities to create further shareholder value."
Segment Analysis for 4Q19 Compared to 4Q18
Polyurethanes
The decrease in revenue in our Polyurethanes segment for the three months ended December 31, 2019 compared to the same period in 2018 was primarily due to lower MDI average selling prices, partially offset by higher sales volumes. MDI average selling prices decreased primarily due to a decline in component MDI selling prices in China and Europe. MDI sales volumes increased primarily due to higher demand across most major markets. The decrease in segment adjusted EBITDA was primarily due to lower MDI margins driven by lower MDI pricing partially offset with higher MDI sales volumes.
Performance Products
Revenues in our Performance Products segment for the three months ended December 31, 2019 compared to the same period in 2018 were lower as a result of lower sales volumes and lower average selling prices. Sales volumes decreased largely due to weakened market conditions. Average selling prices decreased primarily due to weaker market conditions across several of our derivatives businesses and in response to lower raw material costs. The increase in adjusted EBITDA was largely due to lower fixed costs and increased earnings from acquiring the remaining interest in our German maleic joint venture.
Advanced Materials
The decrease in revenues in our Advanced Materials segment for the three months ended December 31, 2019 compared to the same period in 2018 was due to lower sales volumes and lower average selling prices. Sales volumes decreased across most markets primarily due to economic slowdown and customer destocking. Average selling prices decreased primarily due to the impact of a stronger U.S. dollar against major international currencies as local currency selling prices were essentially unchanged. Segment adjusted EBITDA decreased due to lower sales volumes.
Textile Effects
The decrease in revenues in our Textile Effects segment for the three months ended December 31, 2019 compared to the same period in 2018 was primarily due to lower average selling prices and lower sales volume. Average selling prices decreased in line with market pricing and the impact of a stronger U.S. dollar against major international currencies. Sales volumes decreased due to weaker demand across the industry from market uncertainties surrounding the trade war. The decrease in adjusted EBITDA was primarily due to lower average selling prices and lower sales volumes, partially offset by lower fixed costs.
Corporate, LIFO and other
For the three months ended December 31, 2019, adjusted EBITDA from Corporate and other for Huntsman Corporation decreased by $1 million to a loss of $43 million from a loss of $42 million for the same period of 2018.
Liquidity, Capital Resources and Outstanding Debt
During the three months ended December 31, 2019, our free cash flow from continuing operations was $131 million compared to $154 million in the prior year period. As of December 31, 2019, we had $1,684 million of combined cash and unused borrowing capacity.
During the three months ended December 31, 2019, we spent $93 million on capital expenditures compared to $103 million in the same period of 2018. In 2020, we expect to spend approximately $300 million to $325 million on capital expenditures, which includes approximately $80 million for our new MDI splitter at our facility in Geismar, Louisiana.
During the three months ended December 31, 2019, we spent approximately $12 million to repurchase approximately 0.5 million shares. As of the end of the fourth quarter 2019, we have approximately $516 million remaining on our existing $1 billion multiyear share repurchase program.
Income Taxes
In the fourth quarter 2019, our adjusted effective tax rate was 25%. We expect our forward adjusted effective tax rate will be approximately 22% - 24%.
Earnings Conference Call Information
We will hold a conference call to discuss our fourth quarter 2019 financial results on Thursday, February 13, 2020 at 9:00 a.m. ET.
Webcast link: https://78449.themediaframe.com/dataconf/productusers/hun/mediaframe/34153/indexl.html
Participant dial-in numbers: | |
Domestic callers: | (877) 402-8037 |
International callers: | (201) 378-4913 |
The conference call will be accompanied by presentation slides that will be accessible via the webcast link and Huntsman's investor relations website, ir.huntsman.com. Upon conclusion of the call, the webcast replay will be accessible via Huntsman's website.
Upcoming Conferences
During the first quarter 2020 a member of management is expected to present at:
Alembic Global Deer Valley Conference February 27 and 28, 2020
A webcast of the presentation, if applicable, along with accompanying materials will be available at ir.huntsman.com.
Table 1 -- Results of Operations | ||||||||
Three months ended | Twelve months ended | |||||||
December 31, | December 31, | |||||||
In millions, except per share amounts | 2019 | 2018 | 2019 | 2018 | ||||
Revenues | $ 1,657 | $ 1,821 | $ 6,797 | $ 7,604 | ||||
Cost of goods sold | 1,347 | 1,469 | 5,415 | 5,840 | ||||
Gross profit | 310 | 352 | 1,382 | 1,764 | ||||
Operating expenses | 259 | 231 | 954 | 942 | ||||
Restructuring, impairment and plant closing costs (credits) | 1 | (15) | (41) | (7) | ||||
Merger costs | - | - | - | 2 | ||||
Operating income | 50 | 136 | 469 | 827 | ||||
Interest expense | (25) | (29) | (111) | (115) | ||||
Equity in income of investment in unconsolidated affiliates | 13 | 10 | 54 | 55 | ||||
Fair value adjustments to Venator investment | 72 | (62) | (18) | (62) | ||||
Loss on early extinguishment of debt | - | - | (23) | (3) | ||||
Other income, net | 4 | 10 | 20 | 32 | ||||
Income from continuing operations before income taxes | 114 | 65 | 391 | 734 | ||||
Income tax benefit (expense) | 151 | (4) | 38 | (45) | ||||
Income from continuing operations | 265 | 61 | 429 | 689 | ||||
Income (loss) from discontinued operations, net of tax(3) | 43 | (376) | 169 | (39) | ||||
Net income (loss) | 308 | (315) | 598 | 650 | ||||
Net income attributable to noncontrolling interests, net of tax | (5) | (25) | (36) | (313) | ||||
Net income (loss) attributable to Huntsman Corporation | $ 303 | $ (340) | $ 562 | $ 337 | ||||
Adjusted EBITDA(1) | $ 182 | $ 207 | $ 846 | $ 1,161 | ||||
Adjusted net income(1) | $ 65 | $ 90 | $ 353 | $ 642 | ||||
Basic income (loss) per share | $ 1.35 | $ (1.45) | $ 2.46 | $ 1.42 | ||||
Diluted income (loss) per share | $ 1.34 | $ (1.43) | $ 2.44 | $ 1.39 | ||||
Adjusted diluted income per share(1) | $ 0.29 | $ 0.38 | $ 1.53 | $ 2.66 | ||||
Common share information: | ||||||||
Basic weighted average shares | 225 | 235 | 229 | 238 | ||||
Diluted weighted average shares | 227 | 237 | 231 | 242 | ||||
See end of press release for footnote explanations. | ||||||||
Table 2 -- Results of Operations by Segment | ||||||||||||
Three months ended | Twelve months ended | |||||||||||
December 31, | Better / | December 31, | Better / | |||||||||
In millions | 2019 | 2018 | (Worse) | 2019 | 2018 | (Worse) | ||||||
Segment Revenues: | ||||||||||||
Polyurethanes | $ 980 | $ 1,014 | (3%) | $ 3,911 | $ 4,282 | (9%) | ||||||
Performance Products | 278 | 310 | (10%) | 1,158 | 1,301 | (11%) | ||||||
Advanced Materials | 241 | 266 | (9%) | 1,044 | 1,116 | (6%) | ||||||
Textile Effects | 180 | 193 | (7%) | 763 | 824 | (7%) | ||||||
Corporate and Eliminations | (22) | 38 | n/m | (79) | 81 | n/m | ||||||
Total | $ 1,657 | $ 1,821 | (9%) | $ 6,797 | $ 7,604 | (11%) | ||||||
Segment Adjusted EBITDA(1): | ||||||||||||
Polyurethanes | $ 122 | $ 141 | (13%) | $ 548 | $ 809 | (32%) | ||||||
Performance Products | 43 | 39 | 10% | 168 | 197 | (15%) | ||||||
Advanced Materials | 42 | 48 | (13%) | 201 | 225 | (11%) | ||||||
Textile Effects | 18 | 21 | (14%) | 84 | 101 | (17%) | ||||||
Corporate, LIFO and other | (43) | (42) | (2%) | (155) | (171) | 9% | ||||||
Total | $ 182 | $ 207 | (12%) | $ 846 | $ 1,161 | (27%) | ||||||
n/m = not meaningful | ||||||||||||
See end of press release for footnote explanations. | ||||||||||||
Table 3 -- Factors Impacting Sales Revenue | |||||||||||
Three months ended | |||||||||||
December 31, 2019 vs. 2018 | |||||||||||
Average Selling Price(a) | |||||||||||
Local | Exchange | Sales Mix | Sales | ||||||||
Currency | Rate | & Other | Volume(b) | Total | |||||||
Polyurethanes | (11%) | (1%) | 5% | 4% | (3%) | ||||||
Performance Products | (5%) | (1%) | 1% | (5%) | (10%) | ||||||
Advanced Materials | 0% | (2%) | 2% | (9%) | (9%) | ||||||
Textile Effects | (5%) | (1%) | 0% | (1%) | (7%) | ||||||
Twelve months ended | |||||||||||
December 31, 2019 vs. 2018 | |||||||||||
Average Selling Price(a) | |||||||||||
Local | Exchange | Sales Mix | Sales | ||||||||
Currency | Rate | & Other | Volume(b) | Total | |||||||
Polyurethanes | (13%) | (2%) | 1% | 5% | (9%) | ||||||
Polyurethanes, adj | (12%) | (2%) | 1% | 3% | (10%) | (c) | |||||
Performance Products | (2%) | (2%) | 1% | (8%) | (11%) | ||||||
Advanced Materials | 2% | (3%) | 2% | (7%) | (6%) | ||||||
Textile Effects | 4% | (3%) | 0% | (8%) | (7%) | ||||||
(a) | Excludes sales from tolling arrangements, by-products and raw materials. | |||||||||||
(b) | Excludes sales from by-products and raw materials. | |||||||||||
(c) | Pro forma adjusted to exclude the 2Q18, 3Q18 and 3Q19 impacts from unplanned outages at Rotterdam onset by third-party constraints. | |||||||||||
Table 4 -- Reconciliation of U.S. GAAP to Non-GAAP Measures | ||||||||||||||||
Income Tax | Diluted Income (Loss) | |||||||||||||||
EBITDA | Benefit (Expense) | Net Income (Loss) | Per Share | |||||||||||||
Three months ended | Three months ended | Three months ended | Three months ended | |||||||||||||
December 31, | December 31, | December 31, | December 31, | |||||||||||||
In millions, except per share amounts | 2019 | 2018 | 2019 | 2018 | 2019 | 2018 | 2019 | 2018 | ||||||||
Net income (loss) | $ 308 | $ (315) | $ 308 | $ (315) | $ 1.36 | $ (1.33) | ||||||||||
Net income attributable to noncontrolling interests | (5) | (25) | (5) | (25) | (0.02) | (0.11) | ||||||||||
Net income (loss) attributable to Huntsman Corporation | 303 | (340) | 303 | (340) | 1.34 | (1.43) | ||||||||||
Interest expense from continuing operations | 25 | 29 | ||||||||||||||
Interest expense from discontinued operations(3) | - | 6 | ||||||||||||||
Income tax (benefit) expense from continuing operations | (151) | 4 | $ 151 | $ (4) | ||||||||||||
Income tax benefit from discontinued operations(3) | (9) | (9) | ||||||||||||||
Depreciation and amortization from continuing operations | 69 | 68 | ||||||||||||||
Depreciation and amortization from discontinued operations(3) | 2 | 25 | ||||||||||||||
Business acquisition and integration expenses (income) and purchase accounting inventory adjustments | 1 | (1) | 1 | (1) | 2 | (2) | 0.01 | (0.01) | ||||||||
EBITDA / (Income) loss from discontinued operations, net of tax(3) | (36) | 354 | - | - | (43) | 376 | (0.19) | 1.58 | ||||||||
Noncontrolling interest of discontinued operations(1)(3) | - | 10 | - | - | - | 10 | - | 0.04 | ||||||||
U.S. tax reform impact on tax expense | - | - | (4) | (17) | (4) | (17) | (0.02) | (0.07) | ||||||||
Significant activities related to deferred tax assets and liabilities(a) | - | - | (160) | - | (160) | - | (0.71) | - | ||||||||
Loss on sale of businesses/assets | 21 | - | (5) | - | 16 | - | 0.07 | - | ||||||||
Fair value adjustments to Venator Investment(b) | (72) | 62 | - | - | (72) | 62 | (0.32) | 0.26 | ||||||||
Certain legal settlements and related expenses (income) | 5 | (3) | (1) | - | 4 | (3) | 0.02 | (0.01) | ||||||||
Certain non-recurring information technology project implementation costs | 3 | - | (1) | - | 2 | - | 0.01 | - | ||||||||
Amortization of pension and postretirement actuarial losses | 17 | 17 | (3) | (1) | 14 | 16 | 0.06 | 0.07 | ||||||||
Restructuring, impairment and plant closing and transition costs (credits) | 1 | (15) | - | 3 | 1 | (12) | - | (0.05) | ||||||||
Plant incident remediation costs | 3 | - | (1) | - | 2 | - | 0.01 | - | ||||||||
Adjusted(1) | $ 182 | $ 207 | $ (23) | $ (20) | $ 65 | $ 90 | $ 0.29 | $ 0.38 | ||||||||
Adjusted income tax expense(1) | $ 23 | $ 20 | ||||||||||||||
Net income attributable to noncontrolling interests, net of tax | 5 | 25 | ||||||||||||||
Noncontrolling interest of discontinued operations(1)(3) | - | (10) | ||||||||||||||
Adjusted pre-tax income(1) | $ 93 | $ 125 | ||||||||||||||
Adjusted effective tax rate(4) | 25% | 16% | ||||||||||||||
Effective tax rate | n/m | 6% | ||||||||||||||
Income Tax | Diluted Income | |||||||||||||||
EBITDA | Benefit (Expense) | Net Income | Per Share | |||||||||||||
Twelve months ended | Twelve months ended | Twelve months ended | Twelve months ended | |||||||||||||
December 31, | December 31, | December 31, | December 31, | |||||||||||||
In millions, except per share amounts | 2019 | 2018 | 2019 | 2018 | 2019 | 2018 | 2019 | 2018 | ||||||||
Net income | $ 598 | $ 650 | $ 598 | $ 650 | $ 2.59 | $ 2.69 | ||||||||||
Net income attributable to noncontrolling interests | (36) | (313) | (36) | (313) | (0.16) | (1.30) | ||||||||||
Net income attributable to Huntsman Corporation | 562 | 337 | 562 | 337 | 2.44 | 1.39 | ||||||||||
Interest expense from continuing operations | 111 | 115 | ||||||||||||||
Interest expense from discontinued operations(3) | - | 36 | ||||||||||||||
Income tax (benefit) expense from continuing operations | (38) | 45 | $ 38 | $ (45) | ||||||||||||
Income tax expense from discontinued operations(3) | 35 | 86 | ||||||||||||||
Depreciation and amortization from continuing operations | 270 | 255 | ||||||||||||||
Depreciation and amortization from discontinued operations(3) | 61 | 88 | ||||||||||||||
Business acquisition and integration expenses and purchase accounting inventory adjustments | 5 | 9 | - | (3) | 5 | 6 | 0.02 | 0.02 | ||||||||
EBITDA / (Income) loss from discontinued operations, net of tax(3) | (265) | (171) | - | - | (169) | 39 | (0.73) | 0.16 | ||||||||
Noncontrolling interest of discontinued operations(1)(3) | - | 232 | - | - | - | 232 | - | 0.96 | ||||||||
U.S. tax reform impact on tax expense | - | - | (1) | 32 | (1) | 32 | - | 0.13 | ||||||||
Significant activities related to deferred tax assets and liabilities(a) | - | - | (160) | (119) | (160) | (119) | (0.69) | (0.49) | ||||||||
Impact of Switzerland income tax rate change(a) | - | - | 32 | - | 32 | - | 0.14 | - | ||||||||
Loss on sale of businesses/assets | 21 | - | (5) | - | 16 | - | 0.07 | - | ||||||||
Merger costs, net of tax | - | 2 | - | - | - | 2 | - | 0.01 | ||||||||
Fair value adjustments to Venator Investment(b) | 18 | 62 | - | - | 18 | 62 | 0.08 | 0.26 | ||||||||
Loss on early extinguishment of debt | 23 | 3 | (5) | (1) | 18 | 2 | 0.08 | 0.01 | ||||||||
Certain legal settlements and related expenses | 6 | 1 | (1) | (1) | 5 | - | 0.02 | - | ||||||||
Certain non-recurring information technology project implementation costs | 4 | - | (1) | - | 3 | - | 0.01 | - | ||||||||
Amortization of pension and postretirement actuarial losses | 66 | 67 | (16) | (13) | 50 | 54 | 0.22 | 0.22 | ||||||||
Restructuring, impairment and plant closing and transition credits | (41) | (6) | 9 | 1 | (32) | (5) | (0.14) | (0.02) | ||||||||
Plant incident remediation costs | 8 | - | (2) | - | 6 | - | 0.03 | - | ||||||||
Adjusted(1) | $ 846 | $ 1,161 | $ (112) | $ (149) | $ 353 | $ 642 | $ 1.53 | $ 2.66 | ||||||||
Adjusted income tax expense(1) | $ 112 | $ 149 | ||||||||||||||
Net income attributable to noncontrolling interests, net of tax | 36 | 313 | ||||||||||||||
Noncontrolling interest of discontinued operations(1)(3) | - | (232) | ||||||||||||||
Adjusted pre-tax income(1) | $ 501 | $ 872 | ||||||||||||||
Adjusted effective tax rate(4) | 22% | 17% | ||||||||||||||
Effective tax rate | (10%) | 6% | ||||||||||||||
(a) | During the year ended December 31, 2019, we recorded $153 million of tax benefit relating to the outside basis difference in our investment in Venator, we recorded $18 million of tax benefit relating to realized tax losses on our remaining interest in Venator, we established $11 million of significant income tax valuation allowance in Australia and we recorded $32 million of deferred tax expense due to the reduction of tax rates in Switzerland. During the year ended December 31, 2018, we released $119 million of significant income tax valuation allowances in Switzerland, the U.K. and Luxembourg. We eliminated the effect of these significant changes in tax valuation allowances and deferred tax assets and liabilities from our presentation of adjusted net income to allow investors to better compare our ongoing financial performance from period to period. | |||||||||||||||||||
(b) | Represents the changes in market value in Huntsman's remaining interesting in Venator. | |||||||||||||||||||
n/m = not meaningful; n/a = not applicable | ||||||||||||||||||||
See end of press release for footnote explanations. | ||||||||||||||||||||
Table 5 -- Selected Balance Sheet Items | ||||
December 31, | December 31, | |||
In millions | 2019 | 2018 | ||
Cash | $ 525 | $ 340 | ||
Accounts and notes receivable, net | 953 | 1,183 | ||
Inventories | 914 | 1,000 | ||
Other current assets | 155 | 203 | ||
Current assets held for sale | 1,208 | 232 | ||
Property, plant and equipment, net | 2,383 | 2,353 | ||
Other noncurrent assets | 2,182 | 1,765 | ||
Noncurrent assets held for sale | - | 877 | ||
Total assets | $ 8,320 | $ 7,953 | ||
Accounts payable | $ 822 | $ 793 | ||
Other current liabilities | 462 | 497 | ||
Current portion of debt | 212 | 96 | ||
Current liabilities held for sale | 512 | 225 | ||
Long-term debt | 2,177 | 2,224 | ||
Other noncurrent liabilities | 1,311 | 1,086 | ||
Noncurrent liabilities held for sale | - | 283 | ||
Huntsman Corporation stockholders' equity | 2,687 | 2,520 | ||
Noncontrolling interests in subsidiaries | 137 | 229 | ||
Total liabilities and equity | $ 8,320 | $ 7,953 | ||
Table 6 -- Outstanding Debt | ||||
December 31, | December 31, | |||
In millions | 2019 | 2018 | ||
Debt: | ||||
Revolving credit facility | $ 40 | $ 50 | ||
Accounts receivable programs | 167 | 252 | ||
Term loan | 103 | - | ||
Senior notes | 1,963 | 1,892 | ||
Variable interest entities | 65 | 86 | ||
Other debt | 51 | 40 | ||
Total debt - excluding affiliates | 2,389 | 2,320 | ||
Total cash | 525 | 340 | ||
Net debt - excluding affiliates(5) | $ 1,864 | $ 1,980 | ||
See end of press release for footnote explanations. | ||||
Table 7 -- Summarized Statement of Cash Flows | ||||||||
Three months ended | Twelve months ended | |||||||
December 31, | December 31, | |||||||
In millions | 2019 | 2018 | 2019 | 2018 | ||||
Total cash at beginning of period(a) | $ 418 | $ 697 | $ 340 | $ 719 | ||||
Net cash provided by operating activities - continuing operations | 222 | 258 | 656 | 704 | ||||
Net cash provided by operating activities - discontinued operations(3) | 19 | 15 | 241 | 503 | ||||
Net cash used in investing activities - continuing operations | (90) | (101) | (201) | (615) | ||||
Net cash used in investing activities - discontinued operations(3) | (28) | (61) | (59) | (358) | ||||
Net cash provided by (used in) financing activities | (19) | (307) | (450) | (424) | ||||
Effect of exchange rate changes on cash | 3 | (7) | (2) | (35) | ||||
Deconsolidation of cash, cash equivalents and restricted cash from Venator | - | (154) | - | (154) | ||||
Total cash at end of period(a) | $ 525 | $ 340 | $ 525 | $ 340 | ||||
Free cash flow - continuing operations(2): | ||||||||
Net cash provided by operating activities | $ 222 | $ 258 | $ 656 | $ 704 | ||||
Capital expenditures | (93) | (103) | (274) | (251) | ||||
All other investing activities, excluding acquisition and disposition activities(b) | 2 | (1) | 7 | (1) | ||||
Non-recurring merger costs(c) | - | - | - | 2 | ||||
Free cash flow - continuing operations | $ 131 | $ 154 | $ 389 | $ 454 | ||||
Adjusted EBITDA | $ 182 | $ 207 | $ 846 | $ 1,161 | ||||
Capital expenditures | (93) | (103) | (274) | (251) | ||||
Capital reimbursements | 2 | 4 | 11 | 8 | ||||
Interest | (46) | (44) | (111) | (117) | ||||
Income taxes | 18 | (23) | (70) | (138) | ||||
Primary working capital change | 164 | 150 | 236 | (90) | ||||
Restructuring | (8) | (4) | (22) | (11) | ||||
Pensions | (30) | (30) | (121) | (124) | ||||
Maintenance & other | (58) | (3) | (106) | 16 | ||||
Free cash flow - continuing operations(2) | $ 131 | $ 154 | $ 389 | $ 454 | ||||
(a) | Includes restricted cash and cash held in discontinued operations until the Deconsolidation of Venator. | ||||||||
(b) | Represents "Acquisition of business, net of cash acquired", "Cash received from purchase price adjustment for business acquired", and "Proceeds from sale of business/assets". | ||||||||
(c) | Represents adjustment for payments associated with one-time costs of the terminated merger of equals with Clariant. | ||||||||
Footnotes | |
(1) | We use adjusted EBITDA to measure the operating performance of our business and for planning and evaluating the performance of our business segments. We provide adjusted net income because we feel it provides meaningful insight for the investment community into the performance of our business. We believe that net income (loss) is the performance measure calculated and presented in accordance with generally accepted accounting principles in the U.S. ("GAAP") that is most directly comparable to adjusted EBITDA and adjusted net income (loss). Additional information with respect to our use of each of these financial measures follows:
Adjusted EBITDA, adjusted net income (loss) and adjusted diluted income (loss) per share, as used herein, are not necessarily comparable to other similarly titled measures of other companies.
Adjusted EBITDA is computed by eliminating the following from net income (loss): (a) net income attributable to noncontrolling interests, net of tax; (b) interest; (c) income taxes; (d) depreciation and amortization (e) amortization of pension and postretirement actuarial losses (gains); (f) restructuring, impairment and plant closing costs (credits); and further adjusted for certain other items set forth in reconciliation of adjusted EBITDA to net income (loss) in Table 4 above.
Adjusted net income (loss) and adjusted diluted income (loss) per share are computed by eliminating the after tax impact of the following items from net income (loss): (a) net income attributable to noncontrolling interest; (b) amortization of pension and postretirement actuarial losses (gains); (c) restructuring, impairment and plant closing costs (credits); and further adjusted for certain other items set forth in reconciliation of adjusted EBITDA to net income (loss) in Table 4 above. The income tax impacts, if any, of each adjusting item represent a ratable allocation of the total difference between the unadjusted tax expense and the total adjusted tax expense, computed without consideration of any adjusting items using a with and without approach.
We do not provide reconciliations for adjusted EBITDA, adjusted net income (loss) or adjusted diluted income (loss) per share on a forward-looking basis because we are unable to provide a meaningful or accurate calculation or estimation of reconciling items and the information is not available without unreasonable effort. This is due to the inherent difficulty of forecasting the timing and amount of certain items, such as, but not limited to, (a) business acquisition and integration expenses and purchase accounting adjustments, (b) merger costs, and (c) certain legal and other settlements and related costs. Each of such adjustments has not yet occurred, are out of our control and/or cannot be reasonably predicted. For the same reasons, we are unable to address the probable significance of the unavailable information. |
(2) | Management internally uses a free cash flow measure: (a) to evaluate the Company's liquidity, (b) to evaluate strategic investments, (c) to plan stock buyback and dividend levels and (d) to evaluate the Company's ability to incur and service debt. Free cash flow is not a defined term under U.S. GAAP, and it should not be inferred that the entire free cash flow amount is available for discretionary expenditures. The Company defines free cash flow as cash flow provided by operating activities less cash flow used in investing activities, excluding non-recurring merger costs. Free cash flow as used herein is not necessarily comparable to other similarly titled measures of other companies due to potential inconsistencies in the method of calculation. Free cash flow is typically derived directly from the Company's condensed consolidated statement of cash flows; however, it may be adjusted for items that affect comparability between periods. |
(3) | During the third quarter 2019, we entered into an agreement to sell our Chemical Intermediates and Surfactants businesses, which are now reported as held for sale. In the third quarter of 2017 we separated our Pigments and Additives division through an Initial Public Offering of Venator Materials PLC. Additionally, during the first quarter 2010 we closed our Australian styrenics operations. Results from these associated businesses are treated as discontinued operations. |
(4) | We believe adjusted effective tax rate provides improved comparability between periods through the exclusion of certain items that management believes are not indicative of the businesses' operational profitability and that may obscure underlying business results and trends. In our view, effective tax rate is the performance measure calculated and presented in accordance with U.S. GAAP that is most directly comparable to adjusted effective tax rate.
The reconciliation of historical adjusted effective tax rate and effective tax rate is set forth in Table 4 above. We do not provide reconciliations for adjusted effective tax rate on a forward-looking basis because we are unable to provide a meaningful or accurate calculation or estimation of reconciling items and the information is not available without unreasonable effort. This is due to the inherent difficulty of forecasting the timing and amount of certain items, such as, but not limited to, (a) business acquisition and integration expenses, (b) merger costs, and (c) certain legal and other settlements and related costs. Each of such adjustments has not yet occurred, are out of our control and/or cannot be reasonably predicted. For the same reasons, we are unable to address the probable significance of the unavailable information. |
(5) | Net debt is a measure we use to monitor how much debt we have after taking into account our total cash. We use it as an indicator of our overall financial position, and calculate it by taking our total debt, including the current portion, and subtracting total cash. |
About Huntsman:
Huntsman Corporation is a publicly traded global manufacturer and marketer of differentiated and specialty chemicals with 2019 revenues of approximately $7 billion. Our chemical products number in the thousands and are sold worldwide to manufacturers serving a broad and diverse range of consumer and industrial end markets. We operate more than 70 manufacturing, R&D and operations facilities in approximately 30 countries and employ approximately 9,000 associates within our four distinct business divisions. For more information about Huntsman, please visit the company's website at www.huntsman.com.
Social Media:
Twitter: www.twitter.com/Huntsman_Corp
Facebook: www.facebook.com/huntsmancorp
LinkedIn: www.linkedin.com/company/huntsman
Forward-Looking Statements:
Certain information in this release constitutes forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. These statements are based on management's current beliefs and expectations. The forward-looking statements in this release are subject to uncertainty and changes in circumstances and involve risks and uncertainties that may affect the company's operations, markets, products, services, prices and other factors as discussed under the caption "Risk Factors" in the Huntsman companies' filings with the U.S. Securities and Exchange Commission. Significant risks and uncertainties may relate to, but are not limited to, volatile global economic conditions, cyclical and volatile product markets, disruptions in production at manufacturing facilities, reorganization or restructuring of Huntsman's operations, including any delay of, or other negative developments affecting the ability to implement cost reductions, timing of proposed transactions, and manufacturing optimization improvements in Huntsman businesses and realize anticipated cost savings, and other financial, economic, competitive, environmental, political, legal, regulatory and technological factors. The company assumes no obligation to provide revisions to any forward-looking statements should circumstances change, except as otherwise required by applicable laws.
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SOURCE Huntsman Corporation
Article Date
2/13/2020Huntsman to Discuss Fourth Quarter 2019 Results on February 13, 2020
Source: PR Newswire
THE WOODLANDS, Texas, Jan. 6, 2020 /PRNewswire/ -- Huntsman Corporation (NYSE: HUN) will hold a conference call on Thursday, February 13, 2020, at 9:00 a.m. ET to discuss its fourth quarter 2019 financial results, which will be released at approximately 6:00 a.m. ET that day.
Webcast link:
https://78449.themediaframe.com/dataconf/productusers/hun/mediaframe/34153/indexl.html
Participant dial-in numbers: | |
Domestic callers: | (877) 402-8037 |
International callers: | (201) 378-4913 |
The conference call will be accompanied by presentation slides that will be accessible via the webcast link and Huntsman's investor relations website, ir.huntsman.com. Upon conclusion of the call, the webcast replay will be accessible via Huntsman's website.
About Huntsman:
Huntsman Corporation is a publicly traded global manufacturer and marketer of differentiated and specialty chemicals with 2018 revenues more than $9 billion. Our chemical products number in the thousands and are sold worldwide to manufacturers serving a broad and diverse range of consumer and industrial end markets. We operate more than 75 manufacturing, R&D and operations facilities in approximately 30 countries and employ approximately 10,000 associates within our four distinct business divisions. For more information about Huntsman, please visit the company's website at www.huntsman.com.
Social Media:
Twitter: www.twitter.com/Huntsman_Corp
Facebook: www.facebook.com/huntsmancorp
LinkedIn: www.linkedin.com/company/huntsman
Forward-Looking Statements:
Certain information in this release constitutes forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. These statements are based on management's current beliefs and expectations. The forward-looking statements in this release are subject to uncertainty and changes in circumstances and involve risks and uncertainties that may affect the company's operations, markets, products, services, prices and other factors as discussed under the caption "Risk Factors" in the Huntsman companies' filings with the U.S. Securities and Exchange Commission. Significant risks and uncertainties may relate to, but are not limited to, volatile global economic conditions, cyclical and volatile product markets, disruptions in production at manufacturing facilities, reorganization or restructuring of Huntsman's operations, including any delay of, or other negative developments affecting the ability to implement cost reductions and manufacturing optimization improvements in Huntsman businesses and realize anticipated cost savings, and other financial, economic, competitive, environmental, political, legal, regulatory and technological factors. The company assumes no obligation to provide revisions to any forward-looking statements should circumstances change, except as otherwise required by applicable laws.
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SOURCE Huntsman Corporation
Article Date
1/6/2020Huntsman Completes the Sale of its Chemical Intermediates and Surfactants Businesses to Indorama Ventures for $2 Billion
Source: PR Newswire
THE WOODLANDS, Texas, Jan. 5, 2020 /PRNewswire/ -- Huntsman Corporation (NYSE: HUN) announced today it has completed the sale of its chemical intermediates businesses, which includes PO/MTBE, and its surfactants businesses to Indorama Ventures in a transaction valued at approximately $2 billion, comprising a cash purchase price of approximately $1.93 billion, which includes estimated adjustments to the purchase price for working capital, plus the transfer of up to approximately $76 million in net underfunded pension and other post-employment benefit liabilities. The final purchase price is subject to customary post-closing adjustments. The net cash proceeds are expected to be just under $1.6 billion.
Peter Huntsman, Chairman, President and CEO commented:
"This transformational transaction significantly reduces our capital-intensive upstream asset base, further bolsters our already strong balance sheet and allows us to further invest in and grow our downstream businesses. We are committed to retaining our investment grade balance sheet and our continued balanced approach to capital allocation. This transaction greatly expands our flexibility and opportunity for select strategic and accretive acquisitions, as well as for expansions in our core downstream global footprint, and for continued opportunistic repurchases of our shares. We remain disciplined and focused on the creation of long-term shareholder value.
"This is a great transaction for both Huntsman and Indorama. I am pleased to see that so many of our outstanding associates are transitioning to a company that has values like Huntsman. Led by Aloke Lohia, Indorama is a family-run business that understands the value of quality people. I look forward to an ongoing relationship with Indorama for years to come."
About Huntsman:
Huntsman Corporation is a publicly traded global manufacturer and marketer of differentiated and specialty chemicals with 2018 revenues of more than $9 billion. Our chemical products number in the thousands and are sold worldwide to manufacturers serving a broad and diverse range of consumer and industrial end markets. We operate more than 75 manufacturing, R&D and operations facilities in approximately 30 countries and employ approximately 10,000 associates within our four distinct business divisions. For more information about Huntsman, please visit the company's website at www.huntsman.com.
Social Media:
Twitter: www.twitter.com/Huntsman_Corp
Facebook: www.facebook.com/huntsmancorp
LinkedIn: www.linkedin.com/company/huntsman
Forward-Looking Statements:
Certain information in this release constitutes forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. These statements are based on management's current beliefs and expectations. The forward-looking statements in this release are subject to uncertainty and changes in circumstances and involve risks and uncertainties that may affect the company's operations, markets, products, services, prices and other factors as discussed under the caption "Risk Factors" in the Huntsman companies' filings with the U.S. Securities and Exchange Commission. Significant risks and uncertainties may relate to, but are not limited to, volatile global economic conditions, cyclical and volatile product markets, disruptions in production at manufacturing facilities, reorganization or restructuring of Huntsman's operations, including any delay of, or other negative developments affecting the ability to implement cost reductions and manufacturing optimization improvements in Huntsman businesses and realize anticipated cost savings, and other financial, economic, competitive, environmental, political, legal, regulatory and technological factors. The company assumes no obligation to provide revisions to any forward-looking statements should circumstances change, except as otherwise required by applicable laws.
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SOURCE Huntsman Corporation
Article Date
1/6/2020Huntsman Announces the Acquisition of Icynene-Lapolla, Expanding its Downstream Footprint in Spray Polyurethane Foam Insulation
Source: PR Newswire
THE WOODLANDS, Texas, Dec. 5, 2019 /PRNewswire/ -- Huntsman Corporation (NYSE: HUN) today announces its agreement to acquire Icynene-Lapolla, a leading North American manufacturer and distributor of spray polyurethane foam (SPF) insulation systems for residential and commercial applications, from an affiliate of FFL Partners, LLC.
Icynene-Lapolla has annual revenues of approximately $230 million with two manufacturing facilities located in Houston, Texas and Mississauga, Ontario. Under terms of the agreement, Huntsman will pay $350 million, subject to customary closing adjustments, in an all-cash transaction funded from available liquidity. Based on full year 2019 adjusted EBITDA estimates, the purchase price represents an adjusted EBITDA multiple of approximately 10 times, or approximately 7 times adjusted EBITDA pro forma for synergies. The transaction is expected to close in the first half of 2020.
Commenting on the acquisition, Tony Hankins, President of Huntsman's Polyurethanes division, said: "I am delighted that Icynene-Lapolla is joining our downstream, high-growth MDI urethanes insulation business. Icynene-Lapolla is well recognized by architects, builders and contractors as a market leader in the manufacture and supply of high-performance, energy-efficient building envelope solutions. Almost half of all energy consumption is used in the heating and cooling of buildings, making the choice of insulation critical. SPF is the most effective insulant available in the market. The combination of Icynene-Lapolla, with its SPF product range and reflective roof coatings, with Demilec, the SPF business we acquired in 2018, will significantly strengthen our energy-saving insulation business and provide customers with an unmatched offering of choice while accelerating the globalization of our spray foam technology."
Peter Huntsman, Chairman, President and CEO further commented: "As the demand for energy efficiency continues to grow, both in residential and commercial construction, this combination of companies will provide Huntsman with the largest global array of spray foam technology, integration of raw materials and associates. This is the size and type of downstream assets that we will continue to add to our Company as we strengthen margins, move downstream and be less reliant on a single product or application."
About Huntsman:
Huntsman Corporation is a publicly traded global manufacturer and marketer of differentiated and specialty chemicals with 2018 revenues more than $9 billion. Our chemical products number in the thousands and are sold worldwide to manufacturers serving a broad and diverse range of consumer and industrial end markets. We operate more than 75 manufacturing, R&D and operations facilities in approximately 30 countries and employ approximately 10,000 associates within our four distinct business divisions. For more information about Huntsman, please visit the company's website at www.huntsman.com.
Social Media:
Twitter: www.twitter.com/Huntsman_Corp
Facebook: www.facebook.com/huntsmancorp
LinkedIn: www.linkedin.com/company/huntsman
Forward-Looking Statements:
Certain information in this release constitutes forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. These statements are based on management's current beliefs and expectations. The forward-looking statements in this release are subject to uncertainty and changes in circumstances and involve risks and uncertainties that may affect the company's operations, markets, products, services, prices and other factors as discussed under the caption "Risk Factors" in the Huntsman companies' filings with the U.S. Securities and Exchange Commission. Significant risks and uncertainties may relate to, but are not limited to, volatile global economic conditions, cyclical and volatile product markets, disruptions in production at manufacturing facilities, reorganization or restructuring of Huntsman's operations, including any delay of, or other negative developments affecting the ability to implement cost reductions, timing of proposed transactions, and manufacturing optimization improvements in Huntsman businesses and realize anticipated cost savings, and other financial, economic, competitive, environmental, political, legal, regulatory and technological factors. The company assumes no obligation to provide revisions to any forward-looking statements should circumstances change, except as otherwise required by applicable laws.
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SOURCE Huntsman Corporation
Article Date
12/5/2019Huntsman to Present at Citi Basic Materials Conference on December 3rd; Update on Disruption at Port Neches Facility
Source: PR Newswire
THE WOODLANDS, Texas, Dec. 2, 2019 /PRNewswire/ -- Huntsman Corporation (NYSE: HUN) today announced that Peter Huntsman, Chairman, President and CEO, will address investors at the Citi 2019 Basic Materials Conference in New York City on Tuesday, December 3, 2019 at 9:30 a.m. ET. A live webcast, as well as the presentation slides, can be accessed at the time of the presentation via the webcast link at Huntsman's investor relations website, ir.huntsman.com. Upon conclusion of the live webcast, the webcast replay will be accessible via Huntsman's website.
Regarding its discontinued operations, on early Wednesday morning, November 27th, there was an explosion and fire at a neighboring site to Huntsman's Port Neches, Texas facility. There were no serious injuries sustained by Huntsman associates and there was no damage to the Huntsman site. Except for the PO/MTBE unit, all other site operations have now resumed to pre-incident levels. Although the PO/MTBE unit was not damaged, it remains idled for the time being because of certain dependencies with the adjacent site that was damaged by the fire. While we await access to the adjacent site and further evaluate alternatives to safely bring this unit fully back on line, the expected duration of downtime and economic impact is unknown. The outage is expected to have a minor negative knock-on impact of a few million dollars to fourth quarter adjusted EBITDA for continuing operations, largely relating to the sourcing of PO.
The closing of the sale of Huntsman's Intermediates Chemicals, Integrated Oxides and Surfactants Business to Indorama Ventures remains on target for early 2020. Most recently, CFIUS approval was received, thereby clearing another condition precedent to the closing of this sale.
About Huntsman:
Huntsman Corporation is a publicly traded global manufacturer and marketer of differentiated and specialty chemicals with 2018 revenues more than $9 billion. Our chemical products number in the thousands and are sold worldwide to manufacturers serving a broad and diverse range of consumer and industrial end markets. We operate more than 75 manufacturing, R&D and operations facilities in approximately 30 countries and employ approximately 10,000 associates within our four distinct business divisions. For more information about Huntsman, please visit the company's website at www.huntsman.com.
Social Media:
Twitter: www.twitter.com/Huntsman_Corp
Facebook: www.facebook.com/huntsmancorp
LinkedIn: www.linkedin.com/company/huntsman
Forward-Looking Statements:
Certain information in this release constitutes forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. These statements are based on management's current beliefs and expectations. The forward-looking statements in this release are subject to uncertainty and changes in circumstances and involve risks and uncertainties that may affect the company's operations, markets, products, services, prices and other factors as discussed under the caption "Risk Factors" in the Huntsman companies' filings with the U.S. Securities and Exchange Commission. Significant risks and uncertainties may relate to, but are not limited to, volatile global economic conditions, cyclical and volatile product markets, disruptions in production at manufacturing facilities, reorganization or restructuring of Huntsman's operations, including any delay of, or other negative developments affecting the ability to implement cost reductions, timing of proposed transactions, and manufacturing optimization improvements in Huntsman businesses and realize anticipated cost savings, and other financial, economic, competitive, environmental, political, legal, regulatory and technological factors. The company assumes no obligation to provide revisions to any forward-looking statements should circumstances change, except as otherwise required by applicable laws.
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SOURCE Huntsman Corporation
Article Date
12/2/2019Huntsman Announces Fourth Quarter 2019 Common Dividend
Source: PR Newswire
THE WOODLANDS, Texas, Nov. 5, 2019 /PRNewswire/ -- Huntsman Corporation (NYSE: HUN) today announced that its board of directors has declared a $0.1625 per share cash dividend on its common stock. The dividend is payable on December 31, 2019 to stockholders of record as of December 13, 2019.
About Huntsman:
Huntsman Corporation is a publicly traded global manufacturer and marketer of differentiated and specialty chemicals with 2018 revenues more than $9 billion. Our chemical products number in the thousands and are sold worldwide to manufacturers serving a broad and diverse range of consumer and industrial end markets. We operate more than 75 manufacturing, R&D and operations facilities in approximately 30 countries and employ approximately 10,000 associates within our four distinct business divisions. For more information about Huntsman, please visit the company's website at www.huntsman.com.
Social Media:
Twitter: www.twitter.com/Huntsman_Corp
Facebook: www.facebook.com/huntsmancorp
LinkedIn: www.linkedin.com/company/huntsman
Forward-Looking Statements:
Certain information in this release constitutes forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. These statements are based on management's current beliefs and expectations. The forward-looking statements in this release are subject to uncertainty and changes in circumstances and involve risks and uncertainties that may affect the company's operations, markets, products, services, prices and other factors as discussed under the caption "Risk Factors" in the Huntsman companies' filings with the U.S. Securities and Exchange Commission. Significant risks and uncertainties may relate to, but are not limited to, volatile global economic conditions, cyclical and volatile product markets, disruptions in production at manufacturing facilities, reorganization or restructuring of Huntsman's operations, including any delay of, or other negative developments affecting the ability to implement cost reductions, timing of proposed transactions, and manufacturing optimization improvements in Huntsman businesses and realize anticipated cost savings, and other financial, economic, competitive, environmental, political, legal, regulatory and technological factors. The company assumes no obligation to provide revisions to any forward-looking statements should circumstances change, except as otherwise required by applicable laws.
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SOURCE Huntsman Corporation
Article Date
11/5/2019Huntsman Announces Third Quarter 2019 Earnings; Strong Cash Flow Generation in the Quarter; Divestiture of the Chemical Intermediates and Surfactants Businesses on Track
Source: PR Newswire
THE WOODLANDS, Texas, Oct. 25, 2019 /PRNewswire/ --
Third Quarter Highlights
Three months ended | Nine months ended | |||||||
September 30, | September 30, | |||||||
In millions, except per share amounts | 2019 | 2018 | 2019 | 2018 | ||||
Revenues | $ 1,687 | $ 1,968 | $ 5,140 | $ 5,783 | ||||
Net income (loss) | $ 41 | $ (8) | $ 290 | $ 965 | ||||
Adjusted net income(1) | $ 95 | $ 170 | $ 288 | $ 552 | ||||
Diluted income (loss) per share | $ 0.13 | $ (0.05) | $ 1.12 | $ 2.79 | ||||
Adjusted diluted income per share(1) | $ 0.41 | $ 0.71 | $ 1.24 | $ 2.27 | ||||
Adjusted EBITDA(1) | $ 215 | $ 308 | $ 664 | $ 954 | ||||
Net cash provided by operating activities from continuing operations | $ 257 | $ 248 | $ 434 | $ 446 | ||||
Free cash flow from continuing operations(2) | $ 197 | $ 191 | $ 258 | $ 300 | ||||
See end of press release for footnote explanations and reconciliations of non-GAAP measures |
Huntsman Corporation (NYSE: HUN) today reported third quarter 2019 results with revenues of $1,687 million, net income of $41 million, adjusted net income of $95 million and adjusted EBITDA of $215 million.
Peter R. Huntsman, Chairman, President and CEO, commented:
"In spite of an increasingly challenging global economic environment, I have never been more pleased about our mix of businesses and the strength of our balance sheet. We continue our strategy to move and shift our asset portfolio to more downstream, stable and resilient businesses, as well as to manage effectively our working capital and balance sheet. We are on track to close the divestiture of our Chemical Intermediates and Surfactants businesses in early 2020, yielding approximately $1.6 billion of net proceeds upon completion. This, coupled with our ongoing strong free cash flow and investment grade balance sheet will provide us with abundant resource and flexibility in our ongoing balanced approach to capital allocation which includes organic and inorganic expansion, opportunistic share repurchases and a competitive dividend. We are very well positioned for the future."
Segment Analysis for 3Q19 Compared to 3Q18
Polyurethanes
The decrease in revenues in our Polyurethanes segment for the three months ended September 30, 2019 compared to the same period of 2018 was due to lower MDI average selling prices, partially offset by higher MDI sales volumes. MDI average selling prices decreased primarily due to a decline in component MDI selling prices in China and Europe. MDI sales volumes increased primarily due to the start-up of our new Chinese MDI facility in the third quarter of 2018. The decrease in segment adjusted EBITDA was primarily due to lower MDI margins driven by lower MDI pricing, partially offset by higher MDI sales volumes.
Performance Products
The decrease in revenues in our Performance Products segment for the three months ended September 30, 2019 compared to the same period of 2018 was due to lower average selling prices and lower sales volumes. Average selling prices decreased primarily due to lower raw material costs and weakened market conditions. Sales volumes decreased primarily due to weakened market conditions. The decrease in segment adjusted EBITDA was primarily due to lower sales volumes and lower margins, primarily in our ethyleneamines business, partially offset by higher margins in our specialty amines business.
Advanced Materials
The decrease in revenues in our Advanced Materials segment for the three months ended September 30, 2019 compared to the same period in 2018 was due to lower sales volumes and lower average selling prices. Sales volumes decreased across most markets primarily due to economic slowdown and customer destocking, particularly in our European region. Average selling prices decreased primarily due to the impact of a stronger U.S. dollar against major international currencies, partially offset by higher local currency selling prices. Segment adjusted EBITDA decreased due to lower sales volumes.
Textile Effects
The decrease in revenues in our Textile Effects segment for the three months ended September 30, 2019 compared to the same period of 2018 was due to lower sales volumes and lower average selling prices. Sales volumes decreased primarily due to lower demand primarily resulting from market uncertainties surrounding U.S. and China trade. Average selling prices decreased as a result of competitive market pressures and the impact of a stronger U.S. dollar against major international currencies. The decrease in segment adjusted EBITDA was primarily due to lower sales volumes and higher raw material costs, partially offset by lower fixed costs.
Corporate, LIFO and other
For the three months ended September 30, 2019, adjusted EBITDA from Corporate and other for Huntsman Corporation increased by $9 million to a loss of $36 million from a loss of $45 million for the same period of 2018.
Liquidity, Capital Resources and Outstanding Debt
During the three months ended September 30, 2019, our free cash flow from continuing operations was $197 million compared to $191 million in the prior year period. As of September 30, 2019, we had $1,707 million of combined cash and unused borrowing capacity.
During the three months ended September 30, 2019, we spent $63 million on capital expenditures compared to $59 million in the same period of 2018. In 2019, we expect to spend approximately $270 million on capital expenditures for continuing operations and approximately $70 million for the Chemical Intermediates and Surfactants businesses reported as discontinued operations.
During the three months ended September 30, 2019, we spent approximately $81 million to repurchase approximately 4.1 million shares. As of the end of the third quarter 2019, we have approximately $528 million remaining on our existing $1 billion multiyear share repurchase program.
Income Taxes
During the three months ended September 30, 2019, we recorded income tax expense of $30 million compared to $16 million during the same period in 2018. In the third quarter 2019, our adjusted effective tax rate was 21%. We expect our forward adjusted effective tax rate will be approximately 22% - 24%.
Earnings Conference Call Information
We will hold a conference call to discuss our third quarter 2019 financial results on Friday, October 25, 2019 at 10:00 a.m. ET.
Webcast link: https://78449.themediaframe.com/dataconf/productusers/hun/mediaframe/32469/indexl.html
Participant dial-in numbers: | |
Domestic callers: | (877) 402-8037 |
International callers: | (201) 378-4913 |
The conference call will be accompanied by presentation slides that will be accessible via the webcast link and Huntsman's investor relations website, ir.huntsman.com. Upon conclusion of the call, the webcast replay will be accessible via Huntsman's website.
Upcoming Conferences
During the third quarter 2019 a member of management is expected to present at:
Morgan Stanley's Global Chemicals and Agriculture Conference on November 13, 2019
Citi's Basic Materials Conference on December 3, 2019
A webcast of the presentation, if applicable, along with accompanying materials will be available at ir.huntsman.com.
Table 1 – Results of Operations | ||||||||
Three months ended | Nine months ended | |||||||
September 30, | September 30, | |||||||
In millions, except per share amounts | 2019 | 2018 | 2019 | 2018 | ||||
Revenues | $ 1,687 | $ 1,968 | $ 5,140 | $ 5,783 | ||||
Cost of goods sold | 1,347 | 1,501 | 4,068 | 4,371 | ||||
Gross profit | 340 | 467 | 1,072 | 1,412 | ||||
Operating expenses | 231 | 238 | 695 | 711 | ||||
Restructuring, impairment and plant closing (credits) costs | (43) | 5 | (42) | 8 | ||||
Merger costs | - | 1 | - | 2 | ||||
Operating income | 152 | 223 | 419 | 691 | ||||
Interest expense | (27) | (30) | (86) | (86) | ||||
Equity in income of investment in unconsolidated affiliates | 19 | 14 | 41 | 45 | ||||
Fair value adjustments to Venator investment | (148) | - | (90) | - | ||||
Loss on early extinguishment of debt | - | - | (23) | (3) | ||||
Other income, net | 7 | 6 | 16 | 22 | ||||
Income from continuing operations before income taxes | 3 | 213 | 277 | 669 | ||||
Income tax expense | (30) | (16) | (113) | (41) | ||||
(Loss) income from continuing operations | (27) | 197 | 164 | 628 | ||||
Income (loss) from discontinued operations, net of tax(3) | 68 | (205) | 126 | 337 | ||||
Net income (loss) | 41 | (8) | 290 | 965 | ||||
Net income attributable to noncontrolling interests, net of tax | (11) | (3) | (31) | (288) | ||||
Net income (loss) attributable to Huntsman Corporation | $ 30 | $ (11) | $ 259 | $ 677 | ||||
Adjusted EBITDA(1) | $ 215 | $ 308 | $ 664 | $ 954 | ||||
Adjusted net income(1) | $ 95 | $ 170 | $ 288 | $ 552 | ||||
Basic income (loss) per share | $ 0.13 | $ (0.05) | $ 1.12 | $ 2.83 | ||||
Diluted income (loss) per share | $ 0.13 | $ (0.05) | $ 1.12 | $ 2.79 | ||||
Adjusted diluted income per share(1) | $ 0.41 | $ 0.71 | $ 1.24 | $ 2.27 | ||||
Common share information: | ||||||||
Basic weighted average shares | 227 | 238 | 230 | 239 | ||||
Diluted weighted average shares | 227 | 241 | 232 | 243 | ||||
See end of press release for footnote explanations |
Table 2 – Results of Operations by Segment | ||||||||||||
Three months ended | Nine months ended | |||||||||||
September 30, | Better / | September 30, | Better / | |||||||||
In millions | 2019 | 2018 | (Worse) | 2019 | 2018 | (Worse) | ||||||
Segment Revenues: | ||||||||||||
Polyurethanes | $ 93 | $ 1,126 | (12%) | $ 2,931 | $3,268 | (10%) | ||||||
Performance Products | 281 | 329 | (15%) | 880 | 991 | (11%) | ||||||
Advanced Materials | 256 | 279 | (8%) | 803 | 850 | (6%) | ||||||
Textile Effects | 179 | 204 | (12%) | 583 | 631 | (8%) | ||||||
Corporate and Eliminations | (22) | 30 | n/m | (57) | 43 | n/m | ||||||
Total | $ 1,687 | $ 1,968 | (14%) | $ 5,140 | $5,783 | (11%) | ||||||
Segment Adjusted EBITDA(1): | ||||||||||||
Polyurethanes | $ 146 | $ 218 | (33%) | $ 426 | $ 668 | (36%) | ||||||
Performance Products | 38 | 54 | (30%) | 125 | 158 | (21%) | ||||||
Advanced Materials | 51 | 56 | (9%) | 159 | 177 | (10%) | ||||||
Textile Effects | 16 | 25 | (36%) | 66 | 80 | (18%) | ||||||
Corporate, LIFO and other | (36) | (45) | 20% | (112) | (129) | 13% | ||||||
Total | $ 215 | $ 308 | (30%) | $ 664 | $ 954 | (30%) | ||||||
n/m = not meaningful |
See end of press release for footnote explanations |
Table 3 – Factors Impacting Sales Revenue | ||||||||||
Three months ended | ||||||||||
September 30, 2019 vs. 2018 | ||||||||||
Average Selling Price(a) | ||||||||||
Local | Exchange | Sales Mix | Sales | |||||||
Currency | Rate | & Other | Volume(b) | Total | ||||||
Polyurethanes | (13%) | (2%) | 2% | 1% | (12%) | |||||
Performance Products | (5%) | (2%) | 3% | (11%) | (15%) | |||||
Advanced Materials | 1% | (2%) | 4% | (11%) | (8%) | |||||
Textile Effects | (2%) | (1%) | (2%) | (7%) | (12%) | |||||
Total Company | (15%) | (2%) | 7% | (4%) | (14%) | |||||
Nine months ended | ||||||||||
September 30, 2019 vs. 2018 | ||||||||||
Average Selling Price(a) | ||||||||||
Local | Exchange | Sales Mix | Sales | |||||||
Currency | Rate | & Other | Volume(b) | Total | ||||||
Polyurethanes | (13%) | (3%) | 1% | 5% | (10%) | |||||
Performance Products | (1%) | (3%) | 2% | (9%) | (11%) | |||||
Advanced Materials | 2% | (4%) | 2% | (6%) | (6%) | |||||
Textile Effects | 7% | (3%) | (2%) | (10%) | (8%) | |||||
Total Company | 0% | (3%) | (7%) | (1%) | (11%) | |||||
(a) | Excludes sales from tolling arrangements, by-products and raw materials. |
(b) | Excludes sales from by-products and raw materials. |
Table 4 – Reconciliation of U.S. GAAP to Non-GAAP Measures | ||||||||||||||||
Income Tax | Diluted Income | |||||||||||||||
EBITDA | (Expense) Benefit | Net Income | Per Share | |||||||||||||
Three months ended | Three months ended | Three months ended | Three months ended | |||||||||||||
September 30, | September 30, | September 30, | September 30, | |||||||||||||
In millions, except per share amounts | 2019 | 2018 | 2019 | 2018 | 2019 | 2018 | 2019 | 2018 | ||||||||
Net income (loss) | $ 41 | $ (8) | $ 41 | $ (8) | $ 0.18 | $ (0.03) | ||||||||||
Net income attributable to noncontrolling interests | (11) | (3) | (11) | (3) | (0.05) | (0.01) | ||||||||||
Net income (loss) attributable to Huntsman Corporation | 30 | (11) | 30 | (11) | 0.13 | (0.05) | ||||||||||
Interest expense from continuing operations | 27 | 30 | ||||||||||||||
Interest expense from discontinued operations(3) | - | 10 | ||||||||||||||
Income tax expense from continuing operations | 30 | 16 | $ (30) | $ (16) | ||||||||||||
Income tax expense (benefit) from discontinued operations(3) | 25 | (41) | ||||||||||||||
Depreciation and amortization from continuing operations | 65 | 62 | ||||||||||||||
Depreciation and amortization from discontinued operations(3) | 13 | 23 | ||||||||||||||
Business acquisition and integration expenses | 3 | 2 | (1) | - | 2 | 2 | 0.01 | 0.01 | ||||||||
EBITDA / (Income) loss from discontinued operations, net of tax(3) | (106) | 213 | n/a | n/a | (68) | 205 | (0.30) | 0.85 | ||||||||
Noncontrolling interest of discontinued operations(1)(3) | - | (21) | - | - | - | (21) | - | (0.09) | ||||||||
Release of significant income tax valuation allowances(a) | - | - | - | (24) | - | (24) | - | (0.10) | ||||||||
Merger costs, net of tax | - | 1 | - | - | - | 1 | - | 0.00 | ||||||||
Fair value adjustments to Venator Investment(b) | 148 | - | - | - | 148 | - | 0.65 | - | ||||||||
Certain legal settlements and related expenses | 1 | 1 | - | (1) | 1 | - | 0.00 | - | ||||||||
Certain non-recurring information technology project implementation costs | 1 | - | - | - | 1 | - | 0.00 | - | ||||||||
Amortization of pension and postretirement actuarial losses | 16 | 18 | (5) | (4) | 11 | 14 | 0.05 | 0.06 | ||||||||
Restructuring, impairment and plant closing and transition (credits) costs | (43) | 5 | 9 | (1) | (34) | 4 | (0.15) | 0.02 | ||||||||
Net plant incident costs | 5 | - | (1) | - | 4 | - | 0.02 | - | ||||||||
Adjusted(1) | $ 215 | $ 308 | $ (28) | $ (46) | $ 95 | $ 170 | $ 0.41 | $ 0.71 | ||||||||
Adjusted income tax expense(1) | $ 28 | $ 46 | ||||||||||||||
Net income attributable to noncontrolling interests, net of tax | 11 | 3 | ||||||||||||||
Noncontrolling interest of discontinued operations(1)(3) | - | 21 | ||||||||||||||
Adjusted pre-tax income(1) | $ 134 | $ 240 | ||||||||||||||
Adjusted effective tax rate(4) | 21% | 19% | ||||||||||||||
Effective tax rate | n/m | 8% | ||||||||||||||
Income Tax | Diluted Income | |||||||||||||||
EBITDA | (Expense) Benefit | Net Income | Per Share | |||||||||||||
Nine months ended | Nine months ended | Nine months ended | Nine months ended | |||||||||||||
September 30, | September 30, | September 30, | September 30, | |||||||||||||
In millions, except per share amounts | 2019 | 2018 | 2019 | 2018 | 2019 | 2018 | 2019 | 2018 | ||||||||
Net income | $ 290 | $ 965 | $ 290 | $ 965 | $ 1.25 | $ 3.97 | ||||||||||
Net income attributable to noncontrolling interests | (31) | (288) | (31) | (288) | (0.13) | (1.19) | ||||||||||
Net income attributable to Huntsman Corporation | 259 | 677 | 259 | 677 | 1.12 | 2.79 | ||||||||||
Interest expense from continuing operations | 86 | 86 | ||||||||||||||
Interest expense from discontinued operations(3) | - | 30 | ||||||||||||||
Income tax expense from continuing operations | 113 | 41 | $ (113) | $ (41) | ||||||||||||
Income tax expense from discontinued operations(3) | 44 | 95 | ||||||||||||||
Depreciation and amortization from continuing operations | 201 | 187 | ||||||||||||||
Depreciation and amortization from discontinued operations(3) | 59 | 63 | ||||||||||||||
Business acquisition and integration expenses | 4 | 10 | (1) | (2) | 3 | 8 | 0.01 | 0.03 | ||||||||
EBITDA / (Income) loss from discontinued operations, net of tax(3) | (229) | (525) | n/a | n/a | (126) | (337) | (0.54) | (1.39) | ||||||||
Noncontrolling interest of discontinued operations(1)(3) | - | 222 | - | - | - | 222 | - | 0.91 | ||||||||
U.S. tax reform impact on tax expense | - | - | 3 | 49 | 3 | 49 | 0.01 | 0.20 | ||||||||
Release of significant income tax valuation allowances(a) | - | - | - | (119) | - | (119) | - | (0.49) | ||||||||
Impact of Switzerland income tax rate change | - | - | 32 | - | 32 | - | 0.14 | - | ||||||||
Merger costs, net of tax | - | 2 | - | - | - | 2 | - | 0.01 | ||||||||
Fair value adjustments to Venator Investment(b) | 90 | - | - | - | 90 | - | 0.39 | - | ||||||||
Loss on early extinguishment of debt | 23 | 3 | (5) | (1) | 18 | 2 | 0.08 | 0.01 | ||||||||
Certain legal settlements and related expenses | 1 | 4 | - | (1) | 1 | 3 | 0.00 | 0.01 | ||||||||
Certain non-recurring information technology project implementation costs | 1 | - | - | - | 1 | - | 0.00 | - | ||||||||
Amortization of pension and postretirement actuarial losses | 49 | 50 | (13) | (12) | 36 | 38 | 0.16 | 0.16 | ||||||||
Restructuring, impairment and plant closing and transition (credits) costs | (42) | 9 | 9 | (2) | (33) | 7 | (0.14) | 0.03 | ||||||||
Net plant incident costs | 5 | - | (1) | - | 4 | - | 0.02 | - | ||||||||
Adjusted(1) | $ 664 | $ 954 | $ (89) | $ (129) | $ 288 | $ 552 | $ 1.24 | $ 2.27 | ||||||||
Adjusted income tax expense(1) | $ 89 | $ 129 | ||||||||||||||
Net income attributable to noncontrolling interests, net of tax | 31 | 288 | ||||||||||||||
Noncontrolling interest of discontinued operations(1)(3) | - | (222) | ||||||||||||||
Adjusted pre-tax income(1) | $ 408 | $ 747 | ||||||||||||||
Adjusted effective tax rate(4) | 22% | 17% | ||||||||||||||
Effective tax rate | 41% | 6% | ||||||||||||||
(a) | During the nine months ended September 30, 2018, we released $119 million of valuation allowances in Switzerland, the U.K., and Luxembourg. We eliminated the effect of this significant change in tax valuation allowances from our presentation of adjusted net income to allow investors to better compare our ongoing financial performance from period to period. We do not adjust for insignificant changes in tax valuation allowances because we do not believe this provides more meaningful information than is provided under GAAP. |
(b) | Represents the changes in market value in Huntsman's remaining interesting in Venator. |
n/m = not meaningful; n/a = not applicable | |
See end of press release for footnote explanations | |
Table 5 – Selected Balance Sheet Items | ||||
September 30, | December 31, | |||
In millions | 2019 | 2018 | ||
Cash | $ 418 | $ 340 | ||
Accounts and notes receivable, net | 1,090 | 1,183 | ||
Inventories | 961 | 1,000 | ||
Other current assets | 152 | 203 | ||
Current assets held for sale | 1,108 | 232 | ||
Property, plant and equipment, net | 2,324 | 2,353 | ||
Other noncurrent assets | 2,062 | 1,765 | ||
Noncurrent assets held for sale | - | 877 | ||
Total assets | $ 8,115 | $ 7,953 | ||
Accounts payable | $ 744 | $ 793 | ||
Other current liabilities | 443 | 497 | ||
Current portion of debt | 132 | 96 | ||
Current liabilities held for sale | 586 | 225 | ||
Long-term debt | 2,204 | 2,224 | ||
Other noncurrent liabilities | 1,368 | 1,086 | ||
Noncurrent liabilities held for sale | - | 283 | ||
Huntsman Corporation stockholders' equity | 2,482 | 2,520 | ||
Noncontrolling interests in subsidiaries | 156 | 229 | ||
Total liabilities and equity | $ 8,115 | $ 7,953 | ||
Table 6 – Outstanding Debt | ||||
September 30, | December 31, | |||
In millions | 2019 | 2018 | ||
Debt: | ||||
Revolving credit facility | $ - | $ 50 | ||
Accounts receivable programs | 197 | 252 | ||
Term loan | 101 | - | ||
Senior notes | 1,947 | 1,892 | ||
Variable interest entities | 72 | 86 | ||
Other debt | 19 | 40 | ||
Total debt - excluding affiliates | 2,336 | 2,320 | ||
Total cash | 418 | 340 | ||
Net debt - excluding affiliates(5) | $ 1,918 | $ 1,980 | ||
See end of press release for footnote explanations |
Table 7 – Summarized Statement of Cash Flows | ||||||||
Three months ended | Nine months ended | |||||||
September 30, | September 30, | |||||||
In millions | 2019 | 2018 | 2019 | 2018 | ||||
Total cash at beginning of period(a) | $ 449 | $ 763 | $ 340 | $ 719 | ||||
Net cash provided by operating activities - continuing operations | 257 | 248 | 434 | 446 | ||||
Net cash provided by operating activities - discontinued operations(3) | 126 | 46 | 222 | 488 | ||||
Net cash used in investing activities - continuing operations | (11) | (54) | (111) | (514) | ||||
Net cash used in investing activities - discontinued operations(3) | (13) | (116) | (31) | (297) | ||||
Net cash used in financing activities | (383) | (181) | (431) | (117) | ||||
Effect of exchange rate changes on cash | (7) | (9) | (5) | (28) | ||||
Total cash at end of period(a) | $ 418 | $ 697 | $ 418 | $ 697 | ||||
Supplemental cash flow information - continuing operations: | ||||||||
Cash paid for interest | $ (12) | $ (14) | $ (65) | $ (73) | ||||
Cash paid for income taxes | (26) | (39) | (88) | (115) | ||||
Cash paid for capital expenditures | (63) | (59) | (181) | (148) | ||||
Depreciation and amortization | 65 | 62 | 201 | 187 | ||||
Changes in primary working capital: | ||||||||
Accounts and notes receivable | 116 | (30) | 69 | (135) | ||||
Inventories | (5) | (69) | 19 | (158) | ||||
Accounts payable | (4) | 32 | (16) | 53 | ||||
Total cash received from (used in) primary working capital | $ 107 | $ (67) | $ 72 | $ (240) | ||||
Free cash flow - continuing operations(2): | ||||||||
Net cash provided by operating activities | $ 257 | $ 248 | $ 434 | $ 446 | ||||
Capital expenditures | (63) | (59) | (181) | (148) | ||||
All other investing activities, excluding acquisition and disposition activities(b) | 3 | 1 | 5 | - | ||||
Non-recurring merger costs(c) | - | 1 | - | 2 | ||||
Free cash flow - continuing operations | $ 197 | $ 191 | $ 258 | $ 300 | ||||
Adjusted EBITDA | $ 215 | $ 308 | $ 664 | $ 954 | ||||
Capital expenditures | (63) | (59) | (181) | (148) | ||||
Capital reimbursements | 2 | 1 | 9 | 4 | ||||
Interest | (12) | (14) | (65) | (73) | ||||
Income taxes | (26) | (39) | (88) | (115) | ||||
Primary working capital change | 107 | (67) | 72 | (240) | ||||
Restructuring | (3) | (2) | (14) | (7) | ||||
Pensions | (37) | (36) | (91) | (94) | ||||
Maintenance & other | 14 | 99 | (48) | 19 | ||||
Free cash flow - continuing operations(2) | $ 197 | $ 191 | $ 258 | $ 300 | ||||
(a) | Includes restricted cash and cash held in discontinued operations until the Deconsolidation of Venator. |
(b) | Represents "Acquisition of business, net of cash acquired", "Cash received from purchase price adjustment for business acquired", and "Proceeds from sale of business/assets". |
(c) | Represents payments associated with one-time costs of the terminated merger of equals with Clariant. |
Footnotes | |
(1) | We use adjusted EBITDA to measure the operating performance of our business and for planning and evaluating the performance of our business segments. We provide adjusted net income because we feel it provides meaningful insight for the investment community into the performance of our business. We believe that net income (loss) is the performance measure calculated and presented in accordance with generally accepted accounting principles in the U.S. ("GAAP") that is most directly comparable to adjusted EBITDA and adjusted net income (loss). Additional information with respect to our use of each of these financial measures follows: |
Adjusted EBITDA, adjusted net income (loss) and adjusted diluted income (loss) per share, as used herein, are not necessarily comparable to other similarly titled measures of other companies. | |
Adjusted EBITDA is computed by eliminating the following from net income (loss): (a) net income attributable to noncontrolling interests, net of tax; (b) interest; (c) income taxes; (d) depreciation and amortization (e) amortization of pension and postretirement actuarial losses (gains); (f) restructuring, impairment and plant closing costs (credits); and further adjusted for certain other items set forth in reconciliation of adjusted EBITDA to net income (loss) in Table 4 above. | |
Adjusted net income (loss) and adjusted diluted income (loss) per share are computed by eliminating the after tax impact of the following items from net income (loss): (a) net income attributable to noncontrolling interest; (b) amortization of pension and postretirement actuarial losses (gains); (c) restructuring, impairment and plant closing costs (credits); and further adjusted for certain other items set forth in reconciliation of adjusted EBITDA to net income (loss) in Table 4 above. The income tax impacts, if any, of each adjusting item represent a ratable allocation of the total difference between the unadjusted tax expense and the total adjusted tax expense, computed without consideration of any adjusting items using a with and without approach. | |
We do not provide reconciliations for adjusted EBITDA, adjusted net income (loss) or adjusted diluted income (loss) per share on a forward-looking basis because we are unable to provide a meaningful or accurate calculation or estimation of reconciling items and the information is not available without unreasonable effort. This is due to the inherent difficulty of forecasting the timing and amount of certain items, such as, but not limited to, (a) business acquisition and integration expenses and purchase accounting adjustments, (b) merger costs, and (c) certain legal and other settlements and related costs. Each of such adjustments has not yet occurred, are out of our control and/or cannot be reasonably predicted. For the same reasons, we are unable to address the probable significance of the unavailable information. | |
(2) | Management internally uses a free cash flow measure: (a) to evaluate the Company's liquidity, (b) to evaluate strategic investments, (c) to plan stock buyback and dividend levels and (d) to evaluate the Company's ability to incur and service debt. Free cash flow is not a defined term under U.S. GAAP, and it should not be inferred that the entire free cash flow amount is available for discretionary expenditures. The Company defines free cash flow as cash flow provided by operating activities less cash flow used in investing activities, excluding acquisition/disposition activities and non-recurring separation costs. Free cash flow is typically derived directly from the Company's condensed consolidated statement of cash flows; however, it may be adjusted for items that affect comparability between periods. |
(3) | During the third quarter 2019, we entered into an agreement to sell our Chemical Intermediates and Surfactants businesses, which are now reported as held for sale. In the third quarter of 2017 we separated our Pigments and Additives division through an Initial Public Offering of Venator Materials PLC. Additionally, during the first quarter 2010 we closed our Australian styrenics operations. Results from these associated businesses are treated as discontinued operations. |
(4) | We believe adjusted effective tax rate provides improved comparability between periods through the exclusion of certain items that management believes are not indicative of the businesses' operational profitability and that may obscure underlying business results and trends. In our view, effective tax rate is the performance measure calculated and presented in accordance with U.S. GAAP that is most directly comparable to adjusted effective tax rate. |
The reconciliation of historical adjusted effective tax rate and effective tax rate is set forth in Table 4 above. We do not provide reconciliations for adjusted effective tax rate on a forward-looking basis because we are unable to provide a meaningful or accurate calculation or estimation of reconciling items and the information is not available without unreasonable effort. This is due to the inherent difficulty of forecasting the timing and amount of certain items, such as, but not limited to, (a) business acquisition and integration expenses, (b) merger costs, and (c) certain legal and other settlements and related costs. Each of such adjustments has not yet occurred, are out of our control and/or cannot be reasonably predicted. For the same reasons, we are unable to address the probable significance of the unavailable information. | |
(5) | Net debt is a measure we use to monitor how much debt we have after taking into account our total cash. We use it as an indicator of our overall financial position, and calculate it by taking our total debt, including the current portion, and subtracting total cash. |
About Huntsman:
Huntsman Corporation is a publicly traded global manufacturer and marketer of differentiated and specialty chemicals with 2018 revenues more than $9 billion. Our chemical products number in the thousands and are sold worldwide to manufacturers serving a broad and diverse range of consumer and industrial end markets. We operate more than 75 manufacturing, R&D and operations facilities in approximately 30 countries and employ approximately 10,000 associates within our four distinct business divisions. For more information about Huntsman, please visit the company's website at www.huntsman.com.
Social Media:
Twitter: www.twitter.com/Huntsman_Corp
Facebook: www.facebook.com/huntsmancorp
LinkedIn: www.linkedin.com/company/huntsman
Forward-Looking Statements:
Certain information in this release constitutes forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. These statements are based on management's current beliefs and expectations. The forward-looking statements in this release are subject to uncertainty and changes in circumstances and involve risks and uncertainties that may affect the company's operations, markets, products, services, prices and other factors as discussed under the caption "Risk Factors" in the Huntsman companies' filings with the U.S. Securities and Exchange Commission. Significant risks and uncertainties may relate to, but are not limited to, volatile global economic conditions, cyclical and volatile product markets, disruptions in production at manufacturing facilities, reorganization or restructuring of Huntsman's operations, including any delay of, or other negative developments affecting the ability to implement cost reductions, timing of proposed transactions, and manufacturing optimization improvements in Huntsman businesses and realize anticipated cost savings, and other financial, economic, competitive, environmental, political, legal, regulatory and technological factors. The company assumes no obligation to provide revisions to any forward-looking statements should circumstances change, except as otherwise required by applicable laws.
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SOURCE Huntsman Corporation
Article Date
10/25/20199/30/2019 - Huntsman Completes the Purchase of the Remaining 50% Interest in the Sasol-Huntsman Joint Venture
Huntsman Completes the Purchase of the Remaining 50% Interest in the Sasol-Huntsman Joint Venture
Source: PR Newswire
THE WOODLANDS, Texas, Sept. 30, 2019 /PRNewswire/ -- Huntsman Corporation (NYSE: HUN) announced today that it has completed the previously announced acquisition of the remaining 50% interest in the Sasol-Huntsman maleic anhydride joint venture from Sasol. Huntsman now owns 100% of the entity with manufacturing assets located in Moers, Germany, and the capacity to produce 230 million pounds annually of maleic anhydride. Huntsman paid Sasol approximately $100 million, which includes acquired cash net of any debt and is subject to customary post-closing adjustments.
Peter Huntsman, Chairman, President and CEO, commented:
"Closing on the acquisition of the remaining interest in our maleic German joint venture provides us with the flexibility to fully integrate our European business into our worldwide footprint, thereby better servicing our global customer base in key markets such as construction and coatings. This fits well into our core strategy to expand our portfolio of businesses with higher, more stable margins and strong free cash flow."
Monte Edlund, President of Huntsman's Performance Products division, added:
"We are very pleased and excited to assume full control of this excellent business and asset. By fully integrating the Moers, Germany, plant with our existing maleic anhydride business, we will be able to improve our service and offering into key markets such as resins in construction, watercraft, transportation vehicles, and sporting goods, as well as into applications such as food acidulants, oilfield chemicals, and engine oil additives."
About Huntsman:
Huntsman Corporation is a publicly traded global manufacturer and marketer of differentiated and specialty chemicals with 2018 revenues more than $9 billion. Our chemical products number in the thousands and are sold worldwide to manufacturers serving a broad and diverse range of consumer and industrial end markets. We operate more than 75 manufacturing, R&D and operations facilities in approximately 30 countries and employ approximately 10,000 associates within our four distinct business divisions. For more information about Huntsman, please visit the company's website at www.huntsman.com.
Social Media:
Twitter: www.twitter.com/Huntsman_Corp
Facebook: www.facebook.com/huntsmancorp
LinkedIn: www.linkedin.com/company/huntsman
Forward-Looking Statements:
Certain information in this release constitutes forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. These statements are based on management's current beliefs and expectations. The forward-looking statements in this release are subject to uncertainty and changes in circumstances and involve risks and uncertainties that may affect the company's operations, markets, products, services, prices and other factors as discussed under the caption "Risk Factors" in the Huntsman companies' filings with the U.S. Securities and Exchange Commission. Significant risks and uncertainties may relate to, but are not limited to, volatile global economic conditions, cyclical and volatile product markets, disruptions in production at manufacturing facilities, reorganization or restructuring of Huntsman's operations, including any delay of, or other negative developments affecting the ability to implement cost reductions and manufacturing optimization improvements in Huntsman businesses and realize anticipated cost savings, and other financial, economic, competitive, environmental, political, legal, regulatory and technological factors. The company assumes no obligation to provide revisions to any forward-looking statements should circumstances change, except as otherwise required by applicable laws.
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SOURCE Huntsman Corporation
Article Date
9/30/2019Huntsman to Discuss Third Quarter 2019 Results on October 25, 2019
Source: PR Newswire
THE WOODLANDS, Texas, Sept. 24, 2019 /PRNewswire/ -- Huntsman Corporation (NYSE: HUN) will hold a conference call on Friday, October 25, 2019, at 10:00 a.m. ET to discuss its third quarter 2019 financial results, which will be released at approximately 6:00 a.m. ET that day.
Webcast link:
https://78449.themediaframe.com/dataconf/productusers/hun/mediaframe/32469/indexl.html
Participant dial-in numbers: | |
Domestic callers: | (877) 402-8037 |
International callers: | (201) 378-4913 |
The conference call will be accompanied by presentation slides that will be accessible via the webcast link and Huntsman's investor relations website, ir.huntsman.com. Upon conclusion of the call, the webcast replay will be accessible via Huntsman's website.
About Huntsman:
Huntsman Corporation is a publicly traded global manufacturer and marketer of differentiated and specialty chemicals with 2018 revenues more than $9 billion. Our chemical products number in the thousands and are sold worldwide to manufacturers serving a broad and diverse range of consumer and industrial end markets. We operate more than 75 manufacturing, R&D and operations facilities in approximately 30 countries and employ approximately 10,000 associates within our four distinct business divisions. For more information about Huntsman, please visit the company's website at www.huntsman.com.
Social Media:
Twitter: www.twitter.com/Huntsman_Corp
Facebook: www.facebook.com/huntsmancorp
LinkedIn: www.linkedin.com/company/huntsman
Forward-Looking Statements:
Certain information in this release constitutes forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. These statements are based on management's current beliefs and expectations. The forward-looking statements in this release are subject to uncertainty and changes in circumstances and involve risks and uncertainties that may affect the company's operations, markets, products, services, prices and other factors as discussed under the caption "Risk Factors" in the Huntsman companies' filings with the U.S. Securities and Exchange Commission. Significant risks and uncertainties may relate to, but are not limited to, volatile global economic conditions, cyclical and volatile product markets, disruptions in production at manufacturing facilities, reorganization or restructuring of Huntsman's operations, including any delay of, or other negative developments affecting the ability to implement cost reductions and manufacturing optimization improvements in Huntsman businesses and realize anticipated cost savings, and other financial, economic, competitive, environmental, political, legal, regulatory and technological factors. The company assumes no obligation to provide revisions to any forward-looking statements should circumstances change, except as otherwise required by applicable laws.
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SOURCE Huntsman Corporation
Article Date
9/24/2019Fire at Huntsman Polyurethanes Systems House in Turkey
Source: PR Newswire
ISTANBUL, Turkey, Sept. 18, 2019 /PRNewswire/ -- This morning at approximately 11.14 a.m. local time, a fire started in a non-manufacturing area at the Huntsman EMA systems house in the Leather Organized Industrial Zone, Istanbul, Turkey. All employees and contractors are safe and accounted for and monitoring for any offsite environmental impacts is underway.
The fire began in an outside area and spread to the main factory and an adjacent commercial property. Both sites have been evacuated and the local fire service is currently working to control the blaze. Local media has reported that two firefighters were injured responding to the fire.
"Our first priority is the wellbeing of the fire crews, and of our neighbors and employees, who have been sent home for their safety," said Steen Weien Hansen, Vice President Europe, Africa, India and Middle East.
The systems house produces polyols and blends polyols that are used in the manufacture of polyurethanes products. Customers will be supplied from other Huntsman facilities, as required. Huntsman carries adequate insurance coverage and does not expect the financial impact of the fire to be material.
About Huntsman:
Huntsman Corporation (NYSE: HUN) is a publicly traded global manufacturer and marketer of differentiated and specialty chemicals with 2018 revenues more than $9 billion. Our chemical products number in the thousands and are sold worldwide to manufacturers serving a broad and diverse range of consumer and industrial end markets. We operate more than 75 manufacturing, R&D and operations facilities in approximately 30 countries and employ approximately 10,000 associates within our four distinct business divisions. For more information about Huntsman, please visit the company's website at www.huntsman.com.
Social Media:
Twitter: www.twitter.com/Huntsman_Corp
Facebook: www.facebook.com/huntsmancorp
LinkedIn: www.linkedin.com/company/huntsman
Forward-Looking Statements:
Certain information in this release constitutes forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. These statements are based on management's current beliefs and expectations. The forward-looking statements in this release are subject to uncertainty and changes in circumstances and involve risks and uncertainties that may affect the company's operations, markets, products, services, prices and other factors as discussed under the caption "Risk Factors" in the Huntsman companies' filings with the U.S. Securities and Exchange Commission. Significant risks and uncertainties may relate to, but are not limited to, volatile global economic conditions, cyclical and volatile product markets, disruptions in production at manufacturing facilities, reorganization or restructuring of Huntsman's operations, including any delay of, or other negative developments affecting the ability to implement cost reductions and manufacturing optimization improvements in Huntsman businesses and realize anticipated cost savings, and other financial, economic, competitive, environmental, political, legal, regulatory and technological factors. The company assumes no obligation to provide revisions to any forward-looking statements should circumstances change, except as otherwise required by applicable laws.
View original content to download multimedia:http://www.prnewswire.com/news-releases/fire-at-huntsman-polyurethanes-systems-house-in-turkey-300920829.html
SOURCE Huntsman Corporation
Article Date
9/18/2019Huntsman Opens New Polyurethanes Systems House In Dubai
Source: PR Newswire
DUBAI, United Arab Emirates, Sept. 10, 2019 /PRNewswire/ -- Huntsman Corporation (NYSE: HUN) today announced the opening of its new polyurethanes systems house in Dubai. Situated within the Jebel Ali Free Trade Zone (JAFZA), the purpose-built facility strengthens Huntsman's downstream capabilities in the Middle East and North Africa - increasing its capacity to produce polyurethane systems and polyester polyols for customers across the region.
The new systems house comprises a production area equipped with state-of-the-art manufacturing equipment plus blenders, reactors, filling stations, control room, offices and quality control laboratories. The facility will manufacture polyurethane foams for construction, insulation, appliances, bedding and furniture applications. It will also produce systems for the footwear industry; and prepolymers for coatings, adhesives, sealants and elastomers applications.
The site will also serve as the regional base for Huntsman's Demilec spray polyurethane foam (SPF) business. Demilec is a leading global manufacturer of SPF insulation used in commercial and residential properties to improve energy efficiency. The new systems house is equipped with a dedicated spray foam application and training center and will provide customers in the region with local technical and training assistance, fully supported by the global Demilec organization.
Tony Hankins, President of Huntsman's Polyurethanes division said: "This investment is the latest step in the expansion of our worldwide systems house capabilities, which underpin our downstream growth strategy. Constructing the new systems house at JAFZA brings us closer to our customers and gives us everything we need to expand our business in the Middle East and North Africa, including manufacturing competitiveness, infrastructure links and speed of response."
Steen Weien Hansen, Vice President for Europe, Africa, Middle East and India, further commented: "With a fast-growing population that is 90% urbanized, the UAE is a big importer of polyurethane for use in construction and building projects and the production of consumer goods. With the much-awaited EXPO 2020 Dubai just a year away, the booming construction sector will increase the import of polyurethane in the market directly contributing to the growth of Huntsman's business in the UAE."
Huntsman's other downstream businesses in the Middle East include Huntsman EMA - a systems house in Turkey; and Huntsman Arab Polyols Company, in Saudi Arabia - a joint venture with the BCI Group of Companies, in which Huntsman is the majority shareholder.
About Huntsman:
Huntsman Corporation is a publicly traded global manufacturer and marketer of differentiated and specialty chemicals with 2018 revenues more than $9 billion. Our chemical products number in the thousands and are sold worldwide to manufacturers serving a broad and diverse range of consumer and industrial end markets. We operate more than 75 manufacturing, R&D and operations facilities in approximately 30 countries and employ approximately 10,000 associates within our four distinct business divisions. For more information about Huntsman, please visit the company's website at www.huntsman.com.
Social Media:
Twitter: www.twitter.com/Huntsman_Corp
Facebook: www.facebook.com/huntsmancorp
LinkedIn: www.linkedin.com/company/huntsman
Forward-Looking Statements:
Certain information in this release constitutes forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. These statements are based on management's current beliefs and expectations. The forward-looking statements in this release are subject to uncertainty and changes in circumstances and involve risks and uncertainties that may affect the company's operations, markets, products, services, prices and other factors as discussed under the caption "Risk Factors" in the Huntsman companies' filings with the U.S. Securities and Exchange Commission. Significant risks and uncertainties may relate to, but are not limited to, volatile global economic conditions, cyclical and volatile product markets, disruptions in production at manufacturing facilities, reorganization or restructuring of Huntsman's operations, including any delay of, or other negative developments affecting the ability to implement cost reductions and manufacturing optimization improvements in Huntsman businesses and realize anticipated cost savings, and other financial, economic, competitive, environmental, political, legal, regulatory and technological factors. The company assumes no obligation to provide revisions to any forward-looking statements should circumstances change, except as otherwise required by applicable laws.
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SOURCE Huntsman Corporation
Article Date
9/10/2019Huntsman Announces Third Quarter 2019 Common Dividend
Source: PR Newswire
THE WOODLANDS, Texas, Aug. 8, 2019 /PRNewswire/ -- Huntsman Corporation (NYSE: HUN) today announced that its board of directors has declared a $0.1625 per share cash dividend on its common stock. The dividend is payable on September 30, 2019 to stockholders of record as of September 13, 2019.
About Huntsman:
Huntsman Corporation is a publicly traded global manufacturer and marketer of differentiated and specialty chemicals with 2018 revenues of more than $9 billion. Our chemical products number in the thousands and are sold worldwide to manufacturers serving a broad and diverse range of consumer and industrial end markets. We operate more than 75 manufacturing, R&D and operations facilities in approximately 30 countries and employ approximately 10,000 associates within our four distinct business divisions. For more information about Huntsman, please visit the company's website at www.huntsman.com.
Social Media:
Twitter: www.twitter.com/Huntsman_Corp
Facebook: www.facebook.com/huntsmancorp
LinkedIn: www.linkedin.com/company/huntsman
Forward-Looking Statements:
Certain information in this release constitutes forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. These statements are based on management's current beliefs and expectations. The forward-looking statements in this release are subject to uncertainty and changes in circumstances and involve risks and uncertainties that may affect the company's operations, markets, products, services, prices and other factors as discussed under the caption "Risk Factors" in the Huntsman companies' filings with the U.S. Securities and Exchange Commission. Significant risks and uncertainties may relate to, but are not limited to, volatile global economic conditions, cyclical and volatile product markets, disruptions in production at manufacturing facilities, reorganization or restructuring of Huntsman's operations, including any delay of, or other negative developments affecting the ability to implement cost reductions and manufacturing optimization improvements in Huntsman businesses and realize anticipated cost savings, and other financial, economic, competitive, environmental, political, legal, regulatory and technological factors. The company assumes no obligation to provide revisions to any forward-looking statements should circumstances change, except as otherwise required by applicable laws.
View original content to download multimedia:http://www.prnewswire.com/news-releases/huntsman-announces-third-quarter-2019-common-dividend-300899066.html
SOURCE Huntsman Corporation
Article Date
8/8/2019Huntsman Agrees to Sell its Chemical Intermediates and Surfactants Businesses to Indorama Ventures for $2.1 Billion
Source: PR Newswire
THE WOODLANDS, Texas, Aug. 7, 2019 /PRNewswire/ -- Huntsman Corporation (NYSE: HUN) announced today it has entered into a definitive agreement to sell its chemical intermediates businesses, which includes PO/MTBE, and its surfactants businesses to Indorama Ventures in a transaction valued at $2.076 billion, comprising a cash purchase price of $2.0 billion plus the transfer of up to approximately $76 million in net underfunded pension and other post-employment benefit liabilities. The $2.076 billion transaction value represents an LTM adjusted EBITDA multiple of approximately 8.0 times, which includes retained SG&A costs of about $30 million, a portion of which Huntsman expects to eliminate over time. Under the terms of the agreement, Indorama Ventures would acquire Huntsman's manufacturing facilities located in Port Neches, Texas; Dayton, Texas; Chocolate Bayou, Texas; Ankleshwar, India; and Botany, Australia. The transaction is subject to regulatory approvals and other customary closing conditions and is expected to close near year-end.
Peter Huntsman, Chairman, President and CEO commented:
"This transaction further transforms Huntsman's balance sheet and future. It accelerates our ability to expand more in areas both downstream and complementary to our portfolio. This is another milestone in our stated strategy to focus more on our downstream and specialty businesses where we will generate more stable margins and consistent, strong free cash flow. We are committed to retaining our strong investment grade balance sheet, repurchasing our shares, investing in organic research and select capacity expansions and acquiring strategic assets that are accretive to our earnings and create shareholder value.
"For Indorama Ventures, they will be acquiring a strong EO/PO derivatives business with a very experienced workforce and management team. This is also a transformational opportunity for Indorama Ventures that provides them hundreds of product grades and thousands of customers. Huntsman looks forward to continuing to work with Indorama Ventures as a customer and manufacturing partner through long-term commercial arrangements, including propylene oxide supply.
"Huntsman intends to accelerate share repurchases under its existing $1 billion multi-year authorization after the close of this transaction."
Aloke Lohia, Group CEO of Indorama Ventures, commented:
"This acquisition is a momentous propellant in our journey towards our stated goal of being a global, diversified chemicals company with multiple, and related earnings streams."
BofA Merrill Lynch served as Huntsman's financial advisor and Kirkland & Ellis LLP is acting as its legal advisor.
Conference Call & Webcast Information
We will hold a conference call to discuss the agreement to sell our chemical intermediates and surfactants businesses on Thursday, August 8, 2019 at 9:00 a.m. ET.
Participant dial-in numbers: | |
Domestic callers: | (877) 402-8037 |
International callers: | (201) 378-4913 |
Webcast link: https://78449.themediaframe.com/dataconf/productusers/hun/mediaframe/31912/indexl.html
The conference call will be accompanied by presentation slides that will be accessible via the webcast link and Huntsman's investor relations website, ir.huntsman.com. Upon conclusion of the call, the webcast replay will be accessible via Huntsman's website.
Select Pro Forma Financial Information (Unaudited) | |||||||||||||||||
($ in millions) | 1Q18 | 2Q18 | 2Q18 YTD | FY18 | 1Q19 | 2Q19 | 2Q19 YTD | 2Q19 LTM | |||||||||
Segment Revenues: | |||||||||||||||||
Polyurethanes | $1,025 | $1,117 | $ 2,142 | $4,282 | $ 924 | $1,014 | $ 1,938 | $ 4,078 | |||||||||
Performance Products | 319 | 343 | 662 | 1,301 | 300 | 299 | 599 | 1,238 | |||||||||
Advanced Materials | 279 | 292 | 571 | 1,116 | 272 | 275 | 547 | 1,092 | |||||||||
Textile Effects | 200 | 227 | 427 | 824 | 189 | 215 | 404 | 801 | |||||||||
Corporate and Eliminations | 15 | (2) | 13 | 81 | (16) | (19) | (35) | 33 | |||||||||
Total | $1,838 | $1,977 | $ 3,815 | $7,604 | $1,669 | $1,784 | $ 3,453 | $ 7,242 | |||||||||
Segment Adjusted EBITDA: | |||||||||||||||||
Polyurethanes | $ 230 | $ 220 | $ 450 | $ 809 | $ 124 | $ 156 | $ 280 | $ 639 | |||||||||
Performance Products | 45 | 59 | 104 | 197 | 45 | 42 | 87 | 180 | |||||||||
Advanced Materials | 59 | 62 | 121 | 225 | 53 | 55 | 108 | 212 | |||||||||
Textile Effects | 26 | 29 | 55 | 101 | 22 | 28 | 50 | 96 | |||||||||
Corporate, LIFO and Other | (44) | (40) | (84) | (171) | (40) | (36) | (76) | (163) | |||||||||
Total | $ 316 | $ 330 | $ 646 | $1,161 | $ 204 | $ 245 | $ 449 | $ 964 | |||||||||
Adjusted EBITDA Reconciliation: | |||||||||||||||||
Net income (loss) | $ 350 | $ 623 | $ 973 | $ 650 | $ 131 | $ 118 | $ 249 | $ (74) | |||||||||
Net income attributable to noncontrolling interests | (76) | (209) | (285) | (313) | (12) | (8) | (20) | (48) | |||||||||
Net income (loss) attributable to Huntsman Corporation | $ 274 | $ 414 | $ 688 | $ 337 | $ 119 | $ 110 | $ 229 | $ (122) | |||||||||
Interest expense from continuing operations, net | 27 | 29 | 56 | 115 | 30 | 29 | 59 | 118 | |||||||||
Income tax expense (benefit) from continuing operations | 37 | (12) | 25 | 45 | 45 | 38 | 83 | 103 | |||||||||
Depreciation and amortization from continuing operations | 62 | 63 | 125 | 255 | 67 | 69 | 136 | 266 | |||||||||
Interest, income taxes, depreciation and amortization from discontinued operations | 65 | 131 | 196 | 210 | 28 | 37 | 65 | 79 | |||||||||
Acquisition and integration expenses and purchase accounting adjustments | 1 | 7 | 8 | 9 | 1 | - | 1 | 2 | |||||||||
EBITDA from discontinued operations | (226) | (512) | (738) | (171) | (51) | (72) | (123) | 444 | |||||||||
Noncontrolling interest of discontinued operations | 55 | 188 | 243 | 232 | - | - | - | (11) | |||||||||
Fair value adjustments to Venator Investment | - | - | - | 62 | (76) | 18 | (58) | 4 | |||||||||
Loss on early extinguishment of debt | - | 3 | 3 | 3 | 23 | - | 23 | 23 | |||||||||
Expenses associated with merger | - | 1 | 1 | 2 | - | - | - | 1 | |||||||||
Certain legal and other settlements and related expenses (income) | 2 | 1 | 3 | 1 | - | - | - | (2) | |||||||||
Amortization of pension and postretirement actuarial losses | 16 | 16 | 32 | 67 | 17 | 16 | 33 | 68 | |||||||||
Restructuring, impairment, plant closing and transition costs (credits) | 3 | 1 | 4 | (6) | 1 | - | 1 | (9) | |||||||||
Adjusted EBITDA | $ 316 | $ 330 | $ 646 | $1,161 | $ 204 | $ 245 | $ 449 | $ 964 | |||||||||
Note: The pro forma financials do not reflect the impact of certain supply and service agreements with the acquirer of the chemical intermediates and surfactants businesses. |
Supplemental unaudited select historical information reflects the continuing operations of Huntsman Corporation and treats the chemical intermediates and surfactants businesses as discontinued operations.
Non-GAAP Financial Measures
We use adjusted EBITDA to measure the operating performance of our business and for planning and evaluating the performance of our business segments through the exclusion of certain items that management believes are not indicative of the businesses' operational profitability and that may obscure underlying business results and trends. We provide adjusted EBITDA because we feel it provides meaningful insight for the investment community into the performance of our business. Adjusted EBITDA, as used herein, is not necessarily comparable to other similarly titled measures of other companies.
Adjusted EBITDA is computed by eliminating the following from net income (loss): (a) net income attributable to noncontrolling interests, net of tax; (b) interest; (c) income taxes; (d) depreciation and amortization (e) amortization of pension and postretirement actuarial losses (gains); (f) restructuring, impairment and plant closing costs (credits); and (g) further adjusted for certain other items set forth in the reconciliation of adjusted EBITDA to net income (loss).
About Huntsman:
Huntsman Corporation is a publicly traded global manufacturer and marketer of differentiated and specialty chemicals with 2018 revenues of more than $9 billion. Our chemical products number in the thousands and are sold worldwide to manufacturers serving a broad and diverse range of consumer and industrial end markets. We operate more than 75 manufacturing, R&D and operations facilities in approximately 30 countries and employ approximately 10,000 associates within our four distinct business divisions. For more information about Huntsman, please visit the company's website at www.huntsman.com.
Social Media:
Twitter: www.twitter.com/Huntsman_Corp
Facebook: www.facebook.com/huntsmancorp
LinkedIn: www.linkedin.com/company/huntsman
Forward-Looking Statements:
Certain information in this release constitutes forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. These statements are based on management's current beliefs and expectations. The forward-looking statements in this release are subject to uncertainty and changes in circumstances and involve risks and uncertainties that may affect the company's operations, markets, products, services, prices and other factors as discussed under the caption "Risk Factors" in the Huntsman companies' filings with the U.S. Securities and Exchange Commission. Significant risks and uncertainties may relate to, but are not limited to, volatile global economic conditions, cyclical and volatile product markets, disruptions in production at manufacturing facilities, reorganization or restructuring of Huntsman's operations, including any delay of, or other negative developments affecting the ability to implement cost reductions and manufacturing optimization improvements in Huntsman businesses and realize anticipated cost savings, and other financial, economic, competitive, environmental, political, legal, regulatory and technological factors. The company assumes no obligation to provide revisions to any forward-looking statements should circumstances change, except as otherwise required by applicable laws.
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SOURCE Huntsman Corporation
Article Date
8/7/20197/30/2019 - Huntsman Announces Second Quarter 2019 Earnings; Strong Cash Flow Generation in the Quarter
Huntsman Announces Second Quarter 2019 Earnings; Strong Cash Flow Generation in the Quarter
Source: PR Newswire
THE WOODLANDS, Texas, July 30, 2019 /PRNewswire/ --
Second Quarter Highlights
Three months ended | Six months ended | |||||||||
June 30, | June 30, | |||||||||
In millions, except per share amounts | 2019 | 2018 | 2019 | 2018 | ||||||
Revenues | $ 2,194 | $ 2,404 | $ 4,228 | $ 4,699 | ||||||
Net income | $ 118 | $ 623 | $ 249 | $ 973 | ||||||
Adjusted net income(1) | $ 146 | $ 246 | $ 254 | $ 483 | ||||||
Diluted income per share | $ 0.47 | $ 1.71 | $ 0.98 | $ 2.82 | ||||||
Adjusted diluted income per share(1) | $ 0.63 | $ 1.01 | $ 1.09 | $ 1.98 | ||||||
Adjusted EBITDA(1) | $ 318 | $ 415 | $ 575 | $ 820 | ||||||
Net cash provided by operating activities from continuing operations | $ 304 | $ 228 | $ 273 | $ 339 | ||||||
Free cash flow(2) | $ 240 | $ 174 | $ 139 | $ 230 | ||||||
See end of press release for footnote explanations | ||||||||||
Huntsman Corporation (NYSE: HUN) today reported second quarter 2019 results with revenues of $2,194 million, net income of $118 million, adjusted net income of $146 million and adjusted EBITDA of $318 million.
Peter R. Huntsman, Chairman, President and CEO, commented:
"We are pleased with the relative resilience of the margins in our core downstream portfolio. In spite of challenging economic conditions, we generated $240 million of free cash flow in the quarter and reaffirm our stated objective of generating 40% free cash flow to adjusted EBITDA. Regardless of second half economic uncertainties, we will continue to control our costs, protect our margins and focus on maintaining a strong balance sheet and cash generation. We will continue to follow a balanced approach to capital allocation between maintaining a competitive dividend, ongoing share repurchases and strategic organic and inorganic growth in our downstream portfolio."
Segment Analysis for 2Q19 Compared to 2Q18
Polyurethanes
The decrease in revenues in our Polyurethanes segment for the three months ended June 30, 2019 compared to the same period of 2018 was due to lower average MDI and MTBE selling prices, partially offset by higher MDI and MTBE sales volumes. MDI average selling prices decreased primarily due to a decline in component MDI selling prices in China and Europe. MTBE average selling prices decreased in China primarily as a result of lower pricing for high octane gasoline. MDI sales volumes increased primarily due to the start-up of our new Chinese MDI facility in 2018 and the acquisition of Demilec in the second quarter of 2018. The decrease in adjusted EBITDA was primarily due to lower MDI margins driven by lower MDI pricing and lower PO/MTBE margins in China, partially offset by higher sales volumes.
Performance Products
The decrease in revenues in our Performance Products segment for the three months ended June 30, 2019 compared to the same period of 2018 was due to lower average selling prices, partially offset by slightly higher sales volumes. Average selling prices decreased in our derivatives business, primarily due to lower raw material costs, and in our upstream intermediates business, primarily due to lower feedstock costs and weakened market conditions. The increase in sales volumes was primarily due to the impact of the planned maintenance outage at our Port Neches, Texas facility in the second quarter of 2018. The decrease in segment adjusted EBITDA was primarily due to lower average selling prices and lower margins, primarily in our upstream intermediates businesses and in certain amines.
Advanced Materials
The decrease in revenues in our Advanced Materials segment for the three months ended June 30, 2019, compared to the same period in 2018 was due to lower sales volumes and lower average selling prices. Sales volumes decreased primarily due to lower sales volumes in our power and automotive related markets, partially offset by favorable product mix effect from sales volumes in our aerospace components market. Average selling prices decreased primarily due to the impact of a stronger U.S. dollar against major international currencies, partially offset by higher local currency selling prices. Segment adjusted EBITDA decreased due to higher fixed costs and the impact of stronger US dollar against major international currencies.
Textile Effects
The decrease in revenues in our Textile Effects segment for the three months ended June 30, 2019 compared to the same period of 2018 was due to lower sales volumes, partially offset by higher average selling prices. Sales volumes decreased primarily due to lower demand resulting from market uncertainties surrounding U.S. and China trade. Average selling prices increased in response to higher raw material costs, partially offset by the impact of a stronger U.S. dollar against major international currencies. The decrease in segment adjusted EBITDA was primarily due to lower sales volumes and higher raw materials costs, partially offset by higher average selling prices.
Corporate, LIFO and other
For the three months ended June 30, 2019, adjusted EBITDA from Corporate and other for Huntsman Corporation increased by $2 million to a loss of $37 million from a loss of $39 million for the same period of 2018.
Liquidity, Capital Resources and Outstanding Debt
During the three months ended June 30, 2019, our free cash flow was $240 million compared to $174 million in the prior year period. We reconfirm our full year 2019 targeted free cash flow conversion of approximately 40%. As of June 30, 2019, we had $1,538 million of combined cash and unused borrowing capacity.
During the three months ended June 30, 2019, we spent $66 million on capital expenditures compared to $54 million in the same period of 2018. In 2019, we expect to spend between approximately $350 million to $360 million on capital expenditures.
During the three months ended June 30, 2019, we spent approximately $81 million to repurchase approximately 4.0 million shares. As of the end of the second quarter 2019, we have approximately $608 million remaining on our existing $1 billion multiyear share repurchase program.
Income Taxes
During the three months ended June 30, 2019, we recorded income tax expense of $50 million compared to $4 million during the same period in 2018. In the second quarter 2019, our adjusted effective tax rate was 25%. We expect our forward adjusted effective tax rate will be approximately 22% - 24%.
Earnings Conference Call Information
We will hold a conference call to discuss our second quarter 2019 financial results on Tuesday, July 30, 2019 at 10:00 a.m. ET.
Participant dial-in numbers:
Domestic callers: (877) 402-8037
International callers: (201) 378-4913
Webcast link: https://78449.themediaframe.com/dataconf/productusers/hun/mediaframe/31065/indexl.html
The conference call will be accompanied by presentation slides that will be accessible via the webcast link and Huntsman's investor relations website, ir.huntsman.com. Upon conclusion of the call, the webcast replay will be accessible via Huntsman's website.
Upcoming Conferences
During the third quarter 2019 a member of management is expected to present at:
Jefferies Global Industrials Conference on August 7, 2019
UBS Global Chemicals Conference on September 4, 2019
RBC Capital Markets Global Industrials Conference on September 10, 2019
A webcast of the presentation, if applicable, along with accompanying materials will be available at ir.huntsman.com.
Table 1 – Results of Operations | ||||||||
Three months ended | Six months ended | |||||||
June 30, | June 30, | |||||||
In millions, except per share amounts | 2019 | 2018 | 2019 | 2018 | ||||
Revenues | $2,194 | $2,404 | $4,228 | $ 4,699 | ||||
Cost of goods sold | 1,761 | 1,849 | 3,398 | 3,604 | ||||
Gross profit | 433 | 555 | 830 | 1,095 | ||||
Operating expenses | 230 | 254 | 481 | 496 | ||||
Restructuring, impairment and plant closing costs | - | 1 | 1 | 3 | ||||
Expenses associated with the merger | - | 1 | - | 1 | ||||
Operating income | 203 | 299 | 348 | 595 | ||||
Interest expense | (29) | (29) | (59) | (56) | ||||
Equity in income of investment in unconsolidated affiliates | 12 | 18 | 22 | 31 | ||||
Fair value adjustments to Venator investment | (18) | - | 58 | - | ||||
Loss on early extinguishment of debt | - | (3) | (23) | (3) | ||||
Other income, net | 2 | 8 | 6 | 15 | ||||
Income before income taxes | 170 | 293 | 352 | 582 | ||||
Income tax expense | (50) | (4) | (102) | (57) | ||||
Income from continuing operations | 120 | 289 | 250 | 525 | ||||
(Loss) income from discontinued operations, net of tax(3) | (2) | 334 | (1) | 448 | ||||
Net income | 118 | 623 | 249 | 973 | ||||
Net income attributable to noncontrolling interests, net of tax | (8) | (209) | (20) | (285) | ||||
Net income attributable to Huntsman Corporation | $ 110 | $ 414 | $ 229 | $ 688 | ||||
Adjusted EBITDA(1) | $ 318 | $ 415 | $ 575 | $ 820 | ||||
Adjusted net income(1) | $ 146 | $ 246 | $ 254 | $ 483 | ||||
Basic income per share | $ 0.48 | $ 1.73 | $ 0.99 | $ 2.87 | ||||
Diluted income per share | $ 0.47 | $ 1.71 | $ 0.98 | $ 2.82 | ||||
Adjusted diluted income per share(1) | $ 0.63 | $ 1.01 | $ 1.09 | $ 1.98 | ||||
Common share information: | ||||||||
Basic weighted average shares | 231 | 239 | 232 | 240 | ||||
Diluted weighted average shares | 232 | 243 | 234 | 244 | ||||
Diluted shares for adjusted diluted income per share | 232 | 243 | 234 | 244 | ||||
See end of press release for footnote explanations | ||||||||
Table 2 – Results of Operations by Segment | ||||||||||||
Three months ended | Six months ended | |||||||||||
June 30, | Better / | June 30, | Better / | |||||||||
In millions | 2019 | 2018 | (Worse) | 2019 | 2018 | (Worse) | ||||||
Segment Revenues: | ||||||||||||
Polyurethanes | $ 1,198 | $ 1,313 | (9%) | $ 2,265 | $ 2,535 | (11%) | ||||||
Performance Products | 537 | 593 | (9%) | 1,077 | 1,196 | (10%) | ||||||
Advanced Materials | 275 | 292 | (6%) | 547 | 571 | (4%) | ||||||
Textile Effects | 215 | 227 | (5%) | 404 | 427 | (5%) | ||||||
Corporate and eliminations | (31) | (21) | n/m | (65) | (30) | n/m | ||||||
Total | $ 2,194 | $ 2,404 | (9%) | $ 4,228 | $ 4,699 | (10%) | ||||||
Segment Adjusted EBITDA(1): | ||||||||||||
Polyurethanes | $ 201 | $ 269 | (25%) | $ 341 | $ 530 | (36%) | ||||||
Performance Products | 71 | 94 | (24%) | 151 | 196 | (23%) | ||||||
Advanced Materials | 55 | 62 | (11%) | 108 | 121 | (11%) | ||||||
Textile Effects | 28 | 29 | (3%) | 50 | 55 | (9%) | ||||||
Corporate, LIFO and other | (37) | (39) | 5% | (75) | (82) | 9% | ||||||
Total | $ 318 | $ 415 | (23%) | $ 575 | $ 820 | (30%) | ||||||
n/m = not meaningful | ||||||||||||
See end of press release for footnote explanations | ||||||||||||
Table 3 – Factors Impacting Sales Revenue | |||||||||||
Three months ended | |||||||||||
June 30, 2019 vs. 2018 | |||||||||||
Average Selling Price(a) | |||||||||||
Local | Exchange | Sales Mix | Sales | ||||||||
Currency | Rate | & Other | Volume(b) | Total | |||||||
Polyurethanes | (14%) | (3%) | 1% | 7% | (9%) | ||||||
Polyurethanes, adj | (14%) | (3%) | 2% | 3% | (12%) | (c) | |||||
Performance Products | (6%) | (2%) | (2%) | 1% | (9%) | ||||||
Performance Products, adj | (6%) | (2%) | (1%) | (2%) | (11%) | (d) | |||||
Advanced Materials | 3% | (4%) | (2%) | (3%) | (6%) | ||||||
Textile Effects | 11% | (4%) | (1%) | (11%) | (5%) | ||||||
Total Company | (6%) | (3%) | (3%) | 3% | (9%) | ||||||
Total Company, adj | (6%) | (3%) | (2%) | 0% | (11%) | (c)(d) | |||||
Six months ended | |||||||||||
June 30, 2019 vs. 2018 | |||||||||||
Average Selling Price(a) | |||||||||||
Local | Exchange | Sales Mix | Sales | ||||||||
Currency | Rate | & Other | Volume(b) | Total | |||||||
Polyurethanes | (14%) | (3%) | 1% | 5% | (11%) | ||||||
Polyurethanes, adj | (13%) | (3%) | 1% | 2% | (13%) | (c) | |||||
Performance Products | (6%) | (2%) | 1% | (3%) | (10%) | ||||||
Performance Products, adj | (5%) | (2%) | 0% | (4%) | (11%) | (d) | |||||
Advanced Materials | 3% | (5%) | 1% | (3%) | (4%) | ||||||
Textile Effects | 11% | (4%) | 0% | (12%) | (5%) | ||||||
Total Company | (6%) | (3%) | 1% | (2%) | (10%) | ||||||
Total Company, adj | (6%) | (3%) | 2% | (4%) | (11%) | (c)(d) | |||||
(a) | Excludes sales from tolling arrangements, by-products and raw materials. | |||||||||||
(b) | Excludes sales from by-products and raw materials. | |||||||||||
(c) | Pro forma adjusted to exclude the 2Q18 impact from unplaned outages at Rotterdam onset by third-party constraints. | |||||||||||
(d) | Pro forma adjusted to exclude the 2Q18 impact of planned T&I at Port Neches. | |||||||||||
Table 4 – Reconciliation of U.S. GAAP to Non-GAAP Measures | ||||||||||||||||
Income Tax | Diluted Income | |||||||||||||||
EBITDA | (Expense) Benefit | Net Income | Per Share | |||||||||||||
Three months ended | Three months ended | Three months ended | Three months ended | |||||||||||||
June 30, | June 30, | June 30, | June 30, | |||||||||||||
In millions, except per share amounts | 2019 | 2018 | 2019 | 2018 | 2019 | 2018 | 2019 | 2018 | ||||||||
Net income | $ 118 | $ 623 | $ 118 | $ 623 | $ 0.51 | $ 2.57 | ||||||||||
Net income attributable to noncontrolling interests | (8) | (209) | (8) | (209) | (0.03) | (0.86) | ||||||||||
Net income attributable to Huntsman Corporation | 110 | 414 | 110 | 414 | 0.47 | 1.71 | ||||||||||
Interest expense from continuing operations | 29 | 29 | ||||||||||||||
Interest expense from discontinued operations(3) | - | 11 | ||||||||||||||
Income tax expense from continuing operations | 50 | 4 | $ (50) | $ (4) | ||||||||||||
Income tax expense from discontinued operations(3) | 2 | 84 | ||||||||||||||
Depreciation and amortization from continuing operations | 92 | 83 | ||||||||||||||
Acquisition and integration expenses and purchase accounting adjustments | - | 7 | - | (2) | - | 5 | - | 0.02 | ||||||||
EBITDA / (Income) loss from discontinued operations, net of tax(3) | - | (429) | N/A | N/A | 2 | (334) | 0.01 | (1.38) | ||||||||
Noncontrolling interest of discontinued operations(1)(3) | - | 188 | N/A | N/A | - | 188 | - | 0.77 | ||||||||
U.S. tax reform impact on tax expense | N/A | N/A | 3 | 49 | 3 | 49 | 0.01 | 0.20 | ||||||||
Release of significant income tax valuation allowances (a) | N/A | N/A | - | (95) | - | (95) | - | (0.39) | ||||||||
Fair value adjustments to Venator Investment (b) | 18 | - | - | - | 18 | - | 0.08 | - | ||||||||
Loss on early extinguishment of debt | - | 3 | - | (1) | - | 2 | - | 0.01 | ||||||||
Expenses associated with merger, net of tax | - | 1 | - | - | - | 1 | - | - | ||||||||
Certain legal settlements and related expenses | - | 1 | - | - | - | 1 | - | - | ||||||||
Amortization of pension and postretirement actuarial losses | 17 | 18 | (4) | (4) | 13 | 14 | 0.06 | 0.06 | ||||||||
Restructuring, impairment and plant closing and transition costs | - | 1 | - | - | - | 1 | - | - | ||||||||
Adjusted(1) | $ 318 | $ 415 | $ (51) | $ (57) | $ 146 | $ 246 | $ 0.63 | $ 1.01 | ||||||||
Adjusted income tax expense(1) | $ 51 | $ 57 | ||||||||||||||
Net income attributable to noncontrolling interests, net of tax | 8 | 209 | ||||||||||||||
Noncontrolling interest of discontinued operations(1)(3) | - | (188) | ||||||||||||||
Adjusted pre-tax income(1) | $ 205 | $ 324 | ||||||||||||||
Adjusted effective tax rate(4) | 25% | 18% | ||||||||||||||
Effective tax rate | 29% | 1% | ||||||||||||||
Income Tax | Diluted Income | |||||||||||||||
EBITDA | (Expense) Benefit | Net Income | Per Share | |||||||||||||
Six months ended | Six months ended | Six months ended | Six months ended | |||||||||||||
June 30, | June 30, | June 30, | June 30, | |||||||||||||
In millions, except per share amounts | 2019 | 2018 | 2019 | 2018 | 2019 | 2018 | 2019 | 2018 | ||||||||
Net income | $ 249 | $ 973 | $ 249 | $ 973 | $ 1.07 | $ 3.98 | ||||||||||
Net income attributable to noncontrolling interests | (20) | (285) | (20) | (285) | (0.09) | (1.17) | ||||||||||
Net income attributable to Huntsman Corporation | 229 | 688 | 229 | 688 | 0.98 | 2.82 | ||||||||||
Interest expense from continuing operations | 59 | 56 | ||||||||||||||
Interest expense from discontinued operations(3) | - | 20 | ||||||||||||||
Income tax expense from continuing operations | 102 | 57 | (102) | (57) | ||||||||||||
Income tax expense from discontinued operations(3) | - | 104 | ||||||||||||||
Depreciation and amortization from continuing operations | 182 | 165 | ||||||||||||||
Acquisition and integration expenses and purchase accounting adjustments | 1 | 8 | - | (2) | 1 | 6 | - | 0.02 | ||||||||
EBITDA / Loss (income) from discontinued operations, net of tax(3) | 1 | (572) | N/A | N/A | 1 | (448) | - | (1.83) | ||||||||
Noncontrolling interest of discontinued operations(1)(3) | - | 243 | N/A | N/A | - | 243 | - | 1.00 | ||||||||
U.S. tax reform impact on tax expense | N/A | N/A | 3 | 49 | 3 | 49 | 0.01 | 0.20 | ||||||||
Release of significant income tax valuation allowances (a) | N/A | N/A | - | (95) | - | (95) | - | (0.39) | ||||||||
Fair value adjustments to Venator Investment (b) | (58) | - | - | - | (58) | - | (0.25) | - | ||||||||
Loss on early extinguishment of debt | 23 | 3 | (5) | (1) | 18 | 2 | 0.08 | 0.01 | ||||||||
Expenses associated with merger | - | 1 | - | - | - | 1 | - | - | ||||||||
Certain legal and other settlements and related expenses | - | 8 | - | (1) | - | 7 | - | 0.03 | ||||||||
Amortization of pension and postretirement actuarial losses | 35 | 35 | (8) | (8) | 27 | 27 | 0.12 | 0.11 | ||||||||
Impact of Switzerland income tax rate change | - | - | 32 | - | 32 | - | 0.14 | - | ||||||||
Restructuring, impairment and plant closing and transition costs | 1 | 4 | - | (1) | 1 | 3 | - | 0.01 | ||||||||
Adjusted(1) | $ 575 | $ 820 | $ (80) | $(116) | $ 254 | $ 483 | $ 1.09 | $ 1.98 | ||||||||
Adjusted income tax expense(1) | $ 80 | $ 116 | ||||||||||||||
Net income attributable to noncontrolling interests, net of tax | 20 | 285 | ||||||||||||||
Noncontrolling interest of discontinued operations(1)(3) | - | (243) | ||||||||||||||
Adjusted pre-tax income(1) | $ 354 | $ 641 | ||||||||||||||
Adjusted effective tax rate(4) | 23% | 18% | ||||||||||||||
Effective tax rate | 29% | 10% | ||||||||||||||
(a) | During the six months ended June 30, 2018, we released $95 million of valuation allowances in Switzerland and the U.K. We eliminated the effect of this significant change in tax valuation allowances from our presentation of adjusted net income to allow investors to better compare our ongoing financial performance from period to period. | ||||||||||||||||
We do not adjust for insignificant changes in tax valuation allowances because we do not believe this provides more meaningful information than is provided under GAAP. | |||||||||||||||||
(b) | Represents the changes in market value in Huntsman's remaining interesting in Venator. | ||||||||||||||||
See end of press release for footnote explanations | |||||||||||||||||
Table 5 – Selected Balance Sheet Items | ||||||
June 30, | March 31, | December 31, | ||||
In millions | 2019 | 2019 | 2018 | |||
Cash | $ 449 | $ 444 | $ 340 | |||
Accounts and notes receivable, net | 1,310 | 1,286 | 1,272 | |||
Inventories | 1,094 | 1,228 | 1,134 | |||
Other current assets | 160 | 178 | 212 | |||
Property, plant and equipment, net | 3,047 | 3,055 | 3,064 | |||
Other noncurrent assets | 2,440 | 2,449 | 1,931 | |||
Total assets | $ 8,500 | $ 8,640 | $ 7,953 | |||
Accounts payable | $ 925 | $ 911 | $ 961 | |||
Other current liabilities | 497 | 531 | 554 | |||
Current portion of debt | 228 | 276 | 96 | |||
Long-term debt | 2,277 | 2,323 | 2,224 | |||
Other noncurrent liabilities | 1,753 | 1,736 | 1,369 | |||
Huntsman Corporation stockholders' equity | 2,611 | 2,620 | 2,520 | |||
Noncontrolling interests in subsidiaries | 209 | 243 | 229 | |||
Total liabilities and equity | $ 8,500 | $ 8,640 | $ 7,953 | |||
Table 6 – Outstanding Debt | ||||||
June 30, | March 31, | December 31, | ||||
In millions | 2019 | 2019 | 2018 | |||
Debt: | ||||||
Revolving credit facility | $ 185 | $ 235 | $ 50 | |||
Accounts receivable programs | 236 | 276 | 252 | |||
Senior notes | 1,977 | 1,969 | 1,892 | |||
Variable interest entities | 81 | 85 | 86 | |||
Other debt | 26 | 34 | 40 | |||
Total debt - excluding affiliates | 2,505 | 2,599 | 2,320 | |||
Total cash | 449 | 444 | 340 | |||
Net debt - excluding affiliates(5) | $ 2,056 | $ 2,155 | $ 1,980 | |||
See end of press release for footnote explanations | ||||||
Table 7 – Summarized Statement of Cash Flows | ||||||||
Three months ended | Six months ended | |||||||
June 30, | June 30, | |||||||
In millions | 2019 | 2018 | 2019 | 2018 | ||||
Total cash at beginning of period(a) | $ 444 | $ 676 | $ 340 | $ 719 | ||||
Net cash provided by operating activities - continuing operations | 304 | 228 | 273 | 339 | ||||
Net cash provided by operating activities - discontinued operations(3) | - | 249 | - | 301 | ||||
Net cash used in investing activities - continuing operations | (64) | (411) | (118) | (480) | ||||
Net cash used in investing activities - discontinued operations(3) | - | (94) | - | (161) | ||||
Net cash provided by (used in) financing activities | (231) | 150 | (48) | 64 | ||||
Effect of exchange rate changes on cash | (4) | (35) | 2 | (19) | ||||
Total cash at end of period(a) | $ 449 | $ 763 | $ 449 | $ 763 | ||||
Supplemental cash flow information - continuing operations: | ||||||||
Cash paid for interest | $ (27) | $ (47) | $ (53) | $ (59) | ||||
Cash paid for income taxes | (54) | (51) | (68) | (77) | ||||
Cash paid for capital expenditures | (66) | (54) | (136) | (109) | ||||
Depreciation and amortization | 92 | 83 | 182 | 165 | ||||
- | ||||||||
Changes in primary working capital: | ||||||||
Accounts and notes receivable | (26) | 10 | (39) | (94) | ||||
Inventories | 135 | (2) | 45 | (107) | ||||
Accounts payable | (12) | 14 | (47) | 50 | ||||
Total cash used in primary working capital | $ 97 | $ 22 | $ (41) | $(151) | ||||
Free cash flow(2): | ||||||||
Net cash provided by operating activities | $ 304 | $ 228 | $ 273 | $ 339 | ||||
Capital expenditures | (66) | (54) | (136) | (109) | ||||
All other investing activities, excluding acquisition | ||||||||
and disposition activities(b) | 2 | (1) | 2 | (1) | ||||
Non-recurring merger costs(c) | - | 1 | - | 1 | ||||
Total free cash flow | $ 240 | $ 174 | $ 139 | $ 230 | ||||
Adjusted EBITDA | $ 318 | $ 415 | $ 575 | $ 820 | ||||
Capital expenditures | (66) | (54) | (136) | (109) | ||||
Capital reimbursements | 3 | 1 | 7 | 2 | ||||
Interest | (27) | (47) | (53) | (59) | ||||
Income taxes | (54) | (51) | (68) | (77) | ||||
Primary working capital change | 97 | 22 | (41) | (151) | ||||
Restructuring | (2) | (6) | (11) | (6) | ||||
Pensions | (26) | (28) | (55) | (59) | ||||
Maintenance & other | (3) | (78) | (79) | (131) | ||||
Total free cash flow(2) | $ 240 | $ 174 | $ 139 | $ 230 | ||||
(a) | Includes restricted cash and cash held in discontinued operations until the Deconsolidation of Venator. | ||||||||||
(b) | Represents "Acquisition of business, net of cash acquired", "Cash received from purchase price adjustment for business acquired", and "Proceeds from sale of business/assets". | ||||||||||
(c) | Represents payments associated with one-time costs of the terminated merger of equals with Clariant. | ||||||||||
Footnotes | |
(1) | We use adjusted EBITDA to measure the operating performance of our business and for planning and evaluating the performance of our business segments. We provide adjusted net income because we feel it provides meaningful insight for the investment community into the performance of our business. We believe that net income (loss) is the performance measure calculated and presented in accordance with generally accepted accounting principles in the U.S. ("GAAP") that is most directly comparable to adjusted EBITDA and adjusted net income (loss). Additional information with respect to our use of each of these financial measures follows: |
Adjusted EBITDA, adjusted net income (loss) and adjusted diluted income (loss) per share, as used herein, are not necessarily comparable to other similarly titled measures of other companies. | |
Adjusted EBITDA is computed by eliminating the following from net income (loss): (a) net income attributable to noncontrolling interests, net of tax; (b) interest; (c) income taxes; (d) depreciation and amortization (e) amortization of pension and postretirement actuarial losses (gains); (f) restructuring, impairment and plant closing costs (credits); and further adjusted for certain other items set forth in reconciliation of adjusted EBITDA to net income (loss) in Table 4 above. | |
Adjusted net income (loss) and adjusted diluted income (loss) per share are computed by eliminating the after tax impact of the following items from net income (loss): (a) net income attributable to noncontrolling interest; (b) amortization of pension and postretirement actuarial losses (gains); (c) restructuring, impairment and plant closing costs (credits); and further adjusted for certain other items set forth in reconciliation of adjusted EBITDA to net income (loss) in Table 4 above. The income tax impacts, if any, of each adjusting item represent a ratable allocation of the total difference between the unadjusted tax expense and the total adjusted tax expense, computed without consideration of any adjusting items using a with and without approach. | |
We do not provide reconciliations for adjusted EBITDA, adjusted net income (loss) or adjusted diluted income (loss) per share on a forward-looking basis because we are unable to provide a meaningful or accurate calculation or estimation of reconciling items and the information is not available without unreasonable effort. This is due to the inherent difficulty of forecasting the timing and amount of certain items, such as, but not limited to, (a) business acquisition and integration expenses and purchase accounting adjustments, (b) merger costs, and (c) certain legal and other settlements and related costs. Each of such adjustments has not yet occurred, are out of our control and/or cannot be reasonably predicted. For the same reasons, we are unable to address the probable significance of the unavailable information. | |
(2) | Management internally uses a free cash flow measure: (a) to evaluate the Company's liquidity, (b) to evaluate strategic investments, (c) to plan stock buyback and dividend levels and (d) to evaluate the Company's ability to incur and service debt. Free cash flow is not a defined term under U.S. GAAP, and it should not be inferred that the entire free cash flow amount is available for discretionary expenditures. The Company defines free cash flow as cash flow provided by operating activities less cash flow used in investing activities, excluding acquisition/disposition activities and non-recurring separation costs. Free cash flow is typically derived directly from the Company's condensed consolidated statement of cash flows; however, it may be adjusted for items that affect comparability between periods. |
(3) | During the third quarter of 2017 we separated our Pigments and Additives division through an Initial Public Offering of Venator Materials PLC. Additionally, during the first quarter 2010 we closed our Australian styrenics operations. Results from these associated businesses are treated as discontinued operations. |
(4) | We believe adjusted effective tax rate provides improved comparability between periods through the exclusion of certain items that management believes are not indicative of the businesses' operational profitability and that may obscure underlying business results and trends. In our view, effective tax rate is the performance measure calculated and presented in accordance with U.S. GAAP that is most directly comparable to adjusted effective tax rate. |
The reconciliation of historical adjusted effective tax rate and effective tax rate is set forth in Table 4 above. We do not provide reconciliations for adjusted effective tax rate on a forward-looking basis because we are unable to provide a meaningful or accurate calculation or estimation of reconciling items and the information is not available without unreasonable effort. This is due to the inherent difficulty of forecasting the timing and amount of certain items, such as, but not limited to, (a) business acquisition and integration expenses, (b) merger costs, and (c) certain legal and other settlements and related costs. Each of such adjustments has not yet occurred, are out of our control and/or cannot be reasonably predicted. For the same reasons, we are unable to address the probable significance of the unavailable information. | |
(5) | Net debt is a measure we use to monitor how much debt we have after taking into account our total cash. We use it as an indicator of our overall financial position, and calculate it by taking our total debt, including the current portion, and subtracting total cash. |
About Huntsman:
Huntsman Corporation is a publicly traded global manufacturer and marketer of differentiated and specialty chemicals with 2018 revenues more than $9 billion. Our chemical products number in the thousands and are sold worldwide to manufacturers serving a broad and diverse range of consumer and industrial end markets. We operate more than 75 manufacturing, R&D and operations facilities in approximately 30 countries and employ approximately 10,000 associates within our four distinct business divisions. For more information about Huntsman, please visit the company's website at www.huntsman.com.
Social Media:
Twitter: www.twitter.com/Huntsman_Corp
Facebook: www.facebook.com/huntsmancorp
LinkedIn: www.linkedin.com/company/huntsman
Forward-Looking Statements:
Certain information in this release constitutes forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. These statements are based on management's current beliefs and expectations. The forward-looking statements in this release are subject to uncertainty and changes in circumstances and involve risks and uncertainties that may affect the company's operations, markets, products, services, prices and other factors as discussed under the caption "Risk Factors" in the Huntsman companies' filings with the U.S. Securities and Exchange Commission. Significant risks and uncertainties may relate to, but are not limited to, volatile global economic conditions, cyclical and volatile product markets, disruptions in production at manufacturing facilities, reorganization or restructuring of Huntsman's operations, including any delay of, or other negative developments affecting the ability to implement cost reductions and manufacturing optimization improvements in Huntsman businesses and realize anticipated cost savings, and other financial, economic, competitive, environmental, political, legal, regulatory and technological factors. The company assumes no obligation to provide revisions to any forward-looking statements should circumstances change, except as otherwise required by applicable laws.
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SOURCE Huntsman Corporation
Article Date
7/30/20197/26/2019 - Huntsman Announces Acquisition of Remaining 50% Interest in Sasol-Huntsman Joint Venture
Huntsman Announces Acquisition of Remaining 50% Interest in Sasol-Huntsman Joint Venture
Source: PR Newswire
THE WOODLANDS, Texas, July 26, 2019 /PRNewswire/ -- Huntsman Corporation (NYSE: HUN) announced today that it has signed a definitive agreement with Sasol to acquire the 50% interest that Huntsman does not own in the Sasol-Huntsman maleic anhydride joint venture. The joint venture owns a manufacturing facility in Moers, Germany with capacity to produce 230 million pounds of maleic anhydride. Huntsman will pay Sasol $92.5 million, adjusted for debt and other agreed upon terms, funded from available liquidity. No other terms of the transaction were disclosed. Huntsman and Sasol currently anticipate the closing of the transaction to occur in the fourth quarter of 2019, subject to regulatory approvals and customary closing conditions.
Peter Huntsman, Chairman, President and CEO commented:
"Acquiring the remaining interest in our maleic German joint venture from Sasol will provide us with the flexibility to fully integrate our European business into our worldwide footprint, thereby better servicing our global customer base in key markets such as construction and coatings. This fits well into our core strategy to expand our portfolio of businesses with higher, more stable margins and strong free cash flow."
About Huntsman:
Huntsman Corporation is a publicly traded global manufacturer and marketer of differentiated and specialty chemicals with 2018 revenues more than $9 billion. Our chemical products number in the thousands and are sold worldwide to manufacturers serving a broad and diverse range of consumer and industrial end markets. We operate more than 75 manufacturing, R&D and operations facilities in approximately 30 countries and employ approximately 10,000 associates within our four distinct business divisions. For more information about Huntsman, please visit the company's website at www.huntsman.com.
Social Media:
Twitter: www.twitter.com/Huntsman_Corp
Facebook: www.facebook.com/huntsmancorp
LinkedIn: www.linkedin.com/company/huntsman
Forward-Looking Statements:
Certain information in this release constitutes forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. These statements are based on management's current beliefs and expectations. The forward-looking statements in this release are subject to uncertainty and changes in circumstances and involve risks and uncertainties that may affect the company's operations, markets, products, services, prices and other factors as discussed under the caption "Risk Factors" in the Huntsman companies' filings with the U.S. Securities and Exchange Commission. Significant risks and uncertainties may relate to, but are not limited to, volatile global economic conditions, cyclical and volatile product markets, disruptions in production at manufacturing facilities, reorganization or restructuring of Huntsman's operations, including any delay of, or other negative developments affecting the ability to implement cost reductions and manufacturing optimization improvements in Huntsman businesses and realize anticipated cost savings, and other financial, economic, competitive, environmental, political, legal, regulatory and technological factors. The company assumes no obligation to provide revisions to any forward-looking statements should circumstances change, except as otherwise required by applicable laws.
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SOURCE Huntsman Corporation
Article Date
7/26/2019Huntsman to Discuss Second Quarter 2019 Results on July 30, 2019
Source: PR Newswire
THE WOODLANDS, Texas, June 26, 2019 /PRNewswire/ -- Huntsman Corporation (NYSE: HUN) will hold a conference call on Tuesday, July 30, 2019, at 10:00 a.m. ET to discuss its second quarter 2019 financial results, which will be released at approximately 6:00 a.m. ET that day.
Participant dial-in numbers:
Domestic callers: (877) 402-8037
International callers: (201) 378-4913
Webcast link:
https://78449.themediaframe.com/dataconf/productusers/hun/mediaframe/31065/indexl.html
The conference call will be accompanied by presentation slides that will be accessible via the webcast link and Huntsman's investor relations website, ir.huntsman.com. Upon conclusion of the call, the webcast replay will be accessible via Huntsman's website.
About Huntsman:
Huntsman Corporation is a publicly traded global manufacturer and marketer of differentiated and specialty chemicals with 2018 revenues more than $9 billion. Our chemical products number in the thousands and are sold worldwide to manufacturers serving a broad and diverse range of consumer and industrial end markets. We operate more than 75 manufacturing, R&D and operations facilities in approximately 30 countries and employ approximately 10,000 associates within our four distinct business divisions. For more information about Huntsman, please visit the company's website at www.huntsman.com.
Social Media:
Twitter: www.twitter.com/Huntsman_Corp
Facebook: www.facebook.com/huntsmancorp
LinkedIn: www.linkedin.com/company/huntsman
Forward-Looking Statements:
Certain information in this release constitutes forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. These statements are based on management's current beliefs and expectations. The forward-looking statements in this release are subject to uncertainty and changes in circumstances and involve risks and uncertainties that may affect the company's operations, markets, products, services, prices and other factors as discussed under the caption "Risk Factors" in the Huntsman companies' filings with the U.S. Securities and Exchange Commission. Significant risks and uncertainties may relate to, but are not limited to, volatile global economic conditions, cyclical and volatile product markets, disruptions in production at manufacturing facilities, reorganization or restructuring of Huntsman's operations, including any delay of, or other negative developments affecting the ability to implement cost reductions and manufacturing optimization improvements in Huntsman businesses and realize anticipated cost savings, and other financial, economic, competitive, environmental, political, legal, regulatory and technological factors. The company assumes no obligation to provide revisions to any forward-looking statements should circumstances change, except as otherwise required by applicable laws.
View original content to download multimedia:http://www.prnewswire.com/news-releases/huntsman-to-discuss-second-quarter-2019-results-on-july-30-2019-300875639.html
SOURCE Huntsman Corporation
Article Date
6/26/2019Huntsman Announces Second Quarter 2019 Common Dividend
Source: PR Newswire
THE WOODLANDS, Texas, May 10, 2019 /PRNewswire/ -- Huntsman Corporation (NYSE: HUN) today announced that its board of directors has declared a $0.1625 per share cash dividend on its common stock. The dividend is payable on June 28, 2019 to stockholders of record as of June 14, 2019.
About Huntsman:
Huntsman Corporation is a publicly traded global manufacturer and marketer of differentiated and specialty chemicals with 2018 revenues more than $9 billion. Our chemical products number in the thousands and are sold worldwide to manufacturers serving a broad and diverse range of consumer and industrial end markets. We operate more than 75 manufacturing, R&D and operations facilities in approximately 30 countries and employ approximately 10,000 associates within our four distinct business divisions. For more information about Huntsman, please visit the company's website at www.huntsman.com.
Social Media:
Twitter: www.twitter.com/Huntsman_Corp
Facebook: www.facebook.com/huntsmancorp
LinkedIn: www.linkedin.com/company/huntsman
Forward-Looking Statements:
Certain information in this release constitutes forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. These statements are based on management's current beliefs and expectations. The forward-looking statements in this release are subject to uncertainty and changes in circumstances and involve risks and uncertainties that may affect the company's operations, markets, products, services, prices and other factors as discussed under the caption "Risk Factors" in the Huntsman companies' filings with the U.S. Securities and Exchange Commission. Significant risks and uncertainties may relate to, but are not limited to, volatile global economic conditions, cyclical and volatile product markets, disruptions in production at manufacturing facilities, reorganization or restructuring of Huntsman's operations, including any delay of, or other negative developments affecting the ability to implement cost reductions and manufacturing optimization improvements in Huntsman businesses and realize anticipated cost savings, and other financial, economic, competitive, environmental, political, legal, regulatory and technological factors. The company assumes no obligation to provide revisions to any forward-looking statements should circumstances change, except as otherwise required by applicable laws.
View original content to download multimedia:http://www.prnewswire.com/news-releases/huntsman-announces-second-quarter-2019-common-dividend-300848394.html
SOURCE Huntsman Corporation
Article Date
5/10/2019Huntsman to Discuss First Quarter 2019 Results on April 30, 2019
Source: PR Newswire
THE WOODLANDS, Texas, April 1, 2019 /PRNewswire/ -- Huntsman Corporation (NYSE: HUN) will hold a conference call on Tuesday, April 30, 2019, at 10:00 a.m. ET to discuss its first quarter 2019 financial results, which will be released at approximately 6:00 a.m. ET that day.
Participant dial-in numbers: | |
Domestic callers: | (877) 402-8037 |
International callers: | (201) 378-4913 |
Webcast link: | |
https://78449.themediaframe.com/dataconf/productusers/hun/mediaframe/29527/indexl.html | |
The conference call will be accompanied by presentation slides that will be accessible via the webcast link and Huntsman's investor relations website, ir.huntsman.com. Upon conclusion of the call, the webcast replay will be accessible via Huntsman's website.
About Huntsman:
Huntsman Corporation is a publicly traded global manufacturer and marketer of differentiated and specialty chemicals with 2018 revenues more than $9 billion. Our chemical products number in the thousands and are sold worldwide to manufacturers serving a broad and diverse range of consumer and industrial end markets. We operate more than 75 manufacturing, R&D and operations facilities in approximately 30 countries and employ approximately 10,000 associates within our four distinct business divisions. For more information about Huntsman, please visit the company's website at www.huntsman.com.
Social Media:
Twitter: www.twitter.com/Huntsman_Corp
Facebook: www.facebook.com/huntsmancorp
LinkedIn: www.linkedin.com/company/huntsman
Forward-Looking Statements:
Certain information in this release constitutes forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. These statements are based on management's current beliefs and expectations. The forward-looking statements in this release are subject to uncertainty and changes in circumstances and involve risks and uncertainties that may affect the company's operations, markets, products, services, prices and other factors as discussed under the caption "Risk Factors" in the Huntsman companies' filings with the U.S. Securities and Exchange Commission. Significant risks and uncertainties may relate to, but are not limited to, volatile global economic conditions, cyclical and volatile product markets, disruptions in production at manufacturing facilities, reorganization or restructuring of Huntsman's operations, including any delay of, or other negative developments affecting the ability to implement cost reductions and manufacturing optimization improvements in Huntsman businesses and realize anticipated cost savings, and other financial, economic, competitive, environmental, political, legal, regulatory and technological factors. The company assumes no obligation to provide revisions to any forward-looking statements should circumstances change, except as otherwise required by applicable laws.
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SOURCE Huntsman Corporation
Article Date
4/1/20193/18/2019 - Huntsman Updates First Quarter 2019 Outlook
Huntsman Updates First Quarter 2019 Outlook
Source: PR Newswire
THE WOODLANDS, Texas, March 18, 2019 /PRNewswire/ -- Huntsman Corporation (NYSE: HUN) management will be presenting to investors over the coming days at the Goldman Sachs Houston Chemical Intensity Days Conference in Houston, Texas. The presentations and discussions will reflect Huntsman's updated outlook for the first quarter 2019.
Huntsman's largest business segment, Polyurethanes, is seeing improving trends in China. However, this is currently being more than offset by a slower-than-expected seasonal pickup in construction-related markets and lower demand in automotive in North America, as well as softer demand patterns across most of the major European markets, including automotive. While Huntsman expects the Polyurethanes segment first quarter results to be a bit softer than previously expected due to overall softer volumes, the margins in the downstream business remain stable.
Huntsman expects that the Performance Products segment results for the first quarter will likely be flat to down from the fourth quarter 2018, versus the previous expectation of flat to up, due largely to weather-related delays in the agricultural markets and weaker oilfield chemical demand.
Within the Advanced Materials segment, Huntsman is seeing similar pockets of softness, such as in construction and coatings, yet Huntsman still expects that its first quarter results will be modestly up from the fourth quarter 2018, which is roughly in line with previous expectations.
The Textile Effects segment continues to feel the effects of lingering challenges in China resulting in softer volumes than previously expected. Huntsman expects first quarter results in this segment to be similar to fourth quarter 2018.
As a result of these changes to the outlook, largely resulting from a slower seasonal pickup in North America and a softer European economy, Huntsman expects its first quarter 2019 consolidated adjusted EBITDA to be 10% or so below fourth quarter 2018.
Peter R. Huntsman, Chairman, President and CEO, commented "We are pleased to see business conditions improve within our Polyurethanes segment in Asia following the Chinese New Year, and our downstream global strategy is working. Despite softer-than-anticipated conditions in Europe and a slower seasonal start in North America, our downstream margins are holding firm. While the first quarter has been more challenging than anticipated, it is largely volumetric. We continue to see inventory levels reduced and general long-term fundamentals intact. Absent macro events occurring that are out of our control, we remain cautiously encouraged that the rest of the year will improve, and we reaffirm our prior full year guidance of 2019 adjusted EBITDA between 5% and 7% lower than 2018."
About Huntsman:
Huntsman Corporation is a publicly traded global manufacturer and marketer of differentiated and specialty chemicals with 2018 revenues more than $9 billion. Our chemical products number in the thousands and are sold worldwide to manufacturers serving a broad and diverse range of consumer and industrial end markets. We operate more than 75 manufacturing, R&D and operations facilities in approximately 30 countries and employ approximately 10,000 associates within our four distinct business divisions. For more information about Huntsman, please visit the company's website at www.huntsman.com.
Social Media:
Twitter: www.twitter.com/Huntsman_Corp
Facebook: www.facebook.com/huntsmancorp
LinkedIn: www.linkedin.com/company/huntsman
Forward-Looking Statements:
Certain information in this release constitutes forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. These statements are based on management's current beliefs and expectations. The forward-looking statements in this release are subject to uncertainty and changes in circumstances and involve risks and uncertainties that may affect the company's operations, markets, products, services, prices and other factors as discussed under the caption "Risk Factors" in the Huntsman companies' filings with the U.S. Securities and Exchange Commission. Significant risks and uncertainties may relate to, but are not limited to, volatile global economic conditions, cyclical and volatile product markets, disruptions in production at manufacturing facilities, reorganization or restructuring of Huntsman's operations, including any delay of, or other negative developments affecting the ability to implement cost reductions and manufacturing optimization improvements in Huntsman businesses and realize anticipated cost savings, and other financial, economic, competitive, environmental, political, legal, regulatory and technological factors. The company assumes no obligation to provide revisions to any forward-looking statements should circumstances change, except as otherwise required by applicable laws.
Non-GAAP Reconciliation:
The Company does not provide reconciliations of forward-looking non-GAAP financial measures to the most comparable GAAP financial measures on a forward-looking basis because the Company is unable to provide a meaningful or accurate calculation or estimation of reconciling items and the information is not available without unreasonable effort. This is due to the inherent difficulty of forecasting the timing and amount of certain items, such as, but not limited to, (a) business acquisition and integration expenses, (b) merger costs, and (c) certain legal and other settlements and related costs. Each of such adjustments has not yet occurred, are out of the Company's control and/or cannot be reasonably predicted. For the same reasons, the Company is unable to address the probable significance of the unavailable information.
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SOURCE Huntsman Corporation
Article Date
3/18/20192/27/2019 - Huntsman Prices $750 Million of Senior Notes
Huntsman Prices $750 Million of Senior Notes
Source: PR Newswire
THE WOODLANDS, Texas, Feb. 27, 2019 /PRNewswire/ -- Huntsman Corporation (NYSE: HUN) today announced that its wholly-owned subsidiary, Huntsman International LLC, has priced its offering of $750 million in aggregate principal amount of Senior Notes due 2029. The notes will be offered to the public at a price of 98.870% of their principal amount and will bear interest at a rate of 4.500% per annum. Huntsman expects the offering to close on March 13, 2019, subject to customary closing conditions.
Huntsman intends to use the net proceeds from the offering to redeem in full $650 million in aggregate principal amount of its 4.875% Senior Notes due 2020 and to pay associated costs and accrued interest. Huntsman intends to use the remainder of the net proceeds for general corporate purposes. Pending the use of proceeds as described above, Huntsman may temporarily apply a portion of the net proceeds from the offering to repay amounts outstanding under its debt.
Citigroup Global Markets Inc.; Merrill Lynch, Pierce, Fenner & Smith Incorporated; Barclays Capital Inc.; Deutsche Bank Securities Inc.; Goldman Sachs & Co. LLC; HSBC Securities (USA) Inc.; J.P. Morgan Securities LLC; Morgan Stanley & Co. LLC; PNC Capital Markets LLC and SunTrust Robinson Humphrey, Inc. are acting as the joint book-running managers for the offering. BMO Capital Markets Corp.; ICBC Standard Bank Plc; RBC Capital Markets, LLC and TD Securities (USA) LLC are acting as the senior co-managers for the offering, and Academy Securities, Inc. is acting as the co-manager for this offering.
The offering was made under an effective shelf registration statement that was filed with the U.S. Securities and Exchange Commission and became automatically effective on February 25, 2019. The offering of the notes may be made only by means of a prospectus supplement and accompanying prospectus, copies of which may be obtained from Citigroup Global Markets Inc. by calling toll-free at 1-800-831-9146 or from Merrill Lynch, Pierce, Fenner & Smith Incorporated by calling toll-free at 1-800-294-1322.
This press release shall not constitute an offer to sell or a solicitation of an offer to buy, nor shall there be any sale of the notes in any state or jurisdiction in which such an offer, solicitation or sale would be unlawful.
About Huntsman:
Huntsman Corporation is a publicly traded global manufacturer and marketer of differentiated and specialty chemicals with 2018 revenues more than $9 billion. Our chemical products number in the thousands and are sold worldwide to manufacturers serving a broad and diverse range of consumer and industrial end markets. We operate more than 75 manufacturing, R&D and operations facilities in approximately 30 countries and employ approximately 10,000 associates within our four distinct business divisions.
Forward-Looking Statements:
Certain information in this release constitutes forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. These statements are based on management's current beliefs and expectations. The forward-looking statements in this release are subject to uncertainty and changes in circumstances and involve risks and uncertainties that may affect the company's operations, markets, products, services, prices and other factors as discussed under the caption "Risk Factors" in the Huntsman companies' filings with the U.S. Securities and Exchange Commission. Significant risks and uncertainties may relate to, but are not limited to, volatile global economic conditions, cyclical and volatile product markets, disruptions in production at manufacturing facilities, reorganization or restructuring of Huntsman's operations, including any delay of, or other negative developments affecting the ability to implement cost reductions and manufacturing optimization improvements in Huntsman businesses and realize anticipated cost savings, and other financial, economic, competitive, environmental, political, legal, regulatory and technological factors. The company assumes no obligation to provide revisions to any forward-looking statements should circumstances change, except as otherwise required by applicable laws.
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SOURCE Huntsman Corporation
Article Date
2/27/2019Huntsman Appoints Vice Admiral Jan E. Tighe to its Board of Directors
Source: PR Newswire
THE WOODLANDS, Texas, Feb. 27, 2019 /PRNewswire/ -- Huntsman Corporation (NYSE: HUN) today announced the appointment of Vice Admiral Jan E. Tighe, U.S. Navy retired, to its Board of Directors effective February 26, 2019. The Huntsman Board now comprises eight directors, seven of whom are independent.
Vice Admiral Tighe most recently served as Deputy Chief of Naval Operations for Information Warfare comprising executive responsibilities as Director of Naval Intelligence, U.S. Navy's Chief Information Officer, and Director of Cybersecurity before her retirement from the U.S. Navy in August 2018.
Vice Admiral Tighe has served in the U.S. Navy since 1980 in various roles of increasing seniority including Commander of the U.S. Fleet Cyber Command and U.S. Tenth Fleet. Vice Admiral Tighe is a graduate of the U.S. Naval Academy with a B.S. in Theoretical Mathematics, and she received a M.S. in Applied Mathematics and a Ph.D. in Electrical Engineering from the U.S. Naval Postgraduate School (NPS). She served as the President of NPS from 2012 to 2013 and was inducted into the NPS Hall of Fame in June 2018 for her distinguished accomplishments and contributions at the highest levels of public service.
Vice Admiral Tighe currently serves as a member of the National Security Sector Advisory Committee of The MITRE Corporation and is a member on the Strategic Advisory Group of Paladin Capital Group. Vice Admiral Tighe also serves on the Board of Directors of The Goldman Sachs Group, Inc.
Commenting on the Board appointment, Peter Huntsman, Chairman, President and CEO, said, "We are honored to have Vice Admiral Tighe join our Board of Directors. Jan brings a wealth of knowledge having served a long and distinguished career managing multi-billion dollar budgets, serving as the CIO of the U.S. Navy, and leading the operations involving thousands of people. She will certainly add to the depth and capability of our Board of Directors."
About Huntsman:
Huntsman Corporation is a publicly traded global manufacturer and marketer of differentiated and specialty chemicals with 2018 revenues more than $9 billion. Our chemical products number in the thousands and are sold worldwide to manufacturers serving a broad and diverse range of consumer and industrial end markets. We operate more than 75 manufacturing, R&D and operations facilities in approximately 30 countries and employ approximately 10,000 associates within our four distinct business divisions. For more information about Huntsman, please visit the company's website at www.huntsman.com.
Social Media:
Twitter: www.twitter.com/Huntsman_Corp
Facebook: www.facebook.com/huntsmancorp
LinkedIn: www.linkedin.com/company/huntsman
Forward-Looking Statements:
Certain information in this release constitutes forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. These statements are based on management's current beliefs and expectations. The forward-looking statements in this release are subject to uncertainty and changes in circumstances and involve risks and uncertainties that may affect the company's operations, markets, products, services, prices and other factors as discussed under the caption "Risk Factors" in the Huntsman companies' filings with the U.S. Securities and Exchange Commission. Significant risks and uncertainties may relate to, but are not limited to, volatile global economic conditions, cyclical and volatile product markets, disruptions in production at manufacturing facilities, reorganization or restructuring of Huntsman's operations, including any delay of, or other negative developments affecting the ability to implement cost reductions and manufacturing optimization improvements in Huntsman businesses and realize anticipated cost savings, and other financial, economic, competitive, environmental, political, legal, regulatory and technological factors. The company assumes no obligation to provide revisions to any forward-looking statements should circumstances change, except as otherwise required by applicable laws.
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SOURCE Huntsman Corporation
Article Date
2/27/2019Huntsman Receives Investment Grade Ratings from Moody's and Fitch
Source: PR Newswire
THE WOODLANDS, Texas, Feb. 25, 2019 /PRNewswire/ -- Huntsman Corporation (NYSE: HUN) today announced that Moody's Investors Service, Inc. has upgraded our senior unsecured rating from "Ba1" to "Baa3" with a "stable outlook". In addition, Fitch Ratings, Inc. published an initial Long-term Issuer Default Rating for the Company of "BBB-" with a "positive outlook".
Peter Huntsman, Chairman, President and CEO commented:
"We are pleased to receive today the formal recognition of Investment Grade. This has been our objective for many years and reflects the significant transformation of our balance sheet and downstream portfolio of businesses. This action will further strengthen our shareholder base, provide greater flexibility with our balance sheet and allow us to continue to expand our downstream businesses."
Sean Douglas, Executive Vice President and Chief Financial Officer added:
"The investment grade ratings are further evidence of our ongoing commitment to a strong balance sheet and credit metrics. We intend to maintain financial discipline with a consistent and balanced approach to capital allocation."
About Huntsman:
Huntsman Corporation is a publicly traded global manufacturer and marketer of differentiated and specialty chemicals with 2018 revenues more than $9 billion. Our chemical products number in the thousands and are sold worldwide to manufacturers serving a broad and diverse range of consumer and industrial end markets. We operate more than 75 manufacturing, R&D and operations facilities in approximately 30 countries and employ approximately 10,000 associates within our four distinct business divisions. For more information about Huntsman, please visit the company's website at www.huntsman.com.
Social Media:
Twitter: www.twitter.com/Huntsman_Corp
Facebook: www.facebook.com/huntsmancorp
LinkedIn: www.linkedin.com/company/huntsman
Forward-Looking Statements:
Certain information in this release constitutes forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. These statements are based on management's current beliefs and expectations. The forward-looking statements in this release are subject to uncertainty and changes in circumstances and involve risks and uncertainties that may affect the company's operations, markets, products, services, prices and other factors as discussed under the caption "Risk Factors" in the Huntsman companies' filings with the U.S. Securities and Exchange Commission. Significant risks and uncertainties may relate to, but are not limited to, volatile global economic conditions, cyclical and volatile product markets, disruptions in production at manufacturing facilities, reorganization or restructuring of Huntsman's operations, including any delay of, or other negative developments affecting the ability to implement cost reductions and manufacturing optimization improvements in Huntsman businesses and realize anticipated cost savings, and other financial, economic, competitive, environmental, political, legal, regulatory and technological factors. The company assumes no obligation to provide revisions to any forward-looking statements should circumstances change, except as otherwise required by applicable laws.
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SOURCE Huntsman Corporation
Article Date
2/25/2019Huntsman Announces 2019 Annual Meeting of Stockholders
Source: PR Newswire
THE WOODLANDS, Texas, Feb. 18, 2019 /PRNewswire/ -- Huntsman Corporation (NYSE: HUN) today announced that it will hold its 2019 annual meeting of stockholders on Thursday, May 2, 2019 at 8:30 a.m., local time, at The Westin at The Woodlands, 2 Waterway Square Place, The Woodlands, Texas 77380. Holders of record as of the close of business on March 8, 2019 will be entitled to vote at the meeting.
About Huntsman:
Huntsman Corporation is a publicly traded global manufacturer and marketer of differentiated and specialty chemicals with 2018 revenues more than $9 billion. Our chemical products number in the thousands and are sold worldwide to manufacturers serving a broad and diverse range of consumer and industrial end markets. We operate more than 75 manufacturing, R&D and operations facilities in approximately 30 countries and employ approximately 10,000 associates within our four distinct business divisions. For more information about Huntsman, please visit the company's website at www.huntsman.com.
Social Media:
Twitter: www.twitter.com/Huntsman_Corp
Facebook: www.facebook.com/huntsmancorp
LinkedIn: www.linkedin.com/company/huntsman
Forward-Looking Statements:
Certain information in this release constitutes forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. These statements are based on management's current beliefs and expectations. The forward-looking statements in this release are subject to uncertainty and changes in circumstances and involve risks and uncertainties that may affect the company's operations, markets, products, services, prices and other factors as discussed under the caption "Risk Factors" in the Huntsman companies' filings with the U.S. Securities and Exchange Commission. Significant risks and uncertainties may relate to, but are not limited to, volatile global economic conditions, cyclical and volatile product markets, disruptions in production at manufacturing facilities, reorganization or restructuring of Huntsman's operations, including any delay of, or other negative developments affecting the ability to implement cost reductions and manufacturing optimization improvements in Huntsman businesses and realize anticipated cost savings, and other financial, economic, competitive, environmental, political, legal, regulatory and technological factors. The company assumes no obligation to provide revisions to any forward-looking statements should circumstances change, except as otherwise required by applicable laws.
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SOURCE Huntsman Corporation
Article Date
2/18/2019Huntsman Announces First Quarter 2019 Common Dividend
Source: PR Newswire
THE WOODLANDS, Texas, Feb. 13, 2019 /PRNewswire/ -- Huntsman Corporation (NYSE: HUN) today announced that its board of directors has declared a $0.1625 per share cash dividend on its common stock. The dividend is payable on March 29, 2019 to stockholders of record as of March 15, 2019.
About Huntsman:
Huntsman Corporation is a publicly traded global manufacturer and marketer of differentiated and specialty chemicals with 2018 revenues more than $9 billion. Our chemical products number in the thousands and are sold worldwide to manufacturers serving a broad and diverse range of consumer and industrial end markets. We operate more than 75 manufacturing, R&D and operations facilities in approximately 30 countries and employ approximately 10,000 associates within our four distinct business divisions. For more information about Huntsman, please visit the company's website at www.huntsman.com.
Social Media:
Twitter: www.twitter.com/Huntsman_Corp
Facebook: www.facebook.com/huntsmancorp
LinkedIn: www.linkedin.com/company/huntsman
Forward-Looking Statements:
Certain information in this release constitutes forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. These statements are based on management's current beliefs and expectations. The forward-looking statements in this release are subject to uncertainty and changes in circumstances and involve risks and uncertainties that may affect the company's operations, markets, products, services, prices and other factors as discussed under the caption "Risk Factors" in the Huntsman companies' filings with the U.S. Securities and Exchange Commission. Significant risks and uncertainties may relate to, but are not limited to, volatile global economic conditions, cyclical and volatile product markets, disruptions in production at manufacturing facilities, reorganization or restructuring of Huntsman's operations, including any delay of, or other negative developments affecting the ability to implement cost reductions and manufacturing optimization improvements in Huntsman businesses and realize anticipated cost savings, and other financial, economic, competitive, environmental, political, legal, regulatory and technological factors. The company assumes no obligation to provide revisions to any forward-looking statements should circumstances change, except as otherwise required by applicable laws.
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SOURCE Huntsman Corporation
Article Date
2/13/2019Huntsman Announces Record Full Year 2018 Earnings With Strong and Consistent Cash Flow
Source: PR Newswire
THE WOODLANDS, Texas, Feb. 12, 2019 /PRNewswire/ --
Full Year 2018 and Fourth Quarter Highlights
Three months ended | Twelve months ended | |||||||
December 31, | December 31, | |||||||
In millions, except per share amounts | 2018 | 2017 | 2018 | 2017 | ||||
Revenues | $2,236 | $2,203 | $9,379 | $8,358 | ||||
Net (loss) income | $ (315) | $ 287 | $ 650 | $ 741 | ||||
Adjusted net income(1) | $ 123 | $ 186 | $ 808 | $ 604 | ||||
Diluted (loss) income per share | $ (1.43) | $ 1.00 | $ 1.39 | $ 2.61 | ||||
Adjusted diluted income per share(1) | $ 0.52 | $ 0.76 | $ 3.34 | $ 2.48 | ||||
Adjusted EBITDA(1) | $ 275 | $ 360 | $1,469 | $1,259 | ||||
Net cash provided by operating activities from continuing operations | $ 329 | $ 304 | $ 963 | $ 842 | ||||
Free cash flow(2) | $ 195 | $ 190 | $ 651 | $ 594 | ||||
See end of press release for footnote explanations |
Huntsman Corporation (NYSE: HUN) today reported fourth quarter 2018 results with revenues of $2,236 million, net loss of $315 million, adjusted net income of $123 million and adjusted EBITDA of $275 million.
Peter R. Huntsman, Chairman, President and CEO, commented:
"2018 was another successful year for Huntsman as we reported record earnings and consistent robust free cash flow. We continued to expand in our downstream and differentiated businesses both through internal investments and bolt-on acquisitions. We reinforced our investment grade level balance sheet by entering into an expanded $1.2 billion senior unsecured revolver, and we remain well within investment grade metrics with a 1.3x net leverage ratio. We also significantly enhanced our capital return to shareholders this past year by increasing our regular quarterly dividend by 30% and repurchasing over 10 million shares for approximately $276 million.
"In spite of strong customer destocking brought about by seasonal slowness, falling crude prices and economic uncertainties, our results reflect one of our strongest fourth quarters in our history. We will continue to globalize recent investments, focus on our higher growth markets, and expand on our downstream businesses. We will also continue to make key investments to support our core long-term growth, such as building a new MDI splitter at our Geismar, Louisiana facility to support differentiated downstream growth, make additional bolt-on acquisitions as appropriate, and continue a balanced opportunistic approach to share buy-backs. 2019 will be another year of strong free cash flow generation and growth in our downstream businesses."
Segment Analysis for 4Q18 Compared to 4Q17
Polyurethanes
The decrease in revenue in our Polyurethanes segment for the three months ended December 31, 2018 compared to the same period in 2017 was primarily due to lower MDI average selling prices partially offset by higher sales volumes. MDI average selling prices decreased primarily due to a decline in component MDI selling prices in China and Europe. MDI sales volumes increased due to the start-up of our new Chinese MDI facility in 2018 and the acquisition of Demilec, a North American polyurethane spray foam company, in April 2018. The decrease in adjusted EBITDA was primarily due to lower MDI margins driven by pricing, partially offset with higher sales volumes.
Performance Products
Revenues in our Performance Products segment for the three months ended December 31, 2018 compared to the same period in 2017 were higher as a result of higher sales volumes and higher average selling prices. Sales volumes increased largely due to a planned maintenance turnaround and unplanned weather-related outages at our Port Neches site during 2017. Average selling prices increased primarily due to stronger market conditions across several of our derivatives businesses and in response to higher raw material costs. The increase in adjusted EBITDA was due to the impact of the outages during 2017 and higher margins.
Advanced Materials
The increase in revenues in our Advanced Materials segment for the three months ended December 31, 2018 compared to the same period in 2017 was primarily due to higher average selling prices. Average selling prices increased in response to higher raw material costs, partially offset by the impact of a stronger U.S. dollar against major international currencies. Overall sales volumes remained flat, as sales volumes increased in our commodity business, offset by lower sales volumes in our specialty markets. Segment adjusted EBITDA primarily decreased due to higher fixed costs and unfavorable currency exchange results.
Textile Effects
The increase in revenues in our Textile Effects segment for the three months ended December 31, 2018 compared to the same period in 2017 was primarily due to higher average selling prices, partially offset by lower sales volume and the impact of a stronger U.S. dollar against major international currencies. Average selling prices increased somewhat in response to higher raw material costs. Sales volumes decreased across most regions. The increase in adjusted EBITDA was primarily due to higher average selling prices, partially offset by higher raw material costs and lower sales volumes.
Corporate, LIFO and other
For the three months ended December 31, 2018, segment adjusted EBITDA from Corporate and other for Huntsman Corporation decreased $12 million to a loss of $41 million from a loss of $53 million in the same period in 2017, primarily due to lower fixed costs and a decrease in LIFO inventory reserves.
Liquidity, Capital Resources and Outstanding Debt
During the three months ended December 31, 2018 we generated free cash flow of $195 million compared to $190 million in the prior year period. As of December 31, 2018, we had $1,525 million of combined cash and unused borrowing capacity.
During the three months ended December 31, 2018, we spent $133 million on capital expenditures compared to $123 million in the same period of 2017. We spent $313 million in capital expenditures in 2018. In 2019, we expect to spend approximately $390 million on capital expenditures, including approximately $50 million for the construction of a new MDI splitting unit in Geismar, Louisiana.
Through the end of the fourth quarter 2018 we have spent approximately $276 million to repurchase approximately 10.4 million shares, including approximately $101 million spent to acquire approximately 4.5 million shares within the fourth quarter. As of the end of the fourth quarter 2018, we have approximately $724 million remaining on our existing $1 billion multiyear share repurchase program.
Income Taxes
During the three months ended December 31, 2018, we recorded income tax expense of $13 million compared to a benefit of $14 million during the same period in 2017. In the fourth quarter 2018, our adjusted effective tax rate was 18%. We expect our forward adjusted effective tax rate will be approximately 22% - 24%.
Venator
Our former Pigments and Additives segment, now known as Venator, was deconsolidated beginning in December 2018 and we elected the fair value option to account for our equity method investment in Venator. Huntsman currently owns 49% of Venator's outstanding shares.
Earnings Conference Call Information
We will hold a conference call to discuss our fourth quarter 2018 financial results on Tuesday, February 12, 2019 at 10:00 a.m. ET.
Call-in numbers for the conference call: | |
U.S. participants | (888) 713 - 4213 |
International participants | (617) 213 - 4865 |
Passcode | 485 932 39# |
In order to facilitate the registration process, you may use the following link to pre-register for the conference call. Callers who pre-register will be given a unique PIN to gain immediate access to the call and bypass the live operator. You may pre-register at any time, including up to and after the call start time. To pre-register, please go to: https://www.theconferencingservice.com/prereg/key.process?key=PVAHR743N
Webcast Information
The conference call will be available via webcast and can be accessed from the company's website at ir.huntsman.com.
Replay Information
The conference call will be available for replay beginning February 12, 2019 and ending February 19, 2019.
Call-in numbers for the replay: | |
U.S. participants | (888) 286 - 8010 |
International participants | (617) 801 - 6888 |
Replay code | 11329067 |
Upcoming Conferences
During the first quarter 2019 a member of management is expected to present at:
Alembic Global Deer Valley Conference February 28, 2019 and March 1, 2019
Goldman Sachs Houston Chemical Intensity Days, March 18, 2019
Seaport Global Annual Transports & Industrials Conference, March 20, 2019
A webcast of the presentation, if applicable, along with accompanying materials will be available at ir.huntsman.com.
Table 1 – Results of Operations | ||||||||
Three months ended | Twelve months ended | |||||||
December 31, | December 31, | |||||||
In millions, except per share amounts | 2018 | 2017 | 2018 | 2017 | ||||
Revenues | $2,236 | $2,203 | $9,379 | $8,358 | ||||
Cost of goods sold | 1,830 | 1,695 | 7,354 | 6,552 | ||||
Gross profit | 406 | 508 | 2,025 | 1,806 | ||||
Operating expenses | 243 | 236 | 990 | 913 | ||||
Restructuring, impairment and plant closing (credits) costs | (13) | 7 | (5) | 20 | ||||
Expenses associated with the merger | - | 10 | 2 | 28 | ||||
Operating income | 176 | 255 | 1,038 | 845 | ||||
Interest expense | (29) | (31) | (115) | (165) | ||||
Equity in income of investment in unconsolidated affiliates | 10 | 9 | 55 | 13 | ||||
Fair value adjustments to Venator investment | (62) | - | (62) | - | ||||
Loss on early extinguishment of debt | - | (18) | (3) | (54) | ||||
Other income, net | 9 | 1 | 29 | 8 | ||||
Income before income taxes | 104 | 216 | 942 | 647 | ||||
Income tax (expense) benefit | (13) | 14 | (97) | (64) | ||||
Income from continuing operations | 91 | 230 | 845 | 583 | ||||
(Loss) income from discontinued operations, net of tax(3) | (406) | 57 | (195) | 158 | ||||
Net (loss) income | (315) | 287 | 650 | 741 | ||||
Net income attributable to noncontrolling interests, net of tax | (25) | (41) | (313) | (105) | ||||
Net (loss) income attributable to Huntsman Corporation | $ (340) | $ 246 | $ 337 | $ 636 | ||||
Adjusted EBITDA(1) | $ 275 | $ 360 | $1,469 | $1,259 | ||||
Adjusted net income(1) | $ 123 | $ 186 | $ 808 | $ 604 | ||||
Basic (loss) income per share | $ (1.45) | $ 1.03 | $ 1.42 | $ 2.67 | ||||
Diluted (loss) income per share | $ (1.43) | $ 1.00 | $ 1.39 | $ 2.61 | ||||
Adjusted diluted income per share(1) | $ 0.52 | $ 0.76 | $ 3.34 | $ 2.48 | ||||
Common share information: | ||||||||
Basic weighted average shares | 235 | 240 | 238 | 238 | ||||
Diluted weighted average shares | 237 | 245 | 242 | 244 | ||||
Diluted shares for adjusted diluted income per share | 237 | 245 | 242 | 244 | ||||
See end of press release for footnote explanations |
Table 2 – Results of Operations by Segment | ||||||||||||
Three months ended | Twelve months ended | |||||||||||
December 31, | Better / | December 31, | Better / | |||||||||
In millions | 2018 | 2017 | (Worse) | 2018 | 2017 | (Worse) | ||||||
Segment Revenues: | ||||||||||||
Polyurethanes | $1,204 | $1,227 | (2)% | $5,094 | $4,399 | 16% | ||||||
Performance Products | 560 | 514 | 9% | 2,355 | 2,109 | 12% | ||||||
Advanced Materials | 266 | 258 | 3% | 1,116 | 1,040 | 7% | ||||||
Textile Effects | 193 | 190 | 2% | 824 | 776 | 6% | ||||||
Corporate and eliminations | 13 | 14 | n/m | (10) | 34 | n/m | ||||||
Total | $2,236 | $2,203 | 1% | $9,379 | $8,358 | 12% | ||||||
Segment Adjusted EBITDA(1): | ||||||||||||
Polyurethanes | $ 169 | $ 294 | (43)% | $ 946 | $ 850 | 11% | ||||||
Performance Products | 78 | 47 | 66% | 367 | 296 | 24% | ||||||
Advanced Materials | 48 | 53 | (9)% | 225 | 219 | 3% | ||||||
Textile Effects | 21 | 19 | 11% | 101 | 83 | 22% | ||||||
Corporate, LIFO and other | (41) | (53) | 23% | (170) | (189) | 10% | ||||||
Total | $ 275 | $ 360 | (24)% | $1,469 | $1,259 | 17% | ||||||
n/m = not meaningful |
See end of press release for footnote explanations |
Table 3 -- Factors Impacting Sales Revenue | |||||||||||
Three months ended | |||||||||||
December 31, 2018 vs. 2017 | |||||||||||
Average Selling Price(a) | |||||||||||
Local | Exchange | Sales Mix | Sales | ||||||||
Currency | Rate | & Other | Volume(b) | Total | |||||||
Polyurethanes | (7)% | (2)% | 0% | 7% | (2)% | ||||||
Performance Products | 3% | (1)% | (8)% | 15% | 9% | ||||||
Performance Products, adj | 6% | (1)% | (3)% | (2)% | 0% | (e) | |||||
Advanced Materials | 6% | (3)% | 0% | 0% | 3% | ||||||
Textile Effects | 15% | (3)% | (4)% | (6)% | 2% | ||||||
Total Company | (2)% | (2)% | (5)% | 10% | 1% | ||||||
Total Company, adj | (1)% | (2)% | (1)% | 4% | 0% | (e) | |||||
Twelve months ended | |||||||||||
December 31, 2018 vs. 2017 | |||||||||||
Average Selling Price(a) | |||||||||||
Local | Exchange | Sales Mix | Sales | ||||||||
Currency | Rate | & Other | Volume(b) | Total | |||||||
Polyurethanes | 5% | 2% | 0% | 9% | 16% | ||||||
Polyurethanes, adj | 4% | 2% | 1% | 8% | 15% | (c)(d) | |||||
Performance Products | 5% | 1% | (3)% | 9% | 12% | ||||||
Performance Products, adj | 6% | 1% | (3)% | 1% | 5% | (d)(e)(f) | |||||
Advanced Materials | 4% | 2% | 0% | 1% | 7% | ||||||
Textile Effects | 6% | 0% | 0% | 0% | 6% | ||||||
Total Company | 4% | 1% | (2)% | 9% | 12% | ||||||
Total Company, adj | 4% | 1% | 1% | 4% | 10% | (c)(d)(e)(f) | |||||
(a) Excludes sales from tolling arrangements, by-products and raw materials. |
(b) Excludes sales from by-products and raw materials. |
(c) Pro forma adjusted to exclude the impact 2Q17 Rotterdam planned maintenance and 2Q18 and 3Q18 Rotterdam outages onset by 3rd party constraints. |
(d) Pro forma adjusted to exclude the impact from Hurricane Harvey in 3Q17. |
(e) Pro forma adjusted to exclude the impact from planned maintenance and unplanned weather related and other outages in 4Q17. |
(f) Pro forma adjusted to exclude the impact from planned maintenance in 2Q18. |
Table 4 – Reconciliation of U.S. GAAP to Non-GAAP Measures | ||||||||||||||||
Income Tax | Diluted (Loss) Income | |||||||||||||||
EBITDA | (Expense) Benefit | Net (Loss) Income | Per Share | |||||||||||||
Three months ended | Three months ended | Three months ended | Three months ended | |||||||||||||
December 31, | December 31, | December 31, | December 31, | |||||||||||||
In millions, except per share amounts | 2018 | 2017 | 2018 | 2017 | 2018 | 2017 | 2018 | 2017 | ||||||||
Net (loss) income | $ (315) | $ 287 | $ (315) | $ 287 | $(1.33) | $1.17 | ||||||||||
Net income attributable to noncontrolling interests | (25) | (41) | (25) | (41) | (0.11) | (0.17) | ||||||||||
Net (loss) income attributable to Huntsman Corporation | (340) | 246 | (340) | 246 | (1.43) | 1.00 | ||||||||||
Interest expense from continuing operations | 29 | 31 | ||||||||||||||
Interest expense from discontinued operations(3) | 6 | 11 | ||||||||||||||
Income tax expense (benefit) from continuing operations | 13 | (14) | $ (13) | $ 14 | ||||||||||||
Income tax (benefit) expense from discontinued operations(3) | (18) | 26 | ||||||||||||||
Depreciation and amortization from continuing operations | 93 | 84 | ||||||||||||||
Depreciation and amortization from discontinued operations(3) | - | - | ||||||||||||||
Acquisition and integration expenses and purchase accounting adjustments | (1) | 2 | (1) | (1) | (2) | 1 | (0.01) | - | ||||||||
EBITDA / Loss (income) from discontinued operations, net of tax(3) | 418 | (94) | N/A | N/A | 406 | (57) | 1.71 | (0.23) | ||||||||
Noncontrolling interest of discontinued operations(1)(3) | 10 | 31 | N/A | N/A | 10 | 31 | 0.04 | 0.13 | ||||||||
U.S. tax reform impact on noncontrolling interest | - | (6) | N/A | N/A | - | (6) | - | (0.02) | ||||||||
U.S. tax reform impact on tax expense | N/A | N/A | (17) | (52) | (17) | (52) | (0.07) | (0.21) | ||||||||
Gain on disposition of businesses/assets | - | (1) | - | - | - | (1) | - | - | ||||||||
Fair value adjustments to Venator Investment (a) | 62 | - | - | - | 62 | - | 0.26 | - | ||||||||
Loss on early extinguishment of debt | - | 18 | - | (7) | - | 11 | - | 0.04 | ||||||||
Expenses associated with merger, net of tax | - | 10 | - | (9) | - | 1 | - | - | ||||||||
Certain legal and other settlements and related income | (3) | (12) | - | 4 | (3) | (8) | (0.01) | (0.03) | ||||||||
Net plant incident costs | 1 | 3 | - | (2) | 1 | 1 | - | - | ||||||||
Amortization of pension and postretirement actuarial losses | 18 | 18 | (2) | (5) | 16 | 13 | 0.07 | 0.05 | ||||||||
Restructuring, impairment and plant closing and transition (credits) costs | (13) | 7 | 3 | (1) | (10) | 6 | (0.04) | 0.02 | ||||||||
Adjusted(1) | $ 275 | $ 360 | $ (30) | $ (59) | $ 123 | $ 186 | $ 0.52 | $0.76 | ||||||||
Adjusted income tax expense(1) | $ 30 | $ 59 | ||||||||||||||
Net income attributable to noncontrolling interests, net of tax | 25 | 41 | ||||||||||||||
Noncontrolling interest of discontinued operations(1)(3) | (10) | (31) | ||||||||||||||
U.S. tax reform impact on noncontrolling interest | - | 6 | ||||||||||||||
Adjusted pre-tax income(1) | $ 168 | $ 261 | ||||||||||||||
Adjusted effective tax rate(4) | 18% | 23% | ||||||||||||||
Effective tax rate | 13% | (6%) | ||||||||||||||
Income Tax | Diluted Income | |||||||||||||||
EBITDA | (Expense) Benefit | Net Income | Per Share | |||||||||||||
Twelve months ended | Twelve months ended | Twelve months ended | Twelve months ended | |||||||||||||
December 31, | December 31, | December 31, | December 31, | |||||||||||||
In millions, except per share amounts | 2018 | 2017 | 2018 | 2017 | 2018 | 2017 | 2018 | 2017 | ||||||||
Net income | $ 650 | $ 741 | $ 650 | $ 741 | $ 2.69 | $3.04 | ||||||||||
Net income attributable to noncontrolling interests | (313) | (105) | (313) | (105) | (1.30) | (0.43) | ||||||||||
Net income attributable to Huntsman Corporation | 337 | 636 | 337 | 636 | 1.39 | 2.61 | ||||||||||
Interest expense from continuing operations | 115 | 165 | ||||||||||||||
Interest expense from discontinued operations(3) | 36 | 19 | ||||||||||||||
Income tax expense from continuing operations | 97 | 64 | (97) | (64) | ||||||||||||
Income tax expense from discontinued operations(3) | 34 | 67 | ||||||||||||||
Depreciation and amortization from continuing operations | 343 | 319 | ||||||||||||||
Depreciation and amortization from discontinued operations(3) | - | 68 | ||||||||||||||
Acquisition and integration expenses and purchase accounting adjustments | 9 | 19 | (3) | (5) | 6 | 14 | 0.02 | 0.06 | ||||||||
EBITDA / Loss (income) from discontinued operations, net of tax(3) | 125 | (312) | N/A | N/A | 195 | (158) | 0.81 | (0.65) | ||||||||
Noncontrolling interest of discontinued operations(1)(3) | 232 | 49 | N/A | N/A | 232 | 49 | 0.96 | 0.20 | ||||||||
U.S. tax reform impact on noncontrolling interest | - | (6) | N/A | N/A | - | (6) | - | (0.02) | ||||||||
U.S. tax reform impact on tax expense | N/A | N/A | 32 | (52) | 32 | (52) | 0.13 | (0.21) | ||||||||
Release of significant income tax valuation allowances (b) | N/A | N/A | (119) | - | (119) | - | (0.50) | - | ||||||||
Gain on disposition of businesses/assets | - | (9) | - | - | - | (9) | - | (0.04) | ||||||||
Fair value adjustments to Venator Investment (a) | 62 | - | - | - | 62 | - | 0.26 | - | ||||||||
Loss on early extinguishment of debt | 3 | 54 | (1) | (19) | 2 | 35 | 0.01 | 0.14 | ||||||||
Expenses associated with merger | 2 | 28 | - | (10) | 2 | 18 | 0.01 | 0.07 | ||||||||
Certain legal and other settlements and related expenses (income) | 6 | (11) | (2) | 4 | 4 | (7) | 0.02 | (0.03) | ||||||||
Net plant incident costs | 1 | 16 | - | (6) | 1 | 10 | - | 0.04 | ||||||||
Amortization of pension and postretirement actuarial losses | 71 | 73 | (14) | (16) | 57 | 57 | 0.24 | 0.23 | ||||||||
Restructuring, impairment and plant closing and transition (credits) costs | (4) | 20 | 1 | (3) | (3) | 17 | (0.01) | 0.07 | ||||||||
Adjusted(1) | $1,469 | $1,259 | $(203) | $(171) | $ 808 | $ 604 | $ 3.34 | $2.48 | ||||||||
Adjusted income tax expense(1) | $ 203 | $ 171 | ||||||||||||||
Net income attributable to noncontrolling interests, net of tax | 313 | 105 | ||||||||||||||
Noncontrolling interest of discontinued operations(1)(3) | (232) | (49) | ||||||||||||||
U.S. tax reform impact on noncontrolling interest | - | 6 | ||||||||||||||
Adjusted pre-tax income(1) | $1,092 | $ 837 | ||||||||||||||
Adjusted effective tax rate(4) | 19% | 20% | ||||||||||||||
Effective tax rate | 10% | 10% | ||||||||||||||
(a) Represents the changes in market value in Huntsman's remaining interesting in Venator. |
(b) During the twelve months ended December 31, 2018, we released $119 million of valuation allowances in Switzerland, the U.K., and Luxembourg. We eliminated the effect of this significant change in tax valuation allowances from our presentation of adjusted net income to allow investors to better compare our ongoing financial performance from period to period. We do not adjust for insignificant changes in tax valuation allowances because we do not believe this provides more meaningful information than is provided under GAAP. |
See end of press release for footnote explanations |
Table 5 – Selected Balance Sheet Items | |||||||
December 31, | September 30, | December 31, | |||||
In millions | 2018 | 2018 | 2017 | ||||
Cash | $ 340 | $ 446 | $ 481 | ||||
Accounts and notes receivable, net | 1,272 | 1,394 | 1,283 | ||||
Inventories | 1,134 | 1,231 | 1,073 | ||||
Other current assets | 212 | 230 | 262 | ||||
Current assets held for sale | - | 2,916 | 2,880 | ||||
Property, plant and equipment, net | 3,064 | 3,004 | 3,098 | ||||
Other noncurrent assets | 1,931 | 1,675 | 1,167 | ||||
Total assets | $ 7,953 | $ 10,896 | $ 10,244 | ||||
Accounts payable | $ 961 | $ 998 | $ 964 | ||||
Other current liabilities | 554 | 540 | 569 | ||||
Current portion of debt | 96 | 200 | 40 | ||||
Current liabilities held for sale | - | 1,564 | 1,692 | ||||
Long-term debt | 2,224 | 2,277 | 2,258 | ||||
Other noncurrent liabilities | 1,369 | 1,353 | 1,350 | ||||
Huntsman Corporation stockholders' equity | 2,520 | 2,958 | 2,620 | ||||
Noncontrolling interests in subsidiaries | 229 | 1,006 | 751 | ||||
Total liabilities and equity | $ 7,953 | $ 10,896 | $ 10,244 | ||||
Table 6 – Outstanding Debt | ||||||
December 31, | September 30, | December 31, | ||||
In millions | 2018 | 2018 | 2017 | |||
Debt: | ||||||
Revolving credit facility | $ 50 | $ 175 | $ - | |||
Accounts receivable programs | 252 | 269 | 180 | |||
Senior notes | 1,892 | 1,917 | 1,927 | |||
Variable interest entities | 86 | 94 | 107 | |||
Other debt | 40 | 22 | 84 | |||
Total debt - excluding affiliates | 2,320 | 2,477 | 2,298 | |||
Total cash | 340 | 446 | 481 | |||
Net debt - excluding affiliates(5) | $ 1,980 | $ 2,031 | $ 1,817 | |||
LTM Adjusted EBITDA(1) | $ 1,469 | $ 1,554 | $ 1,259 | |||
LTM Net income | 650 | 1,252 | 741 | |||
Net debt - excluding affiliates / LTM Adjusted EBITDA(1)(5) | 1.3x | 1.3x | 1.4x | |||
Total debt - excluding affiliates / LTM Net income | 3.6x | 2.0x | 3.1x | |||
Table 7 – Summarized Statement of Cash Flows | ||||||||
Three months ended | Twelve months ended | |||||||
December 31, | December 31, | |||||||
In millions | 2018 | 2017 | 2018 | 2017 | ||||
Total cash at beginning of period(a) | $ 697 | $ 637 | $ 719 | $ 425 | ||||
Net cash provided by operating activities - continuing operations | 329 | 304 | 963 | 842 | ||||
Net cash (used in) provided by operating activities - discontinued operations(3) | (56) | 172 | 244 | 377 | ||||
Net cash used in investing activities - continuing operations | (131) | (120) | (677) | (265) | ||||
Net cash used in investing activities - discontinued operations(3) | (31) | (110) | (296) | (159) | ||||
Net cash used in financing activities | (307) | (170) | (424) | (519) | ||||
Effect of exchange rate changes on cash | (7) | 6 | (35) | 18 | ||||
Deconsolidation of cash, cash equivalents and restricted cash from Venator (a) | (154) | - | (154) | - | ||||
- | ||||||||
Total cash at end of period(a) | $ 340 | $ 719 | $ 340 | $ 719 | ||||
Supplemental cash flow information - continuing operations: | ||||||||
Cash paid for interest | $ (44) | $ (47) | $ (117) | $ (169) | ||||
Cash paid for income taxes | (24) | (45) | (141) | (9) | ||||
Cash paid for capital expenditures | (133) | (123) | (313) | (282) | ||||
Depreciation and amortization | 93 | 84 | 343 | 319 | ||||
Changes in primary working capital: | ||||||||
Accounts and notes receivable | 116 | (35) | (13) | (183) | ||||
Inventories | 84 | 14 | (86) | (104) | ||||
Accounts payable | (54) | 59 | 8 | 154 | ||||
Total cash received from (used in) primary working capital | $ 146 | $ 38 | $ (91) | $ (133) | ||||
Three months ended | Twelve months ended | |||||||
December 31, | December 31, | |||||||
2018 | 2017 | 2018 | 2017 | |||||
Free cash flow(2): | ||||||||
Net cash provided by operating activities | $ 329 | $ 304 | $ 963 | $ 842 | ||||
Capital expenditures | (133) | (123) | (313) | (282) | ||||
All other investing activities, excluding acquisition and disposition activities(b) | 2 | (1) | 2 | 6 | ||||
Non-recurring merger costs(c) | - | 10 | 2 | 28 | ||||
Proceeds from forward sale of Venator shares(d) | (3) | - | (3) | - | ||||
Total free cash flow | $ 195 | $ 190 | $ 651 | $ 594 | ||||
Adjusted EBITDA | $ 275 | $ 360 | $ 1,469 | $1,259 | ||||
Capital expenditures | (133) | (123) | (313) | (282) | ||||
Capital reimbursements | 4 | 2 | 8 | 3 | ||||
Interest | (44) | (47) | (117) | (169) | ||||
Income taxes | (24) | (45) | (141) | (9) | ||||
Primary working capital change | 146 | 38 | (91) | (133) | ||||
Restructuring | (4) | (10) | (11) | (36) | ||||
Pensions | (30) | (26) | (125) | (111) | ||||
Maintenance & other | 5 | 41 | (28) | 72 | ||||
Total free cash flow(2) | $ 195 | $ 190 | $ 651 | $ 594 | ||||
Total free cash flow(2) | $ 195 | $ 190 | $ 651 | $ 594 | ||||
/ Adjusted EBITDA | 275 | 360 | 1,469 | 1,259 | ||||
Free cash flow conversion | 70.9% | 52.8% | 44.3% | 47.2% | ||||
(a) Includes restricted cash and cash held in discontinued operations until the Deconsolidation of Venator. |
(b) Represents "Acquisition of business, net of cash acquired", "Cash received from purchase price adjustment for business acquired", and "Proceeds from sale of business/assets". |
(c) Represents payments associated with one-time costs of the terminated merger of equals with Clariant. |
(d) Represents payments received from forward sale contract of Venator shares in December 2018. |
Footnotes | |
(1) | We use adjusted EBITDA to measure the operating performance of our business and for planning and evaluating the performance of our business segments. We provide adjusted net income because we feel it provides meaningful insight for the investment community into the performance of our business. We believe that net income (loss) is the performance measure calculated and presented in accordance with generally accepted accounting principles in the U.S. ("GAAP") that is most directly comparable to adjusted EBITDA and adjusted net income (loss). Additional information with respect to our use of each of these financial measures follows: |
Adjusted EBITDA, adjusted net income (loss) and adjusted diluted income (loss) per share, as used herein, are not necessarily comparable to other similarly titled measures of other companies. | |
Adjusted EBITDA is computed by eliminating the following from net income (loss): (a) net income attributable to noncontrolling interests, net of tax; (b) interest; (c) income taxes; (d) depreciation and amortization (e) amortization of pension and postretirement actuarial losses (gains); (f) restructuring, impairment and plant closing costs (credits); and further adjusted for certain other items set forth in reconciliation of adjusted EBITDA to net income (loss) in Table 4 above. | |
Adjusted net income (loss) and adjusted diluted income (loss) per share are computed by eliminating the after tax impact of the following items from net income (loss): (a) net income attributable to noncontrolling interest; (b) amortization of pension and postretirement actuarial losses (gains); (c) restructuring, impairment and plant closing costs (credits); and further adjusted for certain other items set forth in reconciliation of adjusted EBITDA to net income (loss) in Table 4 above. The income tax impacts, if any, of each adjusting item represent a ratable allocation of the total difference between the unadjusted tax expense and the total adjusted tax expense, computed without consideration of any adjusting items using a with and without approach. | |
We do not provide reconciliations for adjusted EBITDA, adjusted net income (loss) or adjusted diluted income (loss) per share on a forward-looking basis because we are unable to provide a meaningful or accurate calculation or estimation of reconciling items and the information is not available without unreasonable effort. This is due to the inherent difficulty of forecasting the timing and amount of certain items, such as, but not limited to, (a) business acquisition and integration expenses and purchase accounting adjustments, (b) merger costs, and (c) certain legal and other settlements and related costs. Each of such adjustments has not yet occurred, are out of our control and/or cannot be reasonably predicted. For the same reasons, we are unable to address the probable significance of the unavailable information. | |
(2) | Management internally uses a free cash flow measure: (a) to evaluate the Company's liquidity, (b) to evaluate strategic investments, (c) to plan stock buyback and dividend levels and (d) to evaluate the Company's ability to incur and service debt. Free cash flow is not a defined term under U.S. GAAP, and it should not be inferred that the entire free cash flow amount is available for discretionary expenditures. The Company defines free cash flow as cash flow provided by operating activities less cash flow used in investing activities, excluding acquisition/disposition activities and non-recurring separation costs. Free cash flow is typically derived directly from the Company's condensed consolidated statement of cash flows; however, it may be adjusted for items that affect comparability between periods. |
(3) | During the third quarter of 2017 we separated our Pigments and Additives division through an Initial Public Offering of Venator Materials PLC. Additionally, during the first quarter 2010 we closed our Australian styrenics operations. Results from these associated businesses are treated as discontinued operations. |
(4) | We believe adjusted effective tax rate provides improved comparability between periods through the exclusion of certain items that management believes are not indicative of the businesses' operational profitability and that may obscure underlying business results and trends. In our view, effective tax rate is the performance measure calculated and presented in accordance with U.S. GAAP that is most directly comparable to adjusted effective tax rate. |
The reconciliation of historical adjusted effective tax rate and effective tax rate is set forth in Table 4 above. We do not provide reconciliations for adjusted effective tax rate on a forward-looking basis because we are unable to provide a meaningful or accurate calculation or estimation of reconciling items and the information is not available without unreasonable effort. This is due to the inherent difficulty of forecasting the timing and amount of certain items, such as, but not limited to, (a) business acquisition and integration expenses, (b) merger costs, and (c) certain legal and other settlements and related costs. Each of such adjustments has not yet occurred, are out of our control and/or cannot be reasonably predicted. For the same reasons, we are unable to address the probable significance of the unavailable information. | |
(5) | Net debt is a measure we use to monitor how much debt we have after taking into account our total cash. We use it as an indicator of our overall financial position, and calculate it by taking our total debt, including the current portion, and subtracting total cash. |
About Huntsman:
Huntsman Corporation is a publicly traded global manufacturer and marketer of differentiated and specialty chemicals with 2018 revenues more than $9 billion. Our chemical products number in the thousands and are sold worldwide to manufacturers serving a broad and diverse range of consumer and industrial end markets. We operate more than 75 manufacturing, R&D and operations facilities in approximately 30 countries and employ approximately 10,000 associates within our four distinct business divisions. For more information about Huntsman, please visit the company's website at www.huntsman.com.
Social Media:
Twitter: www.twitter.com/Huntsman_Corp
Facebook: www.facebook.com/huntsmancorp
LinkedIn: www.linkedin.com/company/huntsman
Forward-Looking Statements:
Certain information in this release constitutes forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. These statements are based on management's current beliefs and expectations. The forward-looking statements in this release are subject to uncertainty and changes in circumstances and involve risks and uncertainties that may affect the company's operations, markets, products, services, prices and other factors as discussed under the caption "Risk Factors" in the Huntsman companies' filings with the U.S. Securities and Exchange Commission. Significant risks and uncertainties may relate to, but are not limited to, volatile global economic conditions, cyclical and volatile product markets, disruptions in production at manufacturing facilities, reorganization or restructuring of Huntsman's operations, including any delay of, or other negative developments affecting the ability to implement cost reductions and manufacturing optimization improvements in Huntsman businesses and realize anticipated cost savings, and other financial, economic, competitive, environmental, political, legal, regulatory and technological factors. The company assumes no obligation to provide revisions to any forward-looking statements should circumstances change, except as otherwise required by applicable laws.
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SOURCE Huntsman Corporation
Article Date
2/12/2019Huntsman to Discuss Fourth Quarter 2018 Results on February 12, 2019
Source: PR Newswire
THE WOODLANDS, Texas, Jan. 3, 2019 /PRNewswire/ -- Huntsman Corporation (NYSE: HUN) will hold a conference call to discuss its fourth quarter 2018 financial results on Tuesday, February 12, 2019 at 10:00 a.m. ET. Fourth quarter 2018 results will be released to the public at approximately 6:00 a.m. ET that day via PR Newswire.
Call-in numbers for the conference call: | |
U.S. participants | (888) 713 - 4213 |
International participants | (617) 213 - 4865 |
Passcode | 485 932 39# |
In order to facilitate the registration process, you may use the following link to pre-register for the conference call. Callers who pre-register will be given a unique PIN to gain immediate access to the call and bypass the live operator. You may pre-register at any time, including up to and after the call start time. To pre-register, please go to:
https://www.theconferencingservice.com/prereg/key.process?key=PVAHR743N
Webcast Information
The conference call will be available via webcast and can be accessed from the company's website at ir.huntsman.com.
Replay Information
The conference call will be available for replay beginning February 12, 2019 and ending February 19, 2019.
Call-in numbers for the replay: | |
U.S. participants | (888) 286 - 8010 |
International participants | (617) 801 - 6888 |
Replay code | 11329067 |
About Huntsman:
Huntsman Corporation is a publicly traded global manufacturer and marketer of differentiated and specialty chemicals with 2017 revenues more than $8 billion. Our chemical products number in the thousands and are sold worldwide to manufacturers serving a broad and diverse range of consumer and industrial end markets. We operate more than 75 manufacturing, R&D and operations facilities in approximately 30 countries and employ approximately 10,000 associates within our four distinct business divisions. For more information about Huntsman, please visit the company's website at www.huntsman.com.
Social Media:
Twitter: www.twitter.com/Huntsman_Corp
Facebook: www.facebook.com/huntsmancorp
LinkedIn: www.linkedin.com/company/huntsman
Forward-Looking Statements:
Certain information in this release constitutes forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. These statements are based on management's current beliefs and expectations. The forward-looking statements in this release are subject to uncertainty and changes in circumstances and involve risks and uncertainties that may affect the company's operations, markets, products, services, prices and other factors as discussed under the caption "Risk Factors" in the Huntsman companies' filings with the U.S. Securities and Exchange Commission. Significant risks and uncertainties may relate to, but are not limited to, volatile global economic conditions, cyclical and volatile product markets, disruptions in production at manufacturing facilities, reorganization or restructuring of Huntsman's operations, including any delay of, or other negative developments affecting the ability to implement cost reductions and manufacturing optimization improvements in Huntsman businesses and realize anticipated cost savings, and other financial, economic, competitive, environmental, political, legal, regulatory and technological factors. The company assumes no obligation to provide revisions to any forward-looking statements should circumstances change, except as otherwise required by applicable laws.
View original content to download multimedia:http://www.prnewswire.com/news-releases/huntsman-to-discuss-fourth-quarter-2018-results-on-february-12-2019-300772828.html
SOURCE Huntsman Corporation
Article Date
1/4/2019Huntsman Announces Fourth Quarter 2018 Common Dividend
Source: PR Newswire
THE WOODLANDS, Texas, Nov. 7, 2018 /PRNewswire/ -- Huntsman Corporation (NYSE: HUN) today announced that its board of directors has declared a $0.1625 per share cash dividend on its common stock. The dividend is payable on December 31, 2018, to stockholders of record as of December 14, 2018.
About Huntsman:
Huntsman Corporation is a publicly traded global manufacturer and marketer of differentiated and specialty chemicals with 2017 revenues more than $8 billion. Our chemical products number in the thousands and are sold worldwide to manufacturers serving a broad and diverse range of consumer and industrial end markets. We operate more than 75 manufacturing, R&D and operations facilities in approximately 30 countries and employ approximately 10,000 associates within our four distinct business divisions. For more information about Huntsman, please visit the company's website at www.huntsman.com.
Social Media:
Twitter: www.twitter.com/Huntsman_Corp
Facebook: www.facebook.com/huntsmancorp
LinkedIn: www.linkedin.com/company/huntsman
Forward-Looking Statements:
Certain information in this release constitutes forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. These statements are based on management's current beliefs and expectations. The forward-looking statements in this release are subject to uncertainty and changes in circumstances and involve risks and uncertainties that may affect the company's operations, markets, products, services, prices and other factors as discussed under the caption "Risk Factors" in the Huntsman companies' filings with the U.S. Securities and Exchange Commission. Significant risks and uncertainties may relate to, but are not limited to, volatile global economic conditions, cyclical and volatile product markets, disruptions in production at manufacturing facilities, reorganization or restructuring of Huntsman's operations, including any delay of, or other negative developments affecting the ability to implement cost reductions and manufacturing optimization improvements in Huntsman businesses and realize anticipated cost savings, and other financial, economic, competitive, environmental, political, legal, regulatory and technological factors. The company assumes no obligation to provide revisions to any forward-looking statements should circumstances change, except as otherwise required by applicable laws.
View original content to download multimedia:http://www.prnewswire.com/news-releases/huntsman-announces-fourth-quarter-2018-common-dividend-300745931.html
SOURCE Huntsman Corporation
Article Date
11/7/201810/1/2018 - Huntsman Publishes 2017 Sustainability Report
Huntsman Publishes 2017 Sustainability Report
Source: PR Newswire
THE WOODLANDS, Texas, Oct. 1, 2018 /PRNewswire/ -- Huntsman Corporation (NYSE: HUN) today published its 2017 corporate sustainability report, "Bringing Chemistry to Life: Growth and Sustainability in Asia Pacific," on its web site at www.huntsman.com/sustainability. The report discusses Huntsman's commitment to Asia Pacific (APAC) and its role in the economic and social development of the region.
Huntsman has regional headquarters, production sites, technology centers, sales offices and customer service centers throughout APAC. Approximately 3,500 Huntsman employees work and live in APAC, and more than one-quarter of the company's $8 billion in revenues were generated in the region in 2017.
"Over half the world's population lives in APAC, and the region's growth is phenomenal," said Corporate Sustainability Officer Ron Gerrard. "However, such extraordinary growth can bring with it challenging socio-economic trends, like increased urbanization, greater need for adequate food and clean water, and more transportation, energy and power requirements. It gives me great pride to see what Huntsman's products, production facilities and associates in the region are doing to address these issues and to provide solutions that reduce negative impacts and create a more sustainable future."
The 2017 report includes Huntsman's annual Communication on Progress to the United Nations Global Compact, as well as a variety of stories that demonstrate the company's commitment to the United Nations Sustainable Development Goals (SDGs).
This is Huntsman's eighth sustainability report since launching its corporate sustainability initiative in 2010.
About Huntsman:
Huntsman Corporation is a publicly traded global manufacturer and marketer of differentiated and specialty chemicals with 2017 revenues of approximately $8 billion. Our chemical products number in the thousands and are sold worldwide to manufacturers serving a broad and diverse range of consumer and industrial end markets. We operate more than 75 manufacturing, R&D and operations facilities in approximately 30 countries and employ approximately 10,000 associates within our four distinct business divisions. For more information about Huntsman, please visit the company's website at www.huntsman.com.
Social Media:
Twitter: www.twitter.com/Huntsman_Corp
Facebook: www.facebook.com/huntsmancorp
LinkedIn: www.linkedin.com/company/huntsman
Forward-Looking Statements:
Statements in this release that are not historical are forward-looking statements. These statements are based on management's current beliefs and expectations. The forward-looking statements in this release are subject to uncertainty and changes in circumstances and involve risks and uncertainties that may affect the company's operations, markets, products, services, prices and other factors as discussed in the Huntsman companies' filings with the U.S. Securities and Exchange Commission. Significant risks and uncertainties may relate to, but are not limited to, volatile global economic conditions, cyclical and volatile product markets, disruptions in production at manufacturing facilities, reorganization or restructuring of Huntsman's operations, the ability to implement cost reductions and manufacturing optimization improvements in Huntsman businesses, and other financial, economic, competitive, environmental, political, legal, regulatory and technological factors. The company assumes no obligation to provide revisions to any forward-looking statements should circumstances change, except as otherwise required by applicable laws.
View original content to download multimedia:http://www.prnewswire.com/news-releases/huntsman-publishes-2017-sustainability-report-300720139.html
SOURCE Huntsman Corporation
Article Date
10/1/20189/5/2018 - Huntsman Confirms Third Quarter 2018 Outlook
Huntsman Confirms Third Quarter 2018 Outlook
Source: PR Newswire
THE WOODLANDS, Texas, Sept. 5, 2018 /PRNewswire/ -- Huntsman Corporation (NYSE: HUN) management will be meeting with investors at the UBS Global Chemicals Conference and RBC Capital Markets Industrials Conference over the coming days. In light of recent press commentary specifically related to component polymeric MDI pricing, Huntsman confirms its outlook for the third quarter 2018 as provided on its second quarter earnings call. The recent price declines in component polymeric MDI in Europe and Asia are not unexpected and are in-line with Huntsman's previously shared outlook for the Polyurethanes segment. Huntsman continues to focus on growing its downstream differentiated businesses and delivering on its 2020 plan presented at its May 2018 Investor Day.
About Huntsman:
Huntsman Corporation is a publicly traded global manufacturer and marketer of differentiated and specialty chemicals with 2017 revenues more than $8 billion. Our chemical products number in the thousands and are sold worldwide to manufacturers serving a broad and diverse range of consumer and industrial end markets. We operate more than 75 manufacturing, R&D and operations facilities in approximately 30 countries and employ approximately 10,000 associates within our four distinct business divisions. For more information about Huntsman, please visit the company's website at www.huntsman.com.
Social Media:
Twitter: www.twitter.com/Huntsman_Corp
Facebook: www.facebook.com/huntsmancorp
LinkedIn: www.linkedin.com/company/huntsman
Forward-Looking Statements:
Certain information in this release constitutes forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. These statements are based on management's current beliefs and expectations. The forward-looking statements in this release are subject to uncertainty and changes in circumstances and involve risks and uncertainties that may affect the company's operations, markets, products, services, prices and other factors as discussed under the caption "Risk Factors" in the Huntsman companies' filings with the U.S. Securities and Exchange Commission. Significant risks and uncertainties may relate to, but are not limited to, volatile global economic conditions, cyclical and volatile product markets, disruptions in production at manufacturing facilities, reorganization or restructuring of Huntsman's operations, including any delay of, or other negative developments affecting the ability to implement cost reductions and manufacturing optimization improvements in Huntsman businesses and realize anticipated cost savings, and other financial, economic, competitive, environmental, political, legal, regulatory and technological factors. The company assumes no obligation to provide revisions to any forward-looking statements should circumstances change, except as otherwise required by applicable laws.
View original content with multimedia:http://www.prnewswire.com/news-releases/huntsman-confirms-third-quarter-2018-outlook-300707013.html
SOURCE Huntsman Corporation
Article Date
9/5/2018Huntsman Opens Formulations Manufacturing Facility In Vietnam
Source: PR Newswire
HO CHI MINH CITY, Vietnam, Aug. 22, 2018 /PRNewswire/ -- Huntsman Corporation (NYSE: HUN) announced today that it has opened a multi-purpose facility at the Amata Vietnam Industrial Park, near Ho Chi Minh City, Vietnam. The site is a greenfield investment, will house Huntsman's Polyurethanes and Advanced Materials businesses, and comprises manufacturing; R&D capabilities; a technical service center; warehouse and distribution space and a commercial office.
Commenting on the new facility, Huntsman's CEO Asia Pacific and President of the Polyurethanes business, Tony Hankins, said: "Vietnam is one of the largest and fastest growing countries in Asia Pacific. For Polyurethanes, we've seen double digit growth rates for a sustained period and fully expect this to continue. At the new site, we'll manufacture formulated systems for the footwear and automotive markets; rigid insulation foam used in construction and cold chain applications; and simulated wood for the furniture market. These products will be consumed primarily in Vietnam, with the balance being exported to Cambodia. The facility will enable Huntsman to collaborate more effectively with Vietnamese customers and will also strengthen our strategy of globalizing downstream bolt-on acquisitions."
Scott Wright, President of Huntsman's Advanced Materials business added: "This is the first manufacturing expansion investment outside China for our business in Asia Pacific and we see many opportunities in Vietnam to support large-scale infrastructure and construction projects in one of the fastest growing economies in the region. The new plant will give us the capability to efficiently supply customers across the ASEAN region with high quality electrical insulation, coatings and adhesive solutions that will ensure these ambitious projects are implemented successfully."
In addition to this facility, Huntsman has a distribution warehouse located in the inland container depot at Long Binh - Dong Nai Province, and a site in Hanoi which offers technical service and comprises warehouse and distribution space and a commercial office.
About Huntsman:
Huntsman Corporation is a publicly traded global manufacturer and marketer of differentiated and specialty chemicals with 2017 revenues of more than $8 billion. Our chemical products number in the thousands and are sold worldwide to manufacturers serving a broad and diverse range of consumer and industrial end markets. We operate more than 75 manufacturing, R&D and operations facilities in approximately 30 countries and employ approximately 10,000 associates within our four distinct business divisions. For more information about Huntsman, please visit the company's website at www.huntsman.com.
Social Media:
Twitter: www.twitter.com/Huntsman_Corp
Facebook: www.facebook.com/huntsmancorp
LinkedIn: www.linkedin.com/company/huntsman
Forward-Looking Statements:
Certain information in this release constitutes forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. These statements are based on management's current beliefs and expectations. The forward-looking statements in this release are subject to uncertainty and changes in circumstances and involve risks and uncertainties that may affect the company's operations, markets, products, services, prices and other factors as discussed under the caption "Risk Factors" in the Huntsman companies' filings with the U.S. Securities and Exchange Commission. Significant risks and uncertainties may relate to, but are not limited to, volatile global economic conditions, cyclical and volatile product markets, disruptions in production at manufacturing facilities, reorganization or restructuring of Huntsman's operations, including any delay of, or other negative developments affecting the ability to implement cost reductions and manufacturing optimization improvements in Huntsman businesses and realize anticipated cost savings, and other financial, economic, competitive, environmental, political, legal, regulatory and technological factors. The company assumes no obligation to provide revisions to any forward-looking statements should circumstances change, except as otherwise required by applicable laws.
View original content with multimedia:http://www.prnewswire.com/news-releases/huntsman-opens-formulations-manufacturing-facility-in-vietnam-300701317.html
SOURCE Huntsman Corporation
Article Date
8/23/2018Huntsman Announces Third Quarter 2018 Common Dividend
Source: PR Newswire
THE WOODLANDS, Texas, Aug. 9, 2018 /PRNewswire/ -- Huntsman Corporation (NYSE: HUN) today announced that its board of directors has declared a $0.1625 per share cash dividend on its common stock. The dividend is payable on September 28, 2018, to stockholders of record as of September 14, 2018.
About Huntsman:
Huntsman Corporation is a publicly traded global manufacturer and marketer of differentiated and specialty chemicals with 2017 revenues more than $8 billion. Our chemical products number in the thousands and are sold worldwide to manufacturers serving a broad and diverse range of consumer and industrial end markets. We operate more than 75 manufacturing, R&D and operations facilities in approximately 30 countries and employ approximately 10,000 associates within our four distinct business divisions. For more information about Huntsman, please visit the company's website at www.huntsman.com.
Social Media:
Twitter: www.twitter.com/Huntsman_Corp
Facebook: www.facebook.com/huntsmancorp
LinkedIn: www.linkedin.com/company/huntsman
Forward-Looking Statements:
Certain information in this release constitutes forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. These statements are based on management's current beliefs and expectations. The forward-looking statements in this release are subject to uncertainty and changes in circumstances and involve risks and uncertainties that may affect the company's operations, markets, products, services, prices and other factors as discussed under the caption "Risk Factors" in the Huntsman companies' filings with the U.S. Securities and Exchange Commission. Significant risks and uncertainties may relate to, but are not limited to, volatile global economic conditions, cyclical and volatile product markets, disruptions in production at manufacturing facilities, reorganization or restructuring of Huntsman's operations, including any delay of, or other negative developments affecting the ability to implement cost reductions and manufacturing optimization improvements in Huntsman businesses and realize anticipated cost savings, and other financial, economic, competitive, environmental, political, legal, regulatory and technological factors. The company assumes no obligation to provide revisions to any forward-looking statements should circumstances change, except as otherwise required by applicable laws.
View original content with multimedia:http://www.prnewswire.com/news-releases/huntsman-announces-third-quarter-2018-common-dividend-300694907.html
SOURCE Huntsman Corporation
Article Date
8/9/2018Huntsman Announces Strong and Consistent Growth in Second Quarter 2018 Earnings
Source: PR Newswire
THE WOODLANDS, Texas, July 31, 2018 /PRNewswire/ --
Second Quarter 2018 Highlights
|
Three months ended |
Six months ended | |||||||||
|
June 30, |
March 31, |
June 30, | ||||||||
|
In millions, except per share amounts |
2018 |
2017 |
2018 |
2018 |
2017 | |||||
|
Revenues |
$ 2,404 |
$ 2,054 |
$ 2,295 |
$4,699 |
$ 3,986 | |||||
|
Net income |
$ 623 |
$ 183 |
$ 350 |
$ 973 |
$ 275 | |||||
|
Adjusted net income(1) |
$ 246 |
$ 144 |
$ 237 |
$ 483 |
$ 254 | |||||
|
Diluted income per share |
$ 1.71 |
$ 0.69 |
$ 1.11 |
$ 2.82 |
$ 1.00 | |||||
|
Adjusted diluted income per share(1) |
$ 1.01 |
$ 0.59 |
$ 0.96 |
$ 1.98 |
$ 1.04 | |||||
|
Adjusted EBITDA(1) |
$ 415 |
$ 299 |
$ 405 |
$ 820 |
$ 559 | |||||
|
Net cash provided by operating activities |
||||||||||
|
from continuing operations |
$ 228 |
$ 207 |
$ 111 |
$ 339 |
$ 277 | |||||
|
Free cash flow(2) |
$ 174 |
$ 154 |
$ 56 |
$ 230 |
$ 177 | |||||
|
See end of press release for footnote explanations |
||||||||||
Huntsman Corporation (NYSE: HUN) today reported second quarter 2018 results with revenues of $2,404 million, net income of $623 million and adjusted EBITDA of $415 million.
Peter R. Huntsman, Chairman, President and CEO, commented:
"We had a strong second quarter that is wholly in line with the outlook we shared at our recent Investor Day, which focused on the opportunity for significant value creation. Our Polyurethanes business continues its growth in variants and systems and enjoys the back drop of good supply and demand fundamentals, foreseeable for the long term. We completed our multiyear scheduled turnaround in Performance Products and each of our divisions continues to see a positive outlook. We delivered strong free cash flow and our balance sheet remains solidly within investment grade metrics. We are committed to our balanced approach of delivering core growth and executing on sensible opportunities in our downstream businesses, share buybacks, and creating overall strong returns for shareholders."
Segment Analysis for 2Q18 Compared to 2Q17
Polyurethanes
The increase in revenues in our Polyurethanes segment for the three months ended June 30, 2018 compared to the same period of 2017 was due to higher average selling prices and higher sales volumes. MDI average selling prices increased in response to continued strong market conditions. MTBE average selling prices increased primarily as a result of higher pricing for high octane gasoline. MDI sales volumes increased due to increased demand across most major markets. MTBE sales volumes increased due to the impact of maintenance outages during the second quarter of 2017. The increase in segment adjusted EBITDA was primarily due to higher MDI and MTBE margins.
Performance Products
The increase in revenues in our Performance Products segment for the three months ended June 30, 2018 compared to the same period of 2017 was due to higher average selling prices, partially offset by lower sales volumes. Average selling prices increased primarily due to strong market conditions across several of our derivatives businesses and in response to higher raw materials costs. Sales volumes decreased primarily due to the impact of the planned maintenance outage at our Port Neches, Texas facility in the second quarter of 2018, partially offset by higher sales volumes in certain of our specialty amines and maleic anhydride businesses. The decrease in segment adjusted EBITDA was primarily due to lower sales volumes and higher fixed costs attributed to the planned maintenance outage, partially offset by stronger glycol market conditions within intermediates.
Advanced Materials
The increase in revenues in our Advanced Materials segment for the three months ended June 30, 2018, compared to the same period in 2017 was due to higher sales volumes and higher average selling prices. Sales volumes increased across most markets in our core specialty business, but were partially offset by lower sales volumes in our wind market due to challenging industry conditions. Average selling prices increased in response to higher raw material costs and the impact of a weaker U.S. dollar against major international currencies. The increase in segment adjusted EBITDA was primarily due to higher specialty sales volumes, partially offset by higher raw material and fixed costs.
Textile Effects
The increase in revenues in our Textile Effects segment for the three months ended June 30, 2018 compared to the same period of 2017 was due to higher sales volumes and higher average selling prices. Sales volumes increased across most regions. Average selling prices increased in response to higher raw material costs and the impact of a weaker U.S. dollar against major international currencies. The increase in segment adjusted EBITDA was primarily due to higher sales volumes and higher average selling prices, partially offset by higher raw material costs.
Corporate, LIFO and other
For the three months ended June 30, 2018, segment adjusted EBITDA from Corporate and other for Huntsman Corporation increased $11 million to a loss of $39 million from a loss of $50 million in the same period in 2017, primarily due to a LIFO inventory valuation benefit.
Venator
Our former Pigments and Additives segment, now known as Venator, remains classified as held for sale on our balance sheet and treated as discontinued operations on our income statement. Huntsman currently owns 53% of Venator's outstanding shares.
Liquidity, Capital Resources and Outstanding Debt
During the quarter we generated free cash flow of $174 million compared to $154 million a year ago. As of June 30, 2018, we had $1,459 million of combined cash and unused borrowing capacity compared to $1,247 million as of December 31, 2017. On May 21, 2018, we entered into a new $1.2 billion unsecured revolving credit facility that replaced our senior secured credit facility.
During the three months ended June 30, 2018, we spent $54 million on capital expenditures compared to $50 million in the same period of 2017. We expect to spend approximately $325 million on capital expenditures in 2018.
Through the end of the second quarter 2018, we have spent approximately $138 million to repurchase approximately 4.6 million shares. As of the end of the second quarter 2018 we have approximately $862 million remaining on our existing multiyear share repurchase authorization.
Income Taxes
During the three months ended June 30, 2018, we recorded income tax expense of $4 million compared to $24 million during the same period in 2017. In the second quarter 2018, our adjusted effective tax rate was 18%. We expect our 2018 adjusted effective tax rate will be approximately 20% - 22%. We expect our long-term adjusted effective tax rate will be approximately 23% - 25%.
Earnings Conference Call Information
We will hold a conference call to discuss our second quarter 2018 financial results on Tuesday, July 31, 2018 at 11:00 a.m. ET.
|
Call-in numbers for the conference call: | |
|
U.S. participants |
(888) 680 - 0878 |
|
International participants |
(617) 213 - 4855 |
|
Passcode |
445 723 85# |
In order to facilitate the registration process, you may use the following link to pre-register for the conference call. Callers who pre-register will be given a unique PIN to gain immediate access to the call and bypass the live operator. You may pre-register at any time, including up to and after the call start time. To pre-register, please go to: https://www.theconferencingservice.com/prereg/key.process?key=PUEAXYC3M
Webcast Information
The conference call will be available via webcast and can be accessed from the company's website at ir.huntsman.com.
Replay Information
The conference call will be available for replay beginning July 31, 2018 and ending August 7, 2018.
|
Call-in numbers for the replay: | |
|
U.S. participants |
(888) 286 - 8010 |
|
International participants |
(617) 801 - 6888 |
|
Replay code |
29385180 |
Upcoming Conferences
During the third quarter 2018 a member of management is expected to present at:
Jefferies Global Industrials Conference on August 7, 2018
UBS Global Chemicals & Paper and Packaging Conference on September 5, 2018
RBC Capital Markets Industrials Conference on September 6, 2018
A webcast of the presentation, if applicable, along with accompanying materials will be available at ir.huntsman.com.
|
Table 1 – Results of Operations | ||||||||
|
Three months ended |
Six months ended | |||||||
|
June 30, |
June 30, | |||||||
|
In millions, except per share amounts |
2018 |
2017 |
2018 |
2017 | ||||
|
Revenues |
$2,404 |
$2,054 |
$4,699 |
$3,986 | ||||
|
Cost of goods sold |
1,849 |
1,618 |
3,604 |
3,160 | ||||
|
Gross profit |
555 |
436 |
1,095 |
826 | ||||
|
Operating expenses |
254 |
220 |
496 |
439 | ||||
|
Restructuring, impairment and plant closing costs |
1 |
3 |
3 |
12 | ||||
|
Expenses associated with the merger |
1 |
6 |
1 |
6 | ||||
|
Operating income |
299 |
207 |
595 |
369 | ||||
|
Interest expense |
(29) |
(47) |
(56) |
(95) | ||||
|
Equity in income of investment in unconsolidated affiliates |
18 |
3 |
31 |
3 | ||||
|
Loss on early extinguishment of debt |
(3) |
(1) |
(3) |
(1) | ||||
|
Other income, net |
8 |
- |
15 |
4 | ||||
|
Income before income taxes |
293 |
162 |
582 |
280 | ||||
|
Income tax expense |
(4) |
(24) |
(57) |
(43) | ||||
|
Income from continuing operations |
289 |
138 |
525 |
237 | ||||
|
Income from discontinued operations, net of tax(3) |
334 |
45 |
448 |
38 | ||||
|
Net income |
623 |
183 |
973 |
275 | ||||
|
Net income attributable to noncontrolling interests, net of tax |
(209) |
(16) |
(285) |
(32) | ||||
|
Net income attributable to Huntsman Corporation |
$ 414 |
$ 167 |
$ 688 |
$ 243 | ||||
|
Adjusted EBITDA(1) |
$ 415 |
$ 299 |
$ 820 |
$ 559 | ||||
|
Adjusted net income(1) |
$ 246 |
$ 144 |
$ 483 |
$ 254 | ||||
|
Basic income per share |
$ 1.73 |
$ 0.70 |
$ 2.87 |
$ 1.02 | ||||
|
Diluted income per share |
$ 1.71 |
$ 0.69 |
$ 2.82 |
$ 1.00 | ||||
|
Adjusted diluted income per share(1) |
$ 1.01 |
$ 0.59 |
$ 1.98 |
$ 1.04 | ||||
|
Common share information: |
||||||||
|
Basic weighted average shares |
239 |
238 |
240 |
238 | ||||
|
Diluted weighted average shares |
243 |
244 |
244 |
243 | ||||
|
Diluted shares for adjusted diluted income per share |
243 |
244 |
244 |
243 | ||||
|
See end of press release for footnote explanations |
||||||||
|
Table 2 – Results of Operations by Segment | ||||||||||||
|
Three months ended |
Six months ended |
|||||||||||
|
June 30, |
Better / |
June 30, |
Better / | |||||||||
|
In millions |
2018 |
2017 |
(Worse) |
2018 |
2017 |
(Worse) | ||||||
|
Segment Revenues: |
||||||||||||
|
Polyurethanes |
$ 1,313 |
$ 1,022 |
28% |
$ 2,535 |
$ 1,975 |
28% | ||||||
|
Performance Products |
593 |
561 |
6% |
1,196 |
1,094 |
9% | ||||||
|
Advanced Materials |
292 |
260 |
12% |
571 |
519 |
10% | ||||||
|
Textile Effects |
227 |
205 |
11% |
427 |
393 |
9% | ||||||
|
Corporate and eliminations |
(21) |
6 |
n/m |
(30) |
5 |
n/m | ||||||
|
Total |
$ 2,404 |
$ 2,054 |
17% |
$ 4,699 |
$ 3,986 |
18% | ||||||
|
Segment Adjusted EBITDA(1): |
||||||||||||
|
Polyurethanes |
$ 269 |
$ 167 |
61% |
$ 530 |
$ 311 |
70% | ||||||
|
Performance Products |
94 |
102 |
(8)% |
196 |
186 |
5% | ||||||
|
Advanced Materials |
62 |
56 |
11% |
121 |
110 |
10% | ||||||
|
Textile Effects |
29 |
24 |
21% |
55 |
45 |
22% | ||||||
|
Corporate, LIFO and other |
(39) |
(50) |
22% |
(82) |
(93) |
12% | ||||||
|
Total |
$ 415 |
$ 299 |
39% |
$ 820 |
$ 559 |
47% | ||||||
|
n/m = not meaningful |
||||||||||||
|
See end of press release for footnote explanations |
||||||||||||
|
Table 3 – Factors Impacting Sales Revenue | |||||||||||
|
Three months ended |
|||||||||||
|
June 30, 2018 vs. 2017 |
|||||||||||
|
Average Selling Price(a) |
|||||||||||
|
Local |
Exchange |
Sales Mix |
Sales |
||||||||
|
Currency |
Rate |
& Other |
Volume(b) |
Total |
|||||||
|
Polyurethanes |
10% |
4% |
0% |
14% |
28% |
||||||
|
Polyurethanes, adj |
10% |
4% |
5% |
6% |
25% |
(c)(d) | |||||
|
Performance Products |
4% |
3% |
5% |
(6)% |
6% |
||||||
|
Performance Products, adj |
4% |
3% |
4% |
(3)% |
8% |
(c)(e) | |||||
|
Advanced Materials |
4% |
4% |
2% |
2% |
12% |
||||||
|
Textile Effects |
3% |
3% |
(1)% |
6% |
11% |
||||||
|
Total Company |
6% |
4% |
1% |
6% |
17% |
||||||
|
Total Company, adj |
7% |
4% |
2% |
3% |
16% |
(c)(d)(e) | |||||
|
Six months ended |
|||||||||||
|
June 30, 2018 vs. 2017 |
|||||||||||
|
Average Selling Price(a) |
|||||||||||
|
Local |
Exchange |
Sales Mix |
Sales |
||||||||
|
Currency |
Rate |
& Other |
Volume(b) |
Total |
|||||||
|
Polyurethanes |
12% |
5% |
(1)% |
12% |
28% |
||||||
|
Polyurethanes, adj |
12% |
5% |
1% |
8% |
26% |
(c)(d) | |||||
|
Performance Products |
5% |
3% |
0% |
1% |
9% |
||||||
|
Performance Products, adj |
6% |
3% |
(1)% |
2% |
10% |
(c)(e) | |||||
|
Advanced Materials |
3% |
6% |
2% |
(1)% |
10% |
||||||
|
Textile Effects |
1% |
3% |
1% |
4% |
9% |
||||||
|
Total Company |
7% |
5% |
(1)% |
7% |
18% |
||||||
|
Total Company, adj |
7% |
5% |
(1)% |
6% |
17% |
(c)(d)(e) | |||||
|
(a) Excludes sales from tolling arrangements, by-products and raw materials. | |||||||||||
|
(b) Excludes sales from by-products and raw materials. | |||||||||||
|
(c) Pro forma adjusted to exclude the impact from maintenance outages in 2Q17. | |||||||||||
|
(d) Pro forma adjusted to exclude the impact from unplaned outages in 2Q18 at Rotterdam onset by third party constraints. | |||||||||||
|
(e) Pro forma adjusted to exclude the impact from maintenance outages in 2Q18. |
|
Table 4 – Reconciliation of U.S. GAAP to Non-GAAP Measures | ||||||||||||||||
|
Income Tax |
Diluted Income | |||||||||||||||
|
EBITDA |
(Expense) Benefit |
Net Income |
Per Share | |||||||||||||
|
Three months ended |
Three months ended |
Three months ended |
Three months ended | |||||||||||||
|
June 30, |
June 30, |
June 30, |
June 30, | |||||||||||||
|
In millions, except per share amounts |
2018 |
2017 |
2018 |
2017 |
2018 |
2017 |
2018 |
2017 | ||||||||
|
Net income |
$ 623 |
$ 183 |
$ 623 |
$ 183 |
$2.57 |
$0.75 | ||||||||||
|
Net income attributable to noncontrolling interests |
(209) |
(16) |
(209) |
(16) |
(0.86) |
(0.07) | ||||||||||
|
Net income attributable to Huntsman Corporation |
414 |
167 |
414 |
167 |
1.71 |
0.69 | ||||||||||
|
Interest expense from continuing operations |
29 |
47 |
||||||||||||||
|
Interest expense from discontinued operations(3) |
11 |
- |
||||||||||||||
|
Income tax expense from continuing operations |
4 |
24 |
$ (4) |
$ (24) |
||||||||||||
|
Income tax expense from discontinued operations(3) |
84 |
21 |
||||||||||||||
|
Depreciation and amortization from continuing operations |
83 |
79 |
||||||||||||||
|
Depreciation and amortization from discontinued operations(3) |
- |
29 |
||||||||||||||
|
Acquisition and integration expenses and purchase accounting adjustments |
7 |
4 |
(2) |
- |
5 |
4 |
0.02 |
0.02 | ||||||||
|
EBITDA / Income from discontinued operations, net of tax(3) |
(429) |
(95) |
N/A |
N/A |
(334) |
(45) |
(1.38) |
(0.18) | ||||||||
|
Noncontrolling interest of discontinued operations(1)(3) |
188 |
3 |
N/A |
N/A |
188 |
3 |
0.77 |
0.01 | ||||||||
|
U.S. tax reform impact on tax expense |
N/A |
N/A |
49 |
- |
49 |
- |
0.20 |
- | ||||||||
|
Release of significant income tax valuation allowances (a) |
N/A |
N/A |
(95) |
- |
(95) |
- |
(0.39) |
- | ||||||||
|
Gain on disposition of businesses/assets |
- |
(8) |
- |
- |
- |
(8) |
- |
(0.03) | ||||||||
|
Loss on early extinguishment of debt |
3 |
1 |
(1) |
- |
2 |
1 |
0.01 |
- | ||||||||
|
Expenses associated with merger, net of tax |
1 |
6 |
- |
- |
1 |
6 |
- |
0.02 | ||||||||
|
Certain legal and other settlements and related expenses |
1 |
1 |
- |
- |
1 |
1 |
- |
- | ||||||||
|
Amortization of pension and postretirement actuarial losses |
18 |
17 |
(4) |
(4) |
14 |
13 |
0.06 |
0.05 | ||||||||
|
Restructuring, impairment and plant closing and transition costs |
1 |
3 |
- |
(1) |
1 |
2 |
- |
0.01 | ||||||||
|
Adjusted(1) |
$ 415 |
$ 299 |
$ (57) |
$ (29) |
$ 246 |
$ 144 |
$1.01 |
$0.59 | ||||||||
|
Adjusted income tax expense(1) |
$ 57 |
$ 29 |
||||||||||||||
|
Net income attributable to noncontrolling interests, net of tax |
209 |
16 |
||||||||||||||
|
Noncontrolling interest of discontinued operations(1)(3) |
(188) |
(3) |
||||||||||||||
|
Adjusted pre-tax income(1) |
$ 324 |
$ 186 |
||||||||||||||
|
Adjusted effective tax rate(4) |
18% |
16% |
||||||||||||||
|
Effective tax rate |
1% |
15% |
||||||||||||||
|
Income Tax |
Diluted Income | |||||||||||||||
|
EBITDA |
Expense |
Net Income |
Per Share | |||||||||||||
|
Three months ended |
Three months ended |
Three months ended |
Three months ended | |||||||||||||
|
March 31, |
March 31, |
March 31, |
March 31, | |||||||||||||
|
In millions, except per share amounts |
2018 |
2018 |
2018 |
2018 | ||||||||||||
|
Net income |
$ 350 |
$ 350 |
$1.42 |
|||||||||||||
|
Net income attributable to noncontrolling interests |
(76) |
(76) |
(0.31) |
|||||||||||||
|
Net income attributable to Huntsman Corporation |
274 |
274 |
1.11 |
|||||||||||||
|
Interest expense from continuing operations |
27 |
|||||||||||||||
|
Interest expense from discontinued operations(3) |
9 |
|||||||||||||||
|
Income tax expense from continuing operations |
53 |
$ (53) |
||||||||||||||
|
Income tax expense from discontinued operations(3) |
20 |
|||||||||||||||
|
Depreciation and amortization from continuing operations |
82 |
|||||||||||||||
|
Acquisition and integration expenses and purchase accounting adjustments |
1 |
- |
1 |
- |
||||||||||||
|
EBITDA / Income from discontinued operations, net of tax(3) |
(143) |
N/A |
(114) |
(0.46) |
||||||||||||
|
Noncontrolling interest of discontinued operations(1)(3) |
55 |
N/A |
55 |
0.22 |
||||||||||||
|
Certain legal and other settlements and related costs |
7 |
(1) |
6 |
0.02 |
||||||||||||
|
Amortization of pension and postretirement actuarial losses |
17 |
(4) |
13 |
0.05 |
||||||||||||
|
Restructuring, impairment and plant closing and transition costs |
3 |
(1) |
2 |
0.01 |
||||||||||||
|
Adjusted(1) |
$ 405 |
$ (59) |
$ 237 |
$0.96 |
||||||||||||
|
Adjusted income tax expense(1) |
$ 59 |
|||||||||||||||
|
Net income attributable to noncontrolling interests, net of tax |
76 |
|||||||||||||||
|
Noncontrolling interest of discontinued operations(1)(3) |
(55) |
|||||||||||||||
|
Adjusted pre-tax income(1) |
$ 317 |
|||||||||||||||
|
Adjusted effective tax rate(4) |
19% |
|||||||||||||||
|
Effective tax rate |
18% |
|||||||||||||||
|
Table 4 – Reconciliation of U.S. GAAP to Non-GAAP Measures (cont.) | ||||||||||||||||
|
Income Tax |
Diluted Income | |||||||||||||||
|
EBITDA |
(Expense) Benefit |
Net Income |
Per Share | |||||||||||||
|
Six months ended |
Six months ended |
Six months ended |
Six months ended | |||||||||||||
|
June 30, |
June 30, |
June 30, |
June 30, | |||||||||||||
|
In millions, except per share amounts |
2018 |
2017 |
2018 |
2017 |
2018 |
2017 |
2018 |
2017 | ||||||||
|
Net income |
$ 973 |
$ 275 |
$ 973 |
$ 275 |
$3.98 |
$1.13 | ||||||||||
|
Net income attributable to noncontrolling interests |
(285) |
(32) |
(285) |
(32) |
(1.17) |
(0.13) | ||||||||||
|
Net income attributable to Huntsman Corporation |
688 |
243 |
688 |
243 |
2.82 |
1.00 | ||||||||||
|
Interest expense from continuing operations |
56 |
95 |
||||||||||||||
|
Interest expense from discontinued operations(3) |
20 |
- |
||||||||||||||
|
Income tax expense from continuing operations |
57 |
43 |
(57) |
(43) |
||||||||||||
|
Income tax expense from discontinued operations(3) |
104 |
24 |
||||||||||||||
|
Depreciation and amortization from continuing operations |
165 |
155 |
||||||||||||||
|
Depreciation and amortization from discontinued operations(3) |
- |
59 |
||||||||||||||
|
Acquisition and integration expenses and purchase accounting adjustments |
8 |
7 |
(2) |
(1) |
6 |
6 |
0.02 |
0.02 | ||||||||
|
EBITDA / Income from discontinued operations, net of tax(3) |
(572) |
(121) |
N/A |
N/A |
(448) |
(38) |
(1.83) |
(0.16) | ||||||||
|
Noncontrolling interest of discontinued operations(1)(3) |
243 |
6 |
N/A |
N/A |
243 |
6 |
1.00 |
0.02 | ||||||||
|
U.S. tax reform impact on tax expense |
N/A |
N/A |
49 |
- |
49 |
- |
0.20 |
- | ||||||||
|
Release of significant income tax valuation allowances (a) |
N/A |
N/A |
(95) |
- |
(95) |
- |
(0.39) |
- | ||||||||
|
Gain on disposition of businesses/assets |
- |
(8) |
- |
- |
- |
(8) |
- |
(0.03) | ||||||||
|
Loss on early extinguishment of debt |
3 |
1 |
(1) |
- |
2 |
1 |
0.01 |
- | ||||||||
|
Expenses associated with merger |
1 |
6 |
- |
- |
1 |
6 |
- |
0.02 | ||||||||
|
Certain legal and other settlements and related expenses |
8 |
1 |
(1) |
- |
7 |
1 |
0.03 |
- | ||||||||
|
Amortization of pension and postretirement actuarial losses |
35 |
36 |
(8) |
(8) |
27 |
28 |
0.11 |
0.12 | ||||||||
|
Restructuring, impairment and plant closing and transition costs |
4 |
12 |
(1) |
(3) |
3 |
9 |
0.01 |
0.04 | ||||||||
|
Adjusted(1) |
$ 820 |
$ 559 |
$ (116) |
$ (55) |
$ 483 |
$ 254 |
$1.98 |
$1.04 | ||||||||
|
Adjusted income tax expense(1) |
$ 116 |
$ 55 |
||||||||||||||
|
Net income attributable to noncontrolling interests, net of tax |
285 |
32 |
||||||||||||||
|
Noncontrolling interest of discontinued operations(1)(3) |
(243) |
(6) |
||||||||||||||
|
Adjusted pre-tax income(1) |
$ 641 |
$ 335 |
||||||||||||||
|
Adjusted effective tax rate(4) |
18% |
16% |
||||||||||||||
|
Effective tax rate |
10% |
15% |
||||||||||||||
|
(a) |
During the six months ended June 30, 2018, we released $95 million of valuation allowances in Switzerland and the U.K. We eliminated the effect of this significant change in tax valuation allowances from our presentation of adjusted net income to allow investors to better compare our ongoing financial performance from period to period. We do not adjust for insignificant changes in tax valuation allowances because we do not believe this provides more meaningful information than is provided under GAAP. | |||||||||||||||
|
See end of press release for footnote explanations | ||||||||||||||||
|
Table 5 – Selected Balance Sheet Items | |||||||
|
June 30, |
March 31, |
December 31, | |||||
|
In millions |
2018 |
2018 |
2017 | ||||
|
Cash |
$ 409 |
$ 453 |
$ 481 | ||||
|
Accounts and notes receivable, net |
1,377 |
1,407 |
1,283 | ||||
|
Inventories |
1,178 |
1,203 |
1,073 | ||||
|
Other current assets |
251 |
262 |
262 | ||||
|
Current assets held for sale |
3,158 |
3,060 |
2,880 | ||||
|
Property, plant and equipment, net |
3,014 |
3,117 |
3,098 | ||||
|
Other noncurrent assets |
1,667 |
1,201 |
1,167 | ||||
|
Total assets |
$ 11,054 |
$ 10,703 |
$ 10,244 | ||||
|
Accounts payable |
$ 993 |
$ 993 |
$ 964 | ||||
|
Other current liabilities |
469 |
533 |
569 | ||||
|
Current portion of debt |
255 |
36 |
40 | ||||
|
Current liabilities held for sale |
1,578 |
1,721 |
1,692 | ||||
|
Long-term debt |
2,311 |
2,298 |
2,258 | ||||
|
Other noncurrent liabilities |
1,378 |
1,353 |
1,350 | ||||
|
Total equity |
4,070 |
3,769 |
3,371 | ||||
|
Total liabilities and equity |
$ 11,054 |
$ 10,703 |
$ 10,244 | ||||
|
Table 6 – Outstanding Debt | ||||||
|
June 30, |
March 31, |
December 31, | ||||
|
In millions |
2018 |
2018 |
2017 | |||
|
Debt: |
||||||
|
Credit facility |
$ 225 |
$ - |
$ - | |||
|
Accounts receivable programs |
268 |
184 |
180 | |||
|
Senior notes |
1,906 |
1,964 |
1,927 | |||
|
Variable interest entities |
97 |
105 |
107 | |||
|
Other debt |
70 |
81 |
84 | |||
|
Total debt - excluding affiliates |
2,566 |
2,334 |
2,298 | |||
|
Total cash |
409 |
453 |
481 | |||
|
Net debt - excluding affiliates(5) |
$ 2,157 |
$ 1,881 |
$ 1,817 | |||
|
LTM Adjusted EBITDA(1) |
$ 1,520 |
$ 1,404 |
$ 1,259 | |||
|
LTM Net income |
950 |
834 |
636 | |||
|
Net debt - excluding affiliates / LTM Adjusted EBITDA(1)(5) |
1.4x |
1.3x |
1.4x | |||
|
Total debt - excluding affiliates / LTM Net income |
2.7x |
2.8x |
3.6x | |||
|
Table 7 – Summarized Statement of Cash Flows | ||||||||
|
Three months ended |
Six months ended | |||||||
|
June 30, |
June 30, | |||||||
|
In millions |
2018 |
2017 |
2018 |
2017 | ||||
|
Total cash at beginning of period(a) |
$ 676 |
$ 469 |
$ 719 |
$ 425 | ||||
|
Net cash provided by operating activities - continuing operations |
228 |
207 |
339 |
277 | ||||
|
Net cash provided by operating activities - discontinued operations(3) |
249 |
94 |
301 |
117 | ||||
|
Net cash used in investing activities - continuing operations |
(411) |
(48) |
(480) |
(95) | ||||
|
Net cash (used in) provided by investing activities - discontinued operations(3) |
(94) |
(12) |
(161) |
12 | ||||
|
Net cash provided by (used in) financing activities |
150 |
(193) |
64 |
(224) | ||||
|
Effect of exchange rate changes on cash |
(35) |
3 |
(19) |
8 | ||||
|
- | ||||||||
|
Total cash at end of period(a) |
$ 763 |
$ 520 |
$ 763 |
$ 520 | ||||
|
Supplemental cash flow information - continuing operations: |
||||||||
|
Cash paid for interest |
$ (47) |
$ (56) |
$ (59) |
$ (92) | ||||
|
Cash (paid) received for income taxes |
(51) |
65 |
(77) |
57 | ||||
|
Cash paid for capital expenditures |
(54) |
(50) |
(109) |
(101) | ||||
|
Depreciation and amortization |
83 |
79 |
165 |
155 | ||||
|
- |
||||||||
|
Changes in primary working capital: |
||||||||
|
Accounts and notes receivable |
10 |
(65) |
(94) |
(120) | ||||
|
Inventories |
(2) |
(28) |
(107) |
(137) | ||||
|
Accounts payable |
14 |
(4) |
50 |
79 | ||||
|
Total cash received from (used in) primary working capital |
$ 22 |
$ (97) |
$ (151) |
$ (178) | ||||
|
Three months ended |
Six months ended | |||||||
|
June 30, |
June 30, | |||||||
|
2018 |
2017 |
2018 |
2017 | |||||
|
Free cash flow(2): |
||||||||
|
Net cash provided by operating activities |
$ 228 |
$ 207 |
$ 339 |
$ 277 | ||||
|
Capital expenditures |
(54) |
(50) |
(109) |
(101) | ||||
|
All other investing activities, excluding acquisition |
||||||||
|
and disposition activities(b) |
(1) |
(3) |
(1) |
1 | ||||
|
Non-recurring merger costs(c) |
1 |
- |
1 |
- | ||||
|
Total free cash flow |
$ 174 |
$ 154 |
$ 230 |
$ 177 | ||||
|
Adjusted EBITDA |
$ 415 |
$ 299 |
$ 820 |
$ 559 | ||||
|
Capital expenditures |
(54) |
(50) |
(109) |
(101) | ||||
|
Capital reimbursements |
1 |
- |
2 |
1 | ||||
|
Interest |
(47) |
(56) |
(59) |
(92) | ||||
|
Income taxes |
(51) |
65 |
(77) |
57 | ||||
|
Primary working capital change |
22 |
(97) |
(151) |
(178) | ||||
|
Restructuring |
(6) |
(10) |
(6) |
(19) | ||||
|
Pensions |
(28) |
(22) |
(59) |
(37) | ||||
|
Maintenance & other |
(78) |
25 |
(131) |
(13) | ||||
|
Total free cash flow(2) |
$ 174 |
$ 154 |
$ 230 |
$ 177 | ||||
|
(a) |
Includes restricted cash and cash held in discontinued operations. | |||||||
|
(b) |
Represents "Acquisition of business, net of cash acquired", "Cash received from purchase price adjustment for business acquired", and "Proceeds from sale of business/assets". | |||||||
|
Footnotes | |
|
(1) |
We use adjusted EBITDA to measure the operating performance of our business and for planning and evaluating the performance of our business segments. We provide adjusted net income because we feel it provides meaningful insight for the investment community into the performance of our business. We believe that net income (loss) is the performance measure calculated and presented in accordance with generally accepted accounting principles in the U.S. ("GAAP") that is most directly comparable to adjusted EBITDA and adjusted net income (loss). Additional information with respect to our use of each of these financial measures follows: |
|
Adjusted EBITDA, adjusted net income (loss) and adjusted diluted income (loss) per share, as used herein, are not necessarily comparable to other similarly titled measures of other companies. | |
|
Adjusted EBITDA is computed by eliminating the following from net income (loss): (a) net income attributable to noncontrolling interests, net of tax; (b) interest; (c) income taxes; (d) depreciation and amortization (e) amortization of pension and postretirement actuarial losses (gains); (f) restructuring, impairment and plant closing costs (credits); and further adjusted for certain other items set forth in reconciliation of adjusted EBITDA to net income (loss) in Table 4 above. | |
|
Adjusted net income (loss) and adjusted diluted income (loss) per share are computed by eliminating the after tax impact of the following items from net income (loss): (a) net income attributable to noncontrolling interest; (b) amortization of pension and postretirement actuarial losses (gains); (c) restructuring, impairment and plant closing costs (credits); and further adjusted for certain other items set forth in reconciliation of adjusted EBITDA to net income (loss) in Table 4 above. The income tax impacts, if any, of each adjusting item represent a ratable allocation of the total difference between the unadjusted tax expense and the total adjusted tax expense, computed without consideration of any adjusting items using a with and without approach. | |
|
We do not provide reconciliations for adjusted EBITDA, adjusted net income (loss) or adjusted diluted income (loss) per share on a forward-looking basis because we are unable to provide a meaningful or accurate calculation or estimation of reconciling items and the information is not available without unreasonable effort. This is due to the inherent difficulty of forecasting the timing and amount of certain items, such as, but not limited to, (a) business acquisition and integration expenses and purchase accounting adjustments, (b) merger costs, and (c) certain legal and other settlements and related costs. Each of such adjustments has not yet occurred, are out of our control and/or cannot be reasonably predicted. For the same reasons, we are unable to address the probable significance of the unavailable information. | |
|
(2) |
Management internally uses a free cash flow measure: (a) to evaluate the Company's liquidity, (b) to evaluate strategic investments, (c) to plan stock buy back and dividend levels and (d) to evaluate the Company's ability to incur and service debt. Free cash flow is not a defined term under U.S. GAAP, and it should not be inferred that the entire free cash flow amount is available for discretionary expenditures. The Company defines free cash flow as cash flow provided by operating activities less cash flow used in investing activities, excluding acquisition/disposition activities and non-recurring separation costs. Free cash flow is typically derived directly from the Company's condensed consolidated statement of cash flows; however, it may be adjusted for items that affect comparability between periods. |
|
(3) |
During the third quarter of 2017 we separated our Pigments and Additives division through an Initial Public Offering of Venator Materials PLC; Additionally, during the first quarter 2010 we closed our Australian styrenics operations. Results from these associated businesses are treated as discontinued operations. |
|
(4) |
We believe adjusted effective tax rate provides improved comparability between periods through the exclusion of certain items that management believes are not indicative of the businesses' operational profitability and that may obscure underlying business results and trends. In our view, effective tax rate is the performance measure calculated and presented in accordance with U.S. GAAP that is most directly comparable to adjusted effective tax rate. |
|
The reconciliation of historical adjusted effective tax rate and effective tax rate is set forth in Table 4 above. We do not provide reconciliations for adjusted effective tax rate on a forward-looking basis because we are unable to provide a meaningful or accurate calculation or estimation of reconciling items and the information is not available without unreasonable effort. This is due to the inherent difficulty of forecasting the timing and amount of certain items, such as, but not limited to, (a) business acquisition and integration expenses, (b) merger costs, and (c) certain legal and other settlements and related costs. Each of such adjustments has not yet occurred, are out of our control and/or cannot be reasonably predicted. For the same reasons, we are unable to address the probable significance of the unavailable information. | |
|
(5) |
Net debt is a measure we use to monitor how much debt we have after taking into account our total cash. We use it as an indicator of our overall financial position, and calculate it by taking our total debt, including the current portion, and subtracting total cash. |
About Huntsman:
Huntsman Corporation is a publicly traded global manufacturer and marketer of differentiated and specialty chemicals with 2017 revenues more than $8 billion. Our chemical products number in the thousands and are sold worldwide to manufacturers serving a broad and diverse range of consumer and industrial end markets. We operate more than 75 manufacturing, R&D and operations facilities in approximately 30 countries and employ approximately 10,000 associates within our four distinct business divisions. For more information about Huntsman, please visit the company's website at www.huntsman.com.
Social Media:
Twitter: www.twitter.com/Huntsman_Corp
Facebook: www.facebook.com/huntsmancorp
LinkedIn: www.linkedin.com/company/huntsman
Forward-Looking Statements:
Certain information in this release constitutes forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. These statements are based on management's current beliefs and expectations. The forward-looking statements in this release are subject to uncertainty and changes in circumstances and involve risks and uncertainties that may affect the company's operations, markets, products, services, prices and other factors as discussed under the caption "Risk Factors" in the Huntsman companies' filings with the U.S. Securities and Exchange Commission. Significant risks and uncertainties may relate to, but are not limited to, volatile global economic conditions, cyclical and volatile product markets, disruptions in production at manufacturing facilities, reorganization or restructuring of Huntsman's operations, including any delay of, or other negative developments affecting the ability to implement cost reductions and manufacturing optimization improvements in Huntsman businesses and realize anticipated cost savings, and other financial, economic, competitive, environmental, political, legal, regulatory and technological factors. The company assumes no obligation to provide revisions to any forward-looking statements should circumstances change, except as otherwise required by applicable laws.
View original content with multimedia:http://www.prnewswire.com/news-releases/huntsman-announces-strong-and-consistent-growth-in-second-quarter-2018-earnings-300688798.html
SOURCE Huntsman Corporation
Article Date
7/31/2018Huntsman to Discuss Second Quarter 2018 Results on July 31, 2018
Source: PR Newswire
Orignial Article: https://www.prnewswire.co...
THE WOODLANDS, Texas, June 26, 2018 /PRNewswire/ -- Huntsman Corporation (NYSE: HUN) will hold a conference call to discuss its second quarter 2018 financial results on Tuesday, July 31, 2018 at 11:00 a.m. ET. Second quarter 2018 results will be released to the public at approximately 6:00 a.m. ET that day via PR Newswire.
|
Call-in numbers for the conference call: | |
|
U.S. participants |
(888) 680 - 0878 |
|
International participants |
(617) 213 - 4855 |
|
Passcode |
445 723 85# |
In order to facilitate the registration process, you may use the following link to pre-register for the conference call. Callers who pre-register will be given a unique PIN to gain immediate access to the call and bypass the live operator. You may pre-register at any time, including up to and after the call start time. To pre-register, please go to:
https://www.theconferencingservice.com/prereg/key.process?key=PUEAXYC3M
Webcast Information
The conference call will be available via webcast and can be accessed from the company's website at ir.huntsman.com.
Replay Information
The conference call will be available for replay beginning July 31, 2018 and ending August 7, 2018.
|
Call-in numbers for the replay: | |
|
U.S. participants |
(888) 286 - 8010 |
|
International participants |
(617) 801 - 6888 |
|
Replay code |
29385180 |
About Huntsman:
Huntsman Corporation is a publicly traded global manufacturer and marketer of differentiated and specialty chemicals with 2017 revenues of approximately $8 billion. Our chemical products number in the thousands and are sold worldwide to manufacturers serving a broad and diverse range of consumer and industrial end markets. We operate more than 75 manufacturing, R&D and operations facilities in approximately 30 countries and employ approximately 10,000 associates within our four distinct business divisions. For more information about Huntsman, please visit the company's website at www.huntsman.com.
Social Media:
Twitter: www.twitter.com/Huntsman_Corp
Facebook: www.facebook.com/huntsmancorp
LinkedIn: www.linkedin.com/company/huntsman
Forward-Looking Statements:
Statements in this release that are not historical are forward-looking statements. These statements are based on management's current beliefs and expectations. The forward-looking statements in this release are subject to uncertainty and changes in circumstances and involve risks and uncertainties that may affect the company's operations, markets, products, services, prices and other factors as discussed in the Huntsman companies' filings with the U.S. Securities and Exchange Commission. Significant risks and uncertainties may relate to, but are not limited to, volatile global economic conditions, cyclical and volatile product markets, disruptions in production at manufacturing facilities, reorganization or restructuring of Huntsman's operations, the ability to implement cost reductions and manufacturing optimization improvements in Huntsman businesses, and other financial, economic, competitive, environmental, political, legal, regulatory and technological factors. The company assumes no obligation to provide revisions to any forward-looking statements should circumstances change, except as otherwise required by applicable laws.
View original content with multimedia:http://www.prnewswire.com/news-releases/huntsman-to-discuss-second-quarter-2018-results-on-july-31-2018-300672705.html
SOURCE Huntsman Corporation
Article Date
6/26/2018Huntsman To Build New Polyurethanes Systems House In Dubai
Source: PR Newswire
EVERBERG, Belgium, May 29, 2018 /PRNewswire/ -- Huntsman Corporation (NYSE: HUN) today announced plans to build a new polyurethanes systems house in Dubai. Located within the Jebel Ali Free Trade Zone (JAFZA), the new facility will strengthen Huntsman's differentiated downstream capabilities in the heart of the Middle East.
Targeted for completion by the second half of 2019, Huntsman's investment will increase the company's systems production capacity in the region and add a new dimension to its polyester polyol capabilities. The Dubai systems house will complement the company's two existing systems houses in the Middle East, in Turkey (Huntsman EMA) and Saudi Arabia (HAPC - a joint venture with the BCI Group of Companies), forming three strong pillars for growth.
Tony Hankins, President Huntsman's Polyurethanes division, said: "This is a bold and timely investment, which will serve as a strategic platform to expand our business in the Middle East and North Africa and build our market leading position. It represents the next step in our plan to strengthen our downstream network. We now have 30 facilities worldwide, which provide innovative solutions in close proximity to our customers."
Steen Weien Hansen, regional Vice President of Polyurethanes, further commented: "The MDI-based systems market in the Middle East has delivered strong growth in the last five years and this trend is forecast to continue at estimated rates of 7% annually. The construction of the new systems house will enable us to supply traditional and high-end rigid polyurethane formulations from a local source. It will also enable us to leverage our development and production know-how in polyester polyol and polyol blends for the fast-growing flexible foam and footwear markets, as well as pre-polymers for adhesives, coatings and elastomers applications."
Gulum Kabil, General Manager of Huntsman Polyurethanes' business activities in the Middle East and Turkey, will manage the new systems house.
About Huntsman:
Huntsman Corporation is a publicly traded global manufacturer and marketer of differentiated and specialty chemicals with 2017 revenues of more than $8 billion. Our chemical products number in the thousands and are sold worldwide to manufacturers serving a broad and diverse range of consumer and industrial end markets. We operate more than 75 manufacturing, R&D and operations facilities in approximately 30 countries and employ approximately 10,000 associates within our four distinct business divisions. For more information about Huntsman, please visit the company's website at www.huntsman.com.
Social Media:
Twitter: www.twitter.com/Huntsman_Corp
Facebook: www.facebook.com/huntsmancorp
LinkedIn: www.linkedin.com/company/huntsman
Forward-Looking Statements:
Certain information in this release constitutes forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. These statements are based on management's current beliefs and expectations. The forward-looking statements in this release are subject to uncertainty and changes in circumstances and involve risks and uncertainties that may affect the company's operations, markets, products, services, prices and other factors as discussed under the caption "Risk Factors" in the Huntsman companies' filings with the U.S. Securities and Exchange Commission. Significant risks and uncertainties may relate to, but are not limited to, volatile global economic conditions, cyclical and volatile product markets, disruptions in production at manufacturing facilities, reorganization or restructuring of Huntsman's operations, including any delay of, or other negative developments affecting the ability to implement cost reductions and manufacturing optimization improvements in Huntsman businesses and realize anticipated cost savings, and other financial, economic, competitive, environmental, political, legal, regulatory and technological factors. The company assumes no obligation to provide revisions to any forward-looking statements should circumstances change, except as otherwise required by applicable laws.
View original content with multimedia:http://www.prnewswire.com/news-releases/huntsman-to-build-new-polyurethanes-systems-house-in-dubai-300655607.html
SOURCE Huntsman Corporation
Article Date
5/29/2018Huntsman's Board Approves Increase to Share Repurchase Authorization up to $1 Billion; Huntsman also Announces a New $1.2 Billion Unsecured Revolving Credit Facility
Source: PR Newswire
Orignial Article: http://www.prnewswire.com...
THE WOODLANDS, Texas, May 23, 2018 /PRNewswire/ -- Huntsman Corporation (NYSE: HUN) today announced that its board of directors approved an increase to its previously authorized share repurchase program to $1 billion. This represents a $550 million increase to the existing $450 million authorization, to be supported by the Company's free cash flow generation and by the monetization of Venator shares. Repurchases may be made through the open market or in privately negotiated transactions, and repurchases may be commenced or suspended from time to time without prior notice. Shares of common stock acquired through the repurchase program are to be held in treasury at cost.
Additionally, Huntsman Corporation today announced that it has entered into a new five year $1.2 billion senior unsecured revolving credit facility expiring in 2023 with a current applicable rate of LIBOR plus 175 basis points. The new credit facility will replace the Company's previous $650 million senior secured revolving credit facility expiring in 2021 that held an applicable rate of LIBOR plus 250 basis points.
Peter Huntsman, Chairman, President and CEO commented:
"We are committed to maintaining a balanced approach to capital deployment to create further shareholder value. The increased share repurchase authorization is a reflection of the Company's confidence in generating consistent, strong annual free cash flow and its desire to return capital to shareholders through an overall balanced approach. Furthermore, our new $1.2 billion unsecured credit facility further enhances our investment grade profile. Each of these announcements is fundamental to our core focus to create shareholder value as we grow our downstream businesses and work towards our 2020 targets of generating more than $1.6 billion of EBITDA and greater than $650 million in free cash flow."
Sean Douglas, Executive Vice President and Chief Financial Officer added:
"This is a long awaited and well-intended moment to have an investment grade credit facility. As demonstrated by this new $1.2 billion unsecured revolver, major financial institutions clearly see Huntsman solidly within investment grade land."
About Huntsman:
Huntsman Corporation is a publicly traded global manufacturer and marketer of differentiated and specialty chemicals with 2017 revenues more than $8 billion. Our chemical products number in the thousands and are sold worldwide to manufacturers serving a broad and diverse range of consumer and industrial end markets. We operate more than 75 manufacturing, R&D and operations facilities in approximately 30 countries and employ approximately 10,000 associates within our four distinct business divisions. For more information about Huntsman, please visit the company's website at www.huntsman.com.
Social Media:
Twitter: www.twitter.com/Huntsman_Corp
Facebook: www.facebook.com/huntsmancorp
LinkedIn: www.linkedin.com/company/huntsman
Forward-Looking Statements:
Certain information in this release constitutes forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. These statements are based on management's current beliefs and expectations. The forward-looking statements in this release are subject to uncertainty and changes in circumstances and involve risks and uncertainties that may affect the company's operations, markets, products, services, prices and other factors as discussed under the caption "Risk Factors" in the Huntsman companies' filings with the U.S. Securities and Exchange Commission. Significant risks and uncertainties may relate to, but are not limited to, volatile global economic conditions, cyclical and volatile product markets, disruptions in production at manufacturing facilities, reorganization or restructuring of Huntsman's operations, including any delay of, or other negative developments affecting the ability to implement cost reductions and manufacturing optimization improvements in Huntsman businesses and realize anticipated cost savings, and other financial, economic, competitive, environmental, political, legal, regulatory and technological factors. The company assumes no obligation to provide revisions to any forward-looking statements should circumstances change, except as otherwise required by applicable laws.
View original content with multimedia:http://www.prnewswire.com/news-releases/huntsmans-board-approves-increase-to-share-repurchase-authorization-up-to-1-billion--huntsman-also-announces-a-new-1-2-billion-unsecured-revolving-credit-facility-300653190.html
SOURCE Huntsman Corporation
Article Date
5/23/2018Huntsman Announces Strong First Quarter 2018 Results, With Every Division Showing Earnings Growth Versus the Prior Year; Greater Than $100 Million in Share Repurchases Completed to Date
Source: PR Newswire
Orignial Article: https://www.prnewswire.co...
THE WOODLANDS, Texas, May 1, 2018 /PRNewswire/ --
First Quarter 2018 Highlights
|
Three months ended | ||||||
|
March 31, |
December 31, | |||||
|
In millions, except per share amounts |
2018 |
2017 |
2017 | |||
|
Revenues |
$2,295 |
$1,932 |
$ 2,203 | |||
|
Net income |
$ 350 |
$ 92 |
$ 287 | |||
|
Adjusted net income(1) |
$ 237 |
$ 110 |
$ 186 | |||
|
Diluted income per share |
$ 1.11 |
$ 0.31 |
$ 1.00 | |||
|
Adjusted diluted income per share(1) |
$ 0.96 |
$ 0.45 |
$ 0.76 | |||
|
Adjusted EBITDA(1) |
$ 405 |
$ 260 |
$ 360 | |||
|
Net cash provided by operating activities |
||||||
|
from continuing operations |
$ 111 |
$ 70 |
$ 304 | |||
|
Free cash flow(3) |
$ 56 |
$ 23 |
$ 190 | |||
|
See end of press release for footnote explanations | ||||||
Huntsman Corporation (NYSE: HUN) today reported first quarter 2018 results with revenues of $2,295 million, net income of $350 million and adjusted EBITDA of $405 million.
Peter R. Huntsman, Chairman, President and CEO, commented:
"We have started 2018 fully engaged in executing the priorities that we have outlined to our shareholders. Our core business continues to perform well. All of our divisions improved over the previous year and we continue to expect all divisions will finish this year stronger than last year. Our continued focus on free cash flow produced cash generation well ahead of last year and puts us fully on pace to achieve our 2018 target of $450-$650 million.
"As we announced in the previous quarter, we have initiated a share buyback program. Through April 19, 2018, we spent $103 million on buybacks at an average price of $29.45 per share. We also announced the closing of the Demilec acquisition. This acquisition will provide further downstream growth while generating stronger margins and stability. We will continue to pursue the prudent deployment of capital to create further shareholder value."
Segment Analysis for 1Q18 Compared to 1Q17
Polyurethanes
The increase in revenues in our Polyurethanes segment for the three months ended March 31, 2018 compared to the same period of 2017 was due to higher average selling prices and higher sales volumes. MDI average selling prices increased in response to continued strong market conditions. MTBE average selling prices increased primarily as a result of higher pricing for high octane gasoline. MDI sales volumes increased due to increased demand across most major markets. MTBE sales volumes increased due to increased demand for MTBE. The increase in segment adjusted EBITDA was primarily due to higher MDI margins as well as higher MTBE margins.
Performance Products
The increase in revenues in our Performance Products segment for the three months ended March 31, 2018 compared to the same period of 2017 was due to higher average selling prices and higher sales volumes. Average selling prices increased primarily due to strong market conditions across several of our derivatives businesses and in response to higher raw material costs. Sales volumes increased in our amines, maleic anhydride and ethylene glycol businesses. The increase in segment adjusted EBITDA was primarily due to higher volumes and margins.
Advanced Materials
The increase in revenues in our Advanced Materials segment for the three months ended March 31, 2018, compared to the same period in 2017 was due to higher average selling prices, partially offset by lower sales volumes. Average selling prices increased largely in response to higher raw material costs and the impact of a weaker U.S. dollar against major international currencies. Sales volumes increased across most markets in our core specialty business but were more than offset by lower sales volumes in our wind market. Segment adjusted EBITDA increased due to higher specialty sales volumes and lower fixed costs, partially offset by higher raw material costs.
Textile Effects
The increase in revenues in our Textile Effects segment for the three months ended March 31, 2018 compared to the same period of 2017 was due to higher sales volumes, partially offset by lower average selling prices. Sales volumes increased in textile chemicals, particularly in our Asia and South America regions. Average selling prices decreased primarily due to product mix effect, partially offset by the impact of a weaker U.S. dollar against major international currencies. The increase in segment adjusted EBITDA was primarily due to higher sales volumes, lower fixed costs and certain credits during the three months ended March 31, 2018.
Corporate, LIFO and other
For the three months ended March 31, 2018, segment adjusted EBITDA from Corporate and other for Huntsman Corporation was a loss of $43 million which was flat with the prior year period 2017.
Held for Sale and Discontinued Operations
Our former Pigments and Additives segment, now known as Venator, is classified as held for sale on our balance sheet and treated as discontinued operations on our income statement. Please refer to the Form 8-K we filed on October 31, 2017 with certain restated historical financial data. Huntsman currently owns 53% of Venator's outstanding shares.
Liquidity, Capital Resources and Outstanding Debt
During the quarter we generated adjusted free cash flow of $56 million compared to $23 million a year ago. As of March 31, 2018, we had $1,249 million of combined cash and unused borrowing capacity compared to $1,247 million as of December 31, 2017.
During the three months ended March 31, 2018, we spent $55 million on capital expenditures compared to $51 million in the same period of 2017. We expect to spend approximately $325 million on capital expenditures in 2018.
Through April 19, 2018, we have spent approximately $103 million to repurchase approximately 3.5 million shares. We currently have approximately $347 million remaining on our existing share repurchase authorization.
On April 23, 2018, we completed the acquisition of Demilec. We funded the purchase price of $350 million, plus customary working capital adjustments, with available liquidity.
Income Taxes
During the three months ended March 31, 2018, we recorded income tax expense of $53 million compared to $19 million during the same period in 2017. In the first quarter 2018, our adjusted effective tax rate was 19%. Our 2018 adjusted effective tax rate will be approximately 20% - 22%. We expect our long-term adjusted effective tax rate will be approximately 23% - 25%.
Earnings Conference Call Information
We will hold a conference call to discuss our first quarter 2018 financial results on Tuesday, May 1, 2018 at 10:00 a.m. ET.
|
Call-in numbers for the conference call: | |
|
U.S. participants |
(888) 713 – 4213 |
|
International participants |
(617) 213 - 4865 |
|
Passcode |
755 496 16# |
In order to facilitate the registration process, you may use the following link to pre-register for the conference call. Callers who pre-register will be given a unique PIN to gain immediate access to the call and bypass the live operator. You may pre-register at any time, including up to and after the call start time. To pre-register, please go to: https://www.theconferencingservice.com/prereg/key.process?key=P8QQKLTUE
Webcast Information
The conference call will be available via webcast and can be accessed from the company's website at ir.huntsman.com.
Replay Information
The conference call will be available for replay beginning May 1, 2018 and ending May 8, 2018.
|
Call-in numbers for the replay: | |
|
U.S. participants |
(888) 286 - 8010 |
|
International participants |
(617) 801 - 6888 |
|
Replay code |
29385180 |
Upcoming Conferences
During the second quarter a member of management is expected to present at:
Wells Fargo Industrials Conference on May 8, 2018
TPH Hotter 'N Hell Conference on May 15, 2018
KeyBanc Capital Markets' Industrials and Basic Materials Conference on May 30, 2018
Deutsche Bank's Annual Global Industrials and Materials Summit on June 6, 2018
Vertical Research Partners Global Materials Conference on June 14, 2018
A webcast of the presentation, if applicable, along with accompanying materials will be available at ir.huntsman.com.
2018 Investor Day
Huntsman will host a meeting for investors and analysts on Wednesday, May 23, 2018, from 8:30 a.m. to 12:00 p.m., local time in New York City. The agenda for the meeting will include a review of the company's business strategy and an in-depth discussion of each of the company's businesses. Presenters will include Peter Huntsman, Chairman, President and CEO, and other business leaders. Contact ir@huntsman.com for more information or to RSVP. A live webcast and presentation materials will be available the day of the event at ir.huntsman.com. A replay of the webcast will be available following the presentations.
|
Table 1 – Results of Operations | ||||
|
Three months ended | ||||
|
March 31, | ||||
|
In millions, except per share amounts |
2018 |
2017 | ||
|
Revenues |
$2,295 |
$1,932 | ||
|
Cost of goods sold |
1,755 |
1,542 | ||
|
Gross profit |
540 |
390 | ||
|
Operating expenses |
242 |
219 | ||
|
Restructuring, impairment and plant closing costs |
2 |
9 | ||
|
Operating income |
296 |
162 | ||
|
Interest expense |
(27) |
(48) | ||
|
Equity in income of investment in unconsolidated affiliates |
13 |
- | ||
|
Other income, net |
7 |
4 | ||
|
Income before income taxes |
289 |
118 | ||
|
Income tax expense |
(53) |
(19) | ||
|
Income from continuing operations |
236 |
99 | ||
|
Income (loss) from discontinued operations, net of tax(4) |
114 |
(7) | ||
|
Net income |
350 |
92 | ||
|
Net income attributable to noncontrolling interests, net of tax |
(76) |
(16) | ||
|
Net income attributable to Huntsman Corporation |
$ 274 |
$ 76 | ||
|
Adjusted EBITDA(1) |
$ 405 |
$ 260 | ||
|
Adjusted net income(1) |
$ 237 |
$ 110 | ||
|
Basic income per share |
$ 1.14 |
$ 0.32 | ||
|
Diluted income per share |
$ 1.11 |
$ 0.31 | ||
|
Adjusted diluted income per share(1) |
$ 0.96 |
$ 0.45 | ||
|
Common share information: |
||||
|
Basic shares outstanding |
241 |
237 | ||
|
Diluted shares |
246 |
243 | ||
|
Diluted shares for adjusted diluted income per share |
246 |
243 | ||
|
See end of press release for footnote explanations | ||||
|
Table 2 – Results of Operations by Segment | ||||||
|
Three months ended |
||||||
|
March 31, |
Better / | |||||
|
In millions |
2018 |
2017 |
(Worse) | |||
|
Segment Revenues: |
||||||
|
Polyurethanes |
$1,222 |
$ 953 |
28% | |||
|
Performance Products |
603 |
533 |
13% | |||
|
Advanced Materials |
279 |
259 |
8% | |||
|
Textile Effects |
200 |
188 |
6% | |||
|
Corporate and eliminations |
(9) |
(1) |
n/m | |||
|
Total |
$2,295 |
$1,932 |
19% | |||
|
Segment Adjusted EBITDA(1): |
||||||
|
Polyurethanes |
$ 261 |
$ 144 |
81% | |||
|
Performance Products |
102 |
84 |
21% | |||
|
Advanced Materials |
59 |
54 |
9% | |||
|
Textile Effects |
26 |
21 |
24% | |||
|
Corporate, LIFO and other |
(43) |
(43) |
0% | |||
|
Total |
$ 405 |
$ 260 |
56% | |||
|
n/m = not meaningful |
||||||
|
See end of press release for footnote explanations | ||||||
|
Table 3 – Factors Impacting Sales Revenue | ||||||||||
|
Three months ended | ||||||||||
|
March 31, 2018 vs. 2017 | ||||||||||
|
Average Selling Price(a) |
||||||||||
|
Local |
Exchange |
Sales Mix |
Sales |
|||||||
|
Currency |
Rate |
& Other |
Volume(b) |
Total | ||||||
|
Polyurethanes |
15% |
7% |
(3)% |
9% |
28% | |||||
|
Performance Products |
8% |
3% |
(8)% |
10% |
13% | |||||
|
Advanced Materials |
2% |
7% |
2% |
(3)% |
8% | |||||
|
Textile Effects |
(3)% |
4% |
2% |
3% |
6% | |||||
|
Total Company |
8% |
6% |
(4)% |
9% |
19% | |||||
|
(a) |
Excludes sales from tolling arrangements, by-products and raw materials. | ||||||
|
(b) |
Excludes sales from by-products and raw materials. | ||||||
|
Table 4 – Reconciliation of U.S. GAAP to Non-GAAP Measures | ||||||||||||||||
|
Income Tax |
Diluted Income | |||||||||||||||
|
EBITDA |
Expense |
Net Income |
Per Share | |||||||||||||
|
Three months ended |
Three months ended |
Three months ended |
Three months ended | |||||||||||||
|
March 31, |
March 31, |
March 31, |
March 31, | |||||||||||||
|
In millions, except per share amounts |
2018 |
2017 |
2018 |
2017 |
2018 |
2017 |
2018 |
2017 | ||||||||
|
Net income |
$ 350 |
$ 92 |
$ 350 |
$ 92 |
$ 1.42 |
$ 0.38 | ||||||||||
|
Net income attributable to noncontrolling interests |
(76) |
(16) |
(76) |
(16) |
(0.31) |
(0.07) | ||||||||||
|
Net income attributable to Huntsman Corporation |
274 |
76 |
274 |
76 |
1.11 |
0.31 | ||||||||||
|
Interest expense from continuing operations |
27 |
48 |
||||||||||||||
|
Interest expense from discontinued operations(4) |
9 |
- |
||||||||||||||
|
Income tax expense from continuing operations |
53 |
19 |
$ (53) |
$ (19) |
||||||||||||
|
Income tax expense from discontinued operations(4) |
20 |
3 |
||||||||||||||
|
Depreciation and amortization from continuing operations |
82 |
76 |
||||||||||||||
|
Depreciation and amortization from discontinued operations(4) |
- |
30 |
||||||||||||||
|
Acquisition and integration expenses |
1 |
3 |
- |
(1) |
1 |
2 |
- |
0.01 | ||||||||
|
EBITDA / Income from discontinued operations, net of tax(4) |
(143) |
(26) |
N/A |
N/A |
(114) |
7 |
(0.46) |
0.03 | ||||||||
|
Noncontrolling interest of discontinued operations(1)(4) |
55 |
3 |
N/A |
N/A |
55 |
3 |
0.22 |
0.01 | ||||||||
|
Certain legal and other settlements and related expenses |
7 |
- |
(1) |
- |
6 |
- |
0.02 |
- | ||||||||
|
Amortization of pension and postretirement actuarial losses |
17 |
19 |
(4) |
(4) |
13 |
15 |
0.05 |
0.06 | ||||||||
|
Restructuring, impairment and plant closing and transition costs |
3 |
9 |
(1) |
(2) |
2 |
7 |
0.01 |
0.03 | ||||||||
|
Adjusted(1) |
$ 405 |
$ 260 |
$ (59) |
$ (26) |
$ 237 |
$ 110 |
$ 0.96 |
$ 0.45 | ||||||||
|
Adjusted income tax expense(1) |
$ 59 |
$ 26 |
||||||||||||||
|
Net income attributable to noncontrolling interests, net of tax |
76 |
16 |
||||||||||||||
|
Noncontrolling interest of discontinued operations(1)(4) |
(55) |
(3) |
||||||||||||||
|
Adjusted pre-tax income(1) |
$ 317 |
$ 149 |
||||||||||||||
|
Adjusted effective tax rate |
19% |
17% |
||||||||||||||
|
Income Tax |
Diluted Income | |||||||||||||||
|
EBITDA |
Expense |
Net Income |
Per Share | |||||||||||||
|
Three months ended |
Three months ended |
Three months ended |
Three months ended | |||||||||||||
|
December 31, |
December 31, |
December 31, |
December 31, | |||||||||||||
|
In millions, except per share amounts |
2017 |
2017 |
2017 |
2017 | ||||||||||||
|
Net income |
$ 287 |
$ 287 |
$ 1.17 |
|||||||||||||
|
Net income attributable to noncontrolling interests |
(41) |
(41) |
(0.17) |
|||||||||||||
|
Net income attributable to Huntsman Corporation |
246 |
246 |
1.00 |
|||||||||||||
|
Interest expense from continuing operations |
31 |
|||||||||||||||
|
Interest expense from discontinued operations(4) |
11 |
|||||||||||||||
|
Income tax expense from continuing operations |
(14) |
$ 14 |
||||||||||||||
|
Income tax expense from discontinued operations(4) |
26 |
|||||||||||||||
|
Depreciation and amortization from continuing operations |
84 |
|||||||||||||||
|
Acquisition and integration expenses |
2 |
(1) |
1 |
- |
||||||||||||
|
EBITDA / Income from discontinued operations, net of tax(4) |
(94) |
N/A |
(57) |
(0.23) |
||||||||||||
|
Noncontrolling interest of discontinued operations(1)(4) |
31 |
N/A |
31 |
0.13 |
||||||||||||
|
U.S. tax reform impact on noncontrolling interest |
(6) |
N/A |
(6) |
(0.02) |
||||||||||||
|
U.S. tax reform impact on tax expense |
N/A |
(52) |
(52) |
(0.21) |
||||||||||||
|
Gain on disposition of businesses/assets |
(1) |
- |
(1) |
- |
||||||||||||
|
Loss on early extinguishment of debt |
18 |
(7) |
11 |
0.04 |
||||||||||||
|
Expenses associated with merger |
10 |
(9) |
1 |
- |
||||||||||||
|
Certain legal and other settlements and related credits |
(12) |
4 |
(8) |
(0.03) |
||||||||||||
|
Net plant incident costs |
3 |
(2) |
1 |
- |
||||||||||||
|
Amortization of pension and postretirement actuarial losses |
18 |
(5) |
13 |
0.05 |
||||||||||||
|
Restructuring, impairment and plant closing and transition costs |
7 |
(1) |
6 |
0.02 |
||||||||||||
|
Adjusted(1) |
$ 360 |
$ (59) |
$ 186 |
$ 0.76 |
||||||||||||
|
Adjusted income tax expense(1) |
$ 59 |
|||||||||||||||
|
Net income attributable to noncontrolling interests, net of tax |
41 |
|||||||||||||||
|
Noncontrolling interest of discontinued operations(1)(4) |
(31) |
|||||||||||||||
|
U.S. tax reform impact on noncontrolling interest |
6 |
|||||||||||||||
|
Adjusted pre-tax income(1) |
$ 261 |
|||||||||||||||
|
Adjusted effective tax rate |
23% |
|||||||||||||||
|
See end of press release for footnote explanations | ||||||||||||||||
|
Table 5 – Selected Balance Sheet Items | ||||
|
March 31, |
December 31, | |||
|
In millions |
2018 |
2017 | ||
|
Cash |
$ 453 |
$ 481 | ||
|
Accounts and notes receivable, net |
1,407 |
1,283 | ||
|
Inventories |
1,203 |
1,073 | ||
|
Other current assets |
262 |
262 | ||
|
Current assets held for sale |
3,060 |
2,880 | ||
|
Property, plant and equipment, net |
3,117 |
3,098 | ||
|
Other assets |
1,201 |
1,167 | ||
|
Total assets |
$ 10,703 |
$ 10,244 | ||
|
Accounts payable |
$ 993 |
$ 964 | ||
|
Other current liabilities |
533 |
569 | ||
|
Current portion of debt |
36 |
40 | ||
|
Current liabilities held for sale |
1,721 |
1,692 | ||
|
Long-term debt |
2,298 |
2,258 | ||
|
Other liabilities |
1,353 |
1,350 | ||
|
Total equity |
3,769 |
3,371 | ||
|
Total liabilities and equity |
$ 10,703 |
$ 10,244 | ||
|
Table 6 – Outstanding Debt | ||||
|
March 31, |
December 31, | |||
|
In millions |
2018 |
2017 | ||
|
Debt: |
||||
|
Senior credit facilities |
$ - |
$ - | ||
|
Accounts receivable programs |
184 |
180 | ||
|
Senior notes |
1,964 |
1,927 | ||
|
Variable interest entities |
105 |
107 | ||
|
Other debt |
81 |
84 | ||
|
Total debt - excluding affiliates |
2,334 |
2,298 | ||
|
Total cash |
453 |
481 | ||
|
Net debt- excluding affiliates |
$ 1,881 |
$ 1,817 | ||
|
Table 7 – Summarized Statement of Cash Flows | ||||
|
Three months ended | ||||
|
March 31, | ||||
|
In millions |
2018 |
2017 | ||
|
Total cash at beginning of period(a) |
$ 719 |
$425 | ||
|
Net cash provided by operating activities - continuing operations |
111 |
70 | ||
|
Net cash provided by operating activities - discontinued operations(4) |
52 |
23 | ||
|
Net cash used in investing activities - continuing operations |
(69) |
(47) | ||
|
Net cash (used in) provided by investing activities - discontinued operations(4) |
(67) |
24 | ||
|
Net cash used in financing activities |
(86) |
(31) | ||
|
Effect of exchange rate changes on cash |
16 |
5 | ||
|
- | ||||
|
Total cash at end of period(a) |
$ 676 |
$469 | ||
|
Supplemental cash flow information - continuing operations: |
||||
|
Cash paid for interest |
$ (12) |
$ (36) | ||
|
Cash paid for income taxes |
(26) |
(8) | ||
|
Cash paid for capital expenditures |
(55) |
(51) | ||
|
Depreciation and amortization |
82 |
76 | ||
|
Changes in primary working capital: |
||||
|
Accounts and notes receivable |
(104) |
(55) | ||
|
Inventories |
(105) |
(109) | ||
|
Accounts payable |
36 |
83 | ||
|
Total cash used in primary working capital |
$ (173) |
$ (81) | ||
|
Three months ended | ||||
|
March 31, | ||||
|
2018 |
2017 | |||
|
Free cash flow(3): |
||||
|
Net cash provided by operating activities |
$ 111 |
$ 70 | ||
|
Capital expenditures |
(55) |
(51) | ||
|
All other investing activities, excluding acquisition and disposition activities(b) |
- |
4 | ||
|
Total free cash flow |
$ 56 |
$ 23 | ||
|
Adjusted EBITDA |
$ 405 |
$260 | ||
|
Capital expenditures |
(55) |
(51) | ||
|
Capital reimbursements |
1 |
1 | ||
|
Interest |
(12) |
(36) | ||
|
Income taxes |
(26) |
(8) | ||
|
Primary working capital change |
(173) |
(81) | ||
|
Restructuring |
- |
(9) | ||
|
Pensions |
(31) |
(15) | ||
|
Maintenance & other |
(53) |
(38) | ||
|
Total free cash flow(3) |
$ 56 |
$ 23 | ||
|
(a) |
Includes restricted cash and cash held in discontinued operations. |
|
(b) |
Represents "Acquisition of business, net of cash acquired", "Cash received from purchase price adjustment for business acquired", and "Proceeds from sale of business/assets". |
|
Footnotes | |
|
(1) |
We use adjusted EBITDA to measure the operating performance of our business and for planning and evaluating the performance of our business segments. We provide adjusted net income because we feel it provides meaningful insight for the investment community into the performance of our business. We believe that net income (loss) is the performance measure calculated and presented in accordance with generally accepted accounting principles in the U.S. ("GAAP") that is most directly comparable to adjusted EBITDA and adjusted net income. Additional information with respect to our use of each of these financial measures follows: |
|
Adjusted EBITDA, adjusted net income (loss) and adjusted diluted income (loss) per share, as used herein, are not necessarily comparable to other similarly titled measures of other companies. | |
|
Adjusted EBITDA is computed by eliminating the following from net income (loss): (a) net income attributable to noncontrolling interests, net of tax; (b) interest; (c) income taxes; (d) depreciation and amortization; (e) acquisition and integration expenses; (f) income (loss) from discontinued operations, net of tax; (g) noncontrolling interest of discontinued operations (h) loss (gain) on disposition of businesses/assets; (i) loss on early extinguishment of debt; (j) expenses associated with merger; (k) certain legal and other settlements and related expenses (credits) (l) net plant incident costs (credits); (m) amortization of pension and postretirement actuarial losses (gains); and (n) restructuring, impairment and plant closing costs (credits). The reconciliation of adjusted EBITDA to net income (loss) is set forth in Table 4 above. | |
|
Adjusted net income (loss) and adjusted diluted income (loss) per share are computed by eliminating the after tax impact of the following items from net income (loss: (a) net income attributable to noncontrolling interest; (b) acquisition and integration expenses, purchase accounting adjustments; (c) impact of certain foreign tax credit elections; (d) income (loss) from discontinued operations, net of tax; (e) discount amortization on settlement financing associated with the terminated merger; (f) loss (gain) on disposition of businesses/assets; (g) loss on early extinguishment of debt; (h) expenses associated with the merger; (i) certain legal and other settlements and related expenses (credits); (j) net plant incident costs (credits); (k) noncontrolling interest of discontinued operations; (l) amortization of pension and postretirement actuarial losses (gains); and (m) restructuring, impairment and plant closing costs (credits). The income tax impacts, if any, of each adjusting item represent a ratable allocation of the total difference between the unadjusted tax expense and the total adjusted tax expense, computed without consideration of any adjusting items using a with and without approach. We do not adjust for changes in tax valuation allowances because we do not believe it provides more meaningful information than is provided under GAAP. The reconciliation of adjusted net income (loss) to net income (loss) is set forth in Table 4 above. | |
|
(2) |
Pro forma adjusted to exclude the sale of our European differentiated surfactants business to Innospec on December 30, 2016 as if it had occurred at the beginning of the relevant period. |
|
(3) |
Management internally uses a free cash flow measure: (a) to evaluate the Company's liquidity, (b) to evaluate strategic investments, (c) to plan stock buyback and dividend levels and (d) to evaluate the Company's ability to incur and service debt. Free cash flow is not a defined term under U.S. GAAP, and it should not be inferred that the entire free cash flow amount is available for discretionary expenditures. The Company defines free cash flow as cash flow provided by operating activities less cash flow used in investing activities, excluding acquisition/disposition activities and non-recurring separation costs. Free cash flow is typically derived directly from the Company's condensed consolidated statement of cash flows; however, it may be adjusted for items that affect comparability between periods. |
|
(4) |
During the third quarter of 2017 we separated our Pigments and Additives division through an Initial Public Offering of Venator Materials PLC; Additionally, during the first quarter 2010 we closed our Australian styrenics operations. Results from these associated businesses are treated as discontinued operations. |
About Huntsman:
Huntsman Corporation is a publicly traded global manufacturer and marketer of differentiated and specialty chemicals with 2017 revenues more than $8 billion. Our chemical products number in the thousands and are sold worldwide to manufacturers serving a broad and diverse range of consumer and industrial end markets. We operate more than 75 manufacturing, R&D and operations facilities in approximately 30 countries and employ approximately 10,000 associates within our four distinct business divisions. For more information about Huntsman, please visit the company's website at www.huntsman.com.
Social Media:
Twitter: www.twitter.com/Huntsman_Corp
Facebook: www.facebook.com/huntsmancorp
LinkedIn: www.linkedin.com/company/huntsman
Forward-Looking Statements:
Certain information in this release constitutes forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. These statements are based on management's current beliefs and expectations. The forward-looking statements in this release are subject to uncertainty and changes in circumstances and involve risks and uncertainties that may affect the company's operations, markets, products, services, prices and other factors as discussed under the caption "Risk Factors" in the Huntsman companies' filings with the U.S. Securities and Exchange Commission. Significant risks and uncertainties may relate to, but are not limited to, volatile global economic conditions, cyclical and volatile product markets, disruptions in production at manufacturing facilities, reorganization or restructuring of Huntsman's operations, including any delay of, or other negative developments affecting the ability to implement cost reductions and manufacturing optimization improvements in Huntsman businesses and realize anticipated cost savings, and other financial, economic, competitive, environmental, political, legal, regulatory and technological factors. The company assumes no obligation to provide revisions to any forward-looking statements should circumstances change, except as otherwise required by applicable laws.
View original content with multimedia:http://www.prnewswire.com/news-releases/huntsman-announces-strong-first-quarter-2018-results-with-every-division-showing-earnings-growth-versus-the-prior-year-greater-than-100-million-in-share-repurchases-completed-to-date-300639428.html
SOURCE Huntsman Corporation
Article Date
5/1/2018Huntsman Completes the Purchase of Demilec, a Leading North American Spray Polyurethane Foam Insulation Manufacturer
Source: PR Newswire
Orignial Article: https://www.prnewswire.co...
THE WOODLANDS, Texas, April 23, 2018 /PRNewswire/ -- Huntsman Corporation (NYSE: HUN) today announced that it has completed the purchase of Demilec, one of North America's leading manufacturers and distributors of spray polyurethane foam (SPF) insulation systems. Huntsman acquired the business from an affiliate of Sun Capital Partners, Inc., for $350 million, subject to customary working capital adjustments, in an all-cash transaction which was funded from available liquidity.
The acquisition of Demilec is aligned with Huntsman's stated strategy to grow its downstream polyurethanes business and leverage its global platform to expand Demilec's portfolio of SPF formulations into international markets. The acquisition will generate substantial synergies as a result of Huntsman's ability to pull through significant volumes of lower margin upstream polymeric MDI into the higher margin and growing specialized SPF systems.
Demilec has annual revenues of approximately $170 million and two manufacturing facilities located in Arlington, Texas and Boisbriand, Quebec where it produces a full suite of MDI based SPF formulations which it markets directly to applicators as well as through distributors. Demilec specializes in both closed cell and open cell formulations, with a focus on products with renewable and recyclable content that are eco-friendly, bio-preferred and reduce energy consumption through highly efficient insulation properties.
Peter Huntsman, Chairman, President and CEO commented on the acquisition: "This is a great fit for our downstream growth strategy. We are excited to have Demilec become part of our growing Polyurethanes business. We expect to integrate the business fully by the end of this year when we expect to enjoy integrated SPF EBITDA margins greater than 25%."
Tony Hankins, President of Huntsman's Polyurethanes division, added: "Our approach to integration will ensure that the Demilec team remains focused on meeting the needs of their customers while benefiting from access to Huntsman's raw material supply, innovation capabilities and established global network."
About Huntsman:
Huntsman Corporation is a publicly traded global manufacturer and marketer of differentiated and specialty chemicals with 2017 revenues more than $8 billion. Our chemical products number in the thousands and are sold worldwide to manufacturers serving a broad and diverse range of consumer and industrial end markets. We operate more than 75 manufacturing, R&D and operations facilities in approximately 30 countries and employ approximately 10,000 associates within our four distinct business divisions. For more information about Huntsman, please visit the company's website at www.huntsman.com.
Social Media:
Twitter: www.twitter.com/Huntsman_Corp
Facebook: www.facebook.com/huntsmancorp
LinkedIn: www.linkedin.com/company/huntsman
Forward-Looking Statements:
Statements in this release that are not historical are forward-looking statements. These statements are based on management's current beliefs and expectations. The forward-looking statements in this release are subject to uncertainty and changes in circumstances and involve risks and uncertainties that may affect the company's operations, markets, products, services, prices and other factors as discussed in the Huntsman companies' filings with the U.S. Securities and Exchange Commission. Significant risks and uncertainties may relate to, but are not limited to, volatile global economic conditions, cyclical and volatile product markets, disruptions in production at manufacturing facilities, reorganization or restructuring of Huntsman's operations, the ability to implement cost reductions and manufacturing optimization improvements in Huntsman businesses, and other financial, economic, competitive, environmental, political, legal, regulatory and technological factors. The company assumes no obligation to provide revisions to any forward-looking statements should circumstances change, except as otherwise required by applicable laws.
View original content with multimedia:http://www.prnewswire.com/news-releases/huntsman-completes-the-purchase-of-demilec-a-leading-north-american-spray-polyurethane-foam-insulation-manufacturer-300634855.html
SOURCE Huntsman Corporation
Article Date
4/23/20183/13/2018 - Huntsman Acquires Demilec, a Leading North American Spray Polyurethane Foam Insulation Manufacturer
Huntsman Acquires Demilec, a Leading North American Spray Polyurethane Foam Insulation Manufacturer
Source: PR Newswire
Orignial Article: https://www.prnewswire.co...
THE WOODLANDS, Texas, March 13, 2018 /PRNewswire/ -- Huntsman Corporation (NYSE: HUN) today announced the acquisition of Demilec, one of North America's leading manufacturers and distributors of spray polyurethane foam (SPF) insulation systems for residential and commercial applications, from an affiliate of Sun Capital Partners, Inc.
Demilec has annual revenues of approximately $170 million and two manufacturing facilities located in Arlington, Texas and Boisbriand, Quebec where they produce a full suite of MDI based SPF formulations which they market directly to applicators as well as through distributors. Demilec specializes in both closed cell and open cell formulations, with a focus on products with renewable and recyclable content that are eco-friendly, bio-preferred and reduce energy consumption through highly efficient insulation properties.
Under terms of the agreement, Huntsman will pay $350 million in an all-cash transaction, funded from available liquidity. Based upon full year 2018 EBITDA estimates, this represents a purchase price multiple of approximately 11.5x or 7.5x, pro forma for synergies. The transaction is expected to close by the end of second quarter 2018.
Commenting on the acquisition, Tony Hankins, President of Huntsman's Polyurethanes division, said: "Demilec has pioneered MDI SPF insulation and coating technologies for over 30 years, building a strong market reputation with architects, builders and designers. Demilec and the entire SPF industry has delivered strong double digit growth, which we expect to be sustained as their technology provides outstanding insulation performance in a world which is increasingly concerned with improving energy efficiency. The Demilec team will continue to be fundamental to the ongoing success of the integrated business after the transaction has closed, as we rapidly build our North American platform and aggressively expand the business into international markets."
Peter Huntsman, Chairman, President and CEO further commented: "This bolt-on acquisition is a great fit to our core strategy to move downstream. The integration of Demilec into our Polyurethanes business offers significant synergies and delivers substantially higher and very stable margins by pulling through large amounts of upstream polymeric MDI into specialized spray foam systems. This integrated business will have greater than 25% EBITDA margins and double digit growth."
About Huntsman:
Huntsman Corporation is a publicly traded global manufacturer and marketer of differentiated and specialty chemicals with 2017 revenues of approximately $8 billion. Our chemical products number in the thousands and are sold worldwide to manufacturers serving a broad and diverse range of consumer and industrial end markets. We operate more than 75 manufacturing, R&D and operations facilities in approximately 30 countries and employ approximately 10,000 associates within our four distinct business divisions. For more information about Huntsman, please visit the company's website at www.huntsman.com.
Social Media:
Twitter: www.twitter.com/Huntsman_Corp
Facebook: www.facebook.com/huntsmancorp
LinkedIn: www.linkedin.com/company/huntsman
Forward-Looking Statements:
Statements in this release that are not historical are forward-looking statements. These statements are based on management's current beliefs and expectations. The forward-looking statements in this release are subject to uncertainty and changes in circumstances and involve risks and uncertainties that may affect the company's operations, markets, products, services, prices and other factors as discussed in the Huntsman companies' filings with the U.S. Securities and Exchange Commission. Significant risks and uncertainties may relate to, but are not limited to, volatile global economic conditions, cyclical and volatile product markets, disruptions in production at manufacturing facilities, reorganization or restructuring of Huntsman's operations, the ability to implement cost reductions and manufacturing optimization improvements in Huntsman businesses, and other financial, economic, competitive, environmental, political, legal, regulatory and technological factors. The company assumes no obligation to provide revisions to any forward-looking statements should circumstances change, except as otherwise required by applicable laws.
View original content with multimedia:http://www.prnewswire.com/news-releases/huntsman-acquires-demilec-a-leading-north-american-spray-polyurethane-foam-insulation-manufacturer-300613558.html
SOURCE Huntsman Corporation
Article Date
3/13/2018Huntsman Announces Strong Fourth Quarter 2017 Results; Net Leverage Reduced to 1.4x; The Board Approves a 30% Dividend Increase and Share Repurchases of up to $450 million
Source: PR Newswire
Orignial Article: https://www.prnewswire.co...
THE WOODLANDS, Texas, Feb. 23, 2018 /PRNewswire/ --
Fourth Quarter 2017 Highlights
Full Year 2017 Highlights
|
Three months ended |
Twelve months ended | |||||||||
|
December 31, |
September 30, |
December 31, | ||||||||
|
In millions, except per share amounts |
2017 |
2016 |
2017 |
2017 |
2016 | |||||
|
Revenues |
$2,203 |
$1,904 |
$ 2,169 |
$8,358 |
$ 7,518 | |||||
|
Net income |
$ 287 |
$ 137 |
$ 179 |
$ 741 |
$ 357 | |||||
|
Adjusted net income(1) |
$ 186 |
$ 50 |
$ 164 |
$ 604 |
$ 352 | |||||
|
Diluted income per share |
$ 1.00 |
$ 0.53 |
$ 0.60 |
$ 2.61 |
$ 1.36 | |||||
|
Adjusted diluted income per share(1) |
$ 0.76 |
$ 0.21 |
$ 0.67 |
$ 2.48 |
$ 1.47 | |||||
|
Adjusted EBITDA(1) |
$ 360 |
$ 210 |
$ 340 |
$1,259 |
$ 997 | |||||
|
Pro forma adjusted EBITDA(2) |
$ 360 |
$ 204 |
$ 340 |
$1,259 |
$ 969 | |||||
|
Net cash provided by operating activities |
$ 304 |
$ 238 |
$ 261 |
$ 842 |
$ 974 | |||||
|
Free cash flow(3) |
$ 190 |
$ 133 |
$ 227 |
$ 594 |
$ 656 | |||||
|
See end of press release for footnote explanations |
||||||||||
Huntsman Corporation (NYSE: HUN) today reported fourth quarter 2017 results with revenues of $2,203 million, net income of $287 million and adjusted EBITDA of $360 million.
Peter R. Huntsman, Chairman, President and CEO, commented:
"2017 was a transformational year marked with significant milestones for our Company. We successfully separated our Pigments and Additives business, now called Venator, by IPO and completed a first follow-on offering in December. Combined with our cash flow and the $1.7 billion in net proceeds from Venator, we were able to pay down approximately $2.1 billion in debt during the year. This debt reduction enabled Huntsman to enter 2018 with the strongest balance sheet in its history, with a net debt to EBITDA ratio of 1.4x, which is well within investment grade metrics.
"With a stronger balance sheet, our focus will be to continue to invest in our operational reliability and organic growth. We expect to generate between $450 million and $650 million of free cash flow in the upcoming years. We will also pursue acquisitions that will create value, greater growth in our downstream business and stronger earnings. This morning we are enhancing our shareholder returns by increasing the dividend 30% and announcing a share repurchase program of up to $450 million."
Segment Analysis for 4Q17 Compared to 4Q16
Polyurethanes
The increase in revenues in our Polyurethanes segment for the three months ended December 31, 2017 compared to the same period in 2016 was primarily due to higher MDI average selling prices and MDI sales volumes. MDI average selling prices increased due to strong market conditions in all regions. The increase in MDI sales volumes was more than offset by a decrease in MTBE sales volumes resulting from the timing of MTBE shipments. The increase in adjusted EBITDA was primarily due higher MDI margins and sales volumes.
Performance Products
Revenues in our Performance Products segment for the three months ended December 31, 2017 compared to the same period in 2016 were essentially flat as higher average selling prices and improved mix were offset by lower sales volumes. Average selling prices increased primarily in response to higher raw material costs and favorable product mix. The decrease in sales volumes was primarily due to the sale of the European surfactants business to Innospec Inc. in 2016, as well as planned and unplanned outages at our Port Neches site. The decrease in adjusted EBITDA was primarily due to the sale of the European surfactants business and higher costs, which includes the impact of the outages in the quarter, partially mitigated by continued margin improvement in our maleic anhydride business.
Advanced Materials
The increase in revenues in our Advanced Materials segment for the three months ended December 31, 2017, compared to the same period in 2016, was primarily due to higher average sales prices. Average selling prices increased primarily due to sales mix, as sales volumes in our higher value specialty business increased across all of our core markets. This growth in revenues was partially offset by lower sales volumes in our lower value wind and other commodity markets. Adjusted EBITDA increased due to higher specialty sales volumes and lower fixed costs, partially offset by higher raw material costs.
Textile Effects
The increase in revenues in our Textile Effects segment for the three months ended December 31, 2017 compared to the same period in 2016 was primarily due to volume growth, partially offset by lower average selling prices and unfavorable product mix. Sales volumes increased in the Americas, Europe and China. Average selling prices decreased primarily due to lower raw material costs. The increase in adjusted EBITDA was primarily due to higher sales volumes.
Corporate, LIFO and Other
Adjusted EBITDA from Corporate, LIFO and Other decreased by $1 million to a loss of $53 million for the three months ended December 31, 2017 compared to a loss of $52 million for the same period in 2016.
Held for Sale and Discontinued Operations
Our former Pigments and Additives segment, now known as Venator, is now classified as held for sale on our balance sheet and treated as discontinued operations on our income statement. Please refer to the Form 8-K we filed on October 31, 2017 with certain restated historical financial data. Huntsman currently owns 53% of Venator's outstanding shares.
Liquidity, Capital Resources and Outstanding Debt
During the fourth quarter of 2017, we generated adjusted free cash flow of $190 million compared to $133 for the same period 2016. As of December 31, 2017, we had $1,247 million of combined cash and unused borrowing capacity compared to $1,208 million as of December 31, 2016. For the full year 2017, including the approximate $1.7 billion debt repayment made with the proceeds of the Venator separation, we repaid approximately $2.1 billion of debt. In connection with this debt reduction, Huntsman has repaid in full its senior secured term loan facility under its Senior Credit Facilities.
During the full year 2017, we spent $282 million on capital expenditures compared to $318 million in 2016. We expect to spend approximately $325 million on capital expenditures in 2018.
Income Taxes
During the three months ended December 31, 2017, we recorded an income tax benefit of $14 million compared to income tax expense of $44 million during the same period in 2016. This 2017 fourth quarter income tax benefit is largely the result of the new U.S. tax law, including a revaluation of our U.S. deferred tax liabilities at a lower tax rate partially offset by transition taxes on the deemed repatriation of deferred foreign income. In the fourth quarter 2017, our adjusted effective tax rate was 23%. Our 2018 estimated adjusted effective tax rate will be approximately 21% - 23%, which includes the benefit of the recent U.S. income tax reform.
The Board Approved a 30% Dividend Increase and Share Repurchases of up to $450 Million
Effective February 7, 2018, our Board of Directors approved an increase in our quarterly per share dividend from $0.125 to $0.1625. In addition, it authorized our Company to repurchase up to $400 million in shares of our common stock in addition to the $50 million remaining under our September 2015 share repurchase authorization. Repurchases may be made through the open market or in privately negotiated transactions, and repurchases may be commenced or suspended from time to time without prior notice. Shares of common stock acquired through the repurchase program are to be held in treasury at cost.
Earnings Conference Call Information
We will hold a conference call to discuss our fourth quarter 2017 financial results on Friday, February 23, 2018 at 10:00 a.m. ET.
|
Call-in numbers for the conference call: | ||
|
U.S. participants |
(888) 680 - 0890 | |
|
International participants |
(617) 213 - 4857 | |
|
Passcode |
299 322 06# | |
In order to facilitate the registration process, you may use the following link to pre-register for the conference call. Callers who pre-register will be given a unique PIN to gain immediate access to the call and bypass the live operator. You may pre-register at any time, including up to and after the call start time. To pre-register, please go to:
https://www.theconferencingservice.com/prereg/key.process?key=PX4DVDQR7
Webcast Information
The conference call will be available via webcast and can be accessed from the company's website at ir.huntsman.com.
Replay Information
The conference call will be available for replay beginning February 23, 2018 and ending March 2, 2018.
|
Call-in numbers for the replay: | ||
|
U.S. participants |
(888) 286 - 8010 | |
|
International participants |
(617) 801 - 6888 | |
|
Replay code |
29385180 | |
Upcoming Conferences
During the first quarter a member of management is expected to present at the Alembic Industrial and Chemical Conference on March 1-2, 2018. A webcast of the presentation, if applicable, along with accompanying materials will be available at ir.huntsman.com.
2018 Investor Day
Huntsman will host a meeting for investors and analysts on Wednesday, May 23, 2018 from 8:00 a.m. to 12:00 p.m., local time in New York City. The agenda for the meeting will include a review of the company's business strategy and an in-depth discussion of each of the company's businesses. Presenters will include Peter Huntsman, Chairman and CEO, and other business leaders. A live webcast and presentation materials will be available the day of the event at ir.huntsman.com. A replay of the webcast will be available following the presentations. Registration information will be forthcoming.
|
Table 1 -- Results of Operations | ||||||||
|
Three months ended |
Twelve months ended | |||||||
|
December 31, |
December 31, | |||||||
|
In millions, except per share amounts |
2017 |
2016 |
2017 |
2016 | ||||
|
Revenues |
$2,203 |
$1,904 |
$8,358 |
$7,518 | ||||
|
Cost of goods sold |
1,694 |
1,548 |
6,546 |
5,992 | ||||
|
Gross profit |
509 |
356 |
1,812 |
1,526 | ||||
|
Operating expenses |
236 |
140 |
913 |
804 | ||||
|
Restructuring, impairment and plant closing costs (credits) |
7 |
(9) |
20 |
47 | ||||
|
Expenses associated with the merger |
10 |
- |
28 |
- | ||||
|
Operating income |
256 |
225 |
851 |
675 | ||||
|
Interest expense |
(31) |
(50) |
(165) |
(203) | ||||
|
Equity in income of investment in unconsolidated affiliates |
9 |
1 |
13 |
5 | ||||
|
Loss on early extinguishment of debt |
(18) |
- |
(54) |
(3) | ||||
|
Other income |
- |
1 |
2 |
- | ||||
|
Income before income taxes |
216 |
177 |
647 |
474 | ||||
|
Income tax benefit (expense) |
14 |
(44) |
(64) |
(109) | ||||
|
Income from continuing operations |
230 |
133 |
583 |
365 | ||||
|
Income (loss) from discontinued operations, net of tax(4) |
57 |
4 |
158 |
(8) | ||||
|
Net income |
287 |
137 |
741 |
357 | ||||
|
Net income attributable to noncontrolling interests, net of tax |
(41) |
(9) |
(105) |
(31) | ||||
|
Net income attributable to Huntsman Corporation |
$ 246 |
$ 128 |
$ 636 |
$ 326 | ||||
|
Adjusted EBITDA(1) |
$ 360 |
$ 210 |
$1,259 |
$ 997 | ||||
|
Adjusted net income(1) |
$ 186 |
$ 50 |
$ 604 |
$ 352 | ||||
|
Basic income per share |
$ 1.03 |
$ 0.54 |
$ 2.67 |
$ 1.38 | ||||
|
Diluted income per share |
$ 1.00 |
$ 0.53 |
$ 2.61 |
$ 1.36 | ||||
|
Adjusted diluted income per share(1) |
$ 0.76 |
$ 0.21 |
$ 2.48 |
$ 1.47 | ||||
|
Common share information: |
||||||||
|
Basic shares outstanding |
240 |
236 |
238 |
236 | ||||
|
Diluted shares |
245 |
241 |
244 |
240 | ||||
|
Diluted shares for adjusted diluted income per share |
245 |
241 |
244 |
240 | ||||
|
See end of press release for footnote explanations | ||||||||
|
Table 2 -- Results of Operations by Segment | ||||||||||||
|
Three months ended |
Twelve months ended |
|||||||||||
|
December 31, |
Better / |
December 31, |
Better / | |||||||||
|
In millions |
2017 |
2016 |
(Worse) |
2017 |
2016 |
(Worse) | ||||||
|
Segment Revenues: |
||||||||||||
|
Polyurethanes |
$1,227 |
$ 964 |
27% |
$4,399 |
$3,667 |
20% | ||||||
|
Performance Products |
514 |
515 |
0% |
2,109 |
2,126 |
(1)% | ||||||
|
Performance Products, pro forma(2) |
514 |
452 |
14% |
2,109 |
1,885 |
12% | ||||||
|
Advanced Materials |
258 |
246 |
5% |
1,040 |
1,020 |
2% | ||||||
|
Textile Effects |
190 |
184 |
3% |
776 |
751 |
3% | ||||||
|
Corporate and eliminations |
14 |
(5) |
n/m |
34 |
(46) |
n/m | ||||||
|
Total |
$2,203 |
$1,904 |
16% |
$8,358 |
$7,518 |
11% | ||||||
|
Total, pro forma(2) |
$2,203 |
$1,841 |
20% |
$8,358 |
$7,277 |
15% | ||||||
|
Segment Adjusted EBITDA(1): |
||||||||||||
|
Polyurethanes |
$ 294 |
$ 130 |
126% |
$ 850 |
$ 569 |
49% | ||||||
|
Performance Products |
47 |
68 |
(31)% |
296 |
316 |
(6)% | ||||||
|
Performance Products, pro forma(2) |
47 |
62 |
(24)% |
296 |
288 |
3% | ||||||
|
Advanced Materials |
53 |
50 |
6% |
219 |
223 |
(2)% | ||||||
|
Textile Effects |
19 |
14 |
36% |
83 |
73 |
14% | ||||||
|
Corporate, LIFO and other |
(53) |
(52) |
(2)% |
(189) |
(184) |
(3)% | ||||||
|
Total |
$ 360 |
$ 210 |
71% |
$1,259 |
$ 997 |
26% | ||||||
|
Total, pro forma(2) |
$ 360 |
$ 204 |
76% |
$1,259 |
$ 969 |
30% | ||||||
|
n/m = not meaningful |
||||||||||||
|
See end of press release for footnote explanations |
||||||||||||
|
Table 3 -- Factors Impacting Sales Revenue | |||||||||||
|
Three months ended |
|||||||||||
|
December 31, 2017 vs. 2016 |
|||||||||||
|
Average Selling Price(a) |
|||||||||||
|
Local |
Exchange |
Sales Mix |
Sales |
||||||||
|
Currency |
Rate |
& Other |
Volume(b) |
Total |
|||||||
|
Polyurethanes |
21% |
4% |
4% |
(2)% |
27% |
||||||
|
Polyurethanes, adj |
20% |
4% |
6% |
(7)% |
23% |
(e) | |||||
|
Performance Products |
8% |
2% |
6% |
(16)% |
0% |
||||||
|
Performance Products, adj |
3% |
2% |
1% |
14% |
20% |
(c)(e) | |||||
|
Advanced Materials |
2% |
3% |
1% |
(1)% |
5% |
||||||
|
Textile Effects |
(2)% |
2% |
(1)% |
4% |
3% |
||||||
|
Total Company |
13% |
3% |
7% |
(7)% |
16% |
||||||
|
Total Company, adj |
11% |
3% |
5% |
0% |
19% |
(c)(e) | |||||
|
Twelve months ended |
|||||||||||
|
December 31, 2017 vs. 2016 |
|||||||||||
|
Average Selling Price(a) |
|||||||||||
|
Local |
Exchange |
Sales Mix |
Sales |
||||||||
|
Currency |
Rate |
& Other |
Volume(b) |
Total |
|||||||
|
Polyurethanes |
18% |
1% |
3% |
(2)% |
20% |
||||||
|
Polyurethanes, adj |
19% |
1% |
2% |
(1)% |
21% |
(d)(e) | |||||
|
Performance Products |
7% |
0% |
3% |
(11)% |
(1)% |
||||||
|
Performance Products, adj |
3% |
0% |
1% |
13% |
17% |
(c)(d)(e) | |||||
|
Advanced Materials |
1% |
1% |
0% |
0% |
2% |
||||||
|
Textile Effects |
(2)% |
0% |
(2)% |
7% |
3% |
||||||
|
Total Company |
12% |
0% |
4% |
(5)% |
11% |
||||||
|
Total Company, adj |
11% |
0% |
2% |
4% |
17% |
(c)(d)(e) | |||||
|
(a) |
Excludes sales from tolling arrangements, by-products and raw materials. |
|
(b) |
Excludes sales from by-products and raw materials. |
|
(c) |
Pro forma adjusted to exclude the sale of the European differentiated surfactants on December 30, 2016. |
|
(d) |
Pro forma adjusted to exclude the impact from Hurricane Harvey in 3Q17 |
|
(e) |
Pro forma adjusted to exclude the impact of cetain planned maintenance outages and unplanned weather related and other outages in 2016 & 2017 |
|
Table 4 -- Reconciliation of U.S. GAAP to Non-GAAP Measures | |||||||||||||||||
|
Income Tax |
Diluted Income |
||||||||||||||||
|
EBITDA |
Benefit (Expense) |
Net Income |
Per Share |
||||||||||||||
|
Three months ended |
Three months ended |
Three months ended |
Three months ended |
||||||||||||||
|
December 31, |
December 31, |
December 31, |
December 31, |
||||||||||||||
|
In millions, except per share amounts |
2017 |
2016 |
2017 |
2016 |
2017 |
2016 |
2017 |
2016 |
|||||||||
|
Net income |
$ 287 |
$ 137 |
$ 287 |
$ 137 |
$ 1.17 |
$ 0.57 |
|||||||||||
|
Net income attributable to noncontrolling interests |
(41) |
(9) |
(41) |
(9) |
(0.17) |
(0.04) |
|||||||||||
|
Net income attributable to Huntsman Corporation |
246 |
128 |
246 |
128 |
1.00 |
0.53 |
|||||||||||
|
Interest expense from continuing operations |
31 |
50 |
|||||||||||||||
|
Interest expense from discontinued operations(4) |
11 |
- |
|||||||||||||||
|
Income tax (benefit) expense from continuing operations |
(14) |
44 |
$ 14 |
$ (44) |
|||||||||||||
|
Income tax expense (benefit) from discontinued operations(4) |
26 |
(16) |
|||||||||||||||
|
Depreciation and amortization from continuing operations |
84 |
80 |
|||||||||||||||
|
Depreciation and amortization from discontinued operations(4) |
- |
30 |
|||||||||||||||
|
Acquisition and integration expenses |
2 |
1 |
(1) |
- |
1 |
1 |
- |
- |
|||||||||
|
EBITDA / Income from discontinued operations, net of tax(4) |
(94) |
(18) |
N/A |
N/A |
(57) |
(4) |
(0.23) |
(0.02) |
|||||||||
|
Minority interest of discontinued operations(1)(4) |
31 |
3 |
N/A |
N/A |
31 |
3 |
0.13 |
0.01 |
|||||||||
|
U.S. tax reform impact on minority interest |
(6) |
- |
N/A |
N/A |
(6) |
- |
(0.02) |
- |
|||||||||
|
U.S. tax reform impact on tax expense |
N/A |
N/A |
(52) |
- |
(52) |
- |
(0.21) |
- |
|||||||||
|
Gain on disposition of businesses/assets |
(1) |
(97) |
- |
13 |
(1) |
(84) |
- |
(0.35) |
|||||||||
|
Loss on early extinguishment of debt |
18 |
- |
(7) |
- |
11 |
- |
0.04 |
- |
|||||||||
|
Expenses associated with merger, net of tax |
10 |
- |
(9) |
- |
1 |
- |
- |
- |
|||||||||
|
Certain legal settlements and related (income) expenses |
(12) |
1 |
4 |
- |
(8) |
1 |
(0.03) |
- |
|||||||||
|
Net plant incident costs |
3 |
- |
(2) |
- |
1 |
- |
- |
- |
|||||||||
|
Amortization of pension and postretirement actuarial losses |
18 |
13 |
(5) |
(2) |
13 |
11 |
0.05 |
0.05 |
|||||||||
|
Restructuring, impairment and plant closing and transition costs (credits) |
7 |
(9) |
(1) |
3 |
6 |
(6) |
0.02 |
(0.02) |
|||||||||
|
Adjusted(1) |
$ 360 |
$ 210 |
$ (59) |
$ (30) |
$ 186 |
$ 50 |
$ 0.76 |
$ 0.21 |
|||||||||
|
Pro forma adjustments(2) |
- |
(6) |
|||||||||||||||
|
Pro forma adjusted EBITDA(1) |
$ 360 |
$ 204 |
|||||||||||||||
|
Adjusted income tax expense(1) |
$ 59 |
$ 30 |
|||||||||||||||
|
Net income attributable to noncontrolling interests, net of tax |
41 |
9 |
|||||||||||||||
|
Minority interest of discontinued operations(1)(4) |
(31) |
(3) |
|||||||||||||||
|
U.S. tax reform impact on minority interest |
6 |
- |
|||||||||||||||
|
Adjusted pre-tax income(1) |
$ 261 |
$ 86 |
|||||||||||||||
|
Adjusted effective tax rate |
23% |
35% |
|||||||||||||||
|
Income Tax |
Diluted Income |
||||||||||||||||
|
EBITDA |
Expense |
Net Income |
Per Share |
||||||||||||||
|
Three months ended |
Three months ended |
Three months ended |
Three months ended |
||||||||||||||
|
September 30, |
September 30, |
September 30, |
September 30, |
||||||||||||||
|
In millions, except per share amounts |
2017 |
2017 |
2017 |
2017 |
|||||||||||||
|
Net income |
$ 179 |
$ 179 |
$ 0.73 |
||||||||||||||
|
Net income attributable to noncontrolling interests |
(32) |
(32) |
(0.13) |
||||||||||||||
|
Net income attributable to Huntsman Corporation |
147 |
147 |
0.60 |
||||||||||||||
|
Interest expense from continuing operations |
39 |
||||||||||||||||
|
Interest expense from discontinued operations(4) |
8 |
||||||||||||||||
|
Income tax expense from continuing operations |
35 |
$ (35) |
|||||||||||||||
|
Income tax expense from discontinued operations(4) |
17 |
||||||||||||||||
|
Depreciation and amortization from continuing operations |
80 |
||||||||||||||||
|
Depreciation and amortization from discontinued operations(4) |
9 |
||||||||||||||||
|
Acquisition and integration expenses |
10 |
(3) |
7 |
0.03 |
|||||||||||||
|
EBITDA / Income from discontinued operations, net of tax(4) |
(97) |
N/A |
(63) |
(0.26) |
|||||||||||||
|
Minority interest of discontinued operations(1)(4) |
12 |
N/A |
12 |
0.05 |
|||||||||||||
|
Loss on early extinguishment of debt |
35 |
(12) |
23 |
0.09 |
|||||||||||||
|
Expenses associated with merger |
12 |
(1) |
11 |
0.05 |
|||||||||||||
|
Net plant incident costs |
13 |
(4) |
9 |
0.04 |
|||||||||||||
|
Amortization of pension and postretirement actuarial losses |
19 |
(3) |
16 |
0.07 |
|||||||||||||
|
Restructuring, impairment and plant closing and transition costs |
1 |
1 |
2 |
0.01 |
|||||||||||||
|
Adjusted(1) |
$ 340 |
$ (57) |
$ 164 |
$ 0.67 |
|||||||||||||
|
Adjusted income tax expense(1) |
$ 57 |
||||||||||||||||
|
Net income attributable to noncontrolling interests, net of tax |
32 |
||||||||||||||||
|
Minority interest of discontinued operations(1)(4) |
(12) |
||||||||||||||||
|
U.S. tax reform impact on minority interest |
- |
||||||||||||||||
|
Adjusted pre-tax income(1) |
$ 241 |
||||||||||||||||
|
Adjusted effective tax rate |
24% |
||||||||||||||||
|
Income Tax |
Diluted Income |
||||||||||||||||
|
EBITDA |
Expense |
Net Income |
Per Share |
||||||||||||||
|
Twelve months ended |
Twelve months ended |
Twelve months ended |
Twelve months ended |
||||||||||||||
|
December 31, |
December 31, |
December 31, |
December 31, |
||||||||||||||
|
In millions, except per share amounts |
2017 |
2016 |
2017 |
2016 |
2017 |
2016 |
2017 |
2016 |
|||||||||
|
Net income |
$ 741 |
$ 357 |
$ 741 |
$ 357 |
$ 3.04 |
$ 1.49 |
|||||||||||
|
Net income attributable to noncontrolling interests |
(105) |
(31) |
(105) |
(31) |
(0.43) |
(0.13) |
|||||||||||
|
Net income attributable to Huntsman Corporation |
636 |
326 |
636 |
326 |
2.61 |
1.36 |
|||||||||||
|
Interest expense from continuing operations |
165 |
203 |
|||||||||||||||
|
Interest expense (income) from discontinued operations(4) |
19 |
(1) |
|||||||||||||||
|
Income tax expense from continuing operations |
64 |
109 |
(64) |
(109) |
|||||||||||||
|
Income tax expense (benefit) from discontinued operations(4) |
67 |
(24) |
|||||||||||||||
|
Depreciation and amortization from continuing operations |
319 |
318 |
|||||||||||||||
|
Depreciation and amortization from discontinued operations(4) |
68 |
114 |
|||||||||||||||
|
Acquisition and integration expenses |
19 |
12 |
(5) |
(3) |
14 |
9 |
0.06 |
0.04 |
|||||||||
|
EBITDA / Income from discontinued operations, net of tax(4) |
(312) |
(81) |
N/A |
N/A |
(158) |
8 |
(0.65) |
0.03 |
|||||||||
|
Minority interest of discontinued operations(1)(4) |
49 |
11 |
N/A |
N/A |
49 |
11 |
0.20 |
0.05 |
|||||||||
|
U.S. tax reform impact on minority interest |
(6) |
- |
N/A |
N/A |
(6) |
- |
(0.02) |
- |
|||||||||
|
U.S. tax reform impact on tax expense |
N/A |
N/A |
(52) |
- |
(52) |
- |
(0.21) |
- |
|||||||||
|
Gain on disposition of businesses/assets |
(9) |
(97) |
- |
13 |
(9) |
(84) |
(0.04) |
(0.35) |
|||||||||
|
Loss on early extinguishment of debt |
54 |
3 |
(19) |
(1) |
35 |
2 |
0.14 |
0.01 |
|||||||||
|
Expenses associated with merger |
28 |
- |
(10) |
- |
18 |
- |
0.07 |
- |
|||||||||
|
Certain legal settlements and related (income) expenses |
(11) |
1 |
4 |
- |
(7) |
1 |
(0.03) |
- |
|||||||||
|
Net plant incident costs |
16 |
- |
(6) |
- |
10 |
- |
0.04 |
- |
|||||||||
|
Amortization of pension and postretirement actuarial losses |
73 |
55 |
(16) |
(12) |
57 |
43 |
0.23 |
0.18 |
|||||||||
|
Restructuring, impairment and plant closing and transition costs |
20 |
48 |
(3) |
(12) |
17 |
36 |
0.07 |
0.15 |
|||||||||
|
Adjusted(1) |
$ 1,259 |
$ 997 |
$ (171) |
$ (124) |
$ 604 |
$ 352 |
$ 2.48 |
$ 1.47 |
|||||||||
|
Pro forma adjustments(2) |
- |
(28) |
|||||||||||||||
|
Pro forma adjusted EBITDA(1) |
$ 1,259 |
$ 969 |
|||||||||||||||
|
Adjusted income tax expense(1) |
$ 171 |
$ 124 |
|||||||||||||||
|
Net income attributable to noncontrolling interests, net of tax |
105 |
31 |
|||||||||||||||
|
Minority interest of discontinued operations(1)(4) |
(49) |
(11) |
|||||||||||||||
|
U.S. tax reform impact on minority interest |
6 |
- |
|||||||||||||||
|
Adjusted pre-tax income(1) |
$ 837 |
$ 496 |
|||||||||||||||
|
Adjusted effective tax rate |
20% |
25% |
|||||||||||||||
|
See end of press release for footnote explanations |
|||||||||||||||||
|
Table 5 -- Selected Balance Sheet Items | ||||||
|
December 31, |
September 30, |
December 31, | ||||
|
In millions |
2017 |
2017 |
2016 | |||
|
Cash |
$ 481 |
$ 451 |
$ 396 | |||
|
Accounts and notes receivable, net |
1,283 |
1,247 |
1,183 | |||
|
Inventories |
1,073 |
1,084 |
918 | |||
|
Other current assets |
262 |
240 |
281 | |||
|
Current assets held for sale |
2,880 |
2,745 |
777 | |||
|
Property, plant and equipment, net |
3,098 |
3,035 |
3,034 | |||
|
Other assets |
1,167 |
1,181 |
1,137 | |||
|
Noncurrent assets held for sale |
- |
- |
1,463 | |||
|
Total assets |
$ 10,244 |
$ 9,983 |
$ 9,189 | |||
|
Accounts payable |
$ 964 |
$ 891 |
$ 790 | |||
|
Other current liabilities |
569 |
537 |
471 | |||
|
Current portion of debt |
40 |
29 |
50 | |||
|
Current liabilities held for sale |
1,692 |
1,633 |
467 | |||
|
Long-term debt |
2,258 |
2,845 |
4,122 | |||
|
Other liabilities |
1,350 |
1,457 |
1,429 | |||
|
Noncurrent liabilities held for sale |
- |
- |
393 | |||
|
Total equity |
3,371 |
2,591 |
1,467 | |||
|
Total liabilities and equity |
$ 10,244 |
$ 9,983 |
$ 9,189 | |||
|
Table 6 -- Outstanding Debt | ||||
|
December 31, |
December 31, | |||
|
In millions |
2017 |
2016 | ||
|
Debt: |
||||
|
Senior credit facilities |
$ - |
$ 1,967 | ||
|
Accounts receivable programs |
180 |
208 | ||
|
Senior notes |
1,927 |
1,812 | ||
|
Variable interest entities |
107 |
126 | ||
|
Other debt |
84 |
59 | ||
|
Total debt - excluding affiliates |
2,298 |
4,172 | ||
|
Total cash |
481 |
396 | ||
|
Net debt- excluding affiliates |
$ 1,817 |
$ 3,776 | ||
|
Table 7 -- Summarized Statement of Cash Flows | ||||||||
|
Three months ended |
Twelve months ended | |||||||
|
December 31, |
December 31, | |||||||
|
In millions |
2017 |
2016 |
2017 |
2016 | ||||
|
Total cash at beginning of period(a) |
$ 637 |
$450 |
$ 425 |
$ 269 | ||||
|
Net cash provided by operating activities - continuing operations |
304 |
238 |
842 |
974 | ||||
|
Net cash provided by operating activities - discontinued operations(4) |
172 |
2 |
377 |
114 | ||||
|
Net cash (used in) provided by investing activities - continuing operations |
(120) |
94 |
(265) |
(119) | ||||
|
Net cash used in investing activities - discontinued operations(4) |
(110) |
(26) |
(159) |
(83) | ||||
|
Net cash used in financing activities |
(170) |
(326) |
(519) |
(723) | ||||
|
Effect of exchange rate changes on cash |
6 |
(7) |
18 |
(6) | ||||
|
Change in restricted cash |
- |
- |
- |
(1) | ||||
|
- | ||||||||
|
Total cash at end of period(a) |
$ 719 |
$425 |
$ 719 |
$ 425 | ||||
|
Supplemental cash flow information - continuing operations: |
||||||||
|
Cash paid for interest |
$ (47) |
$ (66) |
$ (169) |
$(205) | ||||
|
Cash paid for income taxes |
(45) |
(11) |
(9) |
(40) | ||||
|
Cash paid for capital expenditures |
(123) |
(104) |
(282) |
(318) | ||||
|
Depreciation and amortization |
84 |
80 |
319 |
318 | ||||
|
- |
||||||||
|
Changes in primary working capital: |
||||||||
|
Accounts and notes receivable |
(35) |
(22) |
(183) |
(25) | ||||
|
Inventories |
14 |
44 |
(104) |
177 | ||||
|
Accounts payable |
59 |
57 |
154 |
46 | ||||
|
Total cash provided by (used in) primary working capital |
$ 38 |
$ 79 |
$ (133) |
$ 198 | ||||
|
Three months ended |
Twelve months ended | |||||||
|
December 31, |
December 31, | |||||||
|
2017 |
2016 |
2017 |
2016 | |||||
|
Free cash flow(3): |
||||||||
|
Net cash provided by operating activities |
$ 304 |
$238 |
$ 842 |
$ 974 | ||||
|
Capital expenditures |
(123) |
(104) |
(282) |
(318) | ||||
|
All other investing activities, excluding acquisition and disposition activities(b) |
(1) |
(1) |
6 |
- | ||||
|
Non-recurring merger costs(c) |
10 |
- |
28 |
- | ||||
|
Total free cash flow |
$ 190 |
$133 |
$ 594 |
$ 656 | ||||
|
Adjusted EBITDA |
$ 360 |
$210 |
$ 1,259 |
$ 997 | ||||
|
Capital expenditures |
(123) |
(104) |
(282) |
(318) | ||||
|
Capital reimbursements |
2 |
4 |
3 |
32 | ||||
|
Interest |
(47) |
(66) |
(169) |
(205) | ||||
|
Income taxes |
(45) |
(11) |
(9) |
(40) | ||||
|
Primary working capital change |
38 |
79 |
(133) |
198 | ||||
|
Restructuring |
(10) |
(4) |
(36) |
(46) | ||||
|
Pensions |
(26) |
(15) |
(111) |
(60) | ||||
|
Maintenance & other |
41 |
40 |
72 |
98 | ||||
|
Total free cash flow(3) |
$ 190 |
$133 |
$ 594 |
$ 656 | ||||
|
(a) |
Includes restricted cash and cash held in discontinued operations. | |
|
(b) |
Represents "Acquisition of business, net of cash acquired", "Cash received from purchase price adjustment for business acquired", and "Proceeds from sale of business/assets". | |
|
(c) |
Represents payments associated with one-time costs of the terminated merger of equals with Clariant. | |
|
Footnotes | |
|
(1) |
We use adjusted EBITDA to measure the operating performance of our business and for planning and evaluating the performance of our business segments. We provide adjusted net income because we feel it provides meaningful insight for the investment community into the performance of our business. We believe that net income (loss) is the performance measure calculated and presented in accordance with generally accepted accounting principles in the U.S. ("GAAP") that is most directly comparable to adjusted EBITDA and adjusted net income. Additional information with respect to our use of each of these financial measures follows: |
|
Adjusted EBITDA, adjusted net income (loss) and adjusted diluted income (loss) per share, as used herein, are not necessarily comparable to other similarly titled measures of other companies. | |
|
Adjusted EBITDA is computed by eliminating the following from net income (loss): (a) net income attributable to noncontrolling interest, net of tax; (b) interest; (c) income taxes; (d) depreciation and amortization; (e) acquisition and integration expenses; (f) EBITDA from discontinued operations; (g) minority interest of discontinued operations; (h) U.S. tax reform impact on minority interest; (i) loss (gain) on disposition of businesses/assets; (j) loss on early extinguishment of debt; (k) expenses associated with merger, net of tax; (l) certain legal settlements and related (income) expenses; (m) net plant incident costs; (n) amortization of pension and postretirement actuarial losses (gains) and; (p) restructuring, impairment and plant closing costs (credits). The reconciliation of adjusted EBITDA to net income (loss) is set forth in Table 4 above. | |
|
Adjusted net income (loss) and adjusted diluted income (loss) per share are computed by eliminating the after tax impact of the following items from net income (loss): (a) net income attributable to noncontrolling interest; (b) acquisition and integration expenses; (c) loss (income) from discontinued operations; (d) minority interest of discontinued operations; (e) U.S. tax reform impact on minority interest; (f) U.S. tax reform impact on tax expense; (g) loss (gain) on disposition of businesses/assets; (h) loss on early extinguishment of debt; (i) expenses associated with merger, net of tax; (j) certain legal settlements and related (income) expenses; (k) net plant incident costs; (l) amortization of pension and postretirement actuarial losses (gains); and (m) restructuring, impairment and plant closing costs (credits). The income tax impacts, if any, of each adjusting item represent a ratable allocation of the total difference between the unadjusted tax expense and the total adjusted tax expense, computed without consideration of any adjusting items using a with and without approach. We do not adjust for changes in tax valuation allowances because we do not believe it provides more meaningful information than is provided under GAAP. The reconciliation of adjusted net income (loss) to net income (loss) is set forth in Table 4 above. | |
|
(2) |
Pro forma adjusted to exclude the sale of our European differentiated surfactants business to Innospec on December 30, 2016 as if it had occurred at the beginning of the relevant period. |
|
(3) |
Management internally uses a free cash flow measure: (a) to evaluate the Company's liquidity, (b) to evaluate strategic investments, (c) to plan stock buyback and dividend levels and (d) to evaluate the Company's ability to incur and service debt. Free cash flow is not a defined term under U.S. GAAP, and it should not be inferred that the entire free cash flow amount is available for discretionary expenditures. The Company defines free cash flow as cash flow provided by operating activities less cash flow used in investing activities, excluding acquisition/disposition activities and non-recurring separation costs. Free cash flow is typically derived directly from the Company's condensed consolidated statement of cash flows; however, it may be adjusted for items that affect comparability between periods. |
|
(4) |
During the third quarter of 2017 we separated our Pigments and Additives division through an Initial Public Offering of Venator Materials PLC; Additionally, during the first quarter 2010 we closed our Australian styrenics operations. Results from these associated businesses are treated as discontinued operations. |
About Huntsman:
Huntsman Corporation is a publicly traded global manufacturer and marketer of differentiated and specialty chemicals with 2017 revenues of approximately $8 billion. Our chemical products number in the thousands and are sold worldwide to manufacturers serving a broad and diverse range of consumer and industrial end markets. We operate more than 75 manufacturing, R&D and operations facilities in approximately 30 countries and employ approximately 10,000 associates within our four distinct business divisions. For more information about Huntsman, please visit the company's website at www.huntsman.com.
Social Media:
Twitter: www.twitter.com/Huntsman_Corp
Facebook: www.facebook.com/huntsmancorp
LinkedIn: www.linkedin.com/company/huntsman
Forward-Looking Statements:
Statements in this release that are not historical are forward-looking statements. These statements are based on management's current beliefs and expectations. The forward-looking statements in this release are subject to uncertainty and changes in circumstances and involve risks and uncertainties that may affect the company's operations, markets, products, services, prices and other factors as discussed in the Huntsman companies' filings with the U.S. Securities and Exchange Commission. Significant risks and uncertainties may relate to, but are not limited to, volatile global economic conditions, cyclical and volatile product markets, disruptions in production at manufacturing facilities, reorganization or restructuring of Huntsman's operations, the ability to implement cost reductions and manufacturing optimization improvements in Huntsman businesses, and other financial, economic, competitive, environmental, political, legal, regulatory and technological factors. The company assumes no obligation to provide revisions to any forward-looking statements should circumstances change, except as otherwise required by applicable laws.
View original content with multimedia:http://www.prnewswire.com/news-releases/huntsman-announces-strong-fourth-quarter-2017-results-net-leverage-reduced-to-14x-the-board-approves-a-30-dividend-increase-and-share-repurchases-of-up-to-450-million-300603217.html
SOURCE Huntsman Corporation
Article Date
2/23/2018Huntsman Announces 30% Increase in First Quarter 2018 Common Dividend and 2018 Annual Meeting of Stockholders
Source: PR Newswire
Orignial Article: https://www.prnewswire.co...
THE WOODLANDS, Texas, Feb. 23, 2018 /PRNewswire/ -- Huntsman Corporation (NYSE: HUN) today announced that its board of directors has declared a $0.1625 per share cash dividend on its common stock. This represents a 30% increase from the previous dividend. The dividend is payable on March 30, 2018 to stockholders of record as of March 15, 2018.
Huntsman Corporation will hold its 2018 annual meeting of stockholders on Thursday, May 3, 2018 at 8:30 a.m., local time, at The Westin At The Woodlands, 2 Waterway Square Place, The Woodlands, Texas 77380. Holders of record as of the close of business on March 9, 2018 will be entitled to vote at the meeting.
About Huntsman:
Huntsman Corporation is a publicly traded global manufacturer and marketer of differentiated and specialty chemicals with 2017 revenues of approximately $8 billion. Our chemical products number in the thousands and are sold worldwide to manufacturers serving a broad and diverse range of consumer and industrial end markets. We operate more than 75 manufacturing, R&D and operations facilities in approximately 30 countries and employ approximately 10,000 associates within our four distinct business divisions. For more information about Huntsman, please visit the company's website at www.huntsman.com.
Social Media:
Twitter:www.twitter.com/Huntsman_Corp
Facebook: www.facebook.com/huntsmancorp
LinkedIn: www.linkedin.com/company/huntsman
Forward-Looking Statements:
Statements in this release that are not historical are forward-looking statements. These statements are based on management's current beliefs and expectations. The forward-looking statements in this release are subject to uncertainty and changes in circumstances and involve risks and uncertainties that may affect the company's operations, markets, products, services, prices and other factors as discussed in the Huntsman companies' filings with the U.S. Securities and Exchange Commission. Significant risks and uncertainties may relate to, but are not limited to, volatile global economic conditions, cyclical and volatile product markets, disruptions in production at manufacturing facilities, reorganization or restructuring of Huntsman's operations, the ability to implement cost reductions and manufacturing optimization improvements in Huntsman businesses, and other financial, economic, competitive, environmental, political, legal, regulatory and technological factors. The company assumes no obligation to provide revisions to any forward-looking statements should circumstances change, except as otherwise required by applicable laws.
View original content with multimedia:http://www.prnewswire.com/news-releases/huntsman-announces-30-increase-in-first-quarter-2018-common-dividend-and-2018-annual-meeting-of-stockholders-300602746.html
SOURCE Huntsman Corporation
Article Date
2/23/2018Jon M. Huntsman, Founder of Huntsman Corporation, Dies at Age 80
Source: PR Newswire
Orignial Article: https://www.prnewswire.co...
THE WOODLANDS, Texas, Feb. 2, 2018 /PRNewswire/ -- Jon M. Huntsman, founder and Chairman Emeritus of Huntsman Corporation, passed away today at his home in Salt Lake City, Utah, surrounded by family.
Widely regarded as one of his generation's great industrialists, Mr. Huntsman leaves behind an extraordinary legacy. He was a pioneer in the chemical industry, having founded the Huntsman Container Company in 1970, which revolutionized packaging and plastics, and was the initial predecessor to what is today known as Huntsman Corporation. In 1974, Mr. Huntsman created the "clamshell" container for fast-food sandwiches and went on to invent as many as 30 other popular products, including the first plastic plates and bowls.
In 1982, Mr. Huntsman formed Huntsman Chemical Corporation in Salt Lake City. While serving as its Chairman and CEO, he led the Company through constant, rapid growth with myriad impeccably timed and well-integrated acquisitions. Today Huntsman Corporation and Venator Corporation (a public subsidiary of Huntsman Corporation) together represent an $11 billion global manufacturer and marketer of chemicals. In December 2017, the Board of Directors of Huntsman Corporation named Mr. Huntsman Director and Chairman Emeritus, and elected his son, Peter R. Huntsman, Chairman, President and CEO.
In his heart, Mr. Huntsman was first a philanthropist, and his life's ambition much greater than business. His mission was to find a cure for cancer and alleviate its ravaging effects on mankind. In 1995, he contributed $100 million to establish the Huntsman Cancer Institute, a pioneer in genetic research and treatment and today one of the world's most renowned cancer institutes and hospitals, located in Salt Lake City. To date, over $2 billion has been directed to the Huntsman Cancer Institute and Hospital, a substantial portion of which came directly from Mr. Huntsman and his wife Karen.
"Some 10,000 Huntsman employees today mourn the loss of our founder," said Peter Huntsman. "Dad loved to visit our sites around the world. Many of our employees knew him personally, and he knew many of them by name. All respected him deeply. They regarded my father as their personal coach, mentor and friend. While never a chemist, he knew more about human chemistry than anyone I have ever met.
"His passion was building a great company from assets and people that others had seen less value in than he. He leaves behind a great company, but even more so, a legacy of optimism, ethical behavior and philanthropy that will serve as his greatest accomplishments."
The Huntsman Cancer Foundation, whose sole purpose is to raise funds to support the mission of the Huntsman Cancer Institute, is accepting donations in Mr. Huntsman's memory.
About Huntsman:
Huntsman Corporation is a publicly traded global manufacturer and marketer of differentiated and specialty chemicals with 2016 revenues of more than $7 billion. Our chemical products number in the thousands and are sold worldwide to manufacturers serving a broad and diverse range of consumer and industrial end markets. We operate more than 75 manufacturing, R&D and operations facilities in over 30 countries and employ approximately 10,000 associates within our four distinct business divisions. For more information about Huntsman, please visit the company's website at www.huntsman.com.
Social Media:
Twitter: www.twitter.com/Huntsman_Corp
Facebook: www.facebook.com/huntsmancorp
LinkedIn: www.linkedin.com/company/huntsman
Forward-Looking Statements:
Statements in this release that are not historical are forward-looking statements. These statements are based on management's current beliefs and expectations. The forward-looking statements in this release are subject to uncertainty and changes in circumstances and involve risks and uncertainties that may affect the company's operations, markets, products, services, prices and other factors as discussed in the Huntsman companies' filings with the U.S. Securities and Exchange Commission. Significant risks and uncertainties may relate to, but are not limited to, volatile global economic conditions, cyclical and volatile product markets, disruptions in production at manufacturing facilities, reorganization or restructuring of Huntsman's operations, the ability to implement cost reductions and manufacturing optimization improvements in Huntsman businesses, and other financial, economic, competitive, environmental, political, legal, regulatory and technological factors. The company assumes no obligation to provide revisions to any forward-looking statements should circumstances change, except as otherwise required by applicable laws.
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SOURCE Huntsman Corporation
Article Date
2/2/2018Huntsman to Host Investor Day on May 23, 2018
Source: PR Newswire
Orignial Article: https://www.prnewswire.co...
THE WOODLANDS, Texas, Feb. 2, 2018 /PRNewswire/ -- Huntsman Corporation (NYSE: HUN) announced today it will host a meeting for investors and analysts on Wednesday, May 23, 2018 from 8:00 a.m. to 12:00 p.m., local time in New York City. The agenda for the meeting will include a review of the company's business strategy and an in-depth discussion of each of the company's businesses. Presenters will include Peter Huntsman, Chairman and CEO, and other business leaders. A live webcast and presentation materials will be available the day of the event at ir.huntsman.com. A replay of the webcast will be available following the presentations.
Registration information will be forthcoming.
About Huntsman:
Huntsman Corporation is a publicly traded global manufacturer and marketer of differentiated and specialty chemicals with 2016 revenues of approximately $7 billion. Our chemical products number in the thousands and are sold worldwide to manufacturers serving a broad and diverse range of consumer and industrial end markets. We operate more than 75 manufacturing, R&D and operations facilities in over 30 countries and employ approximately 10,000 associates within our four distinct business divisions. For more information about Huntsman, please visit the company's website at www.huntsman.com.
Social Media:
Twitter: www.twitter.com/Huntsman_Corp
Facebook: www.facebook.com/huntsmancorp
LinkedIn: www.linkedin.com/company/huntsman
Forward-Looking Statements:
Statements in this release that are not historical are forward-looking statements. These statements are based on management's current beliefs and expectations. The forward-looking statements in this release are subject to uncertainty and changes in circumstances and involve risks and uncertainties that may affect the company's operations, markets, products, services, prices and other factors as discussed in the Huntsman companies' filings with the U.S. Securities and Exchange Commission. Significant risks and uncertainties may relate to, but are not limited to, volatile global economic conditions, cyclical and volatile product markets, disruptions in production at manufacturing facilities, reorganization or restructuring of Huntsman's operations, the ability to implement cost reductions and manufacturing optimization improvements in Huntsman businesses, and other financial, economic, competitive, environmental, political, legal, regulatory and technological factors. The company assumes no obligation to provide revisions to any forward-looking statements should circumstances change, except as otherwise required by applicable laws.
View original content with multimedia:http://www.prnewswire.com/news-releases/huntsman-to-host-investor-day-on-may-23-2018-300592649.html
SOURCE Huntsman Corporation
Article Date
2/2/2018Peter R. Huntsman Elected Chairman of the Board; Founder and Former Executive Chairman, Jon M. Huntsman, to Serve as Member of the Board and Chairman Emeritus
Source: PR Newswire
Orignial Article: https://www.prnewswire.co...
THE WOODLANDS, Texas, Dec. 19, 2017 /PRNewswire/ -- Huntsman Corporation (NYSE: HUN) announced today that Peter Huntsman, President and Chief Executive Officer, has been elected Chairman of the Board of Directors of the Company, an additional role he will assume as of January 1, 2018. The Company's founder, Jon M. Huntsman, will be stepping down as Executive Chairman on December 31, 2017 and the role of Executive Chairman will be eliminated. After serving as Executive Chairman of the company he founded 48 years ago, Mr. Huntsman will continue to serve on the Board of Directors as a Director and Chairman Emeritus.
New Chairman of the Board and CEO Peter Huntsman commented:
"I am honored to be taking on this responsibility at a time when the Company has never been stronger and had more opportunities before it. This will be a smooth transition as our founder, my father, will continue in a valuable capacity as a Board member, maintaining vital relations with customers, suppliers, and policy makers as well as sharing his total 56 years of industry experience."
Jon Huntsman, Sr. further commented:
"It's a high honor to turn the chairmanship role over to Peter Huntsman, who I consider to be one of the world's outstanding CEO's. Huntsman Corporation will continue to experience its sound growth and strong financial controls under Peter's experienced oversight. It has been both a great challenge and a special privilege to be chairman for almost half a century."
About Huntsman:
Huntsman Corporation is a publicly traded global manufacturer and marketer of differentiated and specialty chemicals with 2016 revenues of approximately $7 billion. Our chemical products number in the thousands and are sold worldwide to manufacturers serving a broad and diverse range of consumer and industrial end markets. We operate more than 75 manufacturing, R&D and operations facilities in over 30 countries and employ approximately 10,000 associates within our four distinct business divisions. For more information about Huntsman, please visit the company's website at www.huntsman.com.
Social Media:
Twitter: www.twitter.com/Huntsman_Corp
Facebook: www.facebook.com/huntsmancorp
LinkedIn: www.linkedin.com/company/huntsman
Forward-Looking Statements:
Statements in this release that are not historical are forward-looking statements. These statements are based on management's current beliefs and expectations. The forward-looking statements in this release are subject to uncertainty and changes in circumstances and involve risks and uncertainties that may affect the company's operations, markets, products, services, prices and other factors as discussed in the Huntsman companies' filings with the U.S. Securities and Exchange Commission. Significant risks and uncertainties may relate to, but are not limited to, volatile global economic conditions, cyclical and volatile product markets, disruptions in production at manufacturing facilities, reorganization or restructuring of Huntsman's operations, the ability to implement cost reductions and manufacturing optimization improvements in Huntsman businesses, and other financial, economic, competitive, environmental, political, legal, regulatory and technological factors. The company assumes no obligation to provide revisions to any forward-looking statements should circumstances change, except as otherwise required by applicable laws.
View original content with multimedia:http://www.prnewswire.com/news-releases/peter-r-huntsman-elected-chairman-of-the-board-founder-and-former-executive-chairman-jon-m-huntsman-to-serve-as-member-of-the-board-and-chairman-emeritus-300573512.html
SOURCE Huntsman Corporation
Article Date
12/19/2017Huntsman Announces Full Repayment of its Senior Term Loan Facility from Proceeds of Venator Secondary Public Offering
Source: PR Newswire
Orignial Article: https://www.prnewswire.co...
THE WOODLANDS, Texas, Dec. 4, 2017 /PRNewswire/ -- Huntsman Corporation (NYSE: HUN) announced today that it successfully completed its secondary public offering of Venator (NYSE: VNTR) receiving net proceeds of ~$471 million. Together with cash on hand, Huntsman will repay in full the $511 million remaining on its Term Loan B due 2023. Huntsman will no longer have any senior secured term loans remaining outstanding under its Senior Credit Facilities.
With this debt repayment, Huntsman will achieve investment grade type metrics with its trailing twelve month pro-forma(1) net leverage ratio for the 3rd quarter 2017 standing at about 1.8 times, down from the 2.2 times reported on its latest earnings call. Huntsman's annual cash interest expense is expected to decrease by about $20 million, incremental to the already reported ~$70 million of annualized interest savings achieved this year as a result of prior debt repayments. The precise impact of taxes is still to be determined, but it is currently estimated to be approximately $75 million, which will not be paid until after the first quarter of 2018.
Huntsman now holds a ~55% interest in Venator, which would reduce to 52% in the event the underwriters exercise their option to sell up to an additional ~3.3 million shares within 30 days. Subject to existing lock-up agreements, Huntsman intends to continue to monetize its remaining shares of Venator in an orderly fashion.
Peter Huntsman, President and CEO commented:
"This year alone, from the monetization of Venator together with free cash flow, we will have repaid ~$2.1 billion of debt, and in excess of $2.6 billion since the beginning of 2016. We have transformed our balance sheet to investment grade type metrics with pro forma net leverage as of September 30th 2017 of ~1.8 times. We are focused on generating $400 - $600 million of free cash flow annually and have yet to monetize the remaining ~55% of our interest in Venator. Heading into 2018, the unprecedented strength of our balance sheet provides us with more flexibility than we have ever had to further grow our differentiated and specialty businesses and increase value to shareholders."
About Huntsman:
Huntsman Corporation is a publicly traded global manufacturer and marketer of differentiated and specialty chemicals with 2016 revenues of more than $7 billion. Our chemical products number in the thousands and are sold worldwide to manufacturers serving a broad and diverse range of consumer and industrial end markets. We operate more than 75 manufacturing, R&D and operations facilities in over 30 countries and employ approximately 10,000 associates within our four distinct business divisions.
Forward-Looking Statements:
Statements in this release that are not historical are forward-looking statements. These statements are based on management's current beliefs and expectations. The forward-looking statements in this release are subject to uncertainty and changes in circumstances and involve risks and uncertainties that may affect the company's operations, markets, products, services, prices and other factors as discussed in the Huntsman companies' filings with the U.S. Securities and Exchange Commission. Significant risks and uncertainties may relate to, but are not limited to, volatile global economic conditions, cyclical and volatile product markets, disruptions in production at manufacturing facilities, reorganization or restructuring of Huntsman's operations, the ability to implement cost reductions and manufacturing optimization improvements in Huntsman businesses, and other financial, economic, competitive, environmental, political, legal, regulatory and technological factors. The company assumes no obligation to provide revisions to any forward-looking statements should circumstances change, except as otherwise required by applicable laws.
(1) Pro forma excludes Venator trailing twelve months adjusted EBITDA and reflects recent receipt of net proceeds. Please refer to our most recent presentation on ir.huntsman.com for the non-GAAP reconciliation.
View original content with multimedia:http://www.prnewswire.com/news-releases/huntsman-announces-full-repayment-of-its-senior-term-loan-facility-from-proceeds-of-venator-secondary-public-offering-300566161.html
SOURCE Huntsman Corporation
Article Date
12/4/201711/27/2017 - Huntsman Showcased Broad Portfolio at ChinaCoat 2017
Huntsman Showcased Broad Portfolio at ChinaCoat 2017
Source: PR Newswire
Orignial Article: https://www.prnewswire.co...
SHANGHAI, Nov. 27, 2017 /PRNewswire/ -- Huntsman (NYSE: HUN), a global manufacturer and marketer of differentiated chemicals, attended ChinaCoat 2017 held in Shanghai from November 15 to November 17. Coatings experts from two of Huntsman's four business divisions -- Advanced Materials and Performance Products, attended the exhibition, showcasing the company's comprehensive collection of chemistries combining Huntsman's advanced R&D resources and technology.
This year, Huntsman impressed visitors with a diversity of products that deliver superior performance in terms of both functionality and sustainability. Huntsman Advanced Materials division showcased ARA® Cool -- low-temperature curing agents, as well as ARALDITE® and ARADUR® -- waterborne epoxy coating systems. Other chemistries under spotlight included Huntsman Performance Products division's world extensive range of polyetheramines -- JEFFAMINE® series polyetheramines.
With water-based and low-VOC (volatile organic compound) emissions coatings increasingly becoming industry-wide trends, the market witnesses rising competition through a growing number of eco-friendly products. As one of the well-acknowledged industry leaders, Huntsman not only offers solutions with high productivity, but also strikes the better balance of high performance and reduced environmental impact.
At the event, Huntsman coatings experts hosted two in-depth technical presentations to provide insights on Huntsman high performance chemistries for the market. The first presentation, took place on the morning of November 16 where Yueping Dai from Huntsman Advanced Materials division, introduced the features of ARA® Cool to the visitors. Yueping talked about the product's breakthrough in improving curing speed between 0 degree centigrade and 10 degree centigrade. "This new range of products solves three key challenges that the coatings industry is facing: faster curing at low temperature, reduced VOC emission, and compliance with the post-2018 EU REACH regulations," said Yueping.
ARA® Cool speeds up the curing process -- saving time and cost -- without compromising on performance. Each of the three curing agents under this series has a specific benefit that satisfies the diversified needs of end-users. ARA® Cool 1047 W 80 is surface tolerant; ARA® Cool 1034 XW 90 enables very long pot-life; while ARA® Cool 3077 is a multi-purpose low-temperature curing hardener with zero-VOC.
In the afternoon of November 16, Dr. Jiang Wanchao from Huntsman Performance Products division presented the detailed features and benefits of Huntsman's JEFFAMINE® polyetheramine applications for epoxy emulsification. Speaking to visitors at the tradeshow, Dr Jiang highlighted the world-leading innovation and process technologies that help coating formulators optimize the manufacture and performance of water-based coatings. The JEFFAMINE® portfolio has a broad range of molecular weights, amine functionality, repeating unit type and distribution, and enabling formulators to design a multitude of new compounds or mixtures.
Two products in the JEFFAMINE® portfolio that were highlighted included JEFFAMINE® M series, which introduces hydrophilicity to epoxy backbone together with a reactive amine group. It provides a new, simpler emulsified method with excellent emulsion stability in different storage conditions that meets VOC compliance. The other product, JEFFAMINE® RFD-270, is a novel amine that offers a unique formulating option for coatings and adhesives. When used for epoxy resin curing, it has faster mechanical properties development than other PEA curatives.
ChinaCoat, organized since 1996, is highly regarded by the industry as a premier global event. Huntsman leverages this platform to exchange knowledge and insights with industry professionals from all over the world. In addition to announcing its latest and most advanced offerings, Huntsman had in-depth discussion with professional audiences at this year's ChinaCoat event.
ARA®Cool, ARALDITE®, ARADUR®, and JEFFAMINE® are registered trademarks of Huntsman Corporation or an affiliate thereof in one or more, but not all, countries.
About Huntsman:
Huntsman Corporation is a publicly traded global manufacturer and marketer of differentiated and specialty chemicals with 2016 revenues of approximately $10 billion. Our chemical products number in the thousands and are sold worldwide to manufacturers serving a broad and diverse range of consumer and industrial end markets. We operate more than 75 manufacturing, R&D and operations facilities in over 30 countries and employ approximately 10,000 associates within our four distinct business divisions. For more information about Huntsman, please visit the company's website at www.huntsman.com.
Social Media:
Twitter: www.twitter.com/Huntsman_Corp
Facebook: www.facebook.com/huntsmancorp
LinkedIn: www.linkedin.com/company/huntsman
Forward-Looking Statements:
Statements in this release that are not historical are forward-looking statements. These statements are based on management's current beliefs and expectations. The forward-looking statements in this release are subject to uncertainty and changes in circumstances and involve risks and uncertainties that may affect the company's operations, markets, products, services, prices and other factors as discussed in the Huntsman companies' filings with the U.S. Securities and Exchange Commission. Significant risks and uncertainties may relate to, but are not limited to, volatile global economic conditions, cyclical and volatile product markets, disruptions in production at manufacturing facilities, reorganization or restructuring of Huntsman's operations, the ability to implement cost reductions and manufacturing optimization improvements in Huntsman businesses, to consummate or achieve the expected benefits of the proposed transaction with Clariant and to realize anticipated cost savings, and other financial, economic, competitive, environmental, political, legal, regulatory and technological factors. The company assumes no obligation to provide revisions to any forward-looking statements should circumstances change, except as otherwise required by applicable laws.
View original content:http://www.prnewswire.com/news-releases/huntsman-showcased-broad-portfolio-at-chinacoat-2017-300561768.html
SOURCE Huntsman
Article Date
11/27/2017Huntsman Announces Fourth Quarter 2017 Common Dividend
Source: PR Newswire
Orignial Article: https://www.prnewswire.co...
THE WOODLANDS, Texas, Nov. 6, 2017 /PRNewswire/ -- Huntsman Corporation (NYSE: HUN) today announced that its board of directors has declared a $0.125 per share cash dividend on its common stock. The dividend is payable on December 29, 2017, to stockholders of record as of December 15, 2017.
About Huntsman:
Huntsman Corporation is a publicly traded global manufacturer and marketer of differentiated and specialty chemicals with 2016 revenues of more than $7 billion. Our chemical products number in the thousands and are sold worldwide to manufacturers serving a broad and diverse range of consumer and industrial end markets. We operate more than 75 manufacturing, R&D and operations facilities in over 30 countries and employ approximately 10,000 associates within our four distinct business divisions. For more information about Huntsman, please visit the company's website at www.huntsman.com.
Social Media:
Twitter: www.twitter.com/Huntsman_Corp
Facebook: www.facebook.com/huntsmancorp
LinkedIn: www.linkedin.com/company/huntsman
Forward-Looking Statements:
Statements in this release that are not historical are forward-looking statements. These statements are based on management's current beliefs and expectations. The forward-looking statements in this release are subject to uncertainty and changes in circumstances and involve risks and uncertainties that may affect the company's operations, markets, products, services, prices and other factors as discussed in the Huntsman companies' filings with the U.S. Securities and Exchange Commission. Significant risks and uncertainties may relate to, but are not limited to, volatile global economic conditions, cyclical and volatile product markets, disruptions in production at manufacturing facilities, reorganization or restructuring of Huntsman's operations, the ability to implement cost reductions and manufacturing optimization improvements in Huntsman businesses, and other financial, economic, competitive, environmental, political, legal, regulatory and technological factors. The company assumes no obligation to provide revisions to any forward-looking statements should circumstances change, except as otherwise required by applicable laws.
View original content with multimedia:http://www.prnewswire.com/news-releases/huntsman-announces-fourth-quarter-2017-common-dividend-300550381.html
SOURCE Huntsman Corporation
Article Date
11/6/201711/6/2017 - Huntsman Publishes 2016 Sustainability Report
Huntsman Publishes 2016 Sustainability Report
Source: PR Newswire
THE WOODLANDS, Texas, Nov. 6, 2017 /PRNewswire/ -- Huntsman Corporation (NYSE: HUN) today published its latest corporate sustainability report, titled "Connecting Our World: Sustainability in Transportation," on its web site at www.huntsman.com/sustainability.
"Connecting Our World" discusses how Huntsman applies its ingenuity in the transportation industry to create innovative products that help construct resilient infrastructure, encourage global commerce and empower personal mobility to bring our world closer together.
"Transportation connects our world in ways that help develop communities and enable a modern society," said Corporate Sustainability Officer Ron Gerrard. "Huntsman manufactures chemical solutions that help make transportation more sustainable, thereby benefitting our economies, enhancing the environment and creating easy access to education, work, markets and social contacts."
The report highlights a variety of Huntsman's transportation-related initiatives that help address such global megatrends as population growth, increasing wealth in emerging economies, finite hydrocarbon resources, reducing greenhouse gas emissions and potential impacts on climate change. The 2016 report also includes Huntsman's annual Communication on Progress to the United Nations Global Compact.
This is Huntsman's seventh sustainability report since launching its corporate sustainability initiative in 2010.
About Huntsman:
Huntsman Corporation is a publicly traded global manufacturer and marketer of differentiated and specialty chemicals with 2016 revenues of more than $7 billion. Our chemical products number in the thousands and are sold worldwide to manufacturers serving a broad and diverse range of consumer and industrial end markets. We operate more than 75 manufacturing, R&D and operations facilities in over 30 countries and employ approximately 10,000 associates within our four distinct business divisions. For more information about Huntsman, please visit the company's website at www.huntsman.com.
Social Media:
Twitter: www.twitter.com/Huntsman_Corp
Facebook: www.facebook.com/huntsmancorp
LinkedIn: www.linkedin.com/company/huntsman
Forward-Looking Statements:
Statements in this release that are not historical are forward-looking statements. These statements are based on management's current beliefs and expectations. The forward-looking statements in this release are subject to uncertainty and changes in circumstances and involve risks and uncertainties that may affect the company's operations, markets, products, services, prices and other factors as discussed in the Huntsman companies' filings with the U.S. Securities and Exchange Commission. Significant risks and uncertainties may relate to, but are not limited to, volatile global economic conditions, cyclical and volatile product markets, disruptions in production at manufacturing facilities, reorganization or restructuring of Huntsman's operations, the ability to implement cost reductions and manufacturing optimization improvements in Huntsman businesses, and other financial, economic, competitive, environmental, political, legal, regulatory and technological factors. The company assumes no obligation to provide revisions to any forward-looking statements should circumstances change, except as otherwise required by applicable laws.
View original content with multimedia:http://www.prnewswire.com/news-releases/huntsman-publishes-2016-sustainability-report-300549512.html
SOURCE Huntsman Corporation
Article Date
11/6/201710/27/2017 - Huntsman Announces Strong Third Quarter 2017 Results; Balance Sheet Transformed with Significant Debt Reduction
Huntsman Announces Strong Third Quarter 2017 Results; Balance Sheet Transformed with Significant Debt Reduction
Source: PR Newswire
Orignial Article: https://www.prnewswire.co...
THE WOODLANDS, Texas, Oct. 27, 2017 /PRNewswire/ --
Third Quarter 2017 Highlights
|
Three months ended |
Nine months ended | |||||||||
|
September 30, |
June 30, |
September 30, | ||||||||
|
In millions, except per share amounts |
2017 |
2016 |
2017 |
2017 |
2016 | |||||
|
Revenues |
$2,169 |
$1,831 |
$ 2,054 |
$6,155 |
$5,614 | |||||
|
Net income |
$ 179 |
$ 64 |
$ 183 |
$ 454 |
$ 220 | |||||
|
Adjusted net income(1) |
$ 164 |
$ 74 |
$ 144 |
$ 418 |
$ 302 | |||||
|
Diluted income per share |
$ 0.60 |
$ 0.23 |
$ 0.69 |
$ 1.60 |
$ 0.83 | |||||
|
Adjusted diluted income per share(1) |
$ 0.67 |
$ 0.31 |
$ 0.59 |
$ 1.72 |
$ 1.26 | |||||
|
Adjusted EBITDA(1) |
$ 340 |
$ 234 |
$ 299 |
$ 899 |
$ 787 | |||||
|
Pro forma adjusted EBITDA(2) |
$ 340 |
$ 227 |
$ 299 |
$ 899 |
$ 765 | |||||
|
Net cash provided by operating activities |
$ 261 |
$ 333 |
$ 207 |
$ 538 |
$ 736 | |||||
|
Free cash flow(3) |
$ 227 |
$ 251 |
$ 155 |
$ 404 |
$ 523 | |||||
|
See end of press release for footnote explanations |
||||||||||
Huntsman Corporation (NYSE: HUN) today reported third quarter 2017 results with revenues of $2,169 million, net income of $179 million and adjusted EBITDA of $340 million.
Peter R. Huntsman, our President and CEO, commented:
"While I am disappointed that the merger of equals agreement with Clariant has been terminated, Huntsman's future has never been brighter as our businesses continue to improve across the board, our balance sheet is as strong as it has ever been and will get even stronger with proceeds from upcoming Venator secondary sales. We look forward to achieving investment grade metrics in the near future. Huntsman remains focused on growing our downstream differentiated and specialty businesses, expanding our margins, and generating a consistently strong free cash flow.
"Notwithstanding a $50 million impact from Hurricane Harvey on our third quarter EBITDA, our business was up $113 million over last year. Our business is operating at a 16% EBITDA margin to sales. Excluding the impact from Harvey, each one of our businesses performed well, growing adjusted EBITDA versus the prior year, as our underlying fundamentals remain positive across our core markets. I expect each of our businesses to show year over year growth in the fourth quarter as well. In addition to our strong operating performance in the third quarter, we successfully completed the IPO of our Pigments and Additives segment, now called Venator, and the $1.2 billion in the initial proceeds were used to reduce our leverage. We also paid down an additional $100 million in debt from free cash flow earlier this week. We are delivering on our commitments to our shareholders, as to date we have generated over $1 billion in free cash flow and reduced our net-debt by over $2 billion since 2016, while at the same time investing in our differentiated and specialty businesses."
Segment Analysis for 3Q17 Compared to 3Q16
Polyurethanes
The increase in revenues in our Polyurethanes segment for the three months ended September 30, 2017 compared to the same period of 2016 was due to higher average selling prices and higher sales volumes. MDI average selling prices increased in response to continued strong market conditions and higher raw material costs. MTBE average selling prices increased primarily as a result of higher pricing for high octane gasoline. MDI sales volumes increased due to increased demand across most major markets. MTBE sales volumes increased due to the timing of shipments in the 2016 period, partially offset by the impact of hurricane related production outages during the third quarter of 2017. The increase in segment adjusted EBITDA was primarily due to higher MDI margins, partially offset by lower MTBE earnings and the $15 million estimated impact of hurricane related production outages during the third quarter of 2017.
Performance Products
The decrease in revenues in our Performance Products segment for the three months ended September 30, 2017 compared to the same period of 2016 was due to lower sales volumes, partially offset by higher average selling prices. Sales volumes decreased primarily due to the sale of the European surfactants business to Innospec Inc. on December 30, 2016 as well as the impact of hurricane related production outages in the third quarter of 2017, partially offset by higher sales volumes in our maleic anhydride and amines businesses. Average selling prices increased primarily in response to higher raw material costs and a favorable product mix effect. The decrease in segment adjusted EBITDA was primarily due to the estimated $35 million impact of hurricane related production outages in the third quarter of 2017 and the sale of the European surfactants business at the end of 2016. Pro-forma for the sale of our European surfactants business, adjusted EBITDA was flat year-over-year.
Advanced Materials
The increase in revenues in our Advanced Materials segment for the three months ended September 30, 2017 compared to the same period of 2016 was due to higher sales volumes and higher average selling prices. Sales volumes increased primarily due to growth in our specialty electronics and electrical and coatings components businesses, partially offset by our withdrawal from certain low margin business. Average selling prices increased in response to higher raw material costs and favorable product mix. The increase in segment adjusted EBITDA was primarily due to higher sales volumes and higher average selling prices, partially offset by higher raw material costs.
Textile Effects
The increase in revenues in our Textile Effects segment for the three months ended September 30, 2017 compared to the same period of 2016 was due to higher sales volumes, partially offset by lower average selling prices. Sales volumes increased in both textile chemicals and dyes, particularly in our Asia region. Average selling prices decreased primarily due to competitive market conditions. The increase in segment adjusted EBITDA was primarily due to higher sales volumes and lower fixed costs, partially offset by lower margins.
Corporate, LIFO and other
For the three months ended September 30, 2017, segment adjusted EBITDA from Corporate and other for Huntsman Corporation increased by $3 million to a loss of $42 million from a loss of $45 million for the same period in 2016.
Held for Sale and Discontinued Operations
Our Pigments and Additives division, known as Venator, is now classified as Held for Sale on our balance sheet and treated as discontinued operations on our income statement. We will be issuing a form 8K with certain restated historical financial data.
Liquidity, Capital Resources and Outstanding Debt
During the quarter we generated adjusted free cash flow of $227 million compared to $251 million a year ago. As of September 30, 2017, we had $1,211 million of combined cash and unused borrowing capacity compared to $1,208 million as of December 31, 2016. Year to date, including the $1.2 billion debt repayment made with the proceeds of the Venator separation and the $100 million early repayment of debt made on our term loan this week, we have repaid approximately $1.6 billion of debt.
During the nine months ended September 30, 2017, we spent $159 million on capital expenditures compared to $214 million in 2016. We expect to spend approximately $290 million on capital expenditures in 2017.
Income Taxes
During the three months ended September 30, 2017, we recorded income tax expense of $35 million compared to $6 million during the same period in 2016. In the third quarter 2017, our adjusted effective tax rate was 24%. We expect our fourth quarter adjusted effective tax rate to be similar to the third quarter. Our 2018 adjusted effective tax rate will be approximately 25% - 28%.
Earnings Conference Call Information
We will hold a conference call to discuss our third quarter 2017 financial results on Friday, October 27, 2017 at 10:00 a.m. ET.
|
Call-in numbers for the conference call: |
|
|
U.S. participants |
(888) 680 - 0890 |
|
International participants |
(617) 213 - 4857 |
|
Passcode |
547 974 21# |
In order to facilitate the registration process, you may use the following link to pre-register for the conference call. Callers who pre-register will be given a unique PIN to gain immediate access to the call and bypass the live operator. You may pre-register at any time, including up to and after the call start time. To pre-register, please go to:
https://www.theconferencingservice.com/prereg/key.process?key=PRRFWWDBY.
Webcast Information
The conference call will be available via webcast and can be accessed from the company's website at ir.huntsman.com.
Replay Information
The conference call will be available for replay beginning October 27, 2017 and ending November 3, 2017.
|
Call-in numbers for the replay: |
|
|
U.S. participants |
(888) 286 - 8010 |
|
International participants |
(617) 801 - 6888 |
|
Replay code |
29385180 |
Upcoming Conferences
During the fourth quarter a member of management is expected to present at the Citi Basic Materials Conference on November 28, 2017 and the Bank of America Merrill Lynch Leveraged Finance Conference on November 30, 2017. A webcast of the presentation, if applicable, along with accompanying materials will be available at ir.huntsman.com.
|
Table 1 – Results of Operations | ||||||||
|
Three months ended |
Nine months ended | |||||||
|
September 30, |
September 30, | |||||||
|
In millions, except per share amounts |
2017 |
2016 |
2017 |
2016 | ||||
|
Revenues |
$ 2,169 |
$ 1,831 |
$ 6,155 |
$ 5,614 | ||||
|
Cost of goods sold |
1,695 |
1,475 |
4,852 |
4,444 | ||||
|
Gross profit |
474 |
356 |
1,303 |
1,170 | ||||
|
Operating expenses |
238 |
217 |
677 |
664 | ||||
|
Restructuring, impairment and plant closing costs |
1 |
38 |
13 |
56 | ||||
|
Expenses associated with the merger |
12 |
- |
18 |
- | ||||
|
Operating income |
223 |
101 |
595 |
450 | ||||
|
Interest expense |
(39) |
(52) |
(134) |
(153) | ||||
|
Equity in income of investment in unconsolidated affiliates |
1 |
1 |
4 |
4 | ||||
|
Loss on early extinguishment of debt |
(35) |
(1) |
(36) |
(3) | ||||
|
Other income (expense) |
1 |
(3) |
2 |
(1) | ||||
|
Income before income taxes |
151 |
46 |
431 |
297 | ||||
|
Income tax expense |
(35) |
(6) |
(78) |
(65) | ||||
|
Income from continuing operations |
116 |
40 |
353 |
232 | ||||
|
Income (loss) from discontinued operations, net of tax(4) |
63 |
24 |
101 |
(12) | ||||
|
Net income |
179 |
64 |
454 |
220 | ||||
|
Net income attributable to noncontrolling interests, net of tax |
(32) |
(9) |
(64) |
(22) | ||||
|
Net income attributable to Huntsman Corporation |
$ 147 |
$ 55 |
$ 390 |
$ 198 | ||||
|
Adjusted EBITDA(1) |
$ 340 |
$ 234 |
$ 899 |
$ 787 | ||||
|
Adjusted net income(1) |
$ 164 |
$ 74 |
$ 418 |
$ 302 | ||||
|
Basic income per share |
$ 0.62 |
$ 0.23 |
$ 1.64 |
$ 0.84 | ||||
|
Diluted income per share |
$ 0.60 |
$ 0.23 |
$ 1.60 |
$ 0.83 | ||||
|
Adjusted diluted income per share(1) |
$ 0.67 |
$ 0.31 |
$ 1.72 |
$ 1.26 | ||||
|
Common share information: |
||||||||
|
Basic shares outstanding |
239 |
236 |
238 |
236 | ||||
|
Diluted shares |
244 |
240 |
244 |
239 | ||||
|
Diluted shares for adjusted diluted income per share |
244 |
240 |
244 |
239 | ||||
|
See end of press release for footnote explanations |
|
Table 2 – Results of Operations by Segment | ||||||||||||
|
Three months ended |
Nine months ended |
|||||||||||
|
September 30, |
Better / |
September 30, |
Better / | |||||||||
|
In millions |
2017 |
2016 |
(Worse) |
2017 |
2016 |
(Worse) | ||||||
|
Segment Revenues: |
||||||||||||
|
Polyurethanes |
$ 1,197 |
$ 891 |
34% |
$ 3,172 |
$ 2,703 |
17% | ||||||
|
Performance Products |
501 |
509 |
(2)% |
1,595 |
1,611 |
(1)% | ||||||
|
Performance Products, pro forma(2) |
501 |
451 |
11% |
1,595 |
1,433 |
11% | ||||||
|
Advanced Materials |
263 |
247 |
6% |
782 |
774 |
1% | ||||||
|
Textile Effects |
193 |
184 |
5% |
586 |
567 |
3% | ||||||
|
Corporate and eliminations |
15 |
- |
n/m |
20 |
(41) |
n/m | ||||||
|
Total |
$ 2,169 |
$ 1,831 |
18% |
$ 6,155 |
$ 5,614 |
10% | ||||||
|
Total, pro forma(2) |
$ 2,169 |
$ 1,773 |
22% |
$ 6,155 |
$ 5,436 |
13% | ||||||
|
Segment Adjusted EBITDA(1): |
||||||||||||
|
Polyurethanes |
$ 245 |
$ 137 |
79% |
$ 556 |
$ 439 |
27% | ||||||
|
Performance Products |
63 |
70 |
(10)% |
249 |
248 |
0% | ||||||
|
Performance Products, pro forma(2) |
63 |
63 |
0% |
249 |
226 |
10% | ||||||
|
Advanced Materials |
56 |
55 |
2% |
166 |
173 |
(4)% | ||||||
|
Textile Effects |
19 |
17 |
12% |
64 |
59 |
8% | ||||||
|
Corporate, LIFO and other |
(43) |
(45) |
4% |
(136) |
(132) |
(3)% | ||||||
|
Total |
$ 340 |
$ 234 |
45% |
$ 899 |
$ 787 |
14% | ||||||
|
Total, pro forma(2) |
$ 340 |
$ 227 |
50% |
$ 899 |
$ 765 |
18% | ||||||
|
n/m = not meaningful |
|
See end of press release for footnote explanations |
|
Table 3 – Factors Impacting Sales Revenue | |||||||||||
|
Three months ended |
|||||||||||
|
September 30, 2017 vs. 2016 |
|||||||||||
|
Average Selling Price(a) |
|||||||||||
|
Local |
Exchange |
Sales Mix |
Sales |
||||||||
|
Currency |
Rate |
& Other |
Volume(b) |
Total |
|||||||
|
Polyurethanes |
20% |
2% |
0% |
12% |
34% |
||||||
|
Polyurethanes, adj |
21% |
2% |
1% |
10% |
34% |
(d) | |||||
|
Performance Products |
9% |
1% |
4% |
(16)% |
(2)% |
||||||
|
Performance Products, adj |
9% |
1% |
(2)% |
18% |
26% |
(c)(d) | |||||
|
Advanced Materials |
1% |
2% |
0% |
3% |
6% |
||||||
|
Textile Effects |
(1)% |
1% |
(2)% |
7% |
5% |
||||||
|
Total Company |
12% |
2% |
3% |
1% |
18% |
||||||
|
Total Company, adj |
11% |
2% |
1% |
12% |
26% |
(c)(d) | |||||
|
Nine months ended |
|||||||||||
|
September 30, 2017 vs. 2016 |
|||||||||||
|
Average Selling Price(a) |
|||||||||||
|
Local |
Exchange |
Sales Mix |
Sales |
||||||||
|
Currency |
Rate |
& Other |
Volume(b) |
Total |
|||||||
|
Polyurethanes |
15% |
0% |
5% |
(3)% |
17% |
||||||
|
Polyurethanes, adj |
15% |
0% |
4% |
1% |
20% |
(d)(e) | |||||
|
Performance Products |
6% |
0% |
2% |
(9)% |
(1)% |
||||||
|
Performance Products, adj |
6% |
0% |
(2)% |
12% |
16% |
(c)(d) | |||||
|
Advanced Materials |
1% |
0% |
0% |
0% |
1% |
||||||
|
Textile Effects |
(2)% |
0% |
(3)% |
8% |
3% |
||||||
|
Total Company |
9% |
0% |
6% |
(5)% |
10% |
||||||
|
Total Company, adj |
8% |
0% |
3% |
5% |
16% |
(c)(d)(e) | |||||
|
(a) Excludes sales from tolling arrangements, by-products and raw materials. |
|
(b) Excludes sales from by-products and raw materials. |
|
(c) Pro forma adjusted to exclude the sale of the European differentiated surfactants on December 30, 2016. |
|
(d) Pro forma adjusted to exclude the impact from Hurricane Harvey in 3Q17 and Other weather realted outages in 2H16. |
|
(e) Pro forma adjusted to exclude the impact from maintenance outages in 2Q17. |
|
Table 4 – Reconciliation of U.S. GAAP to Non-GAAP Measures | ||||||||||||||||
|
Income Tax |
Diluted Income | |||||||||||||||
|
EBITDA |
Expense |
Net Income |
Per Share | |||||||||||||
|
Three months ended |
Three months ended |
Three months ended |
Three months ended | |||||||||||||
|
September 30, |
September 30, |
September 30, |
September 30, | |||||||||||||
|
In millions, except per share amounts |
2017 |
2016 |
2017 |
2016 |
2017 |
2016 |
2017 |
2016 | ||||||||
|
Net income |
$ 179 |
$ 64 |
$ 179 |
$ 64 |
$ 0.73 |
$ 0.27 | ||||||||||
|
Net income attributable to noncontrolling interests |
(32) |
(9) |
(32) |
(9) |
(0.13) |
(0.04) | ||||||||||
|
Net income attributable to Huntsman Corporation |
147 |
55 |
147 |
55 |
0.60 |
0.23 | ||||||||||
|
Interest expense from continuing operations |
39 |
52 |
||||||||||||||
|
Interest expense from discontinued operations(4) |
8 |
- |
||||||||||||||
|
Income tax expense from continuing operations |
35 |
6 |
$ (35) |
$ (6) |
||||||||||||
|
Income tax expense (benefit) from discontinued operations(4) |
17 |
(7) |
||||||||||||||
|
Depreciation and amortization from continuing operations |
80 |
83 |
||||||||||||||
|
Depreciation and amortization from discontinued operations(4) |
9 |
30 |
||||||||||||||
|
Acquisition and integration expenses |
10 |
6 |
(3) |
(2) |
7 |
4 |
0.03 |
0.02 | ||||||||
|
EBITDA / Income from discontinued operations, net of tax(4) |
(97) |
(47) |
N/A |
N/A |
(63) |
(24) |
(0.26) |
(0.10) | ||||||||
|
Minority interest of discontinued operations(1)(4) |
12 |
3 |
N/A |
N/A |
12 |
3 |
0.05 |
0.01 | ||||||||
|
Loss on early extinguishment of debt |
35 |
1 |
(12) |
- |
23 |
1 |
0.09 |
- | ||||||||
|
Expenses associated with merger, net of tax |
12 |
- |
(1) |
- |
11 |
- |
0.05 |
- | ||||||||
|
Net plant incident costs |
13 |
- |
(4) |
- |
9 |
- |
0.04 |
- | ||||||||
|
Amortization of pension and postretirement actuarial losses |
19 |
14 |
(3) |
(5) |
16 |
9 |
0.07 |
0.04 | ||||||||
|
Restructuring, impairment and plant closing and transition costs |
1 |
38 |
1 |
(12) |
2 |
26 |
0.01 |
0.11 | ||||||||
|
Adjusted(1) |
$ 340 |
$ 234 |
$ (57) |
$ (25) |
$ 164 |
$ 74 |
$ 0.67 |
$ 0.31 | ||||||||
|
Pro forma adjustments(2) |
- |
$ (7) |
||||||||||||||
|
Pro forma adjusted EBITDA(1) |
$ 340 |
$ 227 |
||||||||||||||
|
Adjusted income tax expense(1) |
$ 57 |
$ 25 |
||||||||||||||
|
Net income attributable to noncontrolling interests, net of tax |
32 |
9 |
||||||||||||||
|
Minority interest of discontinued operations(1)(4) |
(12) |
(3) |
||||||||||||||
|
Adjusted pre-tax income(1) |
$ 241 |
$ 105 |
||||||||||||||
|
Adjusted effective tax rate |
24% |
24% |
||||||||||||||
|
Income Tax |
Diluted Income | |||||||||||||||
|
EBITDA |
Expense |
Net Income |
Per Share | |||||||||||||
|
Three months ended |
Three months ended |
Three months ended |
Three months ended | |||||||||||||
|
June 30, |
June 30, |
June 30, |
June 30, | |||||||||||||
|
In millions, except per share amounts |
2017 |
2017 |
2017 |
2017 | ||||||||||||
|
Net income |
$ 183 |
$ 183 |
$ 0.75 |
|||||||||||||
|
Net income attributable to noncontrolling interests |
(16) |
(16) |
(0.07) |
|||||||||||||
|
Net income attributable to Huntsman Corporation |
167 |
167 |
0.69 |
|||||||||||||
|
Interest expense from continuing operations |
47 |
|||||||||||||||
|
Interest expense from discontinued operations(4) |
- |
|||||||||||||||
|
Income tax expense from continuing operations |
24 |
$ (24) |
||||||||||||||
|
Income tax expense from discontinued operations(4) |
21 |
|||||||||||||||
|
Depreciation and amortization from continuing operations |
79 |
|||||||||||||||
|
Depreciation and amortization from discontinued operations(4) |
29 |
|||||||||||||||
|
Acquisition and integration expenses |
4 |
- |
4 |
0.02 |
||||||||||||
|
EBITDA / Income from discontinued operations, net of tax(4) |
(95) |
N/A |
(45) |
(0.18) |
||||||||||||
|
Minority interest of discontinued operations(1)(4) |
3 |
N/A |
3 |
0.01 |
||||||||||||
|
Gain on disposition of businesses/assets |
(8) |
- |
(8) |
(0.03) |
||||||||||||
|
Loss on early extinguishment of debt |
1 |
- |
1 |
- |
||||||||||||
|
Expenses associated with merger |
6 |
N/A |
6 |
0.02 |
||||||||||||
|
Certain legal settlements and related expenses |
1 |
- |
1 |
- |
||||||||||||
|
Amortization of pension and postretirement actuarial losses |
17 |
(4) |
13 |
0.05 |
||||||||||||
|
Restructuring, impairment and plant closing and transition costs |
3 |
(1) |
2 |
0.01 |
||||||||||||
|
Adjusted(1) |
$ 299 |
$ (29) |
$ 144 |
$ 0.59 |
||||||||||||
|
Adjusted income tax expense(1) |
$ 29 |
|||||||||||||||
|
Net income attributable to noncontrolling interests, net of tax |
16 |
|||||||||||||||
|
Minority interest of discontinued operations(1)(4) |
(3) |
|||||||||||||||
|
Adjusted pre-tax income(1) |
$ 186 |
|||||||||||||||
|
Adjusted effective tax rate |
16% |
|||||||||||||||
|
Income Tax |
Diluted Income | |||||||||||||||
|
EBITDA |
(Expense) Benefit |
Net Income |
Per Share | |||||||||||||
|
Nine months ended |
Nine months ended |
Nine months ended |
Nine months ended | |||||||||||||
|
September 30, |
September 30, |
September 30, |
September 30, | |||||||||||||
|
In millions, except per share amounts |
2017 |
2016 |
2017 |
2016 |
2017 |
2016 |
2017 |
2016 | ||||||||
|
Net income |
$ 454 |
$ 220 |
$ 454 |
$ 220 |
$ 1.86 |
$ 0.92 | ||||||||||
|
Net income attributable to noncontrolling interests |
(64) |
(22) |
(64) |
(22) |
(0.26) |
(0.09) | ||||||||||
|
Net income attributable to Huntsman Corporation |
390 |
198 |
390 |
198 |
1.60 |
0.83 | ||||||||||
|
Interest expense from continuing operations |
134 |
153 |
||||||||||||||
|
Interest expense (income) from discontinued operations(4) |
8 |
(1) |
||||||||||||||
|
Income tax expense from continuing operations |
78 |
65 |
(78) |
(65) |
||||||||||||
|
Income tax expense (benefit) from discontinued operations(4) |
41 |
(8) |
||||||||||||||
|
Depreciation and amortization from continuing operations |
235 |
238 |
||||||||||||||
|
Depreciation and amortization from discontinued operations(4) |
68 |
84 |
||||||||||||||
|
Acquisition and integration expenses |
17 |
11 |
(4) |
(3) |
13 |
8 |
0.05 |
0.03 | ||||||||
|
EBITDA / Income (loss) from discontinued operations, net of tax(4) |
(218) |
(63) |
N/A |
N/A |
(101) |
12 |
(0.41) |
0.05 | ||||||||
|
Minority interest of discontinued operations(1)(4) |
18 |
8 |
N/A |
N/A |
18 |
8 |
0.07 |
0.03 | ||||||||
|
Gain on disposition of businesses/assets |
(8) |
- |
- |
- |
(8) |
- |
(0.03) |
- | ||||||||
|
Loss on early extinguishment of debt |
36 |
3 |
(12) |
(1) |
24 |
2 |
0.10 |
0.01 | ||||||||
|
Expenses associated with merger |
18 |
- |
N/A |
N/A |
17 |
- |
0.07 |
- | ||||||||
|
Certain legal settlements and related expenses |
1 |
- |
- |
- |
1 |
- |
- |
- | ||||||||
|
Net plant incident costs |
13 |
- |
(4) |
- |
9 |
- |
0.04 |
- | ||||||||
|
Amortization of pension and postretirement actuarial losses |
55 |
42 |
(11) |
(10) |
44 |
32 |
0.18 |
0.13 | ||||||||
|
Restructuring, impairment and plant closing and transition costs |
13 |
57 |
(2) |
(15) |
11 |
42 |
0.05 |
0.18 | ||||||||
|
Adjusted(1) |
$ 899 |
$ 787 |
$ (111) |
$ (94) |
$ 418 |
$ 302 |
$ 1.72 |
$ 1.26 | ||||||||
|
Pro forma adjustments(2) |
- |
$ (22) |
||||||||||||||
|
Pro forma adjusted EBITDA(1) |
$ 899 |
$ 765 |
||||||||||||||
|
Adjusted income tax expense(1) |
$ 111 |
$ 94 |
||||||||||||||
|
Net income attributable to noncontrolling interests, net of tax |
64 |
22 |
||||||||||||||
|
Minority interest of discontinued operations(1)(4) |
(18) |
(8) |
||||||||||||||
|
Adjusted pre-tax income(1) |
$ 575 |
$ 410 |
||||||||||||||
|
Adjusted effective tax rate |
19% |
23% |
||||||||||||||
|
See end of press release for footnote explanations |
|
Table 5 – Selected Balance Sheet Items | |||||||
|
September 30, |
June 30, |
December 31, | |||||
|
In millions |
2017 |
2017 |
2016 | ||||
|
Cash |
$ 451 |
$ 486 |
$ 396 | ||||
|
Accounts and notes receivable, net |
1,247 |
1,207 |
1,183 | ||||
|
Inventories |
1,084 |
1,089 |
918 | ||||
|
Other current assets |
240 |
236 |
281 | ||||
|
Current assets held for sale |
2,745 |
962 |
777 | ||||
|
Property, plant and equipment, net |
3,035 |
3,039 |
3,034 | ||||
|
Other assets |
1,181 |
1,194 |
1,137 | ||||
|
Noncurrent assets held for sale |
- |
1,475 |
1,463 | ||||
|
Total assets |
$ 9,983 |
$ 9,688 |
$ 9,189 | ||||
|
Accounts payable |
$ 891 |
$ 864 |
$ 790 | ||||
|
Other current liabilities |
537 |
460 |
471 | ||||
|
Current portion of debt |
29 |
41 |
50 | ||||
|
Current liabilities held for sale |
1,633 |
518 |
467 | ||||
|
Long-term debt |
2,845 |
4,061 |
4,122 | ||||
|
Other liabilities |
1,457 |
1,466 |
1,429 | ||||
|
Noncurrent liabilities held for sale |
- |
400 |
393 | ||||
|
Total equity |
2,591 |
1,878 |
1,467 | ||||
|
Total liabilities and equity |
$ 9,983 |
$ 9,688 |
$ 9,189 | ||||
|
Table 6 – Outstanding Debt | ||||
|
September 30, |
December 31, | |||
|
In millions |
2017 |
2016 | ||
|
Debt: |
||||
|
Senior credit facilities |
$ 592 |
$ 1,967 | ||
|
Accounts receivable programs |
184 |
208 | ||
|
Senior notes |
1,913 |
1,812 | ||
|
Variable interest entities |
114 |
126 | ||
|
Other debt |
71 |
59 | ||
|
Total debt - excluding affiliates |
2,874 |
4,172 | ||
|
Total cash |
451 |
396 | ||
|
Net debt- excluding affiliates |
$ 2,423 |
$ 3,776 | ||
|
Table 7 – Summarized Statement of Cash Flows | ||||||||
|
Three months ended |
Nine months ended | |||||||
|
September 30, |
September 30, | |||||||
|
In millions |
2017 |
2016 |
2017 |
2016 | ||||
|
Total cash at beginning of period(a) |
$ 520 |
$ 383 |
$ 425 |
$ 269 | ||||
|
Net cash provided by operating activities - continuing operations |
261 |
333 |
538 |
736 | ||||
|
Net cash provided by operating activities - discontinued operations(4) |
88 |
72 |
205 |
112 | ||||
|
Net cash used in investing activities - continuing operations |
(50) |
(82) |
(145) |
(213) | ||||
|
Net cash used in investing activities - discontinued operations(4) |
(61) |
(14) |
(49) |
(57) | ||||
|
Net cash used in financing activities |
(125) |
(244) |
(349) |
(397) | ||||
|
Effect of exchange rate changes on cash |
4 |
1 |
12 |
1 | ||||
|
Change in restricted cash |
- |
1 |
- |
(1) | ||||
|
- | ||||||||
|
Total cash at end of period(a) |
$ 637 |
$ 450 |
$ 637 |
$ 450 | ||||
|
Supplemental cash flow information - continuing operations: |
||||||||
|
Cash paid for interest |
$ (30) |
$ (36) |
$ (122) |
$ (139) | ||||
|
Cash (paid) received for income taxes |
(21) |
(8) |
36 |
(29) | ||||
|
Cash paid for capital expenditures |
(58) |
(82) |
(159) |
(214) | ||||
|
Depreciation and amortization |
80 |
83 |
235 |
238 | ||||
|
- |
||||||||
|
Changes in primary working capital: |
||||||||
|
Accounts and notes receivable |
$ (28) |
$ 68 |
$ (148) |
$ (3) | ||||
|
Inventories |
19 |
57 |
(118) |
133 | ||||
|
Accounts payable |
16 |
13 |
95 |
(11) | ||||
|
Total cash (used in) provided by primary working capital |
$ 7 |
$ 138 |
$ (171) |
$ 119 | ||||
|
Three months ended |
Nine months ended | |||||||
|
September 30, |
September 30, | |||||||
|
2017 |
2016 |
2017 |
2016 | |||||
|
Free cash flow(3): |
||||||||
|
Net cash provided by operating activities |
$ 261 |
$ 333 |
$ 538 |
$ 736 | ||||
|
Capital expenditures |
(58) |
(82) |
(159) |
(214) | ||||
|
All other investing activities, excluding acquisition and disposition activities(b) |
6 |
- |
7 |
1 | ||||
|
Non-recurring merger costs(c) |
18 |
- |
18 |
- | ||||
|
Total free cash flow |
$ 227 |
$ 251 |
$ 404 |
$ 523 | ||||
|
Adjusted EBITDA |
$ 340 |
$ 234 |
$ 899 |
$ 787 | ||||
|
Capital expenditures |
(58) |
(82) |
(159) |
(214) | ||||
|
Capital reimbursements |
- |
2 |
1 |
28 | ||||
|
Interest |
(30) |
(36) |
(122) |
(139) | ||||
|
Income taxes |
(21) |
(8) |
36 |
(29) | ||||
|
Primary working capital change |
7 |
138 |
(171) |
119 | ||||
|
Restructuring |
(7) |
(19) |
(26) |
(42) | ||||
|
Pensions |
(48) |
(13) |
(85) |
(45) | ||||
|
Maintenance & other |
44 |
35 |
31 |
58 | ||||
|
Total free cash flow(3) |
$ 227 |
$ 251 |
$ 404 |
$ 523 | ||||
|
Free cash flow of discontinued operations(3)(4) |
$ 61 |
$ 52 |
$ 217 |
$ 49 | ||||
|
(a) Includes restricted cash and cash held in discontinued operations. |
|
(b) Represents "Acquisition of business, net of cash acquired", "Cash received from purchase price adjustment for business acquired", and "Proceeds from sale of business/assets". |
|
(c) Represents payments associated with one-time costs of the proposed merger of equals with Clariant. |
|
Footnotes | |
|
(1) |
We use adjusted EBITDA to measure the operating performance of our business and for planning and evaluating the performance of our business segments. We provide adjusted net income because we feel it provides meaningful insight for the investment community into the performance of our business. We believe that net income (loss) is the performance measure calculated and presented in accordance with generally accepted accounting principles in the U.S. ("GAAP") that is most directly comparable to adjusted EBITDA and adjusted net income. Additional information with respect to our use of each of these financial measures follows: |
|
Adjusted EBITDA, adjusted net income (loss) and adjusted diluted income (loss) per share, as used herein, are not necessarily comparable to other similarly titled measures of other companies. | |
|
Adjusted EBITDA is computed by eliminating the following from net income (loss): (a) net income attributable to noncontrolling interests, net of tax; (b) interest; (c) income taxes; (d) depreciation and amortization; (e) acquisition and integration expenses; (f) Income (loss) from discontinued operations, net of tax; (g) minority interest from discontinued operations (h) loss (gain) on disposition of businesses/assets; (i) loss on early extinguishment of debt; (j) expenses associated with merger; (k) certain legal settlements and related expenses (l) net plant incident costs (credits); (m) amortization of pension and postretirement actuarial losses (gains); and (n) restructuring, impairment and plant closing costs (credits). The reconciliation of adjusted EBITDA to net income (loss) is set forth in Table 4 above. | |
|
Adjusted net income (loss) and adjusted diluted income (loss) per share are computed by eliminating the after tax impact of the following items from net income (loss: (a) net income attributable to noncontrolling interest; (b) acquisition and integration expenses, purchase accounting adjustments; (c) impact of certain foreign tax credit elections; (d) Income (loss) from discontinued operations, net of tax;; (e) discount amortization on settlement financing associated with the terminated merger; (f) loss (gain) on disposition of businesses/assets; (g) loss on early extinguishment of debt; (h) expenses associated with the merger; (i) certain legal settlements and related expenses; (j) net plant incident costs (credits); (k) minority interest from discontinued operations; (l) amortization of pension and postretirement actuarial losses (gains); and (m) restructuring, impairment and plant closing costs (credits). The income tax impacts, if any, of each adjusting item represent a ratable allocation of the total difference between the unadjusted tax expense and the total adjusted tax expense, computed without consideration of any adjusting items using a with and without approach. We do not adjust for changes in tax valuation allowances because we do not believe it provides more meaningful information than is provided under GAAP. The reconciliation of adjusted net income (loss) to net income (loss) is set forth in Table 4 above. | |
|
(2) |
Pro forma adjusted to exclude the sale of our European differentiated surfactants business to Innospec on December 30, 2016 as if it had occurred at the beginning of the relevant period. |
|
(3) |
Management internally uses a free cash flow measure: (a) to evaluate the Company's liquidity, (b) to evaluate strategic investments, (c) to plan stock buyback and dividend levels and (d) to evaluate the Company's ability to incur and service debt. Free cash flow is not a defined term under U.S. GAAP, and it should not be inferred that the entire free cash flow amount is available for discretionary expenditures. The Company defines free cash flow as cash flow provided by operating activities less cash flow used in investing activities, excluding acquisition/disposition activities and non-recurring separation costs. Free cash flow is typically derived directly from the Company's condensed consolidated statement of cash flows; however, it may be adjusted for items that affect comparability between periods. |
|
(4) |
During the third quarter of 2017 we separated our Pigments and Additives division through an Initial Public Offering of Venator Materials PLC; Additionally, during the first quarter 2010 we closed our Australian styrenics operations. Results from these associated businesses are treated as discontinued operations. |
About Huntsman:
Huntsman Corporation is a publicly traded global manufacturer and marketer of differentiated and specialty chemicals with 2016 revenues of more than $7 billion. Our chemical products number in the thousands and are sold worldwide to manufacturers serving a broad and diverse range of consumer and industrial end markets. We operate more than 75 manufacturing, R&D and operations facilities in over 30 countries and employ approximately 10,000 associates within our four distinct business divisions. For more information about Huntsman, please visit the company's website at www.huntsman.com.
Social Media:
Twitter: www.twitter.com/Huntsman_Corp
Facebook: www.facebook.com/huntsmancorp
LinkedIn: www.linkedin.com/company/huntsman
Forward Looking Statements:
Statements in this release that are not historical are forward-looking statements. These statements are based on management's current beliefs and expectations. The forward-looking statements in this release are subject to uncertainty and changes in circumstances and involve risks and uncertainties that may affect the company's operations, markets, products, services, prices and other factors as discussed in the Huntsman companies' filings with the U.S. Securities and Exchange Commission. Significant risks and uncertainties may relate to, but are not limited to: effects of disruption caused by the announcement of and termination of the merger of equals transaction and its termination making it more difficult to maintain relationships with employees, customers, vendors and other business partners; the risk that stockholder litigation in connection with the contemplated transaction and its termination may result in significant costs of defense, indemnification and liability; transaction costs; volatile global economic conditions, cyclical and volatile product markets, disruptions in production at manufacturing facilities, reorganization or restructuring of Huntsman's operations, the ability to implement cost reductions and manufacturing optimization improvements in Huntsman businesses, and other financial, economic, competitive, environmental, political, legal, regulatory and technological factors. The company assumes no obligation to provide revisions to any forward-looking statements should circumstances change, except as otherwise required by applicable laws.
View original content with multimedia:http://www.prnewswire.com/news-releases/huntsman-announces-strong-third-quarter-2017-results-balance-sheet-transformed-with-significant-debt-reduction-300544380.html
SOURCE Huntsman Corporation
Article Date
10/27/2017Huntsman and Clariant Mutually Agree to Abandon Planned Merger of Equals
Source: PR Newswire
Orignial Article: https://www.prnewswire.co...
THE WOODLANDS, Texas, Oct. 27, 2017 /PRNewswire/ -- Huntsman Corporation (NYSE: HUN) and Clariant (SIX: CLN) today jointly announced that they have terminated their proposed merger of equals by mutual agreement. The decision was unanimously approved by the Boards of Directors of Huntsman and Clariant.
In a joint statement, Peter R. Huntsman, President and CEO of Huntsman, and Hariolf Kottmann, CEO of Clariant, stated:
"While we remain convinced that the proposed merger of equals as agreed to on May 21, 2017, is in the long term best interests of all of our shareholders, given the continued accumulation of shares by activist investor White Tale Holdings and their opposition to the transaction, now supported by some other shareholders, we believe that there is simply too much uncertainty as to whether Clariant will be able to secure the two-thirds shareholder approval that is required to approve the transaction under Swiss law. Under these circumstances and in light of the high level of disruption and uncertainty that has been created for both companies, we have decided jointly to terminate the merger agreement, stop the substantial expenditure of funds associated with integration planning, and proceed along our independent paths in the best interests of both companies and their shareholders, associates, and other stakeholders. We, of course, remain competitors but maintain a great respect for one another, and we want to recognize and express our mutual and deep appreciation for the efforts and incredible commitment demonstrated by the associates of each company over the past several months."
No fees are currently payable under the terms of the Termination Agreement.
Peter Huntsman further commented:
"We viewed this merger of equals as an opportunity to accelerate our downstream growth and for two great companies to become even better together. However, it is not the only option for Huntsman to create real and lasting value. Going forward, we will continue to create shareholder value by delivering on four objectives:
"Our future has never looked brighter. The Company's balance sheet is stronger than it has ever been and will strengthen further as we continue to generate strong cash flow from our operations and monetize our Venator equity. We also look forward to wide scale improvement this year over the previous in earnings, growth and margin expansion."
About Huntsman:
Huntsman Corporation is a publicly traded global manufacturer and marketer of differentiated and specialty chemicals with 2016 revenues of more than $7 billion. Our chemical products number in the thousands and are sold worldwide to manufacturers serving a broad and diverse range of consumer and industrial end markets. We operate more than 75 manufacturing, R&D and operations facilities in over 30 countries and employ approximately 10,000 associates within our four distinct business divisions. For more information about Huntsman, please visit the company's website at www.huntsman.com.
Social Media:
Twitter: twitter.com/Huntsman_Corp
Facebook: www.facebook.com/huntsmancorp
LinkedIn: www.linkedin.com/company/huntsman
Cautionary Statement Regarding Forward-Looking Statements:
This communication contains certain statements that are "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended (the "Securities Act"), and Section 21E of the Securities Exchange Act of 1934, as amended. Huntsman Corporation ("Huntsman") has identified some of these forward-looking statements with words like "believe," "may," "could," "would," "might," "possible," "will," "should," "expect," "intend," "plan," "anticipate," "estimate," "potential," "outlook" or "continue," the negative of these words, other terms of similar meaning or the use of future dates. Forward-looking statements in this communication include, without limitation, statements about the mutual termination of the merger of equals transaction and the independent prospects of each company. Such statements are based on the current expectations of the management of Huntsman, are qualified by the inherent risks and uncertainties surrounding future expectations generally, and actual results could differ materially from those currently anticipated due to a number of risks and uncertainties. Neither Huntsman, nor any of its directors, executive officers or advisors, provide any representation, assurance or guarantee that the occurrence of the events expressed or implied in any forward-looking statements will actually occur. Risks and uncertainties that could cause results to differ from expectations include: the effects of disruption caused by the announcement of and termination of the contemplated transaction and its termination making it more difficult to maintain relationships with employees, customers, vendors and other business partners; the risk that stockholder litigation in connection with the contemplated transaction and its termination may result in significant costs of defense, indemnification and liability; other business effects, including the effects of industry, economic or political conditions outside of the control of the parties to the contemplated transaction; transaction costs; actual or contingent liabilities; disruptions to the financial or capital markets; and other risks and uncertainties discussed in Huntsman's filings with the U.S. Securities and Exchange Commission (the "SEC"), including the "Risk Factors" sections of Huntsman's annual report on Form 10-K for the fiscal year ended December 31, 2016 and the quarterly report on Form 10-Q for the six month period ended June 30, 2017. You can obtain copies of Huntsman's filings with the SEC for free at the SEC's website (www.sec.gov). Forward-looking statements included herein are made only as of the date hereof and Huntsman undertakes no obligation to update any forward-looking statements as a result of new information, future developments or otherwise, except as expressly required by law. All forward-looking statements in this communication are qualified in their entirety by this cautionary statement.
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SOURCE Huntsman Corporation
Article Date
10/27/2017Huntsman to Discuss Third Quarter 2017 Results on October 27, 2017
Source: PR Newswire
Orignial Article: http://www.prnewswire.com...
THE WOODLANDS, Texas, Oct. 12, 2017 /PRNewswire/ -- Huntsman Corporation (NYSE: HUN) will hold a conference call to discuss its third quarter 2017 financial results on Friday, October 27, 2017 at 10:00 a.m. ET. Third quarter 2017 results will be released to the public at approximately 6:00 a.m. ET that day via PR Newswire.
Call-in numbers for the conference call:
U.S. participants (888) 680 – 0890
International participants (617) 213 - 4857
Passcode 547 974 21#
In order to facilitate the registration process, you may use the following link to pre-register for the conference call. Callers who pre-register will be given a unique PIN to gain immediate access to the call and bypass the live operator. You may pre-register at any time, including up to and after the call start time. To pre-register, please go to:
https://www.theconferencingservice.com/prereg/key.process?key=RUQYJ4LNY .
Webcast Information
The conference call will be available via webcast and can be accessed from the company's website at ir.huntsman.com.
Replay Information
The conference call will be available for replay beginning October 27, 2017 and ending November 3, 2017.
Call-in numbers for the replay:
U.S. participants (888) 286 - 8010
International participants (617) 801 - 6888
Replay code 29385180
About Huntsman:
Huntsman Corporation is a publicly traded global manufacturer and marketer of differentiated and specialty chemicals with 2016 revenues of approximately $10 billion. Our chemical products number in the thousands and are sold worldwide to manufacturers serving a broad and diverse range of consumer and industrial end markets. We operate more than 75 manufacturing, R&D and operations facilities in over 30 countries and employ approximately 10,000 associates within our four distinct business divisions. For more information about Huntsman, please visit the company's website at www.huntsman.com.
Social Media:
Twitter: twitter.com/Huntsman_Corp
Facebook: www.facebook.com/huntsmancorp
LinkedIn: www.linkedin.com/company/huntsman
Forward Looking Statements:
Statements in this release that are not historical are forward-looking statements. These statements are based on management's current beliefs and expectations. The forward-looking statements in this release are subject to uncertainty and changes in circumstances and involve risks and uncertainties that may affect the company's operations, markets, products, services, prices and other factors as discussed in the Huntsman companies' filings with the U.S. Securities and Exchange Commission. Significant risks and uncertainties may relate to, but are not limited to, volatile global economic conditions, cyclical and volatile product markets, disruptions in production at manufacturing facilities, reorganization or restructuring of Huntsman's operations, the ability to implement cost reductions and manufacturing optimization improvements in Huntsman businesses, to consummate or achieve the expected benefits of the proposed transaction with Clariant and to realize anticipated cost savings, and other financial, economic, competitive, environmental, political, legal, regulatory and technological factors. The company assumes no obligation to provide revisions to any forward-looking statements should circumstances change, except as otherwise required by applicable laws
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SOURCE Huntsman Corporation
Article Date
10/12/20179/19/2017 - Huntsman Responds to False and Misleading Comments from White Tale on Proposed Merger with Clariant
Huntsman Responds to False and Misleading Comments from White Tale on Proposed Merger with Clariant
Source: PR Newswire
Orignial Article: http://www.prnewswire.com...
THE WOODLANDS, Texas, Sept. 19, 2017 /PRNewswire/ -- Huntsman Corporation (NYSE: HUN) today issued the following statement in response to the public letter from White Tale Holdings, a Cayman Islands based investment vehicle controlled by short-term oriented hedge funds, 40 North and Corvex, which invested in Clariant only after the merger announcement, and now holds a stake in Clariant in excess of 15%.
Peter Huntsman, President and CEO, commented:
"White Tale has resorted to demonstrably false attacks on Huntsman's performance and its portfolio in a transparent and self-serving attempt to derail our strategic merger of equals with Clariant. In an apparent effort to engineer a short-term rise in the Clariant stock price, White Tale has advanced a destructive, high risk strategy of dismantling Clariant and denying all other stakeholders of the company the sustainable, long-term benefits of this compelling combination.
"White Tale's attacks on Huntsman are false. Since March 2016, when Huntsman communicated our strategy at our investor day, we have delivered more than we promised: free cash flow in excess of our peers and more than $2 billion of deleveraging, the separation of our Pigments and Additives business, and significant growth in our downstream specialty and differentiated businesses. Our total shareholder return over that time has been above 150%, which is far more than Corvex has delivered to its investors. Instead of questioning Clariant's motivations, Clariant investors should ask why Corvex has lost billions of funds under management in recent years and returns have been poor.
"I have not met with White Tale and have no intention to do so. Their activism is all about the short-term, break-up value of Clariant and is not about Huntsman."
Huntsman has transformed into a focused specialty and differentiated chemical company. Through aggressive portfolio management, Huntsman's has become, with few exceptions, a specialty chemical business. Less than 10% of Huntsman's EBITDA now comes from lower margin, commoditized businesses. There is thus no doubt that both Huntsman and Clariant have specialty businesses that deliver high-growth and high-margins; in this most recent quarter, both companies' adjusted EBITDA margins were approximately 15%, and the combined business margin, including synergies, is expected to be above 17%, higher than either business is expected to achieve alone.
Huntsman has delivered long-term and sustainable value to its stockholders and Corvex has not. Huntsman has displayed a strong ability to build leading specialty and differentiated chemical platforms and create significant long-term value by integrating attractive businesses through acquisitions and strategic investments. The Company's acquisition of the Rockwood businesses demonstrated just that. When Corvex took a position in Huntsman stock in 2013, they urged Huntsman to divest its small, commoditized pigments business in to a market with few buyers and no public option. Instead of capitulating to Corvex's threats, Huntsman invested in the business to create the option it recently exercised—the IPO of Venator with a market valuation of approximately $3 billion, a delivery of $1.5 billion in incremental value to shareholders.
Like it did in 2013, Corvex is resurrecting the self-serving playbook from its widely-criticized ADT investment – pushing for Clariant to undertake short-sighted financial engineering apparently in order to deliver a short-term rise in the stock price into which it then sells its stake, leaving the long-term shareholders to pick up the pieces after it's gone.
Huntsman has a strong operational track record. Huntsman has a proven track record for taking costs out of its businesses and generating operational efficiencies, most recently demonstrated by its transformation of the Rockwood businesses acquired in 2014 where more than $200 million in costs were taken out without any negative impact on safety, as well as the successful transformation of both its Advanced Materials and Textile Effects businesses, where in excess of another $200 million in costs were eliminated. In the past two years alone, Huntsman has paid down more than $2 billion of its debt and remains focused on cash generation, kicked off the successful separation of its Pigments and Additives Division, creating a publicly traded company worth approximately $3 billion and grown its differentiated businesses through bolt-on acquisitions and strategic investments.
About Huntsman:
Huntsman Corporation is a publicly traded global manufacturer and marketer of differentiated and specialty chemicals with 2016 revenues of approximately $10 billion. Our chemical products number in the thousands and are sold worldwide to manufacturers serving a broad and diverse range of consumer and industrial end markets. We operate more than 75 manufacturing, R&D and operations facilities in over 30 countries and employ approximately 10,000 associates within our four distinct business divisions. For more information about Huntsman, please visit the company's website at www.huntsman.com.
Social Media:
Twitter: twitter.com/Huntsman_Corp
Facebook: www.facebook.com/huntsmancorp
LinkedIn: www.linkedin.com/company/huntsman
Cautionary Statement Regarding Forward-Looking Statements
This release contains certain statements that are "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended (the "Securities Act"), and Section 21E of the Securities Exchange Act of 1934, as amended. Clariant and Huntsman have identified some of these forward-looking statements with words like "believe," "may," "could," "would," "might," "possible," "will," "should," "expect," "intend," "plan," "anticipate," "estimate," "potential," "outlook" or "continue," the negative of these words, other terms of similar meaning or the use of future dates. Forward-looking statements in this release include, without limitation, statements about the anticipated benefits of the contemplated transaction, including future financial and operating results and expected synergies and cost savings related to the contemplated transaction, the plans, objectives, expectations and intentions of Clariant, Huntsman or the combined company, the expected timing of the completion of the contemplated transaction and information relating to the initial public offering of ordinary shares of Venator Materials PLC. Such statements are based on the current expectations of the management of Clariant or Huntsman, as applicable, are qualified by the inherent risks and uncertainties surrounding future expectations generally, and actual results could differ materially from those currently anticipated due to a number of risks and uncertainties. Neither Clariant nor Huntsman, nor any of their respective directors, executive officers or advisors, provide any representation, assurance or guarantee that the occurrence of the events expressed or implied in any forward-looking statements will actually occur. Risks and uncertainties that could cause results to differ from expectations include: uncertainties as to the timing of the contemplated transaction; uncertainties as to the approval of Huntsman's stockholders and Clariant's shareholders required in connection with the contemplated transaction; the possibility that a competing proposal will be made; the possibility that the closing conditions to the contemplated transaction may not be satisfied or waived, including that a governmental entity may prohibit, delay or refuse to grant a necessary regulatory approval; the effects of disruption caused by the announcement of the contemplated transaction making it more difficult to maintain relationships with employees, customers, vendors and other business partners; the risk that stockholder litigation in connection with the contemplated transaction may affect the timing or occurrence of the contemplated transaction or result in significant costs of defense, indemnification and liability; ability to refinance existing indebtedness of Clariant or Huntsman in connection with the contemplated transaction; other business effects, including the effects of industry, economic or political conditions outside of the control of the parties to the contemplated transaction; transaction costs; actual or contingent liabilities; disruptions to the financial or capital markets, including with respect to financing activities related to the contemplated transaction; and other risks and uncertainties discussed in Huntsman's filings with the U.S. Securities and Exchange Commission (the "SEC"), including the "Risk Factors" section of Huntsman's annual report on Form 10-K for the fiscal year ended December 31, 2016. You can obtain copies of Huntsman's filings with the SEC for free at the SEC's website (www.sec.gov). Forward-looking statements included herein are made only as of the date hereof and neither Clariant nor Huntsman undertakes any obligation to update any forward-looking statements as a result of new information, future developments or otherwise, except as expressly required by law. All forward-looking statements in this communication are qualified in their entirety by this cautionary statement.
Important Additional Information and Where to Find It
NO OFFER OR SOLICITATION
This release is not intended to and does not constitute an offer to sell or the solicitation of an offer to subscribe for or buy or an invitation to purchase or subscribe for any securities or the solicitation of any vote or approval in any jurisdiction, nor shall there be any sale, issuance or transfer of securities in any jurisdiction in contravention of applicable law. No offer of securities will be made except by means of a prospectus meeting the requirements of Section 10 of the Securities Act.
IMPORTANT ADDITIONAL INFORMATION WILL BE FILED WITH THE SEC
In connection with the contemplated transaction, Clariant intends to file a registration statement on Form F-4 with the SEC that will include the Proxy Statement/Prospectus of Huntsman. The Proxy Statement/Prospectus will also be sent or given to Huntsman stockholders and will contain important information about the contemplated transaction. INVESTORS AND SHAREHOLDERS ARE URGED TO READ THE PROXY STATEMENT/PROSPECTUS AND OTHER RELEVANT DOCUMENTS FILED OR TO BE FILED WITH THE SEC CAREFULLY WHEN THEY BECOME AVAILABLE BECAUSE THEY WILL CONTAIN IMPORTANT INFORMATION ABOUT CLARIANT, HUNTSMAN, THE CONTEMPLATED TRANSACTION AND RELATED MATTERS. Investors and shareholders will be able to obtain free copies of the Proxy Statement/Prospectus (when available) and other documents filed with the SEC by Clariant and Huntsman through the website maintained by the SEC at www.sec.gov.
PARTICIPANTS IN THE SOLICITATION
Huntsman and its directors and executive officers may be deemed to be participants in the solicitation of proxies from Huntsman investors and shareholders in connection with the contemplated transaction. Information about Huntsman's directors and executive officers is set forth in its proxy statement for its 2017 Annual Meeting of Stockholders and its annual report on Form 10-K for the fiscal year ended December 31, 2016. These documents may be obtained for free at the SEC's website at www.sec.gov. Additional information regarding the interests of participants in the solicitation of proxies in connection with the contemplated transactions will be included in the Proxy Statement/ Prospectus that Huntsman intends to file with the SEC.
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SOURCE Huntsman Corporation
Article Date
9/19/20179/18/2017 - Huntsman Raises Third Quarter 2017 Expectations and Comments on the Impact of Hurricane Harvey
Huntsman Raises Third Quarter 2017 Expectations and Comments on the Impact of Hurricane Harvey
Source: PR Newswire
Orignial Article: http://www.prnewswire.com...
THE WOODLANDS, Texas, Sept. 18, 2017 /PRNewswire/ -- As previously announced, Huntsman Corporation's (NYSE: HUN) operations in the Texas Gulf Coast region were temporarily impacted by Hurricane Harvey. These sites are currently in various stages of operations or startup and will resume full operations as engineering and safety checks are completed and raw materials become available.
Despite Hurricane Harvey, Huntsman expects strong total third quarter results that are better than second quarter results, after excluding the Pigments and Additives division, which will now be reported in discontinued operations. This is primarily due to the strength of the global Polyurethanes business as well as the continued recovery of the Performance Products business. Additionally, as a result of Harvey, the planned Port Neches turnaround will carry into October, in effect shifting the estimated adjusted EBITDA impact of approximately $15 million to $20 million from third quarter to fourth quarter.
The Hurricane Harvey impact to third quarter adjusted EBITDA is currently estimated to be approximately $35 million to $40 million. Divisionally, the impacts of Hurricane Harvey will mostly be in the Performance Products segment, which recently declared force majeure on ethylene oxide, ethylene glycol, ethanolamines, and select other ethylene oxide derivative products. Inclusive in this hurricane impact there will be some effect in the Polyurethanes segment as a result of the temporary shutdown of our PO/MTBE operations located at our Port Neches, Texas site.
Peter Huntsman, President and CEO, commented:
"Hurricane Harvey was a devastating storm that caused widespread flooding in the Texas Gulf Coast region and displaced many from their homes. Those impacts are still being felt today. Our first priority has always been to ensure the safety and wellbeing of our associates, their families, the communities in which our plants sit and our operations. I am pleased to report that all of our associates are safe. We continue to support our employees whose homes were significantly impacted by flooding and need help getting their lives back to normal.
"While our operations in the region were temporarily disrupted, there was no significant damage to any of our manufacturing sites and, except for the planned turnaround at our Port Neches, Texas facility, all are either now operating or are in the process of returning to normal operations. We are proactively pursuing the turnaround at Port Neches to minimize the amount of downtime and return supply to our customers.
"Importantly, I am pleased with the strong business results that allow us to mitigate these losses such that our total adjusted EBITDA outlook for the third quarter is better than second quarter."
About Huntsman:
Huntsman Corporation is a publicly traded global manufacturer and marketer of differentiated and specialty chemicals with 2016 revenues of approximately $10 billion. Our chemical products number in the thousands and are sold worldwide to manufacturers serving a broad and diverse range of consumer and industrial end markets. We operate more than 75 manufacturing, R&D and operations facilities in over 30 countries and employ approximately 10,000 associates within our four distinct business divisions. For more information about Huntsman, please visit the company's website at www.huntsman.com.
Social Media:
Twitter: twitter.com/Huntsman_Corp
Facebook: www.facebook.com/huntsmancorp
LinkedIn: www.linkedin.com/company/huntsman
Forward Looking Statements:
Statements in this release that are not historical are forward-looking statements. These statements are based on management's current beliefs and expectations. The forward-looking statements in this release are subject to uncertainty and changes in circumstances and involve risks and uncertainties that may affect the company's operations, markets, products, services, prices and other factors as discussed in the Huntsman companies' filings with the U.S. Securities and Exchange Commission. Significant risks and uncertainties may relate to, but are not limited to, volatile global economic conditions, cyclical and volatile product markets, disruptions in production at manufacturing facilities, reorganization or restructuring of Huntsman's operations, the ability to implement cost reductions and manufacturing optimization improvements in Huntsman businesses, to consummate or achieve the expected benefits of the proposed transaction with Clariant and to realize anticipated cost savings, and other financial, economic, competitive, environmental, political, legal, regulatory and technological factors. The company assumes no obligation to provide revisions to any forward-looking statements should circumstances change, except as otherwise required by applicable laws.
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SOURCE Huntsman Corporation
Article Date
9/18/2017Huntsman Announces Third Quarter 2017 Common Dividend
Source: PR Newswire
Orignial Article: http://www.prnewswire.com...
THE WOODLANDS, Texas, Aug. 21, 2017 /PRNewswire/ -- Huntsman Corporation (NYSE: HUN) today announced that its board of directors has declared a $0.125 per share cash dividend on its common stock. The dividend is payable on September 29, 2017, to stockholders of record as of September 15, 2017.
About Huntsman:
Huntsman Corporation is a publicly traded global manufacturer and marketer of differentiated and specialty chemicals with 2016 revenues of approximately $10 billion. Our chemical products number in the thousands and are sold worldwide to manufacturers serving a broad and diverse range of consumer and industrial end markets. We operate more than 75 manufacturing, R&D and operations facilities in over 30 countries and employ approximately 10,000 associates within our four distinct business divisions. For more information about Huntsman, please visit the company's website at www.huntsman.com.
Social Media:
Twitter: twitter.com/Huntsman_Corp
Facebook: www.facebook.com/huntsmancorp
LinkedIn: www.linkedin.com/company/huntsman
Forward Looking Statements:
Statements in this release that are not historical are forward-looking statements. These statements are based on management's current beliefs and expectations. The forward-looking statements in this release are subject to uncertainty and changes in circumstances and involve risks and uncertainties that may affect the company's operations, markets, products, services, prices and other factors as discussed in the Huntsman companies' filings with the U.S. Securities and Exchange Commission. Significant risks and uncertainties may relate to, but are not limited to, volatile global economic conditions, cyclical and volatile product markets, disruptions in production at manufacturing facilities, reorganization or restructuring of Huntsman's operations, the ability to implement cost reductions and manufacturing optimization improvements in Huntsman businesses, to consummate or achieve the expected benefits of the proposed transaction with Clariant and to realize anticipated cost savings, and other financial, economic, competitive, environmental, political, legal, regulatory and technological factors. The company assumes no obligation to provide revisions to any forward-looking statements should circumstances change, except as otherwise required by applicable laws.
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SOURCE Huntsman Corporation
Article Date
8/21/2017Huntsman Clariant Deal Continues to Move Forward: Focused "Second Request" for Additional Information Received from Federal Trade Commission
Source: PR Newswire
Orignial Article: http://www.prnewswire.com...
THE WOODLANDS, Texas, Aug. 15, 2017 /PRNewswire/ -- Huntsman Corporation (NYSE: HUN) is pleased to announce progress towards satisfying the regulatory approval condition to closing its merger of equals with Clariant AG (SIX: CLN). The United States Federal Trade Commission, which reviews the antitrust implications of certain business combinations, delivered a second request for information to Huntsman yesterday relating to just two products -- sodium isethionate, used in personal care products like soap and shampoos, and a polyetheramine product used in certain construction and additive/paint and ink applications. Together, these products accounted for less than $20 million of Huntsman's total revenues in the United States in 2016, and Huntsman is confident that it will be able satisfy any FTC concerns in advance of the targeted year-end closing date for the merger.
About Huntsman:
Huntsman Corporation is a publicly traded global manufacturer and marketer of differentiated and specialty chemicals with 2016 revenues of approximately $10 billion. Our chemical products number in the thousands and are sold worldwide to manufacturers serving a broad and diverse range of consumer and industrial end markets. We operate more than 75 manufacturing, R&D and operations facilities in over 30 countries and employ approximately 10,000 associates within our four distinct business divisions. For more information about Huntsman, please visit the company's website at www.huntsman.com.
Social Media:
Twitter: twitter.com/Huntsman_Corp
Facebook: www.facebook.com/huntsmancorp
LinkedIn: www.linkedin.com/company/huntsman
Forward Looking Statements:
Statements in this release that are not historical are forward-looking statements. These statements are based on management's current beliefs and expectations. The forward-looking statements in this release are subject to uncertainty and changes in circumstances and involve risks and uncertainties that may affect the company's operations, markets, products, services, prices and other factors as discussed in the Huntsman companies' filings with the U.S. Securities and Exchange Commission. Significant risks and uncertainties may relate to, but are not limited to, volatile global economic conditions, cyclical and volatile product markets, disruptions in production at manufacturing facilities, reorganization or restructuring of Huntsman's operations, the ability to implement cost reductions and manufacturing optimization improvements in Huntsman businesses, to consummate or achieve the expected benefits of the proposed transaction with Clariant and to realize anticipated cost savings, and other financial, economic, competitive, environmental, political, legal, regulatory and technological factors. The company assumes no obligation to provide revisions to any forward-looking statements should circumstances change, except as otherwise required by applicable laws.
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SOURCE Huntsman Corporation
Article Date
8/15/2017Huntsman Announces that Venator Closes its IPO
Source: PR Newswire
Orignial Article: http://www.prnewswire.com...
THE WOODLANDS, Texas, Aug. 8, 2017 /PRNewswire/ -- Huntsman Corporation (NYSE: HUN) announced its subsidiary, Venator Materials PLC ("Venator"), a global chemical company dedicated to the development and manufacture of titanium dioxide ("TiO2") pigments and performance additives, today completed its initial public offering ("IPO") of 26,105,000 ordinary shares, which includes 3,405,000 ordinary shares issued upon the exercise in full by the underwriters of their option to purchase additional ordinary shares. Venator's ordinary shares trade on the New York Stock Exchange under the ticker symbol "VNTR."
Huntsman intends to use approximately $725 million of net proceeds from the Venator debt distribution and the net IPO proceeds of about $475 million, excluding anticipated taxes, to pay down existing Company debt. The significant reduction of $1.2 billion in debt will put Huntsman's trailing twelve month pro-forma(1) leverage (net-debt-to-EBITDA) around 2.5 times. In addition, Huntsman's annual cash interest expense is expected to decrease by about $45 million. Since January 2016, and including the Venator proceeds, Huntsman has repaid over $2 billion of debt.
Peter Huntsman, our President and CEO commented:
"This IPO marks a significant milestone for Huntsman Corporation and creates substantial value for our shareholders. I want to thank the employees who worked relentlessly over the last several months to turn our Pigments and Additives division into Venator, a new standalone publicly traded company which I believe is well positioned for the future.
"Huntsman shareholders will benefit from the $1.2 billion reduction of debt and we will look to pay down additional debt as we monetize our remaining position in Venator over time and in an orderly fashion. The completion of this IPO and our increased financial strength positions us well as we work towards completing our merger of equals with Clariant."
Citigroup, Goldman Sachs & Co. LLC, BofA Merrill Lynch and J.P. Morgan acted as lead book-running managers for the IPO. Additional book-running managers were Barclays, Deutsche Bank Securities, UBS Investment Bank and RBC Capital Markets. Co-managers were Moelis & Company, HSBC, Nomura, SunTrust Robinson Humphrey, Academy Securities and Commerzbank. The offering of these securities was made only by means of a prospectus that met the requirements of Section 10 of the Securities Act of 1933.
Copies of the final prospectus relating to the initial public offering may be obtained, when available, from Citigroup, c/o Broadridge Financial Solutions, 1155 Long Island Avenue, Edgewood, NY 11717 or telephone: (800) 831-9146; Goldman Sachs & Co. LLC, Attn: Prospectus Department, 200 West Street, New York, NY 10282, telephone: (866) 471-2526 or email: prospectus-ny@ny.email.gs.com; BofA Merrill Lynch, NC1-004-03-43, 200 North College Street, 3rd floor, Charlotte, NC 28255-0001, Attn: Prospectus Department or email: dg.prospectus_requests@baml.com; and J.P. Morgan, c/o Broadridge Financial Solutions, 1155 Long Island Avenue, Edgewood, NY 11717 or telephone: (866) 803-9204.
About Huntsman
Huntsman Corporation is a publicly traded global manufacturer and marketer of differentiated and specialty chemicals with 2016 revenues of approximately $10 billion. Our chemical products number in the thousands and are sold worldwide to manufacturers serving a broad and diverse range of consumer and industrial end markets. We operate more than 75 manufacturing, R&D and operations facilities in over 30 countries and employ approximately 10,000 associates within our four distinct business divisions.
Important Information
A registration statement relating to these securities has been filed with the Securities and Exchange Commission (the "SEC") and has been declared effective. These securities may not be sold nor may offers to buy be accepted prior to the time the registration statement becomes effective. The registration statement may be obtained free of charge at the SEC's website at www.sec.gov under "Venator Materials PLC." This press release shall not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of these securities in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to the registration or qualification under the securities laws of any such state or jurisdiction.
Forward Looking Statements:
Statements in this release that are not historical are forward-looking statements. These statements are based on management's current beliefs and expectations. The forward-looking statements in this release are subject to uncertainty and changes in circumstances and involve risks and uncertainties that may affect the company's operations, markets, products, services, prices and other factors as discussed in the Huntsman companies' filings with the U.S. Securities and Exchange Commission. Significant risks and uncertainties may relate to, but are not limited to, volatile global economic conditions, cyclical and volatile product markets, disruptions in production at manufacturing facilities, reorganization or restructuring of Huntsman's operations, the ability to implement cost reductions and manufacturing optimization improvements in Huntsman businesses, to consummate or achieve the expected benefits of the proposed transaction with Clariant and to realize anticipated cost savings, and other financial, economic, competitive, environmental, political, legal, regulatory and technological factors. The company assumes no obligation to provide revisions to any forward-looking statements should circumstances change, except as otherwise required by applicable laws.
(1) pro forma excludes Venator trailing twelve months adjusted EBITDA. Please refer to our most recent presentation on ir.huntsman.com for the non-GAAP reconciliation.
View original content with multimedia:http://www.prnewswire.com/news-releases/huntsman-announces-that-venator-closes-its-ipo-300501244.html
SOURCE Huntsman Corporation
Article Date
8/8/2017Huntsman Announces that Venator Prices its IPO
Source: PR Newswire
Orignial Article: http://www.prnewswire.com...
THE WOODLANDS, Texas, Aug. 2, 2017 /PRNewswire/ -- Huntsman Corporation (NYSE: HUN) announced its subsidiary, Venator Materials PLC ("Venator"), a global chemical company dedicated to the development and manufacture of titanium dioxide ("TiO2") pigments and performance additives, today announced the pricing of its initial public offering ("IPO") of 22,700,000 ordinary shares at an initial offering price of $20.00 per share for total gross proceeds (before underwriters' fees and estimated expenses) of $454 million. All of the ordinary shares will be sold by Huntsman Corporation, and Venator will not receive any proceeds from the offering. Huntsman Corporation has granted the underwriters a 30-day option to purchase up to an additional 3,405,000 ordinary shares. Venator's ordinary shares are expected to be listed, and begin trading, on the New York Stock Exchange on August 3, 2017 under the ticker symbol "VNTR."
Upon closing of the offering, the public will hold approximately 21.4% of Venator's ordinary shares, or 24.6% if the underwriters exercise in full their option to purchase additional ordinary shares. Huntsman will own the remaining 78.6% of Venator's ordinary shares, or 75.4% if the underwriters exercise in full their option to purchase additional ordinary shares.
Citigroup, Goldman Sachs & Co. LLC, BofA Merrill Lynch and J.P. Morgan have acted as lead book-running managers for the offering. Additional book-running managers were Barclays, Deutsche Bank Securities, UBS Investment Bank and RBC Capital Markets. Co-managers were Moelis & Company, HSBC, Nomura, SunTrust Robinson Humphrey, Academy Securities and Commerzbank. The offering of these securities is being made only by means of a prospectus that meets the requirements of Section 10 of the Securities Act of 1933.
Copies of the final prospectus relating to the initial public offering may be obtained, when available, from Citigroup, c/o Broadridge Financial Solutions, 1155 Long Island Avenue, Edgewood, NY 11717 or telephone: (800) 831-9146; Goldman Sachs & Co. LLC, Attn: Prospectus Department, 200 West Street, New York, NY 10282, telephone: (866) 471-2526 or email: prospectus-ny@ny.email.gs.com; BofA Merrill Lynch, NC1-004-03-43, 200 North College Street, 3rd floor, Charlotte, NC 28255-0001, Attn: Prospectus Department or email: dg.prospectus_requests@baml.com; and J.P. Morgan, c/o Broadridge Financial Solutions, 1155 Long Island Avenue, Edgewood, NY 11717 or telephone: (866) 803-9204.
About Huntsman
Huntsman Corporation is a publicly traded global manufacturer and marketer of differentiated chemicals with 2016 revenues of approximately $10 billion. Its chemical products number in the thousands and are sold worldwide to manufacturers serving a broad and diverse range of consumer and industrial end markets. The company has more than 100 manufacturing and R&D facilities in approximately 30 countries and employs approximately 15,000 associates within 5 distinct business divisions.
Important Information
A registration statement relating to these securities has been filed with the SEC but has not yet become effective. These securities may not be sold nor may offers to buy be accepted prior to the time the registration statement becomes effective. The registration statement may be obtained free of charge at the SEC's website at www.sec.gov under "Venator Materials PLC." This press release shall not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of these securities in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to the registration or qualification under the securities laws of any such state or jurisdiction.
Forward Looking Statements:
Statements in this release that are not historical are forward-looking statements. These statements are based on management's current beliefs and expectations. The forward-looking statements in this release are subject to uncertainty and changes in circumstances and involve risks and uncertainties that may affect the company's operations, markets, products, services, prices and other factors as discussed in the Huntsman companies' filings with the U.S. Securities and Exchange Commission. Significant risks and uncertainties may relate to, but are not limited to, volatile global economic conditions, cyclical and volatile product markets, disruptions in production at manufacturing facilities, reorganization or restructuring of Huntsman's operations, any delay of, or other negative developments affecting, the IPO of Venator Materials PLC, the ability to implement cost reductions and manufacturing optimization improvements in Huntsman businesses, to consummate or achieve the expected benefits of the proposed transaction with Clariant and to realize anticipated cost savings, and other financial, economic, competitive, environmental, political, legal, regulatory and technological factors. The company assumes no obligation to provide revisions to any forward-looking statements should circumstances change, except as otherwise required by applicable laws.
View original content with multimedia:http://www.prnewswire.com/news-releases/huntsman-announces-that-venator-prices-its-ipo-300498885.html
SOURCE Huntsman Corporation
Article Date
8/3/20178/3/2017 - Venator Prices IPO
Venator Prices IPO
Source: PR Newswire
Orignial Article: http://www.prnewswire.com...
STOCKTON-ON-TEES, England, Aug. 2, 2017 /PRNewswire/ -- Venator Materials PLC ("Venator"), a global chemical company dedicated to the development and manufacture of titanium dioxide ("TiO2") pigments and performance additives, today announced the pricing of its initial public offering ("IPO") of 22,700,000 ordinary shares at an initial offering price of $20.00 per share for total gross proceeds (before underwriters' fees and estimated expenses) of $454 million. All of the ordinary shares will be sold by Huntsman Corporation, and Venator will not receive any proceeds from the offering. Huntsman Corporation has granted the underwriters a 30-day option to purchase up to an additional 3,405,000 ordinary shares. Venator's ordinary shares are expected to be listed, and begin trading, on the New York Stock Exchange on August 3, 2017 under the ticker symbol "VNTR."
Upon closing of the offering, the public will hold approximately 21.4% of Venator's ordinary shares, or 24.6% if the underwriters exercise in full their option to purchase additional ordinary shares. Huntsman will own the remaining 78.6% of Venator's ordinary shares, or 75.4% if the underwriters exercise in full their option to purchase additional ordinary shares.
Citigroup, Goldman Sachs & Co. LLC, BofA Merrill Lynch and J.P. Morgan have acted as lead book-running managers for the offering. Additional book-running managers were Barclays, Deutsche Bank Securities, UBS Investment Bank and RBC Capital Markets. Co-managers were Moelis & Company, HSBC, Nomura, SunTrust Robinson Humphrey, Academy Securities and Commerzbank. The offering of these securities is being made only by means of a prospectus that meets the requirements of Section 10 of the Securities Act of 1933.
Copies of the final prospectus relating to the initial public offering may be obtained, when available, from Citigroup, c/o Broadridge Financial Solutions, 1155 Long Island Avenue, Edgewood, NY 11717 or telephone: (800) 831-9146; Goldman Sachs & Co. LLC, Attn: Prospectus Department, 200 West Street, New York, NY 10282, telephone: (866) 471-2526 or email: prospectus-ny@ny.email.gs.com; BofA Merrill Lynch, NC1-004-03-43, 200 North College Street, 3rd floor, Charlotte, NC 28255-0001, Attn: Prospectus Department or email: dg.prospectus_requests@baml.com; and J.P. Morgan, c/o Broadridge Financial Solutions, 1155 Long Island Avenue, Edgewood, NY 11717 or telephone: (866) 803-9204.
About Venator
Venator is a global manufacturer and marketer of chemical products that comprise a broad range of pigments and additives that bring color and vibrancy to buildings, protect and extend product life, and reduce energy consumption. We market our products globally to a diversified group of industrial customers through two segments: Titanium Dioxide, which consists of our TiO2 business, and Performance Additives, which consists of our functional additives, color pigments, timber treatment and water treatment businesses. We operate 27 facilities, employ approximately 4,500 associates worldwide and sell our products in more than 110 countries.
Important Information
A registration statement relating to these securities has been filed with the Securities and Exchange Commission (the "SEC") and has been declared effective. A copy of the prospectus may be obtained free of charge at the SEC's website at www.sec.gov under "Venator Materials PLC." This press release shall not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of these securities in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to the registration or qualification under the securities laws of any such state or jurisdiction.
Cautionary Statement Concerning Forward-Looking Statements
Certain statements contained in this press release constitute "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements represent Venator's expectations or beliefs concerning future events, and it is possible that the results described in this press release will not be achieved. These forward-looking statements are subject to risks, uncertainties and other factors, many of which are outside of Venator's control, that could cause actual results to differ materially from the results discussed in the forward-looking statements.
Any forward-looking statement speaks only as of the date on which it is made, and, except as required by law, Venator does not undertake any obligation to update or revise any forward-looking statement, whether as a result of new information, future events or otherwise. New factors emerge from time to time, and it is not possible for Venator to predict all such factors. When considering these forward-looking statements, you should keep in mind the risk factors and other cautionary statements in the prospectus filed with the SEC in connection with Venator's initial public offering. The risk factors and other factors noted in Venator's prospectus could cause its actual results to differ materially from those contained in any forward-looking statement.
View original content:http://www.prnewswire.com/news-releases/venator-prices-ipo-300498886.html
SOURCE Huntsman Corporation
Article Date
8/3/20177/27/2017 - Huntsman Announces Second Quarter 2017 Results; Strong Earnings Growth and Operating Cash Flow
Huntsman Announces Second Quarter 2017 Results; Strong Earnings Growth and Operating Cash Flow
Source: PR Newswire
THE WOODLANDS, Texas, July 27, 2017 /PRNewswire/ --
Second Quarter 2017 Highlights
|
Three months ended |
Six months ended | |||||||||
|
June 30, |
March 31, |
June 30, | ||||||||
|
In millions, except per share amounts |
2017 |
2016 |
2017 |
2017 |
2016 | |||||
|
Revenues |
$2,616 |
$2,544 |
$ 2,469 |
$5,085 |
$4,899 | |||||
|
Pro forma revenues(2) |
$2,616 |
$2,485 |
$ 2,469 |
$5,085 |
$4,779 | |||||
|
Net income |
$ 183 |
$ 94 |
$ 92 |
$ 275 |
$ 156 | |||||
|
Adjusted net income(1) |
$ 206 |
$ 126 |
$ 139 |
$ 345 |
$ 214 | |||||
|
Diluted income per share |
$ 0.69 |
$ 0.36 |
$ 0.31 |
$ 1.00 |
$ 0.60 | |||||
|
Adjusted diluted income per share(1) |
$ 0.85 |
$ 0.53 |
$ 0.57 |
$ 1.42 |
$ 0.90 | |||||
|
Adjusted EBITDA(1) |
$ 413 |
$ 325 |
$ 329 |
$ 742 |
$ 599 | |||||
|
Pro forma adjusted EBITDA(2) |
$ 413 |
$ 317 |
$ 329 |
$ 742 |
$ 584 | |||||
|
Net cash provided by operating activities |
$ 301 |
$ 355 |
$ 93 |
$ 394 |
$ 443 | |||||
|
Free cash flow(3) |
$ 251 |
$ 282 |
$ 82 |
$ 333 |
$ 269 | |||||
|
See end of press release for footnote explanations |
Huntsman Corporation (NYSE: HUN) today reported second quarter 2017 results with revenues of $2,616 million, net income of $183 million and adjusted EBITDA of $413 million.
Peter R. Huntsman, our President and CEO, commented:
"I am very pleased with the progress made in the second quarter. Our businesses continue to benefit from solid underlying fundamentals, enhanced free cash flow generation, and our downstream strategy. We are on pace to achieve earnings growth in each of our business segments in 2017. I see continued room for further improvement. Our downstream differentiated businesses continue to do well with MDI urethanes delivering a strong performance. Performance Products continues to recover off of a difficult 2016 and for the first time since 2015 showed growth versus the prior year. We realized $251 million of free cash flow in the second quarter and $333 million year to date. We target generating in excess of $150 million of free cash flow in the second half, excluding Pigments and Additives. When combining what we have achieved year to date with the remaining year expectation which excludes Pigments and Additives, we are on track to exceed the previously communicated 2017 full year free cash flow target of greater than $450 million. We have repaid $265 million of debt year to date, including an early repayment of $100 million made yesterday.
"This is an unprecedented and transformational time for our Company. This week we launched the initial public offering of Venator, our Pigments and Additives business, the proceeds of which will be used to reduce our debt. Furthermore, having begun our integration planning with Clariant, we are now more confident than ever in our ability to exceed our stated synergy targets, seamlessly integrate these two complementary organizations and create significant value for the combined company's shareholders.
"Since announcing the transaction, we continue to identify additional integration and complementary geographical opportunities that will allow us to strengthen further our combined businesses including exposure to new downstream markets. We are highly confident in our ability to exceed $400 million in annual cost synergies and another $25 million in tax savings. This will create in excess of $3.5 billion of value for shareholders which does not give credit to the existing and meaningful commercial opportunities. Our combined balance sheet with pro-forma leverage of under 1.5x will provide great flexibility for growth and enhanced capital return. This transaction is compelling from every aspect and offers significant value creation opportunity to shareholders. We are highly confident that shareholders will support the transaction as we work to close near year end."
Segment Analysis for 2Q17 Compared to 2Q16
Polyurethanes
The increase in revenues in our Polyurethanes segment for the three months ended June 30, 2017 compared to the same period of 2016 was primarily due to higher average selling prices, partially offset by lower sales volumes. MDI average selling prices increased in response to higher raw material costs and continued strong market conditions. MTBE average selling prices increased primarily as a result of higher pricing for high octane gasoline. MDI and MTBE sales volumes decreased due to the impact of maintenance outages during the second quarter of 2017. The decrease in segment adjusted EBITDA was primarily due to lower MTBE earnings and the impact of maintenance outages, partially offset by higher MDI margins.
Performance Products
The decrease in revenues in our Performance Products segment for the three months ended June 30, 2017 compared to the same period of 2016 was due to lower sales volumes principally because of the sale of the European surfactants business to Innospec Inc. on December 30, 2016, partially offset by higher sales volumes in our remaining businesses as well as higher average selling prices. Average selling prices increased primarily in response to higher raw material costs and favorable change in product mix partially from the sale of the European surfactants business. The increase in segment adjusted EBITDA was primarily due to higher sales volumes in our remaining businesses and lower fixed costs.
Advanced Materials
Revenues in our Advanced Materials segment for the three months ended June 30, 2017 compared to the same period of 2016 remained relatively unchanged as unfavorable product mix was offset by higher sales volumes. Sales volumes increased primarily due to strong growth in the wind market and the Asian electronics and electrical markets, partially offset by our withdrawal from certain low margin business. The decrease in segment adjusted EBITDA was primarily due to higher raw material costs, partially offset by lower fixed costs.
Textile Effects
The increase in revenues in our Textile Effects segment for the three months ended June 30, 2017 compared to the same period of 2016 was due to higher sales volumes, partially offset by lower average selling prices. Sales volumes increased in both textile chemicals and dyes, particularly in our Asia region. Average selling prices decreased modestly primarily due to competitive market conditions. Segment adjusted EBITDA remained relatively unchanged as lower fixed costs were offset by lower margins.
Pigments and Additives
The decrease in revenues in the Pigments and Additives division for the three months ended June 30, 2017 compared to the same period in 2016 was due to lower sales volumes, partially offset by higher average selling prices. Sales volumes decreased as a result of the fire at our Pori, Finland manufacturing facility. Average selling prices increased primarily due to improved business conditions for titanium dioxide. The increase in segment adjusted EBITDA was primarily due to higher average selling prices for titanium dioxide and lower costs resulting from restructuring savings. The fire at our Pori facility did not have a material impact on segment adjusted EBITDA as the reduction in adjusted EBITDA was offset by the receipt of business interruption insurance proceeds.
Corporate, LIFO and other
For the three months ended June 30, 2017, segment adjusted EBITDA decreased by $5 million to a loss of $50 million from a loss of $45 million for the same period in 2016. The decrease in segment adjusted EBITDA from Corporate and other resulted primarily from an increase in loss from benzene sales, partially offset by an increase in unallocated foreign currency exchange gain and a decrease in LIFO inventory valuation expense.
Separation Update
Venator launched its initial public offering on July 24, 2017. In preparation for this, earlier this month Venator raised $750 million in debt, which included $375 million in bonds and $375 million in term loans. Additionally, Venator will have a $300 million committed line through a secured asset back facility. Upon completion of the IPO, net proceeds from the offering and Venator debt will be used to reduce Huntsman indebtedness and to pay related fees and expenses. During the third quarter of 2017, it is intended that our interest in Venator will be treated as "Held for Sale", and, therefore, as discontinued operations on the income statement, and its earnings will be excluded from our adjusted EBITDA starting with our third quarter results.
Liquidity, Capital Resources and Outstanding Debt
As of June 30, 2017, we had $1,293 million of combined cash and unused borrowing capacity compared to $1,208 million as of December 31, 2016. Year to date, including the $100 million early repayment of debt made on our term loans yesterday, we have repaid $265 million of debt.
During the six months ended June 30, 2017, net of capital reimbursements we spent $146 million on capital expenditures compared to $162 million in 2016. Including Pigments and Additives, we expect to spend approximately $380 million on capital expenditures in 2017, net of capital reimbursements.
Income Taxes
During the three months ended June 30, 2017, we recorded income tax expense of $45 million. During the same period, we had net cash income tax receipts of $65 million largely because of a $90 million refund received in the second quarter.
In the second quarter 2017, our adjusted effective tax rate was 19%. We expect our 2017 adjusted effective tax rate to be approximately 20% - 25% and our long term adjusted effective tax rate to be approximately 25% - 28%.
Earnings Conference Call Information
We will hold a conference call to discuss our second quarter 2017 financial results on Thursday, July 27, 2017 at 10:00 a.m. ET.
|
Call-in numbers for the conference call: | |
|
U.S. participants |
(888) 713 - 4211 |
|
International participants |
(617) 213 - 4864 |
|
Passcode |
244 268 82# |
In order to facilitate the registration process, you may use the following link to pre-register for the conference call. Callers who pre-register will be given a unique PIN to gain immediate access to the call and bypass the live operator. You may pre-register at any time, including up to and after the call start time. To pre-register, please go to: https://www.theconferencingservice.com/prereg/key.process?key=PEW6BPNM6 .
Webcast Information
The conference call will be available via webcast and can be accessed from the company's website at ir.huntsman.com.
Replay Information
The conference call will be available for replay beginning July 27, 2017 and ending August 3, 2017.
|
Call-in numbers for the replay: | |
|
U.S. participants |
(888) 286 - 8010 |
|
International participants |
(617) 801 - 6888 |
|
Replay code |
29385180 |
Upcoming Conferences
During the third quarter a member of management is expected to present at the Jefferies Industrials Conference on August 9, 2017, the UBS Best in America Conference on September 7, 2017 and KeyBanc Basic Materials Conference on September 13, 2017. A webcast of the presentation, if applicable, along with accompanying materials will be available at ir.huntsman.com.
|
Table 1 -- Results of Operations | ||||||||
|
Three months ended |
Six months ended | |||||||
|
June 30, |
June 30, | |||||||
|
In millions, except per share amounts |
2017 |
2016 |
2017 |
2016 | ||||
|
Revenues |
$2,616 |
$2,544 |
$5,085 |
$4,899 | ||||
|
Cost of goods sold |
2,095 |
2,087 |
4,098 |
4,026 | ||||
|
Gross profit |
521 |
457 |
987 |
873 | ||||
|
Operating expenses |
218 |
252 |
477 |
517 | ||||
|
Restructuring, impairment and plant closing costs |
10 |
29 |
46 |
42 | ||||
|
Business separation expenses |
12 |
- |
21 |
- | ||||
|
Expenses associated with the merger |
6 |
- |
6 |
- | ||||
|
Operating income |
275 |
176 |
437 |
314 | ||||
|
Interest expense |
(47) |
(50) |
(95) |
(100) | ||||
|
Equity in income of investment in unconsolidated affiliates |
3 |
2 |
3 |
3 | ||||
|
Loss on early extinguishment of debt |
(1) |
(2) |
(1) |
(2) | ||||
|
Other (expense) income |
(1) |
1 |
1 |
2 | ||||
|
Income before income taxes |
229 |
127 |
345 |
217 | ||||
|
Income tax expense |
(45) |
(32) |
(68) |
(59) | ||||
|
Income from continuing operations |
184 |
95 |
277 |
158 | ||||
|
Loss from discontinued operations, net of tax(3) |
(1) |
(1) |
(2) |
(2) | ||||
|
Net income |
183 |
94 |
275 |
156 | ||||
|
Net income attributable to noncontrolling interests, net of tax |
(16) |
(7) |
(32) |
(13) | ||||
|
Net income attributable to Huntsman Corporation |
$ 167 |
$ 87 |
$ 243 |
$ 143 | ||||
|
Adjusted EBITDA(1) |
$ 413 |
$ 325 |
$ 742 |
$ 599 | ||||
|
Adjusted net income(1) |
$ 206 |
$ 126 |
$ 345 |
$ 214 | ||||
|
Basic income per share |
$ 0.70 |
$ 0.37 |
$ 1.02 |
$ 0.61 | ||||
|
Diluted income per share |
$ 0.69 |
$ 0.36 |
$ 1.00 |
$ 0.60 | ||||
|
Adjusted diluted income per share(1) |
$ 0.85 |
$ 0.53 |
$ 1.42 |
$ 0.90 | ||||
|
Common share information: |
||||||||
|
Basic shares outstanding |
238 |
236 |
238 |
236 | ||||
|
Diluted shares |
244 |
240 |
243 |
238 | ||||
|
Diluted shares for adjusted diluted income per share |
244 |
240 |
243 |
238 | ||||
|
See end of press release for footnote explanations |
|
Table 2 -- Results of Operations by Segment | ||||||||||||
|
Three months ended |
Six months ended |
|||||||||||
|
June 30, |
Better / |
June 30, |
Better / | |||||||||
|
In millions |
2017 |
2016 |
(Worse) |
2017 |
2016 |
(Worse) | ||||||
|
Segment Revenues: |
||||||||||||
|
Polyurethanes |
$1,022 |
$ 976 |
5% |
$1,975 |
$1,812 |
9% | ||||||
|
Performance Products |
561 |
566 |
(1)% |
1,094 |
1,102 |
(1)% | ||||||
|
Performance Products, pro forma(2) |
561 |
507 |
11% |
1,094 |
982 |
11% | ||||||
|
Advanced Materials |
260 |
261 |
0% |
519 |
527 |
(2)% | ||||||
|
Textile Effects |
205 |
198 |
4% |
393 |
383 |
3% | ||||||
|
Pigments & Additives |
562 |
576 |
(2)% |
1,099 |
1,116 |
(2)% | ||||||
|
Corporate and eliminations |
6 |
(33) |
n/m |
5 |
(41) |
n/m | ||||||
|
Total |
$2,616 |
$2,544 |
3% |
$5,085 |
$4,899 |
4% | ||||||
|
Total, pro forma(2) |
$2,616 |
$2,485 |
5% |
$5,085 |
$4,779 |
6% | ||||||
|
Segment Adjusted EBITDA(1): |
||||||||||||
|
Polyurethanes |
$ 167 |
$ 171 |
(2)% |
$ 311 |
$ 302 |
3% | ||||||
|
Performance Products |
102 |
86 |
19% |
186 |
178 |
4% | ||||||
|
Performance Products, pro forma(2) |
102 |
78 |
31% |
186 |
163 |
14% | ||||||
|
Advanced Materials |
56 |
58 |
(3)% |
110 |
118 |
(7)% | ||||||
|
Textile Effects |
24 |
24 |
0% |
45 |
42 |
7% | ||||||
|
Pigments & Additives |
114 |
31 |
268% |
183 |
46 |
298% | ||||||
|
Corporate, LIFO and other |
(50) |
(45) |
(11)% |
(93) |
(87) |
(7)% | ||||||
|
Total |
$ 413 |
$ 325 |
27% |
$ 742 |
$ 599 |
24% | ||||||
|
Total, pro forma(2) |
$ 413 |
$ 317 |
30% |
$ 742 |
$ 584 |
27% | ||||||
|
n/m = not meaningful |
||||||||||||
|
See end of press release for footnote explanations |
||||||||||||
|
Table 3 -- Factors Impacting Sales Revenue | |||||||||||
|
Three months ended |
|||||||||||
|
June 30, 2017 vs. 2016 |
|||||||||||
|
Average Selling Price(a) |
|||||||||||
|
Local Currency |
Exchange Rate |
Sales Mix & Other |
Sales Volume(b) |
||||||||
|
Total |
|||||||||||
|
Polyurethanes |
15% |
(2)% |
10% |
(18)% |
5% |
||||||
|
Polyurethanes, adj |
15% |
(2)% |
7% |
(8)% |
12% |
(e) | |||||
|
Performance Products |
6% |
(1)% |
0% |
(6)% |
(1)% |
||||||
|
Performance Products, adj |
3% |
(1)% |
0% |
9% |
11% |
(c) | |||||
|
Advanced Materials |
1% |
(1)% |
(2)% |
2% |
0% |
||||||
|
Textile Effects |
(2)% |
(1)% |
1% |
6% |
4% |
||||||
|
Pigments & Additives |
12% |
(2)% |
(1)% |
(11)% |
(2)% |
||||||
|
Pigments & Additives, adj |
14% |
(2)% |
(1)% |
(1)% |
10% |
(d) | |||||
|
Total Company |
9% |
(1)% |
7% |
(12)% |
3% |
||||||
|
Total Company, adj |
9% |
(1)% |
5% |
(1)% |
12% |
(c)(d)(e) | |||||
|
Six months ended |
|||||||||||
|
June 30, 2017 vs. 2016 |
|||||||||||
|
Average Selling Price(a) |
|||||||||||
|
Local Currency |
Exchange Rate |
Sales Mix & Other |
Sales Volume(b) |
||||||||
|
Total |
|||||||||||
|
Polyurethanes |
13% |
(2)% |
7% |
(9)% |
9% |
||||||
|
Polyurethanes, adj |
14% |
(2)% |
5% |
(4)% |
13% |
(e) | |||||
|
Performance Products |
5% |
(1)% |
1% |
(6)% |
(1)% |
||||||
|
Performance Products, adj |
1% |
(1)% |
2% |
10% |
12% |
(c) | |||||
|
Advanced Materials |
0% |
(1)% |
0% |
(1)% |
(2)% |
||||||
|
Textile Effects |
(2)% |
(1)% |
(2)% |
8% |
3% |
||||||
|
Pigments & Additives |
11% |
(2)% |
(2)% |
(9)% |
(2)% |
||||||
|
Pigments & Additives, adj |
12% |
(2)% |
(2)% |
(1)% |
7% |
(d) | |||||
|
Total Company |
8% |
(1)% |
5% |
(8)% |
4% |
||||||
|
Total Company, adj |
8% |
(1)% |
3% |
0% |
10% |
(c)(d)(e) | |||||
|
(a) Excludes sales from tolling arrangements, by-products and raw materials. |
|||||||||||
|
(b) Excludes sales from by-products and raw materials. |
|||||||||||
|
(c) Pro forma adjusted to exclude the sale of the European differentiated surfactants on December 30, 2016. |
|||||||||||
|
(d) Pro forma adjusted to exclude the impact from the fire at our Pori, Finland facility. |
|||||||||||
|
(e) Pro forma adjusted to exclude the impact from maintenance outages in 2Q17. |
|||||||||||
|
Table 4 -- Reconciliation of U.S. GAAP to Non-GAAP Measures |
|||||||||||||||||
|
Income Tax |
Diluted Income |
||||||||||||||||
|
EBITDA |
Expense |
Net Income |
Per Share |
||||||||||||||
|
Three months ended |
Three months ended |
Three months ended |
Three months ended |
||||||||||||||
|
June 30, |
June 30, |
June 30, |
June 30, |
||||||||||||||
|
In millions, except per share amounts |
2017 |
2016 |
2017 |
2016 |
2017 |
2016 |
2017 |
2016 |
|||||||||
|
Net income |
$ 183 |
$ 94 |
$ 183 |
$ 94 |
$ 0.75 |
$ 0.39 |
|||||||||||
|
Net income attributable to noncontrolling interests |
(16) |
(7) |
(16) |
(7) |
(0.07) |
(0.03) |
|||||||||||
|
Net income attributable to Huntsman Corporation |
167 |
87 |
167 |
87 |
0.69 |
0.36 |
|||||||||||
|
Interest expense |
47 |
50 |
|||||||||||||||
|
Income tax expense from continuing operations |
45 |
32 |
(45) |
(32) |
|||||||||||||
|
Income tax benefit from discontinued operations(4) |
- |
- |
|||||||||||||||
|
Depreciation and amortization |
108 |
109 |
|||||||||||||||
|
Acquisition and integration expenses |
4 |
4 |
- |
- |
4 |
4 |
0.02 |
0.02 |
|||||||||
|
Loss from discontinued operations, net of tax(4) |
1 |
1 |
N/A |
N/A |
1 |
1 |
- |
- |
|||||||||
|
Gain on disposition of businesses/assets |
(9) |
- |
- |
- |
(9) |
- |
(0.04) |
- |
|||||||||
|
Loss on early extinguishment of debt |
1 |
2 |
- |
(1) |
1 |
1 |
- |
- |
|||||||||
|
Expenses associated with merger, net of tax |
6 |
- |
- |
- |
6 |
- |
0.02 |
- |
|||||||||
|
Certain legal settlements and related expenses |
1 |
- |
- |
- |
1 |
- |
- |
- |
|||||||||
|
Net plant incident credits |
(2) |
(7) |
- |
1 |
(2) |
(6) |
(0.01) |
(0.03) |
|||||||||
|
Business separation costs |
12 |
- |
(2) |
- |
10 |
- |
0.04 |
- |
|||||||||
|
Amortization of pension and postretirement actuarial losses |
22 |
17 |
(4) |
(3) |
18 |
14 |
0.07 |
0.06 |
|||||||||
|
Restructuring, impairment and plant closing costs |
10 |
30 |
(1) |
(5) |
9 |
25 |
0.04 |
0.10 |
|||||||||
|
Adjusted(1) |
$ 413 |
$ 325 |
$ (52) |
$ (40) |
$ 206 |
$ 126 |
$ 0.85 |
$ 0.53 |
|||||||||
|
Pro forma adjustments(2) |
- |
$ (8) |
|||||||||||||||
|
Pro forma adjusted EBITDA(1) |
$ 413 |
$ 317 |
|||||||||||||||
|
Adjusted income tax expense(1) |
$ 52 |
$ 40 |
|||||||||||||||
|
Net income attributable to noncontrolling interests, net of tax |
16 |
7 |
|||||||||||||||
|
Adjusted pre-tax income(1) |
$ 274 |
$ 173 |
|||||||||||||||
|
Adjusted effective tax rate |
19% |
23% |
|||||||||||||||
|
Income Tax |
Diluted Income |
||||||||||||||||
|
EBITDA |
Expense |
Net Income |
Per Share |
||||||||||||||
|
Three months ended |
Three months ended |
Three months ended |
Three months ended |
||||||||||||||
|
March 31, |
March 31, |
March 31, |
March 31, |
||||||||||||||
|
In millions, except per share amounts |
2017 |
2017 |
2017 |
2017 |
|||||||||||||
|
Net income |
$ 92 |
$ 92 |
$ 0.38 |
||||||||||||||
|
Net income attributable to noncontrolling interests |
(16) |
(16) |
(0.07) |
||||||||||||||
|
Net income attributable to Huntsman Corporation |
76 |
76 |
0.31 |
||||||||||||||
|
Interest expense |
48 |
||||||||||||||||
|
Income tax expense from continuing operations |
23 |
(23) |
|||||||||||||||
|
Income tax benefit from discontinued operations(4) |
(1) |
||||||||||||||||
|
Depreciation and amortization |
106 |
||||||||||||||||
|
Acquisition and integration expenses |
3 |
- |
3 |
0.01 |
|||||||||||||
|
Loss from discontinued operations, net of tax(4) |
2 |
N/A |
1 |
- |
|||||||||||||
|
Net plant incident costs |
5 |
(1) |
4 |
0.02 |
|||||||||||||
|
Business separation costs |
9 |
(2) |
7 |
0.03 |
|||||||||||||
|
Amortization of pension and postretirement actuarial losses |
22 |
(4) |
18 |
0.07 |
|||||||||||||
|
Restructuring, impairment and plant closing costs |
36 |
(6) |
30 |
0.12 |
|||||||||||||
|
Adjusted(1) |
$ 329 |
$ (36) |
$ 139 |
$ 0.57 |
|||||||||||||
|
Pro forma adjustments(2) |
- |
||||||||||||||||
|
Pro forma adjusted EBITDA(1) |
$ 329 |
||||||||||||||||
|
Adjusted income tax expense(1) |
$ 36 |
||||||||||||||||
|
Net income attributable to noncontrolling interests, net of tax |
16 |
||||||||||||||||
|
Adjusted pre-tax income(1) |
$ 191 |
||||||||||||||||
|
Adjusted effective tax rate |
19% |
||||||||||||||||
|
Income Tax |
Diluted Income |
||||||||||||||||
|
EBITDA |
(Expense) Benefit |
Net Income |
Per Share |
||||||||||||||
|
Six months ended |
Six months ended |
Six months ended |
Six months ended |
||||||||||||||
|
June 30, |
June 30, |
June 30, |
June 30, |
||||||||||||||
|
In millions, except per share amounts |
2017 |
2016 |
2017 |
2016 |
2017 |
2016 |
2017 |
2016 |
|||||||||
|
Net income |
$ 275 |
$ 156 |
$ 275 |
$ 156 |
$ 1.13 |
$ 0.66 |
|||||||||||
|
Net income attributable to noncontrolling interests |
(32) |
(13) |
(32) |
(13) |
(0.13) |
(0.05) |
|||||||||||
|
Net income attributable to Huntsman Corporation |
243 |
143 |
243 |
143 |
1.00 |
0.60 |
|||||||||||
|
Interest expense |
95 |
100 |
|||||||||||||||
|
Income tax expense from continuing operations |
68 |
59 |
(68) |
(59) |
|||||||||||||
|
Income tax benefit from discontinued operations(4) |
(1) |
(1) |
|||||||||||||||
|
Depreciation and amortization |
214 |
209 |
|||||||||||||||
|
Acquisition and integration expenses |
7 |
13 |
- |
(3) |
7 |
10 |
0.03 |
0.04 |
|||||||||
|
Loss from discontinued operations, net of tax(4) |
3 |
3 |
N/A |
N/A |
2 |
2 |
0.01 |
0.01 |
|||||||||
|
Gain on disposition of businesses/assets |
(9) |
- |
- |
- |
(9) |
- |
(0.04) |
- |
|||||||||
|
Loss on early extinguishment of debt |
1 |
2 |
- |
(1) |
1 |
1 |
- |
- |
|||||||||
|
Expenses associated with merger |
6 |
- |
N/A |
N/A |
6 |
- |
0.02 |
- |
|||||||||
|
Certain legal settlements and related expenses |
1 |
1 |
- |
- |
1 |
1 |
- |
- |
|||||||||
|
Net plant incident costs (credits) |
3 |
(6) |
(1) |
1 |
2 |
(5) |
0.01 |
(0.02) |
|||||||||
|
Business separation costs |
21 |
- |
(4) |
- |
17 |
- |
0.07 |
- |
|||||||||
|
Amortization of pension and postretirement actuarial losses |
44 |
33 |
(8) |
(6) |
36 |
27 |
0.15 |
0.11 |
|||||||||
|
Restructuring, impairment and plant closing costs |
46 |
43 |
(7) |
(8) |
39 |
35 |
0.16 |
0.15 |
|||||||||
|
Adjusted(1) |
$ 742 |
$ 599 |
$ (88) |
$ (76) |
# |
$ 345 |
$ 214 |
$ 1.42 |
$ 0.90 |
||||||||
|
Pro forma adjustments(2) |
- |
$ (15) |
|||||||||||||||
|
Pro forma adjusted EBITDA(1) |
$ 742 |
$ 584 |
|||||||||||||||
|
Adjusted income tax expense(1) |
$ 88 |
$ 76 |
|||||||||||||||
|
Net income attributable to noncontrolling interests, net of tax |
32 |
13 |
|||||||||||||||
|
Adjusted pre-tax income(1) |
$ 465 |
$ 303 |
|||||||||||||||
|
Adjusted effective tax rate |
19% |
25% |
|||||||||||||||
|
See end of press release for footnote explanations |
|
Table 5 -- Selected Balance Sheet Items | |||||||
|
June 30, |
March 31, |
December 31, | |||||
|
In millions |
2017 |
2017 |
2016 | ||||
|
Cash |
$ 520 |
$ 469 |
$ 425 | ||||
|
Accounts and notes receivable, net |
1,629 |
1,508 |
1,435 | ||||
|
Inventories |
1,520 |
1,486 |
1,344 | ||||
|
Other current assets |
311 |
372 |
351 | ||||
|
Property, plant and equipment, net |
4,228 |
4,186 |
4,212 | ||||
|
Other assets |
1,480 |
1,467 |
1,422 | ||||
|
Total assets |
$ 9,688 |
$ 9,488 |
$ 9,189 | ||||
|
Accounts payable |
$ 1,170 |
$ 1,162 |
$ 1,102 | ||||
|
Other current liabilities |
669 |
632 |
616 | ||||
|
Current portion of debt |
44 |
61 |
60 | ||||
|
Long-term debt |
4,072 |
4,161 |
4,135 | ||||
|
Other liabilities |
1,855 |
1,823 |
1,809 | ||||
|
Total equity |
1,878 |
1,649 |
1,467 | ||||
|
Total liabilities and equity |
$ 9,688 |
$ 9,488 |
$ 9,189 | ||||
|
Table 6 -- Outstanding Debt | ||||
|
June 30, |
December 31, | |||
|
In millions |
2017 |
2016 | ||
|
Debt: |
||||
|
Senior credit facilities |
$ 1,862 |
$ 1,967 | ||
|
Accounts receivable programs |
181 |
208 | ||
|
Senior notes |
1,884 |
1,812 | ||
|
Variable interest entities |
125 |
128 | ||
|
Other debt |
64 |
80 | ||
|
Total debt - excluding affiliates |
4,116 |
4,195 | ||
|
Total cash |
520 |
425 | ||
|
Net debt- excluding affiliates |
$ 3,596 |
$ 3,770 | ||
|
Table 7 -- Summarized Statement of Cash Flows |
|||||||||
|
Three months ended |
Six months ended |
||||||||
|
June 30, |
June 30, |
||||||||
|
In millions |
2017 |
2016 |
2017 |
2016 |
|||||
|
Total cash at beginning of period(a) |
$ 469 |
$218 |
$ 425 |
$ 269 |
|||||
|
Net cash provided by operating activities |
301 |
355 |
394 |
443 |
|||||
|
Net cash used in investing activities |
(59) |
(73) |
(83) |
(174) |
|||||
|
Net cash used in financing activities |
(193) |
(115) |
(224) |
(153) |
|||||
|
Effect of exchange rate changes on cash |
3 |
(2) |
8 |
- |
|||||
|
Change in restricted cash |
(1) |
- |
- |
(2) |
|||||
|
- |
|||||||||
|
Total cash at end of period(a) |
$ 520 |
$383 |
$ 520 |
$ 383 |
|||||
|
Supplemental cash flow information: |
|||||||||
|
Cash paid for interest |
$ (56) |
$ (68) |
$ (92) |
$(103) |
|||||
|
Cash received (paid) for income taxes |
65 |
(16) |
57 |
(21) |
|||||
|
Cash paid for capital expenditures |
(73) |
(90) |
(147) |
(189) |
|||||
|
Depreciation and amortization |
108 |
109 |
214 |
209 |
|||||
|
- |
|||||||||
|
Changes in primary working capital: |
|||||||||
|
Accounts and notes receivable |
$ (91) |
$ 15 |
$(148) |
$ (90) |
|||||
|
Inventories |
(15) |
155 |
(125) |
177 |
|||||
|
Accounts payable |
(4) |
(25) |
73 |
(56) |
|||||
|
Total cash (used in) provided by primary working capital |
$ (110) |
$145 |
$(200) |
$ 31 |
|||||
|
Three months ended |
Six months ended |
||||||||
|
June 30, |
June 30, |
||||||||
|
2017 |
2016 |
2017 |
2016 |
||||||
|
Free cash flow(3): |
|||||||||
|
Net cash provided by operating activities |
$ 301 |
$355 |
$ 394 |
$ 443 |
|||||
|
Capital expenditures |
(73) |
(90) |
(147) |
(189) |
|||||
|
All other investing activities, excluding acquisition and disposition activities(b) |
9 |
17 |
59 |
15 |
|||||
|
Non-recurring separation costs(c) |
14 |
- |
27 |
- |
|||||
|
Total free cash flow |
$ 251 |
$282 |
$ 333 |
$ 269 |
|||||
|
Adjusted EBITDA |
$ 413 |
$325 |
$ 742 |
$ 599 |
|||||
|
Capital expenditures |
(73) |
(90) |
(147) |
(189) |
|||||
|
Capital reimbursements |
- |
27 |
1 |
27 |
|||||
|
Insurance reimbursements |
(4) |
- |
50 |
- |
|||||
|
Interest |
(56) |
(68) |
(92) |
(103) |
|||||
|
Income taxes |
65 |
(16) |
57 |
(21) |
|||||
|
Primary working capital change |
(110) |
145 |
(200) |
31 |
|||||
|
Restructuring |
(16) |
(36) |
(35) |
(56) |
|||||
|
Pensions |
(31) |
(23) |
(55) |
(45) |
|||||
|
Maintenance & other |
63 |
18 |
12 |
26 |
|||||
|
Total free cash flow(3) |
$ 251 |
$282 |
$ 333 |
$ 269 |
|||||
|
(a) Includes restricted cash. |
|||||||||
|
(b) Represents "Acquisition of business, net of cash acquired", "Cash received from purchase price adjustment for business acquired", and "Proceeds from sale of business/assets". | |||||||||
|
(c) Represents payments associated with one-time costs of the proposed separation of our Pigments & Additives business. | |||||||||
|
Footnotes | |
|
(1) |
We use adjusted EBITDA to measure the operating performance of our business and for planning and evaluating the performance of our business segments. We provide adjusted net income because we feel it provides meaningful insight for the investment community into the performance of our business. We believe that net income (loss) is the performance measure calculated and presented in accordance with generally accepted accounting principles in the U.S. ("GAAP") that is most directly comparable to adjusted EBITDA and adjusted net income. Additional information with respect to our use of each of these financial measures follows: |
|
Adjusted EBITDA, adjusted net income (loss) and adjusted diluted income (loss) per share, as used herein, are not necessarily comparable to other similarly titled measures of other companies. | |
|
Adjusted EBITDA is computed by eliminating the following from net income (loss): (a) net income attributable to noncontrolling interests, net of tax; (b) interest; (c) income taxes; (d) depreciation and amortization; (e) acquisition and integration expenses; (f) EBITDA from discontinued operations; (g) loss (gain) on disposition of businesses/assets; (h) loss on early extinguishment of debt; (i) expenses associated with merger; (j) certain legal settlements and related expenses (k) net plant incident costs (credits); (l) business separation costs; (m) amortization of pension and postretirement actuarial losses (gains); and (n) restructuring, impairment and plant closing costs (credits). The reconciliation of adjusted EBITDA to net income (loss) is set forth in Table 4 above. | |
|
Adjusted net income (loss) and adjusted diluted income (loss) per share are computed by eliminating the after tax impact of the following items from net income (loss: (a) net income attributable to noncontrolling interest; (b) acquisition and integration expenses, purchase accounting adjustments; (c) impact of certain foreign tax credit elections; (d) loss (income) from discontinued operations; (e) discount amortization on settlement financing associated with the terminated merger; (f) loss (gain) on disposition of businesses/assets; (g) loss on early extinguishment of debt; (h) expenses associated with the merger; (i) certain legal settlements and related expenses; (j) net plant incident costs (credits); (k) business separation costs; (l) amortization of pension and postretirement actuarial losses (gains); and (m) restructuring, impairment and plant closing costs (credits). The income tax impacts, if any, of each adjusting item represent a ratable allocation of the total difference between the unadjusted tax expense and the total adjusted tax expense, computed without consideration of any adjusting items using a with and without approach. We do not adjust for changes in tax valuation allowances because we do not believe it provides more meaningful information than is provided under GAAP. The reconciliation of adjusted net income (loss) to net income (loss) is set forth in Table 4 above. | |
|
(2) |
Pro forma adjusted to exclude the sale of our European differentiated surfactants business to Innospec on December 30, 2016 as if it had occurred at the beginning of the relevant period. |
|
(3) |
Management internally uses a free cash flow measure: (a) to evaluate the Company's liquidity, (b) to evaluate strategic investments, (c) to plan stock buyback and dividend levels and (d) to evaluate the Company's ability to incur and service debt. Free cash flow is not a defined term under U.S. GAAP, and it should not be inferred that the entire free cash flow amount is available for discretionary expenditures. The Company defines free cash flow as cash flow provided by operating activities less cash flow used in investing activities, excluding acquisition/disposition activities and non-recurring separation costs. Free cash flow is typically derived directly from the Company's condensed consolidated statement of cash flows; however, it may be adjusted for items that affect comparability between periods. |
|
(4) |
During the first quarter 2010 we closed our Australian styrenics operations; results from associated business are treated as discontinued operations. |
About Huntsman:
Huntsman Corporation is a publicly traded global manufacturer and marketer of differentiated chemicals with 2016 revenues of approximately $10 billion. Our chemical products number in the thousands and are sold worldwide to manufacturers serving a broad and diverse range of consumer and industrial end markets. We operate more than 100 manufacturing and R&D facilities in approximately 30 countries and employ approximately 15,000 associates within our 5 distinct business divisions including the Pigments and Additives division. For more information about Huntsman, please visit the company's website at www.huntsman.com.
Social Media:
Twitter: twitter.com/Huntsman_Corp
Facebook: www.facebook.com/huntsmancorp
LinkedIn: www.linkedin.com/company/huntsman
Cautionary Statement
This release shall not constitute an offer to sell or the solicitation of an offer to buy securities. Any offers, solicitations or offers to buy, or any sales of securities will be made in accordance with the registration requirements of the Securities Act of 1933, as amended.
Forward-Looking Statements:
This communication contains certain statements that are "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended (the "Securities Act"), and Section 21E of the Securities Exchange Act of 1934, as amended. Clariant Ltd ("Clariant") and Huntsman Corporation ("Huntsman") have identified some of these forward-looking statements with words like "believe," "may," "could," "would," "might," "possible," "will," "should," "expect," "intend," "plan," "anticipate," "estimate," "potential," "outlook" or "continue," the negative of these words, other terms of similar meaning or the use of future dates. Forward-looking statements in this communication include, without limitation, statements about the anticipated benefits of the contemplated transaction, including future financial and operating results and expected synergies and cost savings related to the contemplated transaction, the plans, objectives, expectations and intentions of Clariant, Huntsman or the combined company, the expected timing of the completion of the contemplated transaction and information relating to the proposed initial public offering of ordinary shares of Venator Materials PLC. Such statements are based on the current expectations of the management of Clariant or Huntsman, as applicable, are qualified by the inherent risks and uncertainties surrounding future expectations generally, and actual results could differ materially from those currently anticipated due to a number of risks and uncertainties. Neither Clariant nor Huntsman, nor any of their respective directors, executive officers or advisors, provide any representation, assurance or guarantee that the occurrence of the events expressed or implied in any forward-looking statements will actually occur. Risks and uncertainties that could cause results to differ from expectations include: uncertainties as to the timing of the contemplated transaction; uncertainties as to the approval of Huntsman's stockholders and Clariant's shareholders required in connection with the contemplated transaction; the possibility that a competing proposal will be made; the possibility that the closing conditions to the contemplated transaction may not be satisfied or waived, including that a governmental entity may prohibit, delay or refuse to grant a necessary regulatory approval; the effects of disruption caused by the announcement of the contemplated transaction making it more difficult to maintain relationships with employees, customers, vendors and other business partners; the risk that stockholder litigation in connection with the contemplated transaction may affect the timing or occurrence of the contemplated transaction or result in significant costs of defense, indemnification and liability; ability to refinance existing indebtedness of Clariant or Huntsman in connection with the contemplated transaction; other business effects, including the effects of industry, economic or political conditions outside of the control of the parties to the contemplated transaction; transaction costs; actual or contingent liabilities; disruptions to the financial or capital markets, including with respect to the initial public offering of ordinary shares by Venator Materials PLC or financing activities related to the contemplated transaction; and other risks and uncertainties discussed in Huntsman's filings with the U.S. Securities and Exchange Commission (the "SEC"), including the "Risk Factors" sections of Huntsman's annual report on Form 10-K for the fiscal year ended December 31, 2016 and quarterly report on Form 10-Q for the six months ended June 30, 2017. You can obtain copies of Huntsman's filings with the SEC for free at the SEC's website (www.sec.gov). Forward-looking statements included herein are made only as of the date hereof and neither Clariant nor Huntsman undertakes any obligation to update any forward-looking statements as a result of new information, future developments or otherwise, except as expressly required by law. All forward-looking statements in this communication are qualified in their entirety by this cautionary statement.
NO OFFER OR SOLICITATION
This communication is not intended to and does not constitute an offer to sell or the solicitation of an offer to subscribe for or buy or an invitation to purchase or subscribe for any securities or the solicitation of any vote or approval in any jurisdiction, nor shall there be any sale, issuance or transfer of securities in any jurisdiction in contravention of applicable law. No offer of securities will be made except by means of a prospectus meeting the requirements of Section 10 of the Securities Act.
IMPORTANT ADDITIONAL INFORMATION WILL BE FILED WITH THE SEC
In connection with the contemplated transaction, Clariant intends to file a registration statement on Form F-4 with the SEC that will include the Proxy Statement/Prospectus of Huntsman. The Proxy Statement/Prospectus will also be sent or given to Huntsman stockholders and will contain important information about the contemplated transaction. INVESTORS AND SHAREHOLDERS ARE URGED TO READ THE PROXY STATEMENT/PROSPECTUS AND OTHER RELEVANT DOCUMENTS FILED OR TO BE FILED WITH THE SEC CAREFULLY WHEN THEY BECOME AVAILABLE BECAUSE THEY WILL CONTAIN IMPORTANT INFORMATION ABOUT CLARIANT, HUNTSMAN, THE CONTEMPLATED TRANSACTION AND RELATED MATTERS. Investors and shareholders will be able to obtain free copies of the Proxy Statement/Prospectus (when available) and other documents filed with the SEC by Clariant and Huntsman through the website maintained by the SEC at www.sec.gov.
PARTICIPANTS IN THE SOLICITATION
Huntsman and its directors and executive officers may be deemed to be participants in the solicitation of proxies from Huntsman investors and shareholders in connection with the contemplated transaction. Information about Huntsman's directors and executive officers is set forth in its proxy statement for its 2017 Annual Meeting of Stockholders and its annual report on Form 10-K for the fiscal year ended December 31, 2016. These documents may be obtained for free at the SEC's website at www.sec.gov. Additional information regarding the interests of participants in the solicitation of proxies in connection with the contemplated transactions will be included in the Proxy Statement/Prospectus that Huntsman intends to file with the SEC.
View original content with multimedia:http://www.prnewswire.com/news-releases/huntsman-announces-second-quarter-2017-results-strong-earnings-growth-and-operating-cash-flow-300494963.html
SOURCE Huntsman Corporation
Article Date
7/27/20177/24/2017 - Venator Launches IPO
Venator Launches IPO
Source: PR Newswire
Orignial Article: http://www.prnewswire.com...
THE WOODLANDS, Texas, July 24, 2017 /PRNewswire/ -- Huntsman Corporation (NYSE: HUN) announced its subsidiary, Venator Materials PLC ("Venator"), a global chemical company dedicated to the development and manufacture of titanium dioxide ("TiO2") pigments and performance additives, today launched its initial public offering ("IPO") of its ordinary shares, which will be listed on the New York Stock Exchange in August under the ticker symbol "VNTR," subject to official notice of issuance.
The initial public offering consists of 22,700,000 of its ordinary shares at an anticipated initial offering price between $20 and $22 per share, pursuant to a registration statement on Form S-1 (the "Registration Statement") filed previously with the Securities and Exchange Commission (the "SEC"). All of the ordinary shares will be sold by Huntsman, and Venator will not receive any proceeds from the offering. Huntsman intends to grant the underwriters a 30-day option to purchase up to an additional 3,405,000 ordinary shares.
Citigroup, Goldman Sachs & Co. LLC, BofA Merrill Lynch and J.P. Morgan are acting as lead book-running managers for the offering. The offering of these securities will be made only by means of a prospectus that meets the requirements of Section 10 of the Securities Act of 1933.
Copies of the preliminary prospectus relating to the proposed initial public offering may be obtained from Citigroup, c/o Broadridge Financial Solutions, 1155 Long Island Avenue, Edgewood, NY 11717 or telephone: (800) 831-9146; Goldman Sachs & Co. LLC, Attn: Prospectus Department, 200 West Street, New York, NY 10282, telephone: (866) 471-2526 or email: prospectus-ny@ny.email.cs.com; BofA Merrill Lynch, NC1-004-03-43, 200 North College Street, 3rd floor, Charlotte, NC 28255-0001, Attn: Prospectus Department or email: dg.prospectus_requests@baml.com; and J.P. Morgan, c/o Broadridge Financial Solutions, 1155 Long Island Avenue, Edgewood, NY 11717 or telephone: (866) 803-9204.
About Huntsman
Huntsman Corporation is a publicly traded global manufacturer and marketer of differentiated chemicals with 2016 revenues of approximately $10 billion. Its chemical products number in the thousands and are sold worldwide to manufacturers serving a broad and diverse range of consumer and industrial end markets. The company has more than 100 manufacturing and R&D facilities in approximately 30 countries and employs approximately 15,000 associates within 5 distinct business divisions.
Important Information
A registration statement relating to these securities has been filed with the SEC but has not yet become effective. These securities may not be sold nor may offers to buy be accepted prior to the time the registration statement becomes effective. The registration statement may be obtained free of charge at the SEC's website at www.sec.gov under "Venator Materials PLC." This press release shall not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of these securities in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to the registration or qualification under the securities laws of any such state or jurisdiction.
Forward Looking Statements:
Statements in this release that are not historical are forward-looking statements. These statements are based on management's current beliefs and expectations. The forward-looking statements in this release are subject to uncertainty and changes in circumstances and involve risks and uncertainties that may affect the company's operations, markets, products, services, prices and other factors as discussed in the Huntsman companies' filings with the U.S. Securities and Exchange Commission. Significant risks and uncertainties may relate to, but are not limited to, volatile global economic conditions, cyclical and volatile product markets, disruptions in production at manufacturing facilities, reorganization or restructuring of Huntsman's operations, any delay of, or other negative developments affecting, the IPO of Venator Materials PLC, the ability to implement cost reductions and manufacturing optimization improvements in Huntsman businesses, to consummate or achieve the expected benefits of the proposed transaction with Clariant and to realize anticipated cost savings, and other financial, economic, competitive, environmental, political, legal, regulatory and technological factors. The company assumes no obligation to provide revisions to any forward-looking statements should circumstances change, except as otherwise required by applicable laws.
View original content with multimedia:http://www.prnewswire.com/news-releases/venator-launches-ipo-300492695.html
SOURCE Huntsman Corporation
Article Date
7/24/2017Huntsman Awards Carbon Monoxide and Hydrogen Supply Contract to Air Products
Source: PR Newswire
Orignial Article: http://www.prnewswire.com...
LEHIGH VALLEY, Pa., July 17, 2017 /PRNewswire/ -- Air Products (NYSE: APD) and Huntsman (NYSE: HUN) today announced they have signed a long-term agreement for Air Products to build, own and operate a new steam methane reformer (SMR) and cold box in Geismar, Louisiana. The Air Products facilities, targeted to be onstream in January of 2020, will supply hydrogen, carbon monoxide (CO) and steam to Huntsman's Geismar operations.
The new facility, to be located on land leased from Huntsman, will produce approximately 6.5 million standard cubic feet per day (MMSCFD) of CO, 50 MMSCFD of hydrogen, and up to 50,000 pounds per hour of steam. There is also the ability for the facility to be expanded to increase CO in the future to support additional growth.
"We have a long relationship with Huntsman with other operations, so our track record of reliability and customer service were a big asset in being awarded this supply contract. We are pleased to expand this relationship with the new plant at Geismar. The new facility supporting Huntsman will be state-of-the-art in terms of high reliability and sustainability, with enhanced energy efficiency and reduced emissions," said Marie Ffolkes, president, Industrial Gases Americas at Air Products.
Tony Hankins, president of Huntsman Polyurethanes said, "Geismar is one of our three world-scale MDI production facilities, which primarily serves North and South America. This investment will help underpin our global growth strategy, which involves strengthening our upstream assets, while at the same time rapidly building our downstream footprint and capabilities. We look forward to the technology and reliability that Air Products will bring to our Geismar facility."
Beyond supply to Huntsman's production facility in Geismar, Air Products' new plant will also be connected to its Gulf Coast hydrogen pipeline and network system (GCP). Dedicated in 2012, the 600-mile pipeline span is the world's largest hydrogen plant and pipeline network system. The GCP stretches from the Houston Ship Channel in Texas to New Orleans, Louisiana, and supplies customers with over 1.4 billion feet of hydrogen per day from over 22 hydrogen production facilities.
About Air Products
Air Products (NYSE: APD) is a world-leading Industrial Gases company in operation for over 75 years. The Company's core industrial gases business provides atmospheric and process gases and related equipment to manufacturing markets, including refining and petrochemical, metals, electronics, and food and beverage. Air Products is also the world's leading supplier of liquefied natural gas process technology and equipment.
The Company had fiscal 2016 sales of $7.5 billion from continuing operations in 50 countries and has a current market capitalization of approximately $30 billion. Approximately 16,000 employees are making Air Products the world's safest and best performing industrial gases company, providing sustainable offerings and excellent service to all customers. For more information, visit www.airproducts.com.
About Huntsman
Huntsman Corporation is a publicly traded global manufacturer and marketer of differentiated chemicals with 2016 revenues of approximately $10 billion. Our chemical products number in the thousands and are sold worldwide to manufacturers serving a broad and diverse range of consumer and industrial end markets. We operate more than 100 manufacturing and R&D facilities in approximately 30 countries and employ approximately 15,000 associates within our 5 distinct business divisions. For more information about Huntsman, please visit the company's website at www.huntsman.com.
NOTE: This release may contain forward-looking statements within the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are based on management's reasonable expectations and assumptions as of the date of this release regarding important risk factors. Actual performance and financial results may differ materially from projections and estimates expressed in the forward-looking statements because of many factors not anticipated by management, including risk factors described in the Company's Form 10K for its fiscal year ended September 30, 2016.
View original content:http://www.prnewswire.com/news-releases/huntsman-awards-carbon-monoxide-and-hydrogen-supply-contract-to-air-products-300488992.html
SOURCE Air Products
Article Date
7/17/2017Venator Completes $375 Million Private Offering of Senior Notes Due 2025
Source: PR Newswire
Orignial Article: http://www.prnewswire.com...
Article Date
7/14/2017Huntsman to Discuss Second Quarter 2017 Results on July 27, 2017
Source: PR Newswire
Orignial Article: http://www.prnewswire.com...
THE WOODLANDS, Texas, July 12, 2017 /PRNewswire/ -- Huntsman Corporation (NYSE: HUN) will hold a conference call to discuss its second quarter 2017 financial results on Thursday, July 27, 2017 at 10:00 a.m. ET. Second quarter 2017 results will be released to the public at approximately 6:00 a.m. ET that day via PR Newswire.
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Call-in numbers for the conference call: | |
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U.S. participants |
(888) 713 - 4211 |
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International participants |
(617) 213 - 4864 |
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Passcode |
244 268 82# |
In order to facilitate the registration process, you may use the following link to pre-register for the conference call. Callers who pre-register will be given a unique PIN to gain immediate access to the call and bypass the live operator. You may pre-register at any time, including up to and after the call start time. To pre-register, please go to: https://www.theconferencingservice.com/prereg/key.process?key=PEW6BPNM6 .
Webcast Information
The conference call will be available via webcast and can be accessed from the company's website at ir.huntsman.com.
Replay Information
The conference call will be available for replay beginning July 27, 2017 and ending August 3, 2017.
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Call-in numbers for the replay: | |
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U.S. participants |
(888) 286 - 8010 |
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International participants |
(617) 801 - 6888 |
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Replay code |
29385180 |
About Huntsman
Huntsman Corporation is a publicly traded global manufacturer and marketer of differentiated chemicals with 2016 revenues of approximately $10 billion. Its chemical products number in the thousands and are sold worldwide to manufacturers serving a broad and diverse range of consumer and industrial end markets. The company has more than 100 manufacturing and R&D facilities in approximately 30 countries and employs approximately 15,000 associates within 5 distinct business divisions. For more information about Huntsman, please visit the company's website at www.Huntsman.com.
Social Media:
Twitter: twitter.com/Huntsman_Corp
Facebook: www.facebook.com/huntsmancorp
LinkedIn: www.linkedin.com/company/huntsman
Forward Looking Statements:
Statements in this release that are not historical are forward-looking statements. These statements are based on management's current beliefs and expectations. The forward-looking statements in this release are subject to uncertainty and changes in circumstances and involve risks and uncertainties that may affect the company's operations, markets, products, services, prices and other factors as discussed in the Huntsman companies' filings with the U.S. Securities and Exchange Commission. Significant risks and uncertainties may relate to, but are not limited to, volatile global economic conditions, cyclical and volatile product markets, disruptions in production at manufacturing facilities, reorganization or restructuring of Huntsman's operations, any delay of, or other negative developments affecting, the IPO of Venator Materials PLC, the ability to implement cost reductions and manufacturing optimization improvements in Huntsman businesses, to consummate or achieve the expected benefits of the proposed transaction with Clariant and to realize anticipated cost savings, and other financial, economic, competitive, environmental, political, legal, regulatory and technological factors. The company assumes no obligation to provide revisions to any forward-looking statements should circumstances change, except as otherwise required by applicable laws.
View original content with multimedia:http://www.prnewswire.com/news-releases/huntsman-to-discuss-second-quarter-2017-results-on-july-27-2017-300487351.html
SOURCE Huntsman Corporation
Article Date
7/12/2017Venator Materials Prices $375 Million Private Offering of Senior Notes Due 2025
Source: PR Newswire
Orignial Article: http://www.prnewswire.com...
THE WOODLANDS, Texas, June 29, 2017 /PRNewswire/ -- Huntsman Corporation (NYSE: HUN) and Venator Materials PLC today announced that they have priced a $375 million in aggregate principal amount offering of senior notes due 2025 (the "Notes") through their wholly owned subsidiaries, Venator Finance S.à r.l. and Venator Materials Corporation. The offering was increased from a previously announced size of $350 million in aggregate principal amount of Notes. The Notes will carry an interest rate of 5 ¾ % and will mature on July 15, 2025. The closing of the offering is expected to occur on July 14, 2017, subject to the satisfaction of customary closing conditions.
Huntsman has previously announced its intention to separate its Pigments & Additives business, through an initial public offering of Venator Materials PLC this summer, subject to market conditions. Proceeds from the offering of Notes will initially be placed into escrow pending the initial public offering and will then be used to repay intercompany debt owed to Huntsman and its subsidiaries, to pay a dividend to Huntsman and its subsidiaries and to pay related fees and expenses.
The Notes are being offered in a private offering exempt from registration requirements of the United States Securities Act of 1933, as amended (the "Securities Act"). The Notes are being offered only to qualified institutional buyers under Rule 144A and outside the United States in compliance with Regulation S under the Securities Act. The Notes have not been and will not be registered under the Securities Act and may not be offered or sold in the United States absent registration or an applicable exemption from, or in a transaction not subject to, the registration requirements of the Securities Act and other applicable securities laws.
This press release is neither an offer to sell nor a solicitation of an offer to buy the Notes or any other securities and shall not constitute an offer to sell or a solicitation of an offer to buy, or a sale of, the Notes or any other securities in any jurisdiction in which such offer, solicitation or sale is unlawful.
About Huntsman
Huntsman Corporation is a publicly traded global manufacturer and marketer of differentiated chemicals with 2016 revenues of approximately $10 billion. Its chemical products number in the thousands and are sold worldwide to manufacturers serving a broad and diverse range of consumer and industrial end markets. The company has more than 100 manufacturing and R&D facilities in approximately 30 countries and employs approximately 15,000 associates within 5 distinct business divisions. For more information about Huntsman, please visit the company's website at www.Huntsman.com.
Social Media:
Twitter: twitter.com/Huntsman_Corp
Facebook: www.facebook.com/huntsmancorp
LinkedIn: www.linkedin.com/company/huntsman
Forward Looking Statements:
Statements in this release that are not historical are forward-looking statements. These statements are based on management's current beliefs and expectations. The forward-looking statements in this release are subject to uncertainty and changes in circumstances and involve risks and uncertainties that may affect the company's operations, markets, products, services, prices and other factors as discussed in the Huntsman companies' filings with the U.S. Securities and Exchange Commission. Significant risks and uncertainties may relate to, but are not limited to, volatile global economic conditions, cyclical and volatile product markets, disruptions in production at manufacturing facilities, reorganization or restructuring of Huntsman's operations, any delay of, or other negative developments affecting, the IPO of Venator Materials PLC, the ability to implement cost reductions and manufacturing optimization improvements in Huntsman businesses, to consummate or achieve the expected benefits of the proposed transaction with Clariant and to realize anticipated cost savings, and other financial, economic, competitive, environmental, political, legal, regulatory and technological factors. The company assumes no obligation to provide revisions to any forward-looking statements should circumstances change, except as otherwise required by applicable laws.
SOURCE Huntsman Corporation
Article Date
6/30/2017Venator Materials Launches Offer of Senior Notes Due 2025
Source: PR Newswire
Orignial Article: http://www.prnewswire.com...
THE WOODLANDS, Texas, June 26, 2017 /PRNewswire/ -- Huntsman Corporation (NYSE: HUN) and Venator Materials PLC today announced their intention, subject to market and other conditions, to privately offer $350.0 million in aggregate principal amount of senior notes due 2025 (the "Notes") through their wholly owned subsidiaries, Venator Finance S.a r.l. and Venator Materials Corporation.
Huntsman has previously announced its intention to separate its Pigments & Additives business, through an initial public offering of Venator Materials PLC this summer, subject to market conditions. Proceeds from the offering of Notes will initially be placed into escrow pending the initial public offering and will then be used to repay intercompany debt owed to Huntsman, to pay a dividend to Huntsman and its subsidiaries and to pay related fees and expenses.
The Notes will be offered in a private offering exempt from registration requirements of the United States Securities Act of 1933, as amended (the "Securities Act"). The Notes are being offered only to qualified institutional buyers under Rule 144A and outside the United States in compliance with Regulation S under the Securities Act.
The Notes have not been and will not be registered under the Securities Act and may not be offered or sold in the United States absent registration or an applicable exemption from, or in a transaction not subject to, the registration requirements of the Securities Act and other applicable securities laws.
This press release is neither an offer to sell nor a solicitation of an offer to buy the Notes or any other securities and shall not constitute an offer to sell or a solicitation of an offer to buy, or a sale of, the Notes or any other securities in any jurisdiction in which such offer, solicitation or sale is unlawful.
About Huntsman
Huntsman Corporation is a publicly traded global manufacturer and marketer of differentiated chemicals with 2016 revenues of approximately $10 billion. Its chemical products number in the thousands and are sold worldwide to manufacturers serving a broad and diverse range of consumer and industrial end markets. The company has more than 100 manufacturing and R&D facilities in approximately 30 countries and employs approximately 15,000 associates within 5 distinct business divisions. For more information about Huntsman, please visit the company's website at www.Huntsman.com.
Social Media:
Twitter: twitter.com/Huntsman_Corp
Facebook: www.facebook.com/huntsmancorp
LinkedIn: www.linkedin.com/company/huntsman
Forward Looking Statements:
Statements in this release that are not historical are forward-looking statements. These statements are based on management's current beliefs and expectations. The forward-looking statements in this release are subject to uncertainty and changes in circumstances and involve risks and uncertainties that may affect the company's operations, markets, products, services, prices and other factors as discussed in the Huntsman companies' filings with the U.S. Securities and Exchange Commission. Significant risks and uncertainties may relate to, but are not limited to, volatile global economic conditions, cyclical and volatile product markets, disruptions in production at manufacturing facilities, reorganization or restructuring of Huntsman's operations, any delay of, or other negative developments affecting, the IPO of Venator Materials PLC, the ability to implement cost reductions and manufacturing optimization improvements in Huntsman businesses, to consummate or achieve the expected benefits of the proposed transaction with Clariant and to realize anticipated cost savings, and other financial, economic, competitive, environmental, political, legal, regulatory and technological factors. The company assumes no obligation to provide revisions to any forward-looking statements should circumstances change, except as otherwise required by applicable laws.
SOURCE Huntsman Corporation
Article Date
6/26/2017Huntsman Scheduled to Present at the VRP Materials Conference
Source: PR Newswire
Orignial Article: http://www.prnewswire.com...
THE WOODLANDS, Texas, June 13, 2017 /PRNewswire/ -- Huntsman Corporation (NYSE: HUN) today announced that its CEO, Peter Huntsman, is scheduled to present at the Vertical Research Partners Materials Conference in Westbrook, Connecticut on June 15th, 2017 at approximately 9:30 a.m. Eastern Time.
A live audio webcast of the presentation will be accessible from the Investor Relations section of the Huntsman Corporation's website www.ir.huntsman.com and will be archived for a minimum of 30 days following the presentation.
About Huntsman
Huntsman Corporation is a publicly traded global manufacturer and marketer of differentiated chemicals with 2016 revenues of approximately $10 billion. Its chemical products number in the thousands and are sold worldwide to manufacturers serving a broad and diverse range of consumer and industrial end markets. The company has more than 100 manufacturing and R&D facilities in approximately 30 countries and employs approximately 15,000 associates within 5 distinct business divisions. For more information about Huntsman, please visit the company's website at www.Huntsman.com.
Social Media:
Twitter: twitter.com/Huntsman_Corp
Facebook: www.facebook.com/huntsmancorp
LinkedIn: www.linkedin.com/company/huntsman
Forward Looking Statements:
Statements in this release that are not historical are forward-looking statements. These statements are based on management's current beliefs and expectations. The forward-looking statements in this release are subject to uncertainty and changes in circumstances and involve risks and uncertainties that may affect the company's operations, markets, products, services, prices and other factors as discussed in the Huntsman companies' filings with the U.S. Securities and Exchange Commission. Significant risks and uncertainties may relate to, but are not limited to, volatile global economic conditions, cyclical and volatile product markets, disruptions in production at manufacturing facilities, reorganization or restructuring of Huntsman's operations, any delay of, or other negative developments affecting, the IPO of Venator Materials Corporation, the ability to implement cost reductions and manufacturing optimization improvements in Huntsman businesses, to consummate or achieve the expected benefits of the proposed transaction with Clariant and to realize anticipated cost savings, and other financial, economic, competitive, environmental, political, legal, regulatory and technological factors. The company assumes no obligation to provide revisions to any forward-looking statements should circumstances change, except as otherwise required by applicable laws.
SOURCE Huntsman Corporation
Article Date
6/13/2017Huntsman and Clariant to Combine in Merger of Equals
Source: PR Newswire
Orignial Article: http://www.prnewswire.com...
THE WOODLANDS, Texas, May 22, 2017 /PRNewswire/ --
Huntsman Corporation (NYSE: HUN) and Clariant (SIX: CLN) today announced that their Boards of Directors unanimously approved a definitive agreement to combine in a merger of equals through an all-stock transaction.
The merged company will be named HuntsmanClariant. On a pro forma 2016 basis1, the combination of both companies will create a leading global specialty chemical company with sales of approximately $13.2 billion, an adjusted EBITDA of $2.3 billion and a combined enterprise value of approximately $20 billion at announcement.
The combined entity will benefit from each other's strengths. It will have a significantly improved growth profile in highly attractive end markets and geographies. HuntsmanClariant will leverage shared knowledge in sustainability and boast a much stronger joint innovation platform. This will enable the development of new products in order to deliver superior returns and drive shareholder value.
CEO Comments
"This is the perfect deal at the right time. Clariant and Huntsman are joining forces to gain much broader global reach, create more sustained innovation power and achieve new growth opportunities," said Hariolf Kottmann, CEO of Clariant. "This is in the best interest of all of our stakeholders. Peter Huntsman and I share the same strategic vision and I look forward to working with him."
Peter R. Huntsman, President and CEO of Huntsman, commented: "I could not be more enthusiastic about this merger and look forward to working closely with Hariolf Kottmann, a man I have admired and trusted for the past decade. We also look forward to a close association with his immensely talented colleagues around the world. Together, we will create a global leader in specialty chemicals with a combined balance sheet providing substantial financial strength and flexibility."
Transaction highlights
Value Creation
The new company will accelerate value creation for shareholders through a more robust combination of technology, products and talent. The combined company expects to realize more than $3.5 billion of value creation from approximately $400 million in annual cost synergies. The full synergy run-rate will be achieved within two years of closing. These synergies will be realized by reducing operational costs and improving procurement. The targeted synergies represent roughly 3 percent of total combined 2016 revenue with one-time costs up to $500 million. There will also be additional cash-tax savings.
Corporate Governance
The combined company, incorporated in Switzerland, will be governed by a Board of Directors with equal representation from Clariant and Huntsman and will follow Swiss Corporate Governance standards. Hariolf Kottmann, current Clariant CEO, shall become Chairman of the Board of HuntsmanClariant. Peter Huntsman, current Huntsman President and CEO, will become CEO of HuntsmanClariant. Jon Huntsman, founder and Chairman of Huntsman, shall become Chairman Emeritus and board member of HuntsmanClariant. The merger enjoys strong commitment from both Clariant and Huntsman family shareholders. The company will be listed on the SIX Swiss Exchange and the New York Stock Exchange. HuntsmanClariant will use IFRS, and beginning in Q1 2018 will report in USD and will start filing 10Qs and 10Ks consistent with SEC requirements.
Timing
The transaction is targeted to close by year end 2017, subject to Clariant and Huntsman shareholder approvals, regulatory approvals and other customary closing conditions. Clariant and Huntsman are confident that the required regulatory approvals can be obtained in a timely manner.
This presentation contains financial measures that are not in accordance with generally accepted accounting principles in the U.S. ("GAAP"). For reconciliation of Huntsman's non-GAAP measures please refer the related presentation posted on our website, www.huntsman.com.
Note to Publication
Both Clariant and Huntsman have simultaneously published Media Releases with identical content.
Advisors
Citi and UBS AG are serving as Clariant's financial advisors for the transaction, with Homburger and Cleary Gottlieb Steen and Hamilton serving as its legal advisors.
BofA Merrill Lynch and Moelis & Company LLC are serving as Huntsman's financial advisors for the transaction, with Kirkland & Ellis, Bär & Karrer and Vinson & Elkins acting as its legal advisors.
Conference Call and Webcast Information
We will hold a conference call and live web-cast this Monday, May 22, 2017 at 2:30 p.m. CET, 1:30 p.m. London and 8:30 a.m. New York.
Pre-Registration – Link:
http://services3.choruscall.ch/DiamondPassRegistration/register?confirmationNumber=170000&linkSecurityString=fb9e10
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Call-in numbers for the conference call*: | |
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European participants |
+ 41 58 310 50 00 |
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U.K. participants |
+ 44 203 059 58 62 |
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U.S. participants |
+ 1 631 570 56 13 |
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*Only for participants NOT pre-registered | |
The conference call will be available via webcast and can be accessed from the company's website at Clariant.com and Huntsman.com or by using the following link:
https://streamstudio.world-television.com/49-50-18401/en
Replay Information
The conference call will be available for replay beginning May 22, 2017 and ending June 30, 2017.
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Digital playback numbers: | ||
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European participants |
+ 41 91 612 43 30 |
Code 14774# (available 24 hours) |
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U.K. participants |
+ 44 207 108 62 33 |
Code 14774# (available 24 hours) |
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U.S participants |
+ 1 631 982 45 66 |
Code 14774# (available 24 hours) |
About Huntsman
Huntsman Corporation is a publicly traded global manufacturer and marketer of differentiated chemicals with 2016 revenues of approximately $10 billion. Its chemical products number in the thousands and are sold worldwide to manufacturers serving a broad and diverse range of consumer and industrial end markets. The company has more than 100 manufacturing and R&D facilities in approximately 30 countries and employs approximately 15,000 associates within 5 distinct business divisions including the Pigments and Additives division which it intends to IPO as Venator Materials Corporation. For more information about Huntsman, please visit the company's website at www.Huntsman.com.
About Clariant
Clariant is a globally leading specialty chemical company, based in Muttenz near Basel/Switzerland. On 31 December 2016 the company employed a total workforce of 17 442. In the financial year 2016, Clariant recorded sales of approximately CHF 6 billion. The company reports in four business areas: Care Chemicals, Catalysis, Natural Resources, and Plastics & Coatings. Clariant's corporate strategy is based on five pillars: focus on innovation through R&D, add value with sustainability, reposition portfolio, intensify growth, and increase profitability. For more information about Clariant, please visit the company's website at www.Clariant.com.
Social Media:
Twitter: twitter.com/Huntsman_Corp
Facebook: www.facebook.com/huntsmancorp
LinkedIn: www.linkedin.com/company/huntsman
Cautionary Statement Regarding Forward-Looking Statements
This communication contains certain statements that are "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended (the "Securities Act"), and Section 21E of the Securities Exchange Act of 1934, as amended. Clariant and Huntsman have identified some of these forward-looking statements with words like "believe," "may," "could," "would," "might," "possible," "will," "should," "expect," "intend," "plan," "anticipate," "estimate," "potential," "outlook" or "continue," the negative of these words, other terms of similar meaning or the use of future dates. Forward-looking statements in this communication include, without limitation, statements about the anticipated benefits of the contemplated transaction, including future financial and operating results and expected synergies and cost savings related to the contemplated transaction, the plans, objectives, expectations and intentions of Clariant, Huntsman or the combined company, the expected timing of the completion of the contemplated transaction and information relating to the proposed initial public offering of ordinary shares of Venator Materials PLC. Such statements are based on the current expectations of the management of Clariant or Huntsman, as applicable, are qualified by the inherent risks and uncertainties surrounding future expectations generally, and actual results could differ materially from those currently anticipated due to a number of risks and uncertainties. Neither Clariant nor Huntsman, nor any of their respective directors, executive officers or advisors, provide any representation, assurance or guarantee that the occurrence of the events expressed or implied in any forward-looking statements will actually occur. Risks and uncertainties that could cause results to differ from expectations include: uncertainties as to the timing of the contemplated transaction; uncertainties as to the approval of Huntsman's stockholders and Clariant's shareholders required in connection with the contemplated transaction; the possibility that a competing proposal will be made; the possibility that the closing conditions to the contemplated transaction may not be satisfied or waived, including that a governmental entity may prohibit, delay or refuse to grant a necessary regulatory approval; the effects of disruption caused by the announcement of the contemplated transaction making it more difficult to maintain relationships with employees, customers, vendors and other business partners; the risk that stockholder litigation in connection with the contemplated transaction may affect the timing or occurrence of the contemplated transaction or result in significant costs of defense, indemnification and liability; ability to refinance existing indebtedness of Clariant or Huntsman in connection with the contemplated transaction; other business effects, including the effects of industry, economic or political conditions outside of the control of the parties to the contemplated transaction; transaction costs; actual or contingent liabilities; disruptions to the financial or capital markets, including with respect to the initial public offering of ordinary shares by Venator or financing activities related to the contemplated transaction; and other risks and uncertainties discussed in Huntsman's filings with the U.S. Securities and Exchange Commission (the "SEC"), including the "Risk Factors" section of Huntsman's annual report on Form 10-K for the fiscal year ended December 31, 2016. You can obtain copies of Huntsman's filings with the SEC for free at the SEC's website (www.sec.gov). Forward-looking statements included herein are made only as of the date hereof and neither Clariant nor Huntsman undertakes any obligation to update any forward-looking statements as a result of new information, future developments or otherwise, except as expressly required by law. All forward-looking statements in this communication are qualified in their entirety by this cautionary statement.
Important Additional Information and Where to Find It
NO OFFER OR SOLICITATION
This communication is not intended to and does not constitute an offer to sell or the solicitation of an offer to subscribe for or buy or an invitation to purchase or subscribe for any securities or the solicitation of any vote or approval in any jurisdiction, nor shall there be any sale, issuance or transfer of securities in any jurisdiction in contravention of applicable law. No offer of securities will be made except by means of a prospectus meeting the requirements of Section 10 of the Securities Act.
IMPORTANT ADDITIONAL INFORMATION WILL BE FILED WITH THE SEC
In connection with the contemplated transaction, Clariant intends to file a registration statement on Form F-4 with the SEC that will include the Proxy Statement/Prospectus of Huntsman. The Proxy Statement/Prospectus will also be sent or given to Huntsman stockholders and will contain important information about the contemplated transaction. INVESTORS AND SHAREHOLDERS ARE URGED TO READ THE PROXY STATEMENT/PROSPECTUS AND OTHER RELEVANT DOCUMENTS FILED OR TO BE FILED WITH THE SEC CAREFULLY WHEN THEY BECOME AVAILABLE BECAUSE THEY WILL CONTAIN IMPORTANT INFORMATION ABOUT CLARIANT, HUNTSMAN, THE CONTEMPLATED TRANSACTION AND RELATED MATTERS. Investors and shareholders will be able to obtain free copies of the Proxy Statement/Prospectus (when available) and other documents filed with the SEC by Clariant and Huntsman through the website maintained by the SEC at www.sec.gov.
PARTICIPANTS IN THE SOLICITATION
Huntsman and its directors and executive officers may be deemed to be participants in the solicitation of proxies from Huntsman investors and shareholders in connection with the contemplated transaction. Information about Huntsman's directors and executive officers is set forth in its proxy statement for its 2017 Annual Meeting of Stockholders and its annual report on Form 10-K for the fiscal year ended December 31, 2016. These documents may be obtained for free at the SEC's website at www.sec.gov. Additional information regarding the interests of participants in the solicitation of proxies in connection with the contemplated transactions will be included in the Proxy Statement/ Prospectus that Huntsman intends to file with the SEC.
1 Includes annual $400 million in run-rate cost synergies; pro forma adjusted for Venator.
SOURCE Huntsman Corporation
Article Date
5/22/2017Huntsman Announces Second Quarter 2017 Common Dividend
Source: PR Newswire
Orignial Article: http://www.prnewswire.com...
THE WOODLANDS, Texas, May 11, 2017 /PRNewswire/ -- Huntsman Corporation (NYSE: HUN) today announced that its board of directors has declared a $0.125 per share cash dividend on its common stock. The dividend is payable on June 30, 2017, to stockholders of record as of June 15, 2017.
About Huntsman:
Huntsman Corporation is a publicly traded global manufacturer and marketer of differentiated chemicals with 2016 revenues of approximately $10 billion. Our chemical products number in the thousands and are sold worldwide to manufacturers serving a broad and diverse range of consumer and industrial end markets. We operate more than 100 manufacturing and R&D facilities in approximately 30 countries and employ approximately 15,000 associates within our 5 distinct business divisions including the Pigments and Additives division that we intend to IPO or spin-off as Venator Materials Corporation. For more information about Huntsman, please visit the company's website at www.huntsman.com.
Social Media:
Twitter: twitter.com/Huntsman_Corp
Facebook: www.facebook.com/huntsmancorp
LinkedIn: www.linkedin.com/company/huntsman
Forward-Looking Statements:
Statements in this release that are not historical are forward-looking statements. These statements are based on management's current beliefs and expectations. The forward-looking statements in this release are subject to uncertainty and changes in circumstances and involve risks and uncertainties that may affect the company's operations, markets, products, services, prices and other factors as discussed in the Huntsman companies' filings with the U.S. Securities and Exchange Commission. Significant risks and uncertainties may relate to, but are not limited to, volatile global economic conditions, cyclical and volatile product markets, disruptions in production at manufacturing facilities, reorganization or restructuring of Huntsman's operations, including any delay of, or other negative developments affecting, the IPO or spin-off of Venator Materials Corporation, the ability to implement cost reductions and manufacturing optimization improvements in Huntsman businesses and realize anticipated cost savings, and other financial, economic, competitive, environmental, political, legal, regulatory and technological factors. The company assumes no obligation to provide revisions to any forward-looking statements should circumstances change, except as otherwise required by applicable laws.
SOURCE Huntsman Corporation
Article Date
5/11/2017Huntsman Announces Global Titanium Dioxide Price Increases
Source: PR Newswire
Orignial Article: http://www.prnewswire.com...
THE WOODLANDS, Texas, May 8, 2017 /PRNewswire/ -- Huntsman Corporation's (NYSE: HUN) Pigments and Additives division, now known as Venator, today announced global price increases for all its titanium dioxide pigments. The following increases are effective July 1, 2017 or as contracts allow:
Europe: €250 (Euros) per tonne
Asia Pacific, Africa, Middle East and Latin America: $250 (USD) per tonne
The following increase is effective June 1, 2017 or as contracts allow:
North America: $0.08 per pound (USD)
About Huntsman:
Huntsman Corporation is a publicly traded global manufacturer and marketer of differentiated chemicals with 2016 revenues of approximately $10 billion. Our chemical products number in the thousands and are sold worldwide to manufacturers serving a broad and diverse range of consumer and industrial end markets. We operate more than 100 manufacturing and R&D facilities in approximately 30 countries and employ approximately 15,000 associates within our 5 distinct business divisions including the Pigments and Additives division that we intend to IPO or spin-off as Venator Materials Corporation. For more information about Huntsman, please visit the company's website at www.huntsman.com.
Social Media:
Twitter: twitter.com/Huntsman_Corp
Facebook: www.facebook.com/huntsmancorp
LinkedIn: www.linkedin.com/company/huntsman
Forward-Looking Statements:
Statements in this release that are not historical are forward-looking statements. These statements are based on management's current beliefs and expectations. The forward-looking statements in this release are subject to uncertainty and changes in circumstances and involve risks and uncertainties that may affect the company's operations, markets, products, services, prices and other factors as discussed in the Huntsman companies' filings with the U.S. Securities and Exchange Commission. Significant risks and uncertainties may relate to, but are not limited to, volatile global economic conditions, cyclical and volatile product markets, disruptions in production at manufacturing facilities, reorganization or restructuring of Huntsman's operations, including any delay of, or other negative developments affecting, the IPO or spin-off of Venator Materials Corporation, the ability to implement cost reductions and manufacturing optimization improvements in Huntsman businesses and realize anticipated cost savings, and other financial, economic, competitive, environmental, political, legal, regulatory and technological factors. The company assumes no obligation to provide revisions to any forward-looking statements should circumstances change, except as otherwise required by applicable laws.
SOURCE Huntsman Corporation
Article Date
5/8/2017Huntsman Announces Public Filing of Registration Statement for Proposed Initial Public Offering of Venator Materials
Source: PR Newswire
Orignial Article: http://www.prnewswire.com...
THE WOODLANDS, Texas, May 5, 2017 /PRNewswire/ -- Huntsman Corporation (NYSE: HUN) announced today that Venator Materials ("Venator"), a wholly-owned subsidiary of Huntsman, has publicly filed a registration statement on Form S-1 with the U.S. Securities and Exchange Commission (the "SEC") for a proposed initial public offering of its ordinary shares. Once separated from Huntsman, Venator will own Huntsman's Titanium Dioxide and Performance Additives businesses. Venator's products comprise a broad range of pigments and additives that bring color and vibrancy to buildings, protect and extend product life and reduce energy consumption.
All the ordinary shares to be sold in the offering will be offered by Huntsman, as selling shareholder. The date, number of ordinary shares to be offered, and the price range for the offering have not yet been determined. The offering is expected to commence in 2017, subject to, among other things, completion of the SEC review process and suitable market conditions.
BofA Merrill Lynch is acting as a lead book-running manager in the proposed offering.
The registration statement on Form S-1 filed with the SEC has not yet become effective and the ordinary shares to be registered may not be sold nor may offers to buy be accepted prior to the time when the registration statement becomes effective. Copies of the registration statement can be accessed through the SEC's website at www.sec.gov. This press release shall not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of these securities in any state or jurisdiction in which such offer, solicitation, or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction.
The proposed offering will be made only by means of a prospectus. When available, copies of the preliminary prospectus related to the offering may be obtained from BofA Merrill Lynch, NC1-004-03-43, 200 North College Street, 3rd Floor, Charlotte, NC 28255-0001, Attention: Prospectus Department, or by e-mail at dg.prospectus_requests@baml.com.
Forward-Looking Statements:
This press release contains forward-looking statements that may state Huntsman's or its management's intentions, beliefs, expectations or predictions for the future. Such forward-looking statements are subject to certain risks, uncertainties and assumptions, and typically can be identified by the use of words such as "will," "expect," "estimate," "anticipate," "forecast," "plan," "believe" and similar terms. Although Huntsman believes that its expectations are reasonable, it can give no assurance that these expectations will prove to have been correct, and actual results may vary materially. Factors that could cause actual results to differ materially from those contemplated above include, among others, risks and uncertainties related to the capital markets generally.
SOURCE Huntsman Corporation
Article Date
5/5/2017Huntsman Acquires Leading UK Independent Polyurethane Formulations Company, IFS
Source: PR Newswire
Orignial Article: http://www.prnewswire.com...
THE WOODLANDS, Texas, May 1, 2017 /PRNewswire/ -- Huntsman Corporation (NYSE: HUN) announced today that it has completed the acquisition of IFS Chemicals Limited (IFS), one of the UK's leading independent formulators of methylene diphenyl diisocyanate (MDI) based systems. The purchase price was not disclosed.
Located in Kings Lynn, England, IFS was established more than 35 years ago and its customized MDI systems are used in a diverse range of end markets, including insulation, appliances, automotive and elastomeric applications.
Commenting on the acquisition, Tony Hankins, President of Huntsman's Polyurethanes division, said: "With their highly experienced team and loyal customer base, IFS provides us with excellent access to the UK's growing downstream MDI systems market. It will serve as a strategic platform to expand our business and consolidate our position as a market leader. The acquisition represents the latest step in our plan to strengthen our differentiated downstream capabilities and we now have more than 25 facilities worldwide, reflecting our confidence in the long-term growth prospects for MDI-based urethanes."
Barrie Colvin IFS founder and Managing Director added, "I am delighted that we have reached agreement with Huntsman and look forward – together with the rest of the IFS team - to an exciting future which brings together the best of IFS and Huntsman Polyurethanes, strengthening our ability to meet the growing needs of existing and future customers."
About Huntsman:
Huntsman Corporation is a publicly traded global manufacturer and marketer of differentiated chemicals with 2016 revenues of approximately $10 billion. Our chemical products number in the thousands and are sold worldwide to manufacturers serving a broad and diverse range of consumer and industrial end markets. We operate more than 100 manufacturing and R&D facilities in approximately 30 countries and employ approximately 15,000 associates within our 5 distinct business divisions including the Pigments and Additives division that we intend to IPO or spin-off as Venator Materials Corporation. For more information about Huntsman, please visit the company's website at www.huntsman.com.
Social Media:
Twitter: twitter.com/Huntsman_Corp
Facebook: www.facebook.com/huntsmancorp
LinkedIn: www.linkedin.com/company/huntsman
Forward-Looking Statements:
Statements in this release that are not historical are forward-looking statements. These statements are based on management's current beliefs and expectations. The forward-looking statements in this release are subject to uncertainty and changes in circumstances and involve risks and uncertainties that may affect the company's operations, markets, products, services, prices and other factors as discussed in the Huntsman companies' filings with the U.S. Securities and Exchange Commission. Significant risks and uncertainties may relate to, but are not limited to, volatile global economic conditions, cyclical and volatile product markets, disruptions in production at manufacturing facilities, reorganization or restructuring of Huntsman's operations, including any delay of, or other negative developments affecting, the spin-off of Venator Materials Corporation, the ability to implement cost reductions and manufacturing optimization improvements in Huntsman businesses and realize anticipated cost savings, and other financial, economic, competitive, environmental, political, legal, regulatory and technological factors. The company assumes no obligation to provide revisions to any forward-looking statements should circumstances change, except as otherwise required by applicable laws.
SOURCE Huntsman Corporation
Article Date
5/1/20174/26/2017 - Huntsman Announces First Quarter 2017 Results; Raises 2017 Free Cash Flow Target to Over $450 Million
Huntsman Announces First Quarter 2017 Results; Raises 2017 Free Cash Flow Target to Over $450 Million
Source: PR Newswire
THE WOODLANDS, Texas, April 26, 2017 /PRNewswire/ --
First Quarter 2017 Highlights
Three months ended March 31, December 31, In millions, except per share amounts 2017 2016 2016 Revenues $2,469 $2,355 $ 2,395 Net income $ 92 $ 62 $ 137 Adjusted net income(1) $ 139 $ 88 $ 72 Diluted income per share $ 0.31 $ 0.24 $ 0.53 Adjusted diluted income per share(1) $ 0.57 $ 0.37 $ 0.30 Adjusted EBITDA(1) $ 329 $ 274 $ 256 Pro forma adjusted EBITDA(2) $ 329 $ 267 $ 250 Net cash provided by operating activities $ 93 $ 88 $ 240 Free cash flow(3) $ 82 $ (13) $ 117 See end of press release for footnote explanations
Huntsman Corporation (NYSE: HUN) today reported first quarter 2017 results with revenues of $2,469 million, net income of $92 million and adjusted EBITDA of $329 million.
Peter R. Huntsman, our President and CEO, commented:
"Within the first quarter we saw positive business trends develop such that earnings for all our divisions exceeded early quarter expectations. Additionally, it is noteworthy that our combined non-pigment businesses experienced year-over-year EBITDA growth. Net income was $92 million and adjusted EBITDA improved by $62 million to $329 million compared to the prior year after taking into consideration the fourth quarter 2016 sale of our European surfactants business. Our cash flow provided from operating activities was $93 million. Strong earnings fueled free cash flow delivery of $82 million which includes $54 million of insurance proceeds, an improvement of $95 million compared to the prior year first quarter. We continue to strengthen our balance sheet and on April 25, 2017 we voluntarily repaid $100 million of debt. In total, we have repaid approximately $670 million over the last year. As a result of the strong first quarter earnings and our improving outlook for the remainder of the year, we now expect to generate more than $450 million of free cash flow in 2017."
"We continue our efforts to separate our Pigments and Additives division (known as Venator) and are targeting an IPO or spin during this upcoming summer."
Segment Analysis for 1Q17 Compared to 1Q16
Polyurethanes
The increase in revenues in our Polyurethanes segment for the three months ended March 31, 2017 compared to the same period of 2016 was primarily due to higher average selling prices. MDI average selling prices increased in response to higher raw material costs and continued strong market conditions. MTBE average selling prices increased primarily as a result of higher pricing for high octane gasoline. MDI and MTBE volumes were flat compared to the same period of 2016. The increase in segment adjusted EBITDA was primarily due to higher MDI margins, partially offset by lower MTBE margins.
Performance Products
The decrease in revenues in our Performance Products segment for the three months ended March 31, 2017 compared to the same period of 2016 was due to lower sales volumes because of the sale of the European surfactants business to Innospec Inc. on December 30, 2016, partially offset by higher sales volumes in largely all of our businesses as well as higher average selling prices. On a Pro-forma basis, volumes increased 10%. The decrease in segment adjusted EBITDA was primarily due to the sale of the European surfactants business and lower margins in our amines and maleic anhydride businesses, partially offset by higher sales volumes and lower fixed costs.
Advanced Materials
The decrease in revenues in our Advanced Materials segment for the three months ended March 31, 2017 compared to the same period of 2016 was primarily due to lower sales volumes. Sales volumes decreased primarily due to our withdrawal from certain low margin business in the coatings and construction markets and competitive pressures in the wind market, partially offset by growth in certain higher value businesses. The decrease in segment adjusted EBITDA was due to lower sales volumes, higher raw material costs, and adverse fixed costs associated with optimizing our inventory to lower levels.
Textile Effects
The increase in revenues in our Textile Effects segment for the three months ended March 31, 2017 compared to the same period of 2016 was due to higher sales volumes, partially offset by lower average selling prices. Sales volumes increased in both textile chemicals and dyes, particularly in our Asia, Europe and South America regions. Average selling prices decreased primarily in response to lower raw material costs and product mix. The increase in segment adjusted EBITDA was primarily due to higher volumes and lower fixed costs.
Pigments and Additives
In the Pigments and Additives division revenues were essentially unchanged for the three months ended March 31, 2017 compared to the same period of 2016 as higher average local currency selling prices were offset by lower sales volumes from the fire at our Pori, Finland titanium dioxide facility. Average selling prices increased primarily due to improved business conditions for titanium dioxide. Sales volumes increased within our complementary performance additives business. The increase in adjusted EBITDA was primarily due to higher average selling prices for titanium dioxide and lower costs resulting from restructuring savings, partially offset by approximately $15 million in lower EBITDA resulting from the fire at our Pori, Finland titanium dioxide facility.
Corporate, LIFO and other
Adjusted EBITDA for Corporate, LIFO and Other decreased by $1 million to a loss of $43 million for the three months ended March 31, 2017 compared to a loss of $42 million for the same period in 2016. The slight decrease in adjusted EBITDA was primarily a result of a decrease in LIFO inventory valuation income, partially offset by an increase in income from benzene sales.
Separation Update
We intend to pursue a possible initial public offering of Venator. This is our preferred route to separate Venator as it is intended to provide significantly more value for Huntsman Shareholders by allowing for greater deleveraging of Huntsman. We plan on leaving our Form 10 on file for a potential spin in the event that the IPO market conditions become unfavorable. Either way, we are working toward an initial public offering or spin during the upcoming summer months of 2017.
Liquidity, Capital Resources and Outstanding Debt
As of March 31, 2017, we had $1,292 million of combined cash and unused borrowing capacity compared to $1,208 million as of December 31, 2016.
During the three months ended March 31, 2017 we spent $74 million on capital expenditures compared to $99 million in 2016. We expect to spend approximately $380 million on capital expenditures in 2017 net of capital reimbursements. On April 21, 2017 we amended our AR securitization facilities, which among other things extended our maturities from 2018 to 2020. On April 25, 2017, we made a $100 million early repayment of debt on our term loan B due 2019.
Income Taxes
During the three months ended March 31, 2017, we recorded an income tax expense of $23 million. During the same period, we paid $8 million in cash for income taxes.
In the first quarter 2017, our adjusted effective tax rate was 19%. We expect our long term adjusted effective tax rate will be approximately 30%. We expect our 2017 adjusted effective tax rate to be approximately 25 – 30%.
Earnings Conference Call Information
We will hold a conference call to discuss our first quarter 2017 financial results on Wednesday, April 26, 2017 at 9:00 a.m. ET.
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Call-in numbers for the conference call: | |
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U.S. participants |
(888) 679 - 8033 |
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International participants |
(617) 213 - 4846 |
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Passcode |
549 608 51# |
In order to facilitate the registration process, you may use the following link to pre-register for the conference call. Callers who pre-register will be given a unique PIN to gain immediate access to the call and bypass the live operator. You may pre-register at any time, including up to and after the call start time. To pre-register, please go to: https://www.theconferencingservice.com/prereg/key.process?key=PYK3Y9X8X.
Webcast Information
The conference call will be available via webcast and can be accessed from the company's website at ir.huntsman.com.
Replay Information
The conference call will be available for replay beginning April 26, 2017 and ending May 3, 2017.
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Call-in numbers for the replay: | |
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U.S. participants |
(888) 286 - 8010 |
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International participants |
(617) 801 - 6888 |
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Replay code |
29385180 |
Upcoming Conferences
During the second quarter a member of management is expected to present at the Wells Fargo Chemical Conference on May 9, 2017, the Goldman Sachs Basic Materials Conference on May 16, 2017 and Vertical Research Partners Materials Conference June 14-15, 2017. A webcast of the presentation, if applicable, along with accompanying materials will be available at ir.huntsman.com.
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Table 1 – Results of Operations | ||||
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Three months ended | ||||
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March 31, | ||||
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In millions, except per share amounts |
2017 |
2016 | ||
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Revenues |
$2,469 |
$2,355 | ||
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Cost of goods sold |
2,003 |
1,939 | ||
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Gross profit |
466 |
416 | ||
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Operating expenses |
259 |
265 | ||
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Restructuring, impairment and plant closing costs |
36 |
13 | ||
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Business separation expenses |
9 |
- | ||
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Operating income |
162 |
138 | ||
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Interest expense |
(48) |
(50) | ||
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Equity in income of investment in unconsolidated affiliates |
- |
1 | ||
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Other income |
2 |
1 | ||
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Income before income taxes |
116 |
90 | ||
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Income tax expense |
(23) |
(27) | ||
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Income from continuing operations |
93 |
63 | ||
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Loss from discontinued operations, net of tax(3) |
(1) |
(1) | ||
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Net income |
92 |
62 | ||
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Net income attributable to noncontrolling interests, net of tax |
(16) |
(6) | ||
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Net income attributable to Huntsman Corporation |
$ 76 |
$ 56 | ||
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Adjusted EBITDA(1) |
$ 329 |
$ 274 | ||
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Adjusted net income(1) |
$ 139 |
$ 88 | ||
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Basic income per share |
$ 0.32 |
$ 0.24 | ||
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Diluted income per share |
$ 0.31 |
$ 0.24 | ||
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Adjusted diluted income per share(1) |
$ 0.57 |
$ 0.37 | ||
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Common share information: |
||||
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Basic shares outstanding |
237 |
236 | ||
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Diluted shares |
243 |
238 | ||
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Diluted shares for adjusted diluted income per share |
243 |
238 | ||
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See end of press release for footnote explanations |
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Table 2 – Results of Operations by Segment | |||||||
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Three months ended |
|||||||
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March 31, |
Better / | ||||||
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In millions |
2017 |
2016 |
(Worse) | ||||
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Segment Revenues: |
|||||||
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Polyurethanes |
$ 953 |
$ 836 |
14% | ||||
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Performance Products |
533 |
536 |
(1)% | ||||
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Performance Products, pro forma(2) |
533 |
475 |
12% | ||||
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Advanced Materials |
259 |
266 |
(3)% | ||||
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Textile Effects |
188 |
185 |
2% | ||||
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Pigments & Additives |
537 |
540 |
(1)% | ||||
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Corporate and eliminations |
(1) |
(8) |
n/m | ||||
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Total |
$2,469 |
$2,355 |
5% | ||||
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Total, pro forma(2) |
$2,469 |
$2,294 |
8% | ||||
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Segment Adjusted EBITDA(1): |
|||||||
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Polyurethanes |
$ 144 |
$ 131 |
10% | ||||
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Performance Products |
84 |
92 |
(9)% | ||||
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Performance Products, pro forma(2) |
84 |
85 |
(1)% | ||||
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Advanced Materials |
54 |
60 |
(10)% | ||||
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Textile Effects |
21 |
18 |
17% | ||||
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Pigments & Additives |
69 |
15 |
360% | ||||
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Corporate, LIFO and other |
(43) |
(42) |
(2)% | ||||
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Total |
$ 329 |
$ 274 |
20% | ||||
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Total, pro forma(2) |
$ 329 |
$ 267 |
23% | ||||
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n/m = not meaningful | |||||||
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See end of press release for footnote explanations | |||||||
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Table 3 – Factors Impacting Sales Revenue | |||||||||||
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Three months ended |
|||||||||||
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March 31, 2017 vs. 2016 |
|||||||||||
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Average Selling Price(a) |
|||||||||||
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Local |
Exchange |
Sales Mix |
Sales |
||||||||
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Currency |
Rate |
& Other |
Volume(b) |
Total |
|||||||
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Polyurethanes |
12% |
(2)% |
3% |
1% |
14% |
||||||
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Performance Products |
3% |
0% |
2% |
(6)% |
(1)% |
||||||
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Performance Products, adj |
(2)% |
0% |
4% |
10% |
12% |
(c) | |||||
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Advanced Materials |
1% |
(1)% |
0% |
(3)% |
(3)% |
||||||
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Textile Effects |
(5)% |
(1)% |
(2)% |
10% |
2% |
||||||
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Pigments & Additives |
9% |
(2)% |
(2)% |
(6)% |
(1)% |
||||||
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Pigments & Additives, adj |
10% |
(2)% |
(1)% |
(3)% |
4% |
(d) | |||||
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Total Company |
8% |
(2)% |
2% |
(3)% |
5% |
||||||
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Total Company, adj |
7% |
(2)% |
2% |
2% |
9% |
(c)(d) | |||||
|
(a) Excludes sales from tolling arrangements, by-products and raw materials. | |||||||||||
|
(b) Excludes sales from by-products and raw materials. | |||||||||||
|
(c) Pro forma adjusted to exclude the sale of the European differentiated surfactants on December 30, 2016. | |||||||||||
|
(d) Pro forma adjusted to exclude the impact from the fire at our Pori. Finland facility. |
|
Table 4 – Reconciliation of U.S. GAAP to Non-GAAP Measures | ||||||||||||||||
|
Income Tax |
Diluted Income | |||||||||||||||
|
EBITDA |
Expense |
Net Income |
Per Share | |||||||||||||
|
Three months ended |
Three months ended |
Three months ended |
Three months ended | |||||||||||||
|
March 31, |
March 31, |
March 31, |
March 31, | |||||||||||||
|
In millions, except per share amounts |
2017 |
2016 |
2017 |
2016 |
2017 |
2016 |
2017 |
2016 | ||||||||
|
Net income |
$ 92 |
$ 62 |
$ 92 |
$ 62 |
$ 0.38 |
$ 0.26 | ||||||||||
|
Net income attributable to noncontrolling interests |
(16) |
(6) |
(16) |
(6) |
(0.07) |
(0.03) | ||||||||||
|
Net income attributable to Huntsman Corporation |
76 |
56 |
76 |
56 |
0.31 |
0.24 | ||||||||||
|
Interest expense |
48 |
50 |
||||||||||||||
|
Income tax expense from continuing operations |
23 |
27 |
(23) |
(27) |
||||||||||||
|
Income tax benefit from discontinued operations(4) |
(1) |
(1) |
||||||||||||||
|
Depreciation and amortization |
106 |
100 |
||||||||||||||
|
Acquisition and integration expenses |
3 |
9 |
- |
(3) |
3 |
6 |
0.01 |
0.03 | ||||||||
|
Loss from discontinued operations, net of tax(4) |
2 |
2 |
N/A |
N/A |
1 |
1 |
- |
- | ||||||||
|
Extraordinary gain on the acquisition of a business, net of tax |
- |
1 |
N/A |
N/A |
- |
1 |
- |
- | ||||||||
|
Certain legal settlements and related expenses |
- |
1 |
- |
- |
- |
1 |
- |
- | ||||||||
|
Net plant incident costs |
5 |
- |
(1) |
- |
4 |
- |
0.02 |
- | ||||||||
|
Business separation costs |
9 |
- |
(2) |
- |
7 |
- |
0.03 |
- | ||||||||
|
Amortization of pension and postretirement actuarial losses |
22 |
16 |
(4) |
(3) |
18 |
13 |
0.07 |
0.05 | ||||||||
|
Restructuring, impairment and plant closing costs |
36 |
13 |
(6) |
(3) |
30 |
10 |
0.12 |
0.04 | ||||||||
|
Adjusted(1) |
$ 329 |
$ 274 |
$ (36) |
$ (36) |
$ 139 |
$ 88 |
$ 0.57 |
$ 0.37 | ||||||||
|
Pro forma adjustments(2) |
- |
$ (7) |
||||||||||||||
|
Pro forma adjusted EBITDA(1) |
$ 329 |
$ 267 |
||||||||||||||
|
Adjusted income tax expense(1) |
$ 36 |
$ 36 |
||||||||||||||
|
Net income attributable to noncontrolling interests, net of tax |
16 |
6 |
||||||||||||||
|
Adjusted pre-tax income(1) |
$ 191 |
$ 130 |
||||||||||||||
|
Adjusted effective tax rate |
19% |
28% |
||||||||||||||
|
Income Tax |
Diluted Income | |||||||||||||||
|
EBITDA |
(Expense) Benefit |
Net Income |
Per Share | |||||||||||||
|
Three months ended |
Three months ended |
Three months ended |
Three months ended | |||||||||||||
|
December 31, |
December 31, |
December 31, |
December 31, | |||||||||||||
|
In millions, except per share amounts |
2016 |
2016 |
2016 |
2016 | ||||||||||||
|
Net income |
$ 137 |
$ 137 |
$ 0.57 |
|||||||||||||
|
Net income attributable to noncontrolling interests |
(9) |
(9) |
(0.04) |
|||||||||||||
|
Net income attributable to Huntsman Corporation |
128 |
128 |
0.53 |
|||||||||||||
|
Interest expense |
50 |
|||||||||||||||
|
Income tax benefit from continuing operations |
29 |
(29) |
||||||||||||||
|
Income tax benefit from discontinued operations(4) |
(1) |
|||||||||||||||
|
Depreciation and amortization |
110 |
|||||||||||||||
|
Acquisition and integration expenses |
2 |
- |
2 |
0.01 |
||||||||||||
|
Loss from discontinued operations, net of tax(4) |
2 |
N/A |
1 |
- |
||||||||||||
|
Gain on disposition of businesses/assets |
(97) |
14 |
(83) |
(0.34) |
||||||||||||
|
Certain legal settlements and related expenses |
2 |
(1) |
1 |
- |
||||||||||||
|
Net plant incident costs |
3 |
(1) |
2 |
0.01 |
||||||||||||
|
Business separation costs |
18 |
(5) |
13 |
0.05 |
||||||||||||
|
Amortization of pension and postretirement actuarial losses |
16 |
(2) |
14 |
0.06 |
||||||||||||
|
Restructuring, impairment and plant closing credits |
(6) |
- |
(6) |
(0.02) |
||||||||||||
|
Adjusted(1) |
$ 256 |
$ (24) |
$ 72 |
$ 0.30 |
||||||||||||
|
Pro forma adjustments(2) |
(6) |
|||||||||||||||
|
Pro forma adjusted EBITDA(1) |
$ 250 |
|||||||||||||||
|
Adjusted income tax expense(1) |
$ 24 |
|||||||||||||||
|
Net income attributable to noncontrolling interests, net of tax |
9 |
|||||||||||||||
|
Adjusted pre-tax income(1) |
$ 105 |
|||||||||||||||
|
Adjusted effective tax rate |
23% |
|||||||||||||||
|
See end of press release for footnote explanations |
||||||||||||||||
|
Table 5 – Selected Balance Sheet Items | ||||
|
March 31, |
December 31, | |||
|
In millions |
2017 |
2016 | ||
|
Cash |
$ 469 |
$ 425 | ||
|
Accounts and notes receivable, net |
1,508 |
1,435 | ||
|
Inventories |
1,486 |
1,344 | ||
|
Other current assets |
372 |
351 | ||
|
Property, plant and equipment, net |
4,186 |
4,212 | ||
|
Other assets |
1,467 |
1,422 | ||
|
Total assets |
$ 9,488 |
$ 9,189 | ||
|
Accounts payable |
$ 1,162 |
$ 1,102 | ||
|
Other current liabilities |
632 |
616 | ||
|
Current portion of debt |
61 |
60 | ||
|
Long-term debt |
4,161 |
4,135 | ||
|
Other liabilities |
1,823 |
1,809 | ||
|
Total equity |
1,649 |
1,467 | ||
|
Total liabilities and equity |
$ 9,488 |
$ 9,189 | ||
|
Table 6 – Outstanding Debt | ||||
|
March 31, |
December 31, | |||
|
In millions |
2017 |
2016 | ||
|
Debt: |
||||
|
Senior credit facilities |
$ 1,965 |
$ 1,967 | ||
|
Accounts receivable programs |
213 |
208 | ||
|
Senior notes |
1,841 |
1,812 | ||
|
Variable interest entities |
125 |
128 | ||
|
Other debt |
78 |
80 | ||
|
Total debt - excluding affiliates |
4,222 |
4,195 | ||
|
Total cash |
469 |
425 | ||
|
Net debt- excluding affiliates |
$ 3,753 |
$ 3,770 | ||
|
Table 7 – Summarized Statement of Cash Flows | ||||
|
Three months ended | ||||
|
March 31, | ||||
|
In millions |
2017 |
2016 | ||
|
Total cash at beginning of period(a) |
$ 425 |
$ 269 | ||
|
Net cash provided by operating activities |
93 |
88 | ||
|
Net cash used in investing activities |
(24) |
(101) | ||
|
Net cash used in financing activities |
(31) |
(38) | ||
|
Effect of exchange rate changes on cash |
5 |
2 | ||
|
Change in restricted cash |
1 |
(2) | ||
|
- | ||||
|
Total cash at end of period(a) |
$ 469 |
$ 218 | ||
|
Supplemental cash flow information: |
||||
|
Cash paid for interest |
$ (36) |
$ (35) | ||
|
Cash paid for income taxes |
(8) |
(5) | ||
|
Cash paid for capital expenditures |
(74) |
(99) | ||
|
Depreciation and amortization |
106 |
100 | ||
|
Changes in primary working capital: |
||||
|
Accounts and notes receivable |
$ (57) |
$ (105) | ||
|
Inventories |
(110) |
22 | ||
|
Accounts payable |
77 |
(31) | ||
|
Total cash used in primary working capital |
$ (90) |
$ (114) | ||
|
Three months ended | ||||
|
March 31, | ||||
|
2017 |
2016 | |||
|
Free cash flow(3): |
||||
|
Net cash provided by operating activities |
$ 93 |
$ 88 | ||
|
Capital expenditures |
(74) |
(99) | ||
|
All other investing activities excluding acquisition |
||||
|
and disposition activities(b) |
50 |
(2) | ||
|
Non recurring separation costs(c) |
13 |
|||
|
Total free cash flow |
$ 82 |
$ (13) | ||
|
Adjusted EBITDA |
$ 329 |
$ 274 | ||
|
Capital expenditures |
(74) |
(99) | ||
|
Capital reimbursements |
55 |
|||
|
Interest |
(36) |
(35) | ||
|
Income taxes |
(8) |
(5) | ||
|
Primary working capital change |
(90) |
(114) | ||
|
Restructuring |
(19) |
(20) | ||
|
Pensions |
(24) |
(22) | ||
|
Maintenance & other |
(51) |
8 | ||
|
Total free cash flow(3) |
$ 82 |
$ (13) | ||
|
(a) Includes restricted cash. | |||||||
|
(b) Represents "Acquisition of business, net of cash acquired", "Cash received from purchase price adjustment for business acquired", and "Proceeds from sale of business/assets". | |||||||
|
(c) Represents payments associated with one-time costs of the proposed separation of our Pigments & Additives business. |
|
Footnotes | |
|
(1) |
We use adjusted EBITDA to measure the operating performance of our business and for planning and evaluating the performance of our business segments. We provide adjusted net income because we feel it provides meaningful insight for the investment community into the performance of our business. We believe that net income (loss) is the performance measure calculated and presented in accordance with generally accepted accounting principles in the U.S. ("GAAP") that is most directly comparable to adjusted EBITDA and adjusted net income. Additional information with respect to our use of each of these financial measures follows: |
|
Adjusted EBITDA, adjusted net income (loss) and adjusted diluted income (loss) per share, as used herein, are not necessarily comparable to other similarly titled measures of other companies. | |
|
Adjusted EBITDA is computed by eliminating the following from net income (loss): (a) net income attributable to noncontrolling interest, net of tax; (b) interest; (c) income taxes; (d) depreciation and amortization; (e) acquisition and integration expenses, purchase accounting adjustments; (f) EBITDA from discontinued operations; (g) loss (gain) on disposition of businesses/assets; (h) loss on early extinguishment of debt; (i) certain legal settlements and related expenses; (j) net plant incident costs (credits), net; (k) business separation costs; (l) amortization of pension and postretirement actuarial losses (gains) and; (m) restructuring, impairment and plant closing costs (credits). The reconciliation of adjusted EBITDA to net income (loss) is set forth in Table 4 above. | |
|
Adjusted net income (loss) and adjusted diluted income (loss) per share are computed by eliminating the after tax impact of the following items from net income (loss): (a) net income attributable to noncontrolling interest; (b) acquisition and integration expenses, purchase accounting adjustments; (c) impact of certain foreign tax credit elections; (d) loss (income) from discontinued operations; (e) discount amortization on settlement financing associated with the terminated merger; (f) loss (gain) on disposition of businesses/assets; (g) loss on early extinguishment of debt; (h) certain legal settlements and related expenses; (i) net plant incident costs (credits), net; (j) business separation costs; (k) amortization of pension and postretirement actuarial losses (gains); and (l) restructuring, impairment and plant closing costs (credits). The income tax impacts, if any, of each adjusting item represent a ratable allocation of the total difference between the unadjusted tax expense and the total adjusted tax expense, computed without consideration of any adjusting items using a with and without approach. We do not adjust for changes in tax valuation allowances because we do not believe it provides more meaningful information than is provided under GAAP. The reconciliation of adjusted net income (loss) to net income (loss) is set forth in Table 4 above. | |
|
(2) |
Pro forma adjusted to exclude the sale of our European differentiated surfactants business to Innospec on December 30, 2016 as if it had occurred at the beginning of the relevant period. |
|
(3) |
Management internally uses a free cash flow measure: (a) to evaluate the Company's liquidity, (b) to evaluate strategic investments, (c) to plan stock buyback and dividend levels and (d) to evaluate the Company's ability to incur and service debt. Free cash flow is not a defined term under U.S. GAAP, and it should not be inferred that the entire free cash flow amount is available for discretionary expenditures. The Company defines free cash flow as cash flow provided by operating activities less cash flow used in investing activities, excluding acquisition/disposition activities and non-recurring separation costs. Free cash flow is typically derived directly from the Company's condensed consolidated statement of cash flows; however, it may be adjusted for items that affect comparability between periods. |
|
(4) |
During the first quarter 2010 we closed our Australian styrenics operations; results from associated business are treated as discontinued operations. |
About Huntsman:
Huntsman Corporation is a publicly traded global manufacturer and marketer of differentiated chemicals with 2016 revenues of approximately $10 billion. Our chemical products number in the thousands and are sold worldwide to manufacturers serving a broad and diverse range of consumer and industrial end markets. We operate more than 100 manufacturing and R&D facilities in approximately 30 countries and employ approximately 15,000 associates within our 5 distinct business divisions including the Pigments and Additives division that we intend to IPO or spin-off as Venator Materials Corporation. For more information about Huntsman, please visit the company's website at www.huntsman.com.
Social Media:
Twitter: twitter.com/Huntsman_Corp
Facebook: www.facebook.com/huntsmancorp
LinkedIn: www.linkedin.com/company/huntsman
Cautionary Statement
This release shall not constitute an offer to sell or the solicitation of an offer to buy securities. Any offers, solicitations or offers to buy, or any sales of securities will be made in accordance with the registration requirements of the Securities Act of 1933, as amended.
Forward-Looking Statements:
Statements in this release that are not historical are forward-looking statements. These statements are based on management's current beliefs and expectations. The forward-looking statements in this release are subject to uncertainty and changes in circumstances and involve risks and uncertainties that may affect the company's operations, markets, products, services, prices and other factors as discussed in the Huntsman companies' filings with the U.S. Securities and Exchange Commission. Significant risks and uncertainties may relate to, but are not limited to, volatile global economic conditions, cyclical and volatile product markets, disruptions in production at manufacturing facilities, reorganization or restructuring of Huntsman's operations, including any delay of, or other negative developments affecting, the IPO or spin-off of Venator Materials Corporation, the ability to implement cost reductions and manufacturing optimization improvements in Huntsman businesses and realize anticipated cost savings, and other financial, economic, competitive, environmental, political, legal, regulatory and technological factors. The company assumes no obligation to provide revisions to any forward-looking statements should circumstances change, except as otherwise required by applicable laws.
SOURCE Huntsman Corporation
Article Date
4/26/20174/6/2017 - Huntsman to Discuss First Quarter 2017 Results on April 26, 2017; Investor Relations Update
Huntsman to Discuss First Quarter 2017 Results on April 26, 2017; Investor Relations Update
Source: PR Newswire
Orignial Article: http://www.prnewswire.com...
THE WOODLANDS, Texas, April 6, 2017 /PRNewswire/ -- Huntsman Corporation (NYSE: HUN) will hold a conference call to discuss its first quarter 2017 financial results on Wednesday, April 26, 2017 at 9:00 a.m. ET. First quarter 2017 results will be released to the public at approximately 6:00 a.m. ET that day via PR Newswire.
|
Call-in numbers for the conference call: | |
|
U.S. participants |
(888) 679 - 8033 |
|
International participants |
(617) 213 - 4846 |
|
Passcode |
549 608 51# |
In order to facilitate the registration process, you may use the following link to pre-register for the conference call. Callers who pre-register will be given a unique PIN to gain immediate access to the call and bypass the live operator. You may pre-register at any time, including up to and after the call start time. To pre-register, please go to: https://www.theconferencingservice.com/prereg/key.process?key=PYK3Y9X8X.
Investor Relations Update
Ivan Marcuse joins Huntsman Corporation as Vice President, Investor Relations. As previously announced Kurt Ogden was named Venator Materials Corporation's Senior Vice President and CFO. Most recently Ivan Marcuse was a senior equity analyst for KeyBanc Capital Markets covering the specialty chemical sector.
Webcast Information
The conference call will be available via webcast and can be accessed from the company's website at ir.huntsman.com.
Replay Information
The conference call will be available for replay beginning April 26, 2017 and ending May 3, 2017.
|
Call-in numbers for the replay: | |
|
U.S. participants |
(888) 286 - 8010 |
|
International participants |
(617) 801 - 6888 |
|
Replay code |
29385180 |
About Huntsman:
Huntsman Corporation is a publicly traded global manufacturer and marketer of differentiated chemicals with 2016 revenues of approximately $10 billion. Our chemical products number in the thousands and are sold worldwide to manufacturers serving a broad and diverse range of consumer and industrial end markets. We operate more than 100 manufacturing and R&D facilities in approximately 30 countries and employ approximately 15,000 associates within our 5 distinct business divisions including the Pigments and Additives division that we intend to spin-off as Venator Materials Corporation. For more information about Huntsman, please visit the company's website at www.huntsman.com.
Social Media:
Twitter: twitter.com/Huntsman_Corp
Facebook: www.facebook.com/huntsmancorp
LinkedIn: www.linkedin.com/company/huntsman
Forward-Looking Statements:
Statements in this release that are not historical are forward-looking statements. These statements are based on management's current beliefs and expectations. The forward-looking statements in this release are subject to uncertainty and changes in circumstances and involve risks and uncertainties that may affect the company's operations, markets, products, services, prices and other factors as discussed in the Huntsman companies' filings with the U.S. Securities and Exchange Commission. Significant risks and uncertainties may relate to, but are not limited to, volatile global economic conditions, cyclical and volatile product markets, disruptions in production at manufacturing facilities, reorganization or restructuring of Huntsman's operations, including any delay of, or other negative developments affecting, the spin-off of Venator Materials Corporation, the ability to implement cost reductions and manufacturing optimization improvements in Huntsman businesses and realize anticipated cost savings, and other financial, economic, competitive, environmental, political, legal, regulatory and technological factors. The company assumes no obligation to provide revisions to any forward-looking statements should circumstances change, except as otherwise required by applicable laws.
SOURCE Huntsman Corporation
Article Date
4/6/2017Jon Huntsman Funds Charitable Donations With Share Proceeds
Source: PR Newswire
Orignial Article: http://www.prnewswire.com...
THE WOODLANDS, Texas, April 5, 2017 /PRNewswire/ -- Huntsman Corporation (NYSE: HUN) today announced that Jon M. Huntsman, its Executive Chairman and Founder, sold shares of the company in order to honor charitable commitments.
Jon M. Huntsman stated: "From time to time, it is necessary to monetize a portion of my investment in Huntsman Corporation in order to fund philanthropic commitments and obligations. Proceeds from this sale will be used for the grand opening of the new Children's Cancer Research wing of the Huntsman Cancer Institute on June 21, 2017."
About Huntsman:
Huntsman Corporation is a publicly traded global manufacturer and marketer of differentiated chemicals with 2016 revenues of approximately $10 billion. Our chemical products number in the thousands and are sold worldwide to manufacturers serving a broad and diverse range of consumer and industrial end markets. We operate more than 100 manufacturing and R&D facilities in approximately 30 countries and employ approximately 15,000 associates within our 5 distinct business divisions including the Pigments and Additives division that we intend to spin-off as Venator Materials Corporation. For more information about Huntsman, please visit the company's website at www.huntsman.com.
Social Media:
Twitter: twitter.com/Huntsman_Corp
Facebook: www.facebook.com/huntsmancorp
LinkedIn: www.linkedin.com/company/huntsman
Forward-Looking Statements:
Statements in this release that are not historical are forward-looking statements. These statements are based on management's current beliefs and expectations. The forward-looking statements in this release are subject to uncertainty and changes in circumstances and involve risks and uncertainties that may affect the company's operations, markets, products, services, prices and other factors as discussed in the Huntsman companies' filings with the U.S. Securities and Exchange Commission. Significant risks and uncertainties may relate to, but are not limited to, volatile global economic conditions, cyclical and volatile product markets, disruptions in production at manufacturing facilities, reorganization or restructuring of Huntsman's operations, including any delay of, or other negative developments affecting, the spin-off of Venator Materials Corporation, the ability to implement cost reductions and manufacturing optimization improvements in Huntsman businesses and realize anticipated cost savings, and other financial, economic, competitive, environmental, political, legal, regulatory and technological factors. The company assumes no obligation to provide revisions to any forward-looking statements should circumstances change, except as otherwise required by applicable laws.
SOURCE Huntsman Corporation
Article Date
4/5/2017Huntsman Reconfirms Options Following Separation to Further Create Shareholder Value
Source: PR Newswire
Orignial Article: http://www.prnewswire.com...
THE WOODLANDS, Texas, March 29, 2017 /PRNewswire/ -- Huntsman Corporation (NYSE: HUN) today noted that a Bloomberg article on March 28, 2017 reported that the Executive Chairman Jon M. Huntsman had commented in an interview that a number of companies would be suitable merger candidates for Huntsman following the planned separation of its Pigments and Additives business (to be known as Venator Materials Corporation). Huntsman noted that this statement was consistent with statements previously made to the markets by CEO Peter Huntsman who commented that "Huntsman has numerous options to increase shareholder value following the separation, including a merger-of-equals transaction, and that the Company will be carefully considering all of those options."
About Huntsman:
Huntsman Corporation is a publicly traded global manufacturer and marketer of differentiated chemicals with 2016 revenues of approximately $10 billion. Our chemical products number in the thousands and are sold worldwide to manufacturers serving a broad and diverse range of consumer and industrial end markets. We operate more than 100 manufacturing and R&D facilities in approximately 30 countries and employ approximately 15,000 associates within our 5 distinct business divisions including the Pigments and Additives division that we intend to spin-off as Venator Materials Corporation. For more information about Huntsman, please visit the company's website at www.huntsman.com.
Social Media:
Twitter: twitter.com/Huntsman_Corp
Facebook: www.facebook.com/huntsmancorp
LinkedIn: www.linkedin.com/company/huntsman
Forward-Looking Statements:
Statements in this release that are not historical are forward-looking statements. These statements are based on management's current beliefs and expectations. The forward-looking statements in this release are subject to uncertainty and changes in circumstances and involve risks and uncertainties that may affect the company's operations, markets, products, services, prices and other factors as discussed in the Huntsman companies' filings with the U.S. Securities and Exchange Commission. Significant risks and uncertainties may relate to, but are not limited to, volatile global economic conditions, cyclical and volatile product markets, disruptions in production at manufacturing facilities, reorganization or restructuring of Huntsman's operations, including any delay of, or other negative developments affecting, the spin-off of Venator Materials Corporation, the ability to implement cost reductions and manufacturing optimization improvements in Huntsman businesses and realize anticipated cost savings, and other financial, economic, competitive, environmental, political, legal, regulatory and technological factors. The company assumes no obligation to provide revisions to any forward-looking statements should circumstances change, except as otherwise required by applicable laws.
SOURCE Huntsman Corporation
Article Date
3/29/2017Huntsman Identifies Improving Business Conditions in First Quarter 2017; Provides Restart Time-line for Pori, Finland Pigment Facility
Source: PR Newswire
Orignial Article: http://www.prnewswire.com...
THE WOODLANDS, Texas, March 27, 2017 /PRNewswire/ -- Huntsman Corporation (NYSE: HUN) today announced that positive trends during the first quarter 2017 are strengthening its business. Based on current market conditions, we expect first quarter 2017 adjusted EBITDA to exceed the $274 million of adjusted EBITDA during the same quarter in 2016. Notably, we are seeing continued strength in our MDI urethanes business, specifically in the Asia Pacific region. Within our Pigments and Additives division, TiO2 price increases announced for implementation January 1st have taken effect. In addition we have been able to mitigate a portion of the impact from the outage at our Pori, Finland facility through sales of undamaged inventory such that we now expect the first quarter EBITDA impact to be less than previously anticipated.
As previously announced, on January 30, 2017 we experienced a fire at our titanium dioxide facility in Pori, Finland. Importantly there were no injuries. The site has 130,000 metric tons of capacity, representing approximately 15% of our titanium dioxide capacity and approximately 2% of global demand. We are currently able to produce a small amount of product at the facility, and expect to be fully operational around year end 2018. We expect to restart portions of the facility in phases according to the following schedule.
We are also working closely with our insurer to secure prompt reimbursement for our losses – both on the property and on the EBITDA side (for business interruption). We have already been advanced €50 million. We are responsible for retained deductibles of $15 million relating to property damage, and 60 days relating to lost earnings (business interruption) all within the first quarter 2017.
Peter R. Huntsman, President and CEO commented:
"Results in the first quarter are looking stronger than they were in the prior year. We remain focused on delivering more than $350 million of free cash flow in 2017 and growing our downstream businesses such as differentiated MDI polyurethanes. We continue to work toward the separation of our Pigments and Additives business (identified now as Venator Materials Corporation) and are targeting the end of the second quarter this year for it to take place."
As we prepare for the separation of Venator we will continue to provide increased transparency to the business. A new presentation is expected to be posted to the investor relations portion of our website at ir.huntsman.com later this week.
About Huntsman:
Huntsman Corporation is a publicly traded global manufacturer and marketer of differentiated chemicals with 2016 revenues of approximately $10 billion. Our chemical products number in the thousands and are sold worldwide to manufacturers serving a broad and diverse range of consumer and industrial end markets. We operate more than 100 manufacturing and R&D facilities in approximately 30 countries and employ approximately 15,000 associates within our 5 distinct business divisions including the Pigments and Additives division that we intend to spin-off as Venator Materials Corporation. For more information about Huntsman, please visit the company's website at www.huntsman.com.
Social Media:
Twitter: twitter.com/Huntsman_Corp
Facebook: www.facebook.com/huntsmancorp
LinkedIn: www.linkedin.com/company/huntsman
Forward-Looking Statements:
Statements in this release that are not historical are forward-looking statements. These statements are based on management's current beliefs and expectations. The forward-looking statements in this release are subject to uncertainty and changes in circumstances and involve risks and uncertainties that may affect the company's operations, markets, products, services, prices and other factors as discussed in the Huntsman companies' filings with the U.S. Securities and Exchange Commission. Significant risks and uncertainties may relate to, but are not limited to, volatile global economic conditions, cyclical and volatile product markets, disruptions in production at manufacturing facilities, reorganization or restructuring of Huntsman's operations, including any delay of, or other negative developments affecting, the spin-off of Venator Materials Corporation, the ability to implement cost reductions and manufacturing optimization improvements in Huntsman businesses and realize anticipated cost savings, and other financial, economic, competitive, environmental, political, legal, regulatory and technological factors. The company assumes no obligation to provide revisions to any forward-looking statements should circumstances change, except as otherwise required by applicable laws.
SOURCE Huntsman Corporation
Article Date
3/27/2017Huntsman Announces Intention to Close Remaining Operations At its Titanium Dioxide Facility in Calais, France
Source: PR Newswire
Orignial Article: http://www.prnewswire.com...
THE WOODLANDS, Texas, March 17, 2017 /PRNewswire/ -- Huntsman Corporation (NYSE:HUN) has today announced a plan to close the white end finishing and packaging operation of its titanium dioxide (TiO2) manufacturing facility based in Calais, France, during the third quarter 2017.
The announced plan follows the 2015 closure of the black end manufacturing operations and would result in the closure of the entire facility. 108 positions on the site will be affected.
The plan to close the Calais white end is structured to allow completion of any remaining obligations to any third parties and regulators.
Simon Turner, President of Huntsman Pigments and Additives division, commented: "The planned closure of the Calais facility further optimizes our manufacturing network and will increase our recently announced business improvement program by $15 million to a total annual benefit of $90 million. Our priority is to communicate with our Calais employees and their representative groups, along with local community leaders, to ensure that the planned closure is safely and effectively managed."
About Huntsman:
Huntsman Corporation is a publicly traded global manufacturer and marketer of differentiated chemicals with 2016 revenues of approximately $10 billion. Our chemical products number in the thousands and are sold worldwide to manufacturers serving a broad and diverse range of consumer and industrial end markets. We operate more than 100 manufacturing and R&D facilities in approximately 30 countries and employ approximately 15,000 associates within our 5 distinct business divisions including the Pigments and Additives division that we intend to spin-off as Venator Materials Corporation. For more information about Huntsman, please visit the company's website at www.huntsman.com.
Social Media:
Twitter: www.twitter.com/Huntsman_Corp
Facebook: www.facebook.com/huntsmancorp
LinkedIn: www.linkedin.com/company/huntsman
Forward-Looking Statements:
Statements in this release that are not historical are forward-looking statements. These statements are based on management's current beliefs and expectations. The forward-looking statements in this release are subject to uncertainty and changes in circumstances and involve risks and uncertainties that may affect the company's operations, markets, products, services, prices and other factors as discussed in the Huntsman companies' filings with the U.S. Securities and Exchange Commission. Significant risks and uncertainties may relate to, but are not limited to, volatile global economic conditions, cyclical and volatile product markets, disruptions in production at manufacturing facilities, reorganization or restructuring of Huntsman's operations, including any delay of, or other negative developments affecting, the spin-off of Venator Materials Corporation, the ability to implement cost reductions and manufacturing optimization improvements in Huntsman businesses and realize anticipated cost savings, and other financial, economic, competitive, environmental, political, legal, regulatory and technological factors. The company assumes no obligation to provide revisions to any forward-looking statements should circumstances change, except as otherwise required by applicable laws.
SOURCE Huntsman Corporation
Article Date
3/17/2017Huntsman Receives IRS Ruling Allowing it to Retain 40% Economic Interest in Venator
Source: PR Newswire
Orignial Article: http://www.prnewswire.com...
THE WOODLANDS, Texas, Feb. 16, 2017 /PRNewswire/ -- Huntsman Corporation (NYSE: HUN) received today a Private Letter Ruling from the IRS allowing it to retain a 40% economic interest in the tax-free spin-off of Venator Materials Corporation. Huntsman will also hold an accompanying 19.9% voting interest in Venator.
Peter R. Huntsman, our President and CEO, commented:
"The receipt of this ruling is an important milestone in the Venator spin-off process. The retention of the 40% economic interest will enable us to capture the benefits of the expected improvement in the titanium dioxide business. Our desire to retain this amount of economic interest in Venator reflects our vote of confidence in what we believe will be a successful spin-off. The future monetization of our ownership in Venator will create further value for Huntsman as we use the proceeds to reduce our debt."
About Huntsman:
Huntsman Corporation is a publicly traded global manufacturer and marketer of differentiated chemicals with 2016 revenues of approximately $10 billion. Our chemical products number in the thousands and are sold worldwide to manufacturers serving a broad and diverse range of consumer and industrial end markets. We operate more than 100 manufacturing and R&D facilities in approximately 30 countries and employ approximately 15,000 associates within our 5 distinct business divisions including the Pigments and Additives division that we intend to spin-off as Venator Materials Corporation. For more information about Huntsman, please visit the company's website at www.huntsman.com.
Social Media:
Twitter: twitter.com/Huntsman_Corp
Facebook: www.facebook.com/huntsmancorp
LinkedIn: www.linkedin.com/company/huntsman
Forward-Looking Statements:
Statements in this release that are not historical are forward-looking statements. These statements are based on management's current beliefs and expectations. The forward-looking statements in this release are subject to uncertainty and changes in circumstances and involve risks and uncertainties that may affect the company's operations, markets, products, services, prices and other factors as discussed in the Huntsman companies' filings with the U.S. Securities and Exchange Commission. Significant risks and uncertainties may relate to, but are not limited to, volatile global economic conditions, cyclical and volatile product markets, disruptions in production at manufacturing facilities, reorganization or restructuring of Huntsman's operations, including any delay of, or other negative developments affecting, the spin-off of Venator Materials Corporation, the ability to implement cost reductions and manufacturing optimization improvements in Huntsman businesses and realize anticipated cost savings, and other financial, economic, competitive, environmental, political, legal, regulatory and technological factors. The company assumes no obligation to provide revisions to any forward-looking statements should circumstances change, except as otherwise required by applicable laws.
SOURCE Huntsman Corporation
Article Date
2/16/2017Huntsman Announces Fourth Quarter and Full Year 2016 Results; Delivers a Record $686 Million of Free Cash Flow
Source: PR Newswire
Orignial Article: http://www.prnewswire.com...
THE WOODLANDS, Texas, Feb. 15, 2017 /PRNewswire/ --
Fourth Quarter 2016 Highlights
Full Year 2016 Highlights
|
Three months ended |
Twelve months ended | |||||||||
|
December 31, |
September 30, |
December 31, | ||||||||
|
In millions, except per share amounts |
2016 |
2015 |
2016 |
2016 |
2015 | |||||
|
Revenues |
$2,395 |
$2,332 |
$ 2,363 |
$ 9,657 |
$10,299 | |||||
|
Net income |
$ 137 |
$ 9 |
$ 64 |
$ 357 |
$ 126 | |||||
|
Adjusted net income(1) |
$ 72 |
$ 124 |
$ 91 |
$ 377 |
$ 492 | |||||
|
Diluted income per share |
$ 0.53 |
$ 0.02 |
$ 0.23 |
$ 1.36 |
$ 0.38 | |||||
|
Adjusted diluted income per share(1) |
$ 0.30 |
$ 0.51 |
$ 0.38 |
$ 1.57 |
$ 2.00 | |||||
|
Adjusted EBITDA(1) |
$ 256 |
$ 240 |
$ 272 |
$ 1,127 |
$ 1,221 | |||||
|
Net cash provided by operating activities |
$ 240 |
$ 188 |
$ 405 |
$ 1,088 |
$ 575 | |||||
|
Free cash flow(3) |
$ 117 |
$ (29) |
$ 300 |
$ 686 |
$ (30) | |||||
|
See end of press release for footnote explanations | ||||||||||
Huntsman Corporation (NYSE: HUN) today reported fourth quarter 2016 results with revenues of $2,395 million, net income of $137 million and adjusted EBITDA of $256 million.
Peter R. Huntsman, our President and CEO, commented:
"At the beginning of 2016, we announced our intent to generate more than $350 million of free cash flow. We delivered a record $686 million of free cash flow in 2016, including $117 million during the fourth quarter. We used this cash, together with proceeds from the sale of our European surfactants business, to repay $560 million in debt, significantly strengthening our balance sheet.
"As I look at the past year, I am impressed by the quality of earnings that our businesses have achieved and how we are positioned moving into 2017. MDI urethanes continues to show steady and impressive growth, with differentiated MDI sales volumes growing 6% compared to last year and representing 85% of MDI urethanes EBITDA. Advanced Materials and Textile Effects have become solid performers with steady and modestly improving earnings. Our Performance Products business is poised for recovery in 2017. As TiO2 prices have rebounded, our Pigments and Additives division saw earnings double from 2015 and we expect earnings to improve meaningfully in 2017, due largely to price increases in TiO2 and the cumulative benefits of restructuring.
"We are also delivering on our commitment to separate the TiO2 business through the spin-off of Venator. We continue to make steady progress with the IRS to allow Huntsman to retain a 40% economic interest in Venator."
Segment Analysis for 4Q16 Compared to 4Q15
Polyurethanes
The increase in revenues in our Polyurethanes division for the three months ended December 31, 2016 compared to the same period in 2015 was primarily due to higher MDI average selling prices and higher MDI sales volumes. MDI average selling prices increased sharply in Asia primarily as a result of a competitor's outage. MDI sales volumes increased primarily due to higher demand in the Americas region. The decrease in adjusted EBITDA was primarily due to lower MTBE margins, partially offset by higher MDI margins and sales volumes.
Performance Products
The decrease in revenues in our Performance Products division for the three months ended December 31, 2016 compared to the same period in 2015 was primarily due to lower average selling prices. Average selling prices decreased primarily in response to lower raw material costs and competitive market conditions. The decrease in adjusted EBITDA was primarily due to lower margins in our amines and maleic anhydride businesses.
Advanced Materials
The decrease in revenues in our Advanced Materials division for the three months ended December 31, 2016 compared to the same period in 2015 was due to lower sales volumes and lower average selling prices. Sales volumes decreased primarily due to soft demand for low value business in our coatings and construction market, partially offset by growth in our electrical and electronic markets. Average selling prices decreased primarily as a result of lower raw material costs. Adjusted EBITDA increased as lower costs for raw materials and fixed costs more than offset lower sales volumes and lower average selling prices.
Textile Effects
Revenues in our Textile Effects division for the three months ended December 31, 2016 compared to the same period in 2015 were essentially flat as lower local currency average selling prices were offset by higher sales volumes. Average selling prices decreased primarily due to lower raw material costs. Sales volumes increased in in Asia, Europe and South America. The increase in adjusted EBITDA was primarily due to higher volumes and lower raw material costs.
Pigments and Additives
The increase in revenues in our Pigments and Additives division for the three months ended December 31, 2016 compared to the same period in 2015 was due to higher average selling prices and higher volumes. Average selling prices increased primarily due to improved business conditions for titanium dioxide. Sales volumes increased broadly across all of the business. The increase in adjusted EBITDA was primarily due to higher average selling prices for titanium dioxide and lower costs resulting from restructuring savings.
Corporate, LIFO and Other
Adjusted EBITDA from Corporate, LIFO and Other decreased by $14 million to a loss of $52 million for the three months ended December 31, 2016 compared to a loss of $38 million for the same period in 2015. The decrease in adjusted EBITDA was primarily the result of an increase in LIFO inventory valuation expense and an increase in unallocated foreign currency exchange losses.
Liquidity, Capital Resources and Outstanding Debt
As of December 31, 2016, we had $1,208 million of combined cash and unused borrowing capacity compared to $1,023 million as of December 31, 2015.
We repaid $560 million in debt during 2016, including an early repayment of $260 million on our 2015 Extended Term Loan B on December 30, 2016.
During 2016 we spent $421 million on capital expenditures compared to $663 million in 2015. We expect to spend approximately $400 million annually on capital expenditures in 2017.
Income Taxes
During the three months ended December 31, 2016, we recorded an income tax expense of $29 million. During the same period we paid $11 million in cash for income taxes.
In 2016, our adjusted effective tax rate was 22%. We expect our long term adjusted effective tax rate will be approximately 30%. We believe our 2017 adjusted effective tax rate will be slightly less than the long term rate.
Earnings Conference Call Information
We will hold a conference call to discuss our fourth quarter 2016 financial results on Wednesday, February 15, 2017 at 10:00 a.m. ET.
|
Call-in numbers for the conference call: | |
|
U.S. participants |
(888) 713 - 4209 |
|
International participants |
(617) 213 - 4863 |
|
Passcode |
207 418 41# |
In order to facilitate the registration process, you may use the following link to pre-register for the conference call. Callers who pre-register will be given a unique PIN to gain immediate access to the call and bypass the live operator. You may pre-register at any time, including up to and after the call start time. To pre-register, please go to: https://www.theconferencingservice.com/prereg/key.process?key=PKGK6Q9D7
Webcast Information
The conference call will be available via webcast and can be accessed from the company's website at ir.huntsman.com.
Replay Information
The conference call will be available for replay beginning February 15, 2017 and ending February 22, 2017.
|
Call-in numbers for the replay: | |
|
U.S. participants |
(888) 286 - 8010 |
|
International participants |
(617) 801 - 6888 |
|
Replay code |
30397182 |
|
Table 1 – Results of Operations | ||||||||
|
Three months ended |
Twelve months ended | |||||||
|
December 31, |
December 31, | |||||||
|
In millions, except per share amounts |
2016 |
2015 |
2016 |
2015 | ||||
|
Revenues |
$2,395 |
$2,332 |
$9,657 |
$10,299 | ||||
|
Cost of goods sold |
1,988 |
1,956 |
7,979 |
8,451 | ||||
|
Gross profit |
407 |
376 |
1,678 |
1,848 | ||||
|
Operating expenses |
180 |
282 |
932 |
1,141 | ||||
|
Restructuring, impairment and plant closing (credits) costs |
(6) |
81 |
81 |
302 | ||||
|
Spin-off separation expenses |
18 |
- |
18 |
- | ||||
|
Operating income |
215 |
13 |
647 |
405 | ||||
|
Interest expense |
(50) |
(47) |
(202) |
(205) | ||||
|
Equity in income of investment in unconsolidated affiliates |
1 |
1 |
5 |
6 | ||||
|
Loss on early extinguishment of debt |
- |
- |
(3) |
(31) | ||||
|
Other income |
1 |
3 |
1 |
1 | ||||
|
Income (loss) before income taxes |
167 |
(30) |
448 |
176 | ||||
|
Income tax (expense) benefit |
(29) |
39 |
(87) |
(46) | ||||
|
Income from continuing operations |
138 |
9 |
361 |
130 | ||||
|
Loss from discontinued operations, net of tax(2) |
(1) |
- |
(4) |
(4) | ||||
|
Net income |
137 |
9 |
357 |
126 | ||||
|
Net income attributable to noncontrolling interests, net of tax |
(9) |
(5) |
(31) |
(33) | ||||
|
Net income attributable to Huntsman Corporation |
$ 128 |
$ 4 |
$ 326 |
$ 93 | ||||
|
Adjusted EBITDA(1) |
$ 256 |
$ 240 |
$1,127 |
$ 1,221 | ||||
|
Adjusted net income(1) |
$ 72 |
$ 124 |
$ 377 |
$ 492 | ||||
|
Basic income per share |
$ 0.54 |
$ 0.02 |
$ 1.38 |
$ 0.38 | ||||
|
Diluted income per share |
$ 0.53 |
$ 0.02 |
$ 1.36 |
$ 0.38 | ||||
|
Adjusted diluted income per share(1) |
$ 0.30 |
$ 0.51 |
$ 1.57 |
$ 2.00 | ||||
|
Common share information: |
||||||||
|
Basic shares outstanding |
236 |
239 |
236 |
243 | ||||
|
Diluted shares |
241 |
241 |
240 |
245 | ||||
|
Diluted shares for adjusted diluted income per share |
241 |
241 |
240 |
245 | ||||
|
See end of press release for footnote explanations |
||||||||
|
Table 2 – Results of Operations by Segment | ||||||||||||
|
Three months ended |
Twelve months ended |
|||||||||||
|
December 31, |
Better / |
December 31, |
Better / | |||||||||
|
In millions |
2016 |
2015 |
(Worse) |
2016 |
2015 |
(Worse) | ||||||
|
Segment Revenues: |
||||||||||||
|
Polyurethanes |
$ 964 |
$ 909 |
6% |
$3,667 |
$ 3,811 |
(4)% | ||||||
|
Performance Products |
515 |
552 |
(7)% |
2,126 |
2,501 |
(15)% | ||||||
|
Advanced Materials |
246 |
256 |
(4)% |
1,020 |
1,103 |
(8)% | ||||||
|
Textile Effects |
184 |
186 |
(1)% |
751 |
804 |
(7)% | ||||||
|
Pigments & Additives |
491 |
453 |
8% |
2,139 |
2,160 |
(1)% | ||||||
|
Corporate and eliminations |
(5) |
(24) |
n/m |
(46) |
(80) |
n/m | ||||||
|
Total |
$2,395 |
$2,332 |
3% |
$9,657 |
$10,299 |
(6)% | ||||||
|
Segment Adjusted EBITDA(1): |
||||||||||||
|
Polyurethanes |
$ 130 |
$ 141 |
(8)% |
$ 569 |
$ 573 |
(1)% | ||||||
|
Performance Products |
68 |
76 |
(11)% |
316 |
460 |
(31)% | ||||||
|
Advanced Materials |
50 |
48 |
4% |
223 |
220 |
1% | ||||||
|
Textile Effects |
14 |
13 |
8% |
73 |
63 |
16% | ||||||
|
Pigments & Additives |
46 |
- |
n/m |
130 |
61 |
113% | ||||||
|
Corporate, LIFO and other |
(52) |
(38) |
(37)% |
(184) |
(156) |
(18)% | ||||||
|
Total |
$ 256 |
$ 240 |
7% |
$1,127 |
$ 1,221 |
(8)% | ||||||
|
n/m = not meaningful | ||||||||||||
|
See end of press release for footnote explanations | ||||||||||||
|
Table 3 – Factors Impacting Sales Revenue | |||||||||||
|
Three months ended |
|||||||||||
|
December 31, 2016 vs. 2015 |
|||||||||||
|
Average Selling Price(a) |
|||||||||||
|
Local |
Exchange |
Sales Mix |
Sales |
||||||||
|
Currency |
Rate |
& Other |
Volume(b) |
Total |
|||||||
|
Polyurethanes |
4% |
(1)% |
0% |
3% |
6% |
||||||
|
Polyurethanes, adj |
9% |
12% |
(e) | ||||||||
|
Performance Products |
(5)% |
0% |
(3)% |
1% |
(7)% |
||||||
|
Performance Products, adj |
6% |
(2)% |
(e) | ||||||||
|
Advanced Materials |
(2)% |
0% |
1% |
(3)% |
(4)% |
||||||
|
Textile Effects |
(8)% |
(1)% |
0% |
8% |
(1)% |
||||||
|
Pigments & Additives |
7% |
(1)% |
(3)% |
5% |
8% |
||||||
|
Total Company |
1% |
(1)% |
0% |
3% |
3% |
||||||
|
Total Company, adj |
7% |
7% |
(e) | ||||||||
|
Twelve months ended |
|||||||||||
|
December 31, 2016 vs. 2015 |
|||||||||||
|
Average Selling Price(a) |
|||||||||||
|
Local |
Exchange |
Sales Mix |
Sales |
||||||||
|
Currency |
Rate |
& Other |
Volume(b) |
Total |
|||||||
|
Polyurethanes |
(9)% |
(1)% |
(5)% |
11% |
(4)% |
||||||
|
Polyurethanes, adj |
6% |
(9)% |
(c)(e) | ||||||||
|
Performance Products |
(8)% |
(1)% |
(4)% |
(2)% |
(15)% |
||||||
|
Performance Products, adj |
0% |
(13)% |
(e) | ||||||||
|
Advanced Materials |
(2)% |
(2)% |
3% |
(7)% |
(8)% |
||||||
|
Textile Effects |
(6)% |
(3)% |
(1)% |
3% |
(7)% |
||||||
|
Pigments & Additives |
(4)% |
(1)% |
0% |
4% |
(1)% |
||||||
|
Pigments & Additives, adj |
3% |
(2)% |
(d) | ||||||||
|
Total Company |
(7)% |
(1)% |
(3)% |
5% |
(6)% |
||||||
|
Total Company, adj |
4% |
(7)% |
(c)(d)(e) | ||||||||
|
(a) Excludes sales from tolling arrangements, by-products and raw materials. | |||||||||||
|
(b) Excludes sales from by-products and raw materials. | |||||||||||
|
(c) Excludes volume impact from the planned maintenance at our PO/MTBE facility that occurred in 1H15. | |||||||||||
|
(d) Excludes volume impact from nitrogen tank incident at our Uerdingen, Germany facility in 3Q15. | |||||||||||
|
(e) Excludes volume impact from weather related and other production outages in 2H16. |
|
Table 4 – Reconciliation of U.S. GAAP to Non-GAAP Measures | ||||||||||||||||
|
Income Tax |
Diluted Income | |||||||||||||||
|
EBITDA |
(Expense) Benefit |
Net Income |
Per Share | |||||||||||||
|
Three months ended |
Three months ended |
Three months ended |
Three months ended | |||||||||||||
|
December 31, |
December 31, |
December 31, |
December 31, | |||||||||||||
|
In millions, except per share amounts |
2016 |
2015 |
2016 |
2015 |
2016 |
2015 |
2016 |
2015 | ||||||||
|
Net income |
$ 137 |
$ 9 |
$ 137 |
$ 9 |
$ 0.57 |
$ 0.04 | ||||||||||
|
Net income attributable to noncontrolling interests |
(9) |
(5) |
(9) |
(5) |
(0.04) |
(0.02) | ||||||||||
|
Net income attributable to Huntsman Corporation |
128 |
4 |
128 |
4 |
0.53 |
0.02 | ||||||||||
|
Interest expense |
50 |
47 |
||||||||||||||
|
Income tax expense (benefit) from continuing operations |
29 |
(39) |
(29) |
39 |
||||||||||||
|
Income tax benefit from discontinued operations(2) |
(1) |
(3) |
||||||||||||||
|
Depreciation and amortization |
110 |
102 |
||||||||||||||
|
Acquisition and integration expenses, purchase accounting adjustments |
2 |
22 |
- |
(6) |
2 |
16 |
0.01 |
0.07 | ||||||||
|
Loss from discontinued operations, net of tax(2) |
2 |
3 |
N/A |
N/A |
1 |
- |
- |
- | ||||||||
|
(Gain) loss on disposition of businesses/assets |
(97) |
1 |
14 |
- |
(83) |
1 |
(0.34) |
- | ||||||||
|
Loss on early extinguishment of debt |
- |
- |
- |
- |
- |
- |
- |
- | ||||||||
|
Certain legal settlements and related expenses |
2 |
1 |
(1) |
- |
1 |
1 |
- |
- | ||||||||
|
Plant incident remediation costs, net |
3 |
1 |
(1) |
- |
2 |
1 |
0.01 |
- | ||||||||
|
Business separation costs |
18 |
- |
(5) |
- |
13 |
- |
0.05 |
- | ||||||||
|
Amortization of pension and postretirement actuarial losses |
16 |
18 |
(2) |
(3) |
14 |
15 |
0.06 |
0.06 | ||||||||
|
Restructuring, impairment, plant closing and transition (credits) costs |
(6) |
83 |
- |
3 |
(6) |
86 |
(0.02) |
0.36 | ||||||||
|
Adjusted(1) |
$ 256 |
$ 240 |
$ (24) |
$ 33 |
$ 72 |
$ 124 |
$ 0.30 |
$ 0.51 | ||||||||
|
Adjusted income tax expense (benefit)(4) |
$ 24 |
$ (33) |
||||||||||||||
|
Net income attributable to noncontrolling interests, net of tax |
9 |
5 |
||||||||||||||
|
Adjusted pre-tax income(1) |
$ 105 |
$ 96 |
||||||||||||||
|
Adjusted effective tax rate |
23% |
-34% |
||||||||||||||
|
Income Tax |
Diluted Income | |||||||||||||||
|
EBITDA |
(Expense) Benefit |
Net Income |
Per Share | |||||||||||||
|
Three months ended |
Three months ended |
Three months ended |
Three months ended | |||||||||||||
|
September 30, |
September 30, |
September 30, |
September 30, | |||||||||||||
|
In millions, except per share amounts |
2016 |
2016 |
2016 |
2016 | ||||||||||||
|
Net income |
$ 64 |
$ 64 |
$ 0.27 |
|||||||||||||
|
Net income attributable to noncontrolling interests |
(9) |
(9) |
(0.04) |
|||||||||||||
|
Net income attributable to Huntsman Corporation |
55 |
55 |
0.23 |
|||||||||||||
|
Interest expense |
52 |
|||||||||||||||
|
Income tax benefit from continuing operations |
(1) |
1 |
||||||||||||||
|
Depreciation and amortization |
113 |
|||||||||||||||
|
Acquisition and integration expenses, purchase accounting adjustments |
8 |
(4) |
4 |
0.02 |
||||||||||||
|
Loss from discontinued operations, net of tax(2) |
1 |
N/A |
1 |
- |
||||||||||||
|
Gain on disposition of businesses/assets |
(22) |
2 |
(20) |
(0.08) |
||||||||||||
|
Loss on early extinguishment of debt |
1 |
- |
1 |
- |
||||||||||||
|
Certain legal settlements and related expenses |
- |
- |
- |
- |
||||||||||||
|
Plant incident remediation costs, net |
4 |
- |
4 |
0.02 |
||||||||||||
|
Amortization of pension and postretirement actuarial losses |
16 |
(4) |
12 |
0.05 |
||||||||||||
|
Restructuring, impairment, plant closing and transition costs |
45 |
(11) |
34 |
0.14 |
||||||||||||
|
Adjusted(1) |
$ 272 |
$ (16) |
$ 91 |
$ 0.38 |
||||||||||||
|
Adjusted income tax expense(4) |
$ 16 |
|||||||||||||||
|
Net income attributable to noncontrolling interests, net of tax |
9 |
|||||||||||||||
|
Adjusted pre-tax income(1) |
$ 116 |
|||||||||||||||
|
Adjusted effective tax rate |
14% |
|||||||||||||||
|
Income Tax |
Diluted Income | |||||||||||||||
|
EBITDA |
(Expense) Benefit |
Net Income |
Per Share | |||||||||||||
|
Twelve months ended |
Twelve months ended |
Twelve months ended |
Twelve months ended | |||||||||||||
|
December 31, |
December 31, |
December 31, |
December 31, | |||||||||||||
|
In millions, except per share amounts |
2016 |
2015 |
2016 |
2015 |
2016 |
2015 |
2016 |
2015 | ||||||||
|
Net income |
$ 357 |
$ 126 |
$ 357 |
$ 126 |
$ 1.49 |
$ 0.51 | ||||||||||
|
Net income attributable to noncontrolling interests |
(31) |
(33) |
(31) |
(33) |
(0.13) |
(0.13) | ||||||||||
|
Net income attributable to Huntsman Corporation |
326 |
93 |
326 |
93 |
1.36 |
0.38 | ||||||||||
|
Interest expense |
202 |
205 |
||||||||||||||
|
Income tax expense from continuing operations |
87 |
46 |
(87) |
(46) |
||||||||||||
|
Income tax benefit from discontinued operations(2) |
(2) |
(2) |
||||||||||||||
|
Depreciation and amortization |
432 |
399 |
||||||||||||||
|
Acquisition and integration expenses, purchase accounting adjustments |
23 |
53 |
(7) |
(13) |
16 |
40 |
0.07 |
0.16 | ||||||||
|
Loss from discontinued operations, net of tax(2) |
6 |
6 |
N/A |
N/A |
4 |
4 |
0.02 |
0.02 | ||||||||
|
(Gain) loss on disposition of businesses/assets |
(119) |
2 |
16 |
- |
(103) |
2 |
(0.43) |
0.01 | ||||||||
|
Loss on early extinguishment of debt |
3 |
31 |
(1) |
(11) |
2 |
20 |
0.01 |
0.08 | ||||||||
|
Certain legal settlements and related expenses |
3 |
4 |
(1) |
(1) |
2 |
3 |
0.01 |
0.01 | ||||||||
|
Plant incident remediation costs, net |
1 |
4 |
- |
(1) |
1 |
3 |
- |
0.01 | ||||||||
|
Business separation costs |
18 |
- |
(5) |
- |
13 |
- |
0.05 |
- | ||||||||
|
Amortization of pension and postretirement actuarial losses |
65 |
74 |
(12) |
(17) |
53 |
57 |
0.22 |
0.23 | ||||||||
|
Restructuring, impairment, plant closing and transition costs |
82 |
306 |
(19) |
(36) |
63 |
270 |
0.26 |
1.10 | ||||||||
|
Adjusted(1) |
$ 1,127 |
$ 1,221 |
$ (116) |
$ (125) |
$ 377 |
$ 492 |
$ 1.57 |
$ 2.00 | ||||||||
|
Adjusted income tax expense(4) |
$ 116 |
$ 125 |
||||||||||||||
|
Net income attributable to noncontrolling interests, net of tax |
31 |
33 |
||||||||||||||
|
Adjusted pre-tax income(1) |
$ 524 |
$ 650 |
||||||||||||||
|
Adjusted effective tax rate |
22% |
19% |
||||||||||||||
|
See end of press release for footnote explanations |
||||||||||||||||
|
Table 5 – Selected Balance Sheet Items | ||||||
|
December 31, |
September 30, |
December 31, | ||||
|
In millions |
2016 |
2016 |
2015 | |||
|
Cash |
$ 425 |
$ 450 |
$ 269 | |||
|
Accounts and notes receivable, net |
1,435 |
1,466 |
1,449 | |||
|
Inventories |
1,344 |
1,444 |
1,692 | |||
|
Other current assets |
351 |
392 |
424 | |||
|
Property, plant and equipment, net |
4,212 |
4,298 |
4,446 | |||
|
Assets held for sale |
- |
121 |
- | |||
|
Other assets |
1,422 |
1,536 |
1,540 | |||
|
Total assets |
$ 9,189 |
$ 9,707 |
$ 9,820 | |||
|
Accounts payable |
$ 1,102 |
$ 1,026 |
$ 1,061 | |||
|
Other current liabilities |
616 |
655 |
686 | |||
|
Current portion of debt |
60 |
88 |
170 | |||
|
Long-term debt |
4,135 |
4,468 |
4,625 | |||
|
Liabilities held for sale |
- |
30 |
- | |||
|
Other liabilities |
1,809 |
1,669 |
1,649 | |||
|
Total equity |
1,467 |
1,771 |
1,629 | |||
|
Total liabilities and equity |
$ 9,189 |
$ 9,707 |
$ 9,820 | |||
|
Table 6 – Outstanding Debt | ||||||
|
December 31, |
September 30, |
December 31, | ||||
|
In millions |
2016 |
2016 |
2015 | |||
|
Debt: |
||||||
|
Senior credit facilities |
$ 1,967 |
$ 2,234 |
$ 2,454 | |||
|
Accounts receivable programs |
208 |
218 |
215 | |||
|
Senior notes |
1,812 |
1,873 |
1,850 | |||
|
Variable interest entities |
128 |
134 |
151 | |||
|
Other debt |
80 |
97 |
125 | |||
|
Total debt - excluding affiliates |
4,195 |
4,556 |
4,795 | |||
|
Total cash |
425 |
450 |
269 | |||
|
Net debt- excluding affiliates |
$ 3,770 |
$ 4,106 |
$ 4,526 | |||
|
Table 7 – Summarized Statement of Cash Flows | |||||
|
Three months ended |
Twelve months ended | ||||
|
December 31, |
December 31, | ||||
|
In millions |
2016 |
2016 |
2015 | ||
|
Total cash at beginning of period(a) |
$ 450 |
$ 269 |
$ 870 | ||
|
Net cash provided by operating activities |
240 |
1,088 |
575 | ||
|
Net cash provided by (used in) investing activities |
68 |
(202) |
(600) | ||
|
Net cash used in financing activities |
(326) |
(723) |
(562) | ||
|
Effect of exchange rate changes on cash |
(7) |
(6) |
(16) | ||
|
Change in restricted cash |
- |
(1) |
2 | ||
|
- |
|||||
|
Total cash at end of period(a) |
$ 425 |
$ 425 |
$ 269 | ||
|
Supplemental cash flow information: |
|||||
|
Cash paid for interest |
$ (66) |
$ (205) |
$ (225) | ||
|
Cash paid for income taxes |
(11) |
(40) |
(126) | ||
|
Cash paid for capital expenditures |
(131) |
(421) |
(663) | ||
|
Depreciation and amortization |
110 |
432 |
399 | ||
|
Changes in primary working capital: |
|||||
|
Accounts and notes receivable |
$ (29) |
$ (35) |
$ 121 | ||
|
Inventories |
37 |
283 |
179 | ||
|
Accounts payable |
72 |
56 |
(157) | ||
|
Total cash provided by primary working capital |
$ 80 |
$ 304 |
$ 143 | ||
|
Three months ended |
Twelve months ended | ||||
|
December 31, |
December 31, | ||||
|
2016 |
2016 |
2015 | |||
|
Free cash flow(3): |
|||||
|
Net cash provided by operating activities |
$ 240 |
$1,088 |
$ 575 | ||
|
Capital expenditures |
(131) |
(421) |
(663) | ||
|
All other investing activities excluding acquisition and disposition activities(b) |
- |
11 |
58 | ||
|
Non recurring separation costs(c) |
8 |
8 |
- | ||
|
Total free cash flow |
$ 117 |
$ 686 |
$ (30) | ||
|
Adjusted EBITDA |
$ 256 |
$1,127 |
$1,221 | ||
|
Capital expenditures |
(131) |
(421) |
(663) | ||
|
Capital reimbursements |
3 |
31 |
15 | ||
|
Interest |
(66) |
(205) |
(225) | ||
|
Income taxes |
(11) |
(40) |
(126) | ||
|
Primary working capital change |
80 |
304 |
143 | ||
|
Restructuring |
(18) |
(103) |
(198) | ||
|
Pensions |
(24) |
(87) |
(114) | ||
|
Maintenance & other |
28 |
80 |
(83) | ||
|
Total free cash flow(3) |
$ 117 |
$ 686 |
$ (30) | ||
|
(a) Includes restricted cash. | ||||||
|
(b) Represents "Acquisition of business, net of cash acquired", "Cash received from purchase price adjustment for business acquired", and "Proceeds from sale of business/assets". | ||||||
|
(c) Represents payments associated with one-time costs of the proposed spin-off of our Pigments & Additives business. | ||||||
|
Footnotes | |
|
(1) |
We use adjusted EBITDA to measure the operating performance of our business and for planning and evaluating the performance of our business segments. We provide adjusted net income because we feel it provides meaningful insight for the investment community into the performance of our business. We believe that net income (loss) is the performance measure calculated and presented in accordance with generally accepted accounting principles in the U.S. ("GAAP") that is most directly comparable to adjusted EBITDA and adjusted net income. Additional information with respect to our use of each of these financial measures follows: |
|
Adjusted EBITDA, adjusted net income (loss) and adjusted diluted income (loss) per share, as used herein, are not necessarily comparable to other similarly titled measures of other companies. | |
|
Adjusted EBITDA is computed by eliminating the following from net income (loss): (a) net income attributable to noncontrolling interest, net of tax; (b) interest; (c) income taxes; (d) depreciation and amortization; (e) acquisition and integration expenses, purchase accounting adjustments; (f) EBITDA from discontinued operations; (g) loss (gain) on disposition of businesses/assets; (h) loss on early extinguishment of debt; (i) certain legal settlements and related expenses; (j) plant incident remediation costs (credits), net; (k) business separation costs; (l) amortization of pension and postretirement actuarial losses (gains) and; (m) restructuring, impairment, plant closing and transition costs (credits). The reconciliation of adjusted EBITDA to net income (loss) is set forth in Table 4 above. | |
|
Adjusted net income (loss) and adjusted diluted income (loss) per share are computed by eliminating the after tax impact of the following items from net income (loss): (a) net income attributable to noncontrolling interest; (b) acquisition and integration expenses, purchase accounting adjustments; (c) impact of certain foreign tax credit elections; (d) loss (income) from discontinued operations; (e) discount amortization on settlement financing associated with the terminated merger; (f) loss (gain) on disposition of businesses/assets; (g) loss on early extinguishment of debt; (h) certain legal settlements and related expenses; (i) plant incident remediation costs (credits), net; (j) business separation costs; (k) amortization of pension and postretirement actuarial losses (gains); and (l) restructuring, impairment, plant closing and transition costs (credits). The income tax impacts, if any, of each adjusting item represent a ratable allocation of the total difference between the unadjusted tax expense and the total adjusted tax expense, computed without consideration of any adjusting items using a with and without approach. We do not adjust for changes in tax valuation allowances because we do not believe it provides more meaningful information than is provided under GAAP. The reconciliation of adjusted net income (loss) to net income (loss) is set forth in Table 4 above. | |
|
(2) |
During the first quarter 2010 we closed our Australian styrenics operations; results from associated business are treated as discontinued operations. |
|
(3) |
Management internally uses a free cash flow measure: (a) to evaluate the Company's liquidity, (b) to evaluate strategic investments, (c) to plan stock buyback and dividend levels and (d) to evaluate the Company's ability to incur and service debt. Free cash flow is not a defined term under U.S. GAAP, and it should not be inferred that the entire free cash flow amount is available for discretionary expenditures. The Company defines free cash flow as cash flow provided by operating activities less cash flow used in investing activities, excluding merger and acquisition activities. Free cash flow is typically derived directly from the Company's condensed consolidated statement of cash flows; however, it may be adjusted for items that affect comparability between periods. |
About Huntsman:
Huntsman Corporation is a publicly traded global manufacturer and marketer of differentiated chemicals with 2016 revenues of approximately $10 billion. Our chemical products number in the thousands and are sold worldwide to manufacturers serving a broad and diverse range of consumer and industrial end markets. We operate more than 100 manufacturing and R&D facilities in approximately 30 countries and employ approximately 15,000 associates within our 5 distinct business divisions including the Pigments and Additives division that we intend to spin-off as Venator Materials Corporation. For more information about Huntsman, please visit the company's website at www.huntsman.com.
Social Media:
Twitter: twitter.com/Huntsman_Corp
Facebook: www.facebook.com/huntsmancorp
LinkedIn: www.linkedin.com/company/huntsman
Forward-Looking Statements:
Statements in this release that are not historical are forward-looking statements. These statements are based on management's current beliefs and expectations. The forward-looking statements in this release are subject to uncertainty and changes in circumstances and involve risks and uncertainties that may affect the company's operations, markets, products, services, prices and other factors as discussed in the Huntsman companies' filings with the U.S. Securities and Exchange Commission. Significant risks and uncertainties may relate to, but are not limited to, volatile global economic conditions, cyclical and volatile product markets, disruptions in production at manufacturing facilities, reorganization or restructuring of Huntsman's operations, including any delay of, or other negative developments affecting, the spin-off of Venator Materials Corporation, the ability to implement cost reductions and manufacturing optimization improvements in Huntsman businesses and realize anticipated cost savings, and other financial, economic, competitive, environmental, political, legal, regulatory and technological factors. The company assumes no obligation to provide revisions to any forward-looking statements should circumstances change, except as otherwise required by applicable laws.
SOURCE Huntsman Corporation
Article Date
2/15/20172/9/2017 - Huntsman Announces First Quarter 2017 Common Dividend and 2017 Annual Meeting of Stockholders
Huntsman Announces First Quarter 2017 Common Dividend and 2017 Annual Meeting of Stockholders
Source: PR Newswire
Orignial Article: http://www.prnewswire.com...
THE WOODLANDS, Texas, Feb. 9, 2017 /PRNewswire/ -- Huntsman Corporation (NYSE: HUN) today announced that its board of directors has declared a $0.125 per share cash dividend on its common stock. The dividend is payable on March 31, 2017, to stockholders of record as of March 15, 2017.
Huntsman Corporation will hold its 2017 annual meeting of stockholders on Thursday, May 4, 2017 at 8:30 a.m., local time, at The Westin The Woodlands, 2 Waterway Square Place, The Woodlands, Texas 77380. Holders of record as of the close of business on March 10, 2017 will be entitled to vote at the meeting.
About Huntsman:
Huntsman Corporation is a publicly traded global manufacturer and marketer of differentiated chemicals with 2015 revenues of more than $10 billion. Our chemical product number in the thousands and are sold worldwide to manufacturers serving a broad and diverse range of consumer and industrial end markets. We operate more than 100 manufacturing and R&D facilities in approximately 30 countries and employ approximately 15,000 associates within our 5 distinct business divisions, including the Pigments and Additives division that we intend to spin-off as Venator Materials Corporation. For more information, please visit the company's website at www.huntsman.com
Media:
Twitter: twitter.com/Huntsman_Corp
Facebook: www.facebook.com/huntsmancorp
LinkedIn: www.linkedin.com/company/huntsman
Forward-Looking Statements:
Statements in this release that are not historical are forward-looking statements. These statements are based on management's current beliefs and expectations. The forward-looking statements in this release are subject to uncertainty and changes in circumstances and involve risks and uncertainties that may affect the company's operations, markets, products, services, prices and other factors as discussed in the Huntsman companies' filings with the U.S. Securities and Exchange Commission. Significant risks and uncertainties may relate to, but are not limited to, volatile global economic conditions, cyclical and volatile product markets, disruptions in production at manufacturing facilities, reorganization or restructuring of Huntsman's operations, including any delay of, or other negative developments affecting, the spin-off of Venator Materials Corporation, the ability to implement cost reductions and manufacturing optimization improvements in Huntsman businesses and realize anticipated cost savings, and other financial, economic, competitive, environmental, political, legal, regulatory and technological factors. The company assumes no obligation to provide revisions to any forward-looking statements should circumstances change, except as otherwise required by applicable laws.
SOURCE Huntsman Corporation
Article Date
2/9/2017Huntsman Announces Global Titanium Dioxide Price Increases
Source: PR Newswire
Orignial Article: http://www.prnewswire.com...
THE WOODLANDS, Texas, Feb. 9, 2017 /PRNewswire/ -- Huntsman Corporation (NYSE: HUN) today announced global price increases for all its titanium dioxide pigments.
The following increases are effective April 1, 2017 or as contracts allow.
The following increase is effective March 1, 2017 or as contracts allow.
About Huntsman:
Huntsman Corporation is a publicly traded global manufacturer and marketer of differentiated chemicals with 2015 revenues of more than $10 billion. Our chemical product number in the thousands and are sold worldwide to manufacturers serving a broad and diverse range of consumer and industrial end markets. We operate more than 100 manufacturing and R&D facilities in approximately 30 countries and employ approximately 15,000 associates within our 5 distinct business divisions, including the Pigments and Additives division that we intend to spin-off as Venator Materials Corporation. For more information, please visit the company's website at www.huntsman.com
Media:
Twitter: twitter.com/Huntsman_Corp
Facebook: www.facebook.com/huntsmancorp
LinkedIn: www.linkedin.com/company/huntsman
Forward-Looking Statements:
Statements in this release that are not historical are forward-looking statements. These statements are based on management's current beliefs and expectations. The forward-looking statements in this release are subject to uncertainty and changes in circumstances and involve risks and uncertainties that may affect the company's operations, markets, products, services, prices and other factors as discussed in the Huntsman companies' filings with the U.S. Securities and Exchange Commission. Significant risks and uncertainties may relate to, but are not limited to, volatile global economic conditions, cyclical and volatile product markets, disruptions in production at manufacturing facilities, reorganization or restructuring of Huntsman's operations, including any delay of, or other negative developments affecting, the spin-off of Venator Materials Corporation, the ability to implement cost reductions and manufacturing optimization improvements in Huntsman businesses and realize anticipated cost savings, and other financial, economic, competitive, environmental, political, legal, regulatory and technological factors. The company assumes no obligation to provide revisions to any forward-looking statements should circumstances change, except as otherwise required by applicable laws.
SOURCE Huntsman Corporation
Article Date
2/9/20172/8/2017 - Huntsman Joins American Chemistry Council; Peter Huntsman Appointed to Executive Committee and Board
Huntsman Joins American Chemistry Council; Peter Huntsman Appointed to Executive Committee and Board
Source: PR Newswire
Orignial Article: http://www.prnewswire.com...
THE WOODLANDS, Texas, Feb. 8, 2017 /PRNewswire/ -- Huntsman Corporation (NYSE: HUN) has joined the American Chemistry Council (ACC), and President and CEO Peter Huntsman has been appointed to ACC's Executive Committee and Board of Directors. ACC is the chemical industry's leading advocacy organization.
As a global leader developing some of the world's most innovative products, Huntsman's membership in the ACC is consistent with the company's values, including stakeholder engagement, sustainability, sound science and technology leadership.
Peter Huntsman said, "We are enthusiastic about joining the ACC and look forward to working with them to address many of the challenges facing our industry. Under the leadership of ACC President & CEO Cal Dooley, the organization has a proven track record of success and has been an effective industry advocate for the critical role we play in the lives of people around the world."
Cal Dooley added, "Huntsman Corporation is an iconic American company and we are thrilled to welcome them to the ACC family. ACC has achieved great success and I look forward to working alongside Peter and his team as we build on our momentum in 2017 and beyond."
About Huntsman:
Huntsman Corporation is a publicly traded global manufacturer and marketer of differentiated chemicals with 2015 revenues of more than $10 billion. Our chemical products number in the thousands and are sold worldwide to manufacturers serving a broad and diverse range of consumer and industrial end markets. We operate more than 100 manufacturing and R&D facilities in approximately 30 countries and employ approximately 15,000 associates within our 5 distinct business divisions including the Pigments and Additives division that we intend to spin-off as Venator Materials Corporation. For more information about Huntsman, please visit the company's website at www.huntsman.com.
Social Media:
Twitter: www.twitter.com/Huntsman_Corp
Facebook: www.facebook.com/huntsmancorp
LinkedIn: www.linkedin.com/company/huntsman
Forward-Looking Statements:
Statements in this release that are not historical are forward-looking statements. These statements are based on management's current beliefs and expectations. The forward-looking statements in this release are subject to uncertainty and changes in circumstances and involve risks and uncertainties that may affect the company's operations, markets, products, services, prices and other factors as discussed in the Huntsman companies' filings with the U.S. Securities and Exchange Commission. Significant risks and uncertainties may relate to, but are not limited to, volatile global economic conditions, cyclical and volatile product markets, disruptions in production at manufacturing facilities, reorganization or restructuring of Huntsman's operations, including any delay of, or other negative developments affecting, the spin-off of Venator Materials Corporation, the ability to implement cost reductions and manufacturing optimization improvements in Huntsman businesses and realize anticipated cost savings, and other financial, economic, competitive, environmental, political, legal, regulatory and technological factors. The company assumes no obligation to provide revisions to any forward-looking statements should circumstances change, except as otherwise required by applicable laws.
SOURCE Huntsman Corporation
Article Date
2/8/2017Huntsman's Pori, Finland Facility Experiences Fire
Source: PR Newswire
Orignial Article: http://www.prnewswire.com...
THE WOODLANDS, Texas, Jan. 31, 2017 /PRNewswire/ -- A fire started January 30 at Huntsman Corporation's (NYSE: HUN) titanium dioxide manufacturing facility in Pori, Finland. All Huntsman associates at the site have been accounted for and there were no injuries. The fire brigade responded quickly and extinguished the fire.
Pori has a capacity of 130,000 metric tons, which represents approximately 15% of Huntsman's total titanium dioxide capacity and approximately 10% of total European demand. The site is insured for property damage as well as earnings losses. Huntsman is committed to repairing the facility as quickly as possible to ensure that customers can continue to receive the quality products offered by our Pori site.
The ongoing process to separate the Pigments and Additives business from Huntsman is proceeding.
About Huntsman:
Huntsman Corporation is a publicly traded global manufacturer and marketer of differentiated chemicals with 2015 revenues of more than $10 billion. Our chemical product number in the thousands and are sold worldwide to manufacturers serving a broad and diverse range of consumer and industrial end markets. We operate more than 100 manufacturing and R&D facilities in approximately 30 countries and employ approximately 15,000 associates within our 5 distinct business divisions, including the Pigments and Additives division that we intend to spin-off as Venator Materials Corporation. For more information, please visit the company's website at www.huntsman.com
Media:
Twitter: twitter.com/Huntsman_Corp
Facebook: www.facebook.com/huntsmancorp
LinkedIn: www.linkedin.com/company/huntsman
Forward-Looking Statements:
Statements in this release that are not historical are forward-looking statements. These statements are based on management's current beliefs and expectations. The forward-looking statements in this release are subject to uncertainty and changes in circumstances and involve risks and uncertainties that may affect the company's operations, markets, products, services, prices and other factors as discussed in the Huntsman companies' filings with the U.S. Securities and Exchange Commission. Significant risks and uncertainties may relate to, but are not limited to, financial, economic, competitive, environmental, political, legal, regulatory and technological factors. The company assumes no obligation to provide revisions to any forward-looking statements should circumstances change, except as otherwise required by applicable laws.
SOURCE Huntsman Corporation
Article Date
1/31/2017Huntsman to Discuss Fourth Quarter 2016 Results on February 15, 2017
Source: PR Newswire
Orignial Article: http://www.prnewswire.com...
THE WOODLANDS, Texas, Jan. 25, 2017 /PRNewswire/ -- Huntsman Corporation (NYSE: HUN) will hold a conference call to discuss its fourth quarter 2016 financial results on Wednesday, February 15, 2017 at 10:00 a.m. ET. Fourth quarter 2016 results will be released to the public at approximately 6:00 a.m. ET that day via PR Newswire.
|
Call-in numbers for the conference call: | |
|
U.S. participants |
(888) 713 - 4209 |
|
International participants |
(617) 213 - 4863 |
|
Passcode |
207 418 41# |
In order to facilitate the registration process, you may use the following link to pre-register for the conference call. Callers who pre-register will be given a unique PIN to gain immediate access to the call and bypass the live operator. You may pre-register at any time, including up to and after the call start time. To pre-register, please go to: https://www.theconferencingservice.com/prereg/key.process?key=PKGK6Q9D7
Webcast Information
The conference call will be available via webcast and can be accessed from the company's website at ir.huntsman.com.
Replay Information
The conference call will be available for replay beginning February 15, 2017 and ending February 22, 2017.
|
Call-in numbers for the replay: | |
|
U.S. participants |
(888) 286 - 8010 |
|
International participants |
(617) 801 - 6888 |
|
Replay code |
30397182 |
About Huntsman:
Huntsman Corporation is a publicly traded global manufacturer and marketer of differentiated chemicals with 2015 revenues of more than $10 billion. Our chemical products number in the thousands and are sold worldwide to manufacturers serving a broad and diverse range of consumer and industrial end markets. We operate more than 100 manufacturing and R&D facilities in approximately 30 countries and employ approximately 15,000 associates within our 5 distinct business divisions including the Pigments and Additives division that we intend to spin-off as Venator Materials Corporation. For more information about Huntsman, please visit the company's website at www.huntsman.com.
Social Media:
Twitter: twitter.com/Huntsman_Corp
Facebook: www.facebook.com/huntsmancorp
LinkedIn: www.linkedin.com/company/huntsman
Forward-Looking Statements:
Statements in this release that are not historical are forward-looking statements. These statements are based on management's current beliefs and expectations. The forward-looking statements in this release are subject to uncertainty and changes in circumstances and involve risks and uncertainties that may affect the company's operations, markets, products, services, prices and other factors as discussed in the Huntsman companies' filings with the U.S. Securities and Exchange Commission. Significant risks and uncertainties may relate to, but are not limited to, financial, economic, competitive, environmental, political, legal, regulatory and technological factors. The company assumes no obligation to provide revisions to any forward-looking statements should circumstances change, except as otherwise required by applicable laws.
SOURCE Huntsman Corporation
Article Date
1/25/20171/17/2017 - Huntsman Retains Textile Effects Business; Names Spin 'Venator Materials Corporation'; Amends Form 10
Huntsman Retains Textile Effects Business; Names Spin 'Venator Materials Corporation'; Amends Form 10
Source: PR Newswire
Orignial Article: http://www.prnewswire.com...
THE WOODLANDS, Texas, Jan. 17, 2017 /PRNewswire/ -- Huntsman Corporation (NYSE: HUN) today announced that it has decided to retain the Textile Effects business and exclude it from its planned Pigments and Additives spin-off. Strong pricing recovery for titanium dioxide and the identification of business improvement opportunities representing more than $75 million in annual EBITDA are expected to significantly enhance the financial strength of Venator's business. The $75 million in business improvements are incremental to current earnings and are expected to be completed by the end of 2018.
Huntsman also announced that the name of its planned spin-off will be Venator Materials Corporation. Venator is the Latin word for hunter and is intended, in part, to acknowledge the Huntsman legacy. Venator shares are expected to trade on the New York Stock Exchange under the ticker VNTR after the distribution to Huntsman's shareholders, which remains targeted for the second quarter of 2017.
Peter R. Huntsman, Huntsman Corporation President and CEO, commented:
"We are making significant progress toward the spin-off and are pleased with the Pigments and Additives business recovery. We expect Venator will be a premier pigments company unencumbered by excessive debt or other unrelated liabilities. Improved titanium dioxide pricing combined with the identification of business improvement opportunities that are incremental to current earnings are expected to more than offset the free cash flow that Venator would have received from the Textile Effects business.
"In addition to the progress we are making on the spin of our Pigments and Additives business, we continue to improve our free cash flow generation and grow our downstream differentiated businesses. During 2016, we also repaid approximately $550 million of debt and significantly strengthened our balance sheet."
Form 10
Venator Materials Corporation's Registration Statement on Form 10 is available on Venator's website at www.venatorcorp.com and the SEC's website at www.sec.gov. The completion of the spin-off is subject to the satisfaction or waiver of a number of conditions, including the Registration Statement on Form 10 for Venator Materials Corporation's common stock being declared effective by the SEC and certain other conditions described in the information statement included in the Form 10.
To request a copy of the Venator logo email: karen_fenwick@huntsman.com
Conference Call Information
We will hold a conference call to discuss this announcement on Tuesday, January 17, 2017 at 9:00 a.m. ET.
|
Call-in numbers for the conference call: | |
|
U.S. participants |
(888) 679 – 8018 |
|
International participants |
(617) 213 – 4845 |
|
Passcode |
894 191 97# |
In order to facilitate the registration process, you may use the following link to pre-register for the conference call. Callers who pre-register will be given a unique PIN to gain immediate access to the call and bypass the live operator. You may pre-register at any time, including up to and after the call start time. To pre-register, please go to: https://www.theconferencingservice.com/prereg/key.process?key=PF9WPRKNE
Webcast Information
The conference call will be available via webcast and can be accessed from the company's website at ir.huntsman.com.
Replay Information
The conference call will be available for replay beginning January 17, 2017 and ending January 24, 2017.
|
Call-in numbers for the replay: | |
|
U.S. participants |
(888) 286 – 8010 |
|
International participants |
(617) 801 – 6888 |
|
Replay code |
78211220 |
About Huntsman:
Huntsman Corporation is a publicly traded global manufacturer and marketer of differentiated chemicals with 2015 revenues of more than $10 billion. Our chemical products number in the thousands and are sold worldwide to manufacturers serving a broad and diverse range of consumer and industrial end markets. We operate more than 100 manufacturing and R&D facilities in approximately 30 countries and employ approximately 15,000 associates within our 5 distinct business divisions including the Pigments and Additives division that we intend to spin-off as Venator Materials Corporation. For more information about Huntsman, please visit the company's website at www.huntsman.com.
Social Media:
Twitter: twitter.com/Huntsman_Corp
Facebook: www.facebook.com/huntsmancorp
LinkedIn: www.linkedin.com/company/huntsman
Forward-Looking Statements:
Statements in this release that are not historical are forward-looking statements. These statements are based on management's current beliefs and expectations. The forward-looking statements in this release are subject to uncertainty and changes in circumstances and involve risks and uncertainties that may affect the company's operations, markets, products, services, prices and other factors as discussed in the Huntsman companies' filings with the U.S. Securities and Exchange Commission. Significant risks and uncertainties may relate to, but are not limited to, volatile global economic conditions, cyclical and volatile product markets, disruptions in production at manufacturing facilities, reorganization or restructuring of Huntsman's operations, including any delay of, or other negative developments affecting, the spin-off of Venator Materials Corporation, the ability to implement cost reductions and manufacturing optimization improvements in the Pigments and Additives business and realize anticipated cost savings, and other financial, economic, competitive, environmental, political, legal, regulatory and technological factors. The company assumes no obligation to provide revisions to any forward-looking statements should circumstances change, except as otherwise required by applicable laws.
SOURCE Huntsman Corporation
Article Date
1/17/201712/30/2016 - Huntsman Completes Sale of European Surfactants Business; Enables $260 Million Early Repayment of Debt
Huntsman Completes Sale of European Surfactants Business; Enables $260 Million Early Repayment of Debt
Source: PR Newswire
Orignial Article: http://www.prnewswire.com...
THE WOODLANDS, Texas, Dec. 30, 2016 /PRNewswire/ -- Huntsman Corporation (NYSE: HUN) announced today that it has completed the sale of its European surfactants business to Innospec Inc. (NASDAQ: IOSP) for an enterprise value of $225 million. This business represented approximately $24 million of EBITDA in 2015. Huntsman intends to make a $260 million early repayment of debt using proceeds from the sale and existing cash. This debt repayment is in addition to the recent debt reductions of $100 million in September 2016 and $100 million in July 2016.
Huntsman remains committed to its global surfactants business, including in the United States and Australia, where its differentiated surfactants businesses are backward integrated into essential feedstocks. Huntsman retained certain core products strategic to its global agrochemicals, lubes and other businesses and entered into supply and long-term tolling arrangements with Innospec to allow Huntsman to continue marketing some of these products.
The sale of the European surfactants business represents another step in Huntsman's strategic transformation of its Performance Products business, which recently expanded its downstream positioning with a polyetheramines expansion in Singapore and is currently undertaking a substantial cost savings and business improvement initiative.
Peter R. Huntsman, President and CEO, commented:
"By completing the sale of this business, we are executing our plan to focus on businesses within our portfolio with a greater long term strategic fit, while continuing to grow our downstream differentiated businesses. With the early repayment of another $260 million of debt using proceeds from the sale and existing cash, we have now repaid approximately $550 million of debt in 2016 and significantly strengthened our balance sheet."
About Huntsman:
Huntsman Corporation is a publicly traded global manufacturer and marketer of differentiated chemicals with 2015 revenues of more than $10 billion. Our chemical products number in the thousands and are sold worldwide to manufacturers serving a broad and diverse range of consumer and industrial end markets. We operate more than 100 manufacturing and R&D facilities in approximately 30 countries and employ approximately 15,000 associates within our 5 distinct business divisions. For more information about Huntsman, please visit the company's website at www.huntsman.com.
Social Media:
Twitter: twitter.com/Huntsman_Corp
Facebook: www.facebook.com/huntsmancorp
LinkedIn: www.linkedin.com/company/huntsman
Forward-Looking Statements:
Statements in this release that are not historical are forward-looking statements. These statements are based on management's current beliefs and expectations. The forward-looking statements in this release are subject to uncertainty and changes in circumstances and involve risks and uncertainties that may affect the company's operations, markets, products, services, prices and other factors as discussed in the Huntsman companies' filings with the U.S. Securities and Exchange Commission. Significant risks and uncertainties may relate to, but are not limited to, financial, economic, competitive, environmental, political, legal, regulatory and technological factors. The company assumes no obligation to provide revisions to any forward-looking statements should circumstances change, except as otherwise required by applicable laws.
SOURCE Huntsman Corporation
Article Date
12/30/2016Huntsman Refinances Term Loans, Lowering Interest Expense and Extending Maturities
Source: PR Newswire
Orignial Article: http://www.prnewswire.com...
THE WOODLANDS, Texas, Nov. 15, 2016 /PRNewswire/ -- Huntsman Corporation (NYSE: HUN) announced today that its wholly owned subsidiary, Huntsman International LLC, closed a new $350 million term loan B due 2021 and a new $1,375 million term loan B due 2023. Proceeds from the new term loans were used to repay in full its previous term loan B due 2021 and term loan B due 2023. As a result of this refinancing, the Company extended $829 million of term loan maturities from 2021 to 2023 and did not increase its overall indebtedness.
The interest rate for the new term loan B due 2021 is LIBOR plus 2.75% and the interest rate for the new term loan B due 2023 is LIBOR plus 3.00%, each with a LIBOR floor of 0.75%. The Company estimates that interest savings from the refinancing will be approximately $4 million per year.
Kimo Esplin, Executive Vice President and CFO, commented:
"We remain focused on continually improving our capital structure. This refinancing both extends our debt maturities and reduces interest expense. We are committed to improving our free cash flow generation and reducing debt as we grow our downstream differentiated businesses and work toward separating our Pigments and Additives and Textile Effects businesses."
About Huntsman:
Huntsman Corporation is a publicly traded global manufacturer and marketer of differentiated chemicals with 2015 revenues of more than $10 billion. Our chemical products number in the thousands and are sold worldwide to manufacturers serving a broad and diverse range of consumer and industrial end markets. We operate more than 100 manufacturing and R&D facilities in approximately 30 countries and employ approximately 15,000 associates within our 5 distinct business divisions. For more information about Huntsman, please visit the company's website at www.huntsman.com.
Social Media:
Twitter: twitter.com/Huntsman_Corp
Facebook: www.facebook.com/huntsmancorp
LinkedIn: www.linkedin.com/company/huntsman
Forward-Looking Statements:
Statements in this release that are not historical are forward-looking statements. These statements are based on management's current beliefs and expectations. The forward-looking statements in this release are subject to uncertainty and changes in circumstances and involve risks and uncertainties that may affect the company's operations, markets, products, services, prices and other factors as discussed in the Huntsman companies' filings with the U.S. Securities and Exchange Commission. Significant risks and uncertainties may relate to, but are not limited to, financial, economic, competitive, environmental, political, legal, regulatory and technological factors. The company assumes no obligation to provide revisions to any forward-looking statements should circumstances change, except as otherwise required by applicable laws.
SOURCE Huntsman Corporation
Article Date
11/16/201611/14/2016 - Huntsman Announces Fourth Quarter Dividend
Huntsman Announces Fourth Quarter Dividend
Source: PR Newswire
Orignial Article: http://www.prnewswire.com...
THE WOODLANDS, Texas, Nov. 14, 2016 /PRNewswire/ -- Huntsman Corporation (NYSE: HUN) announced today that the company's board of directors has declared a $0.125 per share cash dividend on its common stock.
The dividend is payable on December 30, 2016 to stockholders of record as of December 15, 2016.
About Huntsman:
Huntsman Corporation is a publicly traded global manufacturer and marketer of differentiated chemicals with 2015 revenues of more than $10 billion. Our chemical products number in the thousands and are sold worldwide to manufacturers serving a broad and diverse range of consumer and industrial end markets. We operate more than 100 manufacturing and R&D facilities in approximately 30 countries and employ approximately 15,000 associates within our 5 distinct business divisions. For more information about Huntsman, please visit the company's website at www.huntsman.com.
Social Media:
Twitter: twitter.com/Huntsman_Corp
Facebook: www.facebook.com/huntsmancorp
LinkedIn: www.linkedin.com/company/huntsman
Forward-Looking Statements:
Statements in this release that are not historical are forward-looking statements. These statements are based on management's current beliefs and expectations. The forward-looking statements in this release are subject to uncertainty and changes in circumstances and involve risks and uncertainties that may affect the company's operations, markets, products, services, prices and other factors as discussed in the Huntsman companies' filings with the U.S. Securities and Exchange Commission. Significant risks and uncertainties may relate to, but are not limited to, financial, economic, competitive, environmental, political, legal, regulatory and technological factors. The company assumes no obligation to provide revisions to any forward-looking statements should circumstances change, except as otherwise required by applicable laws.
SOURCE Huntsman Corporation
Article Date
11/14/2016Huntsman Officer Changes: J. Kimo Esplin Appointed Executive Vice President, Strategy & Investment, Sean Douglas Appointed Executive Vice President and Chief Financial Officer
Source: PR Newswire
Orignial Article: http://www.prnewswire.com...
THE WOODLANDS, Texas, Nov. 11, 2016 /PRNewswire/ -- Huntsman Corporation (NYSE: HUN) announced today the appointment of J. Kimo Esplin as Executive Vice President, Strategy and Investment, and the promotion of Sean Douglas to Executive Vice President and Chief Financial Officer, with both appointments effective January 1, 2017.
In his new capacity, Mr. Esplin will report directly to Peter R. Huntsman, President and Chief Executive Officer, and focus his full time efforts on executing the planned spinoff of the Pigments & Additives and Textile Effects divisions, working with strategic opportunities for the Company and its other operating divisions, and representing the Company with shareholders and global partners. Mr. Esplin served as the Company's CFO for 17 years.
In Mr. Douglas's new role as Executive Vice President and Chief Financial Officer, he will also report directly to Mr. Huntsman and be responsible for Finance, Treasury, Accounting, Tax, Investor Relations, Corporate Development and Information Technology. Mr. Douglas joined the Company in 1990 and has held several positions, most recently Vice President, Corporate Development and Treasurer.
Peter R. Huntsman, our President and CEO, commented:
"Kimo's leadership as Chief Financial Officer has been invaluable to the Company. His new role will allow him to focus on global strategic opportunities that will further create shareholder value. Sean too has proven himself to be an exceptional leader. I am pleased with his promotion and I look forward to his continued contribution to this Company.
"As a Company, we are intensely focused on improving our free cash flow generation, growing our downstream differentiated businesses, and separating our Pigments and Additives and Textile Effects businesses. Having Kimo and Sean assume their new roles at the beginning of the year will ensure our ability to successfully deliver these objectives."
About Huntsman:
Huntsman Corporation is a publicly traded global manufacturer and marketer of differentiated chemicals with 2015 revenues of more than $10 billion. Our chemical products number in the thousands and are sold worldwide to manufacturers serving a broad and diverse range of consumer and industrial end markets. We operate more than 100 manufacturing and R&D facilities in approximately 30 countries and employ approximately 15,000 associates within our 5 distinct business divisions. For more information about Huntsman, please visit the company's website at www.huntsman.com.
Social Media:
Twitter: twitter.com/Huntsman_Corp
Facebook: www.facebook.com/huntsmancorp
LinkedIn: www.linkedin.com/company/huntsman
Forward-Looking Statements:
Statements in this release that are not historical are forward-looking statements. These statements are based on management's current beliefs and expectations. The forward-looking statements in this release are subject to uncertainty and changes in circumstances and involve risks and uncertainties that may affect the company's operations, markets, products, services, prices and other factors as discussed in the Huntsman companies' filings with the U.S. Securities and Exchange Commission. Significant risks and uncertainties may relate to, but are not limited to, financial, economic, competitive, environmental, political, legal, regulatory and technological factors. The company assumes no obligation to provide revisions to any forward-looking statements should circumstances change, except as otherwise required by applicable laws.
SOURCE Huntsman Corporation
Article Date
11/11/201610/28/2016 - Huntsman Announces Third Quarter Results and Filing of Initial Form 10 Registration Statement for Spin-off
Huntsman Announces Third Quarter Results and Filing of Initial Form 10 Registration Statement for Spin-off
Source: PR Newswire
Orignial Article: http://www.prnewswire.com...
THE WOODLANDS, Texas, Oct. 28, 2016 /PRNewswire/ --
Third Quarter 2016 Highlights
Form 10 Highlights
|
Three months ended |
Nine months ended | |||||||||
|
September 30, |
June 30, |
September 30, | ||||||||
|
In millions, except per share amounts |
2016 |
2015 |
2016 |
2016 |
2015 | |||||
|
Revenues |
$ 2,363 |
$ 2,638 |
$ 2,544 |
$ 7,262 |
$ 7,967 | |||||
|
Net income |
$ 64 |
$ 63 |
$ 94 |
$ 220 |
$ 117 | |||||
|
Adjusted net income(1) |
$ 91 |
$ 115 |
$ 126 |
$ 305 |
$ 368 | |||||
|
Diluted income per share |
$ 0.23 |
$ 0.22 |
$ 0.36 |
$ 0.83 |
$ 0.36 | |||||
|
Adjusted diluted income per share(1) |
$ 0.38 |
$ 0.47 |
$ 0.53 |
$ 1.28 |
$ 1.49 | |||||
|
Adjusted EBITDA(1) |
$ 272 |
$ 311 |
$ 325 |
$ 871 |
$ 981 | |||||
|
See end of press release for footnote explanations |
Huntsman Corporation (NYSE: HUN) today reported third quarter 2016 results with revenues of $2,363 million, net income of $64 million and adjusted EBITDA of $272 million.
Peter R. Huntsman, our President and CEO, commented:
"We have been intensely focused on improving our free cash flow generation, our results this quarter are reflective of this drive for value notwithstanding weather related and other production outages that impacted our earnings. In 2016 we planned to generate more than $350 million of free cash flow, this quarter we generated $300 million of free cash flow and year-to-date we have generated $569 million. Subsequently, we made $200 million of early repayments on our debt within the third quarter. Much of the improvement has come from increased discipline related to capital expenditures and working capital management.
"Earlier today, our temporarily named Huntsman Spin Corporation, filed an initial Form 10 registration statement with the U.S. Securities and Exchange Commission for the spin-off of our Pigments & Additives and Textile Effects businesses. This filing represents an important step in the progression towards a separation. Subject to market conditions we plan to separate in the first half of 2017.
"As I consider our operational performance in the quarter there are some key trends that standout. Our MDI business is growing sales volume and improving margins. Within Performance Products, margins for our key businesses, amines and maleic anhydride have stabilized. Advanced Materials and Textile Effects continue to operate at a steady and modestly improving pace. TiO2 prices are improving and with additional increases expected in the future, the timing of our spin-off should be well positioned. Poor refining markets continue to compress our MTBE margins."
Segment Analysis for 3Q16 Compared to 3Q15
Polyurethanes
The decrease in revenues in our Polyurethanes division for the three months ended September 30, 2016 compared to the same period in 2015 was primarily due to lower average selling prices and lower MTBE sales volumes, partially offset by higher MDI sales volumes. MDI average selling prices decreased in response to lower raw material costs. MTBE average selling prices decreased primarily as a result of lower pricing for high octane gasoline. MDI sales volumes increased due to higher demand in the Americas and European regions. MTBE sales volumes decreased primarily due to the impact of weather related and other production outages. The decrease in adjusted EBITDA was primarily due to lower MTBE margins and the impact of weather related and other production outages estimated at approximately $15 million, partially offset by higher MDI margins and sales volumes.
Performance Products
The decrease in revenues in our Performance Products division for the three months ended September 30, 2016 compared to the same period in 2015 was due to lower average selling prices and lower sales volumes. Average selling prices decreased primarily in response to lower raw material costs and competitive market conditions. Sales volumes decreased primarily due to the impact of weather related and other production outages, softer demand in China and oilfield applications as well as competitive market conditions. The decrease in adjusted EBITDA was primarily due to the impact of weather related and other production outages estimated at approximately $10 million as well as lower margins in our amines, maleic anhydride and upstream intermediates businesses.
Advanced Materials
The decrease in revenues in our Advanced Materials division for the three months ended September 30, 2016 compared to the same period in 2015 was due to lower sales volumes and lower average selling prices. Sales volumes decreased primarily due to soft demand for low value business in our coatings and construction and wind markets, partially offset by global growth in our aerospace and electronics markets. Average selling prices decreased in our Asia Pacific region primarily as a result of competitive pressure in our electrical, electronics and wind markets, partially offset by higher average selling prices in our European and Americas regions. Adjusted EBITDA was essentially flat as lower sales volumes and lower margins were mostly offset by lower selling, general and administrative costs.
Textile Effects
The decrease in revenues in our Textile Effects division for the three months ended September 30, 2016 compared to the same period in 2015 was due to lower average selling prices partially offset by higher sales volumes. Average selling prices decreased primarily due to lower raw material costs and the foreign currency exchange impact of a stronger U.S. dollar against major international currencies. Sales volumes increased in key target countries, mainly in South Asia. The increase in adjusted EBITDA was primarily due to higher margins from lower raw material costs as well as lower selling, general and administrative costs.
Pigments and Additives
The decrease in revenues in our Pigments and Additives division for the three months ended September 30, 2016 compared to the same period in 2015 was due to lower average selling prices. Average selling prices decreased primarily as a result of competitive pressure, however they increased compared to the prior quarter. Sales volumes were unchanged as increased end use demand for our titanium dioxide products were offset by seasonally lower volumes for our additives products. The increase in adjusted EBITDA was primarily due to higher margins and lower fixed costs resulting from restructuring savings.
Corporate, LIFO and Other
Adjusted EBITDA from Corporate, LIFO and Other increased by $5 million to a loss of $45 million for the three months ended September 30, 2016 compared to a loss of $50 million for the same period in 2015. The increase in adjusted EBITDA was primarily the result of an increase in unallocated foreign currency exchange gains and an increase in income from benzene sales.
Liquidity, Capital Resources and Outstanding Debt
As of September 30, 2016, we had $1,247 million of combined cash and unused borrowing capacity compared to $1,023 million on December 31, 2015.
We made a $100 million early repayment of debt on July 22, 2016, followed by another $100 million early repayment of debt on September 30, 2016. Both of these early repayments were applied to our term loan B due 2019.
Total capital expenditures for the three months and nine months ended September 30, 2016 were $101 million and $290 million, respectively. During the nine months ended September 30, 2016 we have received capital reimbursements from business partners of $28 million. We expect to spend approximately $450 million on capital expenditures in 2016 and $400 million in 2017 before capital reimbursements from business partners which are expected to be approximately $30 million and $20 million, respectively.
We expect our depreciation and amortization to be approximately $435 million in 2016 and approximately $450 million in 2017.
Income Taxes
During the three months and nine months ended September 30, 2016, we recorded an income tax benefit of $1 million and income tax expense of $58 million, respectively. During the three months and nine months ended September 30, 2016, we paid cash for income taxes of $8 million and $29 million, respectively.
Our MTBE earnings are taxed at the U.S. statutory rate of 35% and variability in our MTBE earnings has a meaningful impact on our adjusted effective tax rate. The combination of significantly lower MTBE earnings, the impact of weather related and other production outages in the U.S., and higher earnings in countries with valuation allowances, resulted in an unusually low adjusted effective tax rate of 14% in the third quarter of 2016.
We expect our 2016 and 2017 adjusted effective tax rate to be approximately 25 - 30%, with variability primarily conditioned on earnings within the U.S. We expect our long term adjusted effective tax rate to be approximately 30%.
Earnings Conference Call Information
We will hold a conference call to discuss our third quarter 2016 financial results on Friday, October 28, 2016 at 10:00 a.m. ET.
Call-in numbers for the conference call:
|
U.S. participants |
(888) 680 - 0890 |
|
International participants |
(617) 213 - 4857 |
|
Passcode |
928 629 27# |
In order to facilitate the registration process, you may use the following link to pre-register for the conference call. Callers who pre-register will be given a unique PIN to gain immediate access to the call and bypass the live operator. You may pre-register at any time, including up to and after the call start time. To pre-register, please go to: https://www.theconferencingservice.com/prereg/key.process?key=P3L7W44M8
Webcast Information
The conference call will be available via webcast and can be accessed from the company's website at ir.huntsman.com.
Replay Information
The conference call will be available for replay beginning October 28, 2016 and ending November 4, 2016.
Call-in numbers for the replay:
|
U.S. participants |
(888) 286 - 8010 |
|
International participants |
(617) 801 - 6888 |
|
Replay code |
23056817 |
Upcoming Conferences
During the fourth quarter a member of management is expected to present at the Citi Basic Materials Conference on November 29, 2016 and the Bank of America Merrill Lynch Leveraged Finance Conference on November 30, 2016. A webcast of the presentation, if applicable, along with accompanying materials will be available at ir.huntsman.com.
|
Table 1 -- Results of Operations | ||||||||
|
Three months ended |
Nine months ended | |||||||
|
September 30, |
September 30, | |||||||
|
In millions, except per share amounts |
2016 |
2015 |
2016 |
2015 | ||||
|
Revenues |
$ 2,363 |
$ 2,638 |
$ 7,262 |
$ 7,967 | ||||
|
Cost of goods sold |
1,965 |
2,165 |
5,991 |
6,495 | ||||
|
Gross profit |
398 |
473 |
1,271 |
1,472 | ||||
|
Operating expenses |
235 |
290 |
752 |
859 | ||||
|
Restructuring, impairment and plant closing costs |
45 |
14 |
87 |
221 | ||||
|
Operating income |
118 |
169 |
432 |
392 | ||||
|
Interest expense |
(52) |
(49) |
(152) |
(158) | ||||
|
Equity in income of investment in unconsolidated affiliates |
1 |
- |
4 |
5 | ||||
|
Loss on early extinguishment of debt |
(1) |
(8) |
(3) |
(31) | ||||
|
Other loss |
(2) |
- |
- |
(2) | ||||
|
Income before income taxes |
64 |
112 |
281 |
206 | ||||
|
Income tax benefit (expense) |
1 |
(49) |
(58) |
(85) | ||||
|
Income from continuing operations |
65 |
63 |
223 |
121 | ||||
|
Loss from discontinued operations, net of tax(2) |
(1) |
- |
(3) |
(4) | ||||
|
Net income |
64 |
63 |
220 |
117 | ||||
|
Net income attributable to noncontrolling interests, net of tax |
(9) |
(8) |
(22) |
(28) | ||||
|
Net income attributable to Huntsman Corporation |
$ 55 |
$ 55 |
$ 198 |
$ 89 | ||||
|
Adjusted EBITDA(1) |
$ 272 |
$ 311 |
$ 871 |
$ 981 | ||||
|
Adjusted net income(1) |
$ 91 |
$ 115 |
$ 305 |
$ 368 | ||||
|
Basic income per share |
$ 0.23 |
$ 0.23 |
$ 0.84 |
$ 0.36 | ||||
|
Diluted income per share |
$ 0.23 |
$ 0.22 |
$ 0.83 |
$ 0.36 | ||||
|
Adjusted diluted income per share(1) |
$ 0.38 |
$ 0.47 |
$ 1.28 |
$ 1.49 | ||||
|
Common share information: |
||||||||
|
Basic shares outstanding |
236 |
244 |
236 |
244 | ||||
|
Diluted shares |
240 |
247 |
239 |
247 | ||||
|
Diluted shares for adjusted diluted income per share |
240 |
247 |
239 |
247 | ||||
|
See end of press release for footnote explanations |
|
Table 2 -- Results of Operations by Segment | ||||||||||||
|
Three months ended |
Nine months ended |
|||||||||||
|
September 30, |
Better / |
September 30, |
Better / | |||||||||
|
In millions |
2016 |
2015 |
(Worse) |
2016 |
2015 |
(Worse) | ||||||
|
Segment Revenues: |
||||||||||||
|
Polyurethanes |
$ 891 |
$ 1,017 |
(12)% |
$ 2,703 |
$ 2,902 |
(7)% | ||||||
|
Performance Products |
509 |
618 |
(18)% |
1,611 |
1,949 |
(17)% | ||||||
|
Advanced Materials |
247 |
275 |
(10)% |
774 |
847 |
(9)% | ||||||
|
Textile Effects |
184 |
196 |
(6)% |
567 |
618 |
(8)% | ||||||
|
Pigments & Additives |
532 |
543 |
(2)% |
1,648 |
1,707 |
(3)% | ||||||
|
Corporate and eliminations |
- |
(11) |
n/m |
(41) |
(56) |
n/m | ||||||
|
Total |
$ 2,363 |
$ 2,638 |
(10)% |
$ 7,262 |
$ 7,967 |
(9)% | ||||||
|
Segment Adjusted EBITDA(1): |
||||||||||||
|
Polyurethanes |
$ 137 |
$ 168 |
(18)% |
$ 439 |
$ 432 |
2% | ||||||
|
Performance Products |
70 |
122 |
(43)% |
248 |
384 |
(35)% | ||||||
|
Advanced Materials |
55 |
56 |
(2)% |
173 |
172 |
1% | ||||||
|
Textile Effects |
17 |
10 |
70% |
59 |
50 |
18% | ||||||
|
Pigments & Additives |
38 |
5 |
660% |
84 |
61 |
38% | ||||||
|
Corporate, LIFO and other |
(45) |
(50) |
10% |
(132) |
(118) |
(12)% | ||||||
|
Total |
$ 272 |
$ 311 |
(13)% |
$ 871 |
$ 981 |
(11)% | ||||||
|
n/m = not meaningful | ||
|
See end of press release for footnote explanations |
|
Table 3 -- Factors Impacting Sales Revenue | ||||||||||||
|
Three months ended |
||||||||||||
|
September 30, 2016 vs. 2015 |
||||||||||||
|
Average Selling Price(a) |
||||||||||||
|
Local |
Exchange |
Sales Mix |
Sales |
|||||||||
|
Currency |
Rate |
& Other |
Volume(b) |
Total |
||||||||
|
Polyurethanes |
(10)% |
(1)% |
7% |
(8)% |
(12)% |
|||||||
|
Polyurethanes, adj |
(10)% |
(1)% |
7% |
2% |
(2)% |
(e) | ||||||
|
Performance Products |
(7)% |
(1)% |
(1)% |
(9)% |
(18)% |
|||||||
|
Performance Products, adj |
(7)% |
(1)% |
(1)% |
(5)% |
(14)% |
(e) | ||||||
|
Advanced Materials |
(2)% |
(1)% |
5% |
(12)% |
(10)% |
|||||||
|
Textile Effects |
(8)% |
(2)% |
(1)% |
5% |
(6)% |
|||||||
|
Pigments & Additives |
(3)% |
(1)% |
2% |
0% |
(2)% |
|||||||
|
Pigments & Additives, adj |
(3)% |
(1)% |
2% |
(1)% |
(3)% |
(d) | ||||||
|
Total Company |
(7)% |
(1)% |
4% |
(6)% |
(10)% |
|||||||
|
Total Company, adj |
(7)% |
(1)% |
4% |
0% |
(4)% |
(d)(e) | ||||||
|
Nine months ended |
||||||||||||
|
September 30, 2016 vs. 2015 |
||||||||||||
|
Average Selling Price(a) |
||||||||||||
|
Local |
Exchange |
Sales Mix |
Sales |
|||||||||
|
Currency |
Rate |
& Other |
Volume(b) |
Total |
||||||||
|
Polyurethanes |
(15)% |
(1)% |
0% |
9% |
(7)% |
|||||||
|
Polyurethanes, adj |
(15)% |
(1)% |
0% |
6% |
(10)% |
(c)(e) | ||||||
|
Performance Products |
(10)% |
(1)% |
(4)% |
(2)% |
(17)% |
|||||||
|
Performance Products, adj |
(10)% |
(1)% |
(4)% |
(1)% |
(16)% |
(e) | ||||||
|
Advanced Materials |
(2)% |
(2)% |
3% |
(8)% |
(9)% |
|||||||
|
Textile Effects |
(6)% |
(3)% |
0% |
1% |
(8)% |
|||||||
|
Pigments & Additives |
(7)% |
(1)% |
2% |
3% |
(3)% |
|||||||
|
Pigments & Additives, adj |
(7)% |
(1)% |
2% |
3% |
(3)% |
(d) | ||||||
|
Total Company |
(11)% |
(1)% |
(1)% |
4% |
(9)% |
|||||||
|
Total Company, adj |
(11)% |
(1)% |
(1)% |
2% |
(11)% |
(c)(d)(e) | ||||||
|
(a) Excludes sales from tolling arrangements, by-products and raw materials. | |||||||||
|
(b) Excludes sales from by-products and raw materials. | |||||||||
|
(c) Excludes volume impact from the planned maintenance at our PO/MTBE facility that occurred in 1H15. | |||||||||
|
(d) Excludes volume impact from nitrogen tank incident at our Uerdingen, Germany facility in 3Q15. | |||||||||
|
(e) Excludes volume impact from weather related and other production outages in 3Q16. | |||||||||
|
Table 4 -- Reconciliation of U.S. GAAP to Non-GAAP Measures | |||||||||||||||||
|
Income Tax |
Diluted Income |
||||||||||||||||
|
EBITDA |
(Expense) Benefit |
Net Income |
Per Share |
||||||||||||||
|
Three months ended |
Three months ended |
Three months ended |
Three months ended |
||||||||||||||
|
September 30, |
September 30, |
September 30, |
September 30, |
||||||||||||||
|
In millions, except per share amounts |
2016 |
2015 |
2016 |
2015 |
2016 |
2015 |
2016 |
2015 |
|||||||||
|
Net income |
$ 64 |
$ 63 |
$ 64 |
$ 63 |
$ 0.27 |
$ 0.26 |
|||||||||||
|
Net income attributable to noncontrolling interests |
(9) |
(8) |
(9) |
(8) |
(0.04) |
(0.03) |
|||||||||||
|
Net income attributable to Huntsman Corporation |
55 |
55 |
55 |
55 |
0.23 |
0.22 |
|||||||||||
|
Interest expense |
52 |
49 |
|||||||||||||||
|
Income tax (benefit) expense from continuing operations |
(1) |
49 |
1 |
(49) |
|||||||||||||
|
Income tax benefit from discontinued operations(2) |
- |
(1) |
|||||||||||||||
|
Depreciation and amortization |
113 |
103 |
|||||||||||||||
|
Acquisition and integration expenses, purchase accounting adjustments |
8 |
10 |
(4) |
(2) |
4 |
8 |
0.02 |
0.03 |
|||||||||
|
Loss from discontinued operations, net of tax(2) |
1 |
1 |
N/A |
N/A |
1 |
- |
- |
- |
|||||||||
|
Gain on disposition of businesses/assets |
(22) |
- |
2 |
- |
(20) |
- |
(0.08) |
- |
|||||||||
|
Loss on early extinguishment of debt |
1 |
8 |
- |
(3) |
1 |
5 |
- |
0.02 |
|||||||||
|
Certain legal settlements and related expenses |
- |
1 |
- |
- |
- |
1 |
- |
- |
|||||||||
|
Plant incident remediation costs, net |
4 |
3 |
- |
(1) |
4 |
2 |
0.02 |
0.01 |
|||||||||
|
Amortization of pension and postretirement actuarial losses |
16 |
19 |
(4) |
(4) |
12 |
15 |
0.05 |
0.06 |
|||||||||
|
Restructuring, impairment, plant closing and transition costs |
45 |
14 |
(11) |
15 |
34 |
29 |
0.14 |
0.12 |
|||||||||
|
Adjusted(1) |
$ 272 |
$ 311 |
$ (16) |
$ (44) |
$ 91 |
$ 115 |
$ 0.38 |
$ 0.47 |
|||||||||
|
Adjusted income tax expense(4) |
$ 16 |
$ 44 |
|||||||||||||||
|
Net income attributable to noncontrolling interests, net of tax |
9 |
8 |
|||||||||||||||
|
Adjusted pre-tax income(1) |
$ 116 |
$ 167 |
|||||||||||||||
|
Adjusted effective tax rate |
14% |
26% |
|||||||||||||||
|
Income Tax |
Diluted Income |
||||||||||||||||
|
EBITDA |
(Expense) Benefit |
Net Income |
Per Share |
||||||||||||||
|
Three months ended |
Three months ended |
Three months ended |
Three months ended |
||||||||||||||
|
June 30, |
June 30, |
June 30, |
June 30, |
||||||||||||||
|
In millions, except per share amounts |
2016 |
2016 |
2016 |
2016 |
|||||||||||||
|
Net income |
$ 94 |
$ 94 |
$ 0.39 |
||||||||||||||
|
Net income attributable to noncontrolling interests |
(7) |
(7) |
(0.03) |
||||||||||||||
|
Net income attributable to Huntsman Corporation |
87 |
87 |
0.36 |
||||||||||||||
|
Interest expense |
50 |
||||||||||||||||
|
Income tax expense from continuing operations |
32 |
(32) |
|||||||||||||||
|
Income tax benefit from discontinued operations(2) |
- |
||||||||||||||||
|
Depreciation and amortization |
109 |
||||||||||||||||
|
Acquisition and integration expenses, purchase accounting adjustments |
4 |
- |
4 |
0.02 |
|||||||||||||
|
Loss from discontinued operations, net of tax(2) |
1 |
N/A |
1 |
- |
|||||||||||||
|
Loss on early extinguishment of debt |
2 |
(1) |
1 |
- |
|||||||||||||
|
Certain legal settlements and related expenses |
- |
- |
- |
- |
|||||||||||||
|
Plant incident remediation credits, net |
(7) |
1 |
(6) |
(0.03) |
|||||||||||||
|
Amortization of pension and postretirement actuarial losses |
17 |
(3) |
14 |
0.06 |
|||||||||||||
|
Restructuring, impairment, plant closing and transition costs |
30 |
(5) |
25 |
0.10 |
|||||||||||||
|
Adjusted(1) |
$ 325 |
$ (40) |
$ 126 |
$ 0.53 |
|||||||||||||
|
Adjusted income tax expense(4) |
$ 40 |
||||||||||||||||
|
Net income attributable to noncontrolling interests, net of tax |
7 |
||||||||||||||||
|
Adjusted pre-tax income(1) |
$ 173 |
||||||||||||||||
|
Adjusted effective tax rate |
23% |
||||||||||||||||
|
Income Tax |
Diluted Income |
||||||||||||||||
|
EBITDA |
(Expense) Benefit |
Net Income |
Per Share |
||||||||||||||
|
Nine months ended |
Nine months ended |
Nine months ended |
Nine months ended |
||||||||||||||
|
September 30, |
September 30, |
September 30, |
September 30, |
||||||||||||||
|
In millions, except per share amounts |
2016 |
2015 |
2016 |
2015 |
2016 |
2015 |
2016 |
2015 |
|||||||||
|
Net income |
$ 220 |
$ 117 |
$ 220 |
$ 117 |
$ 0.92 |
$ 0.47 |
|||||||||||
|
Net income attributable to noncontrolling interests |
(22) |
(28) |
(22) |
(28) |
(0.09) |
(0.11) |
|||||||||||
|
Net income attributable to Huntsman Corporation |
198 |
89 |
198 |
89 |
0.83 |
0.36 |
|||||||||||
|
Interest expense |
152 |
158 |
|||||||||||||||
|
Income tax expense from continuing operations |
58 |
85 |
(58) |
(85) |
|||||||||||||
|
Income tax (benefit) expense from discontinued operations(2) |
(1) |
1 |
|||||||||||||||
|
Depreciation and amortization |
322 |
297 |
|||||||||||||||
|
Acquisition and integration expenses, purchase accounting adjustments |
21 |
31 |
(7) |
(7) |
14 |
24 |
0.06 |
0.10 |
|||||||||
|
Loss from discontinued operations, net of tax(2) |
4 |
3 |
N/A |
N/A |
3 |
4 |
0.01 |
0.02 |
|||||||||
|
(Gain) loss on disposition of businesses/assets |
(22) |
1 |
2 |
- |
(20) |
1 |
(0.08) |
- |
|||||||||
|
Loss on early extinguishment of debt |
3 |
31 |
(1) |
(11) |
2 |
20 |
0.01 |
0.08 |
|||||||||
|
Certain legal settlements and related expenses |
1 |
3 |
- |
(1) |
1 |
2 |
- |
0.01 |
|||||||||
|
Plant incident remediation (credits) costs, net |
(2) |
3 |
1 |
(1) |
(1) |
2 |
- |
0.01 |
|||||||||
|
Amortization of pension and postretirement actuarial losses |
49 |
56 |
(10) |
(14) |
39 |
42 |
0.16 |
0.17 |
|||||||||
|
Restructuring, impairment, plant closing and transition costs |
88 |
223 |
(19) |
(39) |
69 |
184 |
0.29 |
0.74 |
|||||||||
|
Adjusted(1) |
$ 871 |
$ 981 |
$ (92) |
$ (158) |
$ 305 |
$ 368 |
$ 1.28 |
$ 1.49 |
|||||||||
|
Adjusted income tax expense(4) |
$ 92 |
$ 158 |
|||||||||||||||
|
Net income attributable to noncontrolling interests, net of tax |
22 |
28 |
|||||||||||||||
|
Adjusted pre-tax income(1) |
$ 419 |
$ 554 |
|||||||||||||||
|
Adjusted effective tax rate |
22% |
29% |
|||||||||||||||
|
See end of press release for footnote explanations |
|
Table 5 -- Selected Balance Sheet Items | ||||||||
|
September 30, |
June 30, |
December 31, | ||||||
|
In millions |
2016 |
2016 |
2015 | |||||
|
Cash |
$ 450 |
$ 383 |
$ 269 | |||||
|
Accounts and notes receivable, net |
1,466 |
1,546 |
1,449 | |||||
|
Inventories |
1,444 |
1,522 |
1,692 | |||||
|
Other current assets |
392 |
340 |
424 | |||||
|
Property, plant and equipment, net |
4,298 |
4,377 |
4,446 | |||||
|
Assets held for sale |
121 |
- |
- | |||||
|
Other assets |
1,536 |
1,559 |
1,540 | |||||
|
Total assets |
$ 9,707 |
$ 9,727 |
$ 9,820 | |||||
|
Accounts payable |
$ 1,026 |
$ 991 |
$ 1,061 | |||||
|
Other current liabilities |
655 |
602 |
686 | |||||
|
Current portion of debt |
88 |
96 |
170 | |||||
|
Long-term debt |
4,468 |
4,653 |
4,625 | |||||
|
Liabilities held for sale |
30 |
- |
- | |||||
|
Other liabilities |
1,669 |
1,677 |
1,649 | |||||
|
Total equity |
1,771 |
1,708 |
1,629 | |||||
|
Total liabilities and equity |
$ 9,707 |
$ 9,727 |
$ 9,820 | |||||
|
Table 6 -- Outstanding Debt | |||||||
|
September 30, |
June 30, |
December 31, | |||||
|
In millions |
2016 |
2016 |
2015 | ||||
|
Debt: |
|||||||
|
Senior credit facilities |
$ 2,234 |
$ 2,435 |
$ 2,454 | ||||
|
Accounts receivable programs |
218 |
216 |
215 | ||||
|
Senior notes |
1,873 |
1,862 |
1,850 | ||||
|
Variable interest entities |
134 |
142 |
151 | ||||
|
Other debt |
97 |
94 |
125 | ||||
|
Total debt - excluding affiliates |
4,556 |
4,749 |
4,795 | ||||
|
Total cash |
450 |
383 |
269 | ||||
|
Net debt- excluding affiliates |
$ 4,106 |
$ 4,366 |
$ 4,526 | ||||
|
Table 7 -- Summarized Statement of Cash Flows | |||||
|
Three months ended |
Nine months ended | ||||
|
September 30, |
September 30, | ||||
|
In millions |
2016 |
2016 |
2015 | ||
|
Total cash at beginning of period(a) |
$ 383 |
$ 269 |
$ 870 | ||
|
Net cash provided by operating activities |
405 |
848 |
387 | ||
|
Net cash used in investing activities |
(96) |
(270) |
(383) | ||
|
Net cash used in financing activities |
(244) |
(397) |
(418) | ||
|
Effect of exchange rate changes on cash |
1 |
1 |
(13) | ||
|
Change in restricted cash |
1 |
(1) |
(6) | ||
|
- |
|||||
|
Total cash at end of period(a) |
$ 450 |
$ 450 |
$ 437 | ||
|
Supplemental cash flow information: |
|||||
|
Cash paid for interest |
$ (36) |
$ (139) |
$ (158) | ||
|
Cash paid for income taxes |
(8) |
(29) |
(81) | ||
|
Cash paid for capital expenditures |
(101) |
(290) |
(454) | ||
|
Depreciation and amortization |
113 |
322 |
297 | ||
|
Changes in primary working capital: |
|||||
|
Accounts and notes receivable |
$ 84 |
$ (6) |
$ (53) | ||
|
Inventories |
69 |
246 |
46 | ||
|
Accounts payable |
40 |
(16) |
(111) | ||
|
Total cash provided by (used in) primary working capital |
$ 193 |
$ 224 |
$ (118) | ||
|
Three months ended |
Nine months ended | ||||
|
September 30, |
September 30, | ||||
|
2016 |
2016 |
2015 | |||
|
Free cash flow(3): |
|||||
|
Net cash provided by operating activities |
$ 405 |
$ 848 |
$ 387 | ||
|
Capital expenditures |
(101) |
(290) |
(454) | ||
|
All other investing activities |
5 |
20 |
71 | ||
|
Excluding acquisition and disposition activities(b) |
(9) |
(9) |
(5) | ||
|
Total free cash flow |
$ 300 |
$ 569 |
$ (1) | ||
|
Adjusted EBITDA |
$ 272 |
$ 871 |
$ 981 | ||
|
Capital expenditures |
(101) |
(290) |
(454) | ||
|
Capital reimbursements |
1 |
28 |
11 | ||
|
Interest |
(36) |
(139) |
(158) | ||
|
Income taxes |
(8) |
(29) |
(81) | ||
|
Primary working capital change |
193 |
224 |
(118) | ||
|
Restructuring |
(29) |
(85) |
(82) | ||
|
Pensions |
(18) |
(63) |
(87) | ||
|
Maintenance & other |
26 |
52 |
(13) | ||
|
Total free cash flow(3) |
$ 300 |
$ 569 |
$ (1) | ||
|
(a) Includes restricted cash. | |
|
(b) Represents "Acquisition of business, net of cash acquired", "Cash received from purchase price adjustment for business acquired", and "Proceeds from sale of business/assets". | |
|
Footnotes | |
|
(1) |
We use adjusted EBITDA to measure the operating performance of our business. We provide adjusted net income because we feel it provides meaningful insight for the investment community into the performance of our business. We believe that net income (loss) is the performance measure calculated and presented in accordance with generally accepted accounting principles in the U.S. ("GAAP") that is most directly comparable to adjusted EBITDA and adjusted net income. Additional information with respect to our use of each of these financial measures follows: |
|
Adjusted EBITDA, adjusted net income (loss) and adjusted diluted income (loss) per share, as used herein, are not necessarily comparable to other similarly titled measures of other companies. | |
|
Adjusted EBITDA is computed by eliminating the following from net income (loss): (a) net income attributable to noncontrolling interest, net of tax; (b) interest; (c) income taxes; (d) depreciation and amortization; (e) acquisition and integration expenses, purchase accounting adjustments; (f) EBITDA from discontinued operations; (g) loss (gain) on disposition of businesses/assets; (h) loss on early extinguishment of debt; (i) certain legal settlements and related expenses; (j) plant incident remediation costs (credits), net; (k) amortization of pension and postretirement actuarial losses (gains); and (l) restructuring, impairment, plant closing and transition costs (credits). The reconciliation of adjusted EBITDA to net income (loss) is set forth in Table 4 above. | |
|
Adjusted net income (loss) and adjusted diluted income (loss) per share are computed by eliminating the after tax impact of the following items from net income (loss): (a) net income attributable to noncontrolling interest; (b) acquisition and integration expenses, purchase accounting adjustments; (c) impact of certain foreign tax credit elections; (d) loss (income) from discontinued operations; (e) discount amortization on settlement financing associated with the terminated merger; (f) loss (gain) on disposition of businesses/assets; (g) loss on early extinguishment of debt; (h) certain legal settlements and related expenses; (i) plant incident remediation costs (credits), net; (j) amortization of pension and postretirement actuarial losses (gains); and (k) restructuring, impairment, plant closing and transition costs (credits). The income tax impacts, if any, of each adjusting item represent a ratable allocation of the total difference between the unadjusted tax expense and the total adjusted tax expense, computed without consideration of any adjusting items using a with and without approach. We do not adjust for changes in tax valuation allowances because we do not believe it provides more meaningful information than is provided under GAAP. The reconciliation of adjusted net income (loss) to net income (loss) is set forth in Table 4 above. | |
|
(2) |
During the first quarter 2010 we closed our Australian styrenics operations; results from associated business are treated as discontinued operations. |
|
(3) |
Management internally uses a free cash flow measure: (a) to evaluate the Company's liquidity, (b) to evaluate strategic investments, (c) to plan stock buyback and dividend levels and (d) to evaluate the Company's ability to incur and service debt. Free cash flow is not a defined term under U.S. GAAP, and it should not be inferred that the entire free cash flow amount is available for discretionary expenditures. The Company defines free cash flow as cash flow provided by operating activities less cash flow used in investing activities, excluding merger and acquisition activities. Free cash flow is typically derived directly from the Company's condensed consolidated statement of cash flows; however, it may be adjusted for items that affect comparability between periods. |
About Huntsman:
Huntsman Corporation is a publicly traded global manufacturer and marketer of differentiated chemicals with 2015 revenues of approximately $10 billion. Our chemical products number in the thousands and are sold worldwide to manufacturers serving a broad and diverse range of consumer and industrial end markets. We operate more than 100 manufacturing and R&D facilities in approximately 30 countries and employ approximately 15,000 associates within our 5 distinct business divisions. For more information about Huntsman, please visit the company's website at www.huntsman.com.
Social Media:
Twitter: twitter.com/Huntsman_Corp
Facebook: www.facebook.com/huntsmancorp
LinkedIn: www.linkedin.com/company/huntsman
Forward-Looking Statements:
Statements in this release that are not historical are forward-looking statements. These statements are based on management's current beliefs and expectations. The forward-looking statements in this release are subject to uncertainty and changes in circumstances and involve risks and uncertainties that may affect the company's operations, markets, products, services, prices and other factors as discussed in the Huntsman companies' filings with the U.S. Securities and Exchange Commission. Significant risks and uncertainties may relate to, but are not limited to, financial, economic, competitive, environmental, political, legal, regulatory and technological factors. The company assumes no obligation to provide revisions to any forward-looking statements should circumstances change, except as otherwise required by applicable laws.
SOURCE Huntsman Corporation
Article Date
10/28/2016Huntsman Announces Global Titanium Dioxide Price Increases
Source: PR Newswire
Orignial Article: http://www.prnewswire.com...
THE WOODLANDS, Texas, Oct. 25, 2016 /PRNewswire/ -- Huntsman Corporation (NYSE: HUN) today announced global price increases for all its titanium dioxide pigments. The following increases are effective January 1, 2017 or as contracts allow.
Europe: €150 (Euros) per tonne or $160 (USD) per tonne in dollar-based markets
Asia-Pacific, Africa, Latin America and Middle East: $160 (USD) per tonne
North America: $0.07 per pound (USD)
About Huntsman:
Huntsman Corporation is a publicly traded global manufacturer and marketer of differentiated chemicals with 2015 revenues of more than $10 billion. Our chemical products number in the thousands and are sold worldwide to manufacturers serving a broad and diverse range of consumer and industrial end markets. We operate more than 100 manufacturing and R&D facilities in approximately 30 countries and employ approximately 15,000 associates within our 5 distinct business divisions. For more information about Huntsman, please visit the company's website at www.huntsman.com.
Social Media:
Twitter: twitter.com/Huntsman_Corp
Facebook: www.facebook.com/huntsmancorp
LinkedIn: www.linkedin.com/company/huntsman
Forward-Looking Statements:
Statements in this release that are not historical are forward-looking statements. These statements are based on management's current beliefs and expectations. The forward-looking statements in this release are subject to uncertainty and changes in circumstances and involve risks and uncertainties that may affect the company's operations, markets, products, services, prices and other factors as discussed in the Huntsman companies' filings with the U.S. Securities and Exchange Commission. Significant risks and uncertainties may relate to, but are not limited to, financial, economic, competitive, environmental, political, legal, regulatory and technological factors. The company assumes no obligation to provide revisions to any forward-looking statements should circumstances change, except as otherwise required by applicable laws.
SOURCE Huntsman Corporation
Article Date
10/25/2016Huntsman to Discuss Third Quarter 2016 Results on October 28, 2016
Source: PR Newswire
Orignial Article: http://www.prnewswire.com...
THE WOODLANDS, Texas, Oct. 13, 2016 /PRNewswire/ -- Huntsman Corporation (NYSE: HUN) will hold a conference call to discuss its third quarter 2016 financial results on Friday, October 28, 2016 at 10:00 a.m. ET. Third quarter 2016 results will be released to the public at approximately 6:00 a.m. ET that day via PR Newswire.
|
Call-in numbers for the conference call: | |
|
U.S. participants |
(888) 680 - 0890 |
|
International participants |
(617) 213 - 4857 |
|
Passcode |
928 629 27# |
In order to facilitate the registration process, you may use the following link to pre-register for the conference call. Callers who pre-register will be given a unique PIN to gain immediate access to the call and bypass the live operator. You may pre-register at any time, including up to and after the call start time. To pre-register, please go to: https://www.theconferencingservice.com/prereg/key.process?key=P3L7W44M8
Webcast Information
The conference call will be available via webcast and can be accessed from the company's website at ir.huntsman.com.
Replay Information
The conference call will be available for replay beginning October 28, 2016 and ending November 4, 2016.
|
Call-in numbers for the replay: | |
|
U.S. participants |
(888) 286 - 8010 |
|
International participants |
(617) 801 - 6888 |
|
Replay code |
23056817 |
About Huntsman:
Huntsman Corporation is a publicly traded global manufacturer and marketer of differentiated chemicals with 2015 revenues of more than $10 billion. Our chemical products number in the thousands and are sold worldwide to manufacturers serving a broad and diverse range of consumer and industrial end markets. We operate more than 100 manufacturing and R&D facilities in approximately 30 countries and employ approximately 15,000 associates within our 5 distinct business divisions. For more information about Huntsman, please visit the company's website at www.huntsman.com.
Social Media:
Twitter: twitter.com/Huntsman_Corp
Facebook: www.facebook.com/huntsmancorp
LinkedIn: www.linkedin.com/company/huntsman
Forward-Looking Statements:
Statements in this release that are not historical are forward-looking statements. These statements are based on management's current beliefs and expectations. The forward-looking statements in this release are subject to uncertainty and changes in circumstances and involve risks and uncertainties that may affect the company's operations, markets, products, services, prices and other factors as discussed in the Huntsman companies' filings with the U.S. Securities and Exchange Commission. Significant risks and uncertainties may relate to, but are not limited to, financial, economic, competitive, environmental, political, legal, regulatory and technological factors. The company assumes no obligation to provide revisions to any forward-looking statements should circumstances change, except as otherwise required by applicable laws.
SOURCE Huntsman Corporation
Article Date
10/13/201610/5/2016 - Huntsman Releases 2015 Sustainability Report
Huntsman Releases 2015 Sustainability Report
Source: PR Newswire
THE WOODLANDS, Texas, Oct. 5, 2016 /PRNewswire/ -- Huntsman Corporation (NYSE: HUN) today published its latest corporate sustainability report titled, "The Power of Less: Energy Conservation & Efficiency in the Value Chain," on its web site at www.huntsman.com/sustainability.
"The Power of Less" explores the many ways the company actively works to conserve and become more efficient in its own use of energy while creating products and technologies that help consumers do the same – from light-weighting cars and airplanes for greater fuel efficiency to developing construction materials that make buildings and homes more energy efficient.
Population growth and urbanization, and the strain on natural resources that results, are megatrends that make energy use central to Huntsman's sustainability efforts. The company is committed to finding solutions to help balance society's need for energy with the need to minimize consumption and its effect on the planet.
"The impact energy production has on our world's climate poses significant challenges," said Ron Gerrard, Corporate Sustainability Officer. "As a chemical manufacturer, Huntsman plays a role in supporting the development of alternative sources of energy – like wind and solar – and in the construction and transportation industries, where our innovative products are helping customers conserve and use energy more efficiently. Further, we are constantly looking at ways to make our manufacturing processes more efficient to reduce our total energy consumption."
"The Power of Less" discusses how Huntsman works to conserve the world's energy resources across the value chain: incoming supply, process management, product innovation, and distribution. The report covers the corporation's sustainability initiatives from calendar year 2015 and includes Huntsman's annual Communication on Progress to the United Nations Global Compact.
This is Huntsman's sixth sustainability report since launching its corporate sustainability initiative in 2010.
About Huntsman:
Huntsman Corporation is a publicly traded global manufacturer and marketer of differentiated chemicals with 2015 revenues of approximately $10 billion. Our chemical products number in the thousands and are sold worldwide to manufacturers serving a broad and diverse range of consumer and industrial end markets. We operate more than 100 manufacturing and R&D facilities in approximately 30 countries and employ approximately 15,000 associates within our 5 distinct business divisions. For more information about Huntsman, please visit the company's website at www.huntsman.com.
Social Media:
Twitter: www.twitter.com/Huntsman_Corp
Facebook: www.facebook.com/huntsmancorp
LinkedIn: www.linkedin.com/company/huntsman
Forward-Looking Statements:
Statements in this release that are not historical are forward-looking statements. These statements are based on management's current beliefs and expectations. The forward-looking statements in this release are subject to uncertainty and changes in circumstances and involve risks and uncertainties that may affect the company's operations, markets, products, services, prices and other factors as discussed in the Huntsman companies' filings with the U.S. Securities and Exchange Commission. Significant risks and uncertainties may relate to, but are not limited to, financial, economic, competitive, environmental, political, legal, regulatory and technological factors. The company assumes no obligation to provide revisions to any forward-looking statements should circumstances change, except as otherwise required by applicable laws.
SOURCE Huntsman Corporation
Article Date
10/5/201610/4/2016 - Huntsman Polyurethanes Wins Prestigious BMW Supplier Innovation Award For Sustainability
Huntsman Polyurethanes Wins Prestigious BMW Supplier Innovation Award For Sustainability
Source: PR Newswire
Orignial Article: http://www.prnewswire.com...
THE WOODLANDS, Texas, Oct. 4, 2016 /PRNewswire/ -- Global chemical company Huntsman (NYSE: HUN) today announced that its polyurethanes division has won a prestigious Supplier Innovation Award from BMW Group for developing a technology which dramatically reduces total emissions from the high performance polyurethane seating foam used in its vehicles.
Across the automotive industry there is a drive to reduce emissions and odor generating impurities from seating foams, to improve passenger comfort and the overall driving experience. Huntsman's automotive team developed a unique MDI system, novel polyol and formaldehyde 'scavenger' technology. This innovative chemistry enabled BMW to reduce total emissions from its seating foams by a factor of ten – without compromising comfort or quality. Huntsman is the only supplier to meet the BMW Group's ambitious requirements for molded foams.
Tony Hankins, President of Huntsman's Polyurethanes division, accepted the award at a ceremony on September 29 at the BMW Welt in Munich.
"BMW is well known for its exacting performance standards and Huntsman has been a long-term technology partner to the business, assisting in its drive for improved safety, performance, comfort and sustainability," Hankins said. "We are incredibly proud of this award and the difference that our technology will make to BMW customers worldwide."
About Huntsman:
Huntsman Corporation is a publicly traded global manufacturer and marketer of differentiated chemicals with 2015 revenues of approximately $10 billion. Our chemical products number in the thousands and are sold worldwide to manufacturers serving a broad and diverse range of consumer and industrial end markets. We operate more than 100 manufacturing and R&D facilities in approximately 30 countries and employ approximately 15,000 associates within our 5 distinct business divisions. For more information about Huntsman, please visit the company's website at www.huntsman.com
Social Media:
Twitter: www.twitter.com/Huntsman_Corp
Facebook: www.facebook.com/huntsmancorp
LinkedIn: www.linkedin.com/company/huntsman
Forward-Looking Statements:
Statements in this release that are not historical are forward-looking statements. These statements are based on management's current beliefs and expectations. The forward-looking statements in this release are subject to uncertainty and changes in circumstances and involve risks and uncertainties that may affect the company's operations, markets, products, services, prices and other factors as discussed in the Huntsman companies' filings with the U.S. Securities and Exchange Commission. Significant risks and uncertainties may relate to, but are not limited to, financial, economic, competitive, environmental, political, legal, regulatory and technological factors. The company assumes no obligation to provide revisions to any forward-looking statements should circumstances change, except as otherwise required by applicable laws.
Photo - http://photos.prnewswire.com/prnh/20161004/414870
SOURCE Huntsman Corporation
Article Date
10/4/20168/30/2016 - Huntsman Announces Third Quarter Dividend
Huntsman Announces Third Quarter Dividend
Source: PR Newswire
Orignial Article: http://www.prnewswire.com...
THE WOODLANDS, Texas, Aug. 30, 2016 /PRNewswire/ -- Huntsman Corporation (NYSE: HUN) announced today that the company's board of directors has declared a $0.125 per share cash dividend on its common stock.
The dividend is payable on September 30, 2016 to stockholders of record as of September 15, 2016.
About Huntsman:
Huntsman Corporation is a publicly traded global manufacturer and marketer of differentiated chemicals with 2015 revenues of more than $10 billion. Our chemical products number in the thousands and are sold worldwide to manufacturers serving a broad and diverse range of consumer and industrial end markets. We operate more than 100 manufacturing and R&D facilities in approximately 30 countries and employ approximately 15,000 associates within our 5 distinct business divisions. For more information about Huntsman, please visit the company's website at www.huntsman.com.
Social Media:
Twitter: twitter.com/Huntsman_Corp
Facebook: www.facebook.com/huntsmancorp
LinkedIn: www.linkedin.com/company/huntsman
Forward-Looking Statements:
Statements in this release that are not historical are forward-looking statements. These statements are based on management's current beliefs and expectations. The forward-looking statements in this release are subject to uncertainty and changes in circumstances and involve risks and uncertainties that may affect the company's operations, markets, products, services, prices and other factors as discussed in the Huntsman companies' filings with the U.S. Securities and Exchange Commission. Significant risks and uncertainties may relate to, but are not limited to, financial, economic, competitive, environmental, political, legal, regulatory and technological factors. The company assumes no obligation to provide revisions to any forward-looking statements should circumstances change, except as otherwise required by applicable laws.
SOURCE Huntsman Corporation
Article Date
8/30/2016Innospec Commits To Purchase Huntsman's European Surfactants Business For $225 Million
Source: PR Newswire
THE WOODLANDS, Texas, Aug. 3, 2016 /PRNewswire/ -- Huntsman Corporation (NYSE: HUN) today announced that Innospec Inc. (NASDAQ: IOSP) has committed to purchase Huntsman's European surfactants business. Under the terms of the planned transaction, Innospec would acquire Huntsman's manufacturing facilities located in Saint-Mihiel, France; Castiglione delle Stiviere, Italy; and Barcelona, Spain.
As part of the $225 million enterprise value, Huntsman would retain its related accounts receivables and trade payables. The business represents approximately $24 million of EBITDA. Closing is expected to occur by the end of the fourth quarter of 2016, and is subject to customary conditions, including the representative bodies consultation processes where required by applicable law. Net proceeds of the sale would be used to repay debt. This debt repayment would be in addition to Huntsman's recent $100 million debt reduction that occurred on July 22, 2016, and the proceeds would also be in addition to Huntsman's stated objective of generating more than $350 million of free cash flow in 2016.
Huntsman remains committed to its global surfactants business, including in the United States and Australia, where its differentiated surfactants businesses are backward integrated into essential feedstocks. Huntsman plans to retain certain core products strategic to its global agrochemicals lubes and certain other businesses. Upon consummating the planned transaction, Huntsman would enter into supply and long-term tolling arrangements with Innospec in order to continue marketing certain of these products.
In 2014, Huntsman sold its European commodity surfactants business. The planned transaction with Innospec represents another step in Huntsman's strategic transformation of its Performance Products business. This business is currently expanding its downstream positioning with a polyetheramines expansion in Singapore, as well as undertaking a substantial cost savings and business improvement initiative.
Peter R. Huntsman, President and CEO of Huntsman Corporation, commented:
"This proposed transaction is consistent with our strategic financial objectives of increasing our cash flow generation, growing our downstream differentiated businesses and separating our titanium dioxide business. We plan to use the proceeds from this sale to repay our debt and strengthen our balance sheet. The decoupling of our European surfactants business would allow us to concentrate our focus and grow businesses within our portfolio with greater long term strategic fit. Additional reshaping of Huntsman will occur soon, as we are actively working towards a spin-off of our titanium dioxide, additives and textile effects businesses."
About Huntsman:
Huntsman Corporation is a publicly traded global manufacturer and marketer of differentiated chemicals with 2015 revenues of more than $10 billion. Our chemical products number in the thousands and are sold worldwide to manufacturers serving a broad and diverse range of consumer and industrial end markets. We operate more than 100 manufacturing and R&D facilities in approximately 30 countries and employ approximately 15,000 associates within our 5 distinct business divisions. For more information about Huntsman, please visit the company's website at www.huntsman.com.
Social Media:
Twitter: twitter.com/Huntsman_Corp
Facebook: www.facebook.com/huntsmancorp
LinkedIn: www.linkedin.com/company/huntsman
Forward-Looking Statements:
Statements in this release that are not historical are forward-looking statements. These statements are based on management's current beliefs and expectations. The forward-looking statements in this release are subject to uncertainty and changes in circumstances and involve risks and uncertainties that may affect the company's operations, markets, products, services, prices and other factors as discussed in the Huntsman companies' filings with the U.S. Securities and Exchange Commission. Significant risks and uncertainties may relate to, but are not limited to, financial, economic, competitive, environmental, political, legal, regulatory and technological factors. The company assumes no obligation to provide revisions to any forward-looking statements should circumstances change, except as otherwise required by applicable laws.
SOURCE Huntsman Corporation
Article Date
8/3/2016Huntsman Announces Second Quarter Results; Reports Attractive MDI Margin Growth, Improving Sequential TiO2 Prices and Substantial Improvement in Cash Generation
Source: PR Newswire
Orignial Article: http://www.prnewswire.com...
THE WOODLANDS, Texas, July 27, 2016 /PRNewswire/ --
Second Quarter 2016 Highlights
|
Three months ended |
Six months ended | |||||||||
|
June 30, |
March 31, |
June 30, | ||||||||
|
In millions, except per share amounts |
2016 |
2015 |
2016 |
2016 |
2015 | |||||
|
Revenues |
$2,544 |
$2,740 |
$ 2,355 |
$ 4,899 |
$ 5,329 | |||||
|
Net income |
$ 94 |
$ 39 |
$ 62 |
$ 156 |
$ 54 | |||||
|
Adjusted net income(1) |
$ 126 |
$ 155 |
$ 88 |
$ 214 |
$ 253 | |||||
|
Diluted income per share |
$ 0.36 |
$ 0.12 |
$ 0.24 |
$ 0.60 |
$ 0.14 | |||||
|
Adjusted diluted income per share(1) |
$ 0.53 |
$ 0.63 |
$ 0.37 |
$ 0.90 |
$ 1.02 | |||||
|
Adjusted EBITDA(1) |
$ 325 |
$ 385 |
$ 274 |
$ 599 |
$ 670 | |||||
|
See end of press release for footnote explanations | ||||||||||
Huntsman Corporation (NYSE: HUN) today reported second quarter 2016 results with revenues of $2,544 million, net income of $94 million and adjusted EBITDA of $325 million.
Peter R. Huntsman, our President and CEO, commented:
"Our management team is focused on three primary strategic financial objectives. 1) Generating more than $350 million of free cash flow in 2016. 2) Growing margins and earnings in our downstream differentiated businesses. 3) Separating our TiO2 business through either a strategic combination or a spin-off.
"Our second quarter results demonstrate our commitment to these objectives. I am delighted we generated $282 million of free cash flow during the quarter, in part due to our increased focus on inventory management and are on plan to exceed our $350 million target. This enabled us to make a $100 million early repayment of debt in July. Our MDI margins are expanding, our Performance Products margins are healthy and our Advanced Materials business is maintaining strong margins. We are actively working toward a separation of our TiO2 business with a target of year-end or first quarter 2017. TiO2 selling prices are rising and other business conditions are improving for our Pigments and Additives business. In time, it should be well positioned for our planned separation. We will provide more information regarding the separation on our second quarter earnings conference call.
"I am encouraged by our second quarter results. We are well on track to successfully accomplish our objectives."
Segment Analysis for 2Q16 Compared to 2Q15
Polyurethanes
The decrease in revenues in our Polyurethanes division for the three months ended June 30, 2016 compared to the same period in 2015 was primarily due to lower average selling prices partially offset by higher sales volumes. MDI average selling prices decreased in response to lower raw material costs. MTBE average selling prices decreased primarily as a result of lower pricing for high octane gasoline. MDI sales volumes increased due to higher demand in the Americas and European regions. PO/MTBE sales volumes increased due to the impact of the prior year planned maintenance outage. The increase in adjusted EBITDA was primarily due to the impact of the prior year planned PO/MTBE maintenance outage, estimated at $30 million, as well as higher MDI margins and sales volumes, partially offset by lower MTBE margins.
Performance Products
The decrease in revenues in our Performance Products division for the three months ended June 30, 2016 compared to the same period in 2015 was due to lower average selling prices and lower sales volumes. Average selling prices decreased primarily in response to lower raw material costs and competitive market conditions. Sales volumes decreased primarily due to softer demand in China and oilfield applications as well as competitive market conditions. The decrease in adjusted EBITDA was primarily due to lower margins in our amines, maleic anhydride and upstream intermediates businesses.
Advanced Materials
The decrease in revenues in our Advanced Materials division for the three months ended June 30, 2016 compared to the same period in 2015 was due to lower sales volumes and lower average selling prices. Sales volumes decreased primarily due to soft demand for low value business in our coatings and construction market, partially offset by growth in our aerospace market across all regions. Average selling prices decreased in our Asia Pacific region primarily as a result of competitive pressure in our electrical and wind markets, partially offset by higher average selling prices in our European and Americas regions. Adjusted EBITDA was unchanged as higher contribution margins from lower raw material costs were offset by lower sales volumes.
Textile Effects
The decrease in revenues in our Textile Effects division for the three months ended June 30, 2016 compared to the same period in 2015 was due to lower average selling prices partially offset by higher sales volumes. Average selling prices decreased primarily due to lower raw material costs. Sales volumes increased in key target countries such as Bangladesh and India. The increase in adjusted EBITDA was primarily due to higher contribution margins from lower raw material costs.
Pigments and Additives
The decrease in revenues in our Pigments and Additives division for the three months ended June 30, 2016 compared to the same period in 2015 was due to lower average selling prices, partially offset by higher sales volumes. Average selling prices decreased primarily as a result of competitive pressure however they increased compared to the prior quarter. Sales volumes increased primarily due to increased end use demand. The decrease in adjusted EBITDA was primarily due to lower contribution margins for titanium dioxide.
Corporate, LIFO and Other
Adjusted EBITDA from Corporate, LIFO and Other decreased by $14 million to a loss of $45 million for the three months ended June 30, 2016 compared to a loss of $31 million for the same period in 2015. The decrease in adjusted EBITDA was primarily the result of a decrease in LIFO inventory valuation income and a decrease in income from benzene sales.
Liquidity, Capital Resources and Outstanding Debt
As of June 30, 2016, we had $1,213 million of combined cash and unused borrowing capacity compared to $1,023 million on December 31, 2015.
On April 1, 2016, we entered into a new $550 million 2016 term loan B due 2023. Proceeds from the new term loan were used to repay in full our term loan B due 2017 and remaining term loan C due 2016. We also extended the maturity of our revolving credit facility to 2021 and increased the amount to $650 million.
On July 22, 2016, we made a $100 million early repayment of debt on our term loan B due 2019. We expect to record less than $1 million in early extinguishment of debt costs in the third quarter 2016.
Total capital expenditures for the three months and six months ended June 30, 2016 were $90 million and $189 million, respectively. As part of our completed ethylene oxide expansion in Port Neches, Texas, we received $26 million of capital reimbursement during the second quarter of 2016 from our customer with whom we have a multi-year offtake agreement. We expect to spend approximately $450 million annually on capital expenditures in 2016 and 2017.
We expect our 2016 depreciation and amortization to be approximately $430 million.
Income Taxes
During the three months ended June 30, 2016, we recorded an income tax expense of $32 million. During the same period we paid $16 million in cash for income taxes.
We expect our 2016 adjusted effective tax rate to be approximately 25 – 30%. Our MTBE earnings are taxed at the U.S. statutory rate of 35%, variability in our MTBE earnings will have a meaningful impact on where our adjusted tax rate will be within that range. We expect our long term adjusted effective tax rate to be approximately 30%.
Earnings Conference Call Information
We will hold a conference call to discuss our second quarter 2016 financial results on Wednesday, July 27, 2016 at 11:00 a.m. ET.
|
Call-in numbers for the conference call: | |
|
U.S. participants |
(888) 713 - 4218 |
|
International participants |
(617) 213 - 4870 |
|
Passcode |
478 152 79# |
In order to facilitate the registration process, you may use the following link to pre-register for the conference call. Callers who pre-register will be given a unique PIN to gain immediate access to the call and bypass the live operator. You may pre-register at any time, including up to and after the call start time. To pre-register, please go to: https://www.theconferencingservice.com/prereg/key.process?key=PMUG7QP3W
Webcast Information
The conference call will be available via webcast and can be accessed from the company's website at ir.huntsman.com.
Replay Information
The conference call will be available for replay beginning July 27, 2016 and ending August 3, 2016.
|
Call-in numbers for the replay: | |
|
U.S. participants |
(888) 286 - 8010 |
|
International participants |
(617) 801 - 6888 |
|
Replay code |
27138577 |
Upcoming Conferences
During the third quarter a member of management will present at the Jefferies Industrials Conference, August 10, 2016. A webcast of the presentation, if applicable, along with accompanying materials will be available at ir.huntsman.com.
|
Table 1 -- Results of Operations | ||||||||
|
Three months ended |
Six months ended | |||||||
|
June 30, |
June 30, | |||||||
|
In millions, except per share amounts |
2016 |
2015 |
2016 |
2015 | ||||
|
Revenues |
$2,544 |
$2,740 |
$4,899 |
$5,329 | ||||
|
Cost of goods sold |
2,087 |
2,191 |
4,026 |
4,330 | ||||
|
Gross profit |
457 |
549 |
873 |
999 | ||||
|
Operating expenses |
252 |
289 |
517 |
569 | ||||
|
Restructuring, impairment and plant closing costs |
29 |
114 |
42 |
207 | ||||
|
Operating income |
176 |
146 |
314 |
223 | ||||
|
Interest expense |
(50) |
(53) |
(100) |
(109) | ||||
|
Equity in income of investment in unconsolidated affiliates |
2 |
3 |
3 |
5 | ||||
|
Loss on early extinguishment of debt |
(2) |
(20) |
(2) |
(23) | ||||
|
Other income (loss) |
1 |
(1) |
2 |
(2) | ||||
|
Income before income taxes |
127 |
75 |
217 |
94 | ||||
|
Income tax expense |
(32) |
(34) |
(59) |
(36) | ||||
|
Income from continuing operations |
95 |
41 |
158 |
58 | ||||
|
Loss from discontinued operations, net of tax(2) |
(1) |
(2) |
(2) |
(4) | ||||
|
Net income |
94 |
39 |
156 |
54 | ||||
|
Net income attributable to noncontrolling interests, net of tax |
(7) |
(10) |
(13) |
(20) | ||||
|
Net income attributable to Huntsman Corporation |
$ 87 |
$ 29 |
$ 143 |
$ 34 | ||||
|
Adjusted EBITDA(1) |
$ 325 |
$ 385 |
$ 599 |
$ 670 | ||||
|
Adjusted net income(1) |
$ 126 |
$ 155 |
$ 214 |
$ 253 | ||||
|
Basic income per share |
$ 0.37 |
$ 0.12 |
$ 0.61 |
$ 0.14 | ||||
|
Diluted income per share |
$ 0.36 |
$ 0.12 |
$ 0.60 |
$ 0.14 | ||||
|
Adjusted diluted income per share(1) |
$ 0.53 |
$ 0.63 |
$ 0.90 |
$ 1.02 | ||||
|
Common share information: |
||||||||
|
Basic shares outstanding |
236 |
244 |
236 |
244 | ||||
|
Diluted shares |
240 |
248 |
238 |
247 | ||||
|
Diluted shares for adjusted diluted income per share |
240 |
248 |
238 |
247 | ||||
|
See end of press release for footnote explanations | ||||||||
|
Table 2 -- Results of Operations by Segment | ||||||||||||
|
Three months ended |
Six months ended |
|||||||||||
|
June 30, |
Better / |
June 30, |
Better / | |||||||||
|
In millions |
2016 |
2015 |
(Worse) |
2016 |
2015 |
(Worse) | ||||||
|
Segment Revenues: |
||||||||||||
|
Polyurethanes |
$ 976 |
$ 995 |
(2)% |
$1,812 |
$1,885 |
(4)% | ||||||
|
Performance Products |
566 |
675 |
(16)% |
1,102 |
1,331 |
(17)% | ||||||
|
Advanced Materials |
261 |
282 |
(7)% |
527 |
572 |
(8)% | ||||||
|
Textile Effects |
198 |
216 |
(8)% |
383 |
422 |
(9)% | ||||||
|
Pigments & Additives |
576 |
592 |
(3)% |
1,116 |
1,164 |
(4)% | ||||||
|
Corporate and eliminations |
(33) |
(20) |
n/m |
(41) |
(45) |
n/m | ||||||
|
Total |
$2,544 |
$2,740 |
(7)% |
$4,899 |
$5,329 |
(8)% | ||||||
|
Segment Adjusted EBITDA(1): |
||||||||||||
|
Polyurethanes |
$ 171 |
$ 159 |
8% |
$ 302 |
$ 264 |
14% | ||||||
|
Performance Products |
86 |
141 |
(39)% |
178 |
262 |
(32)% | ||||||
|
Advanced Materials |
58 |
58 |
0% |
118 |
116 |
2% | ||||||
|
Textile Effects |
24 |
23 |
4% |
42 |
40 |
5% | ||||||
|
Pigments & Additives |
31 |
35 |
(11)% |
46 |
56 |
(18)% | ||||||
|
Corporate, LIFO and other |
(45) |
(31) |
(45)% |
(87) |
(68) |
(28)% | ||||||
|
Total |
$ 325 |
$ 385 |
(16)% |
$ 599 |
$ 670 |
(11)% | ||||||
|
n/m = not meaningful | ||||||||||||
|
See end of press release for footnote explanations |
|
Table 3 -- Factors Impacting Sales Revenue | |||||||||||
|
Three months ended |
|||||||||||
|
June 30, 2016 vs. 2015 |
|||||||||||
|
Average Selling Price(a) |
|||||||||||
|
Local |
Exchange |
Sales Mix |
Sales |
||||||||
|
Currency |
Rate |
& Other |
Volume(b) |
Total |
|||||||
|
Polyurethanes |
(19)% |
0% |
(7)% |
24% |
(2)% |
||||||
|
Polyurethanes, adj |
(19)% |
0% |
(7)% |
15% |
(11)% |
(c) | |||||
|
Performance Products |
(9)% |
0% |
(3)% |
(4)% |
(16)% |
||||||
|
Advanced Materials |
(1)% |
(1)% |
4% |
(9)% |
(7)% |
||||||
|
Textile Effects |
(7)% |
(2)% |
0% |
1% |
(8)% |
||||||
|
Pigments & Additives |
(8)% |
1% |
1% |
3% |
(3)% |
||||||
|
Total Company |
(12)% |
0% |
(5)% |
10% |
(7)% |
||||||
|
Total Company, adj |
(12)% |
0% |
(5)% |
6% |
(11)% |
(c) | |||||
|
Six months ended |
|||||||||||
|
June 30, 2016 vs. 2015 |
|||||||||||
|
Average Selling Price(a) |
|||||||||||
|
Local |
Exchange |
Sales Mix |
Sales |
||||||||
|
Unaudited |
Currency |
Rate |
& Other |
Volume(b) |
Total |
||||||
|
Polyurethanes |
(19)% |
(1)% |
(3)% |
19% |
(4)% |
||||||
|
Polyurethanes, adj |
(19)% |
(1)% |
(3)% |
9% |
(14)% |
(c) | |||||
|
Performance Products |
(11)% |
(1)% |
(6)% |
1% |
(17)% |
||||||
|
Advanced Materials |
(2)% |
(3)% |
3% |
(6)% |
(8)% |
||||||
|
Textile Effects |
(4)% |
(4)% |
(1)% |
0% |
(9)% |
||||||
|
Pigments & Additives |
(9)% |
(1)% |
1% |
5% |
(4)% |
||||||
|
Total Company |
(13)% |
(1)% |
(3)% |
9% |
(8)% |
||||||
|
Total Company, adj |
(13)% |
(1)% |
(3)% |
6% |
(11)% |
(c) | |||||
|
(a) Excludes sales from tolling arrangements, by-products and raw materials. | |||||||||||
|
(b) Excludes sales from by-products and raw materials. | |||||||||||
|
(c) Excludes volume impact from the planned maintenance at our PO/MTBE facility that occurred in 1H15. | |||||||||||
|
Table 4 -- Reconciliation of U.S. GAAP to Non-GAAP Measures | ||||||||||||||||
|
Income Tax |
Diluted Income | |||||||||||||||
|
EBITDA |
(Expense) Benefit |
Net Income |
Per Share | |||||||||||||
|
Three months ended |
Three months ended |
Three months ended |
Three months ended | |||||||||||||
|
June 30, |
June 30, |
June 30, |
June 30, | |||||||||||||
|
In millions, except per share amounts |
2016 |
2015 |
2016 |
2015 |
2016 |
2015 |
2016 |
2015 | ||||||||
|
Net income |
$ 94 |
$ 39 |
$ 94 |
$ 39 |
$ 0.39 |
$ 0.16 | ||||||||||
|
Net income attributable to noncontrolling interests |
(7) |
(10) |
(7) |
(10) |
(0.03) |
(0.04) | ||||||||||
|
Net income attributable to Huntsman Corporation |
87 |
29 |
87 |
29 |
0.36 |
0.12 | ||||||||||
|
Interest expense |
50 |
53 |
||||||||||||||
|
Income tax expense from continuing operations |
32 |
34 |
(32) |
(34) |
||||||||||||
|
Income tax expense from discontinued operations(2) |
- |
1 |
||||||||||||||
|
Depreciation and amortization |
109 |
99 |
||||||||||||||
|
Acquisition and integration expenses, purchase accounting adjustments |
4 |
12 |
- |
(3) |
4 |
9 |
0.02 |
0.04 | ||||||||
|
Loss from discontinued operations, net of tax(2) |
1 |
1 |
N/A |
N/A |
1 |
2 |
- |
0.01 | ||||||||
|
Loss on disposition of businesses/assets |
- |
1 |
- |
- |
- |
1 |
- |
- | ||||||||
|
Loss on early extinguishment of debt |
2 |
20 |
(1) |
(7) |
1 |
13 |
- |
0.05 | ||||||||
|
Certain legal settlements and related expenses |
- |
1 |
- |
(1) |
- |
- |
- |
- | ||||||||
|
Plant incident remediation credits, net |
(7) |
- |
1 |
- |
(6) |
- |
(0.03) |
- | ||||||||
|
Amortization of pension and postretirement actuarial losses |
17 |
19 |
(3) |
(5) |
14 |
14 |
0.06 |
0.06 | ||||||||
|
Restructuring, impairment, plant closing and transition costs |
30 |
115 |
(5) |
(28) |
25 |
87 |
0.10 |
0.35 | ||||||||
|
Adjusted(1) |
$ 325 |
$ 385 |
$ (40) |
$ (78) |
$ 126 |
$ 155 |
$ 0.53 |
$ 0.63 | ||||||||
|
Adjusted income tax expense(4) |
$ 40 |
$ 78 |
||||||||||||||
|
Net income attributable to noncontrolling interests, net of tax |
7 |
10 |
||||||||||||||
|
Adjusted pre-tax income(1) |
$ 173 |
$ 243 |
||||||||||||||
|
Adjusted effective tax rate |
23% |
32% |
||||||||||||||
|
Income Tax |
Diluted Income | |||||||||||||||
|
EBITDA |
Expense |
Net Income |
Per Share | |||||||||||||
|
Three months ended |
Three months ended |
Three months ended |
Three months ended | |||||||||||||
|
March 31, |
March 31, |
March 31, |
March 31, | |||||||||||||
|
In millions, except per share amounts |
2016 |
2016 |
2016 |
2016 | ||||||||||||
|
Net income |
$ 62 |
$ 62 |
$ 0.26 |
|||||||||||||
|
Net income attributable to noncontrolling interests |
(6) |
(6) |
(0.03) |
|||||||||||||
|
Net income attributable to Huntsman Corporation |
56 |
56 |
0.24 |
|||||||||||||
|
Interest expense |
50 |
|||||||||||||||
|
Income tax expense from continuing operations |
27 |
(27) |
||||||||||||||
|
Income tax benefit from discontinued operations(2) |
(1) |
|||||||||||||||
|
Depreciation and amortization |
100 |
|||||||||||||||
|
Acquisition and integration expenses, purchase accounting adjustments |
9 |
(3) |
6 |
0.03 |
||||||||||||
|
Loss from discontinued operations, net of tax(2) |
2 |
N/A |
1 |
- |
||||||||||||
|
Certain legal settlements and related expenses |
1 |
- |
1 |
- |
||||||||||||
|
Plant incident remediation costs, net |
1 |
- |
1 |
- |
||||||||||||
|
Amortization of pension and postretirement actuarial losses |
16 |
(3) |
13 |
0.05 |
||||||||||||
|
Restructuring, impairment, plant closing and transition costs |
13 |
(3) |
10 |
0.04 |
||||||||||||
|
Adjusted(1) |
$ 274 |
$ (36) |
$ 88 |
$ 0.37 |
||||||||||||
|
Adjusted income tax expense(4) |
$ 36 |
|||||||||||||||
|
Net income attributable to noncontrolling interests, net of tax |
6 |
|||||||||||||||
|
Adjusted pre-tax income(1) |
$ 130 |
|||||||||||||||
|
Adjusted effective tax rate |
28% |
|||||||||||||||
|
Income Tax |
Diluted Income | |||||||||||||||
|
EBITDA |
(Expense) Benefit |
Net Income |
Per Share | |||||||||||||
|
Six months ended |
Six months ended |
Six months ended |
Six months ended | |||||||||||||
|
June 30, |
June 30, |
June 30, |
June 30, | |||||||||||||
|
In millions, except per share amounts |
2016 |
2015 |
2016 |
2015 |
2016 |
2015 |
2016 |
2015 | ||||||||
|
Net income |
$ 156 |
$ 54 |
$ 156 |
$ 54 |
$ 0.65 |
$ 0.22 | ||||||||||
|
Net income attributable to noncontrolling interests |
(13) |
(20) |
(13) |
(20) |
(0.05) |
(0.08) | ||||||||||
|
Net income attributable to Huntsman Corporation |
143 |
34 |
143 |
34 |
0.60 |
0.14 | ||||||||||
|
Interest expense |
100 |
109 |
||||||||||||||
|
Income tax expense from continuing operations |
59 |
36 |
(59) |
(36) |
||||||||||||
|
Income tax (benefit) expense from discontinued operations(2) |
(1) |
2 |
||||||||||||||
|
Depreciation and amortization |
209 |
194 |
||||||||||||||
|
Acquisition and integration expenses, purchase accounting adjustments |
13 |
21 |
(3) |
(5) |
10 |
16 |
0.04 |
0.06 | ||||||||
|
Loss from discontinued operations, net of tax(2) |
3 |
2 |
N/A |
N/A |
2 |
4 |
0.01 |
0.02 | ||||||||
|
Loss on disposition of businesses/assets |
- |
1 |
- |
- |
- |
1 |
- |
- | ||||||||
|
Loss on early extinguishment of debt |
2 |
23 |
(1) |
(8) |
1 |
15 |
- |
0.06 | ||||||||
|
Certain legal settlements and related expenses |
1 |
2 |
- |
(1) |
1 |
1 |
- |
- | ||||||||
|
Plant incident remediation credits, net |
(6) |
- |
1 |
- |
(5) |
- |
(0.02) |
- | ||||||||
|
Amortization of pension and postretirement actuarial losses |
33 |
37 |
(6) |
(10) |
27 |
27 |
0.11 |
0.11 | ||||||||
|
Restructuring, impairment, plant closing and transition costs |
43 |
209 |
(8) |
(54) |
35 |
155 |
0.15 |
0.63 | ||||||||
|
Adjusted(1) |
$ 599 |
$ 670 |
$ (76) |
$ (114) |
$ 214 |
$ 253 |
$ 0.90 |
$ 1.02 | ||||||||
|
Adjusted income tax expense(4) |
$ 76 |
$ 114 |
||||||||||||||
|
Net income attributable to noncontrolling interests, net of tax |
13 |
20 |
||||||||||||||
|
Adjusted pre-tax income(1) |
$ 303 |
$ 387 |
||||||||||||||
|
Adjusted effective tax rate |
25% |
29% |
||||||||||||||
|
See end of press release for footnote explanations | ||||||||||||||||
|
Table 5 -- Selected Balance Sheet Items | |||||||
|
June 30, |
March 31, |
December 31, | |||||
|
In millions |
2016 |
2016 |
2015 | ||||
|
Cash |
$ 383 |
$ 218 |
$ 269 | ||||
|
Accounts and notes receivable, net |
1,546 |
1,572 |
1,449 | ||||
|
Inventories |
1,522 |
1,689 |
1,692 | ||||
|
Other current assets |
340 |
351 |
424 | ||||
|
Property, plant and equipment, net |
4,377 |
4,437 |
4,446 | ||||
|
Other assets |
1,559 |
1,573 |
1,540 | ||||
|
Total assets |
$ 9,727 |
$ 9,840 |
$ 9,820 | ||||
|
Accounts payable |
$ 991 |
$ 1,027 |
$ 1,061 | ||||
|
Other current liabilities |
602 |
652 |
686 | ||||
|
Current portion of debt |
96 |
103 |
170 | ||||
|
Long-term debt |
4,653 |
4,724 |
4,625 | ||||
|
Other liabilities |
1,677 |
1,649 |
1,649 | ||||
|
Total equity |
1,708 |
1,685 |
1,629 | ||||
|
Total liabilities and equity |
$ 9,727 |
$ 9,840 |
$ 9,820 | ||||
|
Table 6 -- Outstanding Debt | ||||||
|
June 30, |
March 31, |
December 31, | ||||
|
In millions |
2016 |
2016 |
2015 | |||
|
Debt: |
||||||
|
Senior credit facilities |
$ 2,435 |
$ 2,441 |
$ 2,454 | |||
|
Accounts receivable programs |
216 |
263 |
215 | |||
|
Senior notes |
1,862 |
1,872 |
1,850 | |||
|
Variable interest entities |
142 |
140 |
151 | |||
|
Other debt |
94 |
111 |
125 | |||
|
Total debt - excluding affiliates |
4,749 |
4,827 |
4,795 | |||
|
Total cash |
383 |
218 |
269 | |||
|
Net debt- excluding affiliates |
$ 4,366 |
$ 4,609 |
$ 4,526 | |||
|
Table 7 -- Summarized Statement of Cash Flows | |||||
|
Three months ended |
Six months ended | ||||
|
June 30, |
June 30, | ||||
|
In millions |
2016 |
2016 |
2015 | ||
|
Total cash at beginning of period(a) |
$ 218 |
$ 269 |
$ 870 | ||
|
Net cash provided by operating activities |
355 |
443 |
181 | ||
|
Net cash used in investing activities |
(73) |
(174) |
(233) | ||
|
Net cash used in financing activities |
(115) |
(153) |
(202) | ||
|
Effect of exchange rate changes on cash |
(2) |
- |
(7) | ||
|
Change in restricted cash |
- |
(2) |
(1) | ||
|
- |
|||||
|
Total cash at end of period(a) |
$ 383 |
$ 383 |
$ 608 | ||
|
Supplemental cash flow information: |
|||||
|
Cash paid for interest |
$ (68) |
$(103) |
$(115) | ||
|
Cash paid for income taxes |
(16) |
(21) |
(30) | ||
|
Cash paid for capital expenditures |
(90) |
(189) |
(296) | ||
|
Depreciation and amortization |
109 |
209 |
194 | ||
|
Changes in primary working capital: |
|||||
|
Accounts and notes receivable |
$ 15 |
$ (90) |
$(142) | ||
|
Inventories |
155 |
177 |
7 | ||
|
Accounts payable |
(25) |
(56) |
12 | ||
|
Total cash provided by (used in) primary working capital |
$ 145 |
$ 31 |
$(123) | ||
|
Three months ended |
Six months ended | ||||
|
June 30, |
June 30, | ||||
|
2016 |
2016 |
2015 | |||
|
Free cash flow(3): |
|||||
|
Net cash provided by operating activities |
$ 355 |
$ 443 |
$ 181 | ||
|
Capital expenditures |
(90) |
(189) |
(296) | ||
|
All other investing activities |
17 |
15 |
63 | ||
|
Excluding merger and acquisition activities(b) |
- |
- |
(3) | ||
|
Total free cash flow |
$ 282 |
$ 269 |
$ (55) | ||
|
Adjusted EBITDA |
$ 325 |
$ 599 |
$ 670 | ||
|
Capital expenditures |
(90) |
(189) |
(296) | ||
|
Interest |
(68) |
(103) |
(115) | ||
|
Income taxes |
(16) |
(21) |
(30) | ||
|
Primary working capital change |
145 |
31 |
(123) | ||
|
Restructuring |
(36) |
(56) |
(46) | ||
|
Pensions |
(18) |
(38) |
(55) | ||
|
Maintenance & other |
40 |
46 |
(60) | ||
|
Total free cash flow(3) |
$ 282 |
$ 269 |
$ (55) | ||
|
(a) Includes restricted cash. | |||||
|
(b) Represents "Acquisition of Business, net of cash acquired" and "Cash received from purchase price adjustment for business acquired" | |||||
|
Footnotes | |
|
(1) |
We use adjusted EBITDA to measure the operating performance of our business. We provide adjusted net income because we feel it provides meaningful insight for the investment community into the performance of our business. We believe that net income (loss) is the performance measure calculated and presented in accordance with generally accepted accounting principles in the U.S. ("GAAP") that is most directly comparable to adjusted EBITDA and adjusted net income. Additional information with respect to our use of each of these financial measures follows: |
|
Adjusted EBITDA, adjusted net income (loss) and adjusted diluted income (loss) per share, as used herein, are not necessarily comparable to other similarly titled measures of other companies. | |
|
Adjusted EBITDA is computed by eliminating the following from net income (loss): (a) net income attributable to noncontrolling interest, net of tax; (b) interest; (c) income taxes; (d) depreciation and amortization; (e) acquisition and integration expenses, purchase accounting adjustments; (f) EBITDA from discontinued operations; (g) loss (gain) on disposition of businesses/assets; (h) loss on early extinguishment of debt; (i) certain legal settlements and related expenses; (j) plant incident remediation costs (credits), net; (k) amortization of pension and postretirement actuarial losses (gains); and (l) restructuring, impairment, plant closing and transition costs (credits). The reconciliation of adjusted EBITDA to net income (loss) is set forth in Table 4 above. | |
|
Adjusted net income (loss) and adjusted diluted income (loss) per share are computed by eliminating the after tax impact of the following items from net income (loss): (a) net income attributable to noncontrolling interest; (b) acquisition and integration expenses, purchase accounting adjustments; (c) impact of certain foreign tax credit elections; (d) loss (income) from discontinued operations; (e) discount amortization on settlement financing associated with the terminated merger; (f) loss (gain) on disposition of businesses/assets; (g) loss on early extinguishment of debt; (h) certain legal settlements and related expenses; (i) plant incident remediation costs (credits), net; (j) amortization of pension and postretirement actuarial losses (gains); and (k) restructuring, impairment, plant closing and transition costs (credits). The income tax impacts, if any, of each adjusting item represent a ratable allocation of the total difference between the unadjusted tax expense and the total adjusted tax expense, computed without consideration of any adjusting items using a with and without approach. We do not adjust for changes in tax valuation allowances because we do not believe it provides more meaningful information than is provided under GAAP. The reconciliation of adjusted net income (loss) to net income (loss) is set forth in Table 4 above. | |
|
(2) |
During the first quarter 2010 we closed our Australian styrenics operations; results from associated business are treated as discontinued operations. |
|
(3) |
Management internally uses a free cash flow measure: (a) to evaluate the Company's liquidity, (b) to evaluate strategic investments, (c) to plan stock buyback and dividend levels and (d) to evaluate the Company's ability to incur and service debt. Free cash flow is not a defined term under U.S. GAAP, and it should not be inferred that the entire free cash flow amount is available for discretionary expenditures. The Company defines free cash flow as cash flow provided by operating activities less cash flow used in investing activities, excluding merger and acquisition activities. Free cash flow is typically derived directly from the Company's condensed consolidated statement of cash flows; however, it may be adjusted for items that affect comparability between periods. |
About Huntsman:
Huntsman Corporation is a publicly traded global manufacturer and marketer of differentiated chemicals with 2015 revenues of approximately $10 billion. Our chemical products number in the thousands and are sold worldwide to manufacturers serving a broad and diverse range of consumer and industrial end markets. We operate more than 100 manufacturing and R&D facilities in approximately 30 countries and employ approximately 15,000 associates within our 5 distinct business divisions. For more information about Huntsman, please visit the company's website at www.huntsman.com.
Social Media:
Twitter: twitter.com/Huntsman_Corp
Facebook: www.facebook.com/huntsmancorp
LinkedIn: www.linkedin.com/company/huntsman
Forward-Looking Statements:
Statements in this release that are not historical are forward-looking statements. These statements are based on management's current beliefs and expectations. The forward-looking statements in this release are subject to uncertainty and changes in circumstances and involve risks and uncertainties that may affect the company's operations, markets, products, services, prices and other factors as discussed in the Huntsman companies' filings with the U.S. Securities and Exchange Commission. Significant risks and uncertainties may relate to, but are not limited to, financial, economic, competitive, environmental, political, legal, regulatory and technological factors. The company assumes no obligation to provide revisions to any forward-looking statements should circumstances change, except as otherwise required by applicable laws.
SOURCE Huntsman Corporation
Article Date
7/27/2016Huntsman to Discuss Second Quarter 2016 Results on July 27, 2016
Source: PR Newswire
Orignial Article: http://www.prnewswire.com...
THE WOODLANDS, Texas, July 13, 2016 /PRNewswire/ -- Huntsman Corporation (NYSE: HUN) will hold a conference call to discuss its second quarter 2016 financial results on Wednesday, July 27, 2016 at 11:00 a.m. ET. Second quarter 2016 results will be released to the public at approximately 6:00 a.m. ET that day via PR Newswire.
|
Call-in numbers for the conference call: |
|
|
U.S. participants |
(888) 713 - 4218 |
|
International participants |
(617) 213 - 4870 |
|
Passcode |
478 152 79# |
In order to facilitate the registration process, you may use the following link to pre-register for the conference call. Callers who pre-register will be given a unique PIN to gain immediate access to the call and bypass the live operator. You may pre-register at any time, including up to and after the call start time. To pre-register, please go to: https://www.theconferencingservice.com/prereg/key.process?key=PMUG7QP3W
Webcast Information
The conference call will be available via webcast and can be accessed from the company's website at ir.huntsman.com.
Replay Information
The conference call will be available for replay beginning July 27, 2016 and ending August 3, 2016.
|
Call-in numbers for the replay: |
|
|
U.S. participants |
(888) 286 - 8010 |
|
International participants |
(617) 801 - 6888 |
|
Replay code |
27138577 |
About Huntsman:
Huntsman Corporation is a publicly traded global manufacturer and marketer of differentiated chemicals with 2015 revenues of more than $10 billion. Our chemical products number in the thousands and are sold worldwide to manufacturers serving a broad and diverse range of consumer and industrial end markets. We operate more than 100 manufacturing and R&D facilities in approximately 30 countries and employ approximately 15,000 associates within our 5 distinct business divisions. For more information about Huntsman, please visit the company's website at www.huntsman.com.
Social Media:
Twitter: twitter.com/Huntsman_Corp
Facebook: www.facebook.com/huntsmancorp
LinkedIn: www.linkedin.com/company/huntsman
Forward-Looking Statements:
Statements in this release that are not historical are forward-looking statements. These statements are based on management's current beliefs and expectations. The forward-looking statements in this release are subject to uncertainty and changes in circumstances and involve risks and uncertainties that may affect the company's operations, markets, products, services, prices and other factors as discussed in the Huntsman companies' filings with the U.S. Securities and Exchange Commission. Significant risks and uncertainties may relate to, but are not limited to, financial, economic, competitive, environmental, political, legal, regulatory and technological factors. The company assumes no obligation to provide revisions to any forward-looking statements should circumstances change, except as otherwise required by applicable laws.
SOURCE Huntsman Corporation
Article Date
7/13/20167/6/2016 - Huntsman Announces Plan to Close its South African Titanium Dioxide (TiO2) Manufacturing Facility
Huntsman Announces Plan to Close its South African Titanium Dioxide (TiO2) Manufacturing Facility
Source: PR Newswire
Orignial Article: http://www.prnewswire.com...
THE WOODLANDS, Texas, July 6, 2016 /PRNewswire/ -- Huntsman Corporation (NYSE: HUN) announced today a plan to close its 25,000 metric ton TiO2 manufacturing facility based in Umbogintwini, South Africa during the fourth quarter 2016. Closure of the facility will have a cash pay-back of less than two years. Cost savings from this closure are in addition to the approximately $200 million previously announced.
Employing approximately 140 Associates, the Umbogintwini plant is the smallest and oldest TiO2 manufacturing plant in the Pigments and Additives division. Under the proposed plan, production at the plant will end during the fourth quarter 2016 after which Huntsman will serve its customers in the region with existing capacity from its European TiO2 facilities.
Simon Turner, President of Huntsman Pigments and Additives division said: "Our margins remain well below historical norms despite some recent recovery from trough conditions. It is critical that we continue our successful cost reduction and synergy program to combat such conditions. We have sufficient capacity across our production network to allow us to close our smallest facility, still meet our customers' needs and improve our overall competitiveness. We appreciate the support of our associates at the Umbogintwini facility and we will work closely with them and our representative groups to ensure that we manage this difficult situation with due care and respect."
Peter R. Huntsman, President and CEO of Huntsman Corporation commented: "This closure increases the competitive positioning of our Pigments and Additives business and is an important step in the process as we work towards a separation. The separation of our Pigments and Additives business will come through either a spin to our shareholders or other strategic transaction. We continue to diligently work towards this objective."
About Huntsman:
Huntsman Corporation is a publicly traded global manufacturer and marketer of differentiated chemicals with 2015 revenues of more than $10 billion. Our chemical products number in the thousands and are sold worldwide to manufacturers serving a broad and diverse range of consumer and industrial end markets. We operate more than 100 manufacturing and R&D facilities in approximately 30 countries and employ approximately 15,000 associates within our 5 distinct business divisions. For more information about Huntsman, please visit the company's website at www.huntsman.com.
Social Media:
Twitter: twitter.com/Huntsman_Corp
Facebook: www.facebook.com/huntsmancorp
LinkedIn: www.linkedin.com/company/huntsman
Forward-Looking Statements:
Statements in this release that are not historical are forward-looking statements. These statements are based on management's current beliefs and expectations. The forward-looking statements in this release are subject to uncertainty and changes in circumstances and involve risks and uncertainties that may affect the company's operations, markets, products, services, prices and other factors as discussed in the Huntsman companies' filings with the U.S. Securities and Exchange Commission. Significant risks and uncertainties may relate to, but are not limited to, financial, economic, competitive, environmental, political, legal, regulatory and technological factors. The company assumes no obligation to provide revisions to any forward-looking statements should circumstances change, except as otherwise required by applicable laws.
SOURCE Huntsman Corporation
Article Date
7/6/2016Huntsman Names New President of Textile Effects Division
Source: PR Newswire
Orignial Article: http://www.prnewswire.com...
THE WOODLANDS, Texas, June 2, 2016 /PRNewswire/ -- Huntsman Corporation (NYSE: HUN) today announced that Rohit Aggarwal will succeed Paul Hulme as President of Huntsman's Textile Effects division, effective July 31, 2016.
Most recently Huntsman's Vice President and Managing Director of Indian Subcontinent, a position he has held since July 1, 2015, Aggarwal joined Huntsman in 2005 and has held various positions within the corporation's Advanced Materials and Textile Effects divisions. In 2013 he left Huntsman to join Louis Dreyfus Commodities B.V. as Chief Executive Officer of Asia Region, a position he held until his return in 2015.
Aggarwal has more than 20 years' experience in the chemical industry across multiple chemical specialties. He holds a degree in mechanical engineering from Maharaja Sayajirao University of Baroda, India, and a master's degree in International Business from Indian Institute of Foreign Trade, New Delhi.
After 17 years with Huntsman, Paul Hulme has elected to retire as President of Textile Effects division, a position he has held since 2006. Hulme joined Huntsman in 1999 with the acquisition of Imperial Chemical Industries (ICI), where he spent the first 15 years of his career. He subsequently held a variety of senior roles throughout Huntsman.
Huntsman President and CEO Peter Huntsman said: "I would like to express my sincere appreciation to Paul for his dedicated service to Huntsman for more than three decades. Ten years ago, when Paul assumed leadership of our Textile Effects division, the textile sector was facing acute economic and environmental challenges. Today our textile business is aligned with the industry's growth markets, and its cost efficiency and sustainability platform are widely recognized as industry best practice. I am very pleased that Rohit Aggarwal has accepted the lead role in our Textile Effects division. I am confident that, under his direction, the business will prosper and thrive."
About Huntsman:
Huntsman Corporation is a publicly traded global manufacturer and marketer of differentiated chemicals with 2015 revenues of approximately $10 billion. Our chemical products number in the thousands and are sold worldwide to manufacturers serving a broad and diverse range of consumer and industrial end markets. We operate more than 100 manufacturing and R&D facilities in approximately 30 countries and employ approximately 15,000 associates within our 5 distinct business divisions. For more information about Huntsman, please visit the company's website at www.huntsman.com.
Social Media:
Twitter: www.twitter.com/Huntsman_Corp
Facebook: www.facebook.com/huntsmancorp
LinkedIn: www.linkedin.com/company/huntsman
Forward-Looking Statements:
Statements in this release that are not historical are forward-looking statements. These statements are based on management's current beliefs and expectations. The forward-looking statements in this release are subject to uncertainty and changes in circumstances and involve risks and uncertainties that may affect the company's operations, markets, products, services, prices and other factors as discussed in the Huntsman companies' filings with the U.S. Securities and Exchange Commission. Significant risks and uncertainties may relate to, but are not limited to, financial, economic, competitive, environmental, political, legal, regulatory and technological factors. The company assumes no obligation to provide revisions to any forward-looking statements should circumstances change, except as otherwise required by applicable laws.
SOURCE Huntsman Corporation
Article Date
6/2/2016Huntsman Announces Second Quarter Dividend and Upcoming Conferences
Source: PR Newswire
Orignial Article: http://www.prnewswire.com...
THE WOODLANDS, Texas, May 9, 2016 /PRNewswire/ -- Huntsman Corporation (NYSE: HUN) announced today that the company's board of directors has declared a $0.125 per share cash dividend on its common stock.
The dividend is payable on June 30, 2016 to stockholders of record as of June 15, 2016.
During the second quarter a member of management will present at the following conferences:
A webcast of the presentations, where applicable, along with accompanying materials will be available at ir.huntsman.com.
About Huntsman:
Huntsman Corporation is a publicly traded global manufacturer and marketer of differentiated chemicals with 2015 revenues of more than $10 billion. Our chemical products number in the thousands and are sold worldwide to manufacturers serving a broad and diverse range of consumer and industrial end markets. We operate more than 100 manufacturing and R&D facilities in approximately 30 countries and employ approximately 15,000 associates within our 5 distinct business divisions. For more information about Huntsman, please visit the company's website at www.huntsman.com.
Social Media:
Twitter: twitter.com/Huntsman_Corp
Facebook: www.facebook.com/huntsmancorp
LinkedIn: www.linkedin.com/company/huntsman
Forward-Looking Statements:
Statements in this release that are not historical are forward-looking statements. These statements are based on management's current beliefs and expectations. The forward-looking statements in this release are subject to uncertainty and changes in circumstances and involve risks and uncertainties that may affect the company's operations, markets, products, services, prices and other factors as discussed in the Huntsman companies' filings with the U.S. Securities and Exchange Commission. Significant risks and uncertainties may relate to, but are not limited to, financial, economic, competitive, environmental, political, legal, regulatory and technological factors. The company assumes no obligation to provide revisions to any forward-looking statements should circumstances change, except as otherwise required by applicable laws.
SOURCE Huntsman Corporation
Article Date
5/9/20164/28/2016 - Huntsman Reports First Quarter Results; Reports Strong Adjusted EBITDA Improvement Compared to Prior Quarter
Huntsman Reports First Quarter Results; Reports Strong Adjusted EBITDA Improvement Compared to Prior Quarter
Source: PR Newswire
THE WOODLANDS, Texas, April 28, 2016 /PRNewswire/ --
First Quarter 2016 Highlights
|
Three months ended | ||||||
|
March 31, |
December 31, | |||||
|
In millions, except per share amounts, unaudited |
2016 |
2015 |
2015 | |||
|
Revenues |
$2,355 |
$2,589 |
$ 2,332 | |||
|
Net income attributable to Huntsman Corporation |
$ 56 |
$ 5 |
$ 4 | |||
|
Adjusted net income(1) |
$ 88 |
$ 98 |
$ 124 | |||
|
Diluted income per share |
$ 0.24 |
$ 0.02 |
$ 0.02 | |||
|
Adjusted diluted income per share(1) |
$ 0.37 |
$ 0.40 |
$ 0.51 | |||
|
EBITDA(1) |
$ 232 |
$ 159 |
$ 111 | |||
|
Adjusted EBITDA(1) |
$ 274 |
$ 285 |
$ 240 | |||
|
See end of press release for footnote explanations |
Huntsman Corporation (NYSE: HUN) today reported first quarter 2016 results with revenues of $2,355 million and adjusted EBITDA of $274 million.
Peter R. Huntsman, our President and CEO, commented:
"I am pleased with the improvements that we are seeing in our business. We are intensely focused on the three priorities outlined at our recent Investor Day.
Our first priority is growing margins and earnings in our core downstream differentiated businesses. To this end, during the first quarter our total company adjusted EBITDA improved to $274 million from $240 million in the previous quarter.
Our second priority is generating more than $350 million of free cash flow in 2016. Our first quarter results put us well on track to achieving this objective.
Our third priority is the separation of our TiO2 business. We continue to explore a spin to our shareholders as well as other strategic options. As margins improve in our pigments business and we see the full effects of our restructuring efforts, I am encouraged that improving conditions will enable us to achieve this separation.
Our successful first quarter results position us well to accomplish these objectives to increase shareholder value."
Segment Analysis for 1Q16 Compared to 1Q15
Polyurethanes
The decrease in revenues in our Polyurethanes division for the three months ended March 31, 2016 compared to the same period in 2015 was primarily due to lower average selling prices. MDI average selling prices decreased in response to lower raw material costs and the foreign currency exchange impact of a stronger U.S. dollar primarily against the euro. MTBE average selling prices decreased in-line with lower pricing for high octane gasoline. PO/MTBE sales volumes increased due to the impact of the prior year planned maintenance outage. MDI sales volumes increased due to higher demand in the Americas and European regions. The increase in adjusted EBITDA was primarily due to the impact of the prior year planned PO/MTBE maintenance outage, estimated at $60 million, and higher MDI volumes, partially offset by lower MTBE margins and the foreign currency exchange impact of a stronger U.S. dollar primarily against the euro.
Performance Products
The decrease in revenues in our Performance Products division for the three months ended March 31, 2016 compared to the same period in 2015 was primarily due to lower average selling prices, partially offset by higher sales volumes. Average selling prices decreased primarily in response to lower raw material costs and the foreign currency exchange impact of a stronger U.S. dollar primarily against the euro. Sales volumes increased primarily due to higher sales volumes of ethylene oxide intermediates, partially offset by lower sales volumes for amines and maleic anhydride. The decrease in adjusted EBITDA was primarily due to lower sales volumes for amines and maleic anhydride and lower contribution margins for ethylene and maleic anhydride.
Advanced Materials
The decrease in revenues in our Advanced Materials division for the three months ended March 31, 2016 compared to the same period in 2015 was due to lower sales volumes and lower average selling prices. Sales volumes decreased in the Americas region, primarily due to competitive pressure, partially offset by strong volume growth in our European and Asia Pacific regions. Average selling prices decreased in our European and Asia Pacific regions as a result of competitive pricing pressure and the foreign currency exchange impact of a stronger U.S. dollar primarily against the euro. The increase in adjusted EBITDA was primarily due to higher contribution margins from lower raw material costs.
Textile Effects
The decrease in revenues in our Textile Effects division for the three months ended March 31, 2016 compared to the same period in 2015 was due to lower average selling prices and lower sales volumes. Average selling prices decreased primarily due to the foreign currency exchange impact of a stronger U.S. dollar primarily against the euro. Sales volumes decreased primarily due to the de-selection of lower value business and destocking within the dyes supply chain. The increase in adjusted EBITDA was primarily due to higher contribution margins from lower raw material costs and lower selling, general and administrative expenses.
Pigments and Additives
The decrease in revenues in our Pigments and Additives division for the three months ended March 31, 2016 compared to the same period in 2015 was due to lower average selling prices, partially offset by higher sales volumes. Average selling prices decreased primarily as a result of competitive pressure and the foreign currency exchange impact of a stronger U.S. dollar primarily against the euro. Sales volumes increased primarily due to increased end use demand. The decrease in adjusted EBITDA was primarily due to lower contribution margins for titanium dioxide.
Corporate, LIFO and Other
Adjusted EBITDA from Corporate, LIFO and Other decreased by $5 million to a loss of $42 million for the three months ended March 31, 2016 compared to a loss of $37 million for the same period in 2015. The decrease in adjusted EBITDA was primarily the result of a decrease in LIFO inventory valuation income, partially offset by a decrease in loss from benzene sales.
Liquidity, Capital Resources and Outstanding Debt
As of March 31, 2016, we had $974 million of combined cash and unused borrowing capacity compared to $1,023 million on December 31, 2015.
On September 29, 2015, our Board of Directors authorized the repurchase of up to $150 million in shares of our common stock. On October 27, 2015 we entered into and funded an accelerated share repurchase agreement to repurchase $100 million of our common stock. The accelerated share repurchase was completed in January 2016 with 8.6 million shares repurchased.
On April 1, 2016, we entered into a new $550 million 2016 Term Loan B due 2023. Proceeds from the new term loan were used to repay in full our term loan B due 2017 and remaining term loan C due 2016. We also extended the maturity of our revolving credit facility to 2021 and increased the amount to $650 million.
Total capital expenditures for the period ended March 31, 2016 were $99 million. We expect to spend approximately $450 million annually on capital expenditures in 2016 and 2017.
Income Taxes
During the three months ended March 31, 2016, we recorded an income tax expense of $27 million. During the same period we paid $5 million in cash for income taxes.
We expect our 2016 and long term adjusted effective tax rate to be approximately 30%.
Earnings Conference Call Information
We will hold a conference call to discuss our first quarter 2016 financial results on Thursday, April 28, 2016 at 10:00 a.m. ET.
|
Call-in numbers for the conference call: | |
|
U.S. participants |
(888) 679 - 8035 |
|
International participants |
(617) 213 - 4848 |
|
Passcode |
503 030 93# |
In order to facilitate the registration process, you may use the following link to pre-register for the conference call. Callers who pre-register will be given a unique PIN to gain immediate access to the call and bypass the live operator. You may pre-register at any time, including up to and after the call start time. To pre-register, please go to: https://www.theconferencingservice.com/prereg/key.process?key=P84M7KQQF
Webcast Information
The conference call will be available via webcast and can be accessed from the company's website at ir.huntsman.com.
Replay Information
The conference call will be available for replay beginning April 28, 2016 and ending May 5, 2016.
|
Call-in numbers for the replay: | |
|
U.S. participants |
(888) 286 - 8010 |
|
International participants |
(617) 801 - 6888 |
|
Replay code |
29385180 |
|
Table 1 – Results of Operations | ||||
|
Three months ended | ||||
|
March 31, | ||||
|
In millions, except per share amounts, unaudited |
2016 |
2015 | ||
|
Revenues |
$2,355 |
$2,589 | ||
|
Cost of goods sold |
1,939 |
2,139 | ||
|
Gross profit |
416 |
450 | ||
|
Operating expenses |
265 |
280 | ||
|
Restructuring, impairment and plant closing costs |
13 |
93 | ||
|
Operating income |
138 |
77 | ||
|
Interest expense |
(50) |
(56) | ||
|
Equity in income of investment in unconsolidated affiliates |
1 |
2 | ||
|
Loss on early extinguishment of debt |
- |
(3) | ||
|
Other income (loss) |
1 |
(1) | ||
|
Income before income taxes |
90 |
19 | ||
|
Income tax expense |
(27) |
(2) | ||
|
Income from continuing operations |
63 |
17 | ||
|
Loss from discontinued operations, net of tax(2) |
(1) |
(2) | ||
|
Net income |
62 |
15 | ||
|
Net income attributable to noncontrolling interests, net of tax |
(6) |
(10) | ||
|
Net income attributable to Huntsman Corporation |
$ 56 |
$ 5 | ||
|
Adjusted EBITDA(1) |
$ 274 |
$ 285 | ||
|
Adjusted net income(1) |
$ 88 |
$ 98 | ||
|
Basic income per share |
$ 0.24 |
$ 0.02 | ||
|
Diluted income per share |
$ 0.24 |
$ 0.02 | ||
|
Adjusted diluted income per share(1) |
$ 0.37 |
$ 0.40 | ||
|
Common share information: |
||||
|
Basic shares outstanding |
236 |
244 | ||
|
Diluted shares |
238 |
247 | ||
|
Diluted shares for adjusted diluted income per share |
238 |
247 | ||
|
See end of press release for footnote explanations |
|
Table 2 – Results of Operations by Segment | ||||||
|
Three months ended |
||||||
|
March 31, |
Better / | |||||
|
In millions, unaudited |
2016 |
2015 |
(Worse) | |||
|
Segment Revenues: |
||||||
|
Polyurethanes |
$ 836 |
$ 890 |
(6)% | |||
|
Performance Products |
536 |
656 |
(18)% | |||
|
Advanced Materials |
266 |
290 |
(8)% | |||
|
Textile Effects |
185 |
206 |
(10)% | |||
|
Pigments & Additives |
540 |
572 |
(6)% | |||
|
Corporate and eliminations |
(8) |
(25) |
n/m | |||
|
Total |
$2,355 |
$2,589 |
(9)% | |||
|
Segment Adjusted EBITDA(1): |
||||||
|
Polyurethanes |
$ 131 |
$ 105 |
25% | |||
|
Performance Products |
92 |
121 |
(24)% | |||
|
Advanced Materials |
60 |
58 |
3% | |||
|
Textile Effects |
18 |
17 |
6% | |||
|
Pigments & Additives |
15 |
21 |
(29)% | |||
|
Corporate, LIFO and other |
(42) |
(37) |
(14)% | |||
|
Total |
$ 274 |
$ 285 |
(4)% | |||
|
n/m = not meaningful | ||||||
|
See end of press release for footnote explanations |
|
Table 3 – Factors Impacting Sales Revenues | ||||||||||
|
Three months ended | ||||||||||
|
March 31, 2016 vs. 2015 | ||||||||||
|
Average Selling Price(a) |
||||||||||
|
Local |
Exchange |
Sales Mix |
Sales |
|||||||
|
Unaudited |
Currency |
Rate |
& Other |
Volume(b) |
Total | |||||
|
Polyurethanes |
(19)% |
(2)% |
2% |
13% |
(6)% | |||||
|
Performance Products |
(13)% |
(2)% |
(10)% |
7% |
(18)% | |||||
|
Advanced Materials |
(3)% |
(5)% |
2% |
(2)% |
(8)% | |||||
|
Textile Effects |
(2)% |
(5)% |
(1)% |
(2)% |
(10)% | |||||
|
Pigments & Additives |
(11)% |
(3)% |
2% |
6% |
(6)% | |||||
|
Total Company |
(13)% |
(3)% |
(2)% |
9% |
(9)% | |||||
|
Pro forma |
||||||||||
|
Three months ended |
||||||||||
|
March 31, 2016 vs. 2015 |
||||||||||
|
Average |
||||||||||
|
Selling |
Sales Mix |
Sales |
||||||||
|
Unaudited, pro forma |
Price(a) |
& Other |
Volume(b) |
Total |
||||||
|
Polyurethanes |
(21)% |
2% |
3% |
(16)% |
(c) |
|||||
|
Performance Products |
(15)% |
(10)% |
7% |
(18)% |
||||||
|
Advanced Materials |
(8)% |
2% |
(2)% |
(8)% |
||||||
|
Textile Effects |
(7)% |
(1)% |
(2)% |
(10)% |
||||||
|
Pigments & Additives |
(14)% |
2% |
6% |
(6)% |
||||||
|
Total Company |
(16)% |
(2)% |
6% |
(12)% |
(c) |
|||||
|
(a) Excludes sales from tolling arrangements, by-products and raw materials. | ||||||||||
|
(b) Excludes sales from by-products and raw materials. | ||||||||||
|
(c) Excludes volume impact from planned maintenance at our PO/MTBE facility in 1H15. |
|
Table 4 – Reconciliation of U.S. GAAP to Non-GAAP Measures | ||||||||||||||||
|
Income Tax |
Net Income |
Diluted Income | ||||||||||||||
|
EBITDA |
Expense |
Attrib. to HUN Corp. |
Per Share | |||||||||||||
|
Three months ended |
Three months ended |
Three months ended |
Three months ended | |||||||||||||
|
March 31, |
March 31, |
March 31, |
March 31, | |||||||||||||
|
In millions, except per share amounts, unaudited |
2016 |
2015 |
2016 |
2015 |
2016 |
2015 |
2016 |
2015 | ||||||||
|
GAAP(1) |
$ 232 |
$ 159 |
$ (27) |
$ (2) |
$ 56 |
$ 5 |
$ 0.24 |
$ 0.02 | ||||||||
|
Adjustments: |
||||||||||||||||
|
Acquisition and integration expenses, purchase accounting adjustments |
9 |
9 |
(3) |
(2) |
6 |
7 |
0.03 |
0.03 | ||||||||
|
Loss from discontinued operations, net of tax(2) |
2 |
1 |
N/A |
N/A |
1 |
2 |
- |
0.01 | ||||||||
|
Loss on early extinguishment of debt |
- |
3 |
- |
(1) |
- |
2 |
- |
0.01 | ||||||||
|
Certain legal settlements and related expenses |
1 |
1 |
- |
- |
1 |
1 |
- |
- | ||||||||
|
Net plant incident remediation costs |
1 |
- |
- |
- |
1 |
- |
- |
- | ||||||||
|
Amortization of pension and postretirement actuarial losses |
16 |
18 |
(3) |
(5) |
13 |
13 |
0.05 |
0.05 | ||||||||
|
Restructuring, impairment, plant closing and transition costs |
13 |
94 |
(3) |
(26) |
10 |
68 |
0.04 |
0.28 | ||||||||
|
Adjusted(1) |
$ 274 |
$ 285 |
$ (36) |
$ (36) |
$ 88 |
$ 98 |
$ 0.37 |
$ 0.40 | ||||||||
|
Adjusted income tax expense |
36 |
36 |
||||||||||||||
|
Net income attributable to noncontrolling interests, net of tax |
6 |
10 |
||||||||||||||
|
Adjusted pre-tax income(1) |
$ 130 |
$ 144 |
||||||||||||||
|
Adjusted effective tax rate |
28% |
25% |
||||||||||||||
|
Income Tax |
Net Income |
Diluted Income | ||||||||||||||
|
EBITDA |
(Expense) Benefit |
Attrib. to HUN Corp. |
Per Share | |||||||||||||
|
Three months ended |
Three months ended |
Three months ended |
Three months ended | |||||||||||||
|
December 31, |
December 31, |
December 31, |
December 31, | |||||||||||||
|
In millions, except per share amounts, unaudited |
2015 |
2015 |
2015 |
2015 | ||||||||||||
|
GAAP(1) |
$ 111 |
$ 39 |
$ 4 |
$ 0.02 |
||||||||||||
|
Adjustments: |
||||||||||||||||
|
Acquisition and integration expenses, purchase accounting adjustments |
22 |
(6) |
16 |
0.07 |
||||||||||||
|
Loss from discontinued operations, net of tax(2) |
3 |
N/A |
- |
- |
||||||||||||
|
Loss on disposition of businesses/assets |
1 |
- |
1 |
- |
||||||||||||
|
Certain legal settlements and related expenses |
1 |
- |
1 |
- |
||||||||||||
|
Net plant incident remediation costs |
1 |
- |
1 |
- |
||||||||||||
|
Amortization of pension and postretirement actuarial losses |
18 |
(3) |
15 |
0.06 |
||||||||||||
|
Restructuring, impairment, plant closing and transition costs |
83 |
3 |
86 |
0.36 |
||||||||||||
|
Adjusted(1) |
$ 240 |
$ 33 |
$ 124 |
$ 0.51 |
||||||||||||
|
Adjusted income tax benefit |
(33) |
|||||||||||||||
|
Net income attributable to noncontrolling interests, net of tax |
5 |
|||||||||||||||
|
Adjusted pre-tax income(1) |
$ 96 |
|||||||||||||||
|
Adjusted effective tax rate |
-34% |
|||||||||||||||
|
See end of press release for footnote explanations |
|
Table 5 – Reconciliation of Net Income to EBITDA | ||||||
|
Three months ended | ||||||
|
March 31, |
December 31, | |||||
|
In millions, unaudited |
2016 |
2015 |
2015 | |||
|
Net income attributable to Huntsman Corporation |
$ 56 |
$ 5 |
$ 4 | |||
|
Interest expense |
50 |
56 |
47 | |||
|
Income tax expense (benefit) from continuing operations |
27 |
2 |
(39) | |||
|
Income tax (benefit) expense from discontinued operations(3) |
(1) |
1 |
(3) | |||
|
Depreciation and amortization |
100 |
95 |
102 | |||
|
EBITDA(1) |
$232 |
$159 |
$ 111 | |||
|
See end of press release for footnote explanations |
|
Table 6 – Selected Balance Sheet Items | ||||
|
March 31, |
December 31, | |||
|
In millions |
2016 |
2015 | ||
|
(unaudited) |
||||
|
Cash |
$ 218 |
$ 269 | ||
|
Accounts and notes receivable, net |
1,572 |
1,449 | ||
|
Inventories |
1,689 |
1,692 | ||
|
Other current assets |
351 |
424 | ||
|
Property, plant and equipment, net |
4,437 |
4,446 | ||
|
Other assets |
1,573 |
1,540 | ||
|
Total assets |
$ 9,840 |
$ 9,820 | ||
|
Accounts payable |
$ 1,027 |
$ 1,061 | ||
|
Other current liabilities |
652 |
686 | ||
|
Current portion of debt |
103 |
170 | ||
|
Long-term debt |
4,724 |
4,625 | ||
|
Other liabilities |
1,649 |
1,649 | ||
|
Total equity |
1,685 |
1,629 | ||
|
Total liabilities and equity |
$ 9,840 |
$ 9,820 | ||
|
Table 7 – Outstanding Debt | ||||
|
March 31, |
December 31, | |||
|
In millions |
2016 |
2015 | ||
|
(unaudited) |
||||
|
Debt: |
||||
|
Senior credit facilities |
$ 2,441 |
$ 2,454 | ||
|
Accounts receivable programs |
263 |
215 | ||
|
Senior notes |
1,872 |
1,850 | ||
|
Variable interest entities |
140 |
151 | ||
|
Other debt |
111 |
125 | ||
|
Total debt - excluding affiliates |
4,827 |
4,795 | ||
|
Total cash |
218 |
269 | ||
|
Net debt- excluding affiliates |
$ 4,609 |
$ 4,526 | ||
|
Table 8 – Summarized Statement of Cash Flows | ||||
|
Three months ended | ||||
|
March 31, | ||||
|
In millions, unaudited |
2016 |
2015 | ||
|
Total cash at beginning of period(a) |
$ 269 |
$ 870 | ||
|
Net cash provided by operating activities |
88 |
34 | ||
|
Net cash used in investing activities |
(101) |
(81) | ||
|
Net cash (used in) provided by financing activities |
(38) |
189 | ||
|
Effect of exchange rate changes on cash |
2 |
(8) | ||
|
Change in restricted cash |
(2) |
(1) | ||
|
- |
||||
|
Total cash at end of period(a) |
$ 218 |
$ 1,003 | ||
|
Supplemental cash flow information: |
||||
|
Cash paid for interest |
$ (35) |
$ (48) | ||
|
Cash paid for income taxes |
(5) |
(11) | ||
|
Cash paid for capital expenditures |
(99) |
(149) | ||
|
Depreciation and amortization |
100 |
95 | ||
|
Changes in primary working capital: |
||||
|
Accounts and notes receivable |
$(105) |
$ (49) | ||
|
Inventories |
22 |
54 | ||
|
Accounts payable |
(31) |
(2) | ||
|
Total cash provided by primary working capital |
$(114) |
$ 3 | ||
|
Three months ended | ||||
|
March 31, | ||||
|
2016 |
2015 | |||
|
Free cashflow: |
||||
|
Adjusted EBITDA |
$ 274 |
$ 285 | ||
|
Capital expenditures |
(99) |
(149) | ||
|
Interest |
(35) |
(48) | ||
|
Income taxes |
(5) |
(11) | ||
|
Primary working capital change |
(114) |
3 | ||
|
Restructuring |
(20) |
(27) | ||
|
Pensions |
(20) |
(33) | ||
|
Maintenance & other |
6 |
(67) | ||
|
Total free cash flow |
$ (13) |
$ (47) | ||
|
(a) Includes restricted cash. |
||||
|
Footnotes | |
|
(1) |
We use EBITDA and adjusted EBITDA to measure the operating performance of our business. We provide adjusted net income because we feel it provides meaningful insight for the investment community into the performance of our business. We believe that net income (loss) attributable to Huntsman Corporation is the performance measure calculated and presented in accordance with generally accepted accounting principles in the U.S. ("GAAP") that is most directly comparable to EBITDA, adjusted EBITDA and adjusted net income. Additional information with respect to our use of each of these financial measures follows: |
|
EBITDA is defined as net income (loss) attributable to Huntsman Corporation before interest, income taxes, and depreciation and amortization. | |
|
EBITDA, adjusted EBITDA and adjusted net income (loss), as used herein, are not necessarily comparable to other similarly titled measures of other companies. The reconciliation of EBITDA to net income (loss) attributable to Huntsman Corporation is set forth in Table 7 above. | |
|
Adjusted EBITDA is computed by eliminating the following from EBITDA: (a) acquisition and integration expenses, purchase accounting adjustments; (b) EBITDA from discontinued operations; (c) loss (gain) on disposition of businesses/assets; (d) loss on early extinguishment of debt; (e) certain legal settlements and related expenses; (f) net plant incident remediation costs; (g) amortization of pension and postretirement actuarial losses (gains); and (h) restructuring, impairment, plant closing and transition costs (credits). The reconciliation of adjusted EBITDA to EBITDA is set forth in Table 4 above. | |
|
Adjusted net income (loss) is computed by eliminating the after tax impact of the following items from net income (loss) attributable to Huntsman Corporation: (a) acquisition and integration expenses, purchase accounting adjustments; (b) impact of certain foreign tax credit elections; (c) loss (income) from discontinued operations; (d) discount amortization on settlement financing associated with the terminated merger; (d) loss (gain) on disposition of businesses/assets; (e) loss on early extinguishment of debt; (f) certain legal settlements and related expenses; (g) net plant incident remediation costs; (h) amortization of pension and postretirement actuarial losses (gains); and (i) restructuring, impairment, plant closing and transition costs (credits). We do not adjust for changes in tax valuation allowances because we do not believe it provides more meaningful information than is provided under GAAP. The reconciliation of adjusted net income (loss) to net income (loss) attributable to Huntsman Corporation common stockholders is set forth in Table 4 above. | |
|
(2) |
During the first quarter 2010 we closed our Australian styrenics operations; results from associated business are treated as discontinued operations. |
About Huntsman:
Huntsman Corporation is a publicly traded global manufacturer and marketer of differentiated chemicals with 2015 revenues of approximately $10 billion. Our chemical products number in the thousands and are sold worldwide to manufacturers serving a broad and diverse range of consumer and industrial end markets. We operate more than 100 manufacturing and R&D facilities in approximately 30 countries and employ approximately 15,000 associates within our 5 distinct business divisions. For more information about Huntsman, please visit the company's website at www.huntsman.com.
Social Media:
Twitter: twitter.com/Huntsman_Corp
Facebook: www.facebook.com/huntsmancorp
LinkedIn: www.linkedin.com/company/huntsman
Forward-Looking Statements:
Statements in this release that are not historical are forward-looking statements. These statements are based on management's current beliefs and expectations. The forward-looking statements in this release are subject to uncertainty and changes in circumstances and involve risks and uncertainties that may affect the company's operations, markets, products, services, prices and other factors as discussed in the Huntsman companies' filings with the U.S. Securities and Exchange Commission. Significant risks and uncertainties may relate to, but are not limited to, financial, economic, competitive, environmental, political, legal, regulatory and technological factors. The company assumes no obligation to provide revisions to any forward-looking statements should circumstances change, except as otherwise required by applicable laws.
SOURCE Huntsman Corporation
Article Date
4/28/2016Huntsman to Discuss First Quarter 2016 Results on April 28, 2016
Source: PR Newswire
Orignial Article: http://www.prnewswire.com...
THE WOODLANDS, Texas, April 15, 2016 /PRNewswire/ -- Huntsman Corporation (NYSE: HUN) will hold a conference call to discuss its first quarter 2016 financial results on Thursday, April 28, 2016 at 10:00 a.m. ET. First quarter 2016 results will be released to the public at approximately 6:00 a.m. ET that day via PR Newswire.
|
Call-in numbers for the conference call: | |
|
U.S. participants |
(888) 679 - 8035 |
|
International participants |
(617) 213 - 4848 |
|
Passcode |
503 030 93# |
In order to facilitate the registration process, you may use the following link to pre-register for the conference call. Callers who pre-register will be given a unique PIN to gain immediate access to the call and bypass the live operator. You may pre-register at any time, including up to and after the call start time. To pre-register, please go to: https://www.theconferencingservice.com/prereg/key.process?key=P84M7KQQF
Webcast Information
The conference call will be available via webcast and can be accessed from the company's website at ir.huntsman.com.
Replay Information
The conference call will be available for replay beginning April 28, 2016 and ending May 5, 2016.
|
Call-in numbers for the replay: | |
|
U.S. participants |
(888) 286 - 8010 |
|
International participants |
(617) 801 - 6888 |
|
Replay code |
29385180 |
About Huntsman:
Huntsman Corporation is a publicly traded global manufacturer and marketer of differentiated chemicals with 2015 revenues of more than $10 billion. Our chemical products number in the thousands and are sold worldwide to manufacturers serving a broad and diverse range of consumer and industrial end markets. We operate more than 100 manufacturing and R&D facilities in approximately 30 countries and employ approximately 15,000 associates within our 5 distinct business divisions. For more information about Huntsman, please visit the company's website at www.huntsman.com.
Social Media:
Twitter: twitter.com/Huntsman_Corp
Facebook: www.facebook.com/huntsmancorp
LinkedIn: www.linkedin.com/company/huntsman
Forward-Looking Statements:
Statements in this release that are not historical are forward-looking statements. These statements are based on management's current beliefs and expectations. The forward-looking statements in this release are subject to uncertainty and changes in circumstances and involve risks and uncertainties that may affect the company's operations, markets, products, services, prices and other factors as discussed in the Huntsman companies' filings with the U.S. Securities and Exchange Commission. Significant risks and uncertainties may relate to, but are not limited to, financial, economic, competitive, environmental, political, legal, regulatory and technological factors. The company assumes no obligation to provide revisions to any forward-looking statements should circumstances change, except as otherwise required by applicable laws.
SOURCE Huntsman Corporation
Article Date
4/15/2016Huntsman Extends Exchange Offer Expiration Date
Source: PR Newswire
Orignial Article: http://www.prnewswire.com...
THE WOODLANDS, Texas, April 6, 2016 /PRNewswire/ -- Huntsman Corporation (NYSE: HUN) today announced that its wholly owned subsidiary, Huntsman International LLC, has extended the expiration date of its offer to exchange (the "Exchange Offer") all of its outstanding 5.125% Senior Notes due 2022 and 4.25% Senior Notes due 2025 (the "Old Notes") for an equal principal amount of 5.125% Senior Notes due 2022 and 4.25% Senior Notes due 2025 that have been registered under the Securities Act of 1933, as amended (the "Securities Act"). The Exchange Offer was originally scheduled to expire at 5:00 p.m., New York City time, on April 6, 2016. The expiration date of the Exchange Offer has been extended until 5:00 p.m., New York City time, on April 8, 2016.
Huntsman has extended the expiration date in order to allow all note holders ample opportunity to tender their Old Notes in connection with the Exchange Offer. Old Notes tendered for exchange may be withdrawn at any time prior to the expiration of the Exchange Offer.
This announcement is not an offer to exchange, or the solicitation of an offer to exchange, with respect to the Old Notes. The Exchange Offer is being made solely by a prospectus dated March 8, 2016 (as may be amended or supplemented), and the Exchange Offer, as extended hereby, remains subject to the terms and conditions stated therein.
About Huntsman:
Huntsman Corporation is a publicly traded global manufacturer and marketer of differentiated chemicals with 2015 revenues of more than $10 billion. Our chemical products number in the thousands and are sold worldwide to manufacturers serving a broad and diverse range of consumer and industrial end markets. We operate more than 100 manufacturing and R&D facilities in approximately 30 countries and employ approximately 15,000 associates within our 5 distinct business divisions. For more information about Huntsman, please visit the company's website at www.huntsman.com.
Social Media:
Twitter: twitter.com/Huntsman_Corp
Facebook: www.facebook.com/huntsmancorp
LinkedIn: www.linkedin.com/company/huntsman
Forward-Looking Statements:
Statements in this release that are not historical are forward-looking statements. These statements are based on management's current beliefs and expectations. The forward-looking statements in this release are subject to uncertainty and changes in circumstances and involve risks and uncertainties that may affect the company's operations, markets, products, services, prices and other factors as discussed in the Huntsman companies' filings with the U.S. Securities and Exchange Commission. Significant risks and uncertainties may relate to, but are not limited to, financial, economic, competitive, environmental, political, legal, regulatory and technological factors. The company assumes no obligation to provide revisions to any forward-looking statements should circumstances change, except as otherwise required by applicable laws.
SOURCE Huntsman Corporation
Article Date
4/7/2016Huntsman Extends Exchange Offer Expiration Date
Source: PR Newswire
THE WOODLANDS, Texas, April 6, 2016 /PRNewswire/ -- Huntsman Corporation (NYSE: HUN) today announced that its wholly owned subsidiary, Huntsman International LLC, has extended the expiration date of its offer to exchange (the "Exchange Offer") all of its outstanding 5.125% Senior Notes due 2022 and 4.25% Senior Notes due 2025 (the "Old Notes") for an equal principal amount of 5.125% Senior Notes due 2022 and 4.25% Senior Notes due 2025 that have been registered under the Securities Act of 1933, as amended (the "Securities Act"). The Exchange Offer was originally scheduled to expire at 5:00 p.m., New York City time, on April 6, 2016. The expiration date of the Exchange Offer has been extended until 5:00 p.m., New York City time, on April 8, 2016.
Huntsman has extended the expiration date in order to allow all note holders ample opportunity to tender their Old Notes in connection with the Exchange Offer. Old Notes tendered for exchange may be withdrawn at any time prior to the expiration of the Exchange Offer.
This announcement is not an offer to exchange, or the solicitation of an offer to exchange, with respect to the Old Notes. The Exchange Offer is being made solely by a prospectus dated March 8, 2016 (as may be amended or supplemented), and the Exchange Offer, as extended hereby, remains subject to the terms and conditions stated therein.
About Huntsman:
Huntsman Corporation is a publicly traded global manufacturer and marketer of differentiated chemicals with 2015 revenues of more than $10 billion. Our chemical products number in the thousands and are sold worldwide to manufacturers serving a broad and diverse range of consumer and industrial end markets. We operate more than 100 manufacturing and R&D facilities in approximately 30 countries and employ approximately 15,000 associates within our 5 distinct business divisions. For more information about Huntsman, please visit the company's website at www.huntsman.com.
Social Media:
Twitter: twitter.com/Huntsman_Corp
Facebook: www.facebook.com/huntsmancorp
LinkedIn: www.linkedin.com/company/huntsman
Forward-Looking Statements:
Statements in this release that are not historical are forward-looking statements. These statements are based on management's current beliefs and expectations. The forward-looking statements in this release are subject to uncertainty and changes in circumstances and involve risks and uncertainties that may affect the company's operations, markets, products, services, prices and other factors as discussed in the Huntsman companies' filings with the U.S. Securities and Exchange Commission. Significant risks and uncertainties may relate to, but are not limited to, financial, economic, competitive, environmental, political, legal, regulatory and technological factors. The company assumes no obligation to provide revisions to any forward-looking statements should circumstances change, except as otherwise required by applicable laws.
SOURCE Huntsman Corporation
Article Date
4/7/2016Huntsman Completes Refinancing Of Term Loans; Extends Maturity Of Term Loans And Revolving Credit Facility
Source: PR Newswire
Orignial Article: http://www.prnewswire.com...
THE WOODLANDS, Texas, April 4, 2016 /PRNewswire/ -- Huntsman Corporation (NYSE: HUN) today announced that its wholly owned subsidiary, Huntsman International LLC, entered into a new $550 million term loan B due 2023. Proceeds from the new term loan were used to repay in full its term loan B due 2017 and remaining term loan C due 2016.
The interest rate for the new term loan B is LIBOR plus 3.50% with a LIBOR floor of 0.75%. Based upon the company's current LIBOR forecast, it expects interest expense of approximately $215 million in total within 2016.
The company also extended its revolving credit facility to 2021 in the increased amount of $650 million.
Kimo Esplin, Executive Vice President and CFO, commented: "This refinancing extends our debt maturities for several years providing greater flexibility for the deployment of cash allocation. Our free cash flow generation will improve by $350 million in 2016 compared to the prior year; we expect additional improvements in subsequent years. We intend to reduce our debt by more than $500 million over the next three years with our increased free cash flow generation."
About Huntsman:
Huntsman Corporation is a publicly traded global manufacturer and marketer of differentiated chemicals with 2015 revenues of more than $10 billion. Our chemical products number in the thousands and are sold worldwide to manufacturers serving a broad and diverse range of consumer and industrial end markets. We operate more than 100 manufacturing and R&D facilities in approximately 30 countries and employ approximately 15,000 associates within our 5 distinct business divisions. For more information about Huntsman, please visit the company's website at www.huntsman.com.
Social Media:
Twitter: twitter.com/Huntsman_Corp
Facebook: www.facebook.com/huntsmancorp
LinkedIn: www.linkedin.com/company/huntsman
Forward-Looking Statements:
Statements in this release that are not historical are forward-looking statements. These statements are based on management's current beliefs and expectations. The forward-looking statements in this release are subject to uncertainty and changes in circumstances and involve risks and uncertainties that may affect the company's operations, markets, products, services, prices and other factors as discussed in the Huntsman companies' filings with the U.S. Securities and Exchange Commission. Significant risks and uncertainties may relate to, but are not limited to, financial, economic, competitive, environmental, political, legal, regulatory and technological factors. The company assumes no obligation to provide revisions to any forward-looking statements should circumstances change, except as otherwise required by applicable laws.
SOURCE Huntsman Corporation
Article Date
4/4/2016Huntsman Announces Global Titanium Dioxide Price Increases
Source: PR Newswire
Orignial Article: http://www.prnewswire.com...
THE WOODLANDS, Texas, April 4, 2016 /PRNewswire/ -- Huntsman Corporation (NYSE: HUN) today announced global price increases for all its titanium dioxide pigments. The following increases are effective April 1, 2016 or as contracts allow.
Europe: €170 (Euros) per tonne or $180 (USD) per tonne in dollar-based markets
Asia-Pacific, Africa, Latin America and Middle East: $180 (USD) per tonne
North America: $0.08 per pound (USD) (as previously announced March 30, 2016)
About Huntsman:
Huntsman Corporation is a publicly traded global manufacturer and marketer of differentiated chemicals with 2015 revenues of more than $10 billion. Our chemical products number in the thousands and are sold worldwide to manufacturers serving a broad and diverse range of consumer and industrial end markets. We operate more than 100 manufacturing and R&D facilities in approximately 30 countries and employ approximately 15,000 associates within our 5 distinct business divisions. For more information about Huntsman, please visit the company's website at www.huntsman.com.
Social Media:
Twitter: twitter.com/Huntsman_Corp
Facebook: www.facebook.com/huntsmancorp
LinkedIn: www.linkedin.com/company/huntsman
Forward-Looking Statements:
Statements in this release that are not historical are forward-looking statements. These statements are based on management's current beliefs and expectations. The forward-looking statements in this release are subject to uncertainty and changes in circumstances and involve risks and uncertainties that may affect the company's operations, markets, products, services, prices and other factors as discussed in the Huntsman companies' filings with the U.S. Securities and Exchange Commission. Significant risks and uncertainties may relate to, but are not limited to, financial, economic, competitive, environmental, political, legal, regulatory and technological factors. The company assumes no obligation to provide revisions to any forward-looking statements should circumstances change, except as otherwise required by applicable laws.
SOURCE Huntsman Corporation
Article Date
4/4/20163/17/2016 - Huntsman To Refinance Term Loans
Huntsman To Refinance Term Loans
Source: PR Newswire
Orignial Article: http://www.prnewswire.com...
THE WOODLANDS, Texas, March 17, 2016 /PRNewswire/ -- Huntsman Corporation (NYSE: HUN) today announced that its wholly owned subsidiary, Huntsman International LLC, intends to refinance its remaining extended term loan B due 2017 and remaining term loan C due 2016 with a new term loan of approximately $550 million due 2023, subject to market and other conditions.
The refinancing, if completed, will extend the Company's upcoming debt maturities on favorable terms given the recent improvements in the financing markets.
This press release is neither an offer to sell nor a solicitation of an offer to buy any securities and shall not constitute an offer to sell or a solicitation of an offer to buy, or a sale of, any securities in any jurisdiction in which such offer, solicitation or sale is unlawful.
About Huntsman:
Huntsman Corporation is a publicly traded global manufacturer and marketer of differentiated chemicals with 2015 revenues of more than $10 billion. Our chemical products number in the thousands and are sold worldwide to manufacturers serving a broad and diverse range of consumer and industrial end markets. We operate more than 100 manufacturing and R&D facilities in approximately 30 countries and employ approximately 15,000 associates within our 5 distinct business divisions. For more information about Huntsman, please visit the company's website at www.huntsman.com.
Social Media:
Twitter: twitter.com/Huntsman_Corp
Facebook: www.facebook.com/huntsmancorp
LinkedIn: www.linkedin.com/company/huntsman
Forward-Looking Statements:
Statements in this release that are not historical are forward-looking statements. These statements are based on management's current beliefs and expectations. The forward-looking statements in this release are subject to uncertainty and changes in circumstances and involve risks and uncertainties that may affect the company's operations, markets, products, services, prices and other factors as discussed in the Huntsman companies' filings with the U.S. Securities and Exchange Commission. Significant risks and uncertainties may relate to, but are not limited to, financial, economic, competitive, environmental, political, legal, regulatory and technological factors. The company assumes no obligation to provide revisions to any forward-looking statements should circumstances change, except as otherwise required by applicable laws.
SOURCE Huntsman Corporation
Article Date
3/17/2016Huntsman Names New President of Advanced Materials Division
Source: PR Newswire
Orignial Article: http://www.prnewswire.com...
THE WOODLANDS, Texas, March 2, 2016 /PRNewswire/ -- Huntsman Corporation (NYSE: HUN) today announced that Scott Wright will succeed James Huntsman as President of Huntsman's Advanced Materials division, effective June 1.
Most recently Vice President-Europe for Huntsman's Advanced Materials division, a position to which he was appointed in 2011, Wright joined Huntsman in 1999 with the acquisition of ICI. He spent 15 years in Huntsman's Pigments division in a number of roles of increasing responsibility – including product development, business planning, marketing and sales – before moving into Advanced Materials in 2011.
After 23 years with Huntsman Corporation, James Huntsman has elected to step down as President of Advanced Materials division to pursue personal interests. He joined the corporation in 1990 and held a series of increasingly responsible manufacturing and commercial roles, including Vice President, US Base Chemicals. In 2009, he joined the Advanced Materials division as Vice President-Americas Region, and was named division President in 2011.
Huntsman President and CEO Peter Huntsman said: "I am very pleased that Scott Wright has accepted the lead role in our Advanced Materials division. I am confident he will lead that business to new levels of success."
About Huntsman:
Huntsman Corporation is a publicly traded global manufacturer and marketer of differentiated chemicals with 2015 revenues of approximately $10 billion. Our chemical products number in the thousands and are sold worldwide to manufacturers serving a broad and diverse range of consumer and industrial end markets. We operate more than 100 manufacturing and R&D facilities in approximately 30 countries and employ approximately 15,000 associates within our 5 distinct business divisions. For more information about Huntsman, please visit the company's website at www.huntsman.com.
Social Media:
Twitter: www.twitter.com/Huntsman_Corp
Facebook: www.facebook.com/huntsmancorp
LinkedIn: www.linkedin.com/company/huntsman
Forward-Looking Statements:
Statements in this release that are not historical are forward-looking statements. These statements are based on management's current beliefs and expectations. The forward-looking statements in this release are subject to uncertainty and changes in circumstances and involve risks and uncertainties that may affect the company's operations, markets, products, services, prices and other factors as discussed in the Huntsman companies' filings with the U.S. Securities and Exchange Commission. Significant risks and uncertainties may relate to, but are not limited to, financial, economic, competitive, environmental, political, legal, regulatory and technological factors. The company assumes no obligation to provide revisions to any forward-looking statements should circumstances change, except as otherwise required by applicable laws.
SOURCE Huntsman Corporation
Article Date
3/2/2016Huntsman Reports Fourth Quarter And Full Year 2015 Results; 2015 Adjusted EPS Improves To $2.00 From $1.94 In 2014
Source: PR Newswire
THE WOODLANDS, Texas, Feb. 11, 2016 /PRNewswire/ --
Fourth Quarter 2015 Highlights
Full Year 2015 Highlights
|
Three months ended |
Twelve months December 31, | |||||||||
|
December 31, |
September 30, |
|||||||||
|
In millions, except per share amounts, unaudited |
2015 |
2014 |
2015 |
2015 |
2014 | |||||
|
Revenues |
$2,332 |
$2,951 |
$ 2,638 |
$10,299 |
$11,578 | |||||
|
Net income (loss) attributable to Huntsman Corporation |
$ 4 |
$ (38) |
$ 55 |
$ 93 |
$ 323 | |||||
|
Adjusted net income(1) |
$ 124 |
$ 81 |
$ 115 |
$ 492 |
$ 478 | |||||
|
Diluted income (loss) per share |
$ 0.02 |
$ (0.16) |
$ 0.22 |
$ 0.38 |
$ 1.31 | |||||
|
Adjusted diluted income per share(1) |
$ 0.51 |
$ 0.33 |
$ 0.47 |
$ 2.00 |
$ 1.94 | |||||
|
EBITDA(1) |
$ 111 |
$ 141 |
$ 255 |
$ 741 |
$ 1,022 | |||||
|
Adjusted EBITDA(1) |
$ 240 |
$ 292 |
$ 311 |
$ 1,221 |
$ 1,340 | |||||
|
See end of press release for footnote explanations |
||||||||||
Huntsman Corporation (NYSE: HUN) today reported fourth quarter 2015 results with revenues of $2,332 million and adjusted EBITDA of $240 million.
Peter R. Huntsman, our President and CEO, commented:
"During the fourth quarter this year, EBITDA from our cyclical businesses – which include our MTBE, ethylene and TiO2 products – decreased approximately $78 million compared to the prior year. This overshadowed the real strength of our portfolio which is in our downstream differentiated businesses. Excluding approximately $24 million of foreign currency headwind, the EBITDA from our differentiated businesses improved approximately $50 million compared to the prior year or 27%.
"In 2016, primarily as a result of lower priced oil and a lower global economic growth environment, we expect continued EBITDA pressure on our cyclical businesses. Growth from our differentiated businesses will offset cyclical pressure and inflationary costs such that we expect our 2016 EBITDA to be a similar amount to 2015. Importantly however, we expect our free cash flow generation to improve by $350 million in 2016 through lower capital expenditures, restructuring and maintenance. In 2016 we will continue to pursue actively a separation of our TiO2 business through a spinoff to shareholders or other strategic transaction."
Segment Analysis for 4Q15 Compared to 4Q14
Polyurethanes
The decrease in revenues in our Polyurethanes division for the three months ended December 31, 2015 compared to the same period in 2014 was due to lower average selling prices and lower MTBE sales volumes. MDI average selling prices decreased in response to lower raw material costs and the currency exchange impact of a stronger U.S. dollar primarily against the Euro. PO/MTBE average selling prices decreased in-line with lower pricing for high octane gasoline. MDI sales volumes increased due to higher demand as well as competitor outages in the Asian region. The decrease in adjusted EBITDA was primarily due to lower MTBE contribution margins and the foreign currency exchange impact of a stronger U.S. dollar primarily against the Euro partially offset by higher MDI contribution margins.
Performance Products
The decrease in revenues in our Performance Products division for the three months ended December 31, 2015 compared to the same period in 2014 was primarily due to lower average selling prices and lower sales volumes. Average selling prices decreased primarily in response to lower raw material costs and the foreign currency exchange impact of a stronger U.S. dollar primarily against the Euro. Sales volumes decreased primarily due to customer destocking and competitive pressure. The decrease in adjusted EBITDA was primarily due to lower ethylene contribution margins partially offset by higher contribution margins in our amines business.
Advanced Materials
The decrease in revenues in our Advanced Materials division for the three months ended December 31, 2015 compared to the same period in 2014 was due to lower sales volumes and lower average selling prices. Sales volumes decreased primarily due to the de-selection of certain business, customer destocking and competitive pressure. Average selling prices increased on a local currency basis in the Americas primarily due to our focus on higher value markets but this was more than offset by the foreign currency exchange impact of a stronger U.S. dollar primarily against the Euro globally. The increase in adjusted EBITDA was primarily due to higher global contribution margins from lower raw material costs and higher selling prices in the Americas.
Textile Effects
The decrease in revenues in our Textile Effects division for the three months ended December 31, 2015 compared to the same period in 2014 was due to lower average selling prices and lower sales volumes. Average selling prices increased on a local currency basis due to certain price increase initiatives but this was more than offset by the foreign currency exchange impact of a stronger U.S. dollar primarily against the Euro. Sales volumes decreased primarily due to the de-selection of lower value business and challenging market conditions. The increase in adjusted EBITDA was primarily due to higher contribution margins from lower raw material costs and product mix improvements.
Pigments and Additives
The decrease in revenues in our Pigments and Additives division for the three months ended December 31, 2015 compared to the same period in 2014 was due to lower average selling prices and lower sales volumes. Average selling prices decreased primarily as a result of titanium dioxide over supply in the market place and the foreign currency exchange impact of a stronger U.S. dollar primarily against the Euro. Sales volumes decreased primarily as a result of lower end use demand. The decrease in adjusted EBITDA was primarily due to lower contribution margins for titanium dioxide.
Corporate, LIFO and Other
Adjusted EBITDA from Corporate, LIFO and Other increased by $10 million to a loss of $38 million for the three months ended December 31, 2015 compared to a loss of $48 million for the same period in 2014. The increase in adjusted EBITDA was primarily the result of an increase in income from benzene sales of $7 million.
Liquidity, Capital Resources and Outstanding Debt
As of December 31, 2015, we had $1,023 million of combined cash and unused borrowing capacity compared to $1,601 million on December 31, 2014.
On September 29, 2015, our Board of Directors authorized the repurchase of up to $150 million in shares of our common stock. On October 27, 2015 we entered into and funded an accelerated share repurchase agreement to repurchase $100 million of our common stock. The accelerated share repurchase was completed in January 2016 with 8.6 million shares repurchased.
During 2015 we spent $663 million on capital expenditures; we expect to spend approximately $450 million annually on capital expenditures in 2016 and 2017.
Income Taxes
During the three months ended December 31, 2015, we recorded an income tax benefit of $39 million as a result of the combination of effective tax planning, certain unusual tax benefits and the regional mix of income. During the same period we paid $45 million in cash for income taxes.
We expect our 2016 and long term adjusted effective tax rate to be approximately 30%.
Earnings Conference Call Information
We will hold a conference call to discuss our fourth quarter and full year 2015 financial results on Thursday, February 11, 2016 at 9:00 a.m. ET.
Call-in numbers for the conference call:
U.S. participants (888) 713 - 4199
International participants (617) 213 - 4861
Passcode 810 262 68#
In order to facilitate the registration process, you may use the following link to pre-register for the conference call. Callers who pre-register will be given a unique PIN to gain immediate access to the call and bypass the live operator. You may pre-register at any time, including up to and after the call start time. To pre-register, please go to: https://www.theconferencingservice.com/prereg/key.process?key=P8K7QH79L
Webcast Information
The conference call will be available via webcast and can be accessed from the company's website at ir.huntsman.com.
Replay Information
The conference call will be available for replay beginning February 11, 2016 and ending February 18, 2016.
Call-in numbers for the replay:
U.S. participants (888) 286 - 8010
International participants (617) 801 - 6888
Replay code 29385180
|
Table 1 – Results of Operations | ||||||||
|
Three months ended |
Twelve months ended | |||||||
|
December 31, |
December 31, | |||||||
|
In millions, except per share amounts, unaudited |
2015 |
2014 |
2015 |
2014 | ||||
|
Revenues |
$2,332 |
$2,951 |
$10,299 |
$11,578 | ||||
|
Cost of goods sold |
1,956 |
2,502 |
8,451 |
9,659 | ||||
|
Gross profit |
376 |
449 |
1,848 |
1,919 | ||||
|
Operating expenses |
282 |
317 |
1,141 |
1,128 | ||||
|
Restructuring, impairment and plant closing costs |
81 |
67 |
302 |
158 | ||||
|
Operating income |
13 |
65 |
405 |
633 | ||||
|
Interest expense |
(47) |
(57) |
(205) |
(205) | ||||
|
Equity in income of investment in unconsolidated affiliates |
1 |
- |
6 |
6 | ||||
|
Loss on early extinguishment of debt |
- |
(28) |
(31) |
(28) | ||||
|
Other income (loss) |
3 |
(2) |
1 |
(2) | ||||
|
(Loss) income before income taxes |
(30) |
(22) |
176 |
404 | ||||
|
Income tax benefit (expense) |
39 |
(12) |
(46) |
(51) | ||||
|
Income (loss) from continuing operations |
9 |
(34) |
130 |
353 | ||||
|
Loss from discontinued operations, net of tax(3) |
- |
(1) |
(4) |
(8) | ||||
|
Net income (loss) |
9 |
(35) |
126 |
345 | ||||
|
Net income attributable to noncontrolling interests, net of tax |
(5) |
(3) |
(33) |
(22) | ||||
|
Net income (loss) attributable to Huntsman Corporation |
$ 4 |
$ (38) |
$ 93 |
$ 323 | ||||
|
Adjusted EBITDA(1) |
$ 240 |
$ 292 |
$ 1,221 |
$ 1,340 | ||||
|
Adjusted net income(1) |
$ 124 |
$ 81 |
$ 492 |
$ 478 | ||||
|
Basic income (loss) per share |
$ 0.02 |
$ (0.16) |
$ 0.38 |
$ 1.33 | ||||
|
Diluted income (loss) per share |
$ 0.02 |
$ (0.16) |
$ 0.38 |
$ 1.31 | ||||
|
Adjusted diluted income per share(1) |
$ 0.51 |
$ 0.33 |
$ 2.00 |
$ 1.94 | ||||
|
Common share information: |
||||||||
|
Basic shares outstanding |
239 |
243 |
243 |
242 | ||||
|
Diluted shares |
241 |
243 |
245 |
246 | ||||
|
Diluted shares for adjusted diluted income per share |
241 |
247 |
245 |
246 | ||||
|
See end of press release for footnote explanations | ||||||||
|
Table 2 – Results of Operations by Segment | ||||||||||||
|
Three months ended |
Twelve months ended |
|||||||||||
|
December 31, |
Better / (Worse) |
December 31, |
Better / (Worse) | |||||||||
|
In millions, unaudited |
2015 |
2014 |
2015 |
2014 |
||||||||
|
Segment Revenues: |
||||||||||||
|
Polyurethanes |
$ 909 |
$1,201 |
(24)% |
$ 3,811 |
$ 5,032 |
(24)% | ||||||
|
Performance Products |
552 |
712 |
(22)% |
2,501 |
3,072 |
(19)% | ||||||
|
Advanced Materials |
256 |
295 |
(13)% |
1,103 |
1,248 |
(12)% | ||||||
|
Textile Effects |
186 |
203 |
(8)% |
804 |
896 |
(10)% | ||||||
|
Pigments & Additives |
453 |
573 |
(21)% |
2,160 |
1,549 |
39% | ||||||
|
Eliminations and other |
(24) |
(33) |
27% |
(80) |
(219) |
63% | ||||||
|
Total |
$2,332 |
$2,951 |
(21)% |
$10,299 |
$11,578 |
(11)% | ||||||
|
Segment Adjusted EBITDA(1): |
||||||||||||
|
Polyurethanes |
$ 141 |
$ 171 |
(18)% |
$ 573 |
$ 722 |
(21)% | ||||||
|
Performance Products |
76 |
111 |
(32)% |
460 |
473 |
(3)% | ||||||
|
Advanced Materials |
48 |
43 |
12% |
220 |
199 |
11% | ||||||
|
Textile Effects |
13 |
6 |
117% |
63 |
58 |
9% | ||||||
|
Pigments & Additives |
- |
9 |
(100)% |
61 |
76 |
(20)% | ||||||
|
Corporate, LIFO and other |
(38) |
(48) |
21% |
(156) |
(188) |
17% | ||||||
|
Total |
$ 240 |
$ 292 |
(18)% |
$ 1,221 |
$ 1,340 |
(9)% | ||||||
|
See end of press release for footnote explanations |
|
Table 3 – Pro Forma (2) Results of Operations by Segment | ||||||||||||
|
Three months ended |
Twelve months ended |
|||||||||||
|
December 31, |
Better / (Worse) |
December 31, |
Better / (Worse) | |||||||||
|
In millions, unaudited, pro forma |
2015 |
2014 |
2015 |
2014 |
||||||||
|
Segment Revenues: |
||||||||||||
|
Polyurethanes |
$ 909 |
$1,201 |
(24)% |
$ 3,811 |
$ 5,053 |
(25)% | ||||||
|
Performance Products |
552 |
712 |
(22)% |
2,501 |
3,072 |
(19)% | ||||||
|
Advanced Materials |
256 |
295 |
(13)% |
1,103 |
1,248 |
(12)% | ||||||
|
Textile Effects |
186 |
203 |
(8)% |
804 |
896 |
(10)% | ||||||
|
Pigments & Additives |
453 |
559 |
(19)% |
2,160 |
2,673 |
(19)% | ||||||
|
Eliminations and other |
(24) |
(33) |
27% |
(80) |
(219) |
63% | ||||||
|
Pro forma total |
$2,332 |
$2,937 |
(21)% |
$10,299 |
$12,723 |
(19)% | ||||||
|
Segment Adjusted EBITDA(1): |
||||||||||||
|
Polyurethanes |
$ 141 |
$ 171 |
(18)% |
$ 573 |
$ 728 |
(21)% | ||||||
|
Performance Products |
76 |
111 |
(32)% |
460 |
473 |
(3)% | ||||||
|
Advanced Materials |
48 |
43 |
12% |
220 |
199 |
11% | ||||||
|
Textile Effects |
13 |
6 |
117% |
63 |
58 |
9% | ||||||
|
Pigments & Additives |
- |
17 |
(100)% |
61 |
225 |
(73)% | ||||||
|
Corporate, LIFO and other |
(38) |
(48) |
21% |
(156) |
(188) |
17% | ||||||
|
Pro forma total |
$ 240 |
$ 300 |
(20)% |
$ 1,221 |
$ 1,495 |
(18)% | ||||||
|
See end of press release for footnote explanations | ||||||||||||
|
Table 4 – Factors Impacting Sales Revenues | ||||||||||
|
Three months ended | ||||||||||
|
December 31, 2015 vs. 2014 | ||||||||||
|
Average Selling Price(a) |
||||||||||
|
Local |
Exchange |
Sales Mix |
Sales |
|||||||
|
Unaudited |
Currency |
Rate |
& Other |
Volume(b) |
Total | |||||
|
Polyurethanes |
(19)% |
(4)% |
2% |
(3)% |
(24)% | |||||
|
Performance Products |
(11)% |
(4)% |
(1)% |
(6)% |
(22)% | |||||
|
Advanced Materials |
2% |
(8)% |
1% |
(8)% |
(13)% | |||||
|
Textile Effects |
2% |
(7)% |
0% |
(3)% |
(8)% | |||||
|
Pigments & Additives |
(9)% |
(7)% |
(2)% |
(3)% |
(21)% | |||||
|
Total Company |
(14)% |
(5)% |
2% |
(4)% |
(21)% | |||||
|
Twelve months ended | ||||||||||
|
December 31, 2015 vs. 2014 | ||||||||||
|
Average Selling Price(a) |
||||||||||
|
Local |
Exchange |
Sales Mix |
Sales |
|||||||
|
Unaudited |
Currency |
Rate |
& Other(c) |
Volume(b) |
Total | |||||
|
Polyurethanes |
(12)% |
(5)% |
3% |
(10)% |
(24)% | |||||
|
Performance Products |
(7)% |
(5)% |
(3)% |
(4)% |
(19)% | |||||
|
Advanced Materials |
2% |
(8)% |
(1)% |
(5)% |
(12)% | |||||
|
Textile Effects |
1% |
(6)% |
2% |
(7)% |
(10)% | |||||
|
Pigments & Additives |
(10)% |
(8)% |
62% |
(5)% |
39% | |||||
|
Total Company |
(8)% |
(6)% |
10% |
(7)% |
(11)% | |||||
|
Pro forma |
||||||||||
|
Twelve months ended |
||||||||||
|
December 31, 2015 vs. 2014 |
||||||||||
|
Average |
||||||||||
|
Selling |
Sales Mix |
Sales |
||||||||
|
Unaudited, pro forma |
Price(a) |
& Other |
Volume(b) |
Total |
||||||
|
Polyurethanes |
(17)% |
2% |
(2)% |
(17)% |
(d) | |||||
|
Performance Products |
(12)% |
(3)% |
(2)% |
(17)% |
(e) | |||||
|
Advanced Materials |
(6)% |
(1)% |
(5)% |
(12)% |
||||||
|
Textile Effects |
(5)% |
2% |
(7)% |
(10)% |
||||||
|
Pigments & Additives |
(19)% |
2% |
(2)% |
(19)% |
(f) | |||||
|
Total Company |
(15)% |
2% |
(2)% |
(15)% |
||||||
|
(a) |
Excludes sales from tolling arrangements, by-products and raw materials. |
|
(b) |
Excludes sales from by-products and raw materials. |
|
(c) |
Includes impact from the acquisition of the Performance Additives and Titanium Dioxide businesses of Rockwood Holdings, Inc. on October 1, 2014. |
|
(d) |
Excludes volume impact from planned maintenance at our PO/MTBE facility in 1H15. |
|
(e) |
Excludes volume impact from closure of our European surfactants plant in 2Q14. |
|
(f) |
Excludes volume impact from nitrogen tank incident at our Uerdingen, Germany facility in 3Q15. |
|
Table 5 – Reconciliation of U.S. GAAP to Non-GAAP Measures | ||||||||||||||||
|
Income Tax |
Net Income (Loss) |
Diluted Income | ||||||||||||||
|
EBITDA |
Benefit (Expense) |
Attrib. to HUN Corp. |
Per Share | |||||||||||||
|
Three months ended |
Three months ended |
Three months ended |
Three months ended | |||||||||||||
|
December 31, |
December 31, |
December 31, |
December 31, | |||||||||||||
|
In millions, except per share amounts, unaudited |
2015 |
2014 |
2015 |
2014 |
2015 |
2014 |
2015 |
2014 | ||||||||
|
GAAP(1) |
$ 111 |
$ 141 |
$ 39 |
$ (12) |
$ 4 |
$ (38) |
$ 0.02 |
$ (0.16) | ||||||||
|
Adjustments: |
||||||||||||||||
|
Acquisition and integration expenses, purchase accounting adjustments |
22 |
40 |
(6) |
(4) |
16 |
36 |
0.07 |
0.15 | ||||||||
|
Loss from discontinued operations, net of tax(3) |
3 |
1 |
N/A |
N/A |
- |
1 |
- |
- | ||||||||
|
Loss (gain) on disposition of businesses/assets |
1 |
(1) |
- |
- |
1 |
(1) |
- |
- | ||||||||
|
Loss on early extinguishment of debt |
- |
28 |
- |
(10) |
- |
18 |
- |
0.07 | ||||||||
|
Certain legal settlements and related expenses |
1 |
- |
- |
- |
1 |
- |
- |
- | ||||||||
|
Plant incident remediation costs |
1 |
- |
- |
- |
1 |
- |
- |
- | ||||||||
|
Amortization of pension and postretirement actuarial losses |
18 |
14 |
(3) |
- |
15 |
14 |
0.06 |
0.06 | ||||||||
|
Restructuring, impairment, plant closing and transition costs |
83 |
69 |
3 |
(18) |
86 |
51 |
0.36 |
0.21 | ||||||||
|
Adjusted(1) |
$ 240 |
$ 292 |
$ 33 |
$ (44) |
$ 124 |
$ 81 |
$ 0.51 |
$ 0.33 | ||||||||
|
Adjusted income tax (benefit) expense |
(33) |
44 |
||||||||||||||
|
Net income attributable to noncontrolling interests, net of tax |
5 |
3 |
||||||||||||||
|
Adjusted pre-tax income(1) |
$ 96 |
$ 128 |
||||||||||||||
|
Adjusted effective tax rate |
-34% |
34% |
||||||||||||||
|
Income Tax |
Net Income |
Diluted Income | ||||||||||||||
|
EBITDA |
(Expense) Benefit |
Attrib. to HUN Corp. |
Per Share | |||||||||||||
|
Three months ended |
Three months ended |
Three months ended |
Three months ended | |||||||||||||
|
September 30, |
September 30, |
September 30, |
September 30, | |||||||||||||
|
In millions, except per share amounts, unaudited |
2015 |
2015 |
2015 |
2015 | ||||||||||||
|
GAAP(1) |
$ 255 |
$ (49) |
$ 55 |
$ 0.22 |
||||||||||||
|
Adjustments: |
||||||||||||||||
|
Acquisition and integration expenses, purchase accounting adjustments |
10 |
(2) |
8 |
0.03 |
||||||||||||
|
Loss from discontinued operations, net of tax(3) |
1 |
N/A |
- |
- |
||||||||||||
|
Loss on early extinguishment of debt |
8 |
(3) |
5 |
0.02 |
||||||||||||
|
Certain legal settlements and related expenses |
1 |
- |
1 |
- |
||||||||||||
|
Plant incident remediation costs |
3 |
(1) |
2 |
0.01 |
||||||||||||
|
Amortization of pension and postretirement actuarial losses |
19 |
(4) |
15 |
0.06 |
||||||||||||
|
Restructuring, impairment, plant closing and transition costs |
14 |
15 |
29 |
0.12 |
||||||||||||
|
Adjusted(1) |
$ 311 |
$ (44) |
$ 115 |
$ 0.47 |
||||||||||||
|
Adjusted income tax expense |
44 |
|||||||||||||||
|
Net income attributable to noncontrolling interests, net of tax |
8 |
|||||||||||||||
|
Adjusted pre-tax income(1) |
$ 167 |
|||||||||||||||
|
Adjusted effective tax rate |
26% |
|||||||||||||||
|
Income Tax |
Net Income |
Diluted Income | ||||||||||||||
|
EBITDA |
Expense (Benefit) |
Attrib. to HUN Corp. |
Per Share | |||||||||||||
|
Twelve months ended |
Twelve months ended |
Twelve months ended |
Twelve months ended | |||||||||||||
|
December 31, |
December 31, |
December 31, |
December 31, | |||||||||||||
|
In millions, except per share amounts, unaudited |
2015 |
2014 |
2015 |
2014 |
2015 |
2014 |
2015 |
2014 | ||||||||
|
GAAP(1) |
$ 741 |
$ 1,022 |
$ (46) |
$ (51) |
$ 93 |
$ 323 |
$ 0.38 |
$ 1.31 | ||||||||
|
Adjustments: |
||||||||||||||||
|
Acquisition and integration expenses, purchase accounting adjustments |
53 |
67 |
(13) |
(10) |
40 |
57 |
0.16 |
0.23 | ||||||||
|
Impact of certain foreign tax credit elections |
N/A |
N/A |
- |
(94) |
- |
(94) |
- |
(0.38) | ||||||||
|
Loss from discontinued operations, net of tax(3) |
6 |
10 |
N/A |
N/A |
4 |
8 |
0.02 |
0.03 | ||||||||
|
Loss (gain) on disposition of businesses/assets |
2 |
(3) |
- |
1 |
2 |
(2) |
0.01 |
(0.01) | ||||||||
|
Loss on early extinguishment of debt |
31 |
28 |
(11) |
(10) |
20 |
18 |
0.08 |
0.07 | ||||||||
|
Certain legal settlements and related expenses |
4 |
3 |
(1) |
- |
3 |
3 |
0.01 |
0.01 | ||||||||
|
Plant incident remediation costs |
4 |
- |
(1) |
- |
3 |
- |
0.01 |
- | ||||||||
|
Amortization of pension and postretirement actuarial losses |
74 |
51 |
(17) |
(10) |
57 |
41 |
0.23 |
0.17 | ||||||||
|
Restructuring, impairment, plant closing and transition costs |
306 |
162 |
(36) |
(38) |
270 |
124 |
1.10 |
0.50 | ||||||||
|
Adjusted(1) |
$ 1,221 |
$ 1,340 |
$ (125) |
$ (212) |
$ 492 |
$ 478 |
$ 2.00 |
$ 1.94 | ||||||||
|
Adjusted income tax expense |
125 |
212 |
||||||||||||||
|
Net income attributable to noncontrolling interests, net of tax |
33 |
22 |
||||||||||||||
|
Adjusted pre-tax income(1) |
$ 650 |
$ 712 |
||||||||||||||
|
Adjusted effective tax rate |
19% |
30% |
||||||||||||||
|
See end of press release for footnote explanations | ||||||||||||||||
|
Table 6 – Pro Forma (2) Reconciliation of U.S. GAAP to Non-GAAP Measures | ||||
|
Pro Forma EBITDA | ||||
|
Three months ended | ||||
|
December 31, | ||||
|
In millions, except per share amounts, unaudited, pro forma |
2015 |
2014 | ||
|
GAAP(1) |
$ 111 |
$ 191 | ||
|
Adjustments: |
||||
|
Acquisition and integration expenses, purchase accounting adjustments |
22 |
(2) | ||
|
Loss from discontinued operations, net of tax(3) |
3 |
1 | ||
|
Loss (gain) on disposition of businesses/assets |
1 |
(1) | ||
|
Loss on early extinguishment of debt |
- |
28 | ||
|
Certain legal settlements and related expenses |
1 |
- | ||
|
Plant incident remediation costs |
1 |
- | ||
|
Amortization of pension and postretirement actuarial losses |
18 |
14 | ||
|
Restructuring, impairment, plant closing and transition costs |
83 |
69 | ||
|
Pro forma adjusted(2) |
$ 240 |
$ 300 | ||
|
Pro Forma EBITDA | ||||
|
Three months ended | ||||
|
September 30, | ||||
|
In millions, except per share amounts, unaudited pro forma |
2015 | |||
|
GAAP(1) |
$ 255 |
|||
|
Adjustments: |
||||
|
Acquisition and integration expenses, purchase accounting adjustments |
10 |
|||
|
Loss from discontinued operations, net of tax(3) |
1 |
|||
|
Loss on early extinguishment of debt |
8 |
|||
|
Certain legal settlements and related expenses |
1 |
|||
|
Plant incident remediation costs |
3 |
|||
|
Amortization of pension and postretirement actuarial losses |
19 |
|||
|
Restructuring, impairment, plant closing and transition costs |
14 |
|||
|
Pro forma adjusted(2) |
$ 311 |
|||
|
Pro Forma EBITDA | ||||
|
Twelve months ended | ||||
|
December 31, | ||||
|
In millions, except per share amounts, unaudited pro forma |
2015 |
2014 | ||
|
GAAP(1) |
$ 741 |
$ 1,214 | ||
|
Adjustments: |
||||
|
Allocation of general corporate overhead |
- |
20 | ||
|
Acquisition and integration expenses, purchase accounting adjustments |
53 |
7 | ||
|
Loss from discontinued operations, net of tax(3) |
6 |
10 | ||
|
Loss (gain) on disposition of businesses/assets |
2 |
(3) | ||
|
Loss on early extinguishment of debt |
31 |
28 | ||
|
Certain legal settlements and related expenses |
4 |
3 | ||
|
Plant incident remediation costs |
4 |
- | ||
|
Amortization of pension and postretirement actuarial losses |
74 |
54 | ||
|
Restructuring, impairment, plant closing and transition costs |
306 |
162 | ||
|
Pro forma adjusted(2) |
$ 1,221 |
$ 1,495 | ||
|
See end of press release for footnote explanations | ||||
|
Table 7 – Reconciliation of Net Income to EBITDA | ||||||||||
|
Three months ended |
Twelve months ended | |||||||||
|
December 31, |
September 30, |
December 31, | ||||||||
|
In millions, unaudited |
2015 |
2014 |
2015 |
2015 |
2014 | |||||
|
Net income (loss) attributable to Huntsman Corporation |
$ 4 |
$ (38) |
$ 55 |
$ 93 |
$ 323 | |||||
|
Interest expense |
47 |
57 |
49 |
205 |
205 | |||||
|
Income tax (benefit) expense from continuing operations |
(39) |
12 |
49 |
46 |
51 | |||||
|
Income tax benefit from discontinued operations(3) |
(3) |
- |
(1) |
(2) |
(2) | |||||
|
Depreciation and amortization |
102 |
110 |
103 |
399 |
445 | |||||
|
EBITDA(1) |
111 |
141 |
255 |
741 |
1,022 | |||||
|
Pro forma adjustments to: |
||||||||||
|
Net income (loss) attributable to Huntsman Corporation |
- |
26 |
- |
- |
75 | |||||
|
Interest expense |
- |
1 |
- |
- |
34 | |||||
|
Income tax (benefit) expense from continuing operations |
- |
13 |
- |
- |
43 | |||||
|
Depreciation and amortization |
- |
10 |
- |
- |
40 | |||||
|
Pro forma EBITDA(2) |
$111 |
$191 |
$ 255 |
$741 |
$1,214 | |||||
|
See end of press release for footnote explanations | ||||||||||
|
Table 8 – Selected Balance Sheet Items | ||||||
|
December 31, |
September 30, |
December 31, | ||||
|
In millions |
2015 |
2015 |
2014 | |||
|
(unaudited) |
||||||
|
Cash |
$ 269 |
$ 437 |
$ 870 | |||
|
Accounts and notes receivable, net |
1,449 |
1,632 |
1,707 | |||
|
Inventories |
1,692 |
1,850 |
2,025 | |||
|
Other current assets |
424 |
332 |
437 | |||
|
Property, plant and equipment, net |
4,446 |
4,380 |
4,423 | |||
|
Other assets |
1,540 |
1,535 |
1,461 | |||
|
Total assets |
$ 9,820 |
$ 10,166 |
$ 10,923 | |||
|
Accounts payable |
$ 1,061 |
$ 1,068 |
$ 1,275 | |||
|
Other current liabilities |
686 |
839 |
790 | |||
|
Current portion of debt |
170 |
158 |
267 | |||
|
Long-term debt |
4,625 |
4,639 |
4,854 | |||
|
Other liabilities |
1,649 |
1,671 |
1,786 | |||
|
Total equity |
1,629 |
1,791 |
1,951 | |||
|
Total liabilities and equity |
$ 9,820 |
$ 10,166 |
$ 10,923 | |||
|
Table 9 – Outstanding Debt | ||||||
|
December 31, |
September 30, |
December 31, | ||||
|
In millions |
2015 |
2015 |
2014 | |||
|
(unaudited) |
||||||
|
Debt: |
||||||
|
Senior credit facilities |
$ 2,454 |
$ 2,453 |
$ 2,468 | |||
|
Accounts receivable programs |
215 |
217 |
229 | |||
|
Senior notes |
1,850 |
1,867 |
1,582 | |||
|
Senior subordinated notes |
- |
- |
526 | |||
|
Variable interest entities |
151 |
158 |
207 | |||
|
Other debt |
125 |
102 |
109 | |||
|
Total debt - excluding affiliates |
4,795 |
4,797 |
5,121 | |||
|
Total cash |
269 |
437 |
870 | |||
|
Net debt- excluding affiliates |
$ 4,526 |
$ 4,360 |
$ 4,251 | |||
|
Table 10 – Summarized Statement of Cash Flows | |||||||
|
Three months ended |
Year ended | ||||||
|
December 31, |
December 31, | ||||||
|
In millions, unaudited |
2015 |
2015 |
2014 | ||||
|
Total cash at beginning of period(a) |
$ 437 |
$ 870 |
$ 529 | ||||
|
Net cash provided by operating activities |
188 |
575 |
760 | ||||
|
Net cash used in investing activities |
(217) |
(600) |
(1,606) | ||||
|
Net cash (used in) provided by financing activities |
(144) |
(562) |
1,197 | ||||
|
Effect of exchange rate changes on cash |
(3) |
(16) |
(11) | ||||
|
Change in restricted cash |
8 |
2 |
1 | ||||
|
Total cash at end of period(a) |
$ 269 |
$ 269 |
$ 870 | ||||
|
Supplemental cash flow information: |
|||||||
|
Cash paid for interest |
$ (67) |
$(225) |
$ (208) | ||||
|
Cash paid for income taxes |
(45) |
(126) |
(165) | ||||
|
Cash paid for capital expenditures |
(209) |
(663) |
(601) | ||||
|
Depreciation and amortization |
102 |
399 |
445 | ||||
|
Changes in primary working capital: |
|||||||
|
Accounts and notes receivable |
$ 174 |
$ 121 |
$ 2 | ||||
|
Inventories |
133 |
179 |
(20) | ||||
|
Accounts payable |
(46) |
(157) |
86 | ||||
|
Total cash provided by primary working capital |
$ 261 |
$ 143 |
$ 68 | ||||
|
(a) Includes restricted cash. | |||||||
|
Footnotes | |
|
(1) |
We use EBITDA and adjusted EBITDA to measure the operating performance of our business. We provide adjusted net income because we feel it provides meaningful insight for the investment community into the performance of our business. We believe that net income (loss) attributable to Huntsman Corporation is the performance measure calculated and presented in accordance with generally accepted accounting principles in the U.S. ("GAAP") that is most directly comparable to EBITDA, adjusted EBITDA and adjusted net income. Additional information with respect to our use of each of these financial measures follows: |
|
EBITDA is defined as net income (loss) attributable to Huntsman Corporation before interest, income taxes, and depreciation and amortization. EBITDA as used herein is not necessarily comparable to other similarly titled measures of other companies. The reconciliation of EBITDA to net income (loss) attributable to Huntsman Corporation is set forth in Table 7 above. | |
|
Adjusted EBITDA is computed by eliminating the following from EBITDA: (a) acquisition and integration expenses, purchase accounting adjustments; (b) loss (gain) on initial consolidation of subsidiaries; (c) EBITDA from discontinued operations; (d) loss (gain) on disposition of businesses/assets; (e) loss on early extinguishment of debt; (f) extraordinary loss (gain) on the acquisition of a business; (g) certain legal settlements and related expenses; (h) plant incident remediation costs; (i) amortization of pension and postretirement actuarial losses (gains); and (j) restructuring, impairment, plant closing and transition costs (credits). The reconciliation of adjusted EBITDA to EBITDA is set forth in Table 5 above. | |
|
Adjusted net income (loss) is computed by eliminating the after tax impact of the following items from net income (loss) attributable to Huntsman Corporation: (a) acquisition and integration expenses, purchase accounting adjustments; (b) impact of certain foreign tax credit elections; (c) loss (gain) on initial consolidation of subsidiaries; (d) loss (income) from discontinued operations; (e) discount amortization on settlement financing associated with the terminated merger; (f) loss (gain) on disposition of businesses/assets; (g) loss on early extinguishment of debt; (h) extraordinary loss (gain) on the acquisition of a business; (i) certain legal settlements and related expenses; (j) plant incident remediation costs; (k) amortization of pension and postretirement actuarial losses (gains); and (l) restructuring, impairment, plant closing and transition costs (credits). We do not adjust for changes in tax valuation allowances because we do not believe it provides more meaningful information than is provided under GAAP. The reconciliation of adjusted net income (loss) to net income (loss) attributable to Huntsman Corporation common stockholders is set forth in Table 5 above. | |
|
(2) |
Pro forma adjusted as if it had occurred at the beginning of the relevant period to (a) include the October 1, 2014 acquisition of the Performance Additives and Titanium Dioxide businesses of Rockwood Holdings, Inc.; (b) to exclude the related sale of our TR52 product line – used in printing inks – to Henan Billions Chemicals Co., Ltd. in December 2014; and (c) to exclude the allocation of general corporate overhead by Rockwood. |
|
(3) |
During the first quarter 2010 we closed our Australian styrenics operations; results from this business are treated as discontinued operations. |
About Huntsman:
Huntsman Corporation is a publicly traded global manufacturer and marketer of differentiated chemicals with 2015 revenues of approximately $10 billion. Our chemical products number in the thousands and are sold worldwide to manufacturers serving a broad and diverse range of consumer and industrial end markets. We operate more than 100 manufacturing and R&D facilities in approximately 30 countries and employ approximately 15,000 associates within our 5 distinct business divisions. For more information about Huntsman, please visit the company's website at www.huntsman.com.
Social Media:
Twitter: twitter.com/Huntsman_Corp
Facebook: www.facebook.com/huntsmancorp
LinkedIn: www.linkedin.com/company/huntsman
Forward-Looking Statements:
Statements in this release that are not historical are forward-looking statements. These statements are based on management's current beliefs and expectations. The forward-looking statements in this release are subject to uncertainty and changes in circumstances and involve risks and uncertainties that may affect the company's operations, markets, products, services, prices and other factors as discussed in the Huntsman companies' filings with the U.S. Securities and Exchange Commission. Significant risks and uncertainties may relate to, but are not limited to, financial, economic, competitive, environmental, political, legal, regulatory and technological factors. The company assumes no obligation to provide revisions to any forward-looking statements should circumstances change, except as otherwise required by applicable laws.
SOURCE Huntsman Corporation
Article Date
2/11/2016Huntsman Announces Details of 2016 Annual Meeting of Stockholders and 2016 Investor Day
Source: PR Newswire
Orignial Article: http://www.prnewswire.com...
THE WOODLANDS, Texas, Feb. 8, 2016 /PRNewswire/ -- Huntsman Corporation (NYSE: HUN) announced today it will hold its 2016 annual meeting of stockholders on Thursday, May 5, 2016 at 8:30 a.m., local time, at The Westin The Woodlands, 2 Waterway Square Place, The Woodlands, TX 77380. Holders of record as of the close of business on March 11, 2016 will be entitled to vote at the meeting.
Huntsman Corporation will host a meeting for investors and analysts on Wednesday, March 2, 2016 from 8:00 a.m. to 1:00 p.m., local time in New York City. The agenda for the meeting will include a review of the company's business strategy and an in-depth discussion of each of the company's businesses. Presenters will include Peter Huntsman, President and CEO and other business leaders. A live webcast and presentation materials will be available the day of the event at ir.huntsman.com. A replay of the webcast will be available following the presentations. Contact ir@huntsman.com for more information or to RSVP.
About Huntsman:
Huntsman Corporation is a publicly traded global manufacturer and marketer of differentiated chemicals with 2014 revenues of approximately $13 billion including the acquisition of Rockwood's performance additives and titanium dioxide businesses. Our chemical products number in the thousands and are sold worldwide to manufacturers serving a broad and diverse range of consumer and industrial end markets. We operate more than 100 manufacturing and R&D facilities in more than 30 countries and employ approximately 16,000 associates within our 5 distinct business divisions. For more information about Huntsman, please visit the company's website at www.huntsman.com.
Social Media:
Twitter: twitter.com/Huntsman_Corp
Facebook: www.facebook.com/huntsmancorp
LinkedIn: www.linkedin.com/company/huntsman
Forward-Looking Statements:
Statements in this release that are not historical are forward-looking statements. These statements are based on management's current beliefs and expectations. The forward-looking statements in this release are subject to uncertainty and changes in circumstances and involve risks and uncertainties that may affect the company's operations, markets, products, services, prices and other factors as discussed in the Huntsman companies' filings with the U.S. Securities and Exchange Commission. Significant risks and uncertainties may relate to, but are not limited to, financial, economic, competitive, environmental, political, legal, regulatory and technological factors. The company assumes no obligation to provide revisions to any forward-looking statements should circumstances change, except as otherwise required by applicable laws.
SOURCE Huntsman Corporation
Article Date
2/8/2016Huntsman Announces First Quarter 2016 Common Dividend
Source: PR Newswire
Orignial Article: http://www.prnewswire.com...
THE WOODLANDS, Texas, Feb. 4, 2016 /PRNewswire/ -- Huntsman Corporation (NYSE: HUN) announced today that the company's board of directors has declared a $0.125 per share cash dividend on its common stock.
The dividend is payable on March 31, 2016 to stockholders of record as of March 15, 2016.
About Huntsman:
Huntsman Corporation is a publicly traded global manufacturer and marketer of differentiated chemicals with 2014 revenues of approximately $13 billion including the acquisition of Rockwood's performance additives and titanium dioxide businesses. Our chemical products number in the thousands and are sold worldwide to manufacturers serving a broad and diverse range of consumer and industrial end markets. We operate more than 100 manufacturing and R&D facilities in more than 30 countries and employ approximately 16,000 associates within our 5 distinct business divisions. For more information about Huntsman, please visit the company's website at www.huntsman.com.
Social Media:
Twitter: twitter.com/Huntsman_Corp
Facebook: www.facebook.com/huntsmancorp
LinkedIn: www.linkedin.com/company/huntsman
Forward-Looking Statements:
Statements in this release that are not historical are forward-looking statements. These statements are based on management's current beliefs and expectations. The forward-looking statements in this release are subject to uncertainty and changes in circumstances and involve risks and uncertainties that may affect the company's operations, markets, products, services, prices and other factors as discussed in the Huntsman companies' filings with the U.S. Securities and Exchange Commission. Significant risks and uncertainties may relate to, but are not limited to, financial, economic, competitive, environmental, political, legal, regulatory and technological factors. The company assumes no obligation to provide revisions to any forward-looking statements should circumstances change, except as otherwise required by applicable laws.
SOURCE Huntsman Corporation
Article Date
2/4/2016Huntsman To Discuss Fourth Quarter And Full Year 2015 Results On February 11, 2016
Source: PR Newswire
Orignial Article: http://www.prnewswire.com...
THE WOODLANDS, Texas, Jan. 28, 2016 /PRNewswire/ -- Huntsman Corporation (NYSE: HUN) will hold a conference call to discuss its fourth quarter and full year 2015 financial results on Thursday, February 11, 2016 at 9:00 a.m. ET. Fourth quarter and full year 2015 results will be released to the public at approximately 6:00 a.m. ET that day via PR Newswire.
|
Call-in numbers for the conference call: | |
|
U.S. participants |
(888) 713 - 4199 |
|
International participants |
(617) 213 - 4861 |
|
Passcode |
810 262 68# |
In order to facilitate the registration process, you may use the following link to pre-register for the conference call. Callers who pre-register will be given a unique PIN to gain immediate access to the call and bypass the live operator. You may pre-register at any time, including up to and after the call start time. To pre-register, please go to: https://www.theconferencingservice.com/prereg/key.process?key=P8K7QH79L
Webcast Information
The conference call will be available via webcast and can be accessed from the company's website at ir.huntsman.com.
Replay Information
The conference call will be available for replay beginning February 11, 2016 and ending February 18, 2016.
|
Call-in numbers for the replay: | |
|
U.S. participants |
(888) 286 - 8010 |
|
International participants |
(617) 801 - 6888 |
|
Replay code |
29385180 |
About Huntsman:
Huntsman Corporation is a publicly traded global manufacturer and marketer of differentiated chemicals with 2014 revenues of approximately $13 billion including the acquisition of Rockwood's performance additives and titanium dioxide businesses. Our chemical products number in the thousands and are sold worldwide to manufacturers serving a broad and diverse range of consumer and industrial end markets. We operate more than 100 manufacturing and R&D facilities in more than 30 countries and employ approximately 16,000 associates within our 5 distinct business divisions. For more information about Huntsman, please visit the company's website at www.huntsman.com.
Social Media:
Twitter: twitter.com/Huntsman_Corp
Facebook: www.facebook.com/huntsmancorp
LinkedIn: www.linkedin.com/company/huntsman
Forward-Looking Statements:
Statements in this release that are not historical are forward-looking statements. These statements are based on management's current beliefs and expectations. The forward-looking statements in this release are subject to uncertainty and changes in circumstances and involve risks and uncertainties that may affect the company's operations, markets, products, services, prices and other factors as discussed in the Huntsman companies' filings with the U.S. Securities and Exchange Commission. Significant risks and uncertainties may relate to, but are not limited to, financial, economic, competitive, environmental, political, legal, regulatory and technological factors. The company assumes no obligation to provide revisions to any forward-looking statements should circumstances change, except as otherwise required by applicable laws.
SOURCE Huntsman Corporation
Article Date
1/29/20161/12/2016 - Huntsman Completes Repurchase Of 8.6 Million Shares Through An Accelerated Repurchase Program
Huntsman Completes Repurchase Of 8.6 Million Shares Through An Accelerated Repurchase Program
Source: PR Newswire
Orignial Article: http://www.prnewswire.com...
THE WOODLANDS, Texas, Jan. 11, 2016 /PRNewswire/ -- Huntsman Corporation (NYSE: HUN) announced today that it has completed a previously announced $100 million accelerated share repurchase program of 8.6 million shares through an accelerated repurchase program with Citibank, N.A.
In September 2015, the Huntsman Board of Directors authorized the repurchase of $150 million of stock. The Company intends to utilize the remaining $50 million available under this authorization to purchase additional shares.
Peter R. Huntsman, President and CEO, commented:
"We remain committed to improving our free cash flow generation in 2016 by $350 million primarily through lower capital expenditures and restructuring expenses. We continue to pursue a separation of our TiO2 business through a spinoff transaction. During the period to complete the spinoff transaction we will continue to pursue other strategic options. In the meantime we are optimistic about the recent TiO2 price increase announcements. We also expect to deliver an additional $100 million of restructuring savings in 2016. 2015 was a transition year for us and we are excited to deliver improved performance in 2016."
Repurchases under the remaining authorized $50 million may be made from time to time through open market transactions, in privately negotiated transactions, accelerated share repurchase programs or by other means. The timing and actual number of any shares repurchased will depend on a variety of factors, including market conditions. The share repurchase authorization does not have an expiration date and repurchases may be commenced, suspended or discontinued from time to time without prior notice.
About Huntsman:
Huntsman Corporation is a publicly traded global manufacturer and marketer of differentiated chemicals with 2014 revenues of approximately $13 billion including the acquisition of Rockwood's performance additives and titanium dioxide businesses. Our chemical products number in the thousands and are sold worldwide to manufacturers serving a broad and diverse range of consumer and industrial end markets. We operate more than 100 manufacturing and R&D facilities in more than 30 countries and employ approximately 16,000 associates within our 5 distinct business divisions. For more information about Huntsman, please visit the company's website at www.huntsman.com.
Social Media:
Twitter: twitter.com/Huntsman_Corp
Facebook: www.facebook.com/huntsmancorp
LinkedIn: www.linkedin.com/company/huntsman
Forward-Looking Statements:
Statements in this release that are not historical are forward-looking statements. These statements are based on management's current beliefs and expectations. The forward-looking statements in this release are subject to uncertainty and changes in circumstances and involve risks and uncertainties that may affect the company's operations, markets, products, services, prices and other factors as discussed in the Huntsman companies' filings with the U.S. Securities and Exchange Commission. Significant risks and uncertainties may relate to, but are not limited to, financial, economic, competitive, environmental, political, legal, regulatory and technological factors. The company assumes no obligation to provide revisions to any forward-looking statements should circumstances change, except as otherwise required by applicable laws.
SOURCE Huntsman Corporation
Article Date
1/12/2016Huntsman Announces Global Titanium Dioxide Price Increases
Source: PR Newswire
Orignial Article: http://www.prnewswire.com...
THE WOODLANDS, Texas, Dec. 18, 2015 /PRNewswire/ -- Huntsman Corporation (NYSE: HUN) today announced global price increases for all its titanium dioxide pigments. The following increases are effective January 1, 2016, or as contracts allow:
Europe: €150 (Euros) per tonne or $160 (USD) per tonne in dollar-based markets
North America: $0.07 per pound (USD)
Asia-Pacific, Africa, Latin America and Middle East: $160 (USD) per tonne
About Huntsman:
Huntsman Corporation is a publicly traded global manufacturer and marketer of differentiated chemicals with 2014 revenues of approximately $13 billion including the acquisition of Rockwood's performance additives and titanium dioxide businesses. Our chemical products number in the thousands and are sold worldwide to manufacturers serving a broad and diverse range of consumer and industrial end markets. We operate more than 100 manufacturing and R&D facilities in more than 30 countries and employ approximately 16,000 associates within our 5 distinct business divisions. For more information about Huntsman, please visit the company's website at www.huntsman.com.
Social Media:
Twitter: twitter.com/Huntsman_Corp
Facebook: www.facebook.com/huntsmancorp
LinkedIn: www.linkedin.com/company/huntsman
Forward-Looking Statements:
Statements in this release that are not historical are forward-looking statements. These statements are based on management's current beliefs and expectations. The forward-looking statements in this release are subject to uncertainty and changes in circumstances and involve risks and uncertainties that may affect the company's operations, markets, products, services, prices and other factors as discussed in the Huntsman companies' filings with the U.S. Securities and Exchange Commission. Significant risks and uncertainties may relate to, but are not limited to, financial, economic, competitive, environmental, political, legal, regulatory and technological factors. The company assumes no obligation to provide revisions to any forward-looking statements should circumstances change, except as otherwise required by applicable laws.
SOURCE Huntsman Corporation
Article Date
12/18/2015Projects & Assets
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