THE WOODLANDS, Texas,
July 30, 2014 /PRNewswire/ --
Second Quarter 2014 Highlights
- Adjusted EBITDA was $363 million
compared to $304 million in the prior
year period, an improvement of 19%.
- Adjusted diluted income per share was $0.59 compared to $0.39 in the prior year period.
- Net income attributable to Huntsman Corporation was
$119 million compared to $47 million in the prior year period.
|
|
Three months
ended
|
|
Six months
ended
|
|
|
June
30,
|
|
March
31,
|
|
June
30,
|
In millions, except
per share amounts, unaudited
|
|
2014
|
|
2013
|
|
2014
|
|
2014
|
|
2013
|
|
|
|
|
|
|
|
|
|
|
|
Revenues
|
|
$2,988
|
|
$2,830
|
|
$ 2,755
|
|
$5,743
|
|
$5,532
|
|
|
|
|
|
|
|
|
|
|
|
Net income
attributable to Huntsman Corporation
|
|
$ 119
|
|
$ 47
|
|
$ 54
|
|
$ 173
|
|
$ 23
|
Adjusted net
income(1)
|
|
$ 145
|
|
$ 94
|
|
$ 105
|
|
$ 250
|
|
$ 140
|
|
|
|
|
|
|
|
|
|
|
|
Diluted income per
share
|
|
$ 0.48
|
|
$ 0.19
|
|
$ 0.22
|
|
$ 0.71
|
|
$ 0.10
|
Adjusted diluted
income per share(1)
|
|
$ 0.59
|
|
$ 0.39
|
|
$ 0.43
|
|
$ 1.02
|
|
$ 0.58
|
|
|
|
|
|
|
|
|
|
|
|
EBITDA(1)
|
|
$ 327
|
|
$ 249
|
|
$ 261
|
|
$ 588
|
|
$ 361
|
Adjusted
EBITDA(1)
|
|
$ 363
|
|
$ 304
|
|
$ 329
|
|
$ 692
|
|
$ 524
|
|
|
|
|
|
|
|
|
|
|
|
See end of press
release for footnote explanations
|
Huntsman Corporation (NYSE: HUN) today reported second quarter
2014 results with revenues of $2,988
million and adjusted EBITDA of $363
million.
Peter R. Huntsman, our President
and CEO, commented:
"We saw strong earnings in the second quarter as a result of
increased demand for key products such as MDI and amines and higher
selling prices for many of our products. We also benefited from
restructuring efforts in our Advanced Materials and Textile Effects
businesses. These results are well in line with our earlier
forecast of substantial earnings growth in the next two to three
years.
We are working closely with the European Commission in its
review of the proposed acquisition of Rockwood Holding's
Performance Additives and Titanium Dioxide businesses. We have
proposed certain remedies we believe address the Commission's
concerns and are confident that final approval will be secured by
the end of the third quarter."
Segment Analysis for 2Q14 Compared to 2Q13
Polyurethanes
The increase in revenues in our Polyurethanes division for the
three months ended June 30, 2014
compared to the same period in 2013 was primarily due to higher
sales volumes. MDI sales volumes increased 7% as a result of
improved demand in all regions and across most major markets.
PO/MTBE sales volumes decreased as a result of a manufacturing
disruption at our Port Neches,
Texas facility which resulted in lower EBITDA of
approximately $10 million. MDI
average selling prices increased in the Americas and European
regions, offset by lower component pricing in China. PO/MTBE
average selling prices increased primarily due to favorable market
conditions. The increase in adjusted EBITDA was due to higher
MDI sales volumes and contribution margins.
Performance Products
The increase in revenues in our Performance Products division
for the three months ended June 30,
2014 compared to the same period in 2013 was due to higher
average selling prices, partially offset by lower sales volumes.
Average selling prices increased in response to higher raw
materials costs and strong market conditions for amines, maleic
anhydride and specialty surfactants. Sales volumes decreased
primarily due to the impact of scheduled maintenance, partially
offset by increased sales volumes in amines and maleic
anhydride. The increase in adjusted EBITDA was primarily due
to higher contribution margins.
Advanced Materials
The increase in revenues in our Advanced Materials division for
the three months ended June 30, 2014
compared to the same period in 2013 was primarily due to higher
average selling prices and favorable sales mix, partially offset by
lower sales volumes. Average selling prices increased in all
regions and across most markets primarily due to certain price
increase initiatives and higher value sales markets. Sales
volumes decreased in our base resins business primarily due to our
restructuring efforts. During the fourth quarter 2013 we
closed two of our base resins production units as we focus on
higher value markets such as aerospace, transportation and
industrial and coatings and construction. The increase in
adjusted EBITDA was primarily due to higher contribution margins
and lower manufacturing and selling, general and administrative
costs as a result of our restructuring efforts.
Textile Effects
The increase in revenues in our Textile Effects division for the
three months ended June 30, 2014
compared to the same period in 2013 was primarily due to higher
average selling prices, partially offset by lower sales
volumes. Average selling prices increased primarily in
response to higher raw material costs. Sales volumes
decreased primarily due to the de-selection of lower value
business. The increase in adjusted EBITDA was primarily due
to higher contribution margins and lower manufacturing and selling,
general and administrative costs as a result of our restructuring
efforts.
Pigments
The increase in revenues in our Pigments division for the three
months ended June 30, 2014 compared
to the same period in 2013 was primarily due to higher sales
volumes, partially offset by lower average selling prices.
Sales volumes increased primarily as a result of higher end-use
demand, particularly in Europe. Average selling prices
decreased primarily as a result of high industry inventory levels
partially offset by the strength of the euro against the U.S.
dollar (notably, average selling prices were flat compared to the
first quarter). The decrease in adjusted EBITDA was primarily
due to lower contribution margins, partially offset by higher sales
volumes.
Corporate, LIFO and Other
Adjusted EBITDA from Corporate, LIFO and Other improved by
$2 million to a loss of $47 million for the three months ended
June 30, 2014 compared to a loss of
$49 million for the same period in
2013.
Liquidity, Capital Resources and Outstanding Debt
As of June 30, 2014 we had
$1,072 million of combined cash and
unused borrowing capacity compared to $1,048
million at December 31,
2013.
In June 2014, we issued an
additional €145 million (approximately $197
million) of 5.125% Senior Notes due 2021. The notes
were issued at a premium to yield 4.57%. Net proceeds were
used for general corporate purposes.
Total capital expenditures for the quarter ended June 30, 2014 were $107
million. We expect to spend approximately $500 million on capital expenditures in 2014, net
of reimbursements and excluding any amounts associated with the
planned acquisition of the Performance Additives and Titanium
Dioxide businesses of Rockwood Holdings, Inc.
Income Taxes
During the three months ended June 30,
2014 we recorded income tax expense of $43 million and paid $97
million in cash for income taxes. Our adjusted
effective income tax rate for the three months ended June 30, 2014 was 25%. The low tax rate was
a result of the release of tax valuation allowances in part due to
the restructuring of our European surfactants business.
We expect our full year 2014 adjusted effective tax rate to be
in the low thirties excluding the impact of the planned acquisition
of the Performance Additives and Titanium Dioxide businesses of
Rockwood Holdings, Inc. 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
2014 financial results on Wednesday, July
30, 2014 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
|
72944602
|
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=P7ABG8KYW
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 30, 2014 and ending August 6, 2014.
Call-in numbers for
the replay:
|
|
U.S.
participants
|
(888) 286 -
8010
|
International
participants
|
(617) 801 -
6888
|
Replay
code
|
93930078
|
Table 1 -- Results
of Operations
|
|
|
|
|
|
|
|
|
|
|
|
Three months
ended
|
|
Six months
ended
|
|
|
June
30,
|
|
June
30,
|
In millions, except
per share amounts, unaudited
|
|
2014
|
|
2013
|
|
2014
|
|
2013
|
|
|
|
|
|
|
|
|
|
Revenues
|
|
$2,988
|
|
$2,830
|
|
$5,743
|
|
$5,532
|
Cost of goods
sold
|
|
2,483
|
|
2,379
|
|
4,788
|
|
4,732
|
Gross
profit
|
|
505
|
|
451
|
|
955
|
|
800
|
Operating
expenses
|
|
276
|
|
281
|
|
537
|
|
536
|
Restructuring,
impairment and plant closing costs
|
|
13
|
|
29
|
|
52
|
|
73
|
Operating
income
|
|
216
|
|
141
|
|
366
|
|
191
|
Interest
expense
|
|
(51)
|
|
(47)
|
|
(99)
|
|
(98)
|
Equity in income of
investment in unconsolidated affiliates
|
|
2
|
|
2
|
|
4
|
|
3
|
Loss on early
extinguishment of debt
|
|
-
|
|
-
|
|
-
|
|
(35)
|
Other
income
|
|
-
|
|
2
|
|
1
|
|
2
|
Income before
income taxes
|
|
167
|
|
98
|
|
272
|
|
63
|
Income tax
expense
|
|
(43)
|
|
(44)
|
|
(79)
|
|
(24)
|
Income from
continuing operations
|
|
124
|
|
54
|
|
193
|
|
39
|
Loss from
discontinued operations, net of tax(2)
|
|
-
|
|
-
|
|
(7)
|
|
(2)
|
Net
income
|
|
124
|
|
54
|
|
186
|
|
37
|
Net income
attributable to noncontrolling interests, net of tax
|
|
(5)
|
|
(7)
|
|
(13)
|
|
(14)
|
Net income
attributable to Huntsman Corporation
|
|
$ 119
|
|
$ 47
|
|
$ 173
|
|
$ 23
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted
EBITDA(1)
|
|
$ 363
|
|
$ 304
|
|
$ 692
|
|
$ 524
|
|
|
|
|
|
|
|
|
|
Adjusted net
income(1)
|
|
$ 145
|
|
$ 94
|
|
$ 250
|
|
$ 140
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic income per
share
|
|
$ 0.49
|
|
$ 0.20
|
|
$ 0.72
|
|
$ 0.10
|
Diluted income per
share
|
|
$ 0.48
|
|
$ 0.19
|
|
$ 0.71
|
|
$ 0.10
|
Adjusted diluted
income per share(1)
|
|
$ 0.59
|
|
$ 0.39
|
|
$ 1.02
|
|
$ 0.58
|
|
|
|
|
|
|
|
|
|
Common share
information:
|
|
|
|
|
|
|
|
|
Basic shares
outstanding
|
|
241.8
|
|
239.7
|
|
241.3
|
|
239.4
|
Diluted
shares
|
|
245.7
|
|
242.2
|
|
245.0
|
|
242.0
|
Diluted shares for
adjusted diluted income per share
|
|
245.7
|
|
242.2
|
|
245.0
|
|
242.0
|
|
|
|
|
|
|
|
|
|
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,
unaudited
|
|
2014
|
|
2013
|
|
(Worse)
|
|
2014
|
|
2013
|
|
(Worse)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Segment
Revenues:
|
|
|
|
|
|
|
|
|
|
|
|
|
Polyurethanes
|
|
$1,310
|
|
$1,246
|
|
5%
|
|
$2,510
|
|
$2,428
|
|
3%
|
Performance
Products
|
|
833
|
|
777
|
|
7%
|
|
1,598
|
|
1,499
|
|
7%
|
Advanced
Materials
|
|
324
|
|
321
|
|
1%
|
|
643
|
|
657
|
|
(2)%
|
Textile
Effects
|
|
248
|
|
216
|
|
15%
|
|
472
|
|
404
|
|
17%
|
Pigments
|
|
340
|
|
334
|
|
2%
|
|
658
|
|
664
|
|
(1)%
|
Eliminations and
other
|
|
(67)
|
|
(64)
|
|
(5)%
|
|
(138)
|
|
(120)
|
|
(15)%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
|
|
$2,988
|
|
$2,830
|
|
6%
|
|
$5,743
|
|
$5,532
|
|
4%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Segment Adjusted
EBITDA(1):
|
|
|
|
|
|
|
|
|
|
|
|
Polyurethanes
|
|
$ 197
|
|
$ 174
|
|
13%
|
|
$ 364
|
|
$ 352
|
|
3%
|
Performance
Products
|
|
115
|
|
111
|
|
4%
|
|
233
|
|
165
|
|
41%
|
Advanced
Materials
|
|
53
|
|
32
|
|
66%
|
|
99
|
|
59
|
|
68%
|
Textile
Effects
|
|
22
|
|
3
|
|
633%
|
|
38
|
|
-
|
|
NM
|
Pigments
|
|
23
|
|
33
|
|
(30)%
|
|
49
|
|
42
|
|
17%
|
Corporate, LIFO and
other
|
|
(47)
|
|
(49)
|
|
4%
|
|
(91)
|
|
(94)
|
|
3%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
|
|
$ 363
|
|
$ 304
|
|
19%
|
|
$ 692
|
|
$ 524
|
|
32%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
See end of press
release for footnote explanations
|
|
NM—Not
meaningful
|
Table 3 -- Factors
Impacting Sales Revenue
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months
ended
|
|
|
June 30, 2014 vs.
2013
|
|
|
Average Selling
Price(a)
|
|
|
|
|
|
|
|
|
Local
|
|
Exchange
|
|
Sales
Mix
|
|
Sales
|
|
|
Unaudited
|
|
Currency
|
|
Rate
|
|
&
Other
|
|
Volume(b)
|
|
Total
|
|
|
|
|
|
|
|
|
|
|
|
Polyurethanes
|
|
----
|
|
1%
|
|
1%
|
|
3%
|
|
5%
|
Performance
Products
|
|
4%
|
|
1%
|
|
3%
|
|
(1)%
|
|
7%
|
Advanced
Materials
|
|
3%
|
|
1%
|
|
8%
|
|
(11)%
|
|
1%
|
Textile
Effects
|
|
19%
|
|
----
|
|
1%
|
|
(5)%
|
|
15%
|
Pigments
|
|
(4)%
|
|
3%
|
|
----
|
|
3%
|
|
2%
|
Total
Company
|
|
3%
|
|
1%
|
|
----
|
|
2%
|
|
6%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Six months
ended
|
|
|
June 30, 2014 vs.
2013
|
|
|
Average Selling
Price(a)
|
|
|
|
|
|
|
|
|
Local
|
|
Exchange
|
|
Sales
Mix
|
|
Sales
|
|
|
Unaudited
|
|
Currency
|
|
Rate
|
|
&
Other
|
|
Volume(b)
|
|
Total
|
|
|
|
|
|
|
|
|
|
|
|
Polyurethanes
|
|
(1)%
|
|
----
|
|
----
|
|
4%
|
|
3%
|
Performance
Products
|
|
4%
|
|
----
|
|
(3)%
|
|
6%
|
|
7%
|
Advanced
Materials
|
|
5%
|
|
----
|
|
7%
|
|
(14)%
|
|
(2)%
|
Textile
Effects
|
|
17%
|
|
(1)%
|
|
2%
|
|
(1)%
|
|
17%
|
Pigments
|
|
(5)%
|
|
2%
|
|
1%
|
|
1%
|
|
(1)%
|
Total
Company
|
|
1%
|
|
----
|
|
(2)%
|
|
5%
|
|
4%
|
|
|
|
|
|
|
|
|
|
|
|
(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
|
|
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
|
|
|
June
30,
|
|
June
30,
|
|
June
30,
|
|
June
30,
|
In millions, except
per share amounts, unaudited
|
|
2014
|
|
2013
|
|
2014
|
|
2013
|
|
2014
|
|
2013
|
|
2014
|
|
2013
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP(1)
|
|
$ 327
|
|
$ 249
|
|
$ (43)
|
|
$ (44)
|
|
$ 119
|
|
$ 47
|
|
$ 0.48
|
|
$ 0.19
|
Adjustments:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Acquisition expenses
and integration costs
|
|
9
|
|
2
|
|
(2)
|
|
-
|
|
7
|
|
2
|
|
0.03
|
|
0.01
|
Loss (income) from
discontinued operations, net of tax(2)
|
|
2
|
|
(2)
|
|
N/A
|
|
N/A
|
|
-
|
|
-
|
|
-
|
|
-
|
Discount amortization
on settlement financing associated with the
terminated merger
|
|
N/A
|
|
N/A
|
|
-
|
|
(1)
|
|
-
|
|
1
|
|
-
|
|
-
|
Gain on disposition
of businesses/assets
|
|
(2)
|
|
-
|
|
1
|
|
-
|
|
(1)
|
|
-
|
|
-
|
|
-
|
Certain legal
settlements and related expenses
|
|
2
|
|
6
|
|
-
|
|
(1)
|
|
2
|
|
5
|
|
0.01
|
|
0.02
|
Amortization of
pension and postretirement actuarial losses
|
|
12
|
|
18
|
|
(4)
|
|
(4)
|
|
8
|
|
14
|
|
0.03
|
|
0.06
|
Restructuring,
impairment and plant closing and transition costs
|
|
13
|
|
31
|
|
(3)
|
|
(6)
|
|
10
|
|
25
|
|
0.04
|
|
0.10
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted(1)
|
|
$ 363
|
|
$ 304
|
|
$ (51)
|
|
$ (56)
|
|
$ 145
|
|
$ 94
|
|
$ 0.59
|
|
$ 0.39
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted income tax
expense
|
|
|
|
|
|
|
|
|
|
51
|
|
56
|
|
|
|
|
Net income
attributable to noncontrolling interests, net of tax
|
|
|
|
|
|
|
|
|
|
5
|
|
7
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted pre-tax
income(1)
|
|
|
|
|
|
|
|
|
|
$ 201
|
|
$ 157
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted effective
tax rate
|
|
|
|
|
|
|
|
|
|
25%
|
|
36%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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
|
|
2014
|
|
2014
|
|
2014
|
|
2014
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP(1)
|
|
$ 261
|
|
|
|
$ (36)
|
|
|
|
$ 54
|
|
|
|
$ 0.22
|
|
|
Adjustments:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Acquisition expenses
and integration costs
|
|
8
|
|
|
|
(2)
|
|
|
|
6
|
|
|
|
0.02
|
|
|
Loss from
discontinued operations, net of tax(2)
|
|
7
|
|
|
|
N/A
|
|
|
|
7
|
|
|
|
0.03
|
|
|
Amortization of
pension and postretirement actuarial losses
|
|
13
|
|
|
|
(4)
|
|
|
|
9
|
|
|
|
0.04
|
|
|
Restructuring,
impairment and plant closing and transition costs
|
|
40
|
|
|
|
(11)
|
|
|
|
29
|
|
|
|
0.12
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted(1)
|
|
$ 329
|
|
|
|
$ (53)
|
|
|
|
$ 105
|
|
|
|
$ 0.43
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted income tax
expense
|
|
|
|
|
|
|
|
|
|
53
|
|
|
|
|
|
|
Net income
attributable to noncontrolling interests, net of tax
|
|
|
|
|
|
|
|
|
|
8
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted pre-tax
income(1)
|
|
|
|
|
|
|
|
|
|
$ 166
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted effective
tax rate
|
|
|
|
|
|
|
|
|
|
32%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income
Tax
|
|
Net
Income
|
|
Diluted
Income
|
|
|
EBITDA
|
|
(Expense)
Benefit
|
|
Attrib. to
HUN Corp.
|
|
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, unaudited
|
|
2014
|
|
2013
|
|
2014
|
|
2013
|
|
2014
|
|
2013
|
|
2014
|
|
2013
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP(1)
|
|
$ 588
|
|
$ 361
|
|
$ (79)
|
|
$ (24)
|
|
$ 173
|
|
$ 23
|
|
$ 0.71
|
|
$ 0.10
|
Adjustments:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Acquisition expenses
and integration costs
|
|
17
|
|
5
|
|
(4)
|
|
(1)
|
|
13
|
|
4
|
|
0.05
|
|
0.02
|
Loss from
discontinued operations, net of tax(2)
|
|
9
|
|
1
|
|
N/A
|
|
N/A
|
|
7
|
|
2
|
|
0.03
|
|
0.01
|
Discount amortization
on settlement financing associated with the
terminated merger
|
|
N/A
|
|
N/A
|
|
-
|
|
(2)
|
|
-
|
|
3
|
|
-
|
|
0.01
|
Gain on disposition
of businesses/assets
|
|
(2)
|
|
-
|
|
1
|
|
-
|
|
(1)
|
|
-
|
|
-
|
|
-
|
Loss on early
extinguishment of debt
|
|
-
|
|
35
|
|
-
|
|
(13)
|
|
-
|
|
22
|
|
-
|
|
0.09
|
Certain legal
settlements and related expenses
|
|
2
|
|
8
|
|
-
|
|
(2)
|
|
2
|
|
6
|
|
0.01
|
|
0.02
|
Amortization of
pension and postretirement actuarial losses
|
|
25
|
|
37
|
|
(8)
|
|
(11)
|
|
17
|
|
26
|
|
0.07
|
|
0.11
|
Restructuring,
impairment and plant closing and transition costs
|
|
53
|
|
77
|
|
(14)
|
|
(23)
|
|
39
|
|
54
|
|
0.16
|
|
0.22
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted(1)
|
|
$ 692
|
|
$ 524
|
|
$ (104)
|
|
$ (76)
|
|
$ 250
|
|
$ 140
|
|
$ 1.02
|
|
$ 0.58
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted income tax
expense
|
|
|
|
|
|
|
|
|
|
104
|
|
76
|
|
|
|
|
Net income
attributable to noncontrolling interests, net of tax
|
|
|
|
|
|
|
|
|
|
13
|
|
14
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted pre-tax
income(1)
|
|
|
|
|
|
|
|
|
|
$ 367
|
|
$ 230
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted effective
tax rate
|
|
|
|
|
|
|
|
|
|
28%
|
|
33%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
See end of press
release for footnote explanations
|
|
|
|
|
|
|
|
|
Table 5 --
Reconciliation of Net Income to EBITDA
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months
ended
|
|
Six months
ended
|
|
|
June
30,
|
|
March
31,
|
|
June
30,
|
In millions,
unaudited
|
|
2014
|
|
2013
|
|
2014
|
|
2014
|
|
2013
|
|
|
|
|
|
|
|
|
|
|
|
Net income
attributable to Huntsman Corporation
|
|
$119
|
|
$ 47
|
|
$ 54
|
|
$173
|
|
$ 23
|
Interest
expense
|
|
51
|
|
47
|
|
48
|
|
99
|
|
98
|
Income tax expense
from continuing operations
|
|
43
|
|
44
|
|
36
|
|
79
|
|
24
|
Income tax (benefit)
expense from discontinued operations(2)
|
(2)
|
|
2
|
|
-
|
|
(2)
|
|
-
|
Depreciation and
amortization
|
|
116
|
|
109
|
|
123
|
|
239
|
|
216
|
|
|
|
|
|
|
|
|
|
|
|
EBITDA(1)
|
|
$327
|
|
$249
|
|
$ 261
|
|
$588
|
|
$361
|
|
|
|
|
|
|
|
|
|
|
|
See end of press
release for footnote explanations
|
|
|
Table 6 --
Selected Balance Sheet Items
|
|
|
|
|
|
|
|
|
|
June
30,
|
|
March
31,
|
|
December
31,
|
In
millions
|
|
2014
|
|
2014
|
|
2013
|
|
|
(unaudited)
|
|
(unaudited)
|
|
|
|
|
|
|
|
|
|
Cash
|
|
$ 412
|
|
$ 286
|
|
$
529
|
Accounts and notes
receivable, net
|
|
1,870
|
|
1,724
|
|
1,575
|
Inventories
|
|
1,847
|
|
1,911
|
|
1,741
|
Other current
assets
|
|
319
|
|
307
|
|
314
|
Property, plant and
equipment, net
|
|
3,776
|
|
3,794
|
|
3,824
|
Other
assets
|
|
1,218
|
|
1,205
|
|
1,205
|
|
|
|
|
|
|
|
Total
assets
|
|
$ 9,442
|
|
$ 9,227
|
|
$
9,188
|
|
|
|
|
|
|
|
Accounts
payable
|
|
$ 1,162
|
|
$ 1,185
|
|
$
1,113
|
Other current
liabilities
|
|
725
|
|
760
|
|
769
|
Current portion of
debt
|
|
257
|
|
270
|
|
277
|
Long-term
debt
|
|
3,809
|
|
3,621
|
|
3,633
|
Other
liabilities
|
|
1,181
|
|
1,214
|
|
1,267
|
Total
equity
|
|
2,308
|
|
2,177
|
|
2,129
|
|
|
|
|
|
|
|
Total liabilities
and equity
|
|
$ 9,442
|
|
$ 9,227
|
|
$
9,188
|
|
|
|
|
|
|
|
Table 7 --
Outstanding Debt
|
|
|
|
|
|
|
|
|
|
June
30,
|
|
March
31,
|
|
December
31,
|
In
millions
|
|
2014
|
|
2014
|
|
2013
|
|
|
(unaudited)
|
|
(unaudited)
|
|
|
|
|
|
|
|
|
|
Debt:
|
|
|
|
|
|
|
Senior credit
facilities
|
|
$ 1,339
|
|
$ 1,338
|
|
$
1,351
|
Accounts receivable
programs
|
|
245
|
|
247
|
|
248
|
Senior
notes
|
|
1,258
|
|
1,060
|
|
1,061
|
Senior subordinated
notes
|
|
890
|
|
891
|
|
891
|
Variable interest
entities
|
|
231
|
|
238
|
|
247
|
Other debt
|
|
103
|
|
117
|
|
112
|
|
|
|
|
|
|
|
Total debt -
excluding affiliates
|
|
4,066
|
|
3,891
|
|
3,910
|
|
|
|
|
|
|
|
Total cash
|
|
412
|
|
286
|
|
529
|
|
|
|
|
|
|
|
Net debt-
excluding affiliates
|
|
$ 3,654
|
|
$ 3,605
|
|
$
3,381
|
Table 8 --
Summarized Statement of Cash Flows
|
|
|
|
|
|
|
|
|
|
Three months
ended
|
|
Six months
ended
|
|
|
June
30,
|
|
June
30,
|
In millions,
unaudited
|
|
2014
|
|
2014
|
|
2013
|
|
|
|
|
|
|
|
Total cash at
beginning of period(a)
|
|
$
286
|
|
$ 529
|
|
$ 396
|
|
|
|
|
|
|
|
Net cash provided by
(used in) operating activities
|
|
50
|
|
(17)
|
|
(2)
|
Net cash used in
investing activities
|
|
(98)
|
|
(202)
|
|
(182)
|
Net cash provided by
(used in) financing activities
|
|
174
|
|
103
|
|
(27)
|
Effect of exchange
rate changes on cash
|
|
-
|
|
(1)
|
|
(4)
|
|
|
|
|
|
|
|
Total cash at end
of period(a)
|
|
$
412
|
|
$ 412
|
|
$ 181
|
|
|
|
|
|
|
|
Supplemental cash
flow information:
|
|
|
|
|
|
|
Cash paid for
interest
|
|
$
(37)
|
|
$ (91)
|
|
$ (95)
|
Cash paid for income
taxes
|
|
(97)
|
|
(143)
|
|
(46)
|
Cash paid for capital
expenditures
|
|
(107)
|
|
(214)
|
|
(181)
|
Depreciation and
amortization
|
|
116
|
|
239
|
|
216
|
|
|
|
|
|
|
|
Changes in primary
working capital:
|
|
|
|
|
|
|
Accounts and notes
receivable
|
|
(151)
|
|
(300)
|
|
(186)
|
Inventories
|
|
63
|
|
(109)
|
|
79
|
Accounts
payable
|
|
(13)
|
|
94
|
|
(60)
|
|
|
|
|
|
|
|
Total cash used in
primary working capital
|
|
$
(101)
|
|
$(315)
|
|
$(167)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(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 5 above.
|
|
|
|
Adjusted EBITDA is
computed by eliminating the following from EBITDA:
acquisition expenses and integration costs; loss (gain) on initial
consolidation of subsidiaries; EBITDA from discontinued operations;
loss (gain) on disposition of businesses/assets; loss on early
extinguishment of debt; extraordinary loss (gain) on the
acquisition of a business; certain legal settlements and related
expenses; amortization of pension and postretirement actuarial
losses (gains); and restructuring, impairment, plant closing and
transition costs (credits). The reconciliation of adjusted
EBITDA to EBITDA is set forth in Table 4 above.
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Adjusted net income
(loss) is computed by eliminating the after tax impact of the
following items from net income (loss) attributable to Huntsman
Corporation: acquisition expenses and integration costs; loss
(gain) on initial consolidation of subsidiaries; loss (income) from
discontinued operations; discount amortization on settlement
financing associated with the terminated merger; loss (gain) on
disposition of businesses/assets; loss on early extinguishment of
debt; extraordinary loss (gain) on the acquisition of a business;
certain legal settlements and related expenses; amortization of
pension and postretirement actuarial losses (gains); and
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.
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(2)
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During the first
quarter 2010 we closed our Australian styrenics operations; results
from this business are treated as discontinued
operations.
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About Huntsman:
Huntsman Corporation is a publicly traded global manufacturer
and marketer of differentiated chemicals with 2013 revenues of over
$11 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 80 manufacturing and R&D
facilities in 30 countries and employ approximately 12,000
associates within our 5 distinct business divisions. For more
information about Huntsman, please visit the company's website
at www.huntsman.com.
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