THE WOODLANDS, Texas,
Oct. 27, 2014 /PRNewswire/ --
Third Quarter 2014 Highlights
- Adjusted EBITDA was $356 million
compared to $376 million in the prior
year period. Third quarter 2014 EBITDA was impacted by
approximately $30 million resulting
from an unplanned manufacturing disruption of PO/MTBE.
- Adjusted diluted income per share was $0.60 compared to $0.54 in the prior year period.
- Net income attributable to Huntsman Corporation was
$188 million compared to $64 million in the prior year period. Third
quarter 2014 was impacted by $94
million of tax benefit resulting from foreign tax credit
elections.
|
|
Three months
ended
|
|
Nine months
ended
|
|
|
September
30,
|
|
June
30,
|
|
September
30,
|
In millions, except
per share amounts, unaudited
|
|
2014
|
|
2013
|
|
2014
|
|
2014
|
|
2013
|
|
|
|
|
|
|
|
|
|
|
|
Revenues
|
|
$ 2,884
|
|
$ 2,842
|
|
$ 2,988
|
|
$ 8,627
|
|
$ 8,374
|
|
|
|
|
|
|
|
|
|
|
|
Net income
attributable to Huntsman Corporation
|
|
$ 188
|
|
$ 64
|
|
$ 119
|
|
$ 361
|
|
$ 87
|
Adjusted net
income(1)
|
|
$ 147
|
|
$ 132
|
|
$ 145
|
|
$ 397
|
|
$ 272
|
|
|
|
|
|
|
|
|
|
|
|
Diluted income per
share
|
|
$ 0.76
|
|
$ 0.26
|
|
$ 0.48
|
|
$ 1.47
|
|
$ 0.36
|
Adjusted diluted
income per share(1)
|
|
$ 0.60
|
|
$ 0.54
|
|
$ 0.59
|
|
$ 1.62
|
|
$ 1.12
|
|
|
|
|
|
|
|
|
|
|
|
EBITDA(1)
|
|
$ 293
|
|
$ 303
|
|
$ 327
|
|
$ 881
|
|
$ 664
|
Adjusted
EBITDA(1)
|
|
$ 356
|
|
$ 376
|
|
$ 363
|
|
$ 1,048
|
|
$ 900
|
|
|
|
|
|
|
|
|
|
|
|
See end of press
release for footnote explanations
|
|
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|
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|
Huntsman Corporation (NYSE: HUN) today reported third quarter
2014 results with revenues of $2,884
million and adjusted EBITDA of $356
million.
Peter R. Huntsman, our President
and CEO, commented:
"We continue to see growing demand for key products such as
MDI polyurethanes, amines, maleic, aerospace composites and
environmentally friendly textile dyes and chemicals. Third
quarter EBITDA from these products increased more than $30 million compared to the prior year. The
strength in our earnings is underpinned by broad earnings growth
from multiple products across our divisions.
Recently, we successfully completed the acquisition of
Rockwood's performance additives
and specialty titanium dioxide businesses. We have plans to
deliver $130 million of annual
synergies by the middle of 2016 at which point we believe this
acquisition will yield approximately $0.70 of earnings per share to
shareholders."
Segment Analysis for 3Q14 Compared to 3Q13
Polyurethanes
The increase in revenues in our Polyurethanes division for the
three months ended September 30, 2014
compared to the same period in 2013 was primarily due to improved
MDI sales partially offset by lower PO/MTBE sales volumes. MDI
average selling prices increased in the Americas and European
regions, partially offset by lower component pricing in
China. PO/MTBE average selling prices were essentially
unchanged. MDI sales volumes increased 5% primarily as a result of
improved demand in the Americas and Asian regions and across most
major markets. PO/MTBE sales volumes decreased primarily as a
result of an unplanned manufacturing disruption at our Port Neches, Texas facility in the third
quarter of 2014 which resulted in lower EBITDA of approximately
$30 million. The decrease in adjusted
EBITDA was due to lower PO/MTBE earnings, partially offset by
higher MDI earnings.
Performance Products
The decrease in revenues in our Performance Products division
for the three months ended September 30,
2014 compared to the same period in 2013 was due to lower
sales volumes partially offset by higher average selling
prices. Sales volumes decreased primarily due to the sale of
our European surfactants business in the second quarter of 2014
partially offset by increased sales volumes in amines and maleic
anhydride. Average selling prices increased in response to
higher raw materials costs and continued strong market conditions
for amines, maleic anhydride and specialty surfactants. The
increase in adjusted EBITDA was primarily due to higher
contribution margins.
Advanced Materials
Revenues in our Advanced Materials division for the three months
ended September 30, 2014 compared to
the same period in 2013 were essentially unchanged. Average selling
prices increased in all regions and across most markets primarily
due to certain price increase initiatives and our focus on higher
value markets. Sales volumes decreased primarily due to our
restructuring efforts. During the fourth quarter of 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 improved sales mix
as a result of our restructuring efforts.
Textile Effects
The increase in revenues in our Textile Effects division for the
three months ended September 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 and improved sales mix. 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 as a result of our restructuring efforts
partially offset by higher selling, general and administrative
costs.
Pigments
The increase in revenues in our Pigments division for the three
months ended September 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 the Asia-Pacific region. Average selling prices
decreased primarily as a result of high industry inventory levels.
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 decreased by
$5 million to a loss of $49 million for the three months ended
September 30, 2014 compared to a loss
of $44 million for the same period in
2013. The decrease was primarily attributable to $6 million of unallocated foreign currency
exchange losses in 2014 primarily attributable to the decline in
value of the Euro versus the U.S. dollar.
Liquidity, Capital Resources and Outstanding Debt
As of September 30, 2014, we had
$1,365 million of combined cash and
unused borrowing capacity compared to $1,048
million at December 31,
2013.
On October 1, 2014, we
successfully completed the acquisition of the Performance Additives
and Titanium Dioxide businesses of Rockwood for $1.04
billion in cash and assumed certain unfunded European
pension liabilities. The acquisition was funded by a new
$1.2 billion term loan due 2021.
In August 2014, we increased the
capacity of our existing revolving credit facility by $200 million to $600 million. In October 2014, our revolving credit facility was
increased by an additional $25
million.
Total capital expenditures for the three months ended
September 30, 2014 were $137 million. We expect to spend
approximately $550 million on capital
expenditures in 2014, net of reimbursements and including
approximately $50 million in the
fourth quarter for the newly acquired Rockwood businesses and the Augusta, Georgia color pigments facility which
is under construction.
During the three months ended September
30, 2014, assets from our 1999 acquisition of Imperial
Chemical Industries became fully depreciated. Including the
impact from the newly acquired Rockwood businesses we expect our fourth
quarter depreciation to be approximately $105 million.
Income Taxes
During the three months ended September
30, 2014 we recorded an income tax benefit of $40 million and paid $13
million in cash for income taxes. Our adjusted effective
income tax rate for the three months ended September 30, 2014 was 29%.
During the third quarter of 2014 as a result of extensive
planning efforts, we made elections on our U.S. tax returns from
2008 through 2013 which allowed us to utilize substantially all of
our U.S. foreign tax credits. As a result of utilizing these assets
that had been subject to a valuation allowance, we recognized a
one-time income tax benefit of $94
million.
We expect our full year 2014 adjusted effective tax rate to be
approximately 30% including the impact of the Rockwood acquisition.
Earnings Conference Call Information
We will hold a conference call to discuss our third quarter 2014
financial results on Monday, October 27,
2014 at 10:00 a.m. ET.
Call-in numbers for the conference call:
U.S.
participants (888)
713 - 4214
International
participants
(617) 213 - 4866
Passcode 19019076
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=PKYANFAXN
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, 2014 and ending
November 3, 2014.
Call-in numbers for the replay:
U.S.
participants
(888) 286 - 8010
International
participants
(617) 801 - 6888
Replay
code 68570447
Table 1 – Results
of Operations
|
|
|
|
Three months
ended
|
|
Nine months
ended
|
|
|
September
30,
|
|
September
30,
|
In millions, except
per share amounts, unaudited
|
|
2014
|
|
2013
|
|
2014
|
|
2013
|
|
|
|
|
|
|
|
|
|
Revenues
|
|
$ 2,884
|
|
$ 2,842
|
|
$ 8,627
|
|
$ 8,374
|
Cost of goods
sold
|
|
2,369
|
|
2,335
|
|
7,157
|
|
7,067
|
Gross
profit
|
|
515
|
|
507
|
|
1,470
|
|
1,307
|
Operating
expenses
|
|
274
|
|
272
|
|
811
|
|
808
|
Restructuring,
impairment and plant closing costs
|
|
39
|
|
37
|
|
91
|
|
110
|
Operating
income
|
|
202
|
|
198
|
|
568
|
|
389
|
Interest
expense
|
|
(49)
|
|
(48)
|
|
(148)
|
|
(146)
|
Equity in income of
investment in unconsolidated affiliates
|
|
2
|
|
3
|
|
6
|
|
6
|
Loss on early
extinguishment of debt
|
|
-
|
|
-
|
|
-
|
|
(35)
|
Other (expense)
income
|
|
(1)
|
|
-
|
|
-
|
|
2
|
Income before
income taxes
|
|
154
|
|
153
|
|
426
|
|
216
|
Income tax benefit
(expense)
|
|
40
|
|
(81)
|
|
(39)
|
|
(105)
|
Income from
continuing operations
|
|
194
|
|
72
|
|
387
|
|
111
|
Loss from
discontinued operations, net of tax(2)
|
|
-
|
|
(2)
|
|
(7)
|
|
(4)
|
Net
income
|
|
194
|
|
70
|
|
380
|
|
107
|
Net income
attributable to noncontrolling interests, net of tax
|
|
(6)
|
|
(6)
|
|
(19)
|
|
(20)
|
Net income
attributable to Huntsman Corporation
|
|
$ 188
|
|
$ 64
|
|
$ 361
|
|
$ 87
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted
EBITDA(1)
|
|
$ 356
|
|
$ 376
|
|
$ 1,048
|
|
$ 900
|
|
|
|
|
|
|
|
|
|
Adjusted net
income(1)
|
|
$ 147
|
|
$ 132
|
|
$ 397
|
|
$ 272
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic income per
share
|
|
$ 0.77
|
|
$ 0.27
|
|
$ 1.49
|
|
$ 0.36
|
Diluted income per
share
|
|
$ 0.76
|
|
$ 0.26
|
|
$ 1.47
|
|
$ 0.36
|
Adjusted diluted
income per share(1)
|
|
$ 0.60
|
|
$ 0.54
|
|
$ 1.62
|
|
$ 1.12
|
|
|
|
|
|
|
|
|
|
Common share
information:
|
|
|
|
|
|
|
|
|
Basic shares
outstanding
|
|
242.6
|
|
239.8
|
|
241.8
|
|
239.5
|
Diluted
shares
|
|
246.7
|
|
242.5
|
|
245.7
|
|
242.1
|
Diluted shares for
adjusted diluted income per share
|
|
246.7
|
|
242.5
|
|
245.7
|
|
242.1
|
|
|
|
|
|
|
|
|
|
See end of press
release for footnote explanations
|
|
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|
|
|
|
|
|
Table 2 – Results
of Operations by Segment
|
|
|
|
Three months
ended
|
|
|
Nine months
ended
|
|
|
|
|
September
30,
|
|
Better
/
|
|
September
30,
|
|
Better
/
|
In millions,
unaudited
|
|
2014
|
|
2013
|
|
(Worse)
|
|
2014
|
|
2013
|
|
(Worse)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Segment
Revenues:
|
|
|
|
|
|
|
|
|
|
|
|
|
Polyurethanes
|
|
$ 1,321
|
|
$ 1,306
|
|
1%
|
|
$ 3,831
|
|
$ 3,734
|
|
3%
|
Performance
Products
|
|
762
|
|
779
|
|
(2)%
|
|
2,360
|
|
2,278
|
|
4%
|
Advanced
Materials
|
|
310
|
|
309
|
|
----
|
|
953
|
|
966
|
|
(1)%
|
Textile
Effects
|
|
221
|
|
198
|
|
12%
|
|
693
|
|
602
|
|
15%
|
Pigments
|
|
318
|
|
310
|
|
3%
|
|
976
|
|
974
|
|
----
|
Eliminations and
other
|
|
(48)
|
|
(60)
|
|
20%
|
|
(186)
|
|
(180)
|
|
(3)%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
|
|
$ 2,884
|
|
$ 2,842
|
|
1%
|
|
$ 8,627
|
|
$ 8,374
|
|
3%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Segment Adjusted
EBITDA(1):
|
|
|
|
|
|
|
|
|
|
|
|
Polyurethanes
|
|
$ 187
|
|
$ 215
|
|
(13)%
|
|
$ 551
|
|
$ 567
|
|
(3)%
|
Performance
Products
|
|
129
|
|
122
|
|
6%
|
|
362
|
|
287
|
|
26%
|
Advanced
Materials
|
|
57
|
|
39
|
|
46%
|
|
156
|
|
98
|
|
59%
|
Textile
Effects
|
|
14
|
|
8
|
|
75%
|
|
52
|
|
8
|
|
550%
|
Pigments
|
|
18
|
|
36
|
|
(50)%
|
|
67
|
|
78
|
|
(14)%
|
Corporate, LIFO and
other
|
|
(49)
|
|
(44)
|
|
(11)%
|
|
(140)
|
|
(138)
|
|
(1)%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
|
|
$ 356
|
|
$ 376
|
|
(5)%
|
|
$ 1,048
|
|
$ 900
|
|
16%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
See end of press
release for footnote explanations
|
|
|
|
|
|
|
|
|
|
|
Table 3 – Factors
Impacting Sales Revenues
|
|
|
|
Three months
ended
|
|
|
September 30, 2014
vs. 2013
|
|
|
Average Selling
Price(a)
|
|
|
|
|
|
|
|
|
Local
|
|
Exchange
|
|
Sales
Mix
|
|
Sales
|
|
|
Unaudited
|
|
Currency
|
|
Rate
|
|
&
Other
|
|
Volume(b)
|
|
Total
|
|
|
|
|
|
|
|
|
|
|
|
Polyurethanes
|
|
----
|
|
----
|
|
6%
|
|
(5)%
|
|
1%
|
Performance
Products
|
|
5%
|
|
----
|
|
1%
|
|
(8)%
|
|
(2)%
|
Advanced
Materials
|
|
4%
|
|
1%
|
|
3%
|
|
(8)%
|
|
----
|
Textile
Effects
|
|
17%
|
|
1%
|
|
3%
|
|
(9)%
|
|
12%
|
Pigments
|
|
(5)%
|
|
1%
|
|
1%
|
|
6%
|
|
3%
|
Total
Company
|
|
3%
|
|
1%
|
|
----
|
|
(3)%
|
|
1%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nine months
ended
|
|
|
September 30, 2014
vs. 2013
|
|
|
Average Selling
Price(a)
|
|
|
|
|
|
|
|
|
Local
|
|
Exchange
|
|
Sales
Mix
|
|
Sales
|
|
|
Unaudited
|
|
Currency
|
|
Rate
|
|
&
Other
|
|
Volume(b)
|
|
Total
|
|
|
|
|
|
|
|
|
|
|
|
Polyurethanes
|
|
(1)%
|
|
----
|
|
3%
|
|
1%
|
|
3%
|
Performance
Products
|
|
4%
|
|
----
|
|
(1)%
|
|
1%
|
|
4%
|
Advanced
Materials
|
|
6%
|
|
----
|
|
5%
|
|
(12)%
|
|
(1)%
|
Textile
Effects
|
|
17%
|
|
(1)%
|
|
2%
|
|
(3)%
|
|
15%
|
Pigments
|
|
(5)%
|
|
2%
|
|
----
|
|
3%
|
|
----
|
Total
Company
|
|
2%
|
|
----
|
|
(1)%
|
|
2%
|
|
3%
|
|
|
|
|
|
|
|
|
|
|
|
(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
|
|
Benefit
(Expense)
|
|
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
|
|
2014
|
|
2013
|
|
2014
|
|
2013
|
|
2014
|
|
2013
|
|
2014
|
|
2013
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP(1)
|
|
$ 293
|
|
$ 303
|
|
$ 40
|
|
$ (81)
|
|
$ 188
|
|
$ 64
|
|
$ 0.76
|
|
$ 0.26
|
|
Adjustments:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Acquisition expenses
and integration costs
|
|
10
|
|
9
|
|
(2)
|
|
(1)
|
|
8
|
|
8
|
|
0.03
|
|
0.03
|
|
Impact of certain
foreign tax credit elections
|
|
N/A
|
|
N/A
|
|
(94)
|
|
-
|
|
(94)
|
|
-
|
|
(0.38)
|
|
-
|
|
Loss from
discontinued operations, net of tax(2)
|
|
-
|
|
2
|
|
N/A
|
|
N/A
|
|
-
|
|
2
|
|
-
|
|
0.01
|
|
Discount amortization
on settlement financing associated with the
terminated merger
|
|
N/A
|
|
N/A
|
|
-
|
|
-
|
|
-
|
|
2
|
|
-
|
|
0.01
|
|
Certain legal
settlements and related expenses
|
|
1
|
|
-
|
|
-
|
|
-
|
|
1
|
|
-
|
|
-
|
|
-
|
|
Amortization of
pension and postretirement actuarial losses
|
|
12
|
|
19
|
|
(2)
|
|
(2)
|
|
10
|
|
17
|
|
0.04
|
|
0.07
|
|
Restructuring,
impairment and plant closing and transition costs
|
|
40
|
|
43
|
|
(6)
|
|
(4)
|
|
34
|
|
39
|
|
0.14
|
|
0.16
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted(1)
|
|
$ 356
|
|
$ 376
|
|
$ (64)
|
|
$ (88)
|
|
$ 147
|
|
$ 132
|
|
$ 0.60
|
|
$ 0.54
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted income tax
(benefit) expense
|
|
|
|
|
|
|
|
|
|
64
|
|
88
|
|
|
|
|
|
Net income
attributable to noncontrolling interests, net of tax
|
|
|
|
|
|
|
|
|
|
6
|
|
6
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted pre-tax
income(1)
|
|
|
|
|
|
|
|
|
|
$ 217
|
|
$ 226
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted effective
tax rate
|
|
|
|
|
|
|
|
|
|
29%
|
|
39%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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
|
|
2014
|
|
2014
|
|
2014
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP(1)
|
|
$ 327
|
|
|
|
$ (43)
|
|
|
|
$ 119
|
|
|
|
$ 0.48
|
|
|
|
Adjustments:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Acquisition expenses
and integration costs
|
|
9
|
|
|
|
(2)
|
|
|
|
7
|
|
|
|
0.03
|
|
|
|
Loss from
discontinued operations, net of tax(2)
|
|
2
|
|
|
|
N/A
|
|
|
|
-
|
|
|
|
-
|
|
|
|
Gain on disposition
of businesses/assets
|
|
(2)
|
|
|
|
1
|
|
|
|
(1)
|
|
|
|
-
|
|
|
|
Certain legal
settlements and related expenses
|
|
2
|
|
|
|
-
|
|
|
|
2
|
|
|
|
0.01
|
|
|
|
Amortization of
pension and postretirement actuarial losses
|
|
12
|
|
|
|
(4)
|
|
|
|
8
|
|
|
|
0.03
|
|
|
|
Restructuring,
impairment and plant closing and transition costs
|
|
13
|
|
|
|
(3)
|
|
|
|
10
|
|
|
|
0.04
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted(1)
|
|
$ 363
|
|
|
|
$ (51)
|
|
|
|
$ 145
|
|
|
|
$ 0.59
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted income tax
expense
|
|
|
|
|
|
|
|
|
|
51
|
|
|
|
|
|
|
|
Net income
attributable to noncontrolling interests, net of tax
|
|
|
|
|
|
|
|
|
|
5
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted pre-tax
income(1)
|
|
|
|
|
|
|
|
|
|
$ 201
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted effective
tax rate
|
|
|
|
|
|
|
|
|
|
25%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income
Tax
|
|
Net
Income
|
|
Diluted
Income
|
|
|
|
EBITDA
|
|
(Expense)
Benefit
|
|
Attrib. to
HUN Corp.
|
|
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, unaudited
|
|
2014
|
|
2013
|
|
2014
|
|
2013
|
|
2014
|
|
2013
|
|
2014
|
|
2013
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP(1)
|
|
$ 881
|
|
$ 664
|
|
$ (39)
|
|
$ (105)
|
|
$ 361
|
|
$ 87
|
|
$ 1.47
|
|
$ 0.36
|
|
Adjustments:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Acquisition expenses
and integration costs
|
|
27
|
|
14
|
|
(6)
|
|
(2)
|
|
21
|
|
12
|
|
0.09
|
|
0.05
|
|
Impact of certain
foreign tax credit elections
|
|
N/A
|
|
N/A
|
|
(94)
|
|
-
|
|
(94)
|
|
-
|
|
(0.38)
|
|
-
|
|
Loss from
discontinued operations, net of tax(2)
|
|
9
|
|
3
|
|
N/A
|
|
N/A
|
|
7
|
|
4
|
|
0.03
|
|
0.02
|
|
Discount amortization
on settlement financing associated with the
terminated merger
|
|
N/A
|
|
N/A
|
|
-
|
|
(2)
|
|
-
|
|
5
|
|
-
|
|
0.02
|
|
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
|
|
3
|
|
8
|
|
-
|
|
(2)
|
|
3
|
|
6
|
|
0.01
|
|
0.02
|
|
Amortization of
pension and postretirement actuarial losses
|
|
37
|
|
56
|
|
(10)
|
|
(13)
|
|
27
|
|
43
|
|
0.11
|
|
0.18
|
|
Restructuring,
impairment and plant closing and transition costs
|
|
93
|
|
120
|
|
(20)
|
|
(27)
|
|
73
|
|
93
|
|
0.30
|
|
0.38
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted(1)
|
|
$ 1,048
|
|
$ 900
|
|
$ (168)
|
|
$ (164)
|
|
$ 397
|
|
$ 272
|
|
$ 1.62
|
|
$ 1.12
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted income tax
expense
|
|
|
|
|
|
|
|
|
|
168
|
|
164
|
|
|
|
|
|
Net income
attributable to noncontrolling interests, net of tax
|
|
|
|
|
|
|
|
|
|
19
|
|
20
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted pre-tax
income(1)
|
|
|
|
|
|
|
|
|
|
$ 584
|
|
$ 456
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted effective
tax rate
|
|
|
|
|
|
|
|
|
|
29%
|
|
36%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
See end of press
release for footnote explanations
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Table 5 –
Reconciliation of Net Income to EBITDA
|
|
|
Three months
ended
|
|
Nine months
ended
|
|
|
September
30,
|
|
June
30,
|
|
September
30,
|
In millions,
unaudited
|
|
2014
|
|
2013
|
|
2014
|
|
2014
|
|
2013
|
|
|
|
|
|
|
|
|
|
|
|
Net income
attributable to Huntsman Corporation
|
|
$ 188
|
|
$ 64
|
|
$ 119
|
|
$ 361
|
|
$ 87
|
Interest
expense
|
|
49
|
|
48
|
|
51
|
|
148
|
|
146
|
Income tax (benefit)
expense from continuing operations
|
|
(40)
|
|
81
|
|
43
|
|
39
|
|
105
|
Income tax benefit
from discontinued operations(2)
|
|
-
|
|
-
|
|
(2)
|
|
(2)
|
|
-
|
Depreciation and
amortization
|
|
96
|
|
110
|
|
116
|
|
335
|
|
326
|
|
|
|
|
|
|
|
|
|
|
|
EBITDA(1)
|
|
$ 293
|
|
$ 303
|
|
$ 327
|
|
$ 881
|
|
$ 664
|
|
|
|
|
|
|
|
|
|
|
|
See end of press
release for footnote explanations
|
|
|
|
|
|
|
|
|
|
|
Table 6 – Selected
Balance Sheet Items
|
|
|
|
September
30,
|
|
June
30,
|
|
December
31,
|
In
millions
|
|
2014
|
|
2014
|
|
2013
|
|
|
(unaudited)
|
|
(unaudited)
|
|
|
|
|
|
|
|
|
|
Cash
|
|
$
592
|
|
$
412
|
|
$
529
|
Accounts and notes
receivable, net
|
|
1,676
|
|
1,870
|
|
1,575
|
Inventories
|
|
1,788
|
|
1,847
|
|
1,741
|
Other current
assets
|
|
438
|
|
319
|
|
314
|
Property, plant and
equipment, net
|
|
3,703
|
|
3,776
|
|
3,824
|
Other
assets
|
|
1,212
|
|
1,218
|
|
1,205
|
|
|
|
|
|
|
|
Total
assets
|
|
$ 9,409
|
|
$ 9,442
|
|
$ 9,188
|
|
|
|
|
|
|
|
Accounts
payable
|
|
$ 1,176
|
|
$ 1,162
|
|
$ 1,113
|
Other current
liabilities
|
|
672
|
|
725
|
|
769
|
Current portion of
debt
|
|
274
|
|
257
|
|
277
|
Long-term
debt
|
|
3,752
|
|
3,809
|
|
3,633
|
Other
liabilities
|
|
1,139
|
|
1,181
|
|
1,267
|
Total
equity
|
|
2,396
|
|
2,308
|
|
2,129
|
|
|
|
|
|
|
|
Total liabilities
and equity
|
|
$ 9,409
|
|
$ 9,442
|
|
$ 9,188
|
Table 7 –
Outstanding Debt
|
|
|
|
September
30,
|
|
June
30,
|
|
December
31,
|
In
millions
|
|
2014
|
|
2014
|
|
2013
|
|
|
(unaudited)
|
|
(unaudited)
|
|
|
|
|
|
|
|
|
|
Debt:
|
|
|
|
|
|
|
Senior credit
facilities
|
|
$ 1,339
|
|
$ 1,339
|
|
$ 1,351
|
Accounts receivable
programs
|
|
235
|
|
245
|
|
248
|
Senior
notes
|
|
1,219
|
|
1,258
|
|
1,061
|
Senior subordinated
notes
|
|
890
|
|
890
|
|
891
|
Variable interest
entities
|
|
220
|
|
231
|
|
247
|
Other debt
|
|
123
|
|
103
|
|
112
|
|
|
|
|
|
|
|
Total debt -
excluding affiliates
|
|
4,026
|
|
4,066
|
|
3,910
|
|
|
|
|
|
|
|
Total cash
|
|
592
|
|
412
|
|
529
|
|
|
|
|
|
|
|
Net debt-
excluding affiliates
|
|
$ 3,434
|
|
$ 3,654
|
|
$ 3,381
|
|
|
|
|
|
|
|
Table 8 –
Summarized Statement of Cash Flows
|
|
|
|
Three months
ended
|
|
Nine months
ended
|
|
|
September
30,
|
|
September
30,
|
In millions,
unaudited
|
|
2014
|
|
2014
|
|
2013
|
|
|
|
|
|
|
|
Total cash at
beginning of period(a)
|
|
$
412
|
|
$ 529
|
|
$ 396
|
|
|
|
|
|
|
|
Net cash provided by
operating activities
|
|
360
|
|
343
|
|
388
|
Net cash used in
investing activities
|
|
(135)
|
|
(337)
|
|
(388)
|
Net cash (used in)
provided by financing activities
|
|
(41)
|
|
62
|
|
12
|
Effect of exchange
rate changes on cash
|
|
(5)
|
|
(6)
|
|
(2)
|
Change in restricted
cash
|
|
1
|
|
1
|
|
-
|
|
|
|
|
|
|
|
Total cash at end
of period(a)
|
|
$
592
|
|
$ 592
|
|
$ 406
|
|
|
|
|
|
|
|
Supplemental cash
flow information:
|
|
|
|
|
|
|
Cash paid for
interest
|
|
$
(54)
|
|
$ (145)
|
|
$ (152)
|
Cash paid for income
taxes
|
|
(13)
|
|
(156)
|
|
(60)
|
Cash paid for capital
expenditures
|
|
(137)
|
|
(351)
|
|
(295)
|
Depreciation and
amortization
|
|
96
|
|
335
|
|
326
|
|
|
|
|
|
|
|
Changes in primary
working capital:
|
|
|
|
|
|
|
Accounts and notes
receivable
|
|
139
|
|
(161)
|
|
(146)
|
Inventories
|
|
(3)
|
|
(112)
|
|
118
|
Accounts
payable
|
|
37
|
|
131
|
|
(18)
|
|
|
|
|
|
|
|
Total cash used in
primary working capital
|
|
$
173
|
|
$ (142)
|
|
$ (46)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(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.
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; impact of certain foreign tax credit elections;
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.
(2) 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 2013 revenues of
approximately $13 billion including
the acquisition of Rockwood's
performance additives and TiO2 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 15,000 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.
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/huntsman-releases-third-quarter-2014-results-reports-strong-earnings-230915558.html
SOURCE Huntsman Corporation