FOURTH QUARTER NET INCOME OF $598 MILLION, AVAILABLE LIQUIDITY of
$1.3 Billion THE WOODLANDS, Texas, Feb. 26 /PRNewswire-FirstCall/
-- Fourth Quarter 2008 Highlights -- Revenues for the fourth
quarter of 2008 were $2,048 million, a decrease of 18% compared to
$2,504 million for the fourth quarter of 2007 and a decrease of 25%
compared to $2,731 million for the third quarter of 2008. -- Net
income for the fourth quarter of 2008 was $598 million or $2.53 per
diluted share compared to net income of $2 million or $0.01 per
diluted share for the same period in 2007 and compared to net loss
of $20 million or $0.09 loss per diluted share for the third
quarter of 2008. Adjusted net loss from continuing operations for
the fourth quarter of 2008 was $91 million or $0.38 loss per
diluted share compared to adjusted net income from continuing
operations of $51 million or $0.22 per diluted share for the same
period in 2007 and adjusted net loss from continuing operations of
$2 million or $0.01 loss per diluted share for the third quarter of
2008. -- Adjusted EBITDA from continuing operations for the fourth
quarter of 2008 was $51 million compared to $195 million for the
same period in 2007 and compared to $194 million for the third
quarter of 2008. 2008 Highlights -- Revenues for 2008 were $10,215
million, an increase of 6% compared to $9,651 million for 2007. --
Net income for 2008 was $609 million or $2.60 per diluted share
compared to net loss of $172 million or $0.74 loss per diluted
share for 2007. Adjusted net loss from continuing operations for
2008 was $57 million or $0.24 loss per diluted share compared to
adjusted net income from continuing operations of $271 million or
$1.16 per diluted share for 2007. -- Adjusted EBITDA from
continuing operations for 2008 was $643 million compared to $926
million for 2007. Summarized earnings are as follows: Three months
Three ended months December ended Year ended 31, ----- December 31,
In millions, except per --------- September ------------- share
amounts 2008 2007 30, 2008 2008 2007 ----------------------- ----
---- ---------- ---- ---- Net income (loss) $598 $2 $(20) $609
$(172) Adjusted net (loss) income from continuing operations $(91)
$51 $(2) $(57) $271 Diluted income (loss) per share $2.53 $0.01
$(0.09) $2.60 $(0.74) Adjusted diluted (loss) income per share from
continuing operations $(0.38) $0.22 $(0.01) $(0.24) $1.16 EBITDA
$984 $102 $165 $1,529 $375 Adjusted EBITDA from continuing
operations $51 $195 $194 $643 $926 See end of press release for
important explanations -- On December 14, 2008, we announced that
the merger agreement with Hexion Specialty Chemicals, Inc. was
terminated. We reached a settlement agreement with Hexion, Apollo
Management, L.P. and certain of its affiliates to settle our claims
against them associated with the merger for $1 billion.
Subsequently, we received the full $1 billion in cash before
December 31, 2008, as follows: Hexion paid us a termination fee of
$325 million and Apollo affiliates paid us $425 million and
purchased $250 million of our 7% convertible senior notes. We
continue to pursue our multi-billion dollar tortious interference
claims against Credit Suisse and Deutsche Bank. The court in
Montgomery County, Texas has ordered mediation to begin on May 11,
2009 and trial, if necessary, to commence on June 8, 2009. -- On
January 22, 2009, we announced a company-wide initiative to reduce
costs across all divisions and functions. Including steps begun in
the fourth quarter 2008, we intend to reduce our full-time
employment by approximately 1,250 positions - nearly 10% of all
employees. In addition, full-time contractor positions will be
reduced by 490. Annualized operating cost savings from all cuts are
estimated to be $150 million. -- On February 9, 2009, we announced
that our board of directors decided to continue our dividend during
the first quarter of 2009. Our board declared a $0.10 per share
cash dividend payable on March 31, 2009, to stockholders of record
as of March 16, 2009. Peter R. Huntsman, our President and CEO,
stated: "The fourth quarter of 2008 was perhaps the most
challenging in the history of our industry and we acted swiftly to
assure our long term prosperity. We negotiated one of the largest
out of court settlements and collected $1 billion from Hexion and
Apollo to settle our ongoing litigation against them and we
continue to pursue a multi-billion dollar lawsuit against Credit
Suisse and Deutsche Bank. We recently announced the closure of our
Grimsby, UK TiO2 facility while at the same time temporarily
suspending operations in a number of our other facilities to
effectively manage the drop in demand we experienced during the
quarter. We also announced the elimination of 1,250 positions,
nearly 10% of our work force, whereby we expect to save
approximately $150 million." Mr. Huntsman continued, "All of our
business divisions have seen an increase in demand since December
2008. With strong liquidity, lower costs and unfettered control of
our business, we believe that we are in a unique position to focus
on our business and prosper during these challenging global
conditions." Huntsman Corporation Operating Results Three months
Year ended In millions, except per ended December 31, December 31,
share amounts 2008 2007 2008 2007 -------------- ---- ---- ----
---- Revenues $2,048 $2,504 $10,215 $9,651 Cost of goods sold 1,883
2,143 8,951 8,111 ----- ----- ----- ----- Gross profit 165 361
1,264 1,540 Operating expenses 256 199 1,063 961 Restructuring,
impairment and plant closing costs 28 8 36 42 -- - -- -- Operating
(loss) income (119) 154 165 537 Interest expense, net (64) (71)
(263) (286) Loss on accounts receivable securitization program (11)
(5) (27) (21) Equity in income of investment in unconsolidated
affiliates 4 4 14 13 Income (expenses) associated with the Merger
815 (5) 780 (210) Other non-operating (expense) income (1) 3 - (2)
-- - - -- Income from continuing operations before income taxes and
minority interest 624 80 669 31 Income tax (expense) benefit (148)
3 (190) 12 Minority interest in subsidiaries' loss (income) 6 (4)
(1) 9 - -- -- - Income from continuing operations 482 79 478 52
Income (loss) from discontinued operations, net of tax(1) 112 (76)
117 (217) Extraordinary gain (loss) on the acquisition of a
business, net of tax(2) 4 (1) 14 (7) - -- -- -- Net income (loss)
$598 $2 $609 $(172) ==== == ==== ===== Net income (loss) $598 $2
$609 $(172) Interest expense, net 64 71 263 286 Income tax expense
(benefit) 148 (3) 190 (12) Depreciation and amortization 108 97 398
380 Income taxes, depreciation and amortization included in
discontinued operations(1,3) 66 (65) 69 (107) -- --- -- ----
EBITDA(3) $984 $102 $1,529 $375 Adjusted EBITDA - continuing
operations(3) $51 $195 $643 $926 Basic income (loss) per share
$2.56 $0.01 $2.62 $(0.78) Diluted income (loss) per share $2.53
$0.01 $2.60 $(0.74) Adjusted diluted (loss) income per share from
continuing operations(3) $(0.38) $0.22 $(0.24) $1.16 Common share
information: Basic shares outstanding 234 221 232 221 Diluted
shares 236 234 234 233 See end of press release for footnote
explanations Huntsman Corporation Segment Results Three months
ended Year ended December 31, December 31, In millions 2008 2007
2008 2007 ---- ---- ---- ---- Segment Revenues: Polyurethanes $796
$989 $4,055 $3,813 Materials and Effects 470 613 2,395 2,419
Performance Products 606 619 2,703 2,310 Pigments 186 274 1,072
1,109 Eliminations and other (10) 9 (10) - --- - --- - Total from
continuing operations 2,048 2,504 10,215 9,651 Discontinued
operations (1) - 45 - 1,063 ------ ------ ------- ------- Total
$2,048 $2,549 $10,215 $10,714 ====== ====== ======= ======= Segment
EBITDA(3): Polyurethanes $13 $142 $382 $592 Materials and Effects
(19) 41 116 199 Performance Products 93 49 278 202 Pigments (16) 6
17 51 Corporate and other 735 17 550 (342) Discontinued Base
Chemicals & Polymers operations(1) 178 (153) 186 (327) --- ----
--- ---- Total $984 $102 $1,529 $375 ==== ==== ====== ==== Segment
Adjusted EBITDA(3) : Polyurethanes $13 $142 $382 $593 Materials and
Effects 2 47 140 224 Performance Products 94 50 279 209 Pigments
(13) 6 21 54 Corporate and other (45) (50) (179) (154) --- --- ----
---- Total from continuing operations 51 195 643 926 Discontinued
operations (1) - - - 24 --- ---- ---- ---- Total $51 $195 $643 $950
=== ==== ==== ==== Three months ended December 31, Year ended
December 31, 2008 vs. 2007 2008 vs. 2007 Period-Over- -------------
------------- Period Increase Average Sales Average Sales
(Decrease) Selling Price Volume Selling Price Volume -------------
------ ------------- ------ Polyurethanes (a) (3)% (17)% 8% (1)%
Materials and Effects 1% (24)% 9% (9)% Performance Products (a) 22%
(21)% 29% (11)% Pigments 10% (38)% 10% (12)% (a) Excludes revenues
and sales volumes from tolling arrangements. See end of press
release for footnote explanations Three Months Ended December 31,
2008 as Compared to Three Months Ended December 31, 2007 Revenues
for the three months ended December 31, 2008 decreased to $2,048
million from $2,504 million during the same period in 2007.
Revenues decreased in all of our segments primarily due to lower
sales volumes, partially offset by higher average selling prices in
Materials and Effects, Performance Products and Pigments. For the
three months ended December 31, 2008, EBITDA was $984 million as
compared to $102 million in the same period in 2007. Adjusted
EBITDA from continuing operations for the three months ended
December 31, 2008 was $51 million as compared to $195 million for
the same period in 2007. Polyurethanes The decrease in revenues in
the Polyurethanes segment for the three months ended December 31,
2008 compared to the same period in 2007 was due to lower sales
volumes and lower average selling prices. MDI sales volumes
decreased 13% primarily due to lower volumes in the U.S. and Europe
related to lower auto and construction-related demand as well as
production outages caused by the third quarter 2008 U.S. Gulf Coast
Storms. These lower volumes were partially offset by modest growth
in Asia. MDI average selling prices decreased 5% primarily due to
the strength of the U.S. dollar versus foreign currencies in Europe
and the sharp decline in market demand. PO and co-product MTBE
sales volumes decreased due to production outages caused by the
U.S. Gulf Coast Storms in the third quarter, while average selling
prices decreased primarily due to the decline in market demand and
lower MTBE raw material costs. The decrease in EBITDA in the
Polyurethanes segment was primarily the result of lower margins
related to higher valued raw material costs progressing through
cost of sales, decreased volumes resulting from the overall
economic slowdown, customer destocking and the lingering effects of
the third quarter U.S. Gulf Coast Storms. In addition, we
recognized a write-down of certain inventories to lower of cost or
market values for $16 million. Materials and Effects The decrease
in revenues in the Materials and Effects segment for the three
months ended December 31, 2008 compared to the same period in 2007
was primarily due to lower sales volumes, partially offset by
higher average selling prices. Total sales volumes decreased 24%,
advanced materials volumes decreased 18% primarily due to lower
demand in the automotive, electronics, construction and coatings
markets, and textile effects sales volumes decreased 33% primarily
due to lower demand in apparel, home textiles and specialty textile
markets. Total average selling prices increased 1%, advanced
materials average selling prices were essentially unchanged, and
textile effects average selling prices increased 3%. The advanced
materials business contributed $301 million in revenues for the
three months ended December 31, 2008, while the textile effects
business contributed $169 million in revenues for the same period.
The decrease in EBITDA in the Materials and Effects segment was
primarily due to lower sales volumes resulting from the overall
economic slowdown, customer destocking and higher valued raw
material costs progressing through cost of sales. The advanced
materials business contributed $21 million of EBITDA for the three
months ended December 31, 2008, while the textile effects business
incurred a loss of $40 million. Performance Products The decrease
in revenues in the Performance Products segment for the three
months ended December 31, 2008 compared to the same period in 2007
was primarily due to a 21% (excluding tolling) decrease in sales
volumes, partially offset by a 22% increase in average selling
prices and higher tolling revenues. Sales volumes (excluding
tolling), decreased across most all product lines primarily due to
the overall economic slowdown, customer destocking, and the
conversion of most of our ethylene glycol business to a toll
manufacturing operation in 2008. Sales volumes for our surfactants
were the most resilient, in fact, surfactant volumes sold into
agricultural applications increased in the 2008 period. Average
selling prices increased from price increase initiatives in
response to higher raw material costs. The increase in EBITDA in
the Performance Products segment was primarily due to higher
contribution margins resulting from higher selling prices and lower
raw material costs. Pigments The decrease in revenues in the
Pigments segment for the three months ended December 31, 2008
compared to the same period in 2007 was primarily due to a 38%
decrease in sales volumes partially offset by a 10% increase in
average selling prices. Sales volumes decreased primarily due to
the overall economic slowdown and customer destocking. The decrease
in EBITDA in the Pigments segment was primarily due to lower sales
volumes and higher valued raw material costs progressing through
cost of sales. Discontinued Operations On November 5, 2007, we
completed the sale of the assets that comprise our U.S. base
chemicals business to Flint Hills Resources. On August 1, 2007, we
completed the sale of the majority of the assets that comprise our
Polymers segment to Flint Hills Resources. Results from these
businesses have been classified as discontinued operations.
Corporate and Other Corporate and other items include the results
of our Australia styrenics business, unallocated foreign exchange
gains and losses, unallocated corporate overhead, loss on the sale
of accounts receivable, losses on the early extinguishment of debt,
merger associated income and expense, minority interest,
unallocated restructuring costs, gain and loss on the disposition
of assets, the extraordinary gain on the acquisition of a business
and other non-operating income and expense. In the fourth quarter
of 2008, the total of these items was a gain of $735 million
compared to a gain of $17 million in the 2007 period. The increase
in EBITDA from these items was primarily the result of an $820
million increase in the income associated with the Hexion merger
($815 million of income recorded in the 2008 period compared to $5
million of expense in the 2007 period). Income Taxes During the
three months ended December 31, 2008, we recorded $148 million of
income tax expense compared to $3 million of income tax benefit in
the comparable period of 2007. During the fourth quarter of 2008,
we recorded income tax expense on the receipt of the settlement
payments (net of merger related expenses) along with income tax
expense due to our inability to record a tax benefit for losses in
certain tax jurisdictions, partially offset by favorable tax
authority dispute resolutions. As of December 31, 2008, we have
fully utilized all of our U.S. federal regular tax net operating
loss carryforwards. We continue to have net operating loss
carryforwards in many of our other significant tax jurisdictions.
Liquidity, Capital Resources and Outstanding Debt During December
2008, in connection with the Settlement Agreement, we received cash
proceeds of $1 billion, including the proceeds from the sale of the
7% convertible senior notes. We used $423 million of these proceeds
to repay our revolving credit facility in full as of December 31,
2008. As of December 31, 2008, we had $1,291 million of combined
cash and unused borrowing capacity compared with approximately $536
million for the most recent quarter ended September 30, 2008.
During the three months ended December 31, 2008, net debt plus
outstandings under our off-balance sheet accounts receivable
securitization program decreased approximately $601 million,
primarily due to net proceeds in connection with the Settlement
Agreement. During the fourth quarter, our changes in accounts
receivable, and inventory net of accounts payable decreased
favorably by approximately $112 million. For the three months ended
December 31, 2008, total capital expenditures were approximately
$93 million compared to approximately $198 million for the same
period in 2007. For the year ended December 31, 2008, total capital
expenditures were approximately $418 million compared to
approximately $665 million for the same period in 2007. The capital
expenditures for the year ended December 31, 2007 included $157
million spent on our former Port Arthur, Texas facility that was
previously damaged by fire and has since been sold to Flint Hills
Resources. We expect to spend approximately $230 million on capital
expenditures in 2009. In connection with our ongoing insurance
claim related to the April 29, 2006 Port Arthur, Texas fire, we
have received partial insurance proceeds to date of $365 million,
of which $40 million was received in December of 2008. We have
claimed an additional $235 million as presently due and owing and
unpaid under our insurance policies as of December 31, 2008, and
anticipate filing additional claims. The settlement of insurance
claims will continue during 2009. Any anticipated recoveries are
expected to be used to repay secured debt. Below is our outstanding
debt: December 31, September 30, December 31, In millions 2008 2008
2007 ---- ---- ---- Debt: Senior Credit Facilities $1,540 $1,894
$1,540 Secured Notes 295 295 294 Senior Notes 198 198 198
Subordinated Notes 1,285 1,308 1,311 Other Debt 329 263 226
Convertible Notes 235 - - --- - - Total Debt 3,882 3,958 3,569
----- ----- ----- Total Cash 662 113 154 --- --- --- Net Debt
$3,220 $3,845 $3,415 ====== ====== ====== Off-balance sheet
accounts receivable securitization program $446 $422 $428 Huntsman
Corporation Reconciliation of Adjustments Net Income (Loss)
Available Diluted To Common Income (Loss) EBITDA Stockholders Per
Share ------ ------------ --------- Three months Three months Three
months In millions, ended ended ended except per December 31,
December 31, December 31, share amounts 2008 2007 2008 2007 2008
2007 -------------- ---- ---- ---- ---- ---- ---- GAAP $984 $102
$598 $2 $2.53 $0.01 Adjustments: Loss on accounts receivable
securitization program 11 5 - - - - Unallocated foreign currency
loss 25 2 12 2 0.05 0.01 Loss on early extinguishment of debt 1 - -
- - - Other restructuring, impairment and plant closing costs 28 8
25 8 0.11 0.03 (Income) expenses associated with the Merger (815) 5
(610) 5 (2.58) 0.02 Gain on dispositions of assets (1) (69) - (43)
- (0.18) (Income) loss from discontinued operations, net of tax(1)
(178) 141 (112) 76 (0.47) 0.33 Extraordinary (gain) loss on the
acquisition of a business, net of tax(2) (4) 1 (4) 1 (0.02) - ---
---- ---- --- ------ --- Adjusted continuing operations $51 $195
$(91) $51 $(0.38) $0.22 Discontinued operations $178 $(141) $112
$(76) $0.47 $(0.33) Restructuring, impairment and plant closing
costs - - - - - - (Gain) loss on disposition of assets (3) 142 (2)
85 (0.01) 0.36 Gain on partial fire insurance settlement (175) -
(110) - (0.47) - Gain on accounts receivable securitization program
- (1) - - - - --- --- --- --- --- --- Adjusted discontinued
operations(1) $- $- $- $9 $- $0.04 Three months ended September 30,
In millions 2008 ----------- Net loss $(20) Interest expense, net
68 Income tax expense 18 Depreciation and amortization 99 Income
taxes, depreciation and amortization included in discontinued
operations(1,3) - --- EBITDA(3) $165 Net Income (Loss) Available
Diluted To Common Income (Loss) EBITDA Stockholders Per Share Three
months Three months Three months ended ended ended In millions,
except per September 30, September 30, September 30, share amounts
2008 2008 2008 ----------------------- ---- ---- ---- GAAP $165
$(20) $(0.09) Adjustments: Loss on accounts receivable
securitization program 6 - - Unallocated foreign currency gain (4)
(8) (0.03) Other restructuring, impairment and plant closing costs
4 3 0.01 Expenses associated with the Merger 26 26 0.11 Income from
discontinued operations, net of tax(1) (1) (1) - Extraordinary gain
on the acquisition of a business, net of tax(2) (2) (2) (0.01) ---
--- ------ Adjusted continuing operations $194 $(2) $(0.01) Net
Income (Loss) Available Diluted To Common Income (Loss) EBITDA
Stockholders Per Share ------ ------------ --------- In millions,
Year ended Year ended Year ended except per share December 31,
December 31, December 31, amounts 2008 2007 2008 2007 2008 2007
----------------- ---- ---- ---- ---- ---- ---- GAAP $1,529 $375
$609 $(172) $2.60 (0.74) Adjustments: Loss on accounts receivable
securitization program 27 21 - - - - Unallocated foreign currency
loss 31 12 9 9 0.04 0.04 Legal and contract settlements - 6 - 4 -
0.02 Loss on early extinguishment of debt 1 2 - 1 - - Other
restructuring, impairment and plant closing costs 36 42 32 42 0.14
0.18 (Income) expenses associated with the Merger (780) 210 (575)
210 (2.45) 0.90 Gain on dispositions of assets (1) (73) (1) (47) -
(0.20) (Income) loss from discontinued operations, net of tax(1)
(186) 324 (117) 217 (0.50) 0.93 Extraordinary (gain) loss on the
acquisition of a business, net of tax(2) (14) 7 (14) 7 (0.06) 0.03
---- ---- ---- ---- ------ ----- Adjusted continuing operations
$643 $926 $(57) $271 $(0.24) $1.16 Discontinued operations $186
$(324) $117 $(217) $0.50 $(0.93) Restructuring, impairment and
plant closing costs - 2 - 1 - - (Gain) loss on disposition of
assets (11) 339 (7) 206 (0.03) 0.88 Gain on partial fire insurance
settlement (175) - (110) - (0.47) - Loss on accounts receivable
securitization program - 7 - - - - --- --- --- --- --- --- Adjusted
discontinued operations(1) $- $24 $- $(10) $- $(0.04) See end of
press release for footnote explanations Conference Call Information
We will hold a conference call to discuss our fourth quarter and
full year 2008 financial results on Thursday, February 26, 2009 at
11:00 a.m. ET. Call-in number for U.S. participants: (888) 679 -
8037 Call-in number for international participants: (617) 213 -
4849 Participant access code: 39789814 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=PG6PAHWM6
The conference call will be available via webcast and can be
accessed from the investor relations portion of the company's
website at http://www.huntsman.com/. The conference call will be
available for replay beginning February 26, 2009 and ending March
5, 2009. Call-in numbers for the replay: Within the U.S.: (888) 286
- 8010 International: (617) 801 - 6888 Access code for replay:
46784120 About Huntsman: Huntsman (NYSE:HUN) is a global
manufacturer and marketer of differentiated chemicals. Its
operating companies manufacture products for a variety of global
industries, including chemicals, plastics, automotive, aviation,
textiles, footwear, paints and coatings, construction, technology,
agriculture, health care, detergent, personal care, furniture,
appliances and packaging. Originally known for pioneering
innovations in packaging and, later, for rapid and integrated
growth in petrochemicals, Huntsman today has more than 12,000
employees and operates from multiple locations worldwide. The
Company had 2008 revenues of approximately $10 billion. For more
information about Huntsman, please visit the company's website at
http://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. In addition, the completion of any
transactions described in this release is subject to a number of
uncertainties and closing will be subject to approvals and other
customary conditions. Accordingly, there can be no assurance that
such transactions will be completed or that the company's
expectations will be realized. The company assumes no obligation to
provide revisions to any forward-looking statements should
circumstances change, except as otherwise required by applicable
laws. (1) On November 5, 2007, we completed the sale of our U.S.
base chemicals business to Flint Hills Resources. On August 1,
2007, we completed the sale of our U.S. polymers business to Flint
Hills Resources. On December 29, 2006, we completed the sale of our
European petrochemicals business to SABIC. On July 6, 2005, we
completed the sale of our toluene di-isocyanate (TDI) business to
BASF. Results from these businesses are treated as discontinued
operations. Segment EBITDA discontinued operations only includes
the results of our U.S. base chemicals, U.S. polymers and European
petrochemical businesses. (2) On June 30, 2006, we acquired the
global textile effects business of Ciba Specialty Chemicals Inc.
for approximately $172 million. Because the fair value of acquired
current assets less liabilities assumed exceeded the acquisition
price and planned restructuring costs, the excess was recorded as
an extraordinary gain on the acquisition of a business. The
extraordinary amounts recorded during the three months ended
December 31, 2008 and 2007 respectively were $4 million gain and
$(1) million loss of which taxes were not applicable. (3) We use
EBITDA, Adjusted EBITDA from continuing operations, Adjusted EBITDA
from discontinued operations, Adjusted net income from continuing
operations and Adjusted net income from discontinued operations. We
believe that net income (loss) available to common stockholders 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 from
continuing operations and Adjusted net income from continuing
operations. We believe that income (loss) from discontinued
operations is the performance measure calculated and presented in
accordance with GAAP that is most directly comparable to Adjusted
EBITDA from discontinued operations and Adjusted net income from
discontinued operations. Additional information with respect to our
use of each of these financial measures follows: EBITDA is defined
as net income 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) available to common
stockholders is set forth in the operating results table above.
Adjusted EBITDA from continuing operations is computed by
eliminating the following from EBITDA: gains and losses from
discontinued operations; restructuring, impairment and plant
closing (credits) costs; merger associated income and expense;
losses on the sale of accounts receivable to our securitization
program; unallocated foreign currency (gain) loss; certain legal
and contract settlements; losses from early extinguishment of debt;
extraordinary loss (gain) on the acquisition of a business; and
loss (gain) on dispositions of assets. The reconciliation of
Adjusted EBITDA from continuing operations to EBITDA is set forth
in the Reconciliation of Adjustments table above. Adjusted EBITDA
from discontinued operations is computed by eliminating the
following from income (loss) from discontinued operations: income
taxes; depreciation and amortization; restructuring, impairment and
plant closing (credits) costs; losses on the sale of accounts
receivable to our securitization program; unallocated foreign
currency (gain) loss; gain on partial fire insurance settlement;
and (gain) loss on disposition of assets. The following table
provides a reconciliation of Adjusted EBITDA from discontinued
operations to income (loss) from discontinued operations: Three
months ended Year ended December 31, December 31, 2008 2007 2008
2007 ---- ---- ---- ---- Income (loss) from discontinued
operations, net of tax $112 $(76) $117 $(217) Income tax expense
(benefit) $66 $(67) $69 $(140) Depreciation and amortization $- $2
$- $33 -- -- -- --- EBITDA from discontinued operations $178 $(141)
$186 $(324) Restructuring, impairment and plant closing costs $- $-
$- $2 (Gain) loss on disposition of assets $(3) $142 $(11) $339
Gain on partial fire insurance settlement $(175) $- $(175) $-
(Gain) loss on accounts receivable securitization $- $(1) $- $7 --
--- -- -- Adjusted EBITDA from discontinued operations $- $- $- $24
== == == === Adjusted net income from continuing operations is
computed by eliminating the after tax impact of the following from
net income (loss) available to common stockholders: loss (income)
from discontinued operations; restructuring, impairment and plant
closing (credits) costs; merger associated income and expense;
unallocated foreign currency (gain) loss; certain legal and
contract settlements; losses on the early extinguishment of debt;
extraordinary loss (gain) on the acquisition of a business; and
loss (gain) on dispositions of assets. The reconciliation of
Adjusted net income from continuing operations to net income (loss)
available to common stockholders is set forth in the Reconciliation
of Adjustments table above. Adjusted net income from discontinued
operations is computed by eliminating the after tax impact of the
following from income (loss) from discontinued operations:
restructuring, impairment and plant closing (credits) costs; gain
on partial fire insurance settlement; and (gain) loss on the
disposition of assets. The reconciliation of Adjusted net income
from discontinued operations to net income (loss) available to
common stockholders is set forth in the Reconciliation of
Adjustments table above. DATASOURCE: Huntsman Corporation CONTACT:
Media, Russ Stolle, +1-281-719-6624, or Investors, Kurt Ogden,
+1-801-584-5959, both of Huntsman Corporation Web Site:
http://www.huntsman.com/
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