STRONG FOURTH QUARTER 2009 ADJUSTED EBITDA OF $165 MILLION;
IMPROVING GLOBAL DEMAND THE WOODLANDS, Texas, Feb. 19
/PRNewswire-FirstCall/ -- (NYSE:HUN) Fourth Quarter 2009 Highlights
-- Revenues for the fourth quarter of 2009 were $2,096 million, an
increase of 2% compared to $2,048 million for the same period in
2008 and a decrease of 1% compared to $2,108 million for the third
quarter of 2009. -- Volumes for the fourth quarter of 2009
increased 13% compared to the same period in 2008 and decreased 7%
compared to the third quarter of 2009 consistent with historical
seasonal patterns. -- Adjusted EBITDA for the fourth quarter of
2009 was $165 million compared to $51 million for the same period
in 2008 and $200 million for the third quarter of 2009. -- Net
income attributable to Huntsman Corporation for the fourth quarter
of 2009 was $66 million or $0.26 per diluted share, impacted by
favorable year end accounting for taxes of approximately $79
million. This compares to net income attributable to Huntsman
Corporation of $598 million or $2.53 per diluted share for the same
period in 2008 and a net loss attributable to Huntsman Corporation
of $68 million or $0.29 loss per diluted share for the third
quarter of 2009. -- Adjusted net income for the fourth quarter of
2009 was $70 million or $0.27 per diluted share, impacted by
favorable year end accounting for taxes of approximately $79
million. This compares to an adjusted net loss of $91 million or
$0.38 loss per diluted share for the same period in 2008 and an
adjusted net loss of $55 million or $0.24 loss per diluted share
for the third quarter of 2009. Full Year 2009 Highlights --
Revenues for 2009 were $7,763 million compared to $10,215 million
for 2008. -- Adjusted EBITDA for 2009 was $511 million compared to
$643 million for 2008. -- Net income attributable to Huntsman
Corporation for 2009 was $114 million or $0.48 per diluted share
compared to $609 million or $2.60 per diluted share for 2008. --
Adjusted net loss for 2009 was $323 million or $1.38 loss per
diluted share compared to adjusted net loss of $57 million or $0.24
loss per diluted share for 2008. -- Total cash and unused borrowing
capacity as of December 31, 2009 was approximately $2.5 billion.
Summarized earnings are as follows: Three months ended Three months
Year ended December 31, ended December 31, -----------------
-------------- ------------- In millions, except per September 30,
share amounts 2009 2008 2009 2009 2008 ----------------------- ----
---- ------------- ---- ---- Net income (loss) attributable to
Huntsman Corporation $66 $598 $(68) $114 $609 Adjusted net income
(loss)(1) $70 $(91) $(55) $(323) $(57) Diluted income (loss) per
share $0.26 $2.53 $(0.29) $0.48 $2.60 Adjusted diluted income
(loss) per share(1)(2) $0.27 $(0.38) $(0.24) $(1.38) $(0.24)
EBITDA(1) $147 $984 $107 $1,158 $1,529 Adjusted EBITDA(1) $165 $51
$200 $511 $643 See end of press release for important explanations
Recent Highlights -- On January 11, 2010, we repurchased all of our
outstanding 7% convertible notes due 2018 for approximately $382
million. As these notes were convertible into approximately 31.8
million shares of common stock, our fully diluted outstanding share
count was reduced to approximately 240 million shares. Peter R.
Huntsman, our President and CEO, stated: "Results from our most
recent fourth quarter are very encouraging; we have seen our
business results improve from last year when we reported $51
million of Adjusted EBITDA to this year when we reported $165
million. During 2009, we eliminated more than $150 million of costs
from our business and reduced working capital needs by nearly $500
million. Despite the challenging economic conditions in 2009, we
were able to maintain consistent margins on a per unit basis
throughout our business. During the fourth quarter of 2009 our
volumes increased 13 percent compared to the prior year, but still
fell short of normalized demand. As demand continues to improve, we
expect to see improved earnings." He added, "We look forward to
improving market conditions in 2010. We have a number of innovative
products in our pipeline that address energy concerns that will
provide long term benefits. I expect our operational discipline,
improving global market conditions and stronger capacity
utilization to further enhance our earnings potential." Huntsman
Corporation Operating Results Three months ended Year ended
December 31, December 31, In millions, except per share amounts
2009 2008 2009 2008 ------------------------------------- ---- ----
---- ---- Revenues $2,096 $2,048 $7,763 $10,215 Cost of goods sold
1,747 1,883 6,695 8,951 ------ ------ ------ ------- Gross profit
349 165 1,068 1,264 Operating expenses 277 256 987 1,063
Restructuring, impairment and plant closing costs 13 28 152 36
------ ------ ------ ------- Operating income (loss) 59 (119) (71)
165 Interest expense, net (60) (64) (238) (263) Loss on accounts
receivable securitization program (10) (11) (23) (27) Equity in
income of investment in unconsolidated affiliates 2 4 3 14 Loss on
early extinguishment of debt - - (21) (1) Income associated with
the Terminated Merger and related litigation - 815 835 780 Other
(loss) income (1) (1) - 1 ------ ------ ------ ------- (Loss)
income before income taxes (10) 624 485 669 Income tax benefit
(expense) 79 (148) (370) (190) ------ ------ ------ ------- Income
from continuing operations 69 476 115 479 (Loss) income from
discontinued operations, net of tax(3) (7) 112 (9) 117 ------
------ ------ ------- Income before extraordinary gain 62 588 106
596 Extraordinary gain on the acquisition of a business, net of tax
of nil(4) 6 4 6 14 ------ ------ ------ ------- Net income 68 592
112 610 Less net (income) loss attributable to noncontrolling
interests (2) 6 2 (1) ------ ------ ------ ------- Net income
attributable to Huntsman Corporation $66 $598 $114 $609 ======
====== ====== ======= Net income attributable to Huntsman
Corporation $66 $598 $114 $609 Interest expense, net 60 64 238 263
Income tax (benefit) expense from continuing operations (79) 148
370 190 Income tax (benefit) expense from discontinued
operations(1)(3) (4) 66 (6) 69 Depreciation and amortization 104
108 442 398 ----- ----- ------ ------ EBITDA(1) $147 $984 $1,158
$1,529 Adjusted EBITDA(1) $165 $51 $511 $643 Basic income per share
$0.28 $2.56 $0.49 $2.62 Diluted income per share(2) $0.26 $2.53
$0.48 $2.60 Adjusted diluted income (loss) per share(1)(2) $0.27
$(0.38) $(1.38) $(0.24) Common share information: Basic shares
outstanding 234.0 233.6 233.9 232.0 Diluted shares 271.5 236.4
238.3 234.3 Diluted shares for adjusted diluted income (loss) per
share 271.5 236.4 233.9 234.3 See end of press release for footnote
explanations Huntsman Corporation Segment Results Three months
ended Year ended December 31, December 31, In millions 2009 2008
2009 2008 ------------ ---- ---- ---- ---- Segment Revenues:
Polyurethanes $841 $796 $3,005 $4,055 Advanced Materials 274 301
1,059 1,492 Textile Effects 187 169 691 903 Performance Products
568 606 2,090 2,703 Pigments 248 186 960 1,072 Eliminations and
other (22) (10) (42) (10) ------ ------ ------ ------- Total $2,096
$2,048 $7,763 $10,215 ====== ====== ====== ======= Segment
EBITDA(1): Polyurethanes $135 $13 $384 $382 Advanced Materials 21
21 59 149 Textile Effects (8) (40) (64) (33) Performance Products
60 93 260 278 Pigments 27 (16) (24) 17 Corporate and other (77) 735
558 550 Discontinued operations(3) (11) 178 (15) 186 ------ ------
------ ------- Total $147 $984 $1,158 $1,529 ====== ====== ======
======= Segment Adjusted EBITDA(1): Polyurethanes $135 $13 $386
$382 Advanced Materials 21 22 71 150 Textile Effects (13) (20) (56)
(10) Performance Products 60 94 260 279 Pigments 23 (13) 27 21
Corporate and other (61) (45) (177) (179) ------ ------ ------
------- Total $165 $51 $511 $643 ====== ====== ====== ======= See
end of press release for footnote explanations Three months ended
Year ended December 31, December 31, 2009 vs. 2008 2009 vs. 2008
------------- ------------- Period-Over-Period Average Sales
Average Sales (Decrease) Increase Selling Price Volume Selling
Price Volume ------------- ------ ------------- ------
Polyurethanes (a) (4)% 10% (22)% (5)% Advanced Materials (b) (1)%
(4)% (9)% (20)% Textile Effects (a) 2% 9% (5)% (20)% Performance
Products (a) (19)% 15% (21)% (3)% Pigments (a) 0% 36% (5)% (6)% ---
--- --- --- Total Company (a)(b)(c) (8)% 13% (19)% (6)% --- --- ---
--- (a) Excludes revenues and sales volumes from tolling
arrangements and bi-products (b) Excludes APAO business sold July
31, 2009 (c) Excludes Australian styrenics operations which were
closed January 2010 Three Months Ended December 31, 2009 Compared
to Three Months Ended December 31, 2008 Revenues for the three
months ended December 31, 2009 increased to $2,096 million from
$2,048 million for the same period in 2008. Revenues increased
primarily due to higher sales volumes in our Polyurethanes, Textile
Effects, Performance Products and Pigments segments partially
offset by lower average selling prices in our Polyurethanes,
Advanced Materials and Performance Products segments. For the three
months ended December 31, 2009, EBITDA was $147 million compared to
$984 million for the same period in 2008. Adjusted EBITDA for the
three months ended December 31, 2009 was $165 million compared to
$51 million for the same period in 2008. Polyurethanes The increase
in revenues in our Polyurethanes segment for the three months ended
December 31, 2009 compared to the same period in 2008 was primarily
due to higher sales volumes partially offset by lower average
selling prices. Global MDI sales volumes increased primarily due to
improved demand. Average MDI selling prices decreased due to lower
raw material costs and competitive pressures. PO and MTBE sales
volumes increased compared to the 2008 period, which was impacted
by the 2008 U.S. Gulf Coast storms, and average selling prices
increased due to favorable competitive conditions. The increase in
EBITDA in our Polyurethanes segment was primarily the result of
higher margins and sales volumes as well as the negative effects in
the 2008 period caused by the 2008 U.S. Gulf Coast storms. Advanced
Materials The decrease in revenues in our Advanced Materials
segment for the three months ended December 31, 2009 compared to
the same period in 2008 was due to lower sales volumes and lower
average selling prices. Sales volumes decreased across all regions
as a result of delayed effects from the worldwide economic slowdown
on this portion of our business. Average selling prices in our base
resins market decreased in response to lower raw material costs
while average selling prices in our formulations and specialty
components markets decreased primarily as a result of changes in
our product mix and competitive pressure in the wind generation and
coating systems markets. EBITDA was essentially unchanged as lower
sales were offset by lower raw material and operating costs. During
the three months ended December 31, 2009 and 2008, our Advanced
Materials segment recorded restructuring and plant closing charges
of nil and $1 million, respectively. Textile Effects The increase
in revenues in our Textile Effects segment for the three months
ended December 31, 2009 compared to the same period in 2008 was due
to higher sales volumes and higher average selling prices. Sales
volumes increased primarily due to higher demand for apparel, home
and specialty textile products in Asia where the dyeing, printing
and cotton knit businesses in China and the woven segment in Sri
Lanka are experiencing a good market recovery. The increase in
EBITDA was primarily due to higher margins resulting from lower
operating and fixed costs as well as higher sales volumes. During
the three months ended December 31, 2009 and 2008, our Textile
Effects segment recorded restructuring and plant closing credits of
$6 million and restructuring and plant closing charges of $21
million, respectively. Performance Products The decrease in
revenues in our Performance Products segment for the three months
ended December 31, 2009 compared to the same period in 2008 was due
to lower average selling prices partially offset by higher sales
volumes. The decrease in average selling prices was primarily due
to lower raw material costs. Sales volumes increased primarily due
to higher demand across most product groups. EBITDA decreased due
to the effect of lower margins as selling prices decreased faster
than raw materials costs, partially offset by higher sales volumes.
During the three months ended December 31, 2009 and 2008, our
Performance Products segment recorded restructuring and plant
closing charges of nil and $1 million, respectively. Pigments The
increase in revenues in our Pigments segment for the three months
ended December 31, 2009 compared to the same period in 2008 was due
to higher sales volumes. Sales volumes increased primarily due to
greater demand in Europe and Asia. Average local currency selling
prices decreased but were offset by the strength of the Euro
against the US dollar, resulting in no change to average selling
prices. The increase in EBITDA in our Pigments segment was
primarily due to higher margins resulting from lower operating and
fixed costs as well as higher sales volumes. During the three
months ended December 31, 2009 and 2008, our Pigments segment
recorded restructuring, impairment and plant closing charges of $6
million and $3 million, respectively. Corporate and Other Corporate
and Other includes the results of our Australia styrenics business,
unallocated foreign exchange gains and losses, unallocated
corporate overhead, loss on our accounts receivable securitization
program, income (expenses) associated with the terminated merger
with Hexion and related litigation, loss on early extinguishment of
debt, income (loss) attributable to non-controlling interests,
unallocated restructuring costs, extraordinary gain on the
acquisition of a business and non-operating income and expense. The
decrease in EBITDA from Corporate and Other for the three months
ended December 31, 2009 compared to the same period in 2008
resulted primarily from the lack of income associated with the
Terminated Merger and related litigations costs in the 2009 period
($815 million in the 2008 period compared to nil in the 2009
period). Income Taxes During the three months ended December 31,
2009, we recorded an income tax benefit of $79 million compared to
$148 million of income tax expense in the same period of 2008. In
the fourth quarter of 2009, as a result of year end pension
accounting, we were required to realize the tax benefit for some of
the net operating losses in countries where we have valuation
allowances in addition we recorded tax benefits from losses in
countries where we do not have valuation allowances. In 2009, we
paid cash taxes of approximately $155 million, $15 million related
to foreign taxable income and approximately $140 million related to
U.S. taxable income approximately all of which was associated with
the settlement of our litigation in Texas with Credit Suisse and
Deutsche Bank. We have significant non-U.S. net operating loss
carryforwards most of which have an offsetting tax valuation
allowance. As of December 31, 2009 we have fully utilized all of
our U.S. federal regular tax net operating loss carryforwards.
Liquidity, Capital Resources and Outstanding Debt As of December
31, 2009, we had $2,510 million of combined cash and unused
borrowing capacity compared to $1,291 million at December 31, 2008.
Excluding cash received from the Texas bank litigation settlement
(net of taxes), a portion of which was used to repurchase certain
of our long-term debt, our liquidity during 2009 improved despite
the impact of the worldwide recession on earnings. This was largely
due to effective working capital management, reduced capital
expenditures and minimal scheduled debt maturities. Our primary
working capital (accounts receivable, including our off balance
sheet securitization program, inventory and accounts payable)
decreased which provided a cash benefit to us of $74 million in the
fourth quarter of 2009 and $490 million for the full year 2009.
Total capital expenditures were $49 million during the fourth
quarter of 2009 compared to $93 million for the same period in
2008. For the year ended December 31, 2009, total capital
expenditures were $189 million compared to $418 million for 2008.
We expect to spend between $250 and $275 million on capital
expenditures in 2010. During the fourth quarter of 2009, we
replaced our existing short term (364 day) accounts receivable
securitization program that was scheduled to mature November 2009
with two new multi-year securitization programs (a U.S. program and
a European program). The U.S. program provides for financing up to
$250 million of which $125 million is for three years and $125
million is for two years. The European program provides for
financing up to euro 225 million for two years. Availability under
these programs is determined among other things by the level of
eligible receivables. We are currently seeking to amend our
existing revolving credit facility to reduce the available
borrowing limit to an amount not to exceed $300 million and extend
the maturity to February, 2014. 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. We are currently in binding arbitration with the insurers.
While a final ruling is not expected until after additional oral
arguments scheduled for March 2010, based on preliminary rulings,
we do not expect additional recoveries to exceed $200 million. Any
additional anticipated recoveries will be used to repay secured
debt. On January 11, 2010, we repurchased all of our outstanding 7%
convertible notes due 2018 which were held by funds controlled by
Apollo Management, L.P. The convertible notes were issued to Apollo
in December 2008 in connection with the settlement of litigation
related to our terminated merger agreement with Hexion Specialty
Chemicals, Inc. The total purchase amount was approximately $382
million. At the time of this repurchase, the notes were convertible
into approximately 31.8 million shares of Huntsman common stock.
This early extinguishment of the convertible notes will result in a
loss on extinguishment of approximately $146 million in the first
quarter of 2010. In the future, depending on market conditions, we
may from time to time, seek to repurchase or redeem debt securities
in open market purchases, privately negotiated transactions, tender
offers or otherwise. Any such repurchases or redemptions and the
timing and amount thereof, will depend on prevailing market
conditions, liquidity requirements, contractual restrictions and
other factors. No assurance can be given that we will complete any
such transaction. Below is our outstanding debt: December 31,
December 31, In millions 2009 2008 ----------- ---- ---- Debt:
Senior Credit Facilities $1,968 $1,540 Secured Notes - 295 Senior
Notes 434 198 Subordinated Notes 1,294 1,285 Other Debt 280 329
Convertible Notes 236 235 ------ ------ Total Debt - excluding
affiliates 4,212 3,882 ------ ------ Total Cash 1,750 662 ------
------ Net Debt- excluding affiliates $2,462 $3,220 ====== ======
Off-balance sheet accounts receivable securitization programs(a)
$254 $446 (a) Effective January 1, 2010, our off-balance sheet
accounts receivable securitization programs will be reported on
balance sheet as secured debt Huntsman Corporation Reconciliation
of Adjustments Net Income (Loss) Diluted Attributable to Income
Huntsman (Loss) EBITDA Corporation Per Share ------------
--------------- ------------ Three months Three months Three months
ended ended ended In millions, except per December 31, December 31,
December 31, share amounts 2009 2008 2009 2008 2009 2008
----------------------- ---- ---- ---- ---- ---- ---- GAAP(2) $147
$984 $66 $598 $0.26 $2.53 Adjustments: Loss on accounts receivable
securitization program 10 11 - - - - Unallocated foreign currency
(gain) loss (1) 25 (3) 12 (0.01) 0.05 Loss on early extinguishment
of debt - 1 - - - - Other restructuring, impairment and plant
closing costs 13 28 7 25 0.03 0.11 Income associated with the
Terminated Merger and related litigation - (815) - (610) - (2.58)
Discount amortization on settlement financing associated with the
Terminated Merger - - 5 - 0.02 - Acquisition related income (9) -
(6) - (0.02) - Gain on disposition of businesses/assets - (1) - - -
- Loss (income) from discontinued operations, net of tax(3) 11
(178) 7 (112) 0.03 (0.47) Extraordinary gain on the acquisition of
a business, net of tax(4) (6) (4) (6) (4) (0.02) (0.02) ---- ----
--- ---- ----- ------ Adjusted(1)(2) $165 $51 $70 $(91) $0.27
$(0.38) ----- ------ Discontinued operations $(11) $178 $(7) $112
$(0.03) $0.47 Gain on disposition of assets (6) (3) (4) (2) (0.01)
(0.01) Loss (gain) on partial fire insurance settlement 17 (175) 11
(110) 0.04 (0.47) ---- ---- --- ---- ----- ------ Adjusted
discontinued operations(1)(3) $- $- $- $- $- $- Three months ended
In millions September 30, 2009 ----------- ------------------ Net
loss attributable to Huntsman Corporation (68) Interest expense,
net 65 Income tax expense from continuing operations - Income tax
benefit from discontinued operations(3) (2) Depreciation and
amortization 112 ---- EBITDA(1) $107 Net Income (Loss) Diluted
Income Attributable to (Loss) In millions, EBITDA Huntsman
Corporation Per Share except per Three months ended Three months
ended Three months ended share September 30, September 30,
September 30, amounts 2009 2009 2009 ------------
------------------ -------------------- ------------------ GAAP
$107 $(68) $(0.29) Adjustments: Loss on accounts receivable
securitization program 3 - - Unallocated foreign currency gain (6)
(5) (0.02) Loss on early extinguishment of debt 21 13 0.06 Other
restructuring, impairment and plant closing costs (credits) 62 (7)
(0.03) Expenses associated with the Terminated Merger and related
litigation 2 1 - Discount amortization on settlement financing
associated with the Terminated Merger - 4 0.02 Acquisition related
expenses 8 6 0.03 Gain on disposition of businesses/ assets (1) (1)
- Loss from discontinued operations, net of tax(3) 4 2 0.01 ----
---- ------ Adjusted $200 $(55) $(0.24) ------ Discontinued
operations $(4) $(2) $(0.01) Loss on disposition of assets 4 2 0.01
---- ---- ------ Adjusted discontinued operations(3) $- $- $- Net
Income (Loss) Diluted Income Attributable To (Loss) EBITDA Huntsman
Corporation Per Share -------- -------------------- --------------
In millions, Year ended Year ended Year ended except per share
December 31, December 31, December 31, amounts 2009 2008 2009 2008
2009 2008 ----------------- ---- ---- ---- ---- ---- ---- GAAP(2)
$1,158 $1,529 $114 $609 $0.48 $2.60 Adjustments: Loss on accounts
receivable securitization program 23 27 - - - - Unallocated foreign
currency (gain) loss (16) 31 (5) 9 (0.02) 0.04 Loss on early
extinguishment of debt 21 1 13 - 0.06 - Other restructuring,
impairment and plant closing costs 152 36 69 32 0.29 0.14 Income
associated with the Terminated Merger and related litigation (835)
(780) (526) (575) (2.25) (2.45) Discount amortization on settlement
financing associated with the Terminated Merger - - 9 - 0.04 -
Acquisition related expenses - - 1 - - - Gain on disposition of
businesses/ assets (1) (1) (1) (1) - - Loss (income) from
discontinued operations, net of tax(3) 15 (186) 9 (117) 0.04 (0.50)
Extraordinary gain on the acquisition of a business, net of tax(4)
(6) (14) (6) (14) (0.03) (0.06) ---- ---- ----- ---- ------ ------
Adjusted(1)(2) $511 $643 $(323) $(57) $(1.38) $(0.24) ------ ------
Discontinued operations $(15) $186 $(9) $117 $(0.04) $0.50 Gain on
disposition of assets (2) (11) (2) (7) (0.01) (0.03) Loss (gain) on
partial fire insurance settlement 17 (175) 11 (110) 0.05 (0.47)
---- ---- ----- ---- ------ ------ Adjusted discontinued
operations(1)(3) $- $- $- $- $- $- See end of press release for
footnote explanations Conference Call Information We will hold a
conference call to discuss our 2009 fourth quarter and full year
results on Friday, February 19, 2010 at 10:00 a.m. ET Call-in
number for U.S. participants: (888) 679 - 8033 Call-in number for
international participants: (617) 213 - 4846 Participant access
code: 72794443 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=PTGP7XEM4
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 19, 2010 and ending
February 26, 2010. Call-in numbers for the replay: Within the U.S.:
(888) 286 - 8010 International: (617) 801 - 6888 Access code for
replay: 77218155 About Huntsman: Huntsman 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 has approximately 11,000 employees and operates from
multiple locations worldwide. The Company had 2009 revenues of
approximately $8 billion. 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. (1) We use EBITDA,
Adjusted EBITDA, Adjusted EBITDA from discontinued operations,
Adjusted net income and Adjusted net income from discontinued
operations. 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. 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 (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)
available to common stockholders is set forth in the operating
results table above. Adjusted EBITDA is computed by eliminating the
following from EBITDA: gains and losses from discontinued
operations; restructuring, impairment and plant closing (credits)
costs; income and expense associated with the Terminated merger and
related litigation; acquisition related expenses; 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 disposition of business/assets. The reconciliation
of Adjusted EBITDA 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 business/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, In millions 2009 2008 2009 2008
------------ ---- ---- ---- ---- Net (loss) income from
discontinued operations, net of tax $(7) $112 $(9) $117 Income tax
(benefit) expense (4) 66 (6) 69 --- ---- --- ---- EBITDA from
discontinued operations (11) 178 (15) 186 Gain on disposition of
assets (6) (3) (2) (11) Loss (gain) on partial fire insurance
settlement 17 (175) 17 (175) --- ---- --- ---- Adjusted EBITDA from
discontinued operations $- $- $- $- === ==== === ==== Adjusted net
income (loss) is computed by eliminating the after tax impact of
the following items from net income (loss) attributable to Huntsman
Corporation: loss (income) from discontinued operations;
restructuring, impairment and plant closing (credits) costs; income
and expense associated with the Terminated merger and related
litigation; discount amortization on settlement financing
associated with the Terminated merger; acquisition related
expenses; 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 disposition of business/assets. The
reconciliation of adjusted net income (loss) to net income (loss)
attributable to Huntsman Corporation common stockholders is set
forth in the Reconciliation of Adjustments table above. Adjusted
net income (loss) from discontinued operations is computed by
eliminating the after tax impact of the following items 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 business/assets.
The reconciliation of Adjusted net income (loss) from discontinued
operations to net income (loss) available to common stockholders is
set forth in the Reconciliation of Adjustments table above. (2)
Diluted income (loss) per share for GAAP net income (loss)
attributable to Huntsman Corporation and for adjusted net income
(loss) attributable to Huntsman Corporation is calculated using the
following information: Three months ended Year ended In millions,
except per December 31, December 31, share amounts 2009 2008 2009
2008 ----------------------- ---- ---- ---- ---- GAAP Net income
attributable to Huntsman Corporation $66 $598 $114 $609 Convertible
notes interest expense, net of tax 5 - - - ----- ----- ------
------ Net income attributable to Huntsman Corporation and assumed
conversion of notes $71 $598 $114 $609 ===== ===== ====== ======
Diluted shares 271.5 236.4 238.3 234.3 Diluted income per share
$0.26 $2.53 $0.48 $2.60 Adjusted Net income (loss) attributable to
Huntsman Corporation $70 $(91) $(323) $(57) Convertible notes
interest expense, net of tax 4 - - - ----- ----- ------ ------ Net
income (loss) attributable to Huntsman Corporation and assumed
conversion of notes $74 $(91) $(323) $(57) ===== ===== ======
====== Diluted shares 271.5 236.4 233.9 234.3 Diluted income (loss)
per share $0.27 $(0.38) $(1.38) $(0.24) (3) On August 1, 2007, we
completed the sale of our U.S. polymers business to Flint Hills
Resources. On November 5, 2007, we completed the sale of our U.S.
base chemicals business to Flint Hills Resources. Results from
these businesses are treated as discontinued operations. Segment
EBITDA from discontinued operations only includes the results of
our U.S. base chemicals and U.S. polymers businesses. (4) 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 gain recorded during the three months
ended December 31, 2009 and 2008 was $6 million and $4 million
respectively of which taxes were not applicable. DATASOURCE:
Huntsman Corporation CONTACT: Media, Gary Chapman, +1-281-719-4324,
or Investor Relations, Kurt Ogden +1-801-584-5959, both of Huntsman
Corporation Web Site: http://www.huntsman.com/
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