THE WOODLANDS, Texas,
May 7 /PRNewswire-FirstCall/ --
(NYSE: HUN)
First Quarter 2010 Highlights
- Revenues for the first quarter of 2010 were $2,094 million, an increase of 25% compared to
$1,680 million for the same period in
2009 and an increase of 1% compared to $2,065 million for the fourth quarter of
2009.
- Adjusted EBITDA for the first quarter of 2010 was $123 million compared to $57 million for the same period in 2009 and
$174 million for the fourth quarter
of 2009 (adjusted to account for the reclassification of results
from our Australian styrenics business into discontinued
operations).
- Net loss attributable to Huntsman Corporation for the first
quarter of 2010 was $172 million or
$0.73 loss per diluted share,
including charges related to the early extinguishment of debt of
$155 million. This compares to
net loss attributable to Huntsman Corporation of $290 million or $1.24 loss per diluted share for the same period
in 2009 and net income attributable to Huntsman Corporation of
$66 million or $0.26 per diluted share for the fourth quarter of
2009 which was impacted favorably by year end accounting for taxes
of approximately $79 million.
- Adjusted net loss for the first quarter of 2010 was
$16 million or $0.07 loss per diluted share. This compares
to an adjusted net loss of $267
million or $1.14 loss per
diluted share for the same period in 2009 and adjusted net income
of $79 million or $0.31 per diluted share for the fourth quarter of
2009 which was impacted favorably by year end accounting for taxes
of approximately $79 million.
Summarized earnings are as follows:
|
Three months ended
March 31,
|
|
Three months
ended
|
|
In millions, except per share
amounts
|
|
2010
|
|
2009
|
|
December 31,
2009
|
|
|
|
|
|
|
|
|
Net (loss) income attributable to
Huntsman
Corporation
|
$
(172)
|
|
$
(290)
|
|
$
66
|
|
Adjusted net (loss)
income(1)
|
$
(16)
|
|
$
(267)
|
|
$
79
|
|
|
|
|
|
|
|
|
Diluted (loss) income per
share
|
$
(0.73)
|
|
$
(1.24)
|
|
$
0.26
|
|
Adjusted diluted (loss) income per
share(1)
|
$
(0.07)
|
|
$
(1.14)
|
|
$
0.31
|
|
|
|
|
|
|
|
|
EBITDA(1)
|
$
(55)
|
|
$
30
|
|
$
147
|
|
Adjusted EBITDA(1)
|
$
123
|
|
$
57
|
|
$
174
|
|
|
|
|
|
|
|
|
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.
These notes were convertible into approximately 31.8 million
shares of common stock.
- On February 27, 2010, we
announced the completion of our ethyleneamines joint venture plant
in Jubail, Saudi Arabia with our
partner the Zamil Group Holding Company. The plant
commissioning is almost complete and will soon begin deliveries of
product. Results from this operation will be consolidated in
our financial statements within our Performance Products
division.
- On March 9, 2010, we entered into
an amendment of our existing bank credit facilities. Among
other things, the amendment extends the maturity of the revolving
credit facility to March 9,
2014.
- On March 17, 2010, we completed a
$350 million offering of senior
subordinated notes due 2020 through our wholly owned subsidiary,
Huntsman International LLC. We used the net proceeds of the
notes to refinance approximately euro 184
million of senior subordinated notes due 2013 and
approximately euro 59 million of
senior subordinated notes due 2015.
- Effective March 24, 2010, Dr.
Patrick Harker was appointed as a
new independent director to our Board of Directors. Dr.
Harker, age 51, is President of the University
of Delaware. He has been the Dean of the Wharton
School of the University of
Pennsylvania and has served as a Professor at the
University of Pennsylvania.
Peter R. Huntsman, our President
and CEO, commented:
"I am pleased with our first quarter results. Our first
quarter 2010 Adjusted EBITDA was more than double our prior year
results despite the negative impact of approximately $40 million from planned maintenance and
approximately $11 million from
unplanned mechanical shut downs. Throughout the first quarter
and April we saw positive signs of economic recovery within our
business. Adjusted for the effect of our planned maintenance,
first quarter sales volumes improved 19% compared to the previous
year and 5% compared to the fourth quarter. Results from our
restructuring efforts this past year are positively reflected in
our earnings and are most visible in our Textile Effects business
which had break-even earnings and our Pigments business which
recorded the highest level of quarterly earnings since early
2006."
He added, "The positive momentum we are seeing in
underlying demand suggests that second quarter sales volumes should
continue to improve. We are aggressively working to
increase our product prices to offset the increase we are seeing in
raw materials."
Huntsman
Corporation
Operating
Results
|
|
|
|
|
Three months ended
March 31,
|
|
In millions, except per share
amounts
|
|
2010
|
|
2009
|
|
|
|
|
|
|
Revenues
|
$
2,094
|
|
$
1,680
|
|
Cost of goods sold
|
1,813
|
|
1,531
|
|
Gross profit
|
281
|
|
149
|
|
Operating expenses
|
256
|
|
222
|
|
Restructuring, impairment and plant
closing costs
|
3
|
|
14
|
|
Operating income (loss)
|
22
|
|
(87)
|
|
Interest expense, net
|
(61)
|
|
(55)
|
|
Loss on accounts receivable
securitization programs
|
-
|
|
(4)
|
|
Equity in income of investment in
unconsolidated affiliates
|
1
|
|
1
|
|
Loss on early extinguishment of
debt
|
(155)
|
|
-
|
|
Expenses associated with the
Terminated Merger and related
litigation
|
-
|
|
(7)
|
|
Loss before income
taxes
|
(193)
|
|
(152)
|
|
Income tax benefit
(expense)
|
34
|
|
(138)
|
|
Loss from continuing
operations
|
(159)
|
|
(290)
|
|
Loss from discontinued operations, net
of tax(2)
|
(13)
|
|
(4)
|
|
Net loss
|
(172)
|
|
(294)
|
|
Less net loss attributable to
noncontrolling interests
|
-
|
|
4
|
|
Net loss attributable to Huntsman
Corporation
|
$
(172)
|
|
$
(290)
|
|
|
|
|
|
|
|
|
|
|
|
Net loss attributable to Huntsman
Corporation
|
$
(172)
|
|
$
(290)
|
|
Interest expense, net
|
61
|
|
55
|
|
Income tax (benefit) expense from
continuing operations
|
(34)
|
|
138
|
|
Income tax (benefit) expense from
discontinued operations(1)(2)
|
(8)
|
|
1
|
|
Depreciation and
amortization
|
98
|
|
126
|
|
EBITDA(1)
|
$
(55)
|
|
$
30
|
|
|
|
|
|
|
Adjusted EBITDA(1)
|
$
123
|
|
$
57
|
|
|
|
|
|
|
Basic loss per share
|
$
(0.73)
|
|
$
(1.24)
|
|
Diluted loss per share
|
$
(0.73)
|
|
$
(1.24)
|
|
Adjusted diluted loss per
share(1)
|
$
(0.07)
|
|
$
(1.14)
|
|
|
|
|
|
|
Common share
information:
|
|
|
|
|
Basic shares
outstanding
|
234.8
|
|
233.7
|
|
Diluted
shares
|
234.8
|
|
233.7
|
|
See end of press release for footnote
explanations
|
|
|
|
|
|
|
Huntsman
Corporation
Segment
Results
|
|
|
|
|
Three months ended
March 31,
|
|
In millions
|
|
2010
|
|
2009
|
|
|
|
|
|
|
Segment Revenues:
|
|
|
|
|
Polyurethanes
|
$
767
|
|
$
600
|
|
Performance
Products
|
616
|
|
500
|
|
Advanced
Materials
|
291
|
|
257
|
|
Textile
Effects
|
195
|
|
152
|
|
Pigments
|
269
|
|
196
|
|
Eliminations and
other
|
(44)
|
|
(25)
|
|
|
|
|
|
|
Total
|
$
2,094
|
|
$
1,680
|
|
|
|
|
|
|
Segment EBITDA(1):
|
|
|
|
|
Polyurethanes
|
$
52
|
|
$
26
|
|
Performance
Products
|
60
|
|
63
|
|
Advanced
Materials
|
33
|
|
10
|
|
Textile
Effects
|
-
|
|
(11)
|
|
Pigments
|
28
|
|
(29)
|
|
Corporate, LIFO
and other
|
(207)
|
|
(26)
|
|
Discontinued
operations(2)
|
(21)
|
|
(3)
|
|
|
|
|
|
|
Total
|
$
(55)
|
|
$
30
|
|
|
|
|
|
|
Segment Adjusted EBITDA(1)
:
|
|
|
|
|
Polyurethanes
|
$
52
|
|
$
27
|
|
Performance
Products
|
60
|
|
63
|
|
Advanced
Materials
|
31
|
|
10
|
|
Textile
Effects
|
-
|
|
(11)
|
|
Pigments
|
29
|
|
(16)
|
|
Corporate, LIFO
and other
|
(49)
|
|
(16)
|
|
Total
|
$
123
|
|
$
57
|
|
|
|
|
|
|
See end of press release for footnote
explanations
|
|
|
|
|
|
|
|
Three months ended
March 31,
|
|
|
2010 vs.
2009
|
|
Period-Over-Period
|
Average Selling
Price(a)
|
|
Sales
|
|
Increase
(Decrease)
|
Local
|
|
Currency
|
|
Volume(a)
|
|
|
|
|
|
|
|
|
Polyurethanes
|
34%
|
|
3%
|
|
(11)%
|
|
Performance
Products
|
1%
|
|
3%
|
|
21%
|
|
Advanced
Materials(b)
|
(9)%
|
|
3%
|
|
27%
|
|
Textile
Effects
|
4%
|
|
4%
|
|
18%
|
|
Pigments
|
1%
|
|
3%
|
|
33%
|
|
Total
Company(b)
|
12%
|
|
4%
|
|
7%
|
|
|
|
|
|
|
|
|
(a) Excludes revenues and sales
volumes from tolling and by-products
(b) Excludes APAO business sold July
31, 2009
|
|
|
|
|
|
|
|
Three Months Ended March 31,
2010 Compared to Three Months Ended March 31, 2009
Revenues for the three months ended March
31, 2010 increased to $2,094
million from $1,680 million
for the same period in 2009. Revenues increased primarily due
to higher sales volumes in all divisions with the exception of
Polyurethanes which was impacted by a planned maintenance outage at
our Port Neches, Texas PO/MTBE
facility and higher average selling prices in all divisions with
the exception of Advanced Materials. For the three months
ended March 31, 2010, Adjusted EBITDA
was $123 million compared to
$57 million for the same period in
2009.
Starting in the first quarter of 2010, we reclassed the impact
of LIFO inventory accounting gains and losses from our Performance
Products division into Corporate, LIFO and Other. All prior
period segment results have been conformed to this presentation.
This reclass has no impact on the total Adjusted EBITDA or
Adjusted net earnings of our company; however, we believe it
provides greater transparency to the underlying operating results
of our Performance Products division.
Polyurethanes
The increase in revenues in our Polyurethanes division for the
three months ended March 31, 2010
compared to the same period in 2009 was primarily due to higher MDI
sales volumes and higher average selling prices for MTBE. MDI
sales volumes were higher with demand recovery across all major
markets as a result of the worldwide economic recovery while
average selling prices for MTBE increased in response to higher raw
material costs and tight supply due in part to a 60-day planned
maintenance outage at our Port Neches,
Texas PO/MTBE facility. PO/MTBE sales volumes
decreased due to the planned outage. Average MDI selling
prices decreased primarily due to competitive pressures and lower
raw material costs. The increase in Adjusted EBITDA was
primarily due to higher MDI sales volumes partially offset by the
approximate $40 million impact of the
planned maintenance outage at our Port
Neches, Texas PO/MTBE facility.
Performance Products
The increase in revenues in our Performance Products division
for the three months ended March 31,
2010 compared to the same period in 2009 was due to higher
sales volumes and higher average selling prices. Sales
volumes increased primarily due to higher demand across nearly all
product groups and additional sales of a portion of our ethylene
glycol production no longer tolled. Average selling prices
increased as a result of the strength of major European currencies
and the Australian dollar against the U.S. dollar and in response
to higher raw material costs. The decrease in Adjusted EBITDA
was primarily due to unplanned mechanical shut downs resulting in
approximately $11 million of higher
costs.
Advanced Materials
The increase in revenues in our Advanced Materials division for
the three months ended March 31, 2010
compared to the same period in 2009 was due to higher sales volumes
partially offset by lower average selling prices. Sales
volumes increased primarily due to the worldwide economic recovery.
Average selling prices decreased in our specialty components
business primarily as a result of changes in our product mix and
competitive pressure in the wind generation and coating systems
markets. Average selling prices decreased in our base resins
business primarily due to lower raw material costs. There was no
change in average selling prices within our formulation systems
business. The increase in Adjusted EBITDA was primarily due
to higher sales volumes across our businesses, higher contribution
margins in our core formulations systems and specialty components
businesses and lower fixed costs.
Textile Effects
The increase in revenues in our Textile Effects division for the
three months ended March 31, 2010
compared to the same period in 2009 was due to higher sales volumes
and higher average selling prices. Sales volumes increased
across all business lines and in all regions primarily due to the
worldwide economic recovery. Average selling prices increased
primarily due to the strength of the Euro, Indian Rupee and
Brazilian Real against the U.S. dollar as well as favorable changes
in product mix. The increase in Adjusted EBITDA was primarily
due to higher sales volumes and higher contribution margins
partially offset by higher fixed costs in part due to our second
quarter 2009 acquisition of Baroda.
Pigments
The increase in revenues in our Pigments division for the three
months ended March 31, 2010 compared
to the same period in 2009 was due to higher sales volumes and
higher average selling prices. Sales volumes increased
primarily due to demand recovery in all regions as a result of the
worldwide economic recovery. Average selling prices increased
as a result of the strength of major European currencies against
the U.S. dollar and higher local currency selling prices in
Asia, Africa, Latin
America and Middle East
regions. The increase in Adjusted EBITDA in our Pigments
division was primarily due to higher sales volumes, lower raw
material and energy costs and the benefits of recent restructuring
efforts.
Corporate, LIFO and Other
Corporate and other includes 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, LIFO inventory
valuation reserve adjustments and non-operating income and expense.
The decrease in Adjusted EBITDA from Corporate and other for the
three months ended March 31, 2010
compared to the same period in 2009 resulted primarily from an
increase of LIFO inventory valuation expense of $30 million.
Income Taxes
During the three months ended March 31,
2010, we recorded an income tax benefit of $34 million compared to $138 million of income tax expense in the same
period of 2009. Our adjusted effective tax rate for the first
quarter 2010 was a benefit of approximately 45%. We have tax
valuation allowances in countries such as Switzerland and the United Kingdom where our Textile Effects and
Pigments businesses have meaningful operations. As these
businesses return to greater levels of profitability we expect
these tax valuation allowances to eventually be removed. In
the mean time, we expect our income tax rate to be fairly volatile.
We expect our long term effective income tax rate to be
approximately 30 - 35%; however, for 2010 our adjusted income tax
rate could be as high as 100%. This unusual income tax rate
caused by the tax valuation allowances has no impact on our cash
taxes. During the first quarter of 2010 we paid $8 million in cash for income taxes and expect a
long term cash tax rate of approximately 20%.
Liquidity, Capital Resources and Outstanding Debt
As of March 31, 2010, we had
$1,468 million of combined cash and
unused borrowing capacity compared to $2,510
million at December 31, 2009.
The decrease was primarily attributable to the repurchase of
convertible notes of $382 million and
the reduction in unused bank credit facilities of $450 million.
Beginning January 1, 2010, as a
result of changes in accounting guidelines outstanding borrowings
related to the sales of accounts receivable under our accounts
receivable programs are accounted for as secured borrowings.
Excluding the impact of this change, our primary working
capital (accounts receivable, inventory and accounts payable)
increased which created a use of cash of $57
million in the first quarter of 2010. Total capital
expenditures were $37 million during
the first quarter of 2010 compared to $61
million for the same period in 2009. In addition, we
used additional cash in the first quarter to fund normal seasonal
items and the planned maintenance outage at our Port Neches, Texas PO/MTBE facility. We
expect to spend between $250 and $275
million on capital expenditures in 2010.
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 we continue to respond to requests of the
arbitration panel, based on preliminary rulings to date, the
current maximum amount of remaining recoveries will not exceed
approximately $170 million. Any
additional 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. The convertible notes would
have been convertible into approximately 31.8 million shares of
Huntsman common stock. This early extinguishment of the
convertible notes resulted in a loss on extinguishment of debt of
approximately $146 million in the
first quarter of 2010.
On March 9, 2010, we entered into
an amendment to our existing bank credit facilities. Among
other things the amendment limits the aggregate amount of revolving
commitments allowable under the revolving credit facility to an
amount up to $300 million, including
$225 million currently committed by
our lenders and extends the maturity to 2014. As of
March 31, 2010 we had no borrowings
however, we had approximately $40
million (U.S. dollar equivalents) of letters of credit and
bank guarantees issued and outstanding under our revolving credit
facility
On March 17, 2010, we completed a
$350 million offering of senior
subordinated notes due 2020 through our wholly owned subsidiary,
Huntsman International LLC. We used the net proceeds of the
notes to refinance approximately euro 184
million of senior subordinated notes due 2013 and
approximately euro 59 million of
senior subordinated notes due 2015.
On April 26, 2010, we prepaid
$164 million of outstanding Term
Loans.
Below is our outstanding debt:
|
March
31,
|
|
December
31,
|
|
In millions
|
|
2010
|
|
2009(a)
|
|
|
|
|
|
|
Debt:
|
|
|
|
|
Senior Credit
Facilities
|
$
1,950
|
|
$
1,968
|
|
Accounts
Receivable Programs(a)
|
242
|
|
254
|
|
Senior
Notes
|
438
|
|
434
|
|
Subordinated
Notes
|
1,268
|
|
1,294
|
|
Other
Debt
|
277
|
|
280
|
|
Convertible
Notes
|
-
|
|
236
|
|
Total Debt - excluding
affiliates
|
4,175
|
|
4,466
|
|
|
|
|
|
|
Total Cash
|
1,118
|
|
1,750
|
|
|
|
|
|
|
Net Debt- excluding
affiliates
|
$
3,057
|
|
$
2,716
|
|
(a) Effective
January 1, 2010, as a result of changes in accounting guidelines,
our off-
balance sheet accounts receivable securitization
programs are now reported on
balance sheet as secured debt. December 31, 2009
figures are presented on
a pro-forma basis to reflect this change.
|
|
|
|
|
|
|
Huntsman
Corporation
|
|
Reconciliation of
Adjustments
|
|
|
|
|
EBITDA
|
|
Net Income (Loss)
Attributable to Huntsman Corporation
|
|
Diluted Income
(Loss) Per Share
|
|
|
Three months ended
March 31,
|
|
Three months ended
March 31,
|
|
Three months ended
March 31,
|
|
In millions, except per
share
amounts
|
|
2010
|
|
2009
|
|
2010
|
|
2009
|
|
2010
|
|
2009
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP
|
$ (55)
|
|
$ 30
|
|
$ (172)
|
|
$ (290)
|
|
$
(0.73)
|
|
$
(1.24)
|
|
Adjustments:
|
|
|
|
|
|
|
|
|
|
|
|
|
Loss on accounts
receivable
securitization programs
|
-
|
|
4
|
|
-
|
|
-
|
|
-
|
|
-
|
|
Unallocated
foreign currency gain
|
(1)
|
|
(2)
|
|
(6)
|
|
-
|
|
(0.03)
|
|
-
|
|
Loss on early
extinguishment of debt
|
155
|
|
-
|
|
143
|
|
-
|
|
0.61
|
|
-
|
|
Other
restructuring, impairment and
plant closing costs
|
3
|
|
14
|
|
2
|
|
14
|
|
0.01
|
|
0.06
|
|
Expenses
associated with the
Terminated Merger and related
litigation
|
-
|
|
7
|
|
-
|
|
4
|
|
-
|
|
0.02
|
|
Discount
amortization on settlement
financing associated with the
Terminated Merger
|
-
|
|
-
|
|
4
|
|
-
|
|
0.02
|
|
-
|
|
Acquisition
related expenses
|
-
|
|
1
|
|
-
|
|
1
|
|
-
|
|
-
|
|
Loss from
discontinued operations,
net of tax(2)
|
21
|
|
3
|
|
13
|
|
4
|
|
0.06
|
|
0.02
|
|
Adjusted(1)
|
$ 123
|
|
$ 57
|
|
$
(16)
|
|
$ (267)
|
|
$
(0.07)
|
|
$
(1.14)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Discontinued operations
|
$ (21)
|
|
$ (3)
|
|
$
(13)
|
|
$
(4)
|
|
$
(0.06)
|
|
$
(0.02)
|
|
Restructuring,
impairment and plant
closing costs
|
5
|
|
-
|
|
3
|
|
-
|
|
0.01
|
|
-
|
|
Loss (gain) on
disposition of assets
|
8
|
|
(4)
|
|
5
|
|
(3)
|
|
0.02
|
|
(0.01)
|
|
Gain on hurricane
insurance
settlement
|
(7)
|
|
-
|
|
(4)
|
|
-
|
|
(0.02)
|
|
-
|
|
Adjusted discontinued
operations(1)(2)
|
$ (15)
|
|
$ (7)
|
|
$
(9)
|
|
$
(7)
|
|
$
(0.04)
|
|
$
(0.03)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total - adjusted continuing
and
discontinued
operations
|
$ 108
|
|
$ 50
|
|
$
(25)
|
|
$ (274)
|
|
$
(0.11)
|
|
$
(1.17)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
In millions
|
|
Three months ended
December 31, 2009
|
|
|
|
|
Net income attributable to Huntsman
Corporation
|
66
|
|
Interest expense, net
|
60
|
|
Income tax benefit from continuing
operations
|
(73)
|
|
Income tax benefit from discontinued
operations(2)
|
(10)
|
|
Depreciation and
amortization
|
104
|
|
EBITDA(1)
|
$ 147
|
|
|
|
|
|
EBITDA
|
|
Net Income
(Loss)
Attributable to
Huntsman Corporation
|
|
Diluted Income
(Loss)
Per
Share
|
|
In millions, except per
share
amounts
|
|
Three months
ended
December 31, 2009
|
|
Three months
ended
December 31, 2009
|
|
Three months
ended
December 31, 2009
|
|
|
|
|
|
|
|
|
GAAP
|
$ 147
|
|
$
66
|
|
$
0.26
|
|
Adjustments:
|
|
|
|
|
|
|
Loss on accounts
receivable
securitization programs
|
10
|
|
-
|
|
-
|
|
Unallocated
foreign currency gain
|
(1)
|
|
(3)
|
|
(0.01)
|
|
Other
restructuring, impairment
and plant closing costs
|
5
|
|
4
|
|
0.01
|
|
Discount
amortization on
settlement financing associated
with the Terminated Merger
|
-
|
|
5
|
|
0.02
|
|
Acquisition
related income
|
(9)
|
|
(6)
|
|
(0.02)
|
|
Loss from
discontinued
operations, net of tax(2)
|
28
|
|
19
|
|
0.07
|
|
Extraordinary gain
on the
acquisition of a business, net of
tax(3)
|
(6)
|
|
(6)
|
|
(0.02)
|
|
Adjusted
|
$ 174
|
|
$
79
|
|
$
0.31
|
|
|
|
|
|
|
|
|
Discontinued operations
|
$ (28)
|
|
$
(19)
|
|
$
(0.07)
|
|
Other
restructuring, impairment
and plant closing costs
|
8
|
|
3
|
|
0.01
|
|
Gain on
disposition of assets
|
(6)
|
|
(4)
|
|
(0.01)
|
|
Loss on partial
fire insurance
settlement
|
17
|
|
11
|
|
0.04
|
|
Adjusted discontinued
operations(2)
|
$
(9)
|
|
$
(9)
|
|
$
(0.03)
|
|
Total - adjusted continuing
and
discontinued
operations
|
$ 165
|
|
$
70
|
|
$
0.27
|
|
|
|
|
|
|
|
|
See end of press release for footnote
explanations
|
|
|
|
|
|
|
|
|
Conference Call Information
We will hold a conference call to discuss our 2010 first quarter
results on Friday, May 7, 2010 at
10:00 a.m. ET.
Call-in number for
U.S. participants:
|
(888) 713 -
4209
|
|
Call-in number for
international participants:
|
(617) 213 -
4863
|
|
Participant access
code:
|
75478626
|
|
|
|
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=PAUV3KHBY
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
May 7, 2010 and ending May 14, 2010.
Call-in numbers
for the replay:
|
|
|
Within the U.S.:
|
(888) 286 -
8010
|
|
International:
|
(617) 801 -
6888
|
|
Access code for
replay:
|
97188446
|
|
|
|
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)
attributable to Huntsman Corporation 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
March 31,
|
|
In millions
|
|
2010
|
|
2009
|
|
|
|
|
|
|
Net loss from discontinued operations,
net of tax
|
$
(13)
|
|
$
(4)
|
|
Income tax
(benefit) expense
|
(8)
|
|
1
|
|
EBITDA from discontinued
operations
|
(21)
|
|
(3)
|
|
Restructuring,
impairment and plant closing costs
|
5
|
|
-
|
|
Loss (gain) on
disposition of assets
|
8
|
|
(4)
|
|
Gain on hurricane
insurance settlement
|
(7)
|
|
-
|
|
Adjusted EBITDA from discontinued
operations
|
$
(15)
|
|
$
(7)
|
|
|
|
|
|
|
|
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) attributable to Huntsman Corporation is set forth in
the Reconciliation of Adjustments table above.
|
|
|
|
|
(2)
|
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. Division EBITDA from
discontinued operations only includes the results of our U.S. base
chemicals and U.S. polymers businesses. During the first
quarter 2010 we closed our Australian styrenics
operations.
|
|
|
|
|
(3)
|
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.
|
|
|
|
SOURCE Huntsman Corporation