THE WOODLANDS, Texas,
Aug. 5 /PRNewswire-FirstCall/ --
(NYSE: HUN)
Second Quarter 2010 Highlights
- Revenues for the second quarter of 2010 were $2,343 million, an increase of 27% compared to
$1,846 million for the same period in
2009 and an increase of 12% compared to $2,094 million for the first quarter of
2010.
- Adjusted EBITDA for the second quarter of 2010 was $257 million compared to $93 million for the same period in 2009 and
$123 million for the first quarter of
2010.
- Net income attributable to Huntsman Corporation for the second
quarter of 2010 was $114 million or
$0.47 per diluted share. This
compares to net income attributable to Huntsman Corporation of
$406 million or $1.51 per diluted share for the same period in
2009 (including $531 million of net
income or $2.27 per diluted share
related to our terminated merger and related litigation) and
$172 million loss or $0.73 loss per diluted share for the first
quarter of 2010.
- Adjusted net income for the second quarter of 2010 was
$75 million or $0.31 per diluted share. This compares to
an adjusted net loss of $66 million
or $0.28 loss per diluted share for
the same period in 2009 and adjusted net loss of $16 million or $0.07 loss per diluted share for the first
quarter of 2010.
- Adjusted net income and adjusted EBITDA for the second quarter
2010 includes a non-recurring $15
million pre-tax benefit to appropriately reflect our
investment in the Sasol-Huntsman maleic anhydride joint venture.
Adjusted net income also includes a $15 million pre-tax one time reduction to
interest expense related to a cross currency swap. The
combined effect of these non-recurring items was approximately
$0.09 per diluted share.
Summarized earnings are as follows:
|
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Three months ended June
30,
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Three months ended
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Six months ended June
30,
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In millions, except per share
amounts
|
|
2010
|
|
2009
|
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March 31, 2010
|
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2010
|
|
2009
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss) attributable
to Huntsman Corporation
|
|
$ 114
|
|
$ 406
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|
$ (172)
|
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$ (58)
|
|
$ 116
|
|
Adjusted net income
(loss)(1)
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|
$
75
|
|
$ (66)
|
|
$ (16)
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|
$ 59
|
|
$ (333)
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|
|
|
|
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|
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|
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Diluted income (loss) per
share
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$ 0.47
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$ 1.51
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|
$ (0.73)
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|
$ (0.25)
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|
$ 0.47
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Adjusted diluted income (loss)
per share(1)
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|
$ 0.31
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$ (0.28)
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|
$ (0.07)
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|
$ 0.25
|
|
$ (1.42)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EBITDA(1)
|
|
$ 331
|
|
$ 874
|
|
$ (55)
|
|
$ 276
|
|
$ 904
|
|
Adjusted EBITDA(1)
|
|
$ 257
|
|
$ 93
|
|
$ 123
|
|
$ 380
|
|
$ 150
|
|
|
|
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See end of press release for
footnote explanations
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Recent Highlights
- On April 26, 2010, we prepaid
$164 million of bank term debt.
- On June 22, 2010, we prepaid
$110 million of bank term debt.
The pre-payment was equivalent to the amount we received from
our reinsurance carriers in settlement of our unpaid claims arising
out of the April 29, 2006 fire at our
Port Arthur, Texas, olefins
facility.
Peter R. Huntsman, our President
and CEO, commented:
"The second quarter of 2010 was a strong quarter for us, the
combination of a number of conditions resulted in adjusted earnings
we haven't seen since 2007. We saw strong underlying demand
for our products as volumes grew across all of our businesses
compared to the prior year as well as the prior quarter. We
increased selling prices to offset recent pressure in raw material
costs. In addition, the benefits of our successful cost
saving efforts implemented in 2009 are evident in the bottom
line."
He continued, "The third quarter is traditionally slower than
the second within the chemical industry; notwithstanding this,
we believe there is still significant long term upside to our
business earnings. North American and European economies,
which represent approximately two thirds of our volume, still show
relatively modest growth. We continue to have idle capacity
in many of our products that will be more fully utilized as demand
improves. We are excited about the future of HUN and will
continue our efforts to improve earnings in every division of the
company."
Huntsman
Corporation
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Operating Results
|
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|
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Three months ended June
30,
|
|
Six months ended June
30,
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In millions, except per share
amounts
|
|
2010
|
|
2009
|
|
2010
|
|
2009
|
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|
|
|
|
|
|
|
|
|
|
Revenues
|
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$2,343
|
|
$1,846
|
|
$4,437
|
|
$3,526
|
|
Cost of goods
sold
|
|
1,958
|
|
1,613
|
|
3,771
|
|
3,144
|
|
Gross profit
|
|
385
|
|
233
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|
666
|
|
382
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|
Operating expenses
|
|
241
|
|
233
|
|
497
|
|
455
|
|
Restructuring, impairment and
plant closing costs
|
|
17
|
|
62
|
|
20
|
|
76
|
|
Operating income
(loss)
|
|
127
|
|
(62)
|
|
149
|
|
(149)
|
|
Interest expense, net
|
|
(43)
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(58)
|
|
(104)
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(113)
|
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Loss on accounts receivable
securitization programs
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-
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(6)
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-
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(10)
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Equity in income of investment
in unconsolidated affiliates
|
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16
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|
1
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17
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|
2
|
|
Loss on early extinguishment of
debt
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(7)
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-
|
|
(162)
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-
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(Expenses) income associated
with the terminated merger and related litigation
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(1)
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844
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(1)
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837
|
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Other income
|
|
1
|
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-
|
|
1
|
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-
|
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Income (loss) before income
taxes
|
|
93
|
|
719
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(100)
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567
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Income tax expense
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(39)
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(311)
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(5)
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(449)
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Income (loss) from continuing
operations
|
|
54
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|
408
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(105)
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118
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|
Income (loss) from discontinued
operations, net of tax(2)
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62
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|
(2)
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|
49
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(6)
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Net income (loss)
|
|
116
|
|
406
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|
(56)
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112
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Less net (income) loss
attributable to noncontrolling interests
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(2)
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-
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(2)
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4
|
|
Net income (loss) attributable
to Huntsman Corporation
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$ 114
|
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$ 406
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$ (58)
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$ 116
|
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|
|
|
|
|
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|
|
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|
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Net income (loss) attributable
to Huntsman Corporation
|
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$ 114
|
|
$ 406
|
|
$ (58)
|
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$ 116
|
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Interest expense, net
|
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43
|
|
58
|
|
104
|
|
113
|
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Income tax expense from
continuing operations
|
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39
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311
|
|
5
|
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449
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Income tax expense (benefit)
from discontinued operations(1)(2)
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37
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(1)
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29
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-
|
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Depreciation and amortization of
continuing operations
|
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97
|
|
99
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195
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225
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|
Depreciation and amortization of
discontinued operations
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1
|
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1
|
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1
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|
1
|
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EBITDA(1)
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$ 331
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$ 874
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$ 276
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$ 904
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Adjusted
EBITDA(1)
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$ 257
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$ 93
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$ 380
|
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$ 150
|
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Basic income (loss) per
share
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$ 0.48
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$ 1.74
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$ (0.25)
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$ 0.50
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Diluted income (loss) per
share
|
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$ 0.47
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$ 1.51
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$ (0.25)
|
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$ 0.47
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Adjusted diluted income (loss)
per share(1)
|
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$ 0.31
|
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$ (0.28)
|
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$ 0.25
|
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$ (1.42)
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Common share
information:(3)
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Basic shares
outstanding
|
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236.4
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234.0
|
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235.6
|
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233.8
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Diluted shares
|
|
240.8
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271.3
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235.6
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268.8
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Diluted shares for adjusted
diluted income (loss) per share
|
|
240.8
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234.0
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240.8
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233.8
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See end of press release
for footnote
explanations
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Huntsman
Corporation
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Segment Results
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|
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Three months ended June
30,
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|
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Six months ended June
30,
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In millions
|
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2010
|
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2009
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2010
|
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2009
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Segment Revenues:
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Polyurethanes
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$ 932
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|
$
695
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$ 1,699
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$
1,295
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|
Performance Products
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|
669
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482
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1,285
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|
982
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Advanced Materials
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320
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255
|
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611
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512
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Textile Effects
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213
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179
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|
|
408
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|
331
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Pigments
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287
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254
|
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|
|
556
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|
450
|
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Eliminations and
other
|
|
(78)
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|
(19)
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(122)
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(44)
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|
|
|
|
|
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Total
|
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$ 2,343
|
|
$
1,846
|
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$ 4,437
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$
3,526
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|
|
|
|
|
|
|
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Segment EBITDA(1):
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|
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Polyurethanes
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$
70
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|
$
86
|
|
|
|
$ 122
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$
112
|
|
Performance Products
|
|
116
|
|
31
|
|
|
|
176
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94
|
|
Advanced Materials
|
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52
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(1)
|
|
|
|
85
|
|
9
|
|
Textile Effects
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(7)
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|
(20)
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|
|
(7)
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|
(31)
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|
Pigments
|
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47
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|
(26)
|
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|
|
75
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|
(55)
|
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Corporate, LIFO and
other
|
|
(47)
|
|
806
|
|
|
|
(254)
|
|
780
|
|
Discontinued
operations(2)
|
|
100
|
|
(2)
|
|
|
|
79
|
|
(5)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
|
|
$ 331
|
|
$
874
|
|
|
|
$ 276
|
|
$
904
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Segment Adjusted EBITDA(1)
:
|
|
|
|
|
|
|
|
|
|
|
|
Polyurethanes
|
|
$
71
|
|
$
87
|
|
|
|
$ 123
|
|
$
114
|
|
Performance Products
|
|
116
|
|
31
|
|
|
|
176
|
|
94
|
|
Advanced Materials
|
|
52
|
|
14
|
|
|
|
83
|
|
24
|
|
Textile Effects
|
|
8
|
|
(10)
|
|
|
|
8
|
|
(21)
|
|
Pigments
|
|
49
|
|
4
|
|
|
|
78
|
|
(12)
|
|
Corporate, LIFO and
other
|
|
(39)
|
|
(33)
|
|
|
|
(88)
|
|
(49)
|
|
Total
|
|
$ 257
|
|
$
93
|
|
|
|
$ 380
|
|
$
150
|
|
|
|
|
|
|
|
|
|
|
|
|
|
See end of press
release for footnote
explanations
|
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|
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Three months ended June
30,
|
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Six months ended June
30,
|
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|
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2010 vs. 2009
|
|
2010 vs. 2009
|
|
Period-Over-Period
|
|
Average Selling
Price(a)
|
|
|
|
Average Selling
Price(a)
|
|
|
|
Increase (Decrease)
|
|
Local
|
|
Foreign Currency
|
|
Sales
|
|
Local
|
|
Foreign Currency
|
|
Sales
|
|
|
|
Currency
|
|
Translation Impact
|
|
Volume(a)
|
|
Currency
|
|
Translation Impact
|
|
Volume(a)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Polyurethanes
|
|
11%
|
|
0%
|
|
17%
|
|
21%
|
|
1%
|
|
3%
|
|
Performance Products
|
|
12%
|
|
0%
|
|
27%
|
|
6%
|
|
2%
|
|
24%
|
|
Advanced Materials(b)
|
|
6%
|
|
0%
|
|
25%
|
|
(2)%
|
|
2%
|
|
26%
|
|
Textile Effects
|
|
6%
|
|
2%
|
|
10%
|
|
5%
|
|
3%
|
|
14%
|
|
Pigments
|
|
7%
|
|
(1)%
|
|
7%
|
|
4%
|
|
1%
|
|
18%
|
|
Total Company(b)
|
|
7%
|
|
0%
|
|
19%
|
|
9%
|
|
2%
|
|
13%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(a) Excludes revenues and sales
volumes from tolling and by-products
|
|
(b) Excludes APAO business sold
July 31, 2009
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended June 30,
2010 Compared to Three Months Ended June 30, 2009
Revenues for the three months ended June
30, 2010 increased to $2,343
million from $1,846 million
for the same period in 2009. Revenues increased due to higher
sales volumes and higher selling prices in all divisions. For
the three months ended June 30, 2010,
Adjusted EBITDA was $257 million compared to $93 million for the same period in 2009.
Polyurethanes
The increase in revenues in our Polyurethanes division for the
three months ended June 30, 2010
compared to the same period in 2009 was primarily due to higher
average selling prices and higher sales volumes. Average
selling prices for MDI and PO/MTBE increased in response to higher
raw material costs. MDI sales volumes increased as a result
of improved demand in all regions and across all major markets with
the exception of appliances, while PO/MTBE sales volumes increased
generally due to improved demand. The decrease in Adjusted
EBITDA was primarily due to lower PO/MTBE margins partially offset
by higher MDI margins.
Performance Products
The increase in revenues in our Performance Products division
for the three months ended June 30,
2010 compared to the same period in 2009 was due to higher
average selling prices and higher sales volumes. Average
selling prices increased across almost all product groups primarily
in response to higher raw materials costs. Sales volumes
increased primarily due to higher demand across all product groups
and additional sales of ethylene glycol which had previously been
produced under tolling arrangements. The increase in Adjusted
EBITDA was primarily due to higher sales volumes and higher
contribution margins. In addition, equity income from
investment in unconsolidated affiliates for the three months ended
June 30, 2010 increased to
$16 million compared to $1 million in the 2009 period. During the
second quarter of 2010, we recorded a non-recurring $15 million credit to appropriately reflect our
investment in the Sasol-Huntsman GmbH and Co. KG Maleic Anhydride
joint venture.
Advanced Materials
The increase in revenues in our Advanced Materials division for
the three months ended June 30, 2010
compared to the same period in 2009 was due to higher sales volumes
and higher average selling prices. Sales volumes increased in
all regions of the world and across almost all product groups
primarily due to the worldwide economic recovery. Average
selling prices increased in our base resins business primarily in
response to higher raw material costs and reduced product
availability in the epoxy resin market, partially offset by lower
average selling prices in our specialty components and formulations
markets primarily as a result of changes in our product mix and
competitive market pressure. The increase in Adjusted EBITDA was
primarily due to higher sales volumes, higher contribution margins
and lower fixed costs.
Textile Effects
The increase in revenues in our Textile Effects division for the
three months ended June 30, 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 favorable changes in product mix and the strength
of the Indian Rupee and Brazilian Real against the U.S. dollar.
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 June 30, 2010 compared
to the same period in 2009 was due to higher average selling prices
and higher sales volumes. Average selling prices increased
primarily as a result of price increase initiatives in all regions
of the world partially offset by the strength of the U.S. dollar
against major European currencies. Sales volumes increased
primarily due to demand recovery in Europe and North
America. The increase in Adjusted EBITDA in our
Pigments division was primarily due to higher contribution margins,
higher sales volumes and the benefits of recent restructuring
efforts.
Corporate, LIFO and Other
Corporate, LIFO 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, LIFO inventory valuation reserve adjustments
and non-operating income and expense. The decrease in Adjusted
EBITDA from Corporate, LIFO and Other for the three months ended
June 30, 2010 compared to the same
period in 2009 resulted primarily from an increase of LIFO
inventory valuation expense of $3
million.
Income Taxes
During the three months ended June 30,
2010, we recorded income tax expense of $39 million compared to $311 million of income tax expense in the same
period of 2009. Our adjusted effective tax rate for the
second quarter of 2010 was approximately 40%. 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 meantime, we expect our income tax rate to be fairly volatile.
We expect our long term effective income tax rate to be
approximately 30 - 35%. Unusual income tax rates caused by
valuation allowances have no impact on our cash taxes. During
the second quarter of 2010 we paid $2
million in cash for income taxes. We expect our cash
tax rate to continue to be significantly less than our effective
income tax rate.
Liquidity, Capital Resources and Outstanding Debt
As of June 30, 2010, we had
$1,185 million of combined cash and
unused borrowing capacity compared to $2,510
million at December 31, 2009.
The decrease from year end was primarily attributable to the
reduction in unused bank credit facilities of $450 million, the repurchase of convertible notes
of $382 million, repayment of
$185 million of bank term debt, and
an increase in primary working capital of $340 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 due in part to increased demand, higher prices, partially
offset by the strength of the U.S. dollar against major European
currencies. Total capital expenditures were $41 million during the second quarter of 2010
compared to $39 million for the same
period in 2009. We expect to spend between $225 and $250 million on capital expenditures in
2010.
On April 26, 2010, we prepaid
$164 million of bank term debt.
On June 22, 2010, we prepaid
$110 million of bank term debt.
The June pre-payment was equivalent to the amount we received
in the second quarter from our reinsurance carriers in settlement
of our claims as a result of the April 29,
2006, fire at our Port Arthur,
Texas, olefins facility.
Below is our outstanding debt:
|
|
|
June 30,
|
|
|
December 31,
|
|
|
In millions
|
|
2010
|
|
|
2009(a)
|
|
|
|
|
|
|
|
|
|
|
Debt:
|
|
|
|
|
|
|
|
Senior Credit
Facilities
|
|
$ 1,685
|
|
|
$
1,968
|
|
|
Accounts Receivable
Programs(a)
|
|
226
|
|
|
254
|
|
|
Senior Notes
|
|
442
|
|
|
434
|
|
|
Subordinated Notes
|
|
1,234
|
|
|
1,294
|
|
|
Other Debt
|
|
280
|
|
|
280
|
|
|
Convertible Notes
|
|
-
|
|
|
236
|
|
|
Total Debt - excluding
affiliates
|
|
3,867
|
|
|
4,466
|
|
|
|
|
|
|
|
|
|
|
Total Cash
|
|
773
|
|
|
1,750
|
|
|
|
|
|
|
|
|
|
|
Net Debt- excluding
affiliates
|
|
$ 3,094
|
|
|
$
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
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Income (Loss)
|
|
Diluted Income
(Loss)
|
|
|
|
EBITDA
|
|
Attributable to Huntsman
Corporation
|
|
Per Share
|
|
|
|
Three months ended June
30,
|
|
Three months ended June
30,
|
|
Three months ended June
30,
|
|
In millions, except per share
amounts
|
|
2010
|
|
2009
|
|
2010
|
|
2009
|
|
2010
|
|
2009
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP
|
|
$ 331
|
|
$ 874
|
|
$ 114
|
|
$ 406
|
|
$ 0.47
|
|
$ 1.51
|
|
Adjustments:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loss on accounts receivable
securitization programs
|
|
-
|
|
6
|
|
-
|
|
-
|
|
-
|
|
-
|
|
Unallocated foreign currency
(gain) loss
|
|
-
|
|
(7)
|
|
(4)
|
|
3
|
|
(0.02)
|
|
0.01
|
|
Loss on early extinguishment of
debt
|
|
7
|
|
-
|
|
4
|
|
-
|
|
0.02
|
|
-
|
|
Other restructuring, impairment
and plant closing costs
|
|
17
|
|
62
|
|
17
|
|
54
|
|
0.07
|
|
0.23
|
|
Expenses (income) associated
with the terminated merger and related litigation
|
|
1
|
|
(844)
|
|
1
|
|
(531)
|
|
-
|
|
(2.27)
|
|
Discount amortization on
settlement financing associated with the terminated
merger
|
|
-
|
|
-
|
|
4
|
|
-
|
|
0.02
|
|
-
|
|
Acquisition related
expenses
|
|
1
|
|
-
|
|
1
|
|
-
|
|
-
|
|
-
|
|
(Income) loss from discontinued
operations, net of tax(2)
|
|
(100)
|
|
2
|
|
(62)
|
|
2
|
|
(0.26)
|
|
0.01
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted(1)
|
|
$ 257
|
|
$ 93
|
|
$ 75
|
|
$ (66)
|
|
$ 0.31
|
|
$ (0.28)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Discontinued
operations
|
|
$ 100
|
|
$ (2)
|
|
$ 62
|
|
$ (2)
|
|
$ 0.26
|
|
$ (0.01)
|
|
Restructuring, impairment and
plant closing costs
|
|
-
|
|
1
|
|
-
|
|
1
|
|
-
|
|
-
|
|
Loss on disposition of
assets
|
|
4
|
|
4
|
|
3
|
|
3
|
|
0.01
|
|
0.01
|
|
Gain on fire insurance
settlement
|
|
(110)
|
|
-
|
|
(71)
|
|
-
|
|
(0.29)
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted discontinued
operations(1)(2)
|
|
$ (6)
|
|
$ 3
|
|
$ (6)
|
|
$ 2
|
|
$ (0.02)
|
|
$ 0.01
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total - adjusted continuing and
discontinued operations
|
|
$ 251
|
|
$ 96
|
|
$ 69
|
|
$ (64)
|
|
$ 0.29
|
|
$ (0.27)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended March
31,
|
|
In millions
|
|
2010
|
|
|
|
|
|
Net loss attributable to
Huntsman Corporation
|
|
(172)
|
|
Interest expense, net
|
|
61
|
|
Income tax benefit from
continuing operations
|
|
(34)
|
|
Income tax benefit from
discontinued operations(2)
|
|
(8)
|
|
Depreciation and
amortization
|
|
98
|
|
|
|
|
|
EBITDA(1)
|
|
$
(55)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Income (Loss)
|
|
|
Diluted Income
(Loss)
|
|
|
|
EBITDA
|
|
|
Attributable to Huntsman
Corporation
|
|
|
Per Share
|
|
|
|
Three months ended March
31,
|
|
|
Three months ended March
31,
|
|
|
Three months ended March
31,
|
|
In millions, except per share
amounts
|
|
2010
|
|
|
|
2010
|
|
|
|
2010
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP
|
|
$
(55)
|
|
|
|
$
(172)
|
|
|
|
$
(0.73)
|
|
Adjustments:
|
|
|
|
|
|
|
|
|
|
|
|
Unallocated foreign currency
gain
|
|
(1)
|
|
|
|
(6)
|
|
|
|
(0.03)
|
|
Loss on early extinguishment of
debt
|
|
155
|
|
|
|
143
|
|
|
|
0.61
|
|
Other restructuring, impairment
and plant closing costs
|
|
3
|
|
|
|
2
|
|
|
|
0.01
|
|
Discount amortization on
settlement financing associated with the terminated
merger
|
|
-
|
|
|
|
4
|
|
|
|
0.02
|
|
Loss from discontinued
operations, net of tax(2)
|
|
21
|
|
|
|
13
|
|
|
|
0.06
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted
|
|
$
123
|
|
|
|
$
(16)
|
|
|
|
$
(0.07)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Discontinued
operations
|
|
$
(21)
|
|
|
|
$
(13)
|
|
|
|
$
(0.06)
|
|
Other restructuring, impairment
and plant closing costs
|
|
5
|
|
|
|
3
|
|
|
|
0.01
|
|
Loss on disposition of
assets
|
|
8
|
|
|
|
5
|
|
|
|
0.02
|
|
Gain on fire insurance
settlement
|
|
(7)
|
|
|
|
(4)
|
|
|
|
(0.02)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted discontinued
operations(2)
|
|
$
(15)
|
|
|
|
$
(9)
|
|
|
|
$
(0.04)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total - adjusted continuing and
discontinued operations
|
|
$
108
|
|
|
|
$
(25)
|
|
|
|
$
(0.11)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Income (Loss)
|
|
Diluted Income
(Loss)
|
|
|
|
EBITDA
|
|
Attributable To Huntsman
Corporation
|
|
Per Share
|
|
|
|
Six months ended June
30,
|
|
Six months ended June
30,
|
|
Six months ended June
30,
|
|
In millions, except per share
amounts
|
|
2010
|
|
2009
|
|
2010
|
|
2009
|
|
2010
|
|
2009
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP(2)
|
|
$
276
|
|
$ 904
|
|
$
(58)
|
|
$
116
|
|
$
(0.25)
|
|
$ 0.47
|
|
Adjustments:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loss on accounts receivable
securitization program
|
|
-
|
|
10
|
|
-
|
|
-
|
|
-
|
|
-
|
|
Unallocated foreign currency
(gain) loss
|
|
(1)
|
|
(9)
|
|
(10)
|
|
3
|
|
(0.04)
|
|
0.01
|
|
Loss on early extinguishment of
debt
|
|
162
|
|
-
|
|
147
|
|
-
|
|
0.61
|
|
-
|
|
Other restructuring, impairment
and plant closing costs
|
|
20
|
|
76
|
|
19
|
|
68
|
|
0.08
|
|
0.29
|
|
Expenses (income) associated
with the terminated merger and related litigation
|
|
1
|
|
(837)
|
|
1
|
|
(527)
|
|
-
|
|
(2.25)
|
|
Discount amortization on
settlement financing associated with the terminated
merger
|
|
-
|
|
-
|
|
8
|
|
-
|
|
0.03
|
|
-
|
|
Acquisition related
expenses
|
|
1
|
|
1
|
|
1
|
|
1
|
|
-
|
|
-
|
|
(Income) loss from discontinued
operations, net of tax(2)
|
|
(79)
|
|
5
|
|
(49)
|
|
6
|
|
(0.20)
|
|
0.03
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted(1)(2)
|
|
$
380
|
|
$ 150
|
|
$
59
|
|
$
(333)
|
|
$
0.25
|
|
$ (1.42)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Discontinued
operations
|
|
$
79
|
|
$ (5)
|
|
$
49
|
|
$
(6)
|
|
$
0.20
|
|
$ (0.03)
|
|
Restructuring, impairment and
plant closing costs
|
|
5
|
|
1
|
|
3
|
|
1
|
|
0.01
|
|
-
|
|
Loss on disposition of
assets
|
|
12
|
|
-
|
|
8
|
|
-
|
|
0.03
|
|
-
|
|
Gain on hurricane insurance
settlement
|
|
(7)
|
|
-
|
|
(7)
|
|
-
|
|
(0.03)
|
|
-
|
|
Gain on fire insurance
settlement
|
|
(110)
|
|
-
|
|
(68)
|
|
-
|
|
(0.28)
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted discontinued
operations(1)(2)
|
|
$
(21)
|
|
$ (4)
|
|
$
(15)
|
|
$
(5)
|
|
$
(0.06)
|
|
$ (0.02)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total - adjusted continuing and
discontinued operations
|
|
$
359
|
|
$ 146
|
|
$
44
|
|
$ (338)
|
|
$
0.18
|
|
$ (1.45)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
See end of press release for
footnote explanations
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Conference Call Information
We will hold a conference call to discuss our 2010 second
quarter results on Thursday, August 5,
2010 at 10:00 a.m. ET.
Call-in number for U.S.
participants:
|
(888) 713 - 4213
|
|
Call-in number for international
participants:
|
(617) 213 - 4865
|
|
Participant access
code:
|
24187331
|
|
|
|
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=P4LNJY8PF
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
August 5, 2010 and ending
August 12, 2010.
Call-in numbers for the
replay:
|
|
|
Within the U.S.:
|
(888) 286 - 8010
|
|
|
International:
|
(617) 801 - 6888
|
|
Access code for
replay:
|
71378240
|
|
|
|
|
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
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 June
30,
|
|
Six months ended June
30,
|
|
In millions
|
|
2010
|
|
2009
|
|
2010
|
|
2009
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss) from
discontinued operations, net of tax
|
$ 62
|
|
$ (2)
|
|
$ 49
|
|
$ (6)
|
|
Income tax expense
(benefit)
|
|
37
|
|
(1)
|
|
29
|
|
-
|
|
Depreciation and
amortization
|
|
1
|
|
1
|
|
1
|
|
1
|
|
EBITDA from discontinued
operations
|
|
100
|
|
(2)
|
|
79
|
|
(5)
|
|
Restructuring, impairment and
plant closing costs
|
|
-
|
|
1
|
|
5
|
|
1
|
|
Loss on disposition of
assets
|
|
4
|
|
4
|
|
12
|
|
-
|
|
Gain on hurricane insurance
settlement
|
|
-
|
|
-
|
|
(7)
|
|
-
|
|
Gain on fire insurance
settlement
|
|
(110)
|
|
-
|
|
(110)
|
|
-
|
|
Adjusted EBITDA from
discontinued operations
|
|
$ (6)
|
|
$ 3
|
|
$ (21)
|
|
$ (4)
|
|
|
|
|
|
|
|
|
|
|
|
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 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)
|
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 June
30,
|
|
Six months ended June
30,
|
|
In millions, except per share
amounts
|
|
2010
|
|
2009
|
|
2010
|
|
2009
|
|
|
|
|
|
|
|
|
|
|
|
GAAP
|
|
|
|
|
|
|
|
|
|
Net income (loss) attributable
to Huntsman Corporation
|
|
$ 114
|
|
$ 406
|
|
$ (58)
|
|
$ 116
|
|
Convertible notes interest
expense, net of tax
|
|
-
|
|
5
|
|
-
|
|
9
|
|
Net income (loss) attributable
to Huntsman Corporation and assumed conversion of notes
|
|
$ 114
|
|
$ 411
|
|
$ (58)
|
|
$ 125
|
|
|
|
|
|
|
|
|
|
|
|
Diluted shares
|
|
240.8
|
|
271.3
|
|
235.6
|
|
268.8
|
|
|
|
|
|
|
|
|
|
|
|
Diluted income (loss) per
share
|
|
$ 0.47
|
|
$ 1.51
|
|
$ (0.25)
|
|
$ 0.47
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted
|
|
|
|
|
|
|
|
|
|
Net income (loss) attributable
to Huntsman Corporation
|
|
$ 75
|
|
$ (66)
|
|
$ 59
|
|
$ (333)
|
|
Convertible notes interest
expense, net of tax
|
|
-
|
|
-
|
|
-
|
|
-
|
|
Net income (loss) attributable
to Huntsman Corporation and assumed conversion of notes
|
|
$ 75
|
|
$ (66)
|
|
$ 59
|
|
$ (333)
|
|
|
|
|
|
|
|
|
|
|
|
Diluted shares
|
|
240.8
|
|
234.0
|
|
240.8
|
|
233.8
|
|
|
|
|
|
|
|
|
|
|
|
Diluted income (loss) per
share
|
|
$ 0.31
|
|
$ (0.28)
|
|
$ 0.25
|
|
$ (1.42)
|
|
|
|
|
|
|
|
|
|
|
SOURCE Huntsman Corporation
Copyright g. 5 PR Newswire