THE WOODLANDS, Texas,
Nov. 4, 2010 /PRNewswire-FirstCall/
--
Third Quarter 2010 Highlights
- Revenues for the third quarter of 2010 were $2,401 million, an increase of 16% compared to
$2,075 million for the same period in
2009 and an increase of 2% compared to $2,343 million for the second quarter of
2010.
- Adjusted EBITDA for the third quarter of 2010 was $273 million compared to $205 million for the same period in 2009 and
$257 million for the second quarter
of 2010.
- Adjusted net income for the third quarter of 2010 was
$83 million or $0.34 per diluted share. This compares to
adjusted net loss of $48 million or
$0.21 loss per diluted share for the
same period in 2009 and adjusted net income of $75 million or $0.31 per diluted share for the second quarter of
2010.
- Net income attributable to Huntsman Corporation (NYSE: HUN) for
the third quarter of 2010 was $55
million or $0.23 per diluted
share. This compares to net loss attributable to Huntsman
Corporation of $68 million or
$0.29 loss per diluted share for the
same period in 2009 and $114 million
of income or $0.47 per diluted share
for the second quarter of 2010.
Summarized earnings are as follows:
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Three months
ended September 30,
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Three months
ended
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Nine months
ended September 30,
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In millions, except per share
amounts
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2010
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2009
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June 30,
2010
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2010
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2009
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|
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|
Net income (loss) attributable
to Huntsman Corporation
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$
55
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$ (68)
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$
114
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$
(3)
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$
48
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Adjusted net income
(loss)(1)
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$
83
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$ (48)
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$
75
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$ 142
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$ (381)
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Diluted income (loss) per
share
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$ 0.23
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$ (0.29)
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$
0.47
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$ (0.01)
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$ 0.20
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Adjusted diluted income (loss)
per share(1)
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$ 0.34
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$ (0.21)
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$
0.31
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$ 0.59
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$ (1.63)
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|
EBITDA(1)
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$ 257
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|
$ 107
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$
331
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|
$ 533
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|
$ 1,011
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Adjusted EBITDA(1)
|
|
$ 273
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|
$ 205
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|
$
257
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$ 653
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$ 355
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|
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See end of press release for
footnote explanations
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Recent Highlights
- Effective August 4, 2010, Sir
Robert Margetts was appointed as a
new director to our Board of Directors. Sir Robert currently
serves as Chairman of Ensus Limited, the Energy Technologies
Institute, and Ordnance Survey, and serves as Non-Executive
Director of Wellstream Holdings PLC and Falck Renewables PLC.
He was previously Chairman of Legal & General Group PLC
and BOC Group PLC. Sir Robert worked for ICI PLC in various levels
of increasing responsibility since 1969, where he ultimately served
as the Vice Chairman of its Main Board until 2000.
- On September 24, 2010, we
completed our $350 million offering
of senior subordinated notes due 2021 which carry an interest rate
of 8 5/8%. We used the net proceeds of the offering to
purchase euro 132 million
(approximately $177 million
equivalent) of our 6 7/8% senior subordinated notes due 2013 and
$159 million of our 7 7/8% senior
subordinated notes due 2014.
- On October 28, 2010, we priced an
issuance of an additional $180
million senior subordinated notes due 2021 at an effective
yield of approximately 7 1/4%. The closing is expected to
occur on November 12, 2010. We
expect to use the net proceeds from the offering to redeem all
$188 million of our outstanding 7
7/8% senior subordinated notes due 2014. In connection with
the redemption, we expect to record charges of approximately
$7 million in the fourth quarter
related to the early extinguishment of this debt.
Peter R. Huntsman, our President
and CEO, commented:
"I am very pleased with our earnings in the third quarter,
2010. We have seen a continuous recovery in global demand for
all of our products and margins are increasing in most product
lines. We have previously used 2007 as a benchmark for a
normalized demand environment. In the third quarter our total
company sales volumes exceeded the same period volume in 2007,
however, with a very different product and geographic profile.
As our global focus is on the further development of our
specialty products, we continue to see many opportunities for
growth."
Huntsman
Corporation
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Operating
Results
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Three months
ended
September 30,
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Nine months
ended
September 30,
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In millions, except per share
amounts
|
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2010
|
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2009
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2010
|
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2009
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|
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Revenues
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$2,401
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$2,075
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$6,838
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$5,601
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|
Cost of goods
sold
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|
1,986
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1,733
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|
5,757
|
|
4,877
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Gross profit
|
|
415
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|
342
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|
1,081
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724
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|
Operating expenses
|
|
244
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|
250
|
|
741
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|
705
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Restructuring, impairment and
plant closing costs
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|
4
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|
7
|
|
24
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|
83
|
|
Operating income
(loss)
|
|
167
|
|
85
|
|
316
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(64)
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Interest expense, net
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|
(64)
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(65)
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(168)
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(178)
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|
Loss on accounts receivable
securitization programs
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|
-
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(3)
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-
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(13)
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Equity in income (loss) of
investment in unconsolidated affiliates
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3
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(1)
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20
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1
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Loss on early extinguishment of
debt
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(7)
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(21)
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(169)
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(21)
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(Expenses) income associated
with the terminated merger and related litigation
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(3)
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(2)
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(4)
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835
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Other income
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2
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|
1
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3
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1
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Income (loss) before income
taxes
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|
98
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(6)
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(2)
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561
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Income tax expense
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(41)
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(68)
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(46)
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(517)
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Income (loss) from continuing
operations
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57
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(74)
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(48)
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44
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(Loss) income from discontinued
operations, net of tax(2)
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(1)
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6
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|
48
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-
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Net income (loss)
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56
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(68)
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-
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44
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Less net (income) loss
attributable to noncontrolling interests
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(1)
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-
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(3)
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4
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|
Net income (loss) attributable
to Huntsman Corporation
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$ 55
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$ (68)
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$
(3)
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$ 48
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|
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|
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Net income (loss) attributable
to Huntsman Corporation
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$ 55
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$ (68)
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$
(3)
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$ 48
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Interest expense, net
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64
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|
65
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168
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178
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Income tax expense from
continuing operations
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41
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68
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|
46
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|
517
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Income tax (benefit) expense
from discontinued operations(1)(2)
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(2)
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(70)
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27
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(70)
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Depreciation and amortization of
continuing operations
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99
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112
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294
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337
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Depreciation and amortization of
discontinued operations
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-
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-
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1
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1
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EBITDA(1)
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$ 257
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$ 107
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$ 533
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$1,011
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Adjusted
EBITDA(1)
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$ 273
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$ 205
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$ 653
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$ 355
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Basic income (loss) per
share
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$ 0.23
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$ (0.29)
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$ (0.01)
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$ 0.21
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Diluted income (loss) per
share
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$ 0.23
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$ (0.29)
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$ (0.01)
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$ 0.20
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Adjusted diluted income (loss)
per share(1)
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$ 0.34
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$ (0.21)
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$ 0.59
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$ (1.63)
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Common share
information:
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Basic shares
outstanding
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236.4
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234.0
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235.9
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233.9
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Diluted shares
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241.0
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234.0
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235.9
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238.1
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Diluted shares for
adjusted diluted income (loss) per share
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241.0
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234.0
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240.7
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233.9
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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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Three months
ended September 30,
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Nine months
ended September 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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$ 960
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$
869
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$ 2,659
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$
2,164
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Performance
Products
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678
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540
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1,963
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1,522
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Advanced
Materials
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318
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273
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929
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785
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Textile Effects
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190
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173
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598
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504
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Pigments
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327
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262
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883
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712
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Eliminations and
other
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(72)
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(42)
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(194)
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(86)
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Total
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$ 2,401
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$
2,075
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$ 6,838
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$
5,601
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Segment EBITDA(1):
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Polyurethanes
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$ 102
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$
137
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$
224
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$
249
|
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|
|
Performance
Products
|
|
99
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|
84
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|
|
|
275
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|
178
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|
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|
Advanced
Materials
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42
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|
29
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|
|
|
127
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38
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|
|
Textile Effects
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7
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|
(25)
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|
|
-
|
|
(56)
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|
|
Pigments
|
|
64
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|
4
|
|
|
|
139
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(51)
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Corporate, LIFO and
other
|
|
(54)
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|
(58)
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|
|
(308)
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722
|
|
|
|
Discontinued
operations(2)
|
|
(3)
|
|
(64)
|
|
|
|
76
|
|
(69)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
|
|
$ 257
|
|
$
107
|
|
|
|
$
533
|
|
$
1,011
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Segment Adjusted
EBITDA(1):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Polyurethanes
|
|
$ 102
|
|
$
137
|
|
|
|
$
225
|
|
$
251
|
|
|
|
Performance
Products
|
|
100
|
|
84
|
|
|
|
276
|
|
178
|
|
|
|
Advanced
Materials
|
|
42
|
|
26
|
|
|
|
125
|
|
50
|
|
|
|
Textile Effects
|
|
8
|
|
(22)
|
|
|
|
16
|
|
(43)
|
|
|
|
Pigments
|
|
66
|
|
16
|
|
|
|
144
|
|
4
|
|
|
|
Corporate, LIFO and
other
|
|
(45)
|
|
(36)
|
|
|
|
(133)
|
|
(85)
|
|
|
|
Total
|
|
$ 273
|
|
$
205
|
|
|
|
$
653
|
|
$
355
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
See end of press
release for footnote explanations
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|
|
|
|
|
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|
|
Three months
ended September 30,
|
|
Nine months
ended September 30,
|
|
|
|
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
|
|
7%
|
|
(3)%
|
|
5%
|
|
16%
|
|
(1)%
|
|
3%
|
|
Performance
Products
|
|
12%
|
|
(3)%
|
|
19%
|
|
8%
|
|
0%
|
|
22%
|
|
Advanced
Materials(b)
|
|
13%
|
|
(3)%
|
|
7%
|
|
3%
|
|
0%
|
|
19%
|
|
Textile Effects
|
|
8%
|
|
(1)%
|
|
3%
|
|
6%
|
|
2%
|
|
10%
|
|
Pigments
|
|
16%
|
|
(5)%
|
|
14%
|
|
8%
|
|
(1)%
|
|
16%
|
|
Total
Company(b)
|
|
8%
|
|
(3)%
|
|
11%
|
|
9%
|
|
0%
|
|
12%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(a) Excludes revenues and sales
volumes from tolling and by-products
|
|
(b) Excludes APAO business sold
July 31, 2009
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended September 30,
2010 Compared to Three Months Ended September 30, 2009
Revenues for the three months ended September 30, 2010 increased to $2,401 million from $2,075
million for the same period in 2009. For the three
months ended September 30, 2010,
Adjusted EBITDA was $273 million compared to $205 million for the same period in 2009.
Polyurethanes
The increase in revenues in our Polyurethanes division for the
three months ended September 30, 2010
compared to the same period in 2009 was primarily due to higher
sales prices and higher sales volumes. Average selling prices
for MDI increased in response to higher raw material costs while
average selling prices for MTBE decreased as a result of increased
industry supply. MDI sales volumes increased as a result of
improved demand in all regions and across all major sectors 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 contribution margins from higher
raw material costs and higher manufacturing costs.
Performance Products
The increase in revenues in our Performance Products division
for the three months ended September 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 all product groups primarily in
response to higher raw materials costs and strong market
conditions, partially offset by the strength of the U.S. dollar
against major European currencies. Sales volumes increased
primarily due to higher demand across almost all product groups and
additional sales of certain products previously produced under
tolling arrangements. The increase in Adjusted EBITDA was
primarily due to higher contribution margins and higher sales
volumes partially offset by higher manufacturing and selling,
general and administrative costs.
Advanced Materials
The increase in revenues in our Advanced Materials division for
the three months ended September 30,
2010 compared to the same period in 2009 was due to higher
sales volumes and higher average selling prices. Sales
volumes increased in the Americas and Asia-Pacific regions while volumes decreased
in Europe primarily in our base
resin business as a result of less material available.
Average selling prices increased in our specialty components
and base resins business primarily in response to higher raw
material costs and reduced product availability in the epoxy resin
business, partially offset by lower average selling prices in our
formulations business 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 and
higher contribution margins.
Textile Effects
The increase in revenues in our Textile Effects division for the
three months ended September 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 due to favorable changes in product mix
partially offset by the strength of the U.S. dollar against major
European currencies. Sales volumes increased across all
regions and within apparel and home textiles as well as specialty
textiles. The increase in Adjusted EBITDA was primarily due
to lower manufacturing and selling, general and administrative
costs, higher contribution margins and higher volumes.
Pigments
The increase in revenues in our Pigments division for the three
months ended September 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 recovery in global
demand most notably in Europe and
Asia Pacific. The increase
in Adjusted EBITDA in our Pigments division was primarily due to
higher contribution margins and higher sales volumes.
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. Adjusted EBITDA from
Corporate, LIFO and Other decreased by $9
million to a loss of $45
million for the three months ended September 30, 2010 compared to a loss of
$36 million for the same period in
2009. The change resulted primarily from increased legal and
other general expenses.
Income Taxes
During the three months ended September
30, 2010, we recorded income tax expense of $41 million compared to $68 million of income tax expense in the same
period of 2009. Our adjusted effective tax rate for the third
quarter of 2010 was approximately 28%. 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 35%. Unusual income tax rates caused by
valuation allowances have no impact on our cash taxes. During
the third quarter of 2010 we paid $9
million in cash for income taxes. We expect our cash
tax rate to continue to be less than our effective income tax
rate.
Liquidity, Capital Resources and Outstanding Debt
As of September 30, 2010, we had
$1,471 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 an
increase in primary working capital of $441
million, the net reduction in unused bank credit facilities
of $385 million, the repurchase of
convertible notes of $382 million and
the repayment of $295 million of bank
term debt (including $110 million of
repayments funded by insurance proceeds received). On
September 30, 2010 we increased the
amount of revolving commitments available under our revolving
credit facility from $225 million to $290
million. There are no outstanding borrowings under
this revolving credit facility.
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 $441 million primarily due
to increased sales volumes and higher prices partially offset by
the strength of the U.S. dollar against major European currencies.
Total capital expenditures, net of reimbursements from
insurance settlements, other settlement and contributions from
noncontrolling shareholders in consolidated subsidiaries of nil
were $54 million during the third
quarter of 2010 compared to $40
million for the same period in 2009. We expect to
spend between $200 and $225 million
on capital expenditures in 2010 net of reimbursements.
Beginning July 1, 2010 we began
consolidating our ethyleneamines manufacturing 50% joint venture
located in Jubail, Saudi Arabia.
Previously it was accounted for under the equity method
during its developmental stage. Trial production began in the
second quarter of 2010 and from July
2010, generated meaningful revenue from the sale of
production. The facility has the capacity to produce
approximately 60 million pounds of product annually. As a
result of the consolidation, $199
million of total debt has been recognized on the balance
sheet which is nonrecourse to Huntsman Corporation.
On September 24, 2010, we
completed our $350 million offering
of senior subordinated notes due 2021 which carry an interest rate
of 8 5/8%. We used the net proceeds of the offering to
purchase approximately euro 132
million (approximately $177
million equivalent) of our 6 7/8% senior subordinated notes
due 2013 and $159 million of our 7
7/8% senior subordinated notes due 2014. In November 2010, we expect to redeem the remaining
$188 million of our outstanding 7
7/8% senior subordinated notes due 2014 with proceeds from the
issuance of additional notes. In the fourth quarter we expect
to record approximately $13 million
in total charges related to early extinguishment of debt.
Below is our outstanding debt:
|
|
|
September
30,
|
|
|
December
31,
|
|
|
In millions
|
|
2010
|
|
|
2009
|
|
|
|
|
|
|
|
|
|
|
Debt:
|
|
|
|
|
|
|
|
Senior Credit
Facilities
|
|
$
1,686
|
|
|
$
1,968
|
|
|
Accounts Receivable
Programs(a)
|
|
243
|
|
|
254
|
|
|
Senior Notes
|
|
447
|
|
|
434
|
|
|
Subordinated
Notes(b)
|
|
1,442
|
|
|
1,294
|
|
|
Variable interest entities
- Arabian Amines Company(c)
|
|
199
|
|
|
-
|
|
|
Other Debt
|
|
320
|
|
|
280
|
|
|
Convertible
Notes
|
|
-
|
|
|
236
|
|
|
Total Debt - excluding
affiliates
|
|
4,337
|
|
|
4,466
|
|
|
|
|
|
|
|
|
|
|
Total Cash(b)
|
|
1,011
|
|
|
1,750
|
|
|
|
|
|
|
|
|
|
|
Net Debt- excluding
affiliates
|
|
$
3,326
|
|
|
$
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.
|
|
|
(b) We used cash to redeem $159
million of senior subordinated notes due 2014 on October 10,
2010
|
|
|
(c) Beginning July 1, 2010, we
began consolidating our Saudi Arabian ethyleneamines manufacturing
joint venture,
|
|
|
the financing of which is
nonrecourse to Huntsman.
|
|
|
|
|
|
|
|
|
Huntsman
Corporation
|
|
Reconciliation of
Adjustments
|
|
|
|
|
|
|
|
|
|
Net Income
(Loss)
|
|
Diluted
Income (Loss)
|
|
|
|
EBITDA
|
|
Attributable
to Huntsman Corporation
|
|
Per
Share
|
|
|
|
Three months
ended
September 30,
|
|
Three months
ended
September 30,
|
|
Three months
ended
September 30,
|
|
In millions, except per share
amounts
|
|
2010
|
|
2009
|
|
2010
|
|
2009
|
|
2010
|
|
2009
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP
|
|
$ 257
|
|
$ 107
|
|
$ 55
|
|
$ (68)
|
|
$ 0.23
|
|
$ (0.29)
|
|
Adjustments:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loss on accounts
receivable securitization programs
|
|
-
|
|
3
|
|
-
|
|
-
|
|
-
|
|
-
|
|
Unallocated foreign
currency (gain) loss
|
|
(2)
|
|
(6)
|
|
12
|
|
(5)
|
|
0.05
|
|
(0.02)
|
|
Loss on early
extinguishment of debt
|
|
7
|
|
21
|
|
5
|
|
13
|
|
0.02
|
|
0.06
|
|
Other restructuring,
impairment and plant closing costs
|
|
4
|
|
7
|
|
4
|
|
7
|
|
0.02
|
|
0.03
|
|
Expenses associated with
the terminated merger and related litigation
|
|
3
|
|
2
|
|
2
|
|
1
|
|
0.01
|
|
-
|
|
Discount amortization on
settlement financing associated with the terminated
merger
|
|
-
|
|
-
|
|
4
|
|
5
|
|
0.02
|
|
0.02
|
|
Acquisition related
expenses
|
|
1
|
|
8
|
|
-
|
|
6
|
|
-
|
|
0.03
|
|
Gain on disposition of
businesses/assets
|
|
-
|
|
(1)
|
|
-
|
|
(1)
|
|
-
|
|
-
|
|
Loss (income) from
discontinued operations, net of tax(2)
|
|
3
|
|
64
|
|
1
|
|
(6)
|
|
-
|
|
(0.03)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted(1)
|
|
$ 273
|
|
$ 205
|
|
$ 83
|
|
$ (48)
|
|
$ 0.34
|
|
$ (0.21)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Discontinued
operations
|
|
$ (3)
|
|
$ (64)
|
|
$ (1)
|
|
$ 6
|
|
$ -
|
|
$ 0.03
|
|
Restructuring, impairment
and plant closing (credits) costs
|
|
(1)
|
|
55
|
|
(1)
|
|
(13)
|
|
-
|
|
(0.06)
|
|
Loss on disposition of
assets
|
|
1
|
|
4
|
|
2
|
|
2
|
|
0.01
|
|
0.01
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted discontinued
operations(1)(2)
|
|
$ (3)
|
|
$ (5)
|
|
$ -
|
|
$ (5)
|
|
$ -
|
|
$ (0.02)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total - adjusted continuing and
discontinued operations
|
|
$ 270
|
|
$ 200
|
|
$ 83
|
|
$ (53)
|
|
$ 0.34
|
|
$ (0.23)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months
ended June 30,
|
|
In millions
|
|
2010
|
|
|
|
|
|
Net income attributable to
Huntsman Corporation
|
|
114
|
|
Interest expense, net
|
|
43
|
|
Income tax benefit from
continuing operations
|
|
39
|
|
Income tax benefit from
discontinued operations(2)
|
|
37
|
|
Depreciation and amortization of
continuing operations
|
|
97
|
|
Depreciation and amortization of
discontinued operations
|
|
1
|
|
|
|
|
|
EBITDA(1)
|
|
$
331
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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
|
|
2010
|
|
2010
|
|
|
|
|
|
|
|
|
|
GAAP
|
|
$ 331
|
|
$ 114
|
|
$ 0.47
|
|
Adjustments:
|
|
|
|
|
|
|
|
Unallocated foreign
currency gain
|
|
-
|
|
(4)
|
|
(0.02)
|
|
Loss on early
extinguishment of debt
|
|
7
|
|
4
|
|
0.02
|
|
Other restructuring,
impairment and plant closing costs
|
|
17
|
|
17
|
|
0.07
|
|
Expenses associated with
the terminated merger and related litigation
|
|
1
|
|
1
|
|
-
|
|
Discount amortization on
settlement financing associated with the terminated
merger
|
|
-
|
|
4
|
|
0.02
|
|
Acquisition related
expenses
|
|
1
|
|
1
|
|
-
|
|
Income from discontinued
operations, net of tax(2)
|
|
(100)
|
|
(62)
|
|
(0.26)
|
|
|
|
|
|
|
|
|
|
Adjusted
|
|
$ 257
|
|
$ 75
|
|
$ 0.31
|
|
|
|
|
|
|
|
|
|
Discontinued
operations
|
|
$ 100
|
|
$ 62
|
|
$ 0.26
|
|
Loss on disposition of
assets
|
|
4
|
|
3
|
|
0.01
|
|
Gain on fire insurance
settlement
|
|
(110)
|
|
(71)
|
|
(0.29)
|
|
|
|
|
|
|
|
|
|
Adjusted discontinued
operations(2)
|
|
$ (6)
|
|
$ (6)
|
|
$ (0.02)
|
|
|
|
|
|
|
|
|
|
Total - adjusted continuing and
discontinued operations
|
|
$ 251
|
|
$ 69
|
|
$ 0.29
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Income
(Loss)
|
|
Diluted
Income (Loss)
|
|
|
|
EBITDA
|
|
Attributable
To Huntsman Corporation
|
|
Per
Share
|
|
|
|
Nine months
ended September 30,
|
|
Nine months
ended September 30,
|
|
Nine months
ended September 30,
|
|
In millions, except per share
amounts
|
|
2010
|
|
2009
|
|
2010
|
|
2009
|
|
2010
|
|
2009
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP(2)
|
|
$ 533
|
|
$ 1,011
|
|
$ (3)
|
|
$ 48
|
|
$ (0.01)
|
|
$ 0.20
|
|
Adjustments:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loss on accounts
receivable securitization program
|
|
-
|
|
13
|
|
-
|
|
-
|
|
-
|
|
-
|
|
Unallocated foreign
currency (gain) loss
|
|
(3)
|
|
(15)
|
|
2
|
|
(2)
|
|
0.01
|
|
(0.01)
|
|
Loss on early
extinguishment of debt
|
|
169
|
|
21
|
|
152
|
|
13
|
|
0.63
|
|
0.06
|
|
Other restructuring,
impairment and plant closing costs
|
|
24
|
|
83
|
|
23
|
|
75
|
|
0.10
|
|
0.32
|
|
Expenses (income)
associated with the terminated merger and related
litigation
|
|
4
|
|
(835)
|
|
3
|
|
(526)
|
|
0.01
|
|
(2.25)
|
|
Discount amortization on
settlement financing associated with the terminated
merger
|
|
-
|
|
-
|
|
12
|
|
5
|
|
0.05
|
|
0.02
|
|
Acquisition related
expenses
|
|
2
|
|
9
|
|
1
|
|
7
|
|
-
|
|
0.03
|
|
Gain on disposition of
businesses/assets
|
|
-
|
|
(1)
|
|
-
|
|
(1)
|
|
-
|
|
-
|
|
(Income) loss from
discontinued operations, net of tax(2)
|
|
(76)
|
|
69
|
|
(48)
|
|
-
|
|
(0.20)
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted(1)(2)
|
|
$ 653
|
|
$ 355
|
|
$ 142
|
|
$ (381)
|
|
$ 0.59
|
|
$ (1.63)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Discontinued
operations
|
|
$ 76
|
|
$ (69)
|
|
$ 48
|
|
$ -
|
|
$ 0.20
|
|
$ -
|
|
Restructuring, impairment
and plant closing costs (credits)
|
|
4
|
|
56
|
|
2
|
|
(12)
|
|
0.01
|
|
(0.05)
|
|
Loss on disposition of
assets
|
|
13
|
|
4
|
|
10
|
|
2
|
|
0.04
|
|
0.01
|
|
Gain on hurricane
insurance settlement
|
|
(7)
|
|
-
|
|
(7)
|
|
-
|
|
(0.03)
|
|
-
|
|
Gain on fire insurance
settlement
|
|
(110)
|
|
-
|
|
(68)
|
|
-
|
|
(0.28)
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted discontinued
operations(1)(2)
|
|
$ (24)
|
|
$ (9)
|
|
$ (15)
|
|
$ (10)
|
|
$ (0.06)
|
|
$ (0.04)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total - adjusted continuing and
discontinued operations
|
|
$ 629
|
|
$ 346
|
|
$ 127
|
|
$ (391)
|
|
$ 0.53
|
|
$ (1.67)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
See end of press release for
footnote explanations
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Conference Call Information
We will hold a conference call to discuss our 2010 third quarter
results on Thursday, November 4, 2010
at 10:00 a.m. ET.
Call-in number for U.S.
participants:
|
(888) 679 - 8040
|
|
Call-in number for international
participants:
|
(617) 213 - 4851
|
|
Participant access
code:
|
84316359
|
|
|
|
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://cossprereg.btci.com/prereg/key.process?key=PEHDAN6X4
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
November 4, 2010 and ending
November 11, 2010
Call-in numbers for the
replay:
|
|
|
Within the
U.S.:
|
(888) 286 - 8010
|
|
International:
|
(617) 801 - 6888
|
|
Access code for
replay:
|
68394641
|
|
|
|
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 and Adjusted EBITDA to measure the
operating performance of our business. We also provide
Adjusted EBITDA from discontinued operations, Adjusted net income
and Adjusted net income from discontinued operations because we
feel they provide meaningful insight for the investment community
into the performance of our business. We believe that net
income (loss) attributable to Huntsman Corporation is the
performance measure calculated and presented in accordance with
generally accepted accounting principles in the U.S. ("GAAP") that
is most directly comparable to EBITDA, Adjusted EBITDA and Adjusted
net income. 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 September 30,
|
|
Nine months
ended September 30,
|
|
In millions
|
|
2010
|
|
2009
|
|
2010
|
|
2009
|
|
|
|
|
|
|
|
|
|
|
|
Net (loss) income from
discontinued operations, net of tax
|
$ (1)
|
|
$ 6
|
|
$ 48
|
|
$ -
|
|
Income tax (benefit)
expense
|
|
(2)
|
|
(70)
|
|
27
|
|
(70)
|
|
Depreciation and
amortization
|
|
-
|
|
-
|
|
1
|
|
1
|
|
EBITDA from discontinued
operations
|
|
(3)
|
|
(64)
|
|
76
|
|
(69)
|
|
Restructuring, impairment
and plant closing (credits) costs
|
(1)
|
|
55
|
|
4
|
|
56
|
|
Loss on disposition of
assets
|
|
1
|
|
4
|
|
13
|
|
4
|
|
Gain on hurricane
insurance settlement
|
|
-
|
|
-
|
|
(7)
|
|
-
|
|
Gain on fire insurance
settlement
|
|
-
|
|
-
|
|
(110)
|
|
-
|
|
Adjusted EBITDA from
discontinued operations
|
|
$ (3)
|
|
$ (5)
|
|
$ (24)
|
|
$ (9)
|
|
|
|
|
|
|
|
|
|
|
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. During the first quarter 2010 we closed our
Australian styrenics operations. Results from these
businesses are treated as discontinued operations.
SOURCE Huntsman Corporation