THE WOODLANDS, Texas,
May 5, 2011 /PRNewswire/ -- Huntsman
Corporation (NYSE: HUN)
First Quarter 2011 Highlights
- Revenues for the first quarter of 2011 were $2,679 million, an increase of 28% compared to
$2,094 million for the same period in
2010 and an increase of 11% compared to $2,412 million for the fourth quarter of
2010.
- Adjusted EBITDA for the first quarter of 2011 was $302 million compared to $123 million for the same period in 2010 and
$219 million for the fourth quarter
of 2010.
- Adjusted net income for the first quarter of 2011 was
$114 million or $0.47 per diluted share. This compares to
adjusted net loss of $16 million or
$0.07 loss per diluted share for the
same period in 2010 and adjusted net income of $58 million or $0.24 per diluted share for the fourth quarter of
2010.
- Net income attributable to Huntsman Corporation for the first
quarter of 2011 was $62 million or
$0.26 per diluted share. This
compares to net loss attributable to Huntsman Corporation of
$172 million or $0.73 loss per diluted share for the same period
in 2010 and net income attributable to Huntsman Corporation of
$30 million or $0.12 per diluted share for the fourth quarter of
2010.
Summarized earnings are as
follows:
|
|
|
|
Three months
ended March 31,
|
|
Three months
ended
|
|
In millions, except per share
amounts
|
|
2011
|
|
2010
|
|
December 31,
2010
|
|
|
|
|
|
|
|
|
|
Net income (loss) attributable
to Huntsman Corporation
|
|
$
62
|
|
$ (172)
|
|
$
30
|
|
Adjusted net income
(loss)(1)
|
|
$ 114
|
|
$ (16)
|
|
$
58
|
|
|
|
|
|
|
|
|
|
Diluted income (loss) per
share
|
|
$ 0.26
|
|
$ (0.73)
|
|
$
0.12
|
|
Adjusted diluted income (loss)
per share(1)
|
|
$ 0.47
|
|
$ (0.07)
|
|
$
0.24
|
|
|
|
|
|
|
|
|
|
EBITDA(1)
|
|
$ 239
|
|
$ (55)
|
|
$
167
|
|
Adjusted
EBITDA(1)
|
|
$ 302
|
|
$ 123
|
|
$
219
|
|
|
|
|
|
|
|
|
|
See end of press release for
footnote explanations
|
|
|
|
|
|
|
|
|
Recent Highlights
- On April 2, 2011, we completed
the acquisition of the Indian chemicals business of Laffans
Petrochemicals Ltd. The business manufactures amines and
surfactants for use in the fast growing Asia Pacific region.
- On March 7, 2011, we completed a
successful amendment to our credit agreement. Among other
things, we extended the maturity date of $650 million of our Term Loan B by three years
from April 2014 to April 2017 and increased the applicable margin on
borrowing.
- On February 16, 2011, we
announced our intent to increase the capacity of our Jurong Island,
Singapore polyetheramine facility.
We plan to invest approximately $70
million to increase the annual production capacity from
16,000 tons to approximately 56,000 tons. Over the next
decade we expect demand for our amines to grow at least 10% per
year in the Asia Pacific
region.
- On January 18, 2011 we completed
the early redemption of $100 million
of our 7 3/8% senior subordinated notes due 2015 with available
cash.
Peter R. Huntsman, our President
and CEO, commented:
"I am pleased with the strong earnings of our business in the
first quarter; underlying demand for our largest businesses
continues to improve with the global economic recovery. We are
raising prices and recapturing margin despite the headwind of
increased raw material and energy costs."
Huntsman
Corporation
|
|
Operating
Results
|
|
|
|
|
|
Three months
ended March 31,
|
|
In millions, except per share
amounts
|
|
2011
|
|
2010
|
|
|
|
|
|
|
|
Revenues
|
|
$2,679
|
|
$2,094
|
|
Cost of goods
sold
|
|
2,219
|
|
1,813
|
|
Gross profit
|
|
460
|
|
281
|
|
Operating expenses
|
|
291
|
|
256
|
|
Restructuring, impairment and
plant closing costs
|
|
7
|
|
3
|
|
Operating income
|
|
162
|
|
22
|
|
Interest expense, net
|
|
(59)
|
|
(61)
|
|
Equity in income of investment
in unconsolidated affiliates
|
|
2
|
|
1
|
|
Loss on early extinguishment of
debt
|
|
(3)
|
|
(155)
|
|
Income before income
taxes
|
|
102
|
|
(193)
|
|
Income tax (expense)
benefit
|
|
(22)
|
|
34
|
|
Income (loss) from continuing
operations
|
|
80
|
|
(159)
|
|
Loss from discontinued
operations, net of tax(2)
|
|
(14)
|
|
(13)
|
|
Income (loss) before
extraordinary gain
|
|
66
|
|
(172)
|
|
Extraordinary gain on the
acquisition of a business, net of tax of nil
|
|
1
|
|
-
|
|
Net income (loss)
|
|
67
|
|
(172)
|
|
Net income attributable to
noncontrolling interests
|
|
(5)
|
|
-
|
|
Net income (loss) attributable
to Huntsman Corporation
|
|
$ 62
|
|
$ (172)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss) attributable
to Huntsman Corporation
|
|
$ 62
|
|
$ (172)
|
|
Interest expense, net
|
|
59
|
|
61
|
|
Income tax expense (benefit)
from continuing operations
|
|
22
|
|
(34)
|
|
Income tax benefit from
discontinued operations(2)
|
|
(7)
|
|
(8)
|
|
Depreciation and amortization of
continuing operations
|
|
103
|
|
98
|
|
EBITDA(1)
|
|
$ 239
|
|
$ (55)
|
|
|
|
|
|
|
|
Adjusted
EBITDA(1)
|
|
$ 302
|
|
$ 123
|
|
|
|
|
|
|
|
Basic income (loss) per
share
|
|
$ 0.26
|
|
$ (0.73)
|
|
Diluted income (loss) per
share
|
|
$ 0.26
|
|
$ (0.73)
|
|
Adjusted diluted income (loss)
per share(1)
|
|
$ 0.47
|
|
$ (0.07)
|
|
|
|
|
|
|
|
Common share
information:
|
|
|
|
|
|
Basic shares
outstanding
|
|
237.6
|
|
234.8
|
|
Diluted shares
|
|
242.9
|
|
234.8
|
|
|
|
|
|
|
|
See end of
press release for footnote
explanations
|
|
|
|
|
|
|
Huntsman
Corporation
|
|
Segment
Results
|
|
|
|
|
|
Three months
ended March 31,
|
|
In millions
|
|
2011
|
|
2010
|
|
|
|
|
|
|
|
Segment Revenues:
|
|
|
|
|
|
Polyurethanes
|
|
$ 1,047
|
|
$ 767
|
|
Performance
Products
|
|
804
|
|
616
|
|
Advanced
Materials
|
|
350
|
|
291
|
|
Textile Effects
|
|
190
|
|
195
|
|
Pigments
|
|
364
|
|
269
|
|
Eliminations and
other
|
|
(76)
|
|
(44)
|
|
|
|
|
|
|
|
Total
|
|
$ 2,679
|
|
$ 2,094
|
|
|
|
|
|
|
|
Segment
EBITDA(1):
|
|
|
|
|
|
Polyurethanes
|
|
$ 114
|
|
$
52
|
|
Performance
Products
|
|
115
|
|
60
|
|
Advanced
Materials
|
|
39
|
|
33
|
|
Textile Effects
|
|
(11)
|
|
-
|
|
Pigments
|
|
84
|
|
28
|
|
Corporate, LIFO and
other
|
|
(81)
|
|
(207)
|
|
Discontinued
operations(2)
|
|
(21)
|
|
(21)
|
|
|
|
|
|
|
|
Total
|
|
$ 239
|
|
$
(55)
|
|
|
|
|
|
|
|
Segment Adjusted
EBITDA(1):
|
|
|
|
|
|
Polyurethanes
|
|
$ 114
|
|
$
52
|
|
Performance
Products
|
|
115
|
|
60
|
|
Advanced
Materials
|
|
39
|
|
31
|
|
Textile Effects
|
|
(6)
|
|
-
|
|
Pigments
|
|
87
|
|
29
|
|
Corporate, LIFO and
other
|
|
(47)
|
|
(49)
|
|
Total
|
|
$ 302
|
|
$
123
|
|
|
|
|
|
|
|
See end of press release for
footnote explanations
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months
ended March 31,
|
|
|
|
2011 vs.
2010
|
|
Period-Over-Period
|
|
Average
Selling Price(a)
|
|
|
|
|
|
Increase
(Decrease)
|
|
Local
|
|
Foreign
Currency
|
|
Sales
|
|
Sales
|
|
|
|
Currency
|
|
Translation
Impact
|
|
Mix(a)
|
|
Volume(a)
|
|
|
|
|
|
|
|
|
|
|
|
Polyurethanes
|
|
14%
|
|
0%
|
|
(17)%
|
|
42%
|
|
Performance
Products
|
|
16%
|
|
0%
|
|
1%
|
|
14%
|
|
Advanced
Materials
|
|
8%
|
|
0%
|
|
7%
|
|
6%
|
|
Textile Effects
|
|
3%
|
|
1%
|
|
0%
|
|
(7)%
|
|
Pigments
|
|
25%
|
|
0%
|
|
0%
|
|
11%
|
|
Total Company
|
|
10%
|
|
0%
|
|
(4)%
|
|
23%
|
|
|
|
|
|
|
|
|
|
|
|
(a) Excludes
revenues and sales volumes from tolling and by-products
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended March 31,
2011 Compared to Three Months Ended March 31, 2010
Revenues for the three months ended March
31, 2011 increased to $2,679
million from $2,094 million
for the same period in 2010. For the three months ended
March 31, 2011, Adjusted EBITDA was
$302 million compared to $123
million for the same period in 2010.
Polyurethanes
The increase in revenues in our Polyurethanes division for the
three months ended March 31, 2011
compared to the same period in 2010 was primarily due to higher
sales volumes and higher average selling prices. MDI sales
volumes increased across almost all sectors. MDI sales
volumes increased primarily due to improved demand in the
insulation and automotive sectors. PO/MTBE sales volumes
increased compared to the prior year primarily due to the 2010
planned maintenance outage at our Port
Neches, TX facility. Average MDI selling prices
increased in response to higher raw material costs. Average
PO/MTBE selling prices increased primarily in response to higher
raw material costs and industry supply constraints. The
increase in Adjusted EBITDA was primarily due to the 2010 planned
maintenance at our Port Neches, TX
facility the impact of which was $40
million as well as higher sales volumes.
Performance Products
The increase in revenues in our Performance Products division
for the three months ended March 31,
2011 compared to the same period in 2010 was due to higher
average selling prices, higher sales volumes and the consolidation
of the Arabian Amines Company joint venture. Average selling
prices increased across all product groups primarily in response to
stronger market conditions and higher raw material costs.
Sales volumes increased primarily due to stronger demand.
The increase in Adjusted EBITDA was primarily due to higher
contribution margins, higher sales volumes and the consolidation of
the Arabian Amines Company joint venture partially offset by higher
manufacturing and selling, general and administrative costs.
During the three months ended March
31, 2011 and 2010 we experienced unplanned mechanical
shutdowns at our Port Neches, TX
facility resulting in approximately $7
million and $11 million of
higher costs respectively.
Advanced Materials
The increase in revenues in our Advanced Materials division for
the three months ended March 31, 2011
compared to the same period in 2010 was due to higher average
selling prices and higher sales volumes. Average selling
prices increased in our specialty components and base resins
business primarily in response to higher raw material costs
partially offset by lower average selling prices in our
formulations business primarily as a result of competitive market
pressure in our wind business and overall product mix. Sales
volumes increased in the Asia-Pacific and European regions while
volumes decreased slightly in the Americas primarily as a result of
raw material constraints for base resins. The increase in
Adjusted EBITDA was primarily due to higher contribution margins
and higher sales volumes partially offset by the impact of stronger
major European currencies against the U.S. dollar resulting in
higher manufacturing and selling, general and administrative
costs.
Textile Effects
The decrease in revenues in our Textile Effects division for the
three months ended March 31, 2011
compared to the same period in 2010 was due to lower sales volumes
partially offset by higher average selling prices. Sales
volumes decreased due to lower demand and customer manufacturing
constraints. Average selling prices increased primarily in
response to higher raw material costs. The decrease in
Adjusted EBITDA was primarily due to lower sales volumes and the
foreign currency impact of a stronger Swiss franc against the U.S.
dollar on our manufacturing and selling, general and administrative
costs.
Pigments
The increase in revenues in our Pigments division for the three
months ended March 31, 2011 compared
to the same period in 2010 was due to higher average selling prices
and higher sales volumes. Average selling prices increased in
all regions of the world primarily as a result of higher raw
material costs and stronger overall market demand. Sales
volumes increased primarily due to increased demand in all regions
of the world. The increase in Adjusted EBITDA in our Pigments
division was primarily due to higher contribution margins and
higher sales volumes partially offset by higher manufacturing and
selling, general and administrative costs.
Corporate, LIFO and Other
Corporate, LIFO and other includes unallocated corporate
overhead, unallocated foreign exchange gains and losses, LIFO
inventory valuation reserve adjustments, loss on early
extinguishment of debt, unallocated restructuring costs, gain and
loss on the disposition of assets and non-operating income and
expense. Adjusted EBITDA from Corporate, LIFO and Other
increased by $2 million to a loss of
$47 million for the three months
ended March 31, 2011 compared to a
loss of $49 million for the same
period in 2010.
Income Taxes
During the three months ended March 31,
2011 we recorded income tax expense of $22 million compared to a benefit of $34 million in 2010. Our adjusted effective
income tax rate for the three months ended March 31, 2011 was approximately 22%. We
expect our long term effective income tax rate to be approximately
30 - 35%. We have tax valuation allowances in countries such
as Switzerland and the
United Kingdom where our Textile
Effects and Pigments businesses have meaningful operations.
The increase in profitability from our Pigments business has
had the effect of reducing our adjusted effective income tax rate.
During the three months ended March
31, 2011 we paid $5 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 March 31, 2011, we had
$1,168 million of combined cash and
unused borrowing capacity compared to $1,434
million at December 31, 2010.
The decrease from 2010 year end was primarily attributable to
an increase in primary net working capital of $245 million and the early redemption of
$100 million of our senior
subordinated notes with available cash.
On March 7, 2011, we completed a
successful amendment to our credit agreement. Among other
things, we extended the maturity date of $650 million of our Term Loan B by three years
from April 2014 to April 2017 and increased the applicable margin on
borrowing.
In April 2011, we completed
amendments to our U.S. and European accounts receivable
securitization programs. These amendments included an
extension of the maturity date to April
2014 and a reduction in the applicable margin on borrowing
under these programs.
Total capital expenditures, net of reimbursements for the three
months ended March 31, 2011 were
$60 million compared to $37 million for the same period in 2010. We
expect to spend approximately $350
million on capital expenditures, net of reimbursements in
2011.
|
|
March
31,
|
|
December
31,
|
|
In millions
|
|
2011
|
|
2010
|
|
|
|
|
|
|
|
Debt:
|
|
|
|
|
|
Senior Credit
Facilities
|
|
$ 1,690
|
|
$
1,688
|
|
Accounts Receivable
Programs
|
|
250
|
|
238
|
|
Senior Notes
|
|
457
|
|
452
|
|
Subordinated
Notes
|
|
1,194
|
|
1,279
|
|
Variable interest entities
- Arabian Amines Company
|
|
203
|
|
200
|
|
Other Debt
|
|
263
|
|
289
|
|
Total Debt - excluding
affiliates
|
|
4,057
|
|
4,146
|
|
|
|
|
|
|
|
Total Cash
|
|
639
|
|
973
|
|
|
|
|
|
|
|
Net Debt- excluding
affiliates
|
|
$ 3,418
|
|
$
3,173
|
|
|
|
|
|
|
Huntsman
Corporation
|
|
Reconciliation of
Adjustments
|
|
|
|
|
|
EBITDA
|
|
Net Income
(Loss)
Attributable
to Huntsman Corporation
|
|
Diluted
Income (Loss)
Per
Share
|
|
|
|
Three months
ended
March
31,
|
|
Three months
ended
March
31,
|
|
Three months
ended
March
31,
|
|
In millions, except per share
amounts
|
|
2011
|
|
2010
|
|
2011
|
|
2010
|
|
2011
|
|
2010
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP(1)
|
|
$
239
|
|
$ (55)
|
|
$
62
|
|
$
(172)
|
|
$
0.26
|
|
$
(0.73)
|
|
Adjustments:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Unallocated foreign
currency (gain) loss
|
|
(2)
|
|
(1)
|
|
4
|
|
(6)
|
|
0.02
|
|
(0.03)
|
|
Legal and contract
settlements
|
|
34
|
|
-
|
|
21
|
|
-
|
|
0.09
|
|
-
|
|
Loss on early
extinguishment of debt
|
|
3
|
|
155
|
|
2
|
|
143
|
|
0.01
|
|
0.61
|
|
Other restructuring,
impairment and plant closing costs
|
|
7
|
|
3
|
|
7
|
|
2
|
|
0.03
|
|
0.01
|
|
Discount amortization on
settlement financing associated with the terminated
merger
|
|
-
|
|
-
|
|
4
|
|
4
|
|
0.02
|
|
0.02
|
|
Acquisition related
expenses
|
|
1
|
|
-
|
|
1
|
|
-
|
|
-
|
|
-
|
|
Loss from discontinued
operations, net of tax(2)
|
|
21
|
|
21
|
|
14
|
|
13
|
|
0.06
|
|
0.06
|
|
Extraordinary gain on the
acquisition of a business, net of tax
|
|
(1)
|
|
-
|
|
(1)
|
|
-
|
|
-
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted(1)
|
|
$
302
|
|
$ 123
|
|
$
114
|
|
$
(16)
|
|
$
0.47
|
|
$
(0.07)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Discontinued
operations
|
|
$
(21)
|
|
$ (21)
|
|
$
(14)
|
|
$
(13)
|
|
$
(0.06)
|
|
$
(0.06)
|
|
Restructuring, impairment
and plant closing costs
|
|
1
|
|
5
|
|
1
|
|
3
|
|
-
|
|
0.01
|
|
Loss on disposition of
assets
|
|
-
|
|
8
|
|
-
|
|
5
|
|
-
|
|
0.02
|
|
Non-recurring costs and
expenses
|
|
18
|
|
(7)
|
|
11
|
|
(4)
|
|
0.05
|
|
(0.02)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted discontinued
operations(1)(2)
|
|
$
(2)
|
|
$ (15)
|
|
$
(2)
|
|
$
(9)
|
|
$
(0.01)
|
|
$
(0.04)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total - adjusted continuing and
discontinued operations
|
|
$
300
|
|
$ 108
|
|
$
112
|
|
$
(25)
|
|
$
0.46
|
|
$
(0.11)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months
ended December 31,
|
|
In millions
|
|
2010
|
|
|
|
|
|
Net income attributable to
Huntsman Corporation
|
|
30
|
|
Interest expense, net
|
|
61
|
|
Income tax benefit from
continuing operations
|
|
(17)
|
|
Income tax benefit from
discontinued operations(2)
|
|
(17)
|
|
Depreciation and amortization of
continuing operations
|
|
110
|
|
|
|
|
|
EBITDA(1)
|
|
$
167
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Income
(Loss)
|
|
Diluted
Income (Loss)
|
|
|
|
EBITDA
|
|
Attributable
to Huntsman Corporation
|
|
Per
Share
|
|
|
|
Three months
ended December 31,
|
|
Three months
ended December 31,
|
|
Three months
ended December 31,
|
|
In millions, except per share
amounts
|
|
2010
|
|
2010
|
|
2010
|
|
|
|
|
|
|
|
|
|
GAAP(1)
|
|
$
167
|
|
$
30
|
|
$
0.12
|
|
Adjustments:
|
|
|
|
|
|
|
|
Unallocated foreign
currency gain
|
|
-
|
|
(2)
|
|
(0.01)
|
|
Legal and contract
settlements
|
|
8
|
|
5
|
|
0.02
|
|
Loss on early
extinguishment of debt
|
|
14
|
|
9
|
|
0.04
|
|
Other restructuring,
impairment and plant closing costs
|
|
5
|
|
4
|
|
0.02
|
|
Discount amortization on
settlement financing associated with the terminated
merger
|
|
-
|
|
4
|
|
0.02
|
|
Acquisition related
expenses
|
|
1
|
|
1
|
|
-
|
|
Loss from discontinued
operations, net of tax(2)
|
|
23
|
|
6
|
|
0.02
|
|
Extraordinary loss on the
acquisition of a business, net of tax(3)
|
|
1
|
|
1
|
|
-
|
|
|
|
|
|
|
|
|
|
Adjusted(1)
|
|
$
219
|
|
$
58
|
|
$
0.24
|
|
|
|
|
|
|
|
|
|
Discontinued
operations
|
|
$
(23)
|
|
$
(6)
|
|
$
(0.02)
|
|
Restructuring, impairment
and plant closing credits
|
|
2
|
|
4
|
|
0.02
|
|
Gain on insurance
settlements, net of expenses
|
|
-
|
|
(1)
|
|
-
|
|
|
|
|
|
|
|
|
|
Adjusted discontinued
operations(1)(2)
|
|
$
(21)
|
|
$
(3)
|
|
$
(0.01)
|
|
|
|
|
|
|
|
|
|
Total - adjusted continuing and
discontinued operations
|
|
$
198
|
|
$
55
|
|
$
0.23
|
|
|
|
|
|
|
|
|
Conference Call Information
We will hold a conference call to discuss our first quarter 2011
financial results on Thursday, May 5,
2011 at 8:00 a.m. ET.
Call-in number for U.S.
participants:
|
(888) 680 - 0892
|
|
Call-in number for international
participants:
|
(617) 213 - 4858
|
|
Participant access
code:
|
70969130
|
|
|
|
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=P4WL4RMDP
The conference call will be available via webcast and can be
accessed from the investor relations portion of the company's
website at http://www.huntsman.com.
The conference call will be available for replay beginning
May 5, 2011 and ending May 12, 2011.
Call-in numbers for the
replay:
|
|
Within the
U.S.:
|
(888) 286 - 8010
|
|
International:
|
(617) 801 - 6888
|
|
Access code for
replay:
|
36894060
|
|
|
|
About Huntsman:
Huntsman is a global manufacturer and marketer of
differentiated chemicals. Our 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 12,000 employees and operates from multiple
locations worldwide. The Company had 2010 revenues of over
$9 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 provide Adjusted
net income because we feel it provides meaningful insight for the
investment community into the performance of our business. We
also provide Adjusted EBITDA from discontinued operations and
Adjusted net income from discontinued operations for informational
purposes only. 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 insurance
settlements, net of tax; (gain) loss on disposition of
business/assets; and non-recurring costs and expenses. The
following table provides a reconciliation of Adjusted EBITDA from
discontinued operations to income (loss) from discontinued
operations:
|
|
Three months
ended March 31,
|
|
In millions
|
|
2011
|
|
2010
|
|
|
|
|
|
|
|
Net loss from discontinued
operations, net of tax
|
|
$ (14)
|
|
$ (13)
|
|
Income tax
benefit
|
|
(7)
|
|
(8)
|
|
EBITDA from discontinued
operations
|
|
(21)
|
|
(21)
|
|
Restructuring, impairment
and plant closing costs
|
|
1
|
|
5
|
|
Loss on disposition of
assets
|
|
-
|
|
8
|
|
Non-recurring costs and
expenses
|
|
18
|
|
(7)
|
|
Adjusted EBITDA from
discontinued operations
|
|
$ (2)
|
|
$ (15)
|
|
|
|
|
|
|
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 insurance
settlements, net of tax; (gain) loss on the disposition of
business/assets; and non-recurring costs and expenses. 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.
During the fourth quarter of 2010, we began reporting the
(income) loss attributable to noncontrolling interests in the
reporting segment to which the subsidiary relates. Previously,
(income) loss attributable to noncontrolling interests was reported
in our Corporate and other segment. All relevant information for
prior periods has been reclassified to reflect these changes.
(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