THE WOODLANDS, Texas,
Nov. 2, 2011 /PRNewswire/ -- Huntsman
Corporation (NYSE: HUN)
Third Quarter 2011 Highlights
- Revenues improved 24% compared to the prior year period.
- Adjusted EBITDA improved 26% to $345
million compared to the prior year period.
- Adjusted diluted income per share improved 32% to $0.45 compared to the prior year period.
- A higher than normal adjusted effective tax rate of 38% had a
negative impact of approximately $0.08 per diluted share.
- Negative foreign currency impact on earnings in our Advanced
Materials and Textile Effects businesses of approximately
$17 million compared to the prior
year primarily due to the strong Swiss franc.
- We announced restructuring plans within our Advanced Materials
and Textile Effects businesses. We recorded $155 million of restructuring charges during the
third quarter of 2011 consisting of $102
million of cash charges and $53
million of non-cash impairment of assets. We expect
additional future cash charges of approximately $35 million. We expect future annual
benefits of approximately $90
million.
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Three months
ended
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Nine months
ended
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|
September
30,
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June
30,
|
|
September
30,
|
|
In millions, except per share
amounts, unaudited
|
2011
|
|
2010
|
|
2011
|
|
2011
|
|
2010
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues
|
$ 2,976
|
|
$ 2,401
|
|
$ 2,934
|
|
$ 8,589
|
|
$ 6,838
|
|
|
|
|
|
|
|
|
|
|
|
|
Net (loss) income attributable
to Huntsman Corporation
|
$ (34)
|
|
$
55
|
|
$ 114
|
|
$ 142
|
|
$
(3)
|
|
Adjusted net
income(1)
|
$ 108
|
|
$
83
|
|
$ 117
|
|
$ 339
|
|
$ 142
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted (loss) income per
share
|
$ (0.14)
|
|
$ 0.23
|
|
$ 0.47
|
|
$ 0.59
|
|
$ (0.01)
|
|
Adjusted diluted income per
share(1)
|
$ 0.45
|
|
$ 0.34
|
|
$ 0.48
|
|
$ 1.40
|
|
$ 0.59
|
|
|
|
|
|
|
|
|
|
|
|
|
EBITDA(1)
|
$ 204
|
|
$ 257
|
|
$ 323
|
|
$ 766
|
|
$ 533
|
|
Adjusted EBITDA(1)
|
$ 345
|
|
$ 273
|
|
$ 318
|
|
$ 965
|
|
$ 653
|
|
|
|
|
|
|
|
|
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|
See end of press release for
footnote explanations
(a) Excluding the Base Chemicals
and Polymers businesses divested in 2006 and 2007
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Huntsman Corporation (NYSE: HUN) today reported third quarter
2011 results with revenues of $2,976
million and Adjusted EBITDA of $345
million.
Peter R. Huntsman, our President
and CEO, commented:
"Our third quarter was the strongest in our company's
history. Our revenues, adjusted EBITDA and adjusted net
income are all stronger than a year ago as we appear to be heading
towards a record year.
This past quarter we announced large restructuring plans to
mitigate the impact of the strong Swiss Franc and to address the
challenging business conditions of the global textile industry.
We expect to record cash restructuring charges of
approximately $135 million and expect
annual benefits of approximately $90
million between our Textile Effects business and our Swiss
based Advanced Materials divisions. We expect to see the
impact of these changes beginning in the first quarter of
2012.
As satisfied as we feel about our strong quarter, we are
still mindful of the sluggish global business conditions. As
the economy gradually improves in the coming year, we fully expect
stronger earnings from our business as many of our larger product
lines are still quite some distance from their peak earnings
potential. In short, I am quite pleased with our third
quarter results, but expect stronger performance as the global
economy returns to more stable growth."
Segment Analysis for 3Q11 Compared to 3Q10
Polyurethanes
The increase in revenues in our Polyurethanes division for the
three months ended September 30, 2011
compared to the same period in 2010 was due to higher average
selling prices and higher MDI sales volumes. Average MDI
selling prices increased primarily in response to higher raw
material costs, improved demand and the strength of European
currencies against the U.S. dollar. Average PO/MTBE selling
prices increased primarily in response to higher raw material
costs. MDI sales volumes increased primarily due to improved
demand in the insulation, furniture and automotive sectors but were
offset by lower PO/MTBE sales volumes. The increase in
Adjusted EBITDA was due to higher contribution margins partially
offset by higher manufacturing and selling, general and
administrative costs.
Performance Products
The increase in revenues in our Performance Products division
for the three months ended September 30,
2011 compared to the same period in 2010 was primarily due
to higher average selling prices. Average selling prices
increased across almost all product groups primarily in response to
higher raw material costs and the strength of major European
currencies against the U.S. dollar. Sales volumes were
essentially unchanged as the positive impact from the consolidation
of our Sasol-Huntsman maleic anhydride joint venture during the
second quarter 2011 was offset by lower sales volumes of amines and
surfactants. The decrease in Adjusted EBITDA was primarily
due to a planned maintenance outage at our Port Neches, TX facility which had an
approximate $8 million negative
impact.
Advanced Materials
The increase in revenues in our Advanced Materials division for
the three months ended September 30,
2011 compared to the same period in 2010 was primarily due
to higher average selling prices partially offset by lower sales
volumes. Average selling prices increased primarily in
response to higher raw material costs and the strength of major
European currencies against the U.S. dollar. Sales volumes
decreased in our base resins business partially offset by a modest
increase in combined sales volumes in our core formulation systems
and specialty components businesses. The decrease in Adjusted
EBITDA was primarily due to lower contribution margins and
approximately $7 million of negative
foreign currency impact primarily due to the stronger Swiss franc
on our manufacturing and selling, general and administrative
costs.
Textile Effects
The decrease in revenues in our Textile Effects division for the
three months ended September 30, 2011
compared to the same period in 2010 was primarily due to lower
sales volumes partially offset by higher average selling prices.
Sales volumes decreased due to lower demand. Average
selling prices increased primarily due to the strength of major
currencies against the U.S. dollar. The decrease in Adjusted
EBITDA was primarily due to lower sales volumes and approximately
$10 million of negative foreign
currency impact primarily due to the stronger Swiss franc on our
manufacturing and selling, general and administrative costs.
Pigments
The increase in revenues in our Pigments division for the three
months ended September 30, 2011
compared to the same period in 2010 was due to higher average
selling prices partially offset by lower sales volumes.
Average selling prices increased in all regions of the world
primarily as a result of higher raw material costs and the strength
of major European currencies against the U.S. dollar. Sales
volumes decreased primarily due to lower finished goods inventory
available for sale and lower global demand. The increase in
Adjusted EBITDA in our Pigments division was primarily due to
higher contribution margins partially offset by lower sales volumes
and 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 and unallocated restructuring costs.
Adjusted EBITDA from Corporate, LIFO and other decreased by
$6 million to a loss of $50 million for the three months ended
September 30, 2011 compared to a loss
of $44 million for the same period in
2010. The decrease in Adjusted EBITDA was primarily the
result of a $7 million increase in
LIFO inventory valuation expense ($8
million of loss in 2011 compared to $1 million loss in 2010).
Income Taxes
During the three months ended September
30, 2011 we recorded income tax expense of $55 million compared to $41 million in the same period in 2010. Our
adjusted effective income tax rate for the three months ended
September 30, 2011 was approximately
38%. 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 forecasted losses in Switzerland from our Textile Effects business
during the third quarter, along with other changes in our
geographic mix of income, had the effect of increasing our
projected effective income tax rate for the year. We are
required to adjust our third quarter year-to-date tax rate to our
expected full year rate. This resulted in the recognition of
more tax expense during the third quarter. We expect our long
term effective income tax rate to be approximately 30 - 35% and
expect the fourth quarter and full year 2011 adjusted tax rate to
be slightly less than that. During the three months ended
September 30, 2011 we paid
$49 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, 2011, we had
$1,024 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 $506 million.
During the third quarter of 2011, we redeemed approximately
$111 million of our senior
subordinated notes due 2015.
On November 1, 2011, we provided
notice to redeem all of our remaining 6.875% senior subordinated
euro notes due 2013 worth approximately $93
million.
Total capital expenditures, net of reimbursements for the three
months ended September 30, 2011 were
$93 million compared to $54 million for the same period in 2010. We
expect to spend approximately $350
million on capital expenditures, net of reimbursements, in
2011.
On August 5, 2011 we announced
that our Board of Directors authorized the repurchase of up to
$100 million in shares of our common
stock. During the third quarter of 2011, we acquired
approximately four million shares of our outstanding common stock
for approximately $50 million under
the repurchase program.
Conference Call Information
We will hold a conference call to discuss our third quarter 2011
financial results on Wednesday November 2,
2011 at 9:00 a.m. ET.
Call-in numbers for the
conference call:
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U.S. participants
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(888) 713 - 4213
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International
participants
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(617) 213 - 4865
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Passcode
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98395744
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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=PLFWDW8GP
Webcast Information
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.
Replay Information
The conference call will be available for replay beginning
November 2, 2011 and ending
November 9, 2011.
Call-in numbers for the
replay:
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U.S. participants
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(888) 286 - 8010
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International
participants
|
(617) 801 - 6888
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Replay code
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63107396
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Table 1 -- Results of
Operations
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Three months
ended
|
|
Nine months
ended
|
|
|
September
30,
|
|
September
30,
|
|
In millions, except per share
amounts, unaudited
|
2011
|
|
2010
|
|
2011
|
|
2010
|
|
|
|
|
|
|
|
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Revenues
|
$2,976
|
|
$2,401
|
|
$8,589
|
|
$6,838
|
|
Cost of goods sold
|
2,486
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|
1,986
|
|
7,138
|
|
5,757
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|
Gross profit
|
490
|
|
415
|
|
1,451
|
|
1,081
|
|
Operating expenses
|
258
|
|
244
|
|
821
|
|
741
|
|
Restructuring, impairment and
plant closing costs
|
155
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|
4
|
|
171
|
|
24
|
|
Operating income
|
77
|
|
167
|
|
459
|
|
316
|
|
Interest expense, net
|
(63)
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|
(64)
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|
(187)
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|
(168)
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|
Equity in income of investment
in unconsolidated affiliates
|
2
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|
3
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|
6
|
|
20
|
|
Loss on early extinguishment of
debt
|
(2)
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|
(7)
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|
(5)
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|
(169)
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Expenses associated with the
terminated merger and related litigation
|
-
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|
(3)
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|
-
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|
(4)
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|
Other (loss) income
|
(1)
|
|
2
|
|
-
|
|
3
|
|
Income (loss) before income
taxes
|
13
|
|
98
|
|
273
|
|
(2)
|
|
Income tax expense
|
(55)
|
|
(41)
|
|
(111)
|
|
(46)
|
|
(Loss) income from continuing
operations
|
(42)
|
|
57
|
|
162
|
|
(48)
|
|
Income (loss) from discontinued
operations, net of tax(2)
|
10
|
|
(1)
|
|
(5)
|
|
48
|
|
Extraordinary gain on the
acquisition of a business, net of tax of nil
|
-
|
|
-
|
|
2
|
|
-
|
|
Net (loss) income
|
(32)
|
|
56
|
|
159
|
|
-
|
|
Net income attributable to
noncontrolling interests, net of tax
|
(2)
|
|
(1)
|
|
(17)
|
|
(3)
|
|
Net (loss) income attributable
to Huntsman Corporation
|
$ (34)
|
|
$ 55
|
|
$ 142
|
|
$
(3)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted
EBITDA(1)
|
$ 345
|
|
$ 273
|
|
$ 965
|
|
$ 653
|
|
|
|
|
|
|
|
|
|
|
Adjusted net
income(1)
|
$ 108
|
|
$ 83
|
|
$ 339
|
|
$ 142
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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|
|
Basic (loss) income per
share
|
$ (0.14)
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|
$ 0.23
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|
$ 0.60
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|
$ (0.01)
|
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Diluted (loss) income per
share
|
$ (0.14)
|
|
$ 0.23
|
|
$ 0.59
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|
$ (0.01)
|
|
Adjusted diluted income per
share(1)
|
$ 0.45
|
|
$ 0.34
|
|
$ 1.40
|
|
$ 0.59
|
|
|
|
|
|
|
|
|
|
|
Common share
information:
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Basic shares
outstanding
|
237.6
|
|
236.4
|
|
238.2
|
|
235.9
|
|
Diluted shares
|
237.6
|
|
241.0
|
|
242.6
|
|
235.9
|
|
Diluted shares for
adjusted diluted income per share
|
241.3
|
|
241.0
|
|
242.6
|
|
240.7
|
|
|
|
|
|
|
|
|
|
|
See end of press release for
footnote explanations
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Table 2 -- Results of Operations
by Segment
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|
|
Three months
ended
|
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|
Nine months
ended
|
|
|
|
|
September
30,
|
|
|
|
September
30,
|
|
|
|
In millions,
unaudited
|
2011
|
|
2010
|
|
Change
|
|
2011
|
|
2010
|
|
Change
|
|
|
|
|
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|
|
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Segment Revenues:
|
|
|
|
|
|
|
|
|
|
|
|
|
Polyurethanes
|
$ 1,209
|
|
$
960
|
|
26%
|
|
$ 3,391
|
|
$ 2,659
|
|
28%
|
|
Performance
Products
|
846
|
|
678
|
|
25%
|
|
2,546
|
|
1,963
|
|
30%
|
|
Advanced
Materials
|
349
|
|
318
|
|
10%
|
|
1,059
|
|
929
|
|
14%
|
|
Textile Effects
|
173
|
|
190
|
|
(9)%
|
|
563
|
|
598
|
|
(6)%
|
|
Pigments
|
455
|
|
327
|
|
39%
|
|
1,243
|
|
883
|
|
41%
|
|
Eliminations and
other
|
(56)
|
|
(72)
|
|
(22)%
|
|
(213)
|
|
(194)
|
|
10%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
|
$ 2,976
|
|
$
2,401
|
|
24%
|
|
$ 8,589
|
|
$ 6,838
|
|
26%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Segment Adjusted
EBITDA(1):
|
|
|
|
|
|
|
|
|
|
|
|
|
Polyurethanes
|
$
140
|
|
$
99
|
|
41%
|
|
$
397
|
|
$
221
|
|
80%
|
|
Performance
Products
|
97
|
|
102
|
|
(5)%
|
|
314
|
|
278
|
|
13%
|
|
Advanced
Materials
|
26
|
|
42
|
|
(38)%
|
|
96
|
|
124
|
|
(23)%
|
|
Textile Effects
|
(29)
|
|
8
|
|
NM
|
|
(42)
|
|
16
|
|
NM
|
|
Pigments
|
161
|
|
66
|
|
144%
|
|
363
|
|
144
|
|
152%
|
|
Corporate, LIFO and
other
|
(50)
|
|
(44)
|
|
14%
|
|
(163)
|
|
(130)
|
|
25%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
|
$
345
|
|
$
273
|
|
26%
|
|
$
965
|
|
$
653
|
|
48%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
See end of press release for
footnote explanations
|
NM—Not
meaningful
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Table 3 -- Factors Impacting
Sales Revenue
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months
ended
|
|
|
September
30, 2011 vs. 2010
|
|
|
Average
Selling Price(a)
|
|
|
|
|
|
|
|
|
Local
|
|
Exchange
|
|
Sales
Mix
|
|
Sales
|
|
|
|
Unaudited
|
Currency
|
|
Rate
|
|
&
Other
|
|
Volume(a)
|
|
Total
|
|
|
|
|
|
|
|
|
|
|
|
|
Polyurethanes
|
18%
|
|
5%
|
|
4%
|
|
(1)%
|
|
26%
|
|
Performance Products
|
20%
|
|
5%
|
|
---
|
|
---
|
|
25%
|
|
Advanced Materials
|
5%
|
|
7%
|
|
(1)%
|
|
(1)%
|
|
10%
|
|
Textile Effects
|
(2)%
|
|
6%
|
|
---
|
|
(13)%
|
|
(9)%
|
|
Pigments
|
38%
|
|
9%
|
|
---
|
|
(8)%
|
|
39%
|
|
Total Company
|
20%
|
|
6%
|
|
3%
|
|
(5)%
|
|
24%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nine months
ended
|
|
|
September
30, 2011 vs. 2010
|
|
|
Average
Selling Price(a)
|
|
|
|
|
|
|
|
|
Local
|
|
Exchange
|
|
Sales
Mix
|
|
Sales
|
|
|
|
Unaudited
|
Currency
|
|
Rate
|
|
&
Other
|
|
Volume(a)
|
|
Total
|
|
|
|
|
|
|
|
|
|
|
|
|
Polyurethanes
|
18%
|
|
3%
|
|
(4)%
|
|
11%
|
|
28%
|
|
Performance Products
|
20%
|
|
3%
|
|
1%
|
|
6%
|
|
30%
|
|
Advanced Materials
|
8%
|
|
4%
|
|
2%
|
|
---
|
|
14%
|
|
Textile Effects
|
1%
|
|
4%
|
|
(1)%
|
|
(10)%
|
|
(6)%
|
|
Pigments
|
33%
|
|
5%
|
|
---
|
|
3%
|
|
41%
|
|
Total Company
|
15%
|
|
4%
|
|
2%
|
|
5%
|
|
26%
|
|
|
|
|
|
|
|
|
|
|
|
|
(a) Excludes revenues and sales
volumes from tolling, by-products and raw materials
|
|
|
|
|
|
|
|
|
|
|
|
Table 4 -- Reconciliation of
U.S. GAAP to Non-GAAP Measures
|
|
|
|
|
|
|
|
|
Income
Tax
|
|
Net Income
(Loss)
|
|
Diluted
Income (Loss)
|
|
|
EBITDA
|
|
(Expense)
Benefit
|
|
Attrib. to
HUN Corp.
|
|
Per
Share
|
|
|
Three months
ended
|
|
Three months
ended
|
|
Three months
ended
|
|
Three months
ended
|
|
|
September
30,
|
|
September
30,
|
|
September
30,
|
|
September
30,
|
|
In millions, except per share
amounts, unaudited
|
2011
|
|
2010
|
|
2011
|
|
2010
|
|
2011
|
|
2010
|
|
2011
|
|
2010
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP(1)
|
$
204
|
|
$
257
|
|
$
(55)
|
|
$
(41)
|
|
$
(34)
|
|
$
55
|
|
$
(0.14)
|
|
$
0.23
|
|
Adjustments:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Unallocated foreign
exchange (gain) loss
|
(1)
|
|
(2)
|
|
(5)
|
|
14
|
|
(6)
|
|
12
|
|
(0.02)
|
|
0.05
|
|
Legal settlements and
related expenses
|
4
|
|
-
|
|
(1)
|
|
-
|
|
3
|
|
-
|
|
0.01
|
|
-
|
|
Loss on early
extinguishment of debt
|
2
|
|
7
|
|
(1)
|
|
(2)
|
|
1
|
|
5
|
|
-
|
|
0.02
|
|
Restructuring, impairment
and plant closing costs
|
155
|
|
4
|
|
(3)
|
|
-
|
|
152
|
|
4
|
|
0.63
|
|
0.02
|
|
Expenses associated with
the terminated merger and related litigation
|
-
|
|
3
|
|
-
|
|
(1)
|
|
-
|
|
2
|
|
-
|
|
0.01
|
|
Discount amortization on
settlement financing associated with the terminated
merger
|
N/A
|
|
N/A
|
|
(3)
|
|
(2)
|
|
4
|
|
4
|
|
0.02
|
|
0.02
|
|
Acquisition
expenses
|
1
|
|
1
|
|
-
|
|
(1)
|
|
1
|
|
-
|
|
-
|
|
-
|
|
Gain on sale of assets
related to plant closures
|
(3)
|
|
-
|
|
-
|
|
-
|
|
(3)
|
|
-
|
|
(0.01)
|
|
-
|
|
(Income) loss from
discontinued operations, net of tax(2)
|
(17)
|
|
3
|
|
N/A
|
|
N/A
|
|
(10)
|
|
1
|
|
(0.04)
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted(1)
|
$
345
|
|
$
273
|
|
$
(68)
|
|
$
(33)
|
|
$
108
|
|
$
83
|
|
$
0.45
|
|
$
0.34
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted income tax
expense
|
|
|
|
|
|
|
|
|
68
|
|
33
|
|
|
|
|
|
Net income attributable to
noncontrolling interests, net of tax
|
|
|
|
|
|
|
|
|
2
|
|
1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted pre-tax
income(1)
|
|
|
|
|
|
|
|
|
$
178
|
|
$
117
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted effective tax
rate
|
|
|
|
|
|
|
|
|
38%
|
|
28%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income
Tax
|
|
Net Income
(Loss)
|
|
Diluted
Income (Loss)
|
|
|
EBITDA
|
|
(Expense)
Benefit
|
|
Attrib. to
HUN Corp.
|
|
Per
Share
|
|
|
Three months
ended
|
|
Three months
ended
|
|
Three months
ended
|
|
Three months
ended
|
|
|
June
30,
|
|
June
30,
|
|
June
30,
|
|
June
30,
|
|
In millions, except per share
amounts, unaudited
|
2011
|
|
2011
|
|
2011
|
|
2011
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP(1)
|
$
323
|
|
|
|
$
(34)
|
|
|
|
$
114
|
|
|
|
$
0.47
|
|
|
|
Adjustments:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Unallocated foreign
exchange (gain) loss
|
(3)
|
|
|
|
4
|
|
|
|
1
|
|
|
|
-
|
|
|
|
Gain on consolidation of a
variable interest entity
|
(12)
|
|
|
|
2
|
|
|
|
(10)
|
|
|
|
(0.04)
|
|
|
|
Restructuring, impairment
and plant closing costs
|
9
|
|
|
|
(1)
|
|
|
|
8
|
|
|
|
0.03
|
|
|
|
Discount amortization on
settlement financing associated with the terminated
merger
|
N/A
|
|
|
|
(2)
|
|
|
|
5
|
|
|
|
0.02
|
|
|
|
Acquisition
expenses
|
3
|
|
|
|
(1)
|
|
|
|
2
|
|
|
|
0.01
|
|
|
|
Gain on sale of assets
related to plant closures
|
(3)
|
|
|
|
-
|
|
|
|
(3)
|
|
|
|
(0.01)
|
|
|
|
Loss from discontinued
operations, net of tax(2)
|
2
|
|
|
|
N/A
|
|
|
|
1
|
|
|
|
-
|
|
|
|
Extraordinary gain on the
acquisition of a business, net of tax(3)
|
(1)
|
|
|
|
-
|
|
|
|
(1)
|
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted(1)
|
$
318
|
|
|
|
$
(32)
|
|
|
|
$
117
|
|
|
|
$
0.48
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted income tax
expense
|
|
|
|
|
|
|
|
|
32
|
|
|
|
|
|
|
|
Net income attributable to
noncontrolling interests, net of tax
|
|
|
|
|
|
|
|
|
10
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted pre-tax
income(1)
|
|
|
|
|
|
|
|
|
$
159
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted effective tax
rate
|
|
|
|
|
|
|
|
|
20%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income
Tax
|
|
Net Income
(Loss)
|
|
Diluted
Income (Loss)
|
|
|
EBITDA
|
|
(Expense)
Benefit
|
|
Attrib. to
HUN Corp.
|
|
Per
Share
|
|
|
Nine months
ended
|
|
Nine months
ended
|
|
Nine months
ended
|
|
Nine months
ended
|
|
|
September
30,
|
|
September
30,
|
|
September
30,
|
|
September
30,
|
|
In millions, except per share
amounts, unaudited
|
2011
|
|
2010
|
|
2011
|
|
2010
|
|
2011
|
|
2010
|
|
2011
|
|
2010
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP(1)
|
$
766
|
|
$
533
|
|
$
(111)
|
|
$
(46)
|
|
$
142
|
|
$
(3)
|
|
$
0.59
|
|
$
(0.01)
|
|
Adjustments:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Unallocated foreign
exchange (gain) loss
|
(6)
|
|
(3)
|
|
5
|
|
5
|
|
(1)
|
|
2
|
|
-
|
|
0.01
|
|
Legal settlements and
related expenses
|
38
|
|
-
|
|
(14)
|
|
-
|
|
24
|
|
-
|
|
0.10
|
|
-
|
|
Loss on early
extinguishment of debt
|
5
|
|
169
|
|
(2)
|
|
(17)
|
|
3
|
|
152
|
|
0.01
|
|
0.63
|
|
Gain on consolidation of a
variable interest entity
|
(12)
|
|
-
|
|
2
|
|
-
|
|
(10)
|
|
-
|
|
(0.04)
|
|
-
|
|
Restructuring, impairment
and plant closing costs
|
171
|
|
24
|
|
(4)
|
|
(1)
|
|
167
|
|
23
|
|
0.69
|
|
0.10
|
|
Expenses associated with
the terminated merger and related litigation
|
-
|
|
4
|
|
-
|
|
(1)
|
|
-
|
|
3
|
|
-
|
|
0.01
|
|
Discount amortization on
settlement financing associated with the terminated
merger
|
N/A
|
|
N/A
|
|
(8)
|
|
(7)
|
|
13
|
|
12
|
|
0.05
|
|
0.05
|
|
Acquisition
expenses
|
5
|
|
2
|
|
(1)
|
|
(1)
|
|
4
|
|
1
|
|
0.02
|
|
-
|
|
Gain on sale of assets
related to plant closures
|
(6)
|
|
-
|
|
-
|
|
-
|
|
(6)
|
|
-
|
|
(0.02)
|
|
-
|
|
Loss (income) from
discontinued operations, net of tax(2)
|
6
|
|
(76)
|
|
N/A
|
|
N/A
|
|
5
|
|
(48)
|
|
0.02
|
|
(0.20)
|
|
Extraordinary gain on the
acquisition of a business, net of tax
|
(2)
|
|
-
|
|
-
|
|
-
|
|
(2)
|
|
-
|
|
(0.01)
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted(1)
|
$
965
|
|
$
653
|
|
$
(133)
|
|
$
(68)
|
|
$
339
|
|
$
142
|
|
$
1.40
|
|
$
0.59
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted income tax
expense
|
|
|
|
|
|
|
|
|
133
|
|
68
|
|
|
|
|
|
Net income attributable to
noncontrolling interests, net of tax
|
|
|
|
|
|
|
|
|
17
|
|
3
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted pre-tax
income(1)
|
|
|
|
|
|
|
|
|
$
489
|
|
$
213
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted effective tax
rate
|
|
|
|
|
|
|
|
|
27%
|
|
32%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
See end of press release for
footnote explanations
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Table 5 -- Reconciliation of Net
Income (Loss) to EBITDA
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months
ended
|
|
Nine months
ended
|
|
|
September
30,
|
|
June
30,
|
|
September
30,
|
|
In millions,
unaudited
|
2011
|
|
2010
|
|
2011
|
|
2011
|
|
2010
|
|
|
|
|
|
|
|
|
|
|
|
|
Net (loss) income attributable
to Huntsman Corporation
|
$
(34)
|
|
$
55
|
|
$
114
|
|
$
142
|
|
$
(3)
|
|
Interest expense, net
|
63
|
|
64
|
|
65
|
|
187
|
|
168
|
|
Income tax expense from
continuing operations
|
55
|
|
41
|
|
34
|
|
111
|
|
46
|
|
Income tax expense (benefit)
from discontinued operations(2)
|
7
|
|
(2)
|
|
(1)
|
|
(1)
|
|
27
|
|
Depreciation and amortization of
continuing operations
|
113
|
|
99
|
|
111
|
|
327
|
|
294
|
|
Depreciation and amortization of
discontinued operations(2)
|
-
|
|
-
|
|
-
|
|
-
|
|
1
|
|
|
|
|
|
|
|
|
|
|
|
|
EBITDA(1)
|
$
204
|
|
$
257
|
|
$
323
|
|
$
766
|
|
$
533
|
|
|
|
|
|
|
|
|
|
|
|
|
See end of press release for
footnote explanations
|
|
|
|
|
|
|
|
|
|
|
|
Table 6 -- Selected Balance
Sheet Items
|
|
|
|
|
|
|
|
|
|
September
30,
|
|
June
30,
|
|
December
31,
|
|
September
30,
|
|
In millions
|
|
2011
|
|
2011
|
|
2010
|
|
2010
|
|
|
|
(unaudited)
|
|
(unaudited)
|
|
|
|
(unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
Cash
|
|
$
459
|
|
$
690
|
|
$
973
|
|
$
1,011
|
|
Accounts and notes receivable,
net
|
|
1,762
|
|
1,836
|
|
1,413
|
|
1,611
|
|
Inventories
|
|
1,687
|
|
1,746
|
|
1,396
|
|
1,375
|
|
Other current assets
|
|
366
|
|
308
|
|
226
|
|
248
|
|
Property, plant and equipment,
net
|
|
3,659
|
|
3,825
|
|
3,605
|
|
3,594
|
|
Other assets
|
|
1,075
|
|
1,071
|
|
1,101
|
|
1,027
|
|
|
|
|
|
|
|
|
|
|
|
Total
assets
|
|
$
9,008
|
|
$
9,476
|
|
$
8,714
|
|
$
8,866
|
|
|
|
|
|
|
|
|
|
|
|
Accounts payable
|
|
$
941
|
|
$
1,110
|
|
$
842
|
|
$
817
|
|
Other current
liabilities
|
|
787
|
|
800
|
|
692
|
|
656
|
|
Current portion of
debt
|
|
230
|
|
289
|
|
519
|
|
384
|
|
Long-term debt
|
|
3,847
|
|
3,886
|
|
3,627
|
|
3,953
|
|
Other liabilities
|
|
1,269
|
|
1,155
|
|
1,184
|
|
1,168
|
|
Total equity
|
|
1,934
|
|
2,236
|
|
1,850
|
|
1,888
|
|
|
|
|
|
|
|
|
|
|
|
Total
liabilities and equity
|
|
$
9,008
|
|
$
9,476
|
|
$
8,714
|
|
$
8,866
|
|
|
|
|
|
|
|
|
|
|
Table 7 -- Outstanding
Debt
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
September
30,
|
|
June
30,
|
|
December
31,
|
|
September
30,
|
|
In millions
|
|
2011
|
|
2011
|
|
2010
|
|
2010
|
|
|
|
(unaudited)
|
|
(unaudited)
|
|
|
|
(unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
Debt:
|
|
|
|
|
|
|
|
|
|
Senior credit
facilities
|
|
$
1,694
|
|
$
1,692
|
|
$
1,688
|
|
$
1,686
|
|
Accounts receivable
programs
|
|
245
|
|
254
|
|
238
|
|
243
|
|
Senior notes
|
|
467
|
|
462
|
|
452
|
|
447
|
|
Senior Subordinated
notes
|
|
1,076
|
|
1,198
|
|
1,279
|
|
1,442
|
|
Variable interest
entities
|
|
306
|
|
313
|
|
200
|
|
199
|
|
Other debt
|
|
289
|
|
256
|
|
289
|
|
320
|
|
|
|
|
|
|
|
|
|
|
|
Total debt - excluding
affiliates
|
|
4,077
|
|
4,175
|
|
4,146
|
|
4,337
|
|
|
|
|
|
|
|
|
|
|
|
Total cash
|
|
459
|
|
690
|
|
973
|
|
1,011
|
|
|
|
|
|
|
|
|
|
|
|
Net debt- excluding
affiliates
|
|
$
3,618
|
|
$
3,485
|
|
$
3,173
|
|
$
3,326
|
|
|
|
|
|
|
|
|
|
|
Table 8 -- Summarized Statement
of Cash Flows
|
|
|
|
|
Three months
ended
|
|
Nine months
ended
|
|
|
September
30,
|
|
September
30,
|
|
In millions,
unaudited
|
2011
|
|
2011
|
|
2010
|
|
|
|
|
|
|
|
|
Total cash at beginning of
period
|
$
690
|
|
$
973
|
|
$
1,750
|
|
|
|
|
|
|
|
|
Net cash provided by (used in)
operating activities
|
24
|
|
25
|
|
(350)
|
|
Net cash used in investing
activities
|
(89)
|
|
(200)
|
|
(85)
|
|
Net cash used in financing
activities
|
(157)
|
|
(335)
|
|
(314)
|
|
Change in restricted
cash
|
(1)
|
|
(1)
|
|
3
|
|
Effect of exchange rate changes
on cash
|
(8)
|
|
(3)
|
|
7
|
|
|
|
|
|
|
|
|
Total cash at end of
period
|
$
459
|
|
$
459
|
|
$
1,011
|
|
|
|
|
|
|
|
|
Supplemental cash flow
information:
|
|
|
|
|
|
|
Cash paid for
interest
|
$
(70)
|
|
$
(178)
|
|
$
(142)
|
|
Cash paid for income
taxes
|
$
(49)
|
|
$
(84)
|
|
$
(19)
|
|
Cash paid for capital
expenditures
|
$
(93)
|
|
$
(217)
|
|
$
(132)
|
|
Depreciation &
amortization
|
$
113
|
|
$
327
|
|
$
295
|
|
|
|
|
|
|
|
|
Changes in primary working
capital:
|
|
|
|
|
|
|
Accounts and notes
receivable
|
$
11
|
|
$
(314)
|
|
$
(318)
|
|
Inventories
|
(3)
|
|
(273)
|
|
(184)
|
|
Accounts
payable
|
(119)
|
|
81
|
|
61
|
|
Total
|
$
(111)
|
|
$
(506)
|
|
$
(441)
|
|
|
|
|
|
|
|
Footnotes
|
|
(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 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. 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 Table 5
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;
unallocated foreign currency (gain) loss; certain legal and
contract settlements; losses from early extinguishment of debt;
gain on consolidation of a variable interest entity; 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 Table 4 above.
|
|
|
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; gain on consolidation of a variable
interest entity; 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 Table 4 above.
|
|
|
During the first 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 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.
|
|
|
|
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.
SOURCE Huntsman Corporation