Second Quarter Highlights
- Second quarter 2022 net income of $242
million compared to net income of $172 million in the prior year period; second
quarter 2022 diluted earnings per share of $1.10 compared to diluted earnings per share of
$0.70 in the prior year period.
- Second quarter 2022 adjusted net income of $265 million compared to adjusted net income of
$191 million in the prior year
period; second quarter 2022 adjusted diluted earnings per share of
$1.28 compared to adjusted diluted
earnings per share of $0.86 in the
prior year period.
- Second quarter 2022 adjusted EBITDA of $432 million compared to adjusted EBITDA of
$334 million in the prior year
period.
- Second quarter 2022 net cash provided by operating activities
from continuing operations was $231
million. Free cash flow from continuing operations was
$162 million for the second quarter
2022 compared to an outflow of $83
million in the prior year period.
- Repurchased approximately 8.4 million shares for approximately
$291 million in the second quarter
2022.
THE
WOODLANDS, Texas, Aug. 2, 2022
/PRNewswire/ --
|
|
Three months
ended
|
|
Six months
ended
|
|
|
June
30,
|
|
June
30,
|
In millions, except per
share amounts
|
|
2022
|
|
2021
|
|
2022
|
|
2021
|
|
|
|
|
|
|
|
|
|
Revenues
|
|
$ 2,362
|
|
$ 2,024
|
|
$ 4,751
|
|
$ 3,861
|
|
|
|
|
|
|
|
|
|
Net income
|
|
$ 242
|
|
$ 172
|
|
$ 482
|
|
$ 272
|
Adjusted net income
(1)
|
|
$ 265
|
|
$ 191
|
|
$ 521
|
|
$ 338
|
|
|
|
|
|
|
|
|
|
Diluted income per
share
|
|
$ 1.10
|
|
$ 0.70
|
|
$ 2.14
|
|
$ 1.07
|
Adjusted diluted income
per share(1)
|
|
$ 1.28
|
|
$ 0.86
|
|
$ 2.47
|
|
$ 1.52
|
|
|
|
|
|
|
|
|
|
Adjusted
EBITDA(1)
|
|
$ 432
|
|
$ 334
|
|
$ 847
|
|
$ 623
|
|
|
|
|
|
|
|
|
|
Net cash provided by
(used in) operating activities from continuing
operations
|
|
$ 231
|
|
$
(7)
|
|
$ 316
|
|
$
(23)
|
Free cash flow from
continuing operations(2)
|
|
$ 162
|
|
$
(83)
|
|
$ 178
|
|
$ (197)
|
|
|
|
|
|
|
|
|
|
See end of press
release for footnote explanations and reconciliations of non-GAAP
measures.
|
|
|
|
|
|
|
|
Huntsman Corporation (NYSE: HUN) today reported second quarter
2022 results with revenues of $2,362
million, net income of $242
million, adjusted net income of $265
million and adjusted EBITDA of $432
million.
Peter R. Huntsman, Chairman,
President, and CEO, commented:
"Second quarter EBITDA margins exceeded 18% on the back of
our value over volume strategy, improved pricing, and solid cost
control. We remain well ahead or on track to meet the targets
that we presented at our Investor Day in November 2021, despite an increasingly
challenging economic environment due to extremely high European
natural gas prices, headwinds in China associated with government-mandated
shutdowns and monetary tightening in the
United States. In addition to the positive results, we
repurchased approximately $500
million in shares in the first six months of the year and
our balance sheet remains extremely strong with a net leverage
ratio of 0.6x.
"Regardless of any macro headwinds that may impact the
chemical industry in the coming quarters, our priorities around
cost control, a focus on downstream businesses and returning
capital to shareholders will remain unchanged. Our balance
sheet and cash generation places us in an enviable position to take
advantage of opportunities as they present themselves to invest in
our core businesses."
Segment Analysis for 2Q22 Compared to
2Q21
Polyurethanes
The increase in revenues in our Polyurethanes segment for the
three months ended June 30, 2022
compared to the same period of 2021 was primarily due to higher MDI
average selling prices, partially offset by lower sales volumes.
MDI average selling prices increased in all our regions. Sales
volumes decreased primarily due to the extended government-mandated
COVID lockdown in Shanghai, China
and lower demand, partially offset by favorable comparisons in
Europe due to the scheduled
turnaround at our Rotterdam,
Netherlands facility in the second quarter of 2021. The
increase in segment adjusted EBITDA was primarily due to higher MDI
margins and a gain from an insurance settlement, partially offset
by lower sales volumes, the negative impact of weaker major
international currencies against the U.S. dollar and lower equity
earnings from our minority-owned joint venture in China.
Performance Products
The increase in revenues in our Performance Products segment for
the three months ended June 30,
2022 compared to the same period of 2021 was primarily due
to higher average selling prices, partially offset by lower
sales volumes. Average selling prices increased primarily due to
commercial excellence programs and in response to an increase in
raw material costs. Sales volumes decreased primarily due to a
shift in product mix based on demand and business
strategy. The increase in segment adjusted EBITDA was
primarily due to increased revenues and margins, partially offset
by a slight increase in fixed costs.
Advanced Materials
The increase in revenues in our Advanced Materials segment for
the three months ended June 30, 2022
compared to the same period of 2021 was primarily due
to higher average selling prices, partially offset by lower
sales volumes. Average selling prices increased largely in
response to higher raw material, energy and logistics costs as well
as improved sales mix. Sales volumes decreased primarily due to
deselection of lower margin base resins business. The
increase in segment adjusted EBITDA was primarily due to
higher sales prices and improved sales mix.
Textile Effects
The decrease in revenues in our Textile Effects segment for the
three months ended June 30, 2022
compared to the same period of 2021 was primarily due to lower
sales volumes, partially offset by higher average selling prices.
Sales volumes decreased primarily due to a deselection of certain
volume as well as lower demand. Average selling prices
increased in response to higher direct costs. The decrease in
segment adjusted EBITDA was primarily due to lower revenues,
partially offset by improved portfolio mix.
Corporate, LIFO and other
For the three months ended June 30,
2022, adjusted EBITDA from Corporate and other was a loss of
$38 million as compared to a loss of
$48 million for the same period of
2021. The year-over-year difference was primarily due to
translational foreign currency gains related to the Chinese
Yuan.
Liquidity and Capital
Resources
During the three months ended June 30,
2022, our free cash flow from continuing operations was a
source of cash of $162 million as
compared to a use of cash of $83
million in the same period of 2021. As of June 30, 2022, we had approximately $2.1 billion of combined cash and unused
borrowing capacity.
During the three months ended June 30,
2022, we spent $69 million on
capital expenditures as compared to $76
million in the same period of 2021. For 2022, we
expect to spend approximately $300
million on capital expenditures.
Income Taxes
In the second quarter of 2022, both our effective tax rate and
our adjusted effective tax rate was 22%. We expect our 2022
adjusted effective tax rate to be approximately 22% to 24%.
Earnings Conference Call
Information
We will hold a conference call to discuss our second quarter
2022 financial results on Tuesday, August 2,
2022 at 10:00 a.m. ET.
Webcast link:
https://event.choruscall.com/mediaframe/webcast.html?webcastid=E6B5RbBA
Participant dial-in numbers:
Domestic
callers:
(877) 402-8037
International
callers:
(201) 378-4913
The conference call will be accompanied by presentation slides
that will be accessible via the webcast link and Huntsman's
investor relations website, www.huntsman.com/investors. Upon
conclusion of the call, the webcast replay will be accessible via
Huntsman's website.
Upcoming Conferences
During the second quarter 2022, a member of management is
expected to present at:
Jefferies Industrials Conference on August
10, 2022
Seaport Global Virtual Chemicals Conference on August 23, 2022
UBS Chemicals Conference on September 7,
2022
A webcast of the presentation, if applicable, along with
accompanying materials will be available at
www.huntsman.com/investors.
Table 1 -- Results
of Operations
|
|
|
|
|
|
|
|
|
|
|
|
Three months
ended
|
|
Six months
ended
|
|
|
June
30,
|
|
June
30,
|
In millions, except per
share amounts
|
|
2022
|
|
2021
|
|
2022
|
|
2021
|
|
|
|
|
|
|
|
|
|
Revenues
|
|
$ 2,362
|
|
$ 2,024
|
|
$ 4,751
|
|
$ 3,861
|
Cost of goods
sold
|
|
1,824
|
|
1,593
|
|
3,648
|
|
3,038
|
Gross
profit
|
|
538
|
|
431
|
|
1,103
|
|
823
|
Operating expenses,
net
|
|
221
|
|
211
|
|
482
|
|
453
|
Restructuring,
impairment and plant closing costs
|
|
24
|
|
11
|
|
24
|
|
35
|
Operating
income
|
|
293
|
|
209
|
|
597
|
|
335
|
Interest expense,
net
|
|
(16)
|
|
(18)
|
|
(30)
|
|
(37)
|
Equity in income of
investment in unconsolidated affiliates
|
|
19
|
|
46
|
|
34
|
|
84
|
Fair value adjustments
to Venator investment, net
|
|
-
|
|
(6)
|
|
(2)
|
|
(25)
|
Loss on early
extinguishment of debt
|
|
-
|
|
(27)
|
|
-
|
|
(27)
|
Other income,
net
|
|
13
|
|
9
|
|
14
|
|
16
|
Income from
continuing operations before income taxes
|
|
309
|
|
213
|
|
613
|
|
346
|
Income tax
expense
|
|
(67)
|
|
(42)
|
|
(132)
|
|
(76)
|
Income from
continuing operations
|
|
242
|
|
171
|
|
481
|
|
270
|
Income from
discontinued operations, net of tax
|
|
-
|
|
1
|
|
1
|
|
2
|
Net
income
|
|
242
|
|
172
|
|
482
|
|
272
|
Net income attributable
to noncontrolling interests, net of tax
|
|
(14)
|
|
(16)
|
|
(31)
|
|
(33)
|
Net income
attributable to Huntsman Corporation
|
|
$ 228
|
|
$ 156
|
|
$ 451
|
|
$ 239
|
|
|
|
|
|
|
|
|
|
Adjusted
EBITDA(1)
|
|
$ 432
|
|
$ 334
|
|
$ 847
|
|
$ 623
|
Adjusted net income
(1)
|
|
$ 265
|
|
$ 191
|
|
$ 521
|
|
$ 338
|
|
|
|
|
|
|
|
|
|
Basic income per
share
|
|
$ 1.11
|
|
$ 0.71
|
|
$ 2.16
|
|
$ 1.08
|
Diluted income per
share
|
|
$ 1.10
|
|
$ 0.70
|
|
$ 2.14
|
|
$ 1.07
|
Adjusted diluted
income per share(1)
|
|
$ 1.28
|
|
$ 0.86
|
|
$ 2.47
|
|
$ 1.52
|
|
|
|
|
|
|
|
|
|
Common share
information:
|
|
|
|
|
|
|
|
|
Basic weighted average
shares
|
|
205
|
|
221
|
|
209
|
|
221
|
Diluted weighted
average shares
|
|
207
|
|
223
|
|
211
|
|
223
|
Diluted shares for
adjusted diluted income per share
|
|
207
|
|
223
|
|
211
|
|
223
|
|
|
|
|
|
|
|
|
|
See end of press
release for footnote explanations.
|
|
|
|
|
|
|
|
|
Table 2 -- Results
of Operations by Segment
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months
ended
|
|
|
|
Six months
ended
|
|
|
|
|
June
30,
|
|
Better
/
|
|
June
30,
|
|
Better
/
|
In millions
|
|
2022
|
|
2021
|
|
(Worse)
|
|
2022
|
|
2021
|
|
(Worse)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Segment
Revenues:
|
|
|
|
|
|
|
|
|
|
|
|
|
Polyurethanes
|
|
$ 1,353
|
|
$ 1,155
|
|
17 %
|
|
$ 2,739
|
|
$ 2,223
|
|
23 %
|
Performance
Products
|
|
492
|
|
371
|
|
33 %
|
|
972
|
|
676
|
|
44 %
|
Advanced
Materials
|
|
336
|
|
299
|
|
12 %
|
|
671
|
|
577
|
|
16 %
|
Textile
Effects
|
|
192
|
|
207
|
|
(7 %)
|
|
389
|
|
400
|
|
(3 %)
|
Total Reportable
Segments' Revenue
|
|
2,373
|
|
2,032
|
|
17 %
|
|
4,771
|
|
3,876
|
|
23 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Intersegment
Eliminations
|
|
(11)
|
|
(8)
|
|
n/m
|
|
(20)
|
|
(15)
|
|
n/m
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
Revenues
|
|
$ 2,362
|
|
$ 2,024
|
|
17 %
|
|
$ 4,751
|
|
$ 3,861
|
|
23 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Segment Adjusted
EBITDA(1):
|
|
|
|
|
|
|
|
|
|
|
|
|
Polyurethanes
|
|
$ 229
|
|
$ 208
|
|
10 %
|
|
$ 453
|
|
$ 415
|
|
9 %
|
Performance
Products
|
|
152
|
|
88
|
|
73 %
|
|
298
|
|
151
|
|
97 %
|
Advanced
Materials
|
|
67
|
|
58
|
|
16 %
|
|
134
|
|
102
|
|
31 %
|
Textile
Effects
|
|
22
|
|
28
|
|
(21 %)
|
|
50
|
|
53
|
|
(6 %)
|
Total Reportable
Segments' Adjusted EBITDA(1)
|
|
470
|
|
382
|
|
23 %
|
|
935
|
|
721
|
|
30 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Corporate, LIFO and
other
|
|
(38)
|
|
(48)
|
|
21 %
|
|
(88)
|
|
(98)
|
|
10 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Adjusted
EBITDA(1)
|
|
$ 432
|
|
$ 334
|
|
29 %
|
|
$ 847
|
|
$ 623
|
|
36 %
|
n/m = not
meaningful
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
See end of press
release for footnote explanations.
|
|
|
|
|
|
|
|
|
|
|
|
|
Table 3 -- Factors
Impacting Sales Revenue
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months
ended
|
|
|
June 30, 2022 vs.
2021
|
|
|
Average Selling
Price(a)
|
|
|
|
|
|
|
|
|
Local
|
|
Exchange
|
|
Sales
Mix
|
|
Sales
|
|
|
|
|
Currency
|
|
Rate
|
|
&
Other
|
|
Volume(b)
|
|
Total
|
|
|
|
|
|
|
|
|
|
|
|
Polyurethanes
|
|
24 %
|
|
(4 %)
|
|
1 %
|
|
(4 %)
|
|
17 %
|
|
|
|
|
|
|
|
|
|
|
|
Performance
Products
|
|
33 %
|
|
(3 %)
|
|
6 %
|
|
(3 %)
|
|
33 %
|
|
|
|
|
|
|
|
|
|
|
|
Advanced
Materials
|
|
21 %
|
|
(5 %)
|
|
12 %
|
|
(16 %)
|
|
12 %
|
|
|
|
|
|
|
|
|
|
|
|
Textile
Effects
|
|
12 %
|
|
(3 %)
|
|
0 %
|
|
(16 %)
|
|
(7 %)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Six months
ended
|
|
|
June 30, 2022 vs.
2021
|
|
|
Average Selling
Price(a)
|
|
|
|
|
|
|
|
|
Local
|
|
Exchange
|
|
Sales
Mix
|
|
Sales
|
|
|
|
|
Currency
|
|
Rate
|
|
&
Other
|
|
Volume(b)
|
|
Total
|
|
|
|
|
|
|
|
|
|
|
|
Polyurethanes
|
|
27 %
|
|
(4 %)
|
|
0 %
|
|
0 %
|
|
23 %
|
|
|
|
|
|
|
|
|
|
|
|
Performance
Products
|
|
40 %
|
|
(3 %)
|
|
7 %
|
|
0 %
|
|
44 %
|
|
|
|
|
|
|
|
|
|
|
|
Advanced
Materials
|
|
23 %
|
|
(4 %)
|
|
14 %
|
|
(17 %)
|
|
16 %
|
|
|
|
|
|
|
|
|
|
|
|
Textile
Effects
|
|
14 %
|
|
(2 %)
|
|
(2 %)
|
|
(13 %)
|
|
(3 %)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(a) Excludes sales
from tolling arrangements, by-products and raw
materials.
|
|
|
|
|
(b) Excludes sales
from by-products and raw materials.
|
|
|
|
|
|
|
|
|
Table 4 --
Reconciliation of U.S. GAAP to Non-GAAP Measures
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income
Tax
|
|
|
|
|
|
Diluted
Income
|
|
|
|
EBITDA
|
|
(Expense)
Benefit
|
|
Net
Income
|
|
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
|
|
2022
|
|
2021
|
|
2022
|
|
2021
|
|
2022
|
|
2021
|
|
2022
|
|
2021
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
income
|
|
$
242
|
|
$
172
|
|
|
|
|
|
$
242
|
|
$
172
|
|
$ 1.17
|
|
$ 0.77
|
|
Net income attributable
to noncontrolling interests
|
|
(14)
|
|
(16)
|
|
|
|
|
|
(14)
|
|
(16)
|
|
(0.07)
|
|
(0.07)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
attributable to Huntsman Corporation
|
|
228
|
|
156
|
|
|
|
|
|
228
|
|
156
|
|
1.10
|
|
0.70
|
|
Interest expense, net
from continuing operations
|
|
16
|
|
18
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income tax expense from
continuing operations
|
|
67
|
|
42
|
|
$
(67)
|
|
$
(42)
|
|
|
|
|
|
|
|
|
|
Depreciation and
amortization from continuing operations
|
|
72
|
|
73
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Business acquisition
and integration expenses and purchase accounting inventory
adjustments
|
|
4
|
|
5
|
|
(2)
|
|
-
|
|
2
|
|
5
|
|
0.01
|
|
0.02
|
|
Costs associated with
the Albemarle Settlement, net
|
|
1
|
|
-
|
|
-
|
|
-
|
|
1
|
|
-
|
|
-
|
|
-
|
|
EBITDA / Income from
discontinued operations, net of tax
|
|
-
|
|
(1)
|
|
N/A
|
|
N/A
|
|
-
|
|
(1)
|
|
-
|
|
-
|
|
Loss (gain) on sale of
businesses/assets
|
|
7
|
|
(30)
|
|
(1)
|
|
4
|
|
6
|
|
(26)
|
|
0.03
|
|
(0.12)
|
|
Income from transition
services arrangements
|
|
(1)
|
|
(3)
|
|
-
|
|
1
|
|
(1)
|
|
(2)
|
|
-
|
|
(0.01)
|
|
Fair value adjustments
to Venator Investment, net(a)
|
|
-
|
|
6
|
|
-
|
|
-
|
|
-
|
|
6
|
|
-
|
|
0.03
|
|
Loss on early
extinguishment of debt
|
|
-
|
|
27
|
|
-
|
|
(6)
|
|
-
|
|
21
|
|
-
|
|
0.09
|
|
Certain legal and other
settlements and related expenses
|
|
2
|
|
8
|
|
1
|
|
(2)
|
|
3
|
|
6
|
|
0.01
|
|
0.03
|
|
Certain non-recurring
information technology project implementation costs
|
|
1
|
|
3
|
|
(1)
|
|
(1)
|
|
-
|
|
2
|
|
-
|
|
0.01
|
|
Amortization of pension
and postretirement actuarial losses
|
|
13
|
|
21
|
|
(3)
|
|
(5)
|
|
10
|
|
16
|
|
0.05
|
|
0.07
|
|
Restructuring,
impairment and plant closing and transition costs
|
|
27
|
|
12
|
|
(7)
|
|
(2)
|
|
20
|
|
10
|
|
0.10
|
|
0.04
|
|
Plant incident
remediation credits
|
|
(5)
|
|
(3)
|
|
1
|
|
1
|
|
(4)
|
|
(2)
|
|
(0.02)
|
|
(0.01)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted(1)
|
|
$
432
|
|
$
334
|
|
$
(79)
|
|
$
(52)
|
|
$
265
|
|
$
191
|
|
$ 1.28
|
|
$ 0.86
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted income tax
expense(1)
|
|
|
|
|
|
|
|
|
|
$
79
|
|
$
52
|
|
|
|
|
|
Net income attributable
to noncontrolling interests, net of tax
|
|
|
|
|
|
|
|
|
|
14
|
|
16
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted pre-tax
income (1)
|
|
|
|
|
|
|
|
|
|
$
358
|
|
$
259
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted effective
tax rate(3)
|
|
|
|
|
|
|
|
|
|
22 %
|
|
20 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Effective tax
rate
|
|
|
|
|
|
|
|
|
|
22 %
|
|
20 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income
Tax
|
|
|
|
|
|
Diluted
Income
|
|
|
|
EBITDA
|
|
(Expense)
Benefit
|
|
Net
Income
|
|
Per
Share
|
|
|
|
Six months
ended
|
|
Six months
ended
|
|
Six months
ended
|
|
Six months
ended
|
|
|
|
June
30,
|
|
June
30,
|
|
June
30,
|
|
June
30,
|
|
In millions, except per
share amounts
|
|
2022
|
|
2021
|
|
2022
|
|
2021
|
|
2022
|
|
2021
|
|
2022
|
|
2021
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
income
|
|
$
482
|
|
$
272
|
|
|
|
|
|
$
482
|
|
$
272
|
|
$ 2.28
|
|
$ 1.22
|
|
Net income attributable
to noncontrolling interests
|
|
(31)
|
|
(33)
|
|
|
|
|
|
(31)
|
|
(33)
|
|
(0.15)
|
|
(0.15)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
attributable to Huntsman Corporation
|
|
451
|
|
239
|
|
|
|
|
|
451
|
|
239
|
|
2.14
|
|
1.07
|
|
Interest expense, net
from continuing operations
|
|
30
|
|
37
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income tax expense from
continuing operations
|
|
132
|
|
76
|
|
$
(132)
|
|
$
(76)
|
|
|
|
|
|
|
|
|
|
Depreciation and
amortization from continuing operations
|
|
143
|
|
147
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Business acquisition
and integration expenses and purchase accounting inventory
adjustments
|
|
10
|
|
14
|
|
(2)
|
|
(2)
|
|
8
|
|
12
|
|
0.04
|
|
0.05
|
|
Costs associated with
the Albemarle Settlement, net
|
|
2
|
|
-
|
|
-
|
|
-
|
|
2
|
|
-
|
|
0.01
|
|
-
|
|
EBITDA / Income from
discontinued operations, net of tax
|
|
(1)
|
|
(2)
|
|
N/A
|
|
N/A
|
|
(1)
|
|
(2)
|
|
-
|
|
(0.01)
|
|
Loss (gain) on sale of
businesses/assets
|
|
11
|
|
(30)
|
|
(2)
|
|
4
|
|
9
|
|
(26)
|
|
0.04
|
|
(0.12)
|
|
Income from transition
services arrangements
|
|
(2)
|
|
(4)
|
|
-
|
|
1
|
|
(2)
|
|
(3)
|
|
(0.01)
|
|
(0.01)
|
|
Fair value adjustments
to Venator Investment, net(a)
|
|
2
|
|
25
|
|
-
|
|
-
|
|
2
|
|
25
|
|
0.01
|
|
0.11
|
|
Loss on early
extinguishment of debt
|
|
-
|
|
27
|
|
-
|
|
(6)
|
|
-
|
|
21
|
|
-
|
|
0.09
|
|
Certain legal
settlements and related expenses
|
|
14
|
|
10
|
|
(3)
|
|
(3)
|
|
11
|
|
7
|
|
0.05
|
|
0.03
|
|
Certain non-recurring
information technology project implementation costs
|
|
3
|
|
4
|
|
(1)
|
|
(1)
|
|
2
|
|
3
|
|
0.01
|
|
0.01
|
|
Amortization of pension
and postretirement actuarial losses
|
|
27
|
|
43
|
|
(6)
|
|
(10)
|
|
21
|
|
33
|
|
0.10
|
|
0.15
|
|
Restructuring,
impairment and plant closing and transition costs
|
|
30
|
|
36
|
|
(8)
|
|
(8)
|
|
22
|
|
28
|
|
0.10
|
|
0.13
|
|
Plant incident
remediation (credits) costs
|
|
(5)
|
|
1
|
|
1
|
|
-
|
|
(4)
|
|
1
|
|
(0.02)
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted(1)
|
|
$
847
|
|
$
623
|
|
$
(153)
|
|
$
(101)
|
|
$
521
|
|
$
338
|
|
$ 2.47
|
|
$ 1.52
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted income tax
expense(1)
|
|
|
|
|
|
|
|
|
|
$
153
|
|
$
101
|
|
|
|
|
|
Net income attributable
to noncontrolling interests, net of tax
|
|
|
|
|
|
|
|
|
|
31
|
|
33
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted pre-tax
income(1)
|
|
|
|
|
|
|
|
|
|
$
705
|
|
$
472
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted effective
tax rate(3)
|
|
|
|
|
|
|
|
|
|
22 %
|
|
21 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Effective tax
rate
|
|
|
|
|
|
|
|
|
|
22 %
|
|
22 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(a) Represents the
changes in market value in Huntsman's remaining interest in Venator
and related option to sell those remaining Venator
shares.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
N/A = not
applicable
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
See end of press
release for footnote explanations.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Table 5 -- Selected
Balance Sheet Items
|
|
|
|
|
|
|
|
June
30,
|
|
December
31,
|
In millions
|
|
2022
|
|
2021
|
|
|
|
|
|
Cash
|
|
$
608
|
|
$
1,041
|
Accounts and notes
receivable, net
|
|
1,288
|
|
1,186
|
Inventories
|
|
1,401
|
|
1,201
|
Receivable associated
with the Albemarle Settlement
|
-
|
|
333
|
Other current
assets
|
|
140
|
|
167
|
Property, plant and
equipment, net
|
|
2,486
|
|
2,576
|
Other noncurrent
assets
|
|
2,798
|
|
2,888
|
|
|
|
|
|
Total
assets
|
|
$
8,721
|
|
$
9,392
|
|
|
|
|
|
Accounts
payable
|
|
$
1,128
|
|
$
1,208
|
Other current
liabilities
|
|
481
|
|
831
|
Current portion of
debt
|
|
13
|
|
12
|
Long-term
debt
|
|
1,508
|
|
1,538
|
Other noncurrent
liabilities
|
|
1,240
|
|
1,244
|
Huntsman Corporation
stockholders' equity
|
|
4,147
|
|
4,378
|
Noncontrolling
interests in subsidiaries
|
|
204
|
|
181
|
|
|
|
|
|
Total liabilities
and equity
|
|
$
8,721
|
|
$
9,392
|
Table 6 --
Outstanding Debt
|
|
|
|
|
|
|
|
June
30,
|
|
December
31,
|
In millions
|
|
2022
|
|
2021
|
|
|
|
|
|
Debt:
|
|
|
|
|
Revolving credit
facility
|
|
$
-
|
|
$
-
|
Accounts receivable
programs
|
|
-
|
|
-
|
Senior notes
|
|
1,451
|
|
1,473
|
Variable interest
entities
|
|
40
|
|
45
|
Other debt
|
|
30
|
|
32
|
|
|
|
|
|
Total debt -
excluding affiliates
|
|
1,521
|
|
1,550
|
|
|
|
|
|
Total cash
|
|
608
|
|
1,041
|
|
|
|
|
|
Net debt - excluding
affiliates(4)
|
|
$
913
|
|
$
509
|
|
|
|
|
|
See end of press
release for footnote explanations.
|
|
|
|
|
Table 7 --
Summarized Statement of Cash Flows
|
|
|
|
|
|
|
|
|
|
|
|
Three months
ended
|
|
Six months
ended
|
|
|
June
30,
|
|
June
30,
|
In millions
|
|
2022
|
|
2021
|
|
2022
|
|
2021
|
|
|
|
|
|
|
|
|
|
Total cash at
beginning of period
|
|
$
807
|
|
$
673
|
|
$
1,041
|
|
$
1,593
|
|
|
|
|
|
|
|
|
|
Net cash provided by
(used in) operating activities from continuing
operations
|
|
231
|
|
(7)
|
|
316
|
|
(23)
|
Net cash used in
operating activities from discontinued operations
|
|
-
|
|
-
|
|
-
|
|
(1)
|
Net cash used in
investing activities
|
|
(64)
|
|
(46)
|
|
(129)
|
|
(369)
|
Net cash used in
financing activities
|
|
(357)
|
|
(112)
|
|
(609)
|
|
(691)
|
Effect of exchange rate
changes on cash
|
|
(9)
|
|
2
|
|
(11)
|
|
1
|
|
|
|
|
|
|
|
|
|
Total cash at end of
period
|
|
$
608
|
|
$
510
|
|
$
608
|
|
$
510
|
|
|
|
|
|
|
|
|
|
Free cash flow from
continuing operations(2):
|
|
|
|
|
|
|
|
|
Net cash provided by
(used in) operating activities from continuing
operations
|
|
$
231
|
|
$
(7)
|
|
$
316
|
|
$
(23)
|
Capital
expenditures
|
|
(69)
|
|
(76)
|
|
(138)
|
|
(174)
|
|
|
|
|
|
|
|
|
|
Free cash flow from
continuing operations
|
|
162
|
|
(83)
|
|
178
|
|
(197)
|
|
|
|
|
|
|
|
|
|
Supplemental cash
flow information:
|
|
|
|
|
|
|
|
|
Cash paid for
interest
|
|
$
(24)
|
|
$
(31)
|
|
$
(33)
|
|
$
(47)
|
Cash paid for income
taxes
|
|
(122)
|
|
(68)
|
|
(154)
|
|
(76)
|
Cash paid for
restructuring and integration
|
|
(13)
|
|
(8)
|
|
(26)
|
|
(17)
|
Cash paid for
pensions
|
|
(13)
|
|
(14)
|
|
(26)
|
|
(28)
|
Depreciation and
amortization
|
|
72
|
|
73
|
|
143
|
|
147
|
|
|
|
|
|
|
|
|
|
Change in primary
working capital:
|
|
|
|
|
|
|
|
|
Accounts and notes
receivable
|
|
$
(8)
|
|
$
(97)
|
|
$
(142)
|
|
$
(214)
|
Inventories
|
|
(52)
|
|
(176)
|
|
(239)
|
|
(332)
|
Accounts
payable
|
|
(129)
|
|
79
|
|
(9)
|
|
173
|
Total change in primary
working capital
|
|
$
(189)
|
|
$
(194)
|
|
$
(390)
|
|
$
(373)
|
|
|
|
|
|
|
|
|
|
See end of press
release for footnote explanations.
|
|
|
|
|
|
|
|
|
Footnotes
|
|
|
(1)
|
We use adjusted EBITDA
to measure the operating performance of our business and for
planning and evaluating the performance of our business
segments. 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) 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 adjusted EBITDA
and adjusted net income (loss). Additional information with
respect to our use of each of these financial measures
follows:
|
|
|
|
Adjusted EBITDA,
adjusted net income (loss) and adjusted diluted income (loss) per
share, as used herein, are not necessarily comparable to other
similarly titled measures of other companies.
|
|
|
|
Adjusted EBITDA is
computed by eliminating the following from net income (loss):
(a) net income attributable to noncontrolling interests, net of
tax; (b) interest; (c) income taxes; (d) depreciation and
amortization; (e) amortization of pension and postretirement
actuarial losses (gains); (f) restructuring, impairment and plant
closing costs (credits); and further adjusted for certain other
items set forth in the reconciliation of net income (loss) to
adjusted EBITDA in Table 4 above.
|
|
|
|
Adjusted net income
(loss) and adjusted diluted income (loss) per share are computed by
eliminating the after tax impact of the following items from net
income (loss): (a) net income attributable to noncontrolling
interest; (b) amortization of pension and postretirement actuarial
losses (gains); (c) restructuring, impairment and plant closing
costs (credits); and further adjusted for certain other items set
forth in the reconciliation of net income (loss) to adjusted net
income (loss) in Table 4 above. The income tax impacts, if
any, of each adjusting item represent a ratable allocation of the
total difference between the unadjusted tax expense and the total
adjusted tax expense, computed without consideration of any
adjusting items using a with and without approach.
|
|
|
|
We may disclose
forward-looking adjusted EBITDA because we cannot adequately
forecast certain items and events that may or may not impact us in
the near future, such as business acquisition and integration
expenses and purchase accounting inventory adjustments, certain
legal and other settlements and related expenses, gains on sale of
businesses/assets and certain tax only items, including tax law
changes not yet enacted. Each of such adjustment has not yet
occurred, is out of our control and/or cannot be reasonably
predicted. In our view, our forward-looking adjusted EBITDA
represents the forecast net income on our underlying business
operations but does not reflect any adjustments related to the
items noted above that may occur and can cause our adjusted EBITDA
to differ.
|
|
|
(2)
|
Management internally
uses free cash flow measure: (a) to evaluate our liquidity, (b)
evaluate strategic investments, (c) plan stock buyback and dividend
levels and (d) evaluate our ability to incur and service debt. Free
cash flow is defined as net cash provided by operating activities
less capital expenditures. Free cash flow is not a defined term
under U.S. GAAP, and it should not be inferred that the entire free
cash flow amount is available for discretionary
expenditures.
|
|
|
(3)
|
We believe adjusted
effective tax rate provides improved comparability between periods
through the exclusion of certain items that management believes are
not indicative of the businesses' operational profitability and
that may obscure underlying business results and trends. In our
view, effective tax rate is the performance measure calculated and
presented in accordance with U.S. GAAP that is most directly
comparable to adjusted effective tax rate. The reconciliation of
historical adjusted effective tax rate and effective tax rate is
set forth in Table 4 above. Please see the reconciliation of our
net income to adjusted net income in Table 4for details regarding
the tax impacts of our non-GAAP adjustments.
|
|
|
|
Our forward-looking
adjusted effective tax rate is calculated based on our forecast
effective tax rate, and the range of our forward-looking adjusted
effective tax rate equals the range of our forecast effective tax
rate. We disclose forward-looking adjusted effective tax rate
because we cannot adequately forecast certain items and events that
may or may not impact us in the near future, such as business
acquisition and integration expenses and purchase accounting
inventory adjustments, certain legal and other settlements and
related expenses, gains on sale of businesses/assets and certain
tax only items, including tax law changes not yet enacted. Each of
such adjustment has not yet occurred, is out of our control and/or
cannot be reasonably predicted. In our view, our forward-looking
adjusted effective tax rate represents the forecast effective tax
rate on our underlying business operations but does not reflect any
adjustments related to the items noted above that may occur and can
cause our effective tax rate to differ.
|
|
|
(4)
|
Net debt is a measure
we use to monitor how much debt we have after taking into account
our total cash. We use it as an indicator of our overall financial
position, and calculate it by taking our total debt, including the
current portion, and subtracting total cash.
|
About Huntsman:
Huntsman Corporation is a publicly traded global manufacturer
and marketer of differentiated and specialty chemicals with 2021
revenues of approximately $8
billion. Our chemical products number in the thousands and
are sold worldwide to manufacturers serving a broad and diverse
range of consumer and industrial end markets. We operate more
than 70 manufacturing, R&D and operations facilities in
approximately 30 countries and employ approximately 9,000
associates within our four distinct business divisions. For more
information about Huntsman, please visit the company's website
at www.huntsman.com.
Social Media:
Twitter: www.twitter.com/Huntsman_Corp
Facebook: www.facebook.com/huntsmancorp
LinkedIn: www.linkedin.com/company/huntsman
Forward-Looking
Statements:
This press release includes "forward-looking statements"
within the meaning of Section 27A of the Securities Act of 1933 and
Section 21E of the Securities Exchange Act of 1934. These
forward-looking statements include statements concerning our plans,
objectives, goals, strategies, future events, future revenue or
performance, capital expenditures, financing needs, plans or
intentions relating to acquisitions, divestitures or strategic
transactions, including the review of the Textile Effects Division,
business trends and any other information that is not historical
information. When used in this press release, the words
"estimates," "expects," "anticipates," "likely," "projects,"
"outlook," "plans," "intends," "believes," "forecasts," or future
or conditional verbs, such as "will," "should," "could" or "may,"
and variations of such words or similar expressions are intended to
identify forward-looking statements. These forward-looking
statements, including, without limitation, management's examination
of historical operating trends and data, are based upon our current
expectations and various assumptions and beliefs. In particular,
such forward-looking statements are subject to uncertainty and
changes in circumstances and involve risks and uncertainties that
may affect the Company's operations, markets, products, prices and
other factors as discussed in the Company's filings with the
Securities and Exchange Commission (the "SEC"). In addition, there
can be no assurance that the review of the Textile Effects Division
will result in one or more transactions or other strategic change
or outcome. Significant risks and uncertainties may relate to, but
are not limited to, increased energy costs in Europe, inflation and resulting monetary
tightening in the US, geopolitical instability, ongoing impact of
COVID-19 on our operations and financial results, volatile global
economic conditions, cyclical and volatile product markets,
disruptions in production at manufacturing facilities, timing of
proposed transactions, reorganization or restructuring of the
Company's operations, including any delay of, or other negative
developments affecting the ability to implement cost reductions and
manufacturing optimization improvements in the Company's businesses
and to realize anticipated cost savings, and other financial,
operational, economic, competitive, environmental, political,
legal, regulatory and technological factors. Any forward-looking
statement should be considered in light of the risks set forth
under the caption "Risk Factors" in our Annual Report on Form 10-K
for the year ended December 31, 2021,
which may be supplemented by other risks and uncertainties
disclosed in any subsequent reports filed or furnished by the
Company from time to time. All forward-looking statements apply
only as of the date made. Except as required by law, the Company
undertakes no obligation to update or revise forward-looking
statements to reflect events or circumstances that arise after the
date made or to reflect the occurrence of unanticipated
events.
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SOURCE Huntsman Corporation