Attached files
| file | filename |
|---|---|
| 8-K - 8-K - Huntsman CORP | a11-23544_18k.htm |
Exhibit 99.1
|
News Release |
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|
FOR IMMEDIATE RELEASE |
Investor Relations: |
Media: |
|
August 4, 2011 |
Kurt Ogden |
Gary Chapman |
|
The Woodlands, TX |
(801) 584-5959 |
(281) 719-4324 |
|
NYSE: HUN |
|
|
HUNTSMAN RELEASES SECOND QUARTER 2011 RESULTS
COMPARED TO THE PRIOR YEAR REVENUES IMPROVE 25% AND
ADJUSTED EBITDA IMPROVES 24% TO $318 MILLION
Second Quarter 2011 Highlights
· Revenues for the second quarter of 2011 were $2,934 million, an increase of 25% compared to $2,343 million for the same period in 2010 and an increase of 10% compared to $2,679 million for the first quarter of 2011.
· Adjusted EBITDA for the second quarter of 2011 was $318 million, an increase of 24% compared to $257 million for the same period in 2010 and an increase of 5% compared to $302 million for the first quarter of 2011.
· Adjusted net income for the second quarter of 2011 was $117 million or $0.48 per diluted share. This compares to adjusted net income of $75 million or $0.31 per diluted share for the same period in 2010 and adjusted net income of $114 million or $0.47 per diluted share for the first quarter of 2011.
· Net income attributable to Huntsman Corporation for the second quarter of 2011 was $114 million or $0.47 per diluted share. This compares to net income attributable to Huntsman Corporation of $114 million or $0.47 per diluted share for the same period in 2010 and net income attributable to Huntsman Corporation of $62 million or $0.26 per diluted share for the first quarter of 2011.
Summarized earnings are as follows:
|
|
|
Three months ended June 30, |
|
Three months ended |
|
Six months ended June 30, |
| |||||||||
|
In millions, except per share amounts |
|
2011 |
|
2010 |
|
March 31, 2011 |
|
2011 |
|
2010 |
| |||||
|
|
|
|
|
|
|
|
|
|
|
|
| |||||
|
Net income (loss) attributable to Huntsman Corporation |
|
$ |
114 |
|
$ |
114 |
|
$ |
62 |
|
$ |
176 |
|
$ |
(58 |
) |
|
Adjusted net income(1) |
|
$ |
117 |
|
$ |
75 |
|
$ |
114 |
|
$ |
231 |
|
$ |
59 |
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||
|
Diluted income (loss) per share |
|
$ |
0.47 |
|
$ |
0.47 |
|
$ |
0.26 |
|
$ |
0.72 |
|
$ |
(0.25 |
) |
|
Adjusted diluted income per share(1) |
|
$ |
0.48 |
|
$ |
0.31 |
|
$ |
0.47 |
|
$ |
0.95 |
|
$ |
0.25 |
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||
|
EBITDA(1) |
|
$ |
323 |
|
$ |
331 |
|
$ |
239 |
|
$ |
562 |
|
$ |
276 |
|
|
Adjusted EBITDA(1) |
|
$ |
318 |
|
$ |
257 |
|
$ |
302 |
|
$ |
620 |
|
$ |
380 |
|
See end of press release for footnote explanations
Recent Highlights
· Effective May 5, 2011, Mary C. Beckerle, Ph.D. was appointed as a new director to our Board of Directors and serves as a member of the Board’s Nominating and Corporate Governance Committee. Dr. Beckerle is an internationally recognized scientist.
· 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.
Peter R. Huntsman, our President and CEO, commented:
“Our second quarter 2011 revenues increased 25% compared to the prior year as a result of improvements in both pricing and demand. Despite inflation in raw material and other manufacturing costs our Adjusted EBITDA improved 24% compared to the prior year.”
He added, “Given the sluggish global economic recovery, I am very pleased with the improving results of this past quarter. When combined with our strong performance from the first quarter, the first half of the year was one of the strongest in our company’s history. With new growth projects and many of our products experiencing higher capacity utilization rates, we are optimistic about the second half of the year as underlying trends for our major businesses continue to improve.”
Huntsman Corporation
Operating Results
|
|
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Three months ended June 30, |
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Six months ended June 30, |
| ||||||||
|
In millions, except per share amounts |
|
2011 |
|
2010 |
|
2011 |
|
2010 |
| ||||
|
|
|
|
|
|
|
|
|
|
| ||||
|
Revenues |
|
$ |
2,934 |
|
$ |
2,343 |
|
$ |
5,613 |
|
$ |
4,437 |
|
|
Cost of goods sold |
|
2,433 |
|
1,958 |
|
4,652 |
|
3,771 |
| ||||
|
Gross profit |
|
501 |
|
385 |
|
961 |
|
666 |
| ||||
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Operating expenses |
|
272 |
|
241 |
|
563 |
|
497 |
| ||||
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Restructuring, impairment and plant closing costs |
|
9 |
|
17 |
|
16 |
|
20 |
| ||||
|
Operating income |
|
220 |
|
127 |
|
382 |
|
149 |
| ||||
|
Interest expense, net |
|
(65 |
) |
(43 |
) |
(124 |
) |
(104 |
) | ||||
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Equity in income of investment in unconsolidated affiliates |
|
2 |
|
16 |
|
4 |
|
17 |
| ||||
|
Loss on early extinguishment of debt |
|
— |
|
(7 |
) |
(3 |
) |
(162 |
) | ||||
|
Expenses associated with the terminated merger and related litigation |
|
— |
|
(1 |
) |
— |
|
(1 |
) | ||||
|
Other income |
|
1 |
|
1 |
|
1 |
|
1 |
| ||||
|
Income (loss) before income taxes |
|
158 |
|
93 |
|
260 |
|
(100 |
) | ||||
|
Income tax expense |
|
(34 |
) |
(39 |
) |
(56 |
) |
(5 |
) | ||||
|
Income (loss) from continuing operations |
|
124 |
|
54 |
|
204 |
|
(105 |
) | ||||
|
(Loss) income from discontinued operations, net of tax(2) |
|
(1 |
) |
62 |
|
(15 |
) |
49 |
| ||||
|
Extraordinary gain on the acquisition of a business, net of tax of nil |
|
1 |
|
— |
|
2 |
|
— |
| ||||
|
Net income (loss) |
|
124 |
|
116 |
|
191 |
|
(56 |
) | ||||
|
Net income attributable to noncontrolling interests, net of tax |
|
(10 |
) |
(2 |
) |
(15 |
) |
(2 |
) | ||||
|
Net income (loss) attributable to Huntsman Corporation |
|
$ |
114 |
|
$ |
114 |
|
$ |
176 |
|
$ |
(58 |
) |
|
|
|
|
|
|
|
|
|
|
| ||||
|
Net income (loss) attributable to Huntsman Corporation |
|
$ |
114 |
|
$ |
114 |
|
$ |
176 |
|
$ |
(58 |
) |
|
Interest expense, net |
|
65 |
|
43 |
|
124 |
|
104 |
| ||||
|
Income tax expense from continuing operations |
|
34 |
|
39 |
|
56 |
|
5 |
| ||||
|
Income tax (benefit) expense from discontinued operations(2) |
|
(1 |
) |
37 |
|
(8 |
) |
29 |
| ||||
|
Depreciation and amortization of continuing operations |
|
111 |
|
97 |
|
214 |
|
195 |
| ||||
|
Depreciation and amortization of discontinued operations(2) |
|
— |
|
1 |
|
— |
|
1 |
| ||||
|
EBITDA(1) |
|
$ |
323 |
|
$ |
331 |
|
$ |
562 |
|
$ |
276 |
|
|
|
|
|
|
|
|
|
|
|
| ||||
|
Adjusted EBITDA(1) |
|
$ |
318 |
|
$ |
257 |
|
$ |
620 |
|
$ |
380 |
|
|
|
|
|
|
|
|
|
|
|
| ||||
|
Basic income (loss) per share |
|
$ |
0.48 |
|
$ |
0.48 |
|
$ |
0.74 |
|
$ |
(0.25 |
) |
|
Diluted income (loss) per share |
|
$ |
0.47 |
|
$ |
0.47 |
|
$ |
0.72 |
|
$ |
(0.25 |
) |
|
Adjusted diluted income per share(1) |
|
$ |
0.48 |
|
$ |
0.31 |
|
$ |
0.95 |
|
$ |
0.25 |
|
|
|
|
|
|
|
|
|
|
|
| ||||
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Common share information: |
|
|
|
|
|
|
|
|
| ||||
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Basic shares outstanding |
|
239.4 |
|
236.4 |
|
238.5 |
|
235.6 |
| ||||
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Diluted shares |
|
243.7 |
|
240.8 |
|
243.2 |
|
235.6 |
| ||||
|
Diluted shares for adjusted diluted income per share |
|
243.7 |
|
240.8 |
|
243.2 |
|
240.8 |
| ||||
See end of press release for footnote explanations
Huntsman Corporation
Segment Results
|
|
|
Three months ended June 30, |
|
Percent |
|
Six months ended June 30, |
|
Percent |
| ||||||||
|
In millions |
|
2011 |
|
2010 |
|
Change |
|
2011 |
|
2010 |
|
Change |
| ||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||
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Segment Revenues: |
|
|
|
|
|
|
|
|
|
|
|
|
| ||||
|
Polyurethanes |
|
$ |
1,135 |
|
$ |
932 |
|
22 |
% |
$ |
2,182 |
|
$ |
1,699 |
|
28 |
% |
|
Performance Products |
|
896 |
|
669 |
|
34 |
% |
1,700 |
|
1,285 |
|
32 |
% | ||||
|
Advanced Materials |
|
360 |
|
320 |
|
13 |
% |
710 |
|
611 |
|
16 |
% | ||||
|
Textile Effects |
|
200 |
|
213 |
|
(6 |
)% |
390 |
|
408 |
|
(4 |
)% | ||||
|
Pigments |
|
424 |
|
287 |
|
48 |
% |
788 |
|
556 |
|
42 |
% | ||||
|
Eliminations and other |
|
(81 |
) |
(78 |
) |
4 |
% |
(157 |
) |
(122 |
) |
29 |
% | ||||
|
Total |
|
$ |
2,934 |
|
$ |
2,343 |
|
25 |
% |
$ |
5,613 |
|
$ |
4,437 |
|
27 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||
|
Segment EBITDA(1): |
|
|
|
|
|
|
|
|
|
|
|
|
| ||||
|
Polyurethanes |
|
$ |
142 |
|
$ |
69 |
|
106 |
% |
$ |
256 |
|
$ |
121 |
|
112 |
% |
|
Performance Products |
|
113 |
|
116 |
|
(3 |
)% |
228 |
|
176 |
|
30 |
% | ||||
|
Advanced Materials |
|
28 |
|
51 |
|
(45 |
)% |
67 |
|
84 |
|
(20 |
)% | ||||
|
Textile Effects |
|
(7 |
) |
(7 |
) |
— |
|
(18 |
) |
(7 |
) |
157 |
% | ||||
|
Pigments |
|
112 |
|
47 |
|
138 |
% |
196 |
|
75 |
|
161 |
% | ||||
|
Corporate, LIFO and other |
|
(63 |
) |
(45 |
) |
40 |
% |
(144 |
) |
(252 |
) |
(43 |
)% | ||||
|
Discontinued operations(2) |
|
(2 |
) |
100 |
|
NM |
|
(23 |
) |
79 |
|
NM |
| ||||
|
Total |
|
$ |
323 |
|
$ |
331 |
|
(2 |
)% |
$ |
562 |
|
$ |
276 |
|
104 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||
|
Segment Adjusted EBITDA(1): |
|
|
|
|
|
|
|
|
|
|
|
|
| ||||
|
Polyurethanes |
|
$ |
143 |
|
$ |
70 |
|
104 |
% |
$ |
257 |
|
$ |
122 |
|
111 |
% |
|
Performance Products |
|
102 |
|
116 |
|
(12 |
)% |
217 |
|
176 |
|
23 |
% | ||||
|
Advanced Materials |
|
31 |
|
51 |
|
(39 |
)% |
70 |
|
82 |
|
(15 |
)% | ||||
|
Textile Effects |
|
(7 |
) |
8 |
|
NM |
|
(13 |
) |
8 |
|
NM |
| ||||
|
Pigments |
|
115 |
|
49 |
|
135 |
% |
202 |
|
78 |
|
159 |
% | ||||
|
Corporate, LIFO and other |
|
(66 |
) |
(37 |
) |
78 |
% |
(113 |
) |
(86 |
) |
31 |
% | ||||
|
Total |
|
$ |
318 |
|
$ |
257 |
|
24 |
% |
$ |
620 |
|
$ |
380 |
|
63 |
% |
See end of press release for footnote explanations
NM—Not meaningful
|
|
|
Three months ended June 30, |
|
Six months ended June 30, |
| ||||||||||||
|
|
|
2011 vs. 2010 |
|
2011 vs. 2010 |
| ||||||||||||
|
|
|
Average Selling Price(a) |
|
|
|
|
|
Average Selling Price(a) |
|
|
|
|
| ||||
|
Period-Over-Period |
|
Local |
|
Foreign Currency |
|
Sales |
|
Sales |
|
Local |
|
Foreign Currency |
|
Sales |
|
Sales |
|
|
Increase (Decrease) |
|
Currency |
|
Translation Impact |
|
Mix(a) |
|
Volume(a) |
|
Currency |
|
Translation Impact |
|
Mix(a) |
|
Volume(a) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Polyurethanes |
|
20 |
% |
4 |
% |
— |
|
2 |
% |
18 |
% |
2 |
% |
(7 |
)% |
19 |
% |
|
Performance Products |
|
23 |
% |
4 |
% |
— |
|
6 |
% |
20 |
% |
2 |
% |
1 |
% |
9 |
% |
|
Advanced Materials |
|
8 |
% |
6 |
% |
2 |
% |
(4 |
)% |
8 |
% |
3 |
% |
4 |
% |
1 |
% |
|
Textile Effects |
|
— |
|
5 |
% |
— |
|
(11 |
)% |
2 |
% |
3 |
% |
— |
|
(9 |
)% |
|
Pigments |
|
35 |
% |
7 |
% |
— |
|
8 |
% |
30 |
% |
4 |
% |
— |
|
9 |
% |
|
Total Company |
|
19 |
% |
5 |
% |
(2 |
)% |
4 |
% |
15 |
% |
3 |
% |
(2 |
)% |
13 |
% |
(a) Excludes revenues and sales volumes from tolling and by-products
Three Months Ended June 30, 2011 Compared to Three Months Ended June 30, 2010
Revenues for the three months ended June 30, 2011 increased to $2,934 million from $2,343 million for the same period in 2010. For the three months ended June 30, 2011, Adjusted EBITDA was $318 million compared to $257 million for the same period in 2010.
Polyurethanes
The increase in revenues in our Polyurethanes division for the three months ended June 30, 2011 compared to the same period in 2010 was primarily due to higher average selling prices and higher sales volumes. Average MDI and PO/MTBE selling prices increased primarily in response to higher raw material costs and the strength of major European currencies against the U.S. dollar. MDI sales volumes increased primarily due to improved demand in the insulation and automotive sectors and stronger regional demand in the Americas and Asia. The increase in Adjusted EBITDA was primarily due to higher contribution margins and higher sales volumes.
Performance Products
The increase in revenues in our Performance Products division for the three months ended June 30, 2011 compared to the same period in 2010 was due to higher average selling prices and higher sales volumes. Average selling prices increased across almost all product groups primarily in response to higher raw material costs and the strength of major European currencies and the Australian dollar against the U.S. dollar. Sales volumes increased primarily due to the impact from the consolidation of our Sasol-Huntsman maleic anhydride joint venture during the second quarter 2011 and more production from our Arabian Amines Company joint venture which was starting up in the second quarter 2010. The decrease in Adjusted EBITDA was primarily due to a nonrecurring $15 million credit recorded in the second quarter of 2010 to appropriately reflect our investment in the Sasol-Huntsman maleic anhydride joint venture.
Advanced Materials
The increase in revenues in our Advanced Materials division for the three months ended June 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 an 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 higher manufacturing and selling, general and administrative costs.
Textile Effects
The decrease in revenues in our Textile Effects division for the three months ended June 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 and customer manufacturing constraints. Average selling prices increased primarily due to the strength of major European currencies against the U.S. dollar. 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 June 30, 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 global demand, particularly in the Asia Pacific and Africa, Latin America and Middle East regions. 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 decreased by $29 million to a loss of $66 million for the three months ended June 30, 2011 compared to a loss of $37 million for the same period in 2010. The decrease in Adjusted EBITDA was primarily the result of a $14 million increase in LIFO inventory valuation expense ($11 million of loss in 2011 compared to $3 million gain in 2010) and higher selling, general and administrative costs.
Income Taxes
During the three months ended June 30, 2011 we recorded income tax expense of $34 million compared to $39 million in the same period in 2010. Our adjusted effective income tax rate for the three months ended June 30, 2011 was approximately 20%. 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 June 30, 2011 we paid $30 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 June 30, 2011, we had $1,231 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 $395 million and the early redemption of $100 million of our senior subordinated notes with available cash in January, partially offset by cash generated from earnings.
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.
On July 25, 2011 we redeemed an additional $75 million of our senior subordinated notes with cash.
Total capital expenditures, net of reimbursements for the three months ended June 30, 2011 were $61 million compared to $7 million for the same period in 2010. We expect to spend approximately $350 million on capital expenditures, net of reimbursements, in 2011.
|
|
|
June 30, |
|
December 31, |
| ||
|
In millions |
|
2011 |
|
2010 |
| ||
|
|
|
|
|
|
| ||
|
Debt: |
|
|
|
|
| ||
|
Senior Credit Facilities |
|
$ |
1,692 |
|
$ |
1,688 |
|
|
Accounts Receivable Programs |
|
254 |
|
238 |
| ||
|
Senior Notes |
|
462 |
|
452 |
| ||
|
Subordinated Notes |
|
1,198 |
|
1,279 |
| ||
|
Variable interest entities |
|
313 |
|
200 |
| ||
|
Other Debt |
|
256 |
|
289 |
| ||
|
Total Debt - excluding affiliates |
|
4,175 |
|
4,146 |
| ||
|
|
|
|
|
|
| ||
|
Total Cash |
|
690 |
|
973 |
| ||
|
|
|
|
|
|
| ||
|
Net Debt- excluding affiliates |
|
$ |
3,485 |
|
$ |
3,173 |
|
Huntsman Corporation
Reconciliation of Adjustments
|
|
|
|
|
Net Income (Loss) |
|
Diluted Income (Loss) |
| ||||||||||||
|
|
|
EBITDA |
|
Attributable to Huntsman Corporation |
|
Per Share |
| ||||||||||||
|
|
|
Three months ended June 30, |
|
Three months ended June 30, |
|
Three months ended June 30, |
| ||||||||||||
|
In millions, except per share amounts |
|
2011 |
|
2010 |
|
2011 |
|
2010 |
|
2011 |
|
2010 |
| ||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
|
GAAP(1) |
|
$ |
323 |
|
$ |
331 |
|
$ |
114 |
|
$ |
114 |
|
$ |
0.47 |
|
$ |
0.47 |
|
|
Adjustments: |
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
|
Unallocated foreign currency (gain) loss |
|
(3 |
) |
— |
|
1 |
|
(4 |
) |
— |
|
(0.02 |
) | ||||||
|
Loss on early extinguishment of debt |
|
— |
|
7 |
|
— |
|
4 |
|
— |
|
0.02 |
| ||||||
|
Gain on consolidation of a variable interest entity |
|
(12 |
) |
— |
|
(10 |
) |
— |
|
(0.04 |
) |
— |
| ||||||
|
Other restructuring, impairment and plant closing costs |
|
9 |
|
17 |
|
8 |
|
17 |
|
0.03 |
|
0.07 |
| ||||||
|
Expenses associated with the terminated merger and related litigation |
|
— |
|
1 |
|
— |
|
1 |
|
— |
|
— |
| ||||||
|
Discount amortization on settlement financing associated with the terminated merger |
|
— |
|
— |
|
5 |
|
4 |
|
0.02 |
|
0.02 |
| ||||||
|
Acquisition related expenses |
|
3 |
|
1 |
|
2 |
|
1 |
|
0.01 |
|
— |
| ||||||
|
Gain on disposition of businesses/assets |
|
(3 |
) |
— |
|
(3 |
) |
— |
|
(0.01 |
) |
— |
| ||||||
|
Loss (income) from discontinued operations, net of tax(2) |
|
2 |
|
(100 |
) |
1 |
|
(62 |
) |
— |
|
(0.26 |
) | ||||||
|
Extraordinary gain on the acquisition of a business, net of tax |
|
(1 |
) |
— |
|
(1 |
) |
— |
|
— |
|
— |
| ||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
|
Adjusted(1) |
|
$ |
318 |
|
$ |
257 |
|
$ |
117 |
|
$ |
75 |
|
$ |
0.48 |
|
$ |
0.31 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
|
Discontinued operations |
|
$ |
(2 |
) |
$ |
100 |
|
$ |
(1 |
) |
$ |
62 |
|
$ |
— |
|
$ |
0.26 |
|
|
Gain on disposition of assets |
|
— |
|
(3 |
) |
— |
|
(4 |
) |
— |
|
(0.02 |
) | ||||||
|
Gain on insurance settlements, net of expenses |
|
— |
|
(103 |
) |
— |
|
(64 |
) |
— |
|
(0.27 |
) | ||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
|
Adjusted discontinued operations(1)(2) |
|
$ |
(2 |
) |
$ |
(6 |
) |
$ |
(1 |
) |
$ |
(6 |
) |
$ |
— |
|
$ |
(0.02 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
|
Total - adjusted continuing and discontinued operations |
|
$ |
316 |
|
$ |
251 |
|
$ |
116 |
|
$ |
69 |
|
$ |
0.48 |
|
$ |
0.29 |
|
|
|
|
Three months ended March 31, |
| |
|
In millions |
|
2011 |
| |
|
|
|
|
| |
|
Net income attributable to Huntsman Corporation |
|
62 |
| |
|
Interest expense, net |
|
59 |
| |
|
Income tax expense from continuing operations |
|
22 |
| |
|
Income tax benefit from discontinued operations(2) |
|
(7 |
) | |
|
Depreciation and amortization of continuing operations |
|
103 |
| |
|
EBITDA(1) |
|
$ |
239 |
|
|
|
|
|
|
Net Income (Loss) |
|
Diluted Income (Loss) |
| |||
|
|
|
EBITDA |
|
Attributable to Huntsman Corporation |
|
Per Share |
| |||
|
|
|
Three months ended March 31, |
|
Three months ended March 31, |
|
Three months ended March 31, |
| |||
|
In millions, except per share amounts |
|
2011 |
|
2011 |
|
2011 |
| |||
|
|
|
|
|
|
|
|
| |||
|
GAAP(1) |
|
$ |
239 |
|
$ |
62 |
|
$ |
0.26 |
|
|
Adjustments: |
|
|
|
|
|
|
| |||
|
Unallocated foreign currency (gain) loss |
|
(2 |
) |
4 |
|
0.02 |
| |||
|
Legal and contract settlements |
|
34 |
|
21 |
|
0.09 |
| |||
|
Loss on early extinguishment of debt |
|
3 |
|
2 |
|
0.01 |
| |||
|
Other restructuring, impairment and plant closing costs |
|
7 |
|
7 |
|
0.03 |
| |||
|
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) |
|
21 |
|
14 |
|
0.06 |
| |||
|
Extraordinary gain on the acquisition of a business, net of tax(3) |
|
(1 |
) |
(1 |
) |
— |
| |||
|
|
|
|
|
|
|
|
| |||
|
Adjusted(1) |
|
$ |
302 |
|
$ |
114 |
|
$ |
0.47 |
|
|
|
|
|
|
|
|
|
| |||
|
Discontinued operations |
|
$ |
(21 |
) |
$ |
(14 |
) |
$ |
(0.06 |
) |
|
Restructuring, impairment and plant closing credits |
|
1 |
|
1 |
|
— |
| |||
|
Non-recurring costs and expenses |
|
18 |
|
11 |
|
0.05 |
| |||
|
|
|
|
|
|
|
|
| |||
|
Adjusted discontinued operations(1)(2) |
|
$ |
(2 |
) |
$ |
(2 |
) |
$ |
(0.01 |
) |
|
|
|
|
|
|
|
|
| |||
|
Total - adjusted continuing and discontinued operations |
|
$ |
300 |
|
$ |
112 |
|
$ |
0.46 |
|
|
|
|
|
|
|
|
Net Income (Loss) |
|
Diluted Income (Loss) |
| ||||||||||
|
|
|
EBITDA |
|
Attributable To Huntsman Corporation |
|
Per Share |
| ||||||||||||
|
|
|
Six months ended June 30, |
|
Six months ended June 30, |
|
Six months ended June 30, |
| ||||||||||||
|
In millions, except per share amounts |
|
2011 |
|
2010 |
|
2011 |
|
2010 |
|
2011 |
|
2010 |
| ||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
|
GAAP(1) |
|
$ |
562 |
|
$ |
276 |
|
$ |
176 |
|
$ |
(58 |
) |
$ |
0.72 |
|
$ |
(0.25 |
) |
|
Adjustments: |
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
|
Unallocated foreign currency (gain) loss |
|
(5 |
) |
(1 |
) |
5 |
|
(10 |
) |
0.02 |
|
(0.04 |
) | ||||||
|
Legal and contract settlements |
|
34 |
|
— |
|
21 |
|
— |
|
0.09 |
|
— |
| ||||||
|
Loss on early extinguishment of debt |
|
3 |
|
162 |
|
2 |
|
147 |
|
0.01 |
|
0.61 |
| ||||||
|
Gain on consolidation of a variable interest entity |
|
(12 |
) |
— |
|
(10 |
) |
— |
|
(0.04 |
) |
— |
| ||||||
|
Other restructuring, impairment and plant closing costs |
|
16 |
|
20 |
|
15 |
|
19 |
|
0.06 |
|
0.08 |
| ||||||
|
Expenses associated with the terminated merger and related litigation |
|
— |
|
1 |
|
— |
|
1 |
|
— |
|
— |
| ||||||
|
Discount amortization on settlement financing associated with the terminated merger |
|
— |
|
— |
|
9 |
|
8 |
|
0.04 |
|
0.03 |
| ||||||
|
Acquisition related expenses |
|
4 |
|
1 |
|
3 |
|
1 |
|
0.01 |
|
— |
| ||||||
|
Gain on disposition of businesses/assets |
|
(3 |
) |
— |
|
(3 |
) |
— |
|
(0.01 |
) |
— |
| ||||||
|
Loss (income) from discontinued operations, net of tax(2) |
|
23 |
|
(79 |
) |
15 |
|
(49 |
) |
0.06 |
|
(0.20 |
) | ||||||
|
Extraordinary gain on the acquisition of a business, net of tax |
|
(2 |
) |
— |
|
(2 |
) |
— |
|
(0.01 |
) |
— |
| ||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
|
Adjusted(1) |
|
$ |
620 |
|
$ |
380 |
|
$ |
231 |
|
$ |
59 |
|
$ |
0.95 |
|
$ |
0.25 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
|
Discontinued operations |
|
$ |
(23 |
) |
$ |
79 |
|
$ |
(15 |
) |
$ |
49 |
|
$ |
(0.06 |
) |
$ |
0.20 |
|
|
Restructuring, impairment and plant closing costs |
|
1 |
|
5 |
|
1 |
|
3 |
|
— |
|
0.01 |
| ||||||
|
Loss on disposition of assets |
|
— |
|
5 |
|
— |
|
1 |
|
— |
|
— |
| ||||||
|
Non-recurring costs and expenses |
|
18 |
|
— |
|
11 |
|
— |
|
0.05 |
|
— |
| ||||||
|
Gain on insurance settlements, net of expenses |
|
— |
|
(110 |
) |
— |
|
(68 |
) |
— |
|
(0.28 |
) | ||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
|
Adjusted discontinued operations(1)(2) |
|
$ |
(4 |
) |
$ |
(21 |
) |
$ |
(3 |
) |
$ |
(15 |
) |
$ |
(0.01 |
) |
$ |
(0.06 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
|
Total - adjusted continuing and discontinued operations |
|
$ |
616 |
|
$ |
359 |
|
$ |
228 |
|
$ |
44 |
|
$ |
0.94 |
|
$ |
0.18 |
|
See end of press release for footnote explanations
Conference Call Information
We will hold a conference call to discuss our second quarter 2011 financial results on Thursday, August 4, 2011 at 9:00 a.m. ET.
|
Call-in number for U.S. participants: |
(888) 713 - 4211 |
|
Call-in number for international participants: |
(617) 213 - 4864 |
|
Participant access code: |
82984558 |
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=P3Q6CNCPF
The conference call will be available via webcast and can be accessed from the investor relations portion of the company’s website at http://www.huntsman.com.
The conference call will be available for replay beginning August 4, 2011 and ending August 11, 2011.
|
Call-in numbers for the replay: | |
|
Within the U.S.: |
(888) 286 - 8010 |
|
International: |
(617) 801 - 6888 |
|
Access code for replay: |
80806708 |
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; 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 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; gain on insurance settlements, net of expenses; (gain) loss on disposition of business/assets; and non-recurring (gains) costs and expenses. The following table provides a reconciliation of Adjusted EBITDA from discontinued operations to income (loss) from discontinued operations:
|
|
|
Three months ended June 30, |
|
Six months ended June 30, |
| ||||||||
|
In millions |
|
2011 |
|
2010 |
|
2011 |
|
2010 |
| ||||
|
|
|
|
|
|
|
|
|
|
| ||||
|
(Loss) income from discontinued operations, net of tax |
|
$ |
(1 |
) |
$ |
62 |
|
$ |
(15 |
) |
$ |
49 |
|
|
Income tax (benefit) expense |
|
(1 |
) |
37 |
|
(8 |
) |
29 |
| ||||
|
Depreciation and amortization |
|
— |
|
1 |
|
— |
|
1 |
| ||||
|
EBITDA from discontinued operations |
|
(2 |
) |
100 |
|
(23 |
) |
79 |
| ||||
|
Restructuring, impairment and plant closing costs |
|
— |
|
— |
|
1 |
|
5 |
| ||||
|
(Gain) loss on disposition of assets |
|
— |
|
(3 |
) |
— |
|
5 |
| ||||
|
Non-recurring costs and expenses |
|
— |
|
— |
|
18 |
|
— |
| ||||
|
Gain on insurance settlements, net of expenses |
|
— |
|
(103 |
) |
— |
|
(110 |
) | ||||
|
Adjusted EBITDA from discontinued operations |
|
$ |
(2 |
) |
$ |
(6 |
) |
$ |
(4 |
) |
$ |
(21 |
) |
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 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 expenses; (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 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.