Exhibit 99.1
|
News
Release
|
|
|
|
FOR
IMMEDIATE RELEASE
|
Investor
Relations:
|
Media:
|
|
November 4,
2010
|
Kurt
Ogden
|
Gary
Chapman
|
|
The
Woodlands, TX
|
(801)
584-5959
|
(281)
719-4324
|
|
NYSE:
HUN
|
|
|
HUNTSMAN RELEASES THIRD QUARTER 2010 RESULTS
STRONG THIRD QUARTER ADJUSTED EBITDA
RESULTS OF $273 MILLION AND ADJUSTED EPS OF $0.34; IMPROVED GLOBAL DEMAND
AND HIGHER AVERAGE SELLING PRICES
Third Quarter 2010 Highlights
· Revenues for
the third quarter of 2010 were $2,401 million, an increase of 16% compared to
$2,075 million for the same period in 2009 and an increase of 2% compared to
$2,343 million for the second quarter of 2010.
· Adjusted EBITDA
for the third quarter of 2010 was $273 million compared to $205 million for the
same period in 2009 and $257 million for the second quarter of 2010.
· Adjusted net
income for the third quarter of 2010 was $83 million or $0.34 per diluted
share. This compares to adjusted net
loss of $48 million or $0.21 loss per diluted share for the same period in 2009
and adjusted net income of $75 million or $0.31 per diluted share for the
second quarter of 2010.
· Net income
attributable to Huntsman Corporation for the third quarter of 2010 was $55
million or $0.23 per diluted share. This
compares to net loss attributable to Huntsman Corporation of $68 million or
$0.29 loss per diluted share for the same period in 2009 and $114 million of
income or $0.47 per diluted share for the second quarter of 2010.
Summarized
earnings are as follows:
|
|
|
Three months ended September 30,
|
|
Three months ended
|
|
Nine months ended September 30,
|
|
|
In millions, except per share amounts
|
|
2010
|
|
2009
|
|
June 30, 2010
|
|
2010
|
|
2009
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss) attributable to Huntsman
Corporation
|
|
$
|
55
|
|
$
|
(68
|
)
|
$
|
114
|
|
$
|
(3
|
)
|
$
|
48
|
|
|
Adjusted net income (loss)(1)
|
|
$
|
83
|
|
$
|
(48
|
)
|
$
|
75
|
|
$
|
142
|
|
$
|
(381
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted income (loss) per share
|
|
$
|
0.23
|
|
$
|
(0.29
|
)
|
$
|
0.47
|
|
$
|
(0.01
|
)
|
$
|
0.20
|
|
|
Adjusted diluted income (loss) per share(1)
|
|
$
|
0.34
|
|
$
|
(0.21
|
)
|
$
|
0.31
|
|
$
|
0.59
|
|
$
|
(1.63
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EBITDA(1)
|
|
$
|
257
|
|
$
|
107
|
|
$
|
331
|
|
$
|
533
|
|
$
|
1,011
|
|
|
Adjusted EBITDA(1)
|
|
$
|
273
|
|
$
|
205
|
|
$
|
257
|
|
$
|
653
|
|
$
|
355
|
|
See end of press release for footnote explanations
Recent
Highlights
· Effective August 4, 2010, Sir Robert
Margetts was appointed as a new director to our Board of Directors. Sir Robert currently serves as Chairman of
Ensus Limited, the Energy Technologies Institute, and Ordnance Survey, and
serves as Non-Executive Director of Wellstream Holdings PLC and Falck
Renewables PLC. He was previously
Chairman of Legal & General Group PLC and BOC Group PLC. Sir Robert
worked for ICI PLC in various levels of increasing responsibility since 1969,
where he ultimately served as the Vice Chairman of its Main Board until 2000.
· On September 24, 2010, we completed our
$350 million offering of senior subordinated notes due 2021 which carry an
interest rate of 8 5/8%. We used the net
proceeds of the offering to purchase euro 132 million (approximately $177
million equivalent) of our 6 7/8% senior subordinated notes due 2013 and $159
million of our 7 7/8% senior subordinated notes due 2014.
· On October 28, 2010, we priced an
issuance of an additional $180 million senior subordinated notes due 2021 at an
effective yield of approximately 7 1/4%.
The closing is expected to occur on November 12, 2010. We expect to use the net proceeds from the
offering to redeem all $188 million of our outstanding 7 7/8% senior
subordinated notes due 2014. In
connection with the redemption, we expect to record charges of approximately $7
million in the fourth quarter related to the early extinguishment of this debt.
Peter
R. Huntsman, our President and CEO, commented:
“I am very pleased with our
earnings in the third quarter, 2010. We
have seen a continuous recovery in global demand for all of our products and
margins are increasing in most product lines.
We have previously used 2007 as a benchmark for a normalized demand
environment. In the third quarter our
total company sales volumes exceeded the same period volume in 2007, however,
with a very different product and geographic profile. As our global focus is on the further
development of our specialty products, we continue to see many opportunities
for growth.”
Huntsman
Corporation
Operating
Results
|
|
|
Three months ended September 30,
|
|
Nine months ended September 30,
|
|
|
In millions, except per share amounts
|
|
2010
|
|
2009
|
|
2010
|
|
2009
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues
|
|
$
|
2,401
|
|
$
|
2,075
|
|
$
|
6,838
|
|
$
|
5,601
|
|
|
Cost of goods sold
|
|
1,986
|
|
1,733
|
|
5,757
|
|
4,877
|
|
|
Gross profit
|
|
415
|
|
342
|
|
1,081
|
|
724
|
|
|
Operating expenses
|
|
244
|
|
250
|
|
741
|
|
705
|
|
|
Restructuring, impairment and plant closing costs
|
|
4
|
|
7
|
|
24
|
|
83
|
|
|
Operating income (loss)
|
|
167
|
|
85
|
|
316
|
|
(64
|
)
|
|
Interest expense, net
|
|
(64
|
)
|
(65
|
)
|
(168
|
)
|
(178
|
)
|
|
Loss on accounts receivable securitization
programs
|
|
—
|
|
(3
|
)
|
—
|
|
(13
|
)
|
|
Equity in income (loss) of investment in
unconsolidated affiliates
|
|
3
|
|
(1
|
)
|
20
|
|
1
|
|
|
Loss on early extinguishment of debt
|
|
(7
|
)
|
(21
|
)
|
(169
|
)
|
(21
|
)
|
|
(Expenses) income associated with the terminated
merger and related litigation
|
|
(3
|
)
|
(2
|
)
|
(4
|
)
|
835
|
|
|
Other income
|
|
2
|
|
1
|
|
3
|
|
1
|
|
|
Income (loss) before income taxes
|
|
98
|
|
(6
|
)
|
(2
|
)
|
561
|
|
|
Income tax expense
|
|
(41
|
)
|
(68
|
)
|
(46
|
)
|
(517
|
)
|
|
Income (loss) from continuing
operations
|
|
57
|
|
(74
|
)
|
(48
|
)
|
44
|
|
|
(Loss) income from discontinued operations, net of
tax(2)
|
|
(1
|
)
|
6
|
|
48
|
|
—
|
|
|
Net income (loss)
|
|
56
|
|
(68
|
)
|
—
|
|
44
|
|
|
Less net (income) loss attributable to
noncontrolling interests
|
|
(1
|
)
|
—
|
|
(3
|
)
|
4
|
|
|
Net income (loss) attributable to
Huntsman Corporation
|
|
$
|
55
|
|
$
|
(68
|
)
|
$
|
(3
|
)
|
$
|
48
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss) attributable to
Huntsman Corporation
|
|
$
|
55
|
|
$
|
(68
|
)
|
$
|
(3
|
)
|
$
|
48
|
|
|
Interest expense, net
|
|
64
|
|
65
|
|
168
|
|
178
|
|
|
Income tax expense from continuing operations
|
|
41
|
|
68
|
|
46
|
|
517
|
|
|
Income tax (benefit) expense from discontinued operations(1)(2)
|
|
(2
|
)
|
(70
|
)
|
27
|
|
(70
|
)
|
|
Depreciation and amortization of continuing
operations
|
|
99
|
|
112
|
|
294
|
|
337
|
|
|
Depreciation and amortization of discontinued
operations
|
|
—
|
|
—
|
|
1
|
|
1
|
|
|
EBITDA(1)
|
|
$
|
257
|
|
$
|
107
|
|
$
|
533
|
|
$
|
1,011
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA(1)
|
|
$
|
273
|
|
$
|
205
|
|
$
|
653
|
|
$
|
355
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic income (loss) per share
|
|
$
|
0.23
|
|
$
|
(0.29
|
)
|
$
|
(0.01
|
)
|
$
|
0.21
|
|
|
Diluted income (loss) per share
|
|
$
|
0.23
|
|
$
|
(0.29
|
)
|
$
|
(0.01
|
)
|
$
|
0.20
|
|
|
Adjusted diluted income (loss)
per share(1)
|
|
$
|
0.34
|
|
$
|
(0.21
|
)
|
$
|
0.59
|
|
$
|
(1.63
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
Common share information:
|
|
|
|
|
|
|
|
|
|
|
Basic shares outstanding
|
|
236.4
|
|
234.0
|
|
235.9
|
|
233.9
|
|
|
Diluted shares
|
|
241.0
|
|
234.0
|
|
235.9
|
|
238.1
|
|
|
Diluted shares for adjusted diluted income (loss)
per share
|
|
241.0
|
|
234.0
|
|
240.7
|
|
233.9
|
|
See end of press release for footnote explanations
Huntsman Corporation
Segment Results
|
|
|
Three months ended September 30,
|
|
Nine months ended September 30,
|
|
|
In millions
|
|
2010
|
|
2009
|
|
2010
|
|
2009
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Segment Revenues:
|
|
|
|
|
|
|
|
|
|
|
Polyurethanes
|
|
$
|
960
|
|
$
|
869
|
|
$
|
2,659
|
|
$
|
2,164
|
|
|
Performance Products
|
|
678
|
|
540
|
|
1,963
|
|
1,522
|
|
|
Advanced Materials
|
|
318
|
|
273
|
|
929
|
|
785
|
|
|
Textile Effects
|
|
190
|
|
173
|
|
598
|
|
504
|
|
|
Pigments
|
|
327
|
|
262
|
|
883
|
|
712
|
|
|
Eliminations and other
|
|
(72
|
)
|
(42
|
)
|
(194
|
)
|
(86
|
)
|
|
Total
|
|
$
|
2,401
|
|
$
|
2,075
|
|
$
|
6,838
|
|
$
|
5,601
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Segment EBITDA(1):
|
|
|
|
|
|
|
|
|
|
|
Polyurethanes
|
|
$
|
102
|
|
$
|
137
|
|
$
|
224
|
|
$
|
249
|
|
|
Performance Products
|
|
99
|
|
84
|
|
275
|
|
178
|
|
|
Advanced Materials
|
|
42
|
|
29
|
|
127
|
|
38
|
|
|
Textile Effects
|
|
7
|
|
(25
|
)
|
—
|
|
(56
|
)
|
|
Pigments
|
|
64
|
|
4
|
|
139
|
|
(51
|
)
|
|
Corporate, LIFO and other
|
|
(54
|
)
|
(58
|
)
|
(308
|
)
|
722
|
|
|
Discontinued operations(2)
|
|
(3
|
)
|
(64
|
)
|
76
|
|
(69
|
)
|
|
Total
|
|
$
|
257
|
|
$
|
107
|
|
$
|
533
|
|
$
|
1,011
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Segment Adjusted EBITDA(1):
|
|
|
|
|
|
|
|
|
|
|
Polyurethanes
|
|
$
|
102
|
|
$
|
137
|
|
$
|
225
|
|
$
|
251
|
|
|
Performance Products
|
|
100
|
|
84
|
|
276
|
|
178
|
|
|
Advanced Materials
|
|
42
|
|
26
|
|
125
|
|
50
|
|
|
Textile Effects
|
|
8
|
|
(22
|
)
|
16
|
|
(43
|
)
|
|
Pigments
|
|
66
|
|
16
|
|
144
|
|
4
|
|
|
Corporate, LIFO and other
|
|
(45
|
)
|
(36
|
)
|
(133
|
)
|
(85
|
)
|
|
Total
|
|
$
|
273
|
|
$
|
205
|
|
$
|
653
|
|
$
|
355
|
|
See end of press release for footnote explanations
|
|
|
Three months ended September 30,
|
|
Nine months ended September 30,
|
|
|
|
|
2010 vs. 2009
|
|
2010 vs. 2009
|
|
|
|
|
Average Selling Price(a)
|
|
|
|
Average Selling Price(a)
|
|
|
|
|
|
|
Local
|
|
Foreign Currency
|
|
Sales
|
|
Local
|
|
Foreign Currency
|
|
Sales
|
|
|
Period-Over-Period Increase (Decrease)
|
|
Currency
|
|
Translation Impact
|
|
Volume(a)
|
|
Currency
|
|
Translation Impact
|
|
Volume(a)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Polyurethanes
|
|
7
|
%
|
(3
|
)%
|
5
|
%
|
16
|
%
|
(1
|
)%
|
3
|
%
|
|
Performance Products
|
|
12
|
%
|
(3
|
)%
|
19
|
%
|
8
|
%
|
0
|
%
|
22
|
%
|
|
Advanced Materials(b)
|
|
13
|
%
|
(3
|
)%
|
7
|
%
|
3
|
%
|
0
|
%
|
19
|
%
|
|
Textile Effects
|
|
8
|
%
|
(1
|
)%
|
3
|
%
|
6
|
%
|
2
|
%
|
10
|
%
|
|
Pigments
|
|
16
|
%
|
(5
|
)%
|
14
|
%
|
8
|
%
|
(1
|
)%
|
16
|
%
|
|
Total Company(b)
|
|
8
|
%
|
(3
|
)%
|
11
|
%
|
9
|
%
|
0
|
%
|
12
|
%
|
(a) Excludes revenues and sales volumes from tolling and
by-products
(b) Excludes APAO business sold July 31, 2009
Three
Months Ended September 30, 2010 Compared to Three Months Ended September 30,
2009
Revenues
for the three months ended September 30, 2010 increased to $2,401 million
from $2,075 million for the same period in 2009. For the three months ended September 30,
2010, Adjusted EBITDA was $273 million compared to $205 million for the
same period in 2009.
Polyurethanes
The
increase in revenues in our Polyurethanes division for the three months ended September 30,
2010 compared to the same period in 2009 was primarily due to higher sales
prices and higher sales volumes. Average
selling prices for MDI increased in response to higher raw material costs while
average selling prices for MTBE decreased as a result of increased industry
supply. MDI sales volumes increased as a
result of improved demand in all regions and across all major sectors with the
exception of appliances, while PO/MTBE sales volumes increased generally due to
improved demand. The decrease in Adjusted
EBITDA was primarily due to lower contribution margins from higher raw material
costs and higher manufacturing costs.
Performance
Products
The
increase in revenues in our Performance Products division for the three months
ended September 30, 2010 compared to the same period in 2009 was due to
higher average selling prices and higher sales volumes. Average selling prices increased across all
product groups primarily in response to higher raw materials costs and strong
market conditions, partially offset by the strength of the U.S. dollar against
major European currencies. Sales volumes
increased primarily due to higher demand across almost all product groups and
additional sales of certain products previously produced under tolling
arrangements. The increase in Adjusted
EBITDA was primarily due to higher contribution margins and higher sales
volumes partially offset by higher manufacturing and selling, general and
administrative costs.
Advanced
Materials
The
increase in revenues in our Advanced Materials division for the three months
ended September 30, 2010 compared to the same period in 2009 was due to
higher sales volumes and higher average selling prices. Sales volumes increased in the Americas and
Asia-Pacific regions while volumes decreased in Europe primarily in our base
resin business as a result of less material available. Average selling prices increased in our
specialty components and base resins business primarily in response to higher
raw material costs and reduced product availability in the epoxy resin
business, partially offset by lower average selling prices in our formulations
business primarily as a result of changes in our product mix and competitive
market pressure. The increase in Adjusted EBITDA was primarily due to higher
sales volumes and higher contribution margins.
Textile
Effects
The
increase in revenues in our Textile Effects division for the three months ended
September 30, 2010 compared to the same period in 2009 was due to higher
average selling prices and higher sales volumes. Average selling prices increased primarily
due to favorable changes in product mix partially offset by the strength of the
U.S. dollar against major European currencies.
Sales volumes increased across all regions and within apparel and home
textiles as well as specialty textiles.
The increase in Adjusted EBITDA was primarily due to lower manufacturing and selling,
general and administrative costs,
higher contribution margins and higher volumes.
5
Pigments
The
increase in revenues in our Pigments division for the three months ended September 30,
2010 compared to the same period in 2009 was due to higher average selling
prices and higher sales volumes. Average
selling prices increased primarily as a result of price increase initiatives in
all regions of the world partially offset by the strength of the U.S. dollar
against major European currencies. Sales
volumes increased primarily due to recovery in global demand most notably in
Europe and Asia Pacific. The increase in
Adjusted EBITDA in our Pigments division was primarily due to higher
contribution margins and higher sales volumes.
Corporate,
LIFO and Other
Corporate,
LIFO and other includes unallocated foreign exchange gains and losses,
unallocated corporate overhead, loss on our accounts receivable securitization
program, income (expenses) associated with the terminated merger with Hexion
and related litigation, loss on early extinguishment of debt, income (loss)
attributable to non-controlling interests, unallocated restructuring costs,
LIFO inventory valuation reserve adjustments and non-operating income and
expense. Adjusted EBITDA from Corporate,
LIFO and Other decreased by $9 million to a loss of $45 million for the three
months ended September 30, 2010 compared to a loss of $36 million for the
same period in 2009. The change resulted
primarily from increased legal and other general expenses.
Income
Taxes
During the three months
ended September 30, 2010, we recorded income tax expense of $41 million
compared to $68 million of income tax expense in the same period of 2009. Our adjusted effective tax rate for the third
quarter of 2010 was approximately 28%.
We have tax valuation allowances in countries such as Switzerland and
the United Kingdom where our Textile Effects and Pigments businesses have
meaningful operations. As these
businesses return to greater levels of profitability we expect these tax
valuation allowances to eventually be removed.
In the meantime, we expect our income tax rate to be fairly volatile. We expect our long term effective income tax
rate to be approximately 35%. Unusual
income tax rates caused by valuation allowances have no impact on our cash
taxes. During the third quarter of 2010
we paid $9 million in cash for income taxes.
We expect our cash tax rate to continue to be less than our effective
income tax rate.
Liquidity,
Capital Resources and Outstanding Debt
As
of September 30, 2010, we had $1,471 million of combined cash and unused
borrowing capacity compared to $2,510 million at December 31, 2009. The decrease from year end was primarily
attributable to an increase in primary working capital of $441 million, the net
reduction in unused bank credit facilities of $385 million, the repurchase of
convertible notes of $382 million and the repayment of $295 million of bank
term debt (including $110 million of repayments funded by insurance proceeds
received). On September 30, 2010 we
increased the amount of revolving commitments available under our revolving
credit facility from $225 million to $290 million. There are no outstanding borrowings under
this revolving credit facility.
Beginning
January 1, 2010, as a result of changes in accounting guidelines
outstanding borrowings related to the sales of accounts receivable under our
accounts receivable programs are accounted for as secured borrowings. Excluding the impact of this change, our
primary working capital (accounts receivable, inventory and accounts payable)
increased $441 million primarily due
6
to
increased sales volumes and higher prices partially offset by the strength of
the U.S. dollar against major European currencies. Total capital expenditures, net of
reimbursements from insurance settlements, other settlement and contributions
from noncontrolling shareholders in consolidated subsidiaries of nil were $54
million during the third quarter of 2010 compared to $40 million for the same
period in 2009. We expect to spend between $200 and $225 million on capital expenditures
in 2010 net of reimbursements.
Beginning
July 1, 2010 we began consolidating our ethyleneamines manufacturing 50%
joint venture located in Jubail, Saudi Arabia.
Previously it was accounted for under the equity method during its
developmental stage. Trial production
began in the second quarter of 2010 and from July 2010, generated
meaningful revenue from the sale of production.
The facility has the capacity to produce approximately 60 million pounds
of product annually. As a result of the
consolidation, $199 million of total debt has been recognized on the balance
sheet which is nonrecourse to Huntsman Corporation.
On
September 24, 2010, we completed our $350 million offering of senior
subordinated notes due 2021 which carry an interest rate of 8 5/8%. We used the net proceeds of the offering to
purchase approximately euro 132 million (approximately $177 million equivalent)
of our 6 7/8% senior subordinated notes due 2013 and $159 million of our 7 7/8%
senior subordinated notes due 2014. In November 2010,
we expect to redeem the remaining $188 million of our outstanding 7 7/8% senior
subordinated notes due 2014 with proceeds from the issuance of additional
notes. In the fourth quarter we expect
to record approximately $13 million in total charges related to early
extinguishment of debt.
7
Below
is our outstanding debt:
|
In millions
|
|
September 30,
2010
|
|
December 31,
2009
|
|
|
|
|
|
|
|
|
|
Debt:
|
|
|
|
|
|
|
Senior Credit Facilities
|
|
$
|
1,686
|
|
$
|
1,968
|
|
|
Accounts Receivable Programs(a)
|
|
243
|
|
254
|
|
|
Senior Notes
|
|
447
|
|
434
|
|
|
Subordinated Notes(b)
|
|
1,442
|
|
1,294
|
|
|
Variable interest entities - Arabian Amines
Company(c)
|
|
199
|
|
—
|
|
|
Other Debt
|
|
320
|
|
280
|
|
|
Convertible Notes
|
|
—
|
|
236
|
|
|
Total Debt - excluding affiliates
|
|
4,337
|
|
4,466
|
|
|
|
|
|
|
|
|
|
Total Cash(b)
|
|
1,011
|
|
1,750
|
|
|
|
|
|
|
|
|
|
Net Debt- excluding affiliates
|
|
$
|
3,326
|
|
$
|
2,716
|
|
(a) Effective January 1, 2010, as a result of
changes in accounting guidelines, our off-balance sheet accounts receivable
securitization programs are now reported on balance sheet as secured debt. December 31, 2009 figures are presented
on a pro-forma basis to reflect this change.
(b) We used cash to redeem $159 million of senior
subordinated notes due 2014 on October 10, 2010
(c) Beginning July 1, 2010, we began consolidating
our Saudi Arabian ethyleneamines manufacturing joint venture, the financing of
which is nonrecourse to Huntsman.
8
Huntsman Corporation
Reconciliation of Adjustments
|
|
|
EBITDA
Three months ended September 30,
|
|
Net
Income (Loss)
Attributable to Huntsman Corporation
Three months ended September 30,
|
|
Diluted
Income (Loss)
Per Share
Three months ended September 30,
|
|
|
In millions, except per share amounts
|
|
2010
|
|
2009
|
|
2010
|
|
2009
|
|
2010
|
|
2009
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP
|
|
$
|
257
|
|
$
|
107
|
|
$
|
55
|
|
$
|
(68
|
)
|
$
|
0.23
|
|
$
|
(0.29
|
)
|
|
Adjustments:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loss
on accounts receivable securitization programs
|
|
—
|
|
3
|
|
—
|
|
—
|
|
—
|
|
—
|
|
|
Unallocated
foreign currency (gain) loss
|
|
(2
|
)
|
(6
|
)
|
12
|
|
(5
|
)
|
0.05
|
|
(0.02
|
)
|
|
Loss
on early extinguishment of debt
|
|
7
|
|
21
|
|
5
|
|
13
|
|
0.02
|
|
0.06
|
|
|
Other
restructuring, impairment and plant closing costs
|
|
4
|
|
7
|
|
4
|
|
7
|
|
0.02
|
|
0.03
|
|
|
Expenses
associated with the terminated merger and related litigation
|
|
3
|
|
2
|
|
2
|
|
1
|
|
0.01
|
|
—
|
|
|
Discount
amortization on settlement financing associated with the terminated merger
|
|
—
|
|
—
|
|
4
|
|
5
|
|
0.02
|
|
0.02
|
|
|
Acquisition
related expenses
|
|
1
|
|
8
|
|
—
|
|
6
|
|
—
|
|
0.03
|
|
|
Gain
on disposition of businesses/assets
|
|
—
|
|
(1
|
)
|
—
|
|
(1
|
)
|
—
|
|
—
|
|
|
Loss
(income) from discontinued operations, net of tax(2)
|
|
3
|
|
64
|
|
1
|
|
(6
|
)
|
—
|
|
(0.03
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted(1)
|
|
$
|
273
|
|
$
|
205
|
|
$
|
83
|
|
$
|
(48
|
)
|
$
|
0.34
|
|
$
|
(0.21
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Discontinued operations
|
|
$
|
(3
|
)
|
$
|
(64
|
)
|
$
|
(1
|
)
|
$
|
6
|
|
$
|
—
|
|
$
|
0.03
|
|
|
Restructuring,
impairment and plant closing (credits) costs
|
|
(1
|
)
|
55
|
|
(1
|
)
|
(13
|
)
|
—
|
|
(0.06
|
)
|
|
Loss
on disposition of assets
|
|
1
|
|
4
|
|
2
|
|
2
|
|
0.01
|
|
0.01
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted discontinued operations(1)(2)
|
|
$
|
(3
|
)
|
$
|
(5
|
)
|
$
|
—
|
|
$
|
(5
|
)
|
$
|
—
|
|
$
|
(0.02
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total - adjusted continuing and discontinued operations
|
|
$
|
270
|
|
$
|
200
|
|
$
|
83
|
|
$
|
(53
|
)
|
$
|
0.34
|
|
$
|
(0.23
|
)
|
|
In millions
|
|
Three months ended June 30,
2010
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income attributable to Huntsman Corporation
|
|
114
|
|
|
|
|
|
|
|
Interest
expense, net
|
|
43
|
|
|
|
|
|
|
|
Income
tax benefit from continuing operations
|
|
39
|
|
|
|
|
|
|
|
Income
tax benefit from discontinued operations(2)
|
|
37
|
|
|
|
|
|
|
|
Depreciation
and amortization of continuing operations
|
|
97
|
|
|
|
|
|
|
|
Depreciation
and amortization of discontinued operations
|
|
1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EBITDA(1)
|
|
$
|
331
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
In millions, except per share amounts
|
|
EBITDA
Three months ended
June 30, 2010
|
|
Net
Income (Loss)
Attributable to Huntsman Corporation
Three months ended
June 30, 2010
|
|
Diluted
Income (Loss)
Per Share
Three months ended
June 30, 2010
|
|
|
|
|
|
|
|
|
|
|
|
GAAP
|
|
$
|
331
|
|
$
|
114
|
|
$
|
0.47
|
|
|
Adjustments:
|
|
|
|
|
|
|
|
|
Unallocated
foreign currency gain
|
|
—
|
|
(4
|
)
|
(0.02
|
)
|
|
Loss
on early extinguishment of debt
|
|
7
|
|
4
|
|
0.02
|
|
|
Other
restructuring, impairment and plant closing costs
|
|
17
|
|
17
|
|
0.07
|
|
|
Expenses
associated with the terminated merger and related litigation
|
|
1
|
|
1
|
|
—
|
|
|
Discount
amortization on settlement financing associated with the terminated merger
|
|
—
|
|
4
|
|
0.02
|
|
|
Acquisition
related expenses
|
|
1
|
|
1
|
|
—
|
|
|
Income
from discontinued operations, net of tax(2)
|
|
(100
|
)
|
(62
|
)
|
(0.26
|
)
|
|
|
|
|
|
|
|
|
|
|
Adjusted
|
|
$
|
257
|
|
$
|
75
|
|
$
|
0.31
|
|
|
|
|
|
|
|
|
|
|
|
Discontinued operations
|
|
$
|
100
|
|
$
|
62
|
|
$
|
0.26
|
|
|
Loss
on disposition of assets
|
|
4
|
|
3
|
|
0.01
|
|
|
Gain
on fire insurance settlement
|
|
(110
|
)
|
(71
|
)
|
(0.29
|
)
|
|
|
|
|
|
|
|
|
|
|
Adjusted discontinued operations(2)
|
|
$
|
(6
|
)
|
$
|
(6
|
)
|
$
|
(0.02
|
)
|
|
|
|
|
|
|
|
|
|
|
Total - adjusted continuing and discontinued operations
|
|
$
|
251
|
|
$
|
69
|
|
$
|
0.29
|
|
|
|
|
EBITDA
Nine months ended September 30,
|
|
Net
Income (Loss)
Attributable To Huntsman Corporation
Nine months ended September 30,
|
|
Diluted
Income (Loss)
Per Share
Nine months ended September 30,
|
|
|
In millions, except per share amounts
|
|
2010
|
|
2009
|
|
2010
|
|
2009
|
|
2010
|
|
2009
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP(2)
|
|
$
|
533
|
|
$
|
1,011
|
|
$
|
(3
|
)
|
$
|
48
|
|
$
|
(0.01
|
)
|
$
|
0.20
|
|
|
Adjustments:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loss
on accounts receivable securitization program
|
|
—
|
|
13
|
|
—
|
|
—
|
|
—
|
|
—
|
|
|
Unallocated
foreign currency (gain) loss
|
|
(3
|
)
|
(15
|
)
|
2
|
|
(2
|
)
|
0.01
|
|
(0.01
|
)
|
|
Loss
on early extinguishment of debt
|
|
169
|
|
21
|
|
152
|
|
13
|
|
0.63
|
|
0.06
|
|
|
Other
restructuring, impairment and plant closing costs
|
|
24
|
|
83
|
|
23
|
|
75
|
|
0.10
|
|
0.32
|
|
|
Expenses
(income) associated with the terminated merger and related litigation
|
|
4
|
|
(835
|
)
|
3
|
|
(526
|
)
|
0.01
|
|
(2.25
|
)
|
|
Discount
amortization on settlement financing associated with the terminated merger
|
|
—
|
|
—
|
|
12
|
|
5
|
|
0.05
|
|
0.02
|
|
|
Acquisition
related expenses
|
|
2
|
|
9
|
|
1
|
|
7
|
|
—
|
|
0.03
|
|
|
Gain
on disposition of businesses/assets
|
|
—
|
|
(1
|
)
|
—
|
|
(1
|
)
|
—
|
|
—
|
|
|
(Income)
loss from discontinued operations, net of tax(2)
|
|
(76
|
)
|
69
|
|
(48
|
)
|
—
|
|
(0.20
|
)
|
—
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted(1)(2)
|
|
$
|
653
|
|
$
|
355
|
|
$
|
142
|
|
$
|
(381
|
)
|
$
|
0.59
|
|
$
|
(1.63
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Discontinued operations
|
|
$
|
76
|
|
$
|
(69
|
)
|
$
|
48
|
|
$
|
—
|
|
$
|
0.20
|
|
$
|
—
|
|
|
Restructuring,
impairment and plant closing costs (credits)
|
|
4
|
|
56
|
|
2
|
|
(12
|
)
|
0.01
|
|
(0.05
|
)
|
|
Loss
on disposition of assets
|
|
13
|
|
4
|
|
10
|
|
2
|
|
0.04
|
|
0.01
|
|
|
Gain
on hurricane insurance settlement
|
|
(7
|
)
|
—
|
|
(7
|
)
|
—
|
|
(0.03
|
)
|
—
|
|
|
Gain
on fire insurance settlement
|
|
(110
|
)
|
—
|
|
(68
|
)
|
—
|
|
(0.28
|
)
|
—
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted discontinued operations(1)(2)
|
|
$
|
(24
|
)
|
$
|
(9
|
)
|
$
|
(15
|
)
|
$
|
(10
|
)
|
$
|
(0.06
|
)
|
$
|
(0.04
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total - adjusted continuing and discontinued operations
|
|
$
|
629
|
|
$
|
346
|
|
$
|
127
|
|
$
|
(391
|
)
|
$
|
0.53
|
|
$
|
(1.67
|
)
|
See end of press release for footnote explanations
9
Conference
Call Information
We
will hold a conference call to discuss our 2010 third quarter results on
Thursday, November 4, 2010 at 10:00 a.m. ET.
|
Call-in
number for U.S. participants:
|
|
(888)
679 - 8040
|
|
Call-in
number for international participants:
|
|
(617)
213 - 4851
|
|
Participant
access code:
|
|
84316359
|
In
order to facilitate the registration process, you may use the following link to
pre-register for the conference call. Callers who pre-register will be given a
unique PIN to gain immediate access to the call and bypass the live operator.
You may pre-register at any time, including up to and after the call start
time. To pre-register, please go to: https://cossprereg.btci.com/prereg/key.process?key=PEHDAN6X4
The
conference call will be available via webcast and can be accessed from the
investor relations portion of the company’s website at http://www.huntsman.com.
The
conference call will be available for replay beginning November 4, 2010
and ending November 11, 2010
|
Call-in
numbers for the replay:
|
|
|
|
|
Within
the U.S.:
|
(888)
286 - 8010
|
|
|
|
|
International:
|
(617)
801 - 6888
|
|
|
|
|
Access
code for replay:
|
68394641
|
|
|
About Huntsman:
Huntsman is a global manufacturer
and marketer of differentiated chemicals. Its operating companies manufacture
products for a variety of global industries, including chemicals, plastics,
automotive, aviation, textiles, footwear, paints and coatings, construction,
technology, agriculture, health care, detergent, personal care, furniture,
appliances and packaging. Originally known for pioneering innovations in
packaging and, later, for rapid and integrated growth in petrochemicals,
Huntsman has approximately 11,000 employees and operates from multiple
locations worldwide. The Company had 2009 revenues of approximately $8 billion.
For more information about Huntsman, please visit the company’s website at
www.huntsman.com.
Forward-Looking Statements:
Statements in this release that
are not historical are forward-looking statements. These statements are based
on management’s current beliefs and expectations. The forward-looking
statements in this release are subject to uncertainty and changes in
circumstances and involve risks and uncertainties that may affect the company’s
operations, markets, products, services, prices and other factors as discussed
in the Huntsman companies’ filings with the U.S. Securities and Exchange
Commission. Significant risks and uncertainties may relate to, but are not
limited to, financial, economic, competitive, environmental, political, legal,
regulatory and technological factors.
The company assumes no obligation to provide revisions to any
forward-looking statements should circumstances change, except as otherwise
required by applicable laws.
10
(1) We use EBITDA and Adjusted EBITDA to measure the
operating performance of our business.
We also provide Adjusted EBITDA from discontinued operations, Adjusted
net income and Adjusted net income from discontinued operations because we feel
they provide meaningful insight for the investment community into the
performance of our business. We believe
that net income (loss) attributable to Huntsman Corporation is the performance
measure calculated and presented in accordance with generally accepted
accounting principles in the U.S. (“GAAP”) that is most directly comparable to
EBITDA, Adjusted EBITDA and Adjusted net income. We believe that income (loss)
from discontinued operations is the performance measure calculated and
presented in accordance with GAAP that is most directly comparable to Adjusted
EBITDA from discontinued operations and Adjusted net income from discontinued
operations. Additional information with respect to our use of each of these
financial measures follows:
EBITDA
is defined as net income (loss) attributable to Huntsman Corporation before
interest, income taxes, and depreciation and amortization. EBITDA as used
herein is not necessarily comparable to other similarly titled measures of
other companies. The reconciliation of EBITDA to net income (loss) attributable
to Huntsman Corporation is set forth in the operating results table above.
Adjusted
EBITDA is computed by eliminating the following from EBITDA: gains and
losses from discontinued operations; restructuring, impairment and plant
closing (credits) costs; income and expense associated with the terminated
merger and related litigation; acquisition related expenses; losses on the sale
of accounts receivable to our securitization program; unallocated foreign
currency (gain) loss; certain legal and contract settlements; losses from early
extinguishment of debt; extraordinary loss (gain) on the acquisition of a
business; and loss (gain) on disposition of business/assets. The reconciliation of Adjusted EBITDA to
EBITDA is set forth in the Reconciliation of Adjustments table above.
Adjusted
EBITDA from discontinued operations is computed by eliminating the following
from income (loss) from discontinued operations: income taxes; depreciation and
amortization; restructuring, impairment and plant closing (credits) costs;
losses on the sale of accounts receivable to our securitization program;
unallocated foreign currency (gain) loss; gain on fire insurance settlement;
and (gain) loss on disposition of business/assets. The following table provides
a reconciliation of Adjusted EBITDA from discontinued operations to income
(loss) from discontinued operations:
|
|
|
Three
months ended September 30,
|
|
Nine
months ended September 30,
|
|
|
In millions
|
|
2010
|
|
2009
|
|
2010
|
|
2009
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net (loss) income from discontinued operations,
net of tax
|
|
$
|
(1
|
)
|
$
|
6
|
|
$
|
48
|
|
$
|
—
|
|
|
Income tax (benefit) expense
|
|
(2
|
)
|
(70
|
)
|
27
|
|
(70
|
)
|
|
Depreciation and amortization
|
|
—
|
|
—
|
|
1
|
|
1
|
|
|
EBITDA from discontinued operations
|
|
(3
|
)
|
(64
|
)
|
76
|
|
(69
|
)
|
|
Restructuring, impairment and plant closing
(credits) costs
|
|
(1
|
)
|
55
|
|
4
|
|
56
|
|
|
Loss on disposition of assets
|
|
1
|
|
4
|
|
13
|
|
4
|
|
|
Gain on hurricane insurance settlement
|
|
—
|
|
—
|
|
(7
|
)
|
—
|
|
|
Gain on fire insurance settlement
|
|
—
|
|
—
|
|
(110
|
)
|
—
|
|
|
Adjusted EBITDA from discontinued operations
|
|
$
|
(3
|
)
|
$
|
(5
|
)
|
$
|
(24
|
)
|
$
|
(9
|
)
|
Adjusted
net income (loss) is computed by eliminating the after tax impact of the
following items from net income (loss) attributable to Huntsman Corporation:
loss (income) from discontinued operations; restructuring, impairment and plant
closing (credits) costs; income and expense associated with the terminated
merger and related litigation; discount amortization on settlement financing
associated with the terminated merger; acquisition related expenses;
unallocated foreign currency (gain) loss;
certain legal and contract settlements; losses on the early
extinguishment of debt; extraordinary loss (gain) on the acquisition of a
business; and loss (gain) on disposition of business/assets. The reconciliation of adjusted net income
(loss) to net income (loss) attributable to Huntsman Corporation common
stockholders is set forth in the Reconciliation of Adjustments table above.
Adjusted
net income (loss) from discontinued operations is computed by eliminating the
after tax impact of the following items from income (loss) from discontinued
operations: restructuring, impairment and plant closing (credits) costs; gain
on fire insurance settlement; and (gain) loss on the disposition of
business/assets. The reconciliation of
Adjusted net income (loss) from discontinued operations to net income (loss)
attributable to Huntsman Corporation is set forth in the Reconciliation of
Adjustments table above.
(2) On August 1, 2007, we completed the sale of our
U.S. polymers business to Flint Hills Resources. On November 5, 2007, we completed the
sale of our U.S. base chemicals business to Flint Hills Resources. During the first quarter 2010 we closed our
Australian styrenics operations. Results
from these businesses are treated as discontinued operations.
11