Exhibit 99.1

 

 

NYSE: HUN

 

HUNTSMAN RELEASES FOURTH QUARTER AND FULL YEAR 2011 RESULTS;

REPORTS RECORD FULL YEAR ADJUSTED EBITDA OF $1.2 BILLION

 

Fourth Quarter 2011 Highlights

 

·                  Revenues improved 9% compared to the prior year period.

 

·                  Net income attributable to Huntsman Corporation was $105 million or $0.44 per diluted share compared to $30 million or $0.12 per diluted share in the prior year period.

 

·                  Adjusted EBITDA improved 11% to $243 million compared to the prior year period.

 

·                  Adjusted diluted income per share improved 12% to $0.28 compared to the prior year period.

 

Full Year 2011 Highlights

 

·                  Revenues improved 21% compared to the prior year.

 

·                  Net income attributable to Huntsman Corporation was $247 million or $1.02 per diluted share compared to $27 million or $0.11 per diluted share in the prior year period.

 

·                  Adjusted EBITDA improved 39% to $1,214 million compared to the prior year.

 

·                  Adjusted diluted income per share improved 104% to $1.69 compared to the prior year.

 

		Three months ended									Year ended
		December 31,						September 30,			December 31,
In millions, except per share amounts, unaudited		2011			2010			2011			2011			2010
Revenues		$	2,632		$	2,412		$	2,976		$	11,221		$	9,250
Net income (loss) attributable to Huntsman Corporation		$	105		$	30		$	(34	)	$	247		$	27
Adjusted net income(1)		$	68		$	60		$	114		$	408		$	200
Diluted income (loss) per share		$	0.44		$	0.12		$	(0.14	)	$	1.02		$	0.11
Adjusted diluted income per share(1)		$	0.28		$	0.25		$	0.47		$	1.69		$	0.83
EBITDA(1)		$	273		$	167		$	204		$	1,039		$	700
Adjusted EBITDA(1)		$	243		$	219		$	346		$	1,214		$	875

 

See end of press release for footnote explanations

 

 

The Woodlands, TX — Huntsman Corporation (NYSE: HUN) today reported fourth quarter 2011 results with revenues of $2,632 million and adjusted EBITDA of $243 million.

 

Peter R. Huntsman, our President and CEO, commented:

 

“Our adjusted EBITDA of $1.2 billion represents the best year we have accomplished with our current business portfolio.  This took place despite earnings pressure from foreign currency movements within the year and lower demand trends and aggressive customer destocking within the fourth quarter.

 

Looking forward, we anticipate that the corporation will see an improving global economy from this point forward.  Most of our businesses have strong upside potential as we see a continued recovery in the world’s economy.  In 2012, we expect margin pressure on our Pigments business to be offset by improved earnings in our other divisions.”

 

Segment Analysis for 4Q11 Compared to 4Q10

 

Polyurethanes

 

The increase in revenues in our Polyurethanes division for the three months ended December 31, 2011 compared to the same period in 2010 was primarily due to higher average selling prices.  Average MDI and PO/MTBE selling prices increased primarily in response to higher raw material costs.  The decrease in adjusted EBITDA was due to higher manufacturing and selling, general and administrative costs and lower MDI contribution margins.

 

Performance Products

 

The increase in revenues in our Performance Products division for the three months ended December 31, 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 across most product groups with the exception of certain amines primarily in response to higher raw material costs.  Sales volumes decreased due to lower demand and customer destocking.  The decrease in adjusted EBITDA was primarily due to lower sales volumes and higher manufacturing and selling, general and administrative costs.

 

Advanced Materials

 

The decrease in revenues in our Advanced Materials division for the three months ended December 31, 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 primarily due to lower demand in the wind energy market in the Asia Pacific region.  Average selling prices increased primarily in response to higher raw material costs.  The decrease in adjusted EBITDA was primarily due to the impact of the stronger Swiss franc, on our manufacturing and selling, general and administrative costs.

 

Textile Effects

 

The decrease in revenues in our Textile Effects division for the three months ended December 31, 2011 compared to the same period in 2010 was primarily due to lower sales volumes.  Sales volumes decreased due to lower demand.  The decrease in adjusted EBITDA was primarily due to lower sales volumes and the impact of the stronger Swiss franc, on our manufacturing and selling, general and administrative costs.

 

Pigments

 

The increase in revenues in our Pigments division for the three months ended December 31, 2011 compared to the same period in 2010 was due to higher average selling prices partially offset by lower sales volumes.  Average selling prices increased in all regions of the world primarily as a result of higher raw material costs.  Sales volumes decreased primarily due to lower global economic growth and customer destocking particularly

 

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in the Asia Pacific region.  The increase in adjusted EBITDA in our Pigments division was primarily due to higher contribution margins partially offset by lower sales volumes.

 

Corporate, LIFO and Other

 

Corporate, LIFO and other includes unallocated corporate overhead, LIFO inventory valuation reserve adjustments and unallocated foreign exchange gains and losses.  During the fourth quarter of 2011, we began including unallocated foreign exchange gains and losses in adjusted EBITDA and adjusted income (loss) per share.  We believe this more accurately reflects the ongoing cost of operating a global business.  All relevant information for prior periods has been recast to reflect these changes.  Adjusted EBITDA from Corporate, LIFO and other increased by $22 million to a loss of $34 million for the three months ended December 31, 2011 compared to a loss of $56 million for the same period in 2010.  The increase in adjusted EBITDA was primarily the result of a $13 million decrease in LIFO inventory valuation expense ($6 million gain in 2011 compared to $7 million loss in 2010) and an increase in unallocated foreign exchange gains of $4 million ($5 million gain in 2011 compared to $1 million gain in 2010).

 

Income Taxes

 

During the three months and full year ended December 31, 2011 we recorded income tax benefit of $2 million and income tax expense of $109 million respectively.  Our adjusted effective income tax rate for the three months and full year ended December 31, 2011 was approximately 12% and 26% respectively.  We have tax valuation allowances in certain countries.  Improved earnings from our Pigments business generated a partial release of tax valuation allowances in the fourth quarter 2011 which had the effect of decreasing our effective income tax rate and resulted in an approximate benefit of $0.04 per diluted share.  We expect our long term effective income tax rate to be approximately 30 - 35%.  During the three months and full year ended December 31, 2011 we paid $35 million and $119 million in cash for income taxes respectively.

 

Liquidity, Capital Resources and Outstanding Debt

 

As of December 31, 2011, we had $1,043 million of combined cash and unused borrowing capacity compared to $1,434 million at December 31, 2010.  In 2011, our primary net working capital increased by $258 million.  For the year ended December 31, 2011, we redeemed approximately $305 million of senior subordinated notes, including all of our remaining 6.875% senior subordinated euro notes due 2013 worth approximately $94 million which were redeemed during the fourth quarter of 2011.

 

Total capital expenditures, net of reimbursements for the three months and full year ended December 31, 2011 were $113 million and $327 million respectively.  We expect to spend approximately $425 million on capital expenditures, net of reimbursements, in 2012 which approximates our annual depreciation and amortization of $439 million in 2011.

 

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Conference Call Information

 

We will hold a conference call to discuss our fourth quarter and full year 2011 financial results on Thursday February 16, 2012 at 10:00 a.m. ET.

 

Call-in numbers for the conference call:

 

 

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=PRVR4F6KC

 

Webcast Information

 

The conference call will be available via webcast and can be accessed from the investor relations portion of the company’s website at huntsman.com.

 

Replay Information

 

The conference call will be available for replay beginning February 16, 2012 and ending February 23, 2012.

 

Call-in numbers for the replay:

 

 

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Table 1 — Results of Operations

 

		Three months ended December 31,						Year ended December 31,
In millions, except per share amounts, unaudited		2011			2010			2011			2010
Revenues		$	2,632		$	2,412		$	11,221		$	9,250
Cost of goods sold		2,243			2,032			9,381			7,789
Gross profit		389			380			1,840			1,461
Operating expenses		246			281			1,067			1,022
Restructuring, impairment and plant closing (credits) costs		(4		)	5			167			29
Operating income		147			94			606			410
Interest expense, net		(62		)	(61		)	(249		)	(229		)
Equity in income of investment in unconsolidated affiliates		2			4			8			24
Loss on early extinguishment of debt		(2		)	(14		)	(7		)	(183		)
Expenses associated with the terminated merger and related litigation		—			—			—			(4		)
Other income (loss)		2			(1		)	2			2
Income before income taxes		87			22			360			20
Income tax benefit (expense)		2			17			(109		)	(29		)
Income (loss) from continuing operations		89			39			251			(9		)
Income (loss) from discontinued operations, net of tax(2)		4			(6		)	(1		)	42
Extraordinary gain (loss) on the acquisition of a business, net of tax of nil		2			(1		)	4			(1		)
Net income		95			32			254			32
Net loss (income) attributable to noncontrolling interests, net of tax		10			(2		)	(7		)	(5		)
Net income attributable to Huntsman Corporation		$	105		$	30		$	247		$	27
Adjusted EBITDA(1)		$	243		$	219		$	1,214		$	875
Adjusted net income(1)		$	68		$	60		$	408		$	200
Basic income per share		$	0.45		$	0.13		$	1.04		$	0.11
Diluted income per share		$	0.44		$	0.12		$	1.02		$	0.11
Adjusted diluted income per share(1)		$	0.28		$	0.25		$	1.69		$	0.83
Common share information:
Basic shares outstanding		235.7			236.6			237.6			236.0
Diluted shares		239.5			242.1			241.7			236.0
Diluted shares for adjusted diluted income per share		239.5			242.1			241.7			241.0

 

See end of press release for footnote explanations

 

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Table 2 — Results of Operations by Segment

 

		Three months ended December 31,								Year ended December 31,
In millions, unaudited		2011			2010			Change		2011			2010			Change
Segment Revenues:
Polyurethanes		$	1,043		$	946		10	%	$	4,434		$	3,605		23	%
Performance Products		755			696			8	%	3,301			2,659			24	%
Advanced Materials		313			315			(1	)%	1,372			1,244			10	%
Textile Effects		174			189			(8	)%	737			787			(6	)%
Pigments		399			330			21	%	1,642			1,213			35	%
Eliminations and other		(52		)	(64		)	(19	)%	(265		)	(258		)	3	%
Total		$	2,632		$	2,412		9	%	$	11,221		$	9,250		21	%
Segment Adjusted EBITDA(1):
Polyurethanes		$	79		$	99		(20	)%	$	476		$	320		49	%
Performance Products		60			89			(33	)%	374			367			2	%
Advanced Materials		15			17			(12	)%	111			141			(21	)%
Textile Effects		(22		)	(1		)	NM		(64		)	15			NM
Pigments		145			71			104	%	508			215			136	%
Corporate, LIFO and other		(34		)	(56		)	(39	)%	(191		)	(183		)	4	%
Total		$	243		$	219		11	%	$	1,214		$	875		39	%

 

 

Table 3 — Factors Impacting Sales Revenues

 

		Three months ended December 31, 2011 vs. 2010
		Average Selling Price(a)
Unaudited		Local Currency		Exchange Rate		Sales Mix & Other		Sales Volume(a)		Total
Polyurethanes		11	%	—		(1	)%	—		10	%
Performance Products		17	%	—		(3	)%	(6	)%	8	%
Advanced Materials		3	%	—		(2	)%	(2	)%	(1	)%
Textile Effects		—		—		(1	)%	(7	)%	(8	)%
Pigments		38	%	—		1	%	(18	)%	21	%
Total Company		12	%	—		1	%	(4	)%	9	%
		Year ended December 31, 2011 vs. 2010
		Average Selling Price(a)
Unaudited		Local Currency		Exchange Rate		Sales Mix & Other		Sales Volume(a)		Total
Polyurethanes		16	%	2	%	(3	)%	8	%	23	%
Performance Products		20	%	2	%	(1	)%	3	%	24	%
Advanced Materials		7	%	3	%	—		—		10	%
Textile Effects		—		3	%	—		(9	)%	(6	)%
Pigments		34	%	4	%	(1	)%	(2	)%	35	%
Total Company		16	%	3	%	(3	)%	5	%	21	%

(a)         Excludes revenues and sales volumes from tolling, by-products and raw materials

 

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Table 4 — Reconciliation of U.S. GAAP to Non-GAAP Measures

 

		EBITDA						Income Tax (Expense) Benefit						Net Income (Loss) Attrib. to HUN Corp.						Diluted Income (Loss) Per Share
		Three months ended December 31,						Three months ended December 31,						Three months ended December 31,						Three months ended December 31,
In millions, except per share amounts, unaudited		2011			2010			2011			2010			2011			2010			2011			2010
GAAP(1)		$	273		$	167		$	2		$	17		$	105		$	30		$	0.44		$	0.12
Adjustments:
Legal settlements and related expenses		8			8			(3		)	(3		)	5			5			0.02			0.02
Loss on early extinguishment of debt		2			14			(1		)	(5		)	1			9			—			0.04
Restructuring, impairment and plant closing (credits) costs		(4		)	5			(7		)	(1		)	(11		)	4			(0.05		)	0.02
Discount amortization on settlement financing associated with the terminated merger		N/A			N/A			(2		)	(3		)	5			4			0.02			0.02
Acquisition expenses		—			1			—			—			—			1			—			—
Gain on disposition of businesses/assets		(34		)	—			3			—			(31		)	—			(0.13		)	—
Loss (income) from discontinued operations, net of tax(2)		—			23			N/A			N/A			(4		)	6			(0.02		)	0.02
Extraordinary (gain) loss on the acquisition of a business, net of tax		(2		)	1			N/A			N/A			(2		)	1			(0.01		)	—
Adjusted(1)		$	243		$	219		$	(8	)	$	5		$	68		$	60		$	0.28		$	0.25
Adjusted income tax expense (benefit)														8			(5		)
Net (loss) income attributable to noncontrolling interests, net of tax														(10		)	2
Adjusted pre-tax income(1)														$	66		$	57
Adjusted effective tax rate														12		%	-9		%

 

		EBITDA			Income Tax (Expense) Benefit			Net Income (Loss) Attrib. to HUN Corp.			Diluted Income (Loss) Per Share
		Three months ended September 30,			Three months ended September 30,			Three months ended September 30,			Three months ended September 30,
In millions, except per share amounts, unaudited		2011			2011			2011			2011
GAAP(1)		$	204		$	(55	)	$	(34	)	$	(0.14	)
Adjustments:
Legal settlements and related expenses		4			(1		)	3			0.01
Loss on early extinguishment of debt		2			(1		)	1			—
Restructuring, impairment and plant closing costs		155			(3		)	152			0.63
Discount amortization on settlement financing associated with the terminated merger		N/A			(3		)	4			0.02
Acquisition expenses		1			—			1			—
Gain on disposition of businesses/assets		(3		)	—			(3		)	(0.01		)
Income from discontinued operations, net of tax(2)		(17		)	N/A			(10		)	(0.04		)
Adjusted(1)		$	346		$	(63	)	$	114		$	0.47
Adjusted income tax expense								63
Net income attributable to noncontrolling interests, net of tax								2
Adjusted pre-tax income(1)								$	179
Adjusted effective tax rate								35		%

 

		EBITDA						Income Tax (Expense) Benefit						Net Income (Loss) Attrib. to HUN Corp.						Diluted Income (Loss) Per Share
		Year ended December 31,						Year ended December 31,						Year ended December 31,						Year ended December 31,
In millions, except per share amounts, unaudited		2011			2010			2011			2010			2011			2010			2011			2010
GAAP(1)		$	1,039		$	700		$	(109	)	$	(29	)	$	247		$	27		$	1.02		$	0.11
Adjustments:
Legal settlements and related expenses		46			8			(17		)	(3		)	29			5			0.12			0.02
Loss on early extinguishment of debt		7			183			(3		)	(22		)	4			161			0.02			0.67
Gain on consolidation of a variable interest entity		(12		)	—			2			—			(10		)	—			(0.04		)	—
Restructuring, impairment and plant closing costs		167			29			(11		)	(2		)	156			27			0.65			0.11
Expenses associated with the terminated merger and related litigation		—			4			—			(1		)	—			3			—			0.01
Discount amortization on settlement financing associated with the terminated merger		N/A			N/A			(10		)	(10		)	18			16			0.07			0.07
Acquisition expenses		5			3			(1		)	(1		)	4			2			0.02			0.01
Gain on disposition of businesses/assets		(40		)	—			3			—			(37		)	—			(0.15		)	—
Loss (income) from discontinued operations, net of tax(2)		6			(53		)	N/A			N/A			1			(42		)	—			(0.17		)
Extraordinary (gain) loss on the acquisition of a business, net of tax		(4		)	1			N/A			N/A			(4		)	1			(0.02		)	—
Adjusted(1)		$	1,214		$	875		$	(146	)	$	(68	)	$	408		$	200		$	1.69		$	0.83
Adjusted income tax expense														146			68
Net income attributable to noncontrolling interests, net of tax														7			5
Adjusted pre-tax income(1)														$	561		$	273
Adjusted effective tax rate														26		%	25		%

 

See end of press release for footnote explanations

 

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Table 5 — Reconciliation of Net Income (Loss) to EBITDA

 

		Three months ended									Year ended
		December 31,						September 30,			December 31,
In millions, unaudited		2011			2010			2011			2011			2010
Net income (loss) attributable to Huntsman Corporation		$	105		$	30		$	(34	)	$	247		$	27
Interest expense, net		62			61			63			249			229
Income tax (benefit) expense from continuing operations		(2		)	(17		)	55			109			29
Income tax (benefit) expense from discontinued operations(2)		(4		)	(17		)	7			(5		)	10
Depreciation and amortization of continuing operations		112			110			113			439			404
Depreciation and amortization of discontinued operations(2)		—			—			—			—			1
EBITDA(1)		$	273		$	167		$	204		$	1,039		$	700

 

See end of press release for footnote explanations

 

Table 6 — Selected Balance Sheet Items

 

		December 31,			September 30,			December 31,
In millions		2011			2011			2010
					(unaudited)
Cash		$	562		$	459		$	973
Accounts and notes receivable, net		1,529			1,762			1,413
Inventories		1,539			1,687			1,396
Other current assets		316			366			226
Property, plant and equipment, net		3,622			3,659			3,605
Other assets		1,089			1,075			1,101
Total assets		$	8,657		$	9,008		$	8,714
Accounts payable		$	862		$	941		$	842
Other current liabilities		752			787			692
Current portion of debt		212			230			519
Long-term debt		3,730			3,847			3,627
Other liabilities		1,325			1,269			1,184
Total equity		1,776			1,934			1,850
Total liabilities and equity		$	8,657		$	9,008		$	8,714

 

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