Exhibit 99.1

 

News Release

 

FOR IMMEDIATE RELEASE	Investor Relations:	Media:
February 11, 2014	Kurt Ogden	Gary Chapman
The Woodlands, TX	(801) 584-5959	(281) 719-4324
NYSE: HUN

 

HUNTSMAN RELEASES FOURTH QUARTER AND FULL YEAR 2013 RESULTS;

FOURTH QUARTER ADJUSTED EBITDA IMPROVED 28%

COMPARED TO PRIOR YEAR

 

Fourth Quarter 2013 Highlights

 

·                  Record Adjusted EBITDA of $313 million, an improvement of 28% compared to the prior year period.

 

·                  Adjusted diluted income per share was $0.48 compared to $0.28 in the prior year period.

 

·                  Net income attributable to Huntsman Corporation was $41 million compared to net loss of $40 million in the prior year period.

 

Full Year 2013 Highlights

 

·                  Adjusted EBITDA was $1,213 million compared to $1,439 million in the prior year period.  The decrease was primarily attributable to lower earnings in our Pigments division and lower PO/MTBE earnings which benefitted from industry supply outages in 2012.

 

·                  Adjusted diluted income per share was $1.61 compared to $2.40 in the prior year period.

 

·                  Net income attributable to Huntsman Corporation was $128 million compared to net income of $363 million in the prior year period.

 

		Three months ended									Twelve months ended
		December 31,						September 30,			December 31,
In millions, except per share amounts, unaudited		2013			2012			2013			2013			2012
Revenues		$	2,705		$	2,619		$	2,842		$	11,079		$	11,187
Net income (loss) attributable to Huntsman Corporation		$	41		$	(40	)	$	64		$	128		$	363
Adjusted net income(1)		$	118		$	68		$	132		$	390		$	577
Diluted income (loss) per share		$	0.17		$	(0.17	)	$	0.26		$	0.53		$	1.51
Adjusted diluted income per share(1)		$	0.48		$	0.28		$	0.54		$	1.61		$	2.40
EBITDA(1)		$	225		$	104		$	303		$	889		$	1,187
Adjusted EBITDA(1)		$	313		$	245		$	376		$	1,213		$	1,439

 

See end of press release for footnote explanations

 

 

The Woodlands, TX — Huntsman Corporation (NYSE: HUN) today reported fourth quarter 2013 results with revenues of $2,705 million and adjusted EBITDA of $313 million.

 

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

 

“Our Adjusted EBITDA of $313 million was a fourth quarter record.  With the notable exception of PO/MTBE, we saw broad improvements in earnings across our businesses in the fourth quarter compared to the prior year.  Aggressive self-help measures that have re-focused our efforts on key markets and lowered our costs are yielding benefits to the bottom line.  These restructuring efforts are expected to contribute an additional approximate $60 million of future EBITDA.

 

“We expect to close on the acquisition of Rockwood Holdings’ Performance Additives and Titanium Dioxide businesses during the first half of 2014 and remain confident in our ability to deliver synergies of $130 million.  Antitrust review in the U.S. is complete and we are making positive strides as it relates to the European Union review.

 

“We are investing for long term growth and are progressing well with the previously disclosed projects that will further increase our future EBITDA by nearly $200 million.  We are enthused by the positive developments taking place within our business and look forward to delivering further value.”

 

Segment Analysis for 4Q13 Compared to 4Q12

 

Polyurethanes

 

The increase in revenues in our Polyurethanes division for the three months ended December 31, 2013 compared to the same period in 2012 was primarily due to higher sales volumes and favorable sales mix partially offset by lower average selling prices.  MDI Urethane sales volumes increased 8% as a result of improved demand in all regions and across most major markets partially offset by a decrease in PO/MTBE sales volumes.  PO/MTBE average selling prices decreased primarily due to less favorable market conditions whereas MDI Urethane average selling prices were essentially flat.  The decrease in adjusted EBITDA was due to lower PO/MTBE margins partially offset by an increase in MDI Urethane earnings.

 

Performance Products

 

The increase in revenues in our Performance Products division for the three months ended December 31, 2013 compared to the same period in 2012 was due to higher sales volumes partially offset by lower selling prices and the mix effect of more toll business.  Sales volumes increased broadly across all products with the exception of European home care surfactants.  Average selling prices fell mainly in response to lower raw material costs.  The increase in adjusted EBITDA was primarily due to higher sales volumes and higher margins.

 

Advanced Materials

 

The decrease in revenues in our Advanced Materials division for the three months ended December 31, 2013 compared to the same period in 2012 was primarily due to lower sales volumes, partially offset by favorable sales mix and higher average selling prices.  Sales volumes decreased in our base resins business primarily due to our restructuring efforts.  During the fourth quarter 2013 we closed two of our base resins production units as we focus on higher value component and formulations sales such as aerospace, transportation and industrial markets.  Average selling prices increased in all regions primarily in response to higher raw materials costs and improved sales mix.  The increase in adjusted EBITDA was primarily due to higher contribution margins and lower manufacturing and selling, general and administrative costs as a result of our restructuring efforts.

 

2

 

Textile Effects

 

The increase in revenues in our Textile Effects division for the three months ended December 31, 2013 compared to the same period in 2012 was due to higher average selling prices and higher sales volumes.  Average selling prices increased primarily in response to higher raw material costs.  Sales volumes increased primarily due to increased market share in key countries and stronger consumer end market sentiment.  The increase in adjusted EBITDA was primarily due to higher sales volumes and lower costs as a result of our restructuring efforts.

 

Pigments

 

The increase in revenues in our Pigments division for the three months ended December 31, 2013 compared to the same period in 2012 was primarily due to higher sales volumes partially offset by lower average selling prices.  Sales volumes increased primarily due to higher end-use demand.  Average selling prices decreased primarily as a result of high industry inventory levels partially offset by the strength of the euro against the U.S. dollar.  The increase in adjusted EBITDA was primarily due to higher sales volumes and lower manufacturing and selling, general and administrative costs.

 

Corporate, LIFO and Other

 

Adjusted EBITDA from Corporate, LIFO and Other decreased by $1 million to a loss of $50 million for the three months ended December 31, 2013 compared to a loss of $49 million for the same period in 2012.

 

Liquidity, Capital Resources and Outstanding Debt

 

As of December 31, 2013 we had $1,048 million of combined cash and unused borrowing capacity compared to $887 million at December 31, 2012.

 

On December 23, 2013 we issued €300 million senior notes that carry an interest rate of 5.125% and will mature on April 15, 2021.  Net proceeds were used to repay a portion of the principal amount outstanding under our Term Loan C, to pay related fees and expenses and for general corporate purposes.

 

On October 15, 2013 we entered into an amendment to our senior credit facilities that provides for a new seven year term loan of $1.2 billion as well as an increase in our existing revolving credit facility by $200 million to $600 million. We have secured commitments from a group of financial institutions to provide this term loan and expanded revolving credit facility. This new financing is expected be funded when we complete the acquisition of the Performance Additives and Titanium Dioxide businesses of Rockwood Holdings, Inc.

 

Total capital expenditures for the quarter ended December 31, 2013 were $176 million and for the year ended December 31, 2013 were $471 million.  We expect to spend approximately $500 million on capital expenditures in 2014, net of reimbursements, excluding any amounts associated with the planned acquisition of the Performance Additives and Titanium Dioxide businesses of Rockwood Holdings, Inc.

 

Income Taxes

 

During the three months ended December 31, 2013 we recorded income tax expense of $20 million and paid $18 million in cash for income taxes.  Our adjusted effective income tax rates for the three months and year ended December 31, 2013 were approximately 21% and 32% respectively.

 

During the fourth quarter of 2013 as a result of specific pension accounting we were required to record a decrease in operating tax expense and an increase to tax expense in other comprehensive income.

 

3

 

We expect our 2014 adjusted effective tax rate to be approximately 35% excluding the impact of the acquisition of the Performance Additives and Titanium Dioxide businesses of Rockwood Holdings, Inc.  We expect our long term adjusted effective tax rate to be approximately 30%.

 

Earnings Conference Call Information

 

We will hold a conference call to discuss our fourth quarter and full year 2013 financial results on Tuesday, February 11, 2014 at 10:00 a.m. ET.

 

Call-in numbers for the conference call:

 

U.S. participants	(888) 713 - 4215
International participants	(617) 213 - 4867
Passcode	20450733

 

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=PFA7R877G

 

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 11, 2014 and ending February 18, 2014.

 

Call-in numbers for the replay:

 

U.S. participants	(888) 286 - 8010
International participants	(617) 801 - 6888
Replay code	67503187

 

4

 

Table 1 — Results of Operations

 

		Three months ended						Twelve months ended
		December 31,						December 31,
In millions, except per share amounts, unaudited		2013			2012			2013			2012
Revenues		$	2,705		$	2,619		$	11,079		$	11,187
Cost of goods sold		2,259			2,199			9,326			9,153
Gross profit		446			420			1,753			2,034
Operating expenses		284			305			1,092			1,097
Restructuring, impairment and plant closing costs		41			40			151			92
Operating income		121			75			510			845
Interest expense, net		(44		)	(54		)	(190		)	(226		)
Equity in income of investment in unconsolidated affiliates		2			2			8			7
Loss on early extinguishment of debt		(16		)	(78		)	(51		)	(80		)
Other (loss) income		—			(1		)	2			1
Income (loss) before income taxes		63			(56		)	279			547
Income tax (expense) benefit		(20		)	17			(125		)	(169		)
Income (loss) from continuing operations		43			(39		)	154			378
Loss from discontinued operations, net of tax(2)		(1		)	—			(5		)	(7		)
Extraordinary gain on the acquisition of a business, net of tax of nil		—			1			—			2
Net income (loss)		42			(38		)	149			373
Net income attributable to noncontrolling interests, net of tax		(1		)	(2		)	(21		)	(10		)
Net income (loss) attributable to Huntsman Corporation		$	41		$	(40	)	$	128		$	363
Adjusted EBITDA(1)		$	313		$	245		$	1,213		$	1,439
Adjusted net income(1)		$	118		$	68		$	390		$	577
Basic income (loss) per share		$	0.17		$	(0.17	)	$	0.53		$	1.53
Diluted income (loss) per share		$	0.17		$	(0.17	)	$	0.53		$	1.51
Adjusted diluted income per share(1)		$	0.48		$	0.28		$	1.61		$	2.40
Common share information:
Basic shares outstanding		240.2			238.2			239.7			237.6
Diluted shares		243.9			238.2			242.4			240.6
Diluted shares for adjusted diluted income per share		243.9			241.3			242.4			240.6

 

See end of press release for footnote explanations

 

5

 

Table 2 — Results of Operations by Segment

 

		Three months ended								Twelve months ended
		December 31,						Better /		December 31,						Better /
In millions, unaudited		2013			2012			(Worse)		2013			2012			(Worse)
Segment Revenues:
Polyurethanes		$	1,230		$	1,182		4	%	$	4,964		$	4,894		1	%
Performance Products		741			723			2	%	3,019			3,065			(2	)%
Advanced Materials		301			311			(3	)%	1,267			1,325			(4	)%
Textile Effects		209			190			10	%	811			752			8	%
Pigments		295			286			3	%	1,269			1,436			(12	)%
Eliminations and other		(71		)	(73		)	3	%	(251		)	(285		)	12	%
Total		$	2,705		$	2,619		3	%	$	11,079		$	11,187		(1	)%
Segment Adjusted EBITDA(1):
Polyurethanes		$	173		$	190		(9	)%	$	740		$	788		(6	)%
Performance Products		116			81			43	%	403			369			9	%
Advanced Materials		33			8			313	%	131			98			34	%
Textile Effects		8			1			700	%	16			(20		)	NM
Pigments		33			14			136	%	111			375			(70	)%
Corporate, LIFO and other		(50		)	(49		)	(2	)%	(188		)	(171		)	(10	)%
Total		$	313		$	245		28	%	$	1,213		$	1,439		(16	)%

 

 

6

 

Table 3 — Factors Impacting Sales Revenues

 

		Three months ended
		December 31, 2013 vs. 2012
		Average Selling Price(a)
		Local		Exchange		Sales Mix		Sales
Unaudited		Currency		Rate		& Other		Volume(b)		Total
Polyurethanes		(3	)%	1	%	3	%	3	%	4	%
Performance Products		(1	)%	—		(3	)%	6	%	2	%
Advanced Materials		5	%	—		7	%	(15	)%	(3	)%
Textile Effects		7	%	—		—		3	%	10	%
Pigments		(13	)%	1	%	—		15	%	3	%
Total Company		—		—		(2	)%	5	%	3	%

 

		Twelve months ended
		December 31, 2013 vs. 2012
		Average Selling Price(a)
		Local		Exchange		Sales Mix		Sales
Unaudited		Currency		Rate		& Other		Volume(b)		Total
Polyurethanes		(1	)%	1	%	—		1	%	1	%
Performance Products		2	%	—		(2	)%	(2	)%	(2	)%
Advanced Materials		4	%	(1	)%	3	%	(10	)%	(4	)%
Textile Effects		3	%	(1	)%	—		6	%	8	%
Pigments		(23	)%	1	%	—		10	%	(12	)%
Total Company		(2	)%	—		—		1	%	(1	)%

 

(a) Excludes sales from tolling arrangements, by-products and raw materials.

(b) Excludes sales volumes of by-products and raw materials.

 

7

 

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

 

								Income Tax						Net Income (loss)						Diluted Income
		EBITDA						Expense						Attrib. to HUN Corp.						Per Share
		Three months ended						Three months ended						Three months ended						Three months ended
		December 31,						December 31,						December 31,						December 31,
In millions, except per share amounts, unaudited		2013			2012			2013			2012			2013			2012			2013			2012
GAAP(1)		$	225		$	104		$	(20	)	$	17		$	41		$	(40	)	$	0.17		$	(0.17	)
Adjustments:
Acquisition expenses and purchase accounting inventory adjustments		7			3			(3		)	(1		)	4			2			0.02			0.01
Loss from discontinued operations, net of tax(2)		2			1			N/A			N/A			1			—			—			—
Discount amortization on settlement financing associated with the terminated merger		N/A			N/A			(1		)	(3		)	1			5			—			0.02
Gain on disposition of businesses/assets		—			(3		)	—			—			—			(3		)	—			(0.01		)
Loss on early extinguishment of debt		16			78			(6		)	(28		)	10			50			0.04			0.21
Extraordinary gain on the acquisition of a business, net of tax		—			(1		)	N/A			N/A			—			(1		)	—			—
Certain legal settlements and related expenses		1			6			—			(2		)	1			4			—			0.02
Amortization of pension and postretirement actuarial losses		18			12			(7		)	(2		)	11			10			0.05			0.04
Restructuring, impairment and plant closing and transition costs		44			45			5			(4		)	49			41			0.20			0.17
Adjusted(1)		$	313		$	245		$	(32	)	$	(23	)	$	118		$	68		$	0.48		$	0.28
Adjusted income tax expense														32			23
Net income attributable to noncontrolling interests, net of tax														1			2
Adjusted pre-tax income(1)														$	151		$	93
Adjusted effective tax rate														21		%	25		%

 

					Income Tax			Net Income			Diluted Income
		EBITDA			Expense			Attrib. to HUN Corp.			Per Share
		Three months ended			Three months ended			Three months ended			Three months ended
		September 30,			September 30,			September 30,			September 30,
In millions, except per share amounts, unaudited		2013			2013			2013			2013
GAAP(1)		$	303		$	(81	)	$	64		$	0.26
Adjustments:
Acquisition expenses and purchase accounting inventory adjustments		9			(1		)	8			0.03
Loss from discontinued operations, net of tax(2)		2			N/A			2			0.01
Discount amortization on settlement financing associated with the terminated merger		N/A			—			2			0.01
Amortization of pension and postretirement actuarial losses		19			(2		)	17			0.07
Restructuring, impairment and plant closing and transition costs		43			(4		)	39			0.16
Adjusted(1)		$	376		$	(88	)	$	132		$	0.54
Adjusted income tax expense								88
Net income attributable to noncontrolling interests, net of tax								6
Adjusted pre-tax income(1)								$	226
Adjusted effective tax rate								39		%

 

								Income Tax						Net Income						Diluted Income
		EBITDA						Expense						Attrib. to HUN Corp.						Per Share
		Twelve months ended						Twelve months ended						Twelve months ended						Twelve months ended
		December 31,						December 31,						December 31,						December 31,
In millions, except per share amounts, unaudited		2013			2012			2013			2012			2013			2012			2013			2012
GAAP(1)		$	889		$	1,187		$	(125	)	$	(169	)	$	128		$	363		$	0.53		$	1.51
Adjustments:
Acquisition expenses and purchase accounting inventory adjustments		21			5			(5		)	(1		)	16			4			0.07			0.02
Loss on initial consolidation of subsidiaries		—			4			—			—			—			4			—			0.02
Loss from discontinued operations, net of tax(2)		5			5			N/A			N/A			5			7			0.02			0.03
Discount amortization on settlement financing associated with the terminated merger		N/A			N/A			(3		)	(11		)	6			20			0.02			0.08
Gain on disposition of businesses/assets		—			(3		)	—			—			—			(3		)	—			(0.01		)
Loss on early extinguishment of debt		51			80			(19		)	(29		)	32			51			0.13			0.21
Extraordinary gain on the acquisition of a business, net of tax		—			(2		)	N/A			N/A			—			(2		)	—			(0.01		)
Certain legal settlements and related expenses		9			11			(2		)	(4		)	7			7			0.03			0.03
Amortization of pension and postretirement actuarial losses		74			43			(20		)	(8		)	54			35			0.22			0.15
Restructuring, impairment and plant closing and transition costs		164			109			(22		)	(18		)	142			91			0.59			0.38
Adjusted(1)		$	1,213		$	1,439		$	(196	)	$	(240	)	$	390		$	577		$	1.61		$	2.40
Adjusted income tax expense														196			240
Net income attributable to noncontrolling interests, net of tax														21			10
Adjusted pre-tax income(1)														$	607		$	827
Adjusted effective tax rate														32		%	29		%

 

See end of press release for footnote explanations

 

8