Exhibit 99.1

 

 

FOR IMMEDIATE RELEASE

 

Investor Relations:

Media:

July 30, 2014

 

Kurt Ogden

Gary Chapman

The Woodlands, TX

 

(801) 584-5959

(281) 719-4324

NYSE: HUN

 

 

 

 

HUNTSMAN RELEASES SECOND QUARTER 2014 RESULTS;

SEES MEANINGFUL IMPROVEMENTS ACROSS ITS BUSINESS AS
ADJUSTED EBITDA INCREASES 19% COMPARED TO PRIOR YEAR

 

Second Quarter 2014 Highlights

 

·                  Adjusted EBITDA was $363 million compared to $304 million in the prior year period, an improvement of 19%.

 

·                  Adjusted diluted income per share was $0.59 compared to $0.39 in the prior year period.

 

·                  Net income attributable to Huntsman Corporation was $119 million compared to $47 million in the prior year period.

 

 

 

Three months ended

 

Six months ended

 

 

 

June 30,

 

March 31,

 

June 30,

 

In millions, except per share amounts, unaudited

 

2014

 

2013

 

2014

 

2014

 

2013

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenues

 

$

2,988

 

$

2,830

 

$

2,755

 

$

5,743

 

$

5,532

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income attributable to Huntsman Corporation

 

$

119

 

$

47

 

$

54

 

$

173

 

$

23

 

Adjusted net income(1)

 

$

145

 

$

94

 

$

105

 

$

250

 

$

140

 

 

 

 

 

 

 

 

 

 

 

 

 

Diluted income per share

 

$

0.48

 

$

0.19

 

$

0.22

 

$

0.71

 

$

0.10

 

Adjusted diluted income per share(1)

 

$

0.59

 

$

0.39

 

$

0.43

 

$

1.02

 

$

0.58

 

 

 

 

 

 

 

 

 

 

 

 

 

EBITDA(1)

 

$

327

 

$

249

 

$

261

 

$

588

 

$

361

 

Adjusted EBITDA(1)

 

$

363

 

$

304

 

$

329

 

$

692

 

$

524

 

 

See end of press release for footnote explanations

 



 

The Woodlands, TX — Huntsman Corporation (NYSE: HUN) today reported second quarter 2014 results with revenues of $2,988 million and adjusted EBITDA of $363 million.

 

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

 

“We saw strong earnings in the second quarter as a result of increased demand for key products such as MDI and amines and higher selling prices for many of our products. We also benefited from restructuring efforts in our Advanced Materials and Textile Effects businesses. These results are well in line with our earlier forecast of substantial earnings growth in the next two to three years.

 

We are working closely with the European Commission in its review of the proposed acquisition of Rockwood Holding’s Performance Additives and Titanium Dioxide businesses. We have proposed certain remedies we believe address the Commission’s concerns and are confident that final approval will be secured by the end of the third quarter.”

 

Segment Analysis for 2Q14 Compared to 2Q13

 

Polyurethanes

 

The increase in revenues in our Polyurethanes division for the three months ended June 30, 2014 compared to the same period in 2013 was primarily due to higher sales volumes.  MDI sales volumes increased 7% as a result of improved demand in all regions and across most major markets.  PO/MTBE sales volumes decreased as a result of a manufacturing disruption at our Port Neches, Texas facility which resulted in lower EBITDA of approximately $10 million.  MDI average selling prices increased in the Americas and European regions, offset by lower component pricing in China.  PO/MTBE average selling prices increased primarily due to favorable market conditions.  The increase in adjusted EBITDA was due to higher MDI sales volumes and contribution margins.

 

Performance Products

 

The increase in revenues in our Performance Products division for the three months ended June 30, 2014 compared to the same period in 2013 was due to higher average selling prices, partially offset by lower sales volumes. Average selling prices increased in response to higher raw materials costs and strong market conditions for amines, maleic anhydride and specialty surfactants.  Sales volumes decreased primarily due to the impact of scheduled maintenance, partially offset by increased sales volumes in amines and maleic anhydride.  The increase in adjusted EBITDA was primarily due to higher contribution margins.

Advanced Materials

 

The increase in revenues in our Advanced Materials division for the three months ended June 30, 2014 compared to the same period in 2013 was primarily due to higher average selling prices and favorable sales mix, partially offset by lower sales volumes.  Average selling prices increased in all regions and across most markets primarily due to certain price increase initiatives and higher value sales markets.  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 markets such as aerospace, transportation and industrial and coatings and construction.  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 June 30, 2014 compared to the same period in 2013 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.  Sales volumes decreased primarily due to the de-selection of lower value business.  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.

 

Pigments

 

The increase in revenues in our Pigments division for the three months ended June 30, 2014 compared to the same period in 2013 was primarily due to higher sales volumes, partially offset by lower average selling prices.  Sales volumes increased primarily as a result of higher end-use demand, particularly in Europe.  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 (notably, average selling prices were flat compared to the first quarter).  The decrease in adjusted EBITDA was primarily due to lower contribution margins, partially offset by higher sales volumes.

 

Corporate, LIFO and Other

 

Adjusted EBITDA from Corporate, LIFO and Other improved by $2 million to a loss of $47 million for the three months ended June 30, 2014 compared to a loss of $49 million for the same period in 2013.

 

Liquidity, Capital Resources and Outstanding Debt

 

As of June 30, 2014 we had $1,072 million of combined cash and unused borrowing capacity compared to $1,048 million at December 31, 2013.

 

In June 2014, we issued an additional €145 million (approximately $197 million) of 5.125% Senior Notes due 2021.  The notes were issued at a premium to yield 4.57%.  Net proceeds were used for general corporate purposes.

 

Total capital expenditures for the quarter ended June 30, 2014 were $107 million.  We expect to spend approximately $500 million on capital expenditures in 2014, net of reimbursements and 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 June 30, 2014 we recorded income tax expense of $43 million and paid $97 million in cash for income taxes.  Our adjusted effective income tax rate for the three months ended June 30, 2014 was 25%.  The low tax rate was a result of the release of tax valuation allowances in part due to the restructuring of our European surfactants business.

 

We expect our full year 2014 adjusted effective tax rate to be in the low thirties excluding the impact of the planned 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%.

 

3



 

Earnings Conference Call Information

 

We will hold a conference call to discuss our second quarter 2014 financial results on Wednesday, July 30, 2014 at 11:00 a.m. ET.

 

Call-in numbers for the conference call:

U.S. participants

(888) 713 - 4218

International participants

(617) 213 - 4870

Passcode

72944602

 

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=P7ABG8KYW

 

Webcast Information

 

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

 

Replay Information

 

The conference call will be available for replay beginning July 30, 2014 and ending August 6, 2014.

 

Call-in numbers for the replay:

U.S. participants

(888) 286 - 8010

International participants

(617) 801 - 6888

Replay code

93930078

 

4



 

Table 1 — Results of Operations

 

 

 

Three months ended

 

Six months ended

 

 

 

June 30,

 

June 30,

 

In millions, except per share amounts, unaudited

 

2014

 

2013

 

2014

 

2013

 

 

 

 

 

 

 

 

 

 

 

Revenues

 

$

2,988

 

$

2,830

 

$

5,743

 

$

5,532

 

Cost of goods sold

 

2,483

 

2,379

 

4,788

 

4,732

 

Gross profit

 

505

 

451

 

955

 

800

 

Operating expenses

 

276

 

281

 

537

 

536

 

Restructuring, impairment and plant closing costs

 

13

 

29

 

52

 

73

 

Operating income

 

216

 

141

 

366

 

191

 

Interest expense

 

(51

)

(47

)

(99

)

(98

)

Equity in income of investment in unconsolidated affiliates

 

2

 

2

 

4

 

3

 

Loss on early extinguishment of debt

 

 

 

 

(35

)

Other income

 

 

2

 

1

 

2

 

Income before income taxes

 

167

 

98

 

272

 

63

 

Income tax expense

 

(43

)

(44

)

(79

)

(24

)

Income from continuing operations

 

124

 

54

 

193

 

39

 

Loss from discontinued operations, net of tax(2)

 

 

 

(7

)

(2

)

Net income

 

124

 

54

 

186

 

37

 

Net income attributable to noncontrolling interests, net of tax

 

(5

)

(7

)

(13

)

(14

)

Net income attributable to Huntsman Corporation

 

$

119

 

$

47

 

$

173

 

$

23

 

 

 

 

 

 

 

 

 

 

 

Adjusted EBITDA(1)

 

$

363

 

$

304

 

$

692

 

$

524

 

 

 

 

 

 

 

 

 

 

 

Adjusted net income(1)

 

$

145

 

$

94

 

$

250

 

$

140

 

 

 

 

 

 

 

 

 

 

 

Basic income per share

 

$

0.49

 

$

0.20

 

$

0.72

 

$

0.10

 

Diluted income per share

 

$

0.48

 

$

0.19

 

$

0.71

 

$

0.10

 

Adjusted diluted income per share(1)

 

$

0.59

 

$

0.39

 

$

1.02

 

$

0.58

 

 

 

 

 

 

 

 

 

 

 

Common share information:

 

 

 

 

 

 

 

 

 

Basic shares outstanding

 

241.8

 

239.7

 

241.3

 

239.4

 

Diluted shares

 

245.7

 

242.2

 

245.0

 

242.0

 

Diluted shares for adjusted diluted income per share

 

245.7

 

242.2

 

245.0

 

242.0

 

 

See end of press release for footnote explanations

 

5



 

Table 2 — Results of Operations by Segment

 

 

 

Three months ended

 

 

 

Six months ended

 

 

 

 

 

June 30,

 

Better /

 

June 30,

 

Better /

 

In millions, unaudited

 

2014

 

2013

 

(Worse)

 

2014

 

2013

 

(Worse)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Segment Revenues:

 

 

 

 

 

 

 

 

 

 

 

 

 

Polyurethanes

 

$

1,310

 

$

1,246

 

5

%

$

2,510

 

$

2,428

 

3

%

Performance Products

 

833

 

777

 

7

%

1,598

 

1,499

 

7

%

Advanced Materials

 

324

 

321

 

1

%

643

 

657

 

(2

)%

Textile Effects

 

248

 

216

 

15

%

472

 

404

 

17

%

Pigments

 

340

 

334

 

2

%

658

 

664

 

(1

)%

Eliminations and other

 

(67)

 

(64

)

(5

)%

(138

)

(120

)

(15

)%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total

 

$

2,988

 

$

2,830

 

6

%

$

5,743

 

$

5,532

 

4

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Segment Adjusted EBITDA(1):

 

 

 

 

 

 

 

 

 

 

 

 

 

Polyurethanes

 

$

197

 

$

174

 

13

%

$

364

 

$

352

 

3

%

Performance Products

 

115

 

111

 

4

%

233

 

165

 

41

%

Advanced Materials

 

53

 

32

 

66

%

99

 

59

 

68

%

Textile Effects

 

22

 

3

 

633

%

38

 

 

NM

 

Pigments

 

23

 

33

 

(30

)%

49

 

42

 

17

%

Corporate, LIFO and other

 

(47)

 

(49

)

4

%

(91

)

(94

)

3

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total

 

$

363

 

$

304

 

19

%

$

692

 

$

524

 

32

%

 

See end of press release for footnote explanations

NM—Not meaningful

 

6



 

Table 3 — Factors Impacting Sales Revenues

 

 

 

Three months ended

 

 

 

June 30, 2014 vs. 2013

 

 

 

Average Selling Price(a)

 

 

 

 

 

 

 

 

 

Local

 

Exchange

 

Sales Mix

 

Sales

 

 

 

Unaudited

 

Currency

 

Rate

 

& Other

 

Volume(b)

 

Total

 

 

 

 

 

 

 

 

 

 

 

 

 

Polyurethanes

 

 

1

%

1

%

3

%

5

%

Performance Products

 

4

%

1

%

3

%

(1

)%

7

%

Advanced Materials

 

3

%

1

%

8

%

(11

)%

1

%

Textile Effects

 

19

%

 

1

%

(5

)%

15

%

Pigments

 

(4

)%

3

%

 

3

%

2

%

Total Company

 

3

%

1

%

 

2

%

6

%

 

 

 

Six months ended

 

 

 

June 30, 2014 vs. 2013

 

 

 

Average Selling Price(a)

 

 

 

 

 

 

 

 

 

Local

 

Exchange

 

Sales Mix

 

Sales

 

 

 

Unaudited

 

Currency

 

Rate

 

& Other

 

Volume(b)

 

Total

 

 

 

 

 

 

 

 

 

 

 

 

 

Polyurethanes

 

(1

)%

 

 

4

%

3

%

Performance Products

 

4

%

 

(3

)%

6

%

7

%

Advanced Materials

 

5

%

 

7

%

(14

)%

(2

)%

Textile Effects

 

17

%

(1

)%

2

%

(1

)%

17

%

Pigments

 

(5

)%

2

%

1

%

1

%

(1

)%

Total Company

 

1

%

 

(2

)%

5

%

4

%

 


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

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

 

7



 

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

 

 

 

 

 

 

 

Income Tax

 

Net Income

 

Diluted Income

 

 

 

EBITDA

 

(Expense) Benefit

 

Attrib. to HUN Corp.

 

Per Share

 

 

 

Three months ended

 

Three months ended

 

Three months ended

 

Three months ended

 

 

 

June 30,

 

June 30,

 

June 30,

 

June 30,

 

In millions, except per share amounts, unaudited

 

2014

 

2013

 

2014

 

2013

 

2014

 

2013

 

2014

 

2013

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

GAAP(1)

 

$

327

 

$

249

 

$

(43

)

$

(44

)

$

119

 

$

47

 

$

0.48

 

$

0.19

 

Adjustments:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Acquisition expenses and integration costs

 

9

 

2

 

(2

)

 

7

 

2

 

0.03

 

0.01

 

Loss (income) from discontinued operations, net of tax(2)

 

2

 

(2

)

N/A

 

N/A

 

 

 

 

 

Discount amortization on settlement financing associated with the terminated merger

 

N/A

 

N/A

 

 

(1

)

 

1

 

 

 

Gain on disposition of businesses/assets

 

(2

)

 

1

 

 

(1

)

 

 

 

Certain legal settlements and related expenses

 

2

 

6

 

 

(1

)

2

 

5

 

0.01

 

0.02

 

Amortization of pension and postretirement actuarial losses

 

12

 

18

 

(4

)

(4

)

8

 

14

 

0.03

 

0.06

 

Restructuring, impairment and plant closing and transition costs

 

13

 

31

 

(3

)

(6

)

10

 

25

 

0.04

 

0.10

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Adjusted(1)

 

$

363

 

$

304

 

$

(51

)

$

(56

)

$

145

 

$

94

 

$

0.59

 

$

0.39

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Adjusted income tax expense

 

 

 

 

 

 

 

 

 

51

 

56

 

 

 

 

 

Net income attributable to noncontrolling interests, net of tax

 

 

 

 

 

 

 

 

 

5

 

7

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Adjusted pre-tax income(1)

 

 

 

 

 

 

 

 

 

$

201

 

$

157

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Adjusted effective tax rate

 

 

 

 

 

 

 

 

 

25

%

36

%

 

 

 

 

 

 

 

 

 

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

 

 

 

March 31,

 

March 31,

 

March 31,

 

March 31,

 

In millions, except per share amounts, unaudited

 

2014

 

2014

 

2014

 

2014

 

 

 

 

 

 

 

 

 

 

 

GAAP(1)

 

$

261

 

$

(36

)

$

54

 

$

0.22

 

Adjustments:

 

 

 

 

 

 

 

 

 

Acquisition expenses and integration costs

 

8

 

(2

)

6

 

0.02

 

Loss from discontinued operations, net of tax(2)

 

7

 

N/A

 

7

 

0.03

 

Amortization of pension and postretirement actuarial losses

 

13

 

(4

)

9

 

0.04

 

Restructuring, impairment and plant closing and transition costs

 

40

 

(11

)

29

 

0.12

 

 

 

 

 

 

 

 

 

 

 

Adjusted(1)

 

$

329

 

$

(53

)

$

105

 

$

0.43

 

 

 

 

 

 

 

 

 

 

 

Adjusted income tax expense

 

 

 

 

 

53

 

 

 

Net income attributable to noncontrolling interests, net of tax

 

 

 

 

 

8

 

 

 

 

 

 

 

 

 

 

 

 

 

Adjusted pre-tax income(1)

 

 

 

 

 

$

166

 

 

 

 

 

 

 

 

 

 

 

 

 

Adjusted effective tax rate

 

 

 

 

 

32

%

 

 

 

 

 

 

 

 

 

Income Tax

 

Net Income

 

Diluted Income

 

 

 

EBITDA

 

(Expense) Benefit

 

Attrib. to HUN Corp.

 

Per Share

 

 

 

Six months ended

 

Six months ended

 

Six months ended

 

Six months ended

 

 

 

June 30,

 

June 30,

 

June 30,

 

June 30,

 

In millions, except per share amounts, unaudited

 

2014

 

2013

 

2014

 

2013

 

2014

 

2013

 

2014

 

2013

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

GAAP(1)

 

$

588

 

$

361

 

$

(79

)

$

(24

)

$

173

 

$

23

 

$

0.71

 

$

0.10

 

Adjustments:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Acquisition expenses and integration costs

 

17

 

5

 

(4

)

(1

)

13

 

4

 

0.05

 

0.02

 

Loss from discontinued operations, net of tax(2)

 

9

 

1

 

N/A

 

N/A

 

7

 

2

 

0.03

 

0.01

 

Discount amortization on settlement financing associated with the terminated merger

 

N/A

 

N/A

 

 

(2

)

 

3

 

 

0.01

 

Gain on disposition of businesses/assets

 

(2

)

 

1

 

 

(1

)

 

 

 

Loss on early extinguishment of debt

 

 

35

 

 

(13

)

 

22

 

 

0.09

 

Certain legal settlements and related expenses

 

2

 

8

 

 

(2

)

2

 

6

 

0.01

 

0.02

 

Amortization of pension and postretirement actuarial losses

 

25

 

37

 

(8

)

(11

)

17

 

26

 

0.07

 

0.11

 

Restructuring, impairment and plant closing and transition costs

 

53

 

77

 

(14

)

(23

)

39

 

54

 

0.16

 

0.22

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Adjusted(1)

 

$

692

 

$

524

 

$

(104

)

$

(76

)

$

250

 

$

140

 

$

1.02

 

$

0.58

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Adjusted income tax expense

 

 

 

 

 

 

 

 

 

104

 

76

 

 

 

 

 

Net income attributable to noncontrolling interests, net of tax

 

 

 

 

 

 

 

 

 

13

 

14

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Adjusted pre-tax income(1)

 

 

 

 

 

 

 

 

 

$

367

 

$

230

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Adjusted effective tax rate

 

 

 

 

 

 

 

 

 

28

%

33

%

 

 

 

 

 

See end of press release for footnote explanations

 

8



 

Table 5 — Reconciliation of Net Income to EBITDA

 

 

 

Three months ended

 

Six months ended

 

 

 

June 30,

 

March 31,

 

June 30,

 

In millions, unaudited

 

2014

 

2013

 

2014

 

2014

 

2013

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income attributable to Huntsman Corporation

 

$

119

 

$

47

 

$

54

 

$

173

 

$

23

 

Interest expense

 

51

 

47

 

48

 

99

 

98

 

Income tax expense from continuing operations

 

43

 

44

 

36

 

79

 

24

 

Income tax (benefit) expense from discontinued operations(2)

 

(2

)

2

 

 

(2

)

 

Depreciation and amortization

 

116

 

109

 

123

 

239

 

216

 

 

 

 

 

 

 

 

 

 

 

 

 

EBITDA(1)

 

$

327

 

$

249

 

$

261

 

$

588

 

$

361

 

 

See end of press release for footnote explanations

 

Table 6 — Selected Balance Sheet Items

 

 

 

June 30,

 

March 31,

 

December 31,

 

In millions

 

2014

 

2014

 

2013

 

 

 

(unaudited)

 

(unaudited)

 

 

 

 

 

 

 

 

 

 

 

Cash

 

$

412

 

$

286

 

$

529

 

Accounts and notes receivable, net

 

1,870

 

1,724

 

1,575

 

Inventories

 

1,847

 

1,911

 

1,741

 

Other current assets

 

319

 

307

 

314

 

Property, plant and equipment, net

 

3,776

 

3,794

 

3,824

 

Other assets

 

1,218

 

1,205

 

1,205

 

 

 

 

 

 

 

 

 

Total assets

 

$

9,442

 

$

9,227

 

$

9,188

 

 

 

 

 

 

 

 

 

Accounts payable

 

$

1,162

 

$

1,185

 

$

1,113

 

Other current liabilities

 

725

 

760

 

769

 

Current portion of debt

 

257

 

270

 

277

 

Long-term debt

 

3,809

 

3,621

 

3,633

 

Other liabilities

 

1,181

 

1,214

 

1,267

 

Total equity

 

2,308

 

2,177

 

2,129

 

 

 

 

 

 

 

 

 

Total liabilities and equity

 

$

9,442

 

$

9,227

 

$

9,188

 

 

9



 

Table 7 — Outstanding Debt

 

 

 

June 30,

 

March 31,

 

December 31,

 

In millions

 

2014

 

2014

 

2013

 

 

 

(unaudited)

 

(unaudited)

 

 

 

 

 

 

 

 

 

 

 

Debt:

 

 

 

 

 

 

 

Senior credit facilities

 

$

1,339

 

$

1,338

 

$

1,351

 

Accounts receivable programs

 

245

 

247

 

248

 

Senior notes

 

1,258

 

1,060

 

1,061

 

Senior subordinated notes

 

890

 

891

 

891

 

Variable interest entities

 

231

 

238

 

247

 

Other debt

 

103

 

117

 

112

 

 

 

 

 

 

 

 

 

Total debt - excluding affiliates

 

4,066

 

3,891

 

3,910

 

 

 

 

 

 

 

 

 

Total cash

 

412

 

286

 

529

 

 

 

 

 

 

 

 

 

Net debt- excluding affiliates

 

$

3,654

 

$

3,605

 

$

3,381

 

 

 

Table 8 — Summarized Statement of Cash Flows

 

 

 

Three months ended

 

Six months ended

 

 

 

June 30,

 

June 30,

 

In millions, unaudited

 

2014

 

2014

 

2013

 

 

 

 

 

 

 

 

 

Total cash at beginning of period(a)

 

$

286

 

$

529

 

$

396

 

 

 

 

 

 

 

 

 

Net cash provided by (used in) operating activities

 

50

 

(17

)

(2

)

Net cash used in investing activities

 

(98

)

(202

)

(182

)

Net cash provided by (used in) financing activities

 

174

 

103

 

(27

)

Effect of exchange rate changes on cash

 

 

(1

)

(4

)

 

 

 

 

 

 

 

 

Total cash at end of period(a)

 

$

412

 

$

412

 

$

181

 

 

 

 

 

 

 

 

 

Supplemental cash flow information:

 

 

 

 

 

 

 

Cash paid for interest

 

$

(37

)

$

(91

)

$

(95

)

Cash paid for income taxes

 

(97

)

(143

)

(46

)

Cash paid for capital expenditures

 

(107

)

(214

)

(181

)

Depreciation and amortization

 

116

 

239

 

216

 

 

 

 

 

 

 

 

 

Changes in primary working capital:

 

 

 

 

 

 

 

Accounts and notes receivable

 

(151

)

(300

)

(186

)

Inventories

 

63

 

(109

)

79

 

Accounts payable

 

(13

)

94

 

(60

)

 

 

 

 

 

 

 

 

Total cash used in primary working capital

 

$

(101

)

$

(315

)

$

(167

)

 


(a) Includes restricted cash.

 

10



 

Footnotes

 

(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 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.  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 Table 5 above.

 

Adjusted EBITDA is computed by eliminating the following from EBITDA:  acquisition expenses and integration costs; loss (gain) on initial consolidation of subsidiaries; EBITDA from discontinued operations; loss (gain) on disposition of businesses/assets; loss on early extinguishment of debt; extraordinary loss (gain) on the acquisition of a business; certain legal settlements and related expenses; amortization of pension and postretirement actuarial losses (gains); and restructuring, impairment, plant closing and transition costs (credits).  The reconciliation of adjusted EBITDA to EBITDA is set forth in Table 4 above.

 

Adjusted net income (loss) is computed by eliminating the after tax impact of the following items from net income (loss) attributable to Huntsman Corporation: acquisition expenses and integration costs; loss (gain) on initial consolidation of subsidiaries; loss (income) from discontinued operations; discount amortization on settlement financing associated with the terminated merger; loss (gain) on disposition of businesses/assets; loss on early extinguishment of debt; extraordinary loss (gain) on the acquisition of a business; certain legal settlements and related expenses; amortization of pension and postretirement actuarial losses (gains); and restructuring, impairment, plant closing and transition costs (credits).   We do not adjust for changes in tax valuation allowances because we do not believe it provides more meaningful information than is provided under GAAP.  The reconciliation of adjusted net income (loss) to net income (loss) attributable to Huntsman Corporation common stockholders is set forth in Table 4 above.

 

(2)   During the first quarter 2010 we closed our Australian styrenics operations; results from this business are treated as discontinued operations.

 

About Huntsman:

 

Huntsman Corporation is a publicly traded global manufacturer and marketer of differentiated chemicals with 2013 revenues of over $11 billion. Our chemical products number in the thousands and are sold worldwide to manufacturers serving a broad and diverse range of consumer and industrial end markets.  We operate more than 80 manufacturing and R&D facilities in 30 countries and employ approximately 12,000 associates within our 5 distinct business divisions.  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.

 

11