Exhibit 99.1

 

FOR IMMEDIATE RELEASE	Investor Relations:	Media:
February 18, 2015	Kurt Ogden	Gary Chapman
The Woodlands, TX	(801) 584-5959	(281) 719-4324
NYSE: HUN

 

HUNTSMAN RELEASES FOURTH QUARTER AND FULL YEAR 2014 RESULTS;

FULL YEAR ADJUSTED EARNINGS PER SHARE GROWS 20%

 

Fourth Quarter 2014 Highlights

 

·                  Adjusted EBITDA was $292 million compared to $313 million in the prior year period.  Pro forma for the Rockwood acquisition our adjusted EBITDA was $300 million compared to $341 in the prior year period.  The decrease was primarily attributable to lower earnings in our Pigments and Additives division.

 

·                  Adjusted diluted income per share was $0.33 compared to $0.48 in the prior year period.

 

·                  Net loss attributable to Huntsman Corporation was $38 million compared to net income of $41 million in the prior year period.

 

·                  Approximate negative foreign currency adjusted EBITDA impact of $11 million compared to the prior year period, primarily from a stronger U.S. dollar against major European currencies.

 

Full Year 2014 Highlights

 

·                  Adjusted EBITDA was $1,340 million compared to $1,213 million in the prior year.   Pro forma for the Rockwood acquisition our adjusted EBITDA was $1,495 million compared to $1,323 in the prior year period.

 

·                  Adjusted diluted income per share was $1.94 compared to $1.61 in the prior year, an increase of 20%.

 

·                  Net income attributable to Huntsman Corporation was $323 million compared to $128 million in the prior year.

 

 

		Three months ended									Twelve months ended
		December 31,						September 30,			December 31,
In millions, except per share amounts, unaudited		2014			2013			2014			2014			2013
Revenues		$	2,951		$	2,705		$	2,884		$	11,578		$	11,079
Pro forma revenues(2)		$	2,937		$	3,052		$	3,258		$	12,723		$	12,598
Net (loss) income attributable to Huntsman Corporation		$	(38	)	$	41		$	188		$	323		$	128
Adjusted net income(1)		$	81		$	118		$	147		$	478		$	390
Diluted (loss) income per share		$	(0.16	)	$	0.17		$	0.76		$	1.31		$	0.53
Adjusted diluted income per share(1)		$	0.33		$	0.48		$	0.60		$	1.94		$	1.61
EBITDA(1)		$	141		$	225		$	293		$	1,022		$	889
Adjusted EBITDA(1)		$	292		$	313		$	356		$	1,340		$	1,213
Pro forma adjusted EBITDA(2)		$	300		$	341		$	396		$	1,495		$	1,323

 

See end of press release for footnote explanations

 

The Woodlands, TX — Huntsman Corporation (NYSE: HUN) today reported fourth quarter 2014 results with revenues of $2,951 million and adjusted EBITDA of $292 million.

 

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

 

“2014 was a remarkable year for us; our differentiated businesses that include our MDI urethanes, Performance Products, Advanced Materials and Textile Effects collectively increased their adjusted EBITDA by more than $200 million.  I am encouraged by the attractive growth profile of these businesses and expect them to perform even better in 2015.

 

We have a number of initiatives underway that will improve the competitiveness and strength of our entire company.  We are investing in growth projects that we expect will add more than $200 million of annual EBITDA over the next few years.  We are aggressively taking action to deliver $130 million of synergies as we integrate the businesses we purchased from Rockwood this past October.  In addition, we recently took action to rationalize our European titanium dioxide capacity with expected EBITDA benefits of approximately $35 million.

 

Notwithstanding near term headwinds and shocks to the business landscape such as meaningful movements in foreign currency rates and lower priced oil, I believe we are well positioned to deliver increased earnings, an improvement in free cash flow and increased shareholder value over the next several years.”

 

Segment Analysis for 4Q14 Compared to 4Q13

 

Polyurethanes

 

The decrease in revenues in our Polyurethanes division for the three months ended December 31, 2014 compared to the same period in 2013 was primarily due to lower PO/MTBE average selling prices and the impact of a stronger U.S. dollar against major European currencies, partially offset by higher MDI local currency average selling prices and increased MDI sales volumes.  PO/MTBE average selling prices decreased following lower pricing for high octane gasoline.  MDI average selling prices increased in the Americas and Europe, partially offset by lower component pricing in China.  MDI sales volumes grew in the Americas and Asia and were essentially flat in Europe.  Adjusted EBITDA was essentially flat as higher MDI margins offset most of the $7 million negative impact from the stronger U.S. dollar against major European currencies.

 

2

 

Performance Products

 

The decrease in revenues in our Performance Products division for the three months ended December 31, 2014 compared to the same period in 2013 was due to lower sales volumes, partially offset by higher average selling prices.  Sales volumes decreased primarily due to the sale of our European surfactants business in the second quarter of 2014, partially offset by increased sales volumes in amines and maleic anhydride.  Average selling prices increased in response to higher raw materials costs and continued strong market conditions for amines, maleic anhydride and specialty surfactants, partially offset by the impact of a stronger U.S. dollar against major European currencies.  The decrease in adjusted EBITDA was primarily due to lower sales volumes and $5 million of inventory revaluation costs as a result of our successful efforts to reduce our investment in inventory.

 

Advanced Materials

 

The decrease in revenues in our Advanced Materials division for the three months ended December 31, 2014 compared to the same period in 2013 was due to lower sales volumes, partially offset by higher average selling prices and improved sales mix.  Sales volumes decreased primarily due to the de-selection of certain business and our restructuring efforts.  Average selling prices increased in all regions on a local currency basis and across most markets primarily due to certain price increase initiatives and our focus on higher value markets, partially offset by the impact of a stronger U.S. dollar against major European currencies.  The increase in adjusted EBITDA was primarily due to higher contribution margins from our focus on higher value business and lower fixed costs.

 

Textile Effects

 

The decrease in revenues in our Textile Effects division for the three months ended December 31, 2014 compared to the same period in 2013 was primarily due to lower sales volumes, partially offset by higher average selling prices.  Sales volumes decreased primarily due to the de-selection of lower value business and destocking within the fibers and dyes supply chain.  Average selling prices increased primarily in response to higher raw material costs.  The decrease in adjusted EBITDA was primarily due to $12 million of inventory revaluation costs as a result of our successful efforts to reduce our investment in inventory and higher raw material costs.

 

Pigments and Additives

 

Pro forma for the acquisition of Rockwood Performance Additives and Titanium Dioxide businesses, revenues decreased in our Pigments and Additives division for the three months ended December 31, 2014 compared to the same period in 2013 due to lower sales volumes and lower average selling prices.  Sales volumes decreased primarily as a result of lower end use demand in Europe which is our largest market.  Average selling prices decreased primarily as a result of high titanium dioxide industry inventory levels and the impact of a stronger U.S. dollar against major European currencies.  The decrease in pro forma adjusted EBITDA was primarily due to lower contribution margins for titanium dioxide, whereas the combined adjusted EBITDA for additives was essentially flat.

 

Corporate, LIFO and Other

 

Adjusted EBITDA from Corporate, LIFO and Other increased by $2 million to a loss of $48 million for the three months ended December 31, 2014 compared to a loss of $50 million for the same period in 2013.

 

3

 

Liquidity, Capital Resources and Outstanding Debt

 

As of December 31, 2014, we had $1,601 million of combined cash and unused borrowing capacity compared to $1,048 million at December 31, 2013.

 

In November 2014, we issued $400 million of 5.125% senior notes due 2022.  We used the proceeds to redeem all of our outstanding 8.625% senior subordinated notes due 2020, pay associated accrued interest and for general corporate purposes.  We expect to save approximately $12 million in annual interest expense as a result of this refinancing.

 

On October 1, 2014, we successfully completed the acquisition of the Performance Additives and Titanium Dioxide businesses of Rockwood for $1.04 billion in cash and subject to certain purchase price adjustments.  The acquisition was funded by a new $1.2 billion term loan due 2021.

 

Total capital expenditures for the three months ended December 31, 2014 were $250 million and for the year ended December 31, 2014 were $601 million.  We expect to spend approximately $525 million on base capital expenditures in 2015, net of reimbursements.  In addition, in 2015 we expect to spend approximately $100 million combined on our new Chinese MDI facility, the completion of the Augusta, Georgia color pigments facility and replacement of Rockwood computer systems.

 

Now that we have completed the preliminary allocation of the purchase accounting for the Rockwood Performance Additives and Titanium Dioxide businesses, we expect our annual depreciation and amortization rate to be approximately $450 million.

 

Income Taxes

 

During the three months ended December 31, 2014 we recorded an income tax expense of $12 million and paid $9 million in cash for income taxes.  Our adjusted effective income tax rate for the three months and year ended December 31, 2014 were 34% and 30% respectively.

 

We expect our long term adjusted effective tax rate to be approximately 30%.  We expect our 2015 adjusted effective tax rate to be slightly higher as a result of reduced earnings from our Pigments and Additives division which has a meaningful concentration of business in countries (primarily in Europe) where we have tax valuation allowances which prevent us from recording a tax benefit on pre-tax losses.

 

4

 

Earnings Conference Call Information

 

We will hold a conference call to discuss our fourth quarter and full year 2014 financial results on Wednesday, February 18, 2015 at 10:00 a.m. ET.

 

Call-in numbers for the conference call:

U.S. participants	(888) 680 - 0865
International participants	(617) 213 - 4853
Passcode	13264497

 

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=PCWMPQHEM

 

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 February 18, 2015 and ending February 25, 2015.

 

Call-in numbers for the replay:

U.S. participants	(888) 286 - 8010
International participants	(617) 801 - 6888
Replay code	99851834

 

5

 

Table 1 — Results of Operations

 

		Three months ended						Twelve months ended
		December 31,						December 31,
In millions, except per share amounts, unaudited		2014			2013			2014			2013
Revenues		$	2,951		$	2,705		$	11,578		$	11,079
Cost of goods sold		2,502			2,259			9,659			9,326
Gross profit		449			446			1,919			1,753
Operating expenses		317			284			1,128			1,092
Restructuring, impairment and plant closing costs		67			41			158			151
Operating income		65			121			633			510
Interest expense		(57		)	(44		)	(205		)	(190		)
Equity in income of investment in unconsolidated affiliates		—			2			6			8
Loss on early extinguishment of debt		(28		)	(16		)	(28		)	(51		)
Other (expense) income		(2		)	—			(2		)	2
(Loss) income before income taxes		(22		)	63			404			279
Income tax expense		(12		)	(20		)	(51		)	(125		)
(Loss) income from continuing operations		(34		)	43			353			154
Loss from discontinued operations, net of tax(3)		(1		)	(1		)	(8		)	(5		)
Net (loss) income		(35		)	42			345			149
Net income attributable to noncontrolling interests, net of tax		(3		)	(1		)	(22		)	(21		)
Net (loss) income attributable to Huntsman Corporation		$	(38	)	$	41		$	323		$	128
Adjusted EBITDA(1)		$	292		$	313		$	1,340		$	1,213
Adjusted net income(1)		$	81		$	118		$	478		$	390
Basic (loss) income per share		$	(0.16	)	$	0.17		$	1.33		$	0.53
Diluted (loss) income per share		$	(0.16	)	$	0.17		$	1.31		$	0.53
Adjusted diluted income per share(1)		$	0.33		$	0.48		$	1.94		$	1.61
Common share information:
Basic shares outstanding		243.0			240.2			242.1			239.7
Diluted shares		243.0			243.9			246.0			242.4
Diluted shares for adjusted diluted income per share		246.9			243.9			246.0			242.4

 

See end of press release for footnote explanations

 

6

 

Table 2 — Results of Operations by Segment

 

		Three months ended								Twelve months ended
		December 31,						Better /		December 31,						Better /
In millions, unaudited		2014			2013			(Worse)		2014			2013			(Worse)
Segment Revenues:
Polyurethanes		$	1,201		$	1,230		(2	)%	$	5,032		$	4,964		1	%
Performance Products		712			741			(4	)%	3,072			3,019			2	%
Advanced Materials		295			301			(2	)%	1,248			1,267			(1	)%
Textile Effects		203			209			(3	)%	896			811			10	%
Pigments & Additives		573			295			94	%	1,549			1,269			22	%
Eliminations and other		(33		)	(71		)	54	%	(219		)	(251		)	13	%
Total		$	2,951		$	2,705		9	%	$	11,578		$	11,079		5	%
Segment Adjusted EBITDA(1):
Polyurethanes		$	171		$	173		(1	)%	$	722		$	740		(2	)%
Performance Products		111			116			(4	)%	473			403			17	%
Advanced Materials		43			33			30	%	199			131			52	%
Textile Effects		6			8			(25	)%	58			16			263	%
Pigments & Additives		9			33			(73	)%	76			111			(32	)%
Corporate, LIFO and other		(48		)	(50		)	4	%	(188		)	(188		)	—
Total		$	292		$	313		(7	)%	$	1,340		$	1,213		10	%

 

See end of press release for footnote explanations

 

Table 3 — Pro Forma (2) Results of Operations by Segment

 

		Three months ended								Twelve months ended
		December 31,						Better /		December 31,						Better /
In millions, unaudited, pro forma		2014			2013			(Worse)		2014			2013			(Worse)
Segment Revenues:
Polyurethanes		$	1,201		$	1,237		(3	)%	$	5,053		$	4,991		1	%
Performance Products		712			741			(4	)%	3,072			3,019			2	%
Advanced Materials		295			301			(2	)%	1,248			1,267			(1	)%
Textile Effects		203			209			(3	)%	896			811			10	%
Pigments & Additives		559			635			(12	)%	2,673			2,761			(3	)%
Eliminations and other		(33		)	(71		)	54	%	(219		)	(251		)	13	%
Pro forma total		$	2,937		$	3,052		(4	)%	$	12,723		$	12,598		1	%
Segment Adjusted EBITDA(2):
Polyurethanes		$	171		$	174		(2	)%	$	728		$	746		(2	)%
Performance Products		111			116			(4	)%	473			403			17	%
Advanced Materials		43			33			30	%	199			131			52	%
Textile Effects		6			8			(25	)%	58			16			263	%
Pigments & Additives		17			60			(72	)%	225			215			5	%
Corporate, LIFO and other		(48		)	(50		)	4	%	(188		)	(188		)	—
Pro forma total		$	300		$	341		(12	)%	$	1,495		$	1,323		13	%

 

See end of press release for footnote explanations

 

7

 

Table 4 — Factors Impacting Sales Revenues

 

		Three months ended
		December 31, 2014 vs. 2013
		Average Selling Price(a)
		Local		Exchange		Sales Mix		Sales
Unaudited		Currency		Rate		& Other(c)		Volume(b)		Total
Polyurethanes		(2	)%	(2	)%	(3	)%	5	%	(2	)%
Performance Products		4	%	(2	)%	2	%	(8	)%	(4	)%
Advanced Materials		3	%	(4	)%	4	%	(5	)%	(2	)%
Textile Effects		9	%	(3	)%	—		(9	)%	(3	)%
Pigments & Additives		1	%	(9	)%	110	%	(8	)%	94	%
Total Company		2	%	(3	)%	12	%	(2	)%	9	%

 

		Twelve months ended
		December 31, 2014 vs. 2013
		Average Selling Price(a)
		Local		Exchange		Sales Mix		Sales
Unaudited		Currency		Rate		& Other(c)		Volume(b)		Total
Polyurethanes		(2	)%	—		1	%	2	%	1	%
Performance Products		4	%	—		(1	)%	(1	)%	2	%
Advanced Materials		5	%	—		4	%	(10	)%	(1	)%
Textile Effects		15	%	(1	)%	—		(4	)%	10	%
Pigments & Additives		(6	)%	2	%	26	%	—		22	%
Total Company		2	%	—		3	%	—		5	%

 

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

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

(c)   Includes full revenue impact from the October 1, 2014 acquisition of the Performance Additives and Titanium Dioxide businessess of Rockwood Holdings, Inc.

 

8

 

Table 5 — Factors Impacting Pro Forma (2) Sales Revenues

 

		Three months ended
		December 31, 2014 vs. 2013
		Average Selling Price(a)
		Local		Exchange		Sales Mix		Sales
Unaudited, pro forma		Currency		Rate		& Other		Volume(b)		Total
Polyurethanes		(2	)%	(2	)%	(4	)%	5	%	(3	)%
Performance Products		4	%	(2	)%	2	%	(8	)%	(4	)%
Advanced Materials		3	%	(4	)%	4	%	(5	)%	(2	)%
Textile Effects		9	%	(3	)%	—		(9	)%	(3	)%
Pigments & Additives		(8	)%	NA		2	%	(6	)%	(12	)%
Total Company		(2	)%	NA		1	%	(3	)%	(4	)%

 

		Twelve months ended
		December 31, 2014 vs. 2013
		Average Selling Price(a)
		Local		Exchange		Sales Mix		Sales
Unaudited, pro forma		Currency		Rate		& Other		Volume(b)		Total
Polyurethanes		(2	)%	—		1	%	2	%	1	%
Performance Products		4	%	—		(1	)%	(1	)%	2	%
Advanced Materials		5	%	—		4	%	(10	)%	(1	)%
Textile Effects		15	%	(1	)%	—		(4	)%	10	%
Pigments & Additives		(2	)%	NA		—		(1	)%	(3	)%
Total Company		2	%	NA		(1	)%	—		1	%

 

NA = foreign exchange rate data not available

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

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

 

9

 

Table 6 — Reconciliation of U.S. GAAP to Non-GAAP Measures

 

								Income Tax						Net (Loss) Income						Diluted (Loss) Income
		EBITDA						(Expense) Benefit						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		2014			2013			2014			2013			2014			2013			2014			2013
GAAP(1)		$	141		$	225		$	(12	)	$	(20	)	$	(38	)	$	41		$	(0.16	)	$	0.17
Adjustments:
Acquisition and integration expenses, purchase accounting adjustments		40			7			(4		)	(3		)	36			4			0.15			0.02
Loss from discontinued operations, net of tax(3)		1			2			N/A			N/A			1			1			—			—
Discount amortization on settlement financing associated with the terminated merger		N/A			N/A			—			(1		)	—			1			—			—
Gain on disposition of businesses/assets		(1		)	—			—			—			(1		)	—			—			—
Loss on early extinguishment of debt		28			16			(10		)	(6		)	18			10			0.07			0.04
Certain legal settlements and related expenses		—			1			—			—			—			1			—			—
Amortization of pension and postretirement actuarial losses		14			18			—			(7		)	14			11			0.06			0.05
Restructuring, impairment and plant closing and transition costs		69			44			(18		)	5			51			49			0.21			0.20
Adjusted(1)		$	292		$	313		$	(44	)	$	(32	)	$	81		$	118		$	0.33		$	0.48
Adjusted income tax expense														44			32
Net income attributable to noncontrolling interests, net of tax														3			1
Adjusted pre-tax income(1)														$	128		$	151
Adjusted effective tax rate														34		%	21		%

 

					Income Tax			Net Income			Diluted Income
		EBITDA			Benefit (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		2014			2014			2014			2014
GAAP(1)		$	293		$	40		$	188		$	0.76
Adjustments:
Acquisition and integration expenses, purchase accounting adjustments		10			(2		)	8			0.03
Impact of certain foreign tax credit elections		N/A			(94		)	(94		)	(0.38		)
Certain legal settlements and related expenses		1			—			1			—
Amortization of pension and postretirement actuarial losses		12			(2		)	10			0.04
Restructuring, impairment and plant closing and transition costs		40			(6		)	34			0.14
Adjusted(1)		$	356		$	(64	)	$	147		$	0.60
Adjusted income tax expense								64
Net income attributable to noncontrolling interests, net of tax								6
Adjusted pre-tax income(1)								$	217
Adjusted effective tax rate								29		%

 

								Income Tax						Net Income						Diluted Income
		EBITDA						(Expense) Benefit						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		2014			2013			2014			2013			2014			2013			2014			2013
GAAP(1)		$	1,022		$	889		$	(51	)	$	(125	)	$	323		$	128		$	1.31		$	0.53
Adjustments:
Acquisition and integration expenses, purchase accounting adjustments		67			21			(10		)	(5		)	57			16			0.23			0.07
Impact of certain foreign tax credit elections		N/A			N/A			(94		)	—			(94		)	—			(0.38		)	—
Loss from discontinued operations, net of tax(3)		10			5			N/A			N/A			8			5			0.03			0.02
Discount amortization on settlement financing associated with the terminated merger		N/A			N/A			—			(3		)	—			6			—			0.02
Gain on disposition of businesses/assets		(3		)	—			1			—			(2		)	—			(0.01		)	—
Loss on early extinguishment of debt		28			51			(10		)	(19		)	18			32			0.07			0.13
Certain legal settlements and related expenses		3			9			—			(2		)	3			7			0.01			0.03
Amortization of pension and postretirement actuarial losses		51			74			(10		)	(20		)	41			54			0.17			0.22
Restructuring, impairment and plant closing and transition costs		162			164			(38		)	(22		)	124			142			0.50			0.59
Adjusted(1)		$	1,340		$	1,213		$	(212	)	$	(196	)	$	478		$	390		$	1.94		$	1.61
Adjusted income tax expense														212			196
Net income attributable to noncontrolling interests, net of tax														22			21
Adjusted pre-tax income(1)														$	712		$	607
Adjusted effective tax rate														30		%	32		%

 

See end of press release for footnote explanations

 

10