Exhibit 99.1

 

News Release

 

FOR IMMEDIATE RELEASE	Investor Relations:	Media:
April 30, 2015	Kurt Ogden	Gary Chapman
The Woodlands, TX	(801) 584-5959	(281) 719-4324
NYSE: HUN

 

HUNTSMAN RELEASES FIRST QUARTER 2015 RESULTS;

REPORTS STRONG EARNINGS IN DIFFERENTIATED BUSINESSES

 

First quarter 2015 Highlights

 

·                  Adjusted EBITDA was $285 million compared to $329 million in the prior year period.  The decrease was primarily attributable to an estimated adjusted EBITDA impact of approximately $60 million from a planned maintenance outage at our Port Neches, Texas facility, partially offset by earnings from the performance additives and titanium dioxide businesses that we acquired from Rockwood.

 

·                  Adjusted diluted income per share was $0.40 compared to $0.43 in the prior year period.

 

·                  Net income attributable to Huntsman Corporation was $5 million compared to net income of $54 million in the prior year period.

 

·                  The stronger U.S. dollar reduced adjusted EBITDA by an estimated $17 million compared to the prior year period.

 

		Three months ended
		March 31,						December 31,
In millions, except per share amounts, unaudited		2015			2014			2014
Revenues		$	2,589		$	2,755		$	2,951
Net income (loss) attributable to Huntsman Corporation		$	5		$	54		$	(38	)
Adjusted net income(1)		$	98		$	105		$	81
Diluted income (loss) per share		$	0.02		$	0.22		$	(0.16	)
Adjusted diluted income per share(1)		$	0.40		$	0.43		$	0.33
EBITDA(1)		$	159		$	261		$	141
Adjusted EBITDA(1)		$	285		$	329		$	292

 

See end of press release for footnote explanations

 

 

The Woodlands, TX — Huntsman Corporation (NYSE: HUN) today reported first quarter 2015 results with revenues of $2,589 million and adjusted EBITDA of $285 million.

 

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

 

“I am pleased with the strong first quarter earnings demonstrated by our differentiated businesses which include MDI urethanes, Performance Products, Advanced Materials and Textile Effects.  EBITDA from these businesses improved approximately $30 million compared to the prior year.  We continue to see strength in the markets we are serving and are encouraged by future growth prospects.

 

Business conditions remain challenging in the titanium dioxide market; however I am encouraged that our earnings improved approximately $10 million compared to the fourth quarter.  We have taken aggressive self- help measures to deliver $175 million of expected incremental synergies and restructuring savings by the middle of 2016.  I see a clear path forward to an improvement in earnings within our Pigments and Additives business.

 

During the first quarter we completed planned maintenance at our PO/MTBE facility in Port Neches, Texas.  We experienced some delays in the restart of the facility during April.  We are currently operating at normal rates and estimate the EBITDA impact from the delayed startup to be approximately $35 million in the second quarter.”

 

Segment Analysis for 1Q15 Compared to 1Q14

 

Polyurethanes

 

The decrease in revenues in our Polyurethanes division for the three months ended March 31, 2015 compared to the same period in 2014 was primarily due to a scheduled maintenance outage at our PO/MTBE facility in Port Neches, Texas in the first quarter of 2015.  MDI sales volumes increased due to improved demand in the Americas and European regions and across most major markets.  PO/MTBE sales volumes decreased due to the scheduled maintenance outage.  PO/MTBE average selling prices decreased following lower pricing for high octane gasoline.  MDI average selling prices decreased in response to lower raw material costs and the foreign currency exchange impact of a stronger U.S. dollar against major European currencies.  The decrease in Adjusted EBITDA was primarily due to lower PO/MTBE earnings, partially offset by higher MDI contribution margins.  We estimate the reduction to Adjusted EBITDA from the planned PO/MTBE maintenance outage to be approximately $60 million in the first quarter 2015.

 

Performance Products

 

The decrease in revenues in our Performance Products division for the three months ended March 31, 2015 compared to the same period in 2014 was due to lower sales volumes and lower 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 decreased in response to lower raw material costs and the foreign currency exchange impact of a stronger U.S. dollar against major European currencies.  The increase in adjusted EBITDA was primarily due to higher sales volumes and higher contribution margins in our amines and maleic anhydride businesses.

 

Advanced Materials

 

The decrease in revenues in our Advanced Materials division for the three months ended March 31, 2015 compared to the same period in 2014 was primarily due to lower sales volumes.  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 but was offset by the foreign currency exchange

 

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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 March 31, 2015 compared to the same period in 2014 was primarily due to lower sales volumes.  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 due to the implementation of price increases but was offset by the foreign currency exchange 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.

 

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 March 31, 2015 compared to the same period in 2014 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 foreign currency exchange 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.

 

Corporate, LIFO and Other

 

Adjusted EBITDA from Corporate, LIFO and Other increased by $7 million to a loss of $37 million for the three months ended March 31, 2015 compared to a loss of $44 million for the same period in 2014.  The increase in adjusted EBITDA was primarily the result of a net benefit from LIFO inventory valuation income and loss from benzene sales of $7 million.

 

Liquidity, Capital Resources and Outstanding Debt

 

As of March 31, 2015, we had $1,806 million of combined cash and unused borrowing capacity compared to $1,601 million at December 31, 2014.

 

On March 31, 2015 we issued €300 million (approximately $326 million) of 4.25% senior notes due 2025.  We used the proceeds to redeem $289 million of our outstanding 8.625% senior subordinated notes due 2021 and pay associated accrued interest in April.  We expect to save approximately $11 million in annual interest expense as a result of this refinancing.

 

Total capital expenditures for the three months ended March 31, 2015 were $149 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 our Augusta, Georgia color pigments facility and replacement of Rockwood computer systems.

 

Based on 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 $400 million.

 

Income Taxes

 

During the three months ended March 31, 2015, we recorded an income tax expense of $2 million and paid $11 million in cash for income taxes.  Our adjusted effective income tax rate for the three months ended March 31, 2015 was 25%.

 

We expect our long term adjusted effective tax rate to be approximately 30%.

 

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Earnings Conference Call Information

 

We will hold a conference call to discuss our first quarter 2015 financial results on Thursday, April 30, 2015 at 11:00 a.m. ET.

 

Call-in numbers for the conference call:

 

U.S. participants	(888) 713 - 4213
International participants	(617) 213 - 4865
Passcode	50577489

 

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=PJ3979ADY

 

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 April 30, 2015 and ending May 7, 2015.

 

Call-in numbers for the replay:

 

U.S. participants	(888) 286 - 8010
International participants	(617) 801 - 6888
Replay code	22645057

 

Upcoming Conferences

 

During the second quarter a member of management will present at the following conferences:

 

·                  Wells Fargo Industrial and Construction Conference, May 5, 2015

·                  Goldman Sachs Basic Materials Conference, May 19, 2015

·                  Deutsche Bank Global Industrials and Basic Materials Conference, June 3, 2015

·                  Jefferies Industrials Conference, August 11, 2015

 

A webcast of the presentations, where applicable, along with accompanying materials will be available at ir.huntsman.com.

 

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Table 1 — Results of Operations

 

		Three months ended
		March 31,
In millions, except per share amounts, unaudited		2015			2014
Revenues		$	2,589		$	2,755
Cost of goods sold		2,139			2,305
Gross profit		450			450
Operating expenses		280			261
Restructuring, impairment and plant closing costs		93			39
Operating income		77			150
Interest expense		(56		)	(48		)
Equity in income of investment in unconsolidated affiliates		2			2
Loss on early extinguishment of debt		(3		)	—
Other (expense) income		(1		)	1
Income before income taxes		19			105
Income tax expense		(2		)	(36		)
Income from continuing operations		17			69
Loss from discontinued operations, net of tax(3)		(2		)	(7		)
Net income		15			62
Net income attributable to noncontrolling interests, net of tax		(10		)	(8		)
Net income attributable to Huntsman Corporation		$	5		$	54
Adjusted EBITDA(1)		$	285		$	329
Adjusted net income(1)		$	98		$	105
Basic income per share		$	0.02		$	0.22
Diluted income per share		$	0.02		$	0.22
Adjusted diluted income per share(1)		$	0.40		$	0.43
Common share information:
Basic shares outstanding		243.9			240.9
Diluted shares		247.2			244.5
Diluted shares for adjusted diluted income per share		247.2			244.5

 

See end of press release for footnote explanations

 

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Table 2 — Results of Operations by Segment

 

		Three months ended
		March 31,						Better /
In millions, unaudited		2015			2014			(Worse)
Segment Revenues:
Polyurethanes		$	890		$	1,200		(26	)%
Performance Products		656			765			(14	)%
Advanced Materials		290			319			(9	)%
Textile Effects		206			224			(8	)%
Pigments & Additives		572			318			80	%
Eliminations and other		(25		)	(71		)	65	%
Total		$	2,589		$	2,755		(6	)%
Segment Adjusted EBITDA(1):
Polyurethanes		$	105		$	167		(37	)%
Performance Products		121			118			3	%
Advanced Materials		58			46			26	%
Textile Effects		17			16			6	%
Pigments & Additives		21			26			(19	)%
Corporate, LIFO and other		(37		)	(44		)	16	%
Total		$	285		$	329		(13	)%

 

See end of press release for footnote explanations

 

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

 

		Three months ended
		March 31,						Better /
In millions, unaudited, pro forma		2015			2014			(Worse)
Segment Revenues:
Polyurethanes		$	890		$	1,207		(26	)%
Performance Products		656			765			(14	)%
Advanced Materials		290			319			(9	)%
Textile Effects		206			224			(8	)%
Pigments & Additives		572			689			(17	)%
Eliminations and other		(25		)	(71		)	65	%
Pro forma total		$	2,589		$	3,133		(17	)%
Segment Adjusted EBITDA(2):
Polyurethanes		$	105		$	169		(38	)%
Performance Products		121			118			3	%
Advanced Materials		58			46			26	%
Textile Effects		17			16			6	%
Pigments & Additives		21			73			(71	)%
Corporate, LIFO and other		(37		)	(44		)	16	%
Pro forma total		$	285		$	378		(25	)%

 

See end of press release for footnote explanations

 

6

 

Table 4 — Factors Impacting Sales Revenues

 

		Three months ended
		March 31, 2015 vs. 2014
		Average Selling Price(a)
		Local		Exchange		Sales Mix		Sales
Unaudited		Currency		Rate		& Other(c)		Volume(b)		Total
Polyurethanes		(4	)%	(6	)%	6	%	(22	)%	(26	)%
Performance Products		(2	)%	(5	)%	2	%	(9	)%	(14	)%
Advanced Materials		5	%	(7	)%	(1	)%	(6	)%	(9	)%
Textile Effects		3	%	(4	)%	4	%	(11	)%	(8	)%
Pigments & Additives		(7	)%	(8	)%	104	%	(9	)%	80	%
Total Company		(2	)%	(6	)%	9	%	(7	)%	(6	)%

 

(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.

 

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

 

		Three months ended
		March 31, 2015 vs. 2014
		Average Selling Price(a)
		Local		Exchange		Sales Mix		Sales
Unaudited, pro forma		Currency		Rate		& Other		Volume(b)		Total
Polyurethanes		(10	)%	NA		6	%	(22	)%	(26	)%
Performance Products		(7	)%	NA		2	%	(9	)%	(14	)%
Advanced Materials		(2	)%	NA		(1	)%	(6	)%	(9	)%
Textile Effects		(1	)%	NA		4	%	(11	)%	(8	)%
Pigments & Additives		(17	)%	NA		1	%	(1	)%	(17	)%
Total Company		(10	)%	NA		7	%	(14	)%	(17	)%

 

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.

 

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

 

								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		2015			2014			2015			2014			2015			2014			2015			2014
GAAP(1)		$	159		$	261		$	(2	)	$	(36	)	$	5		$	54		$	0.02		$	0.22
Adjustments:
Acquisition and integration expenses, purchase accounting adjustments		9			8			(2		)	(2		)	7			6			0.03			0.02
Loss from discontinued operations, net of tax(3)		1			7			N/A			N/A			2			7			0.01			0.03
Loss on early extinguishment of debt		3			—			(1		)	—			2			—			0.01			—
Certain legal settlements and related expenses		1			—			—			—			1			—			—			—
Amortization of pension and postretirement actuarial losses		18			13			(5		)	(4		)	13			9			0.05			0.04
Restructuring, impairment and plant closing and transition costs		94			40			(26		)	(11		)	68			29			0.28			0.12
Adjusted(1)		$	285		$	329		$	(36	)	$	(53	)	$	98		$	105		$	0.40		$	0.43
Adjusted income tax expense														36			53
Net income attributable to noncontrolling interests, net of tax														10			8
Adjusted pre-tax income(1)														$	144		$	166
Adjusted effective tax rate														25		%	32		%

 

					Income Tax			Net (Loss) Income			Diluted (Loss) 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		2014			2014			2014			2014
GAAP(1)		$	141		$	(12	)	$	(38	)	$	(0.16	)
Adjustments:
Acquisition and integration expenses, purchase accounting adjustments		40			(4		)	36			0.15
Loss from discontinued operations, net of tax(2)		1			N/A			1			—
Gain on disposition of businesses/assets		(1		)	—			(1		)	—
Loss on early extinguishment of debt		28			(10		)	18			0.07
Amortization of pension and postretirement actuarial losses		14			—			14			0.06
Restructuring, impairment and plant closing and transition costs		69			(18		)	51			0.21
Adjusted(1)		$	292		$	(44	)	$	81		$	0.33
Adjusted income tax expense								44
Net income attributable to noncontrolling interests, net of tax								3
Adjusted pre-tax income(1)								$	128
Adjusted effective tax rate								34		%

 

See end of press release for footnote explanations

 

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Table 7 — Pro Forma (2) Reconciliation of U.S. GAAP to Non-GAAP Measures

 

		Pro Forma EBITDA
		Three months ended
		March 31,
In millions, except per share amounts, unaudited, pro forma		2015			2014
GAAP(1)		$	159		$	308
Adjustments:
Allocation of Rockwood general corporate overhead		—			7
Acquisition and integration expenses, purchase accounting adjustments		9			2
Loss from discontinued operations, net of tax(3)		1			7
Loss on early extinguishment of debt		3			—
Certain legal settlements and related expenses		1			—
Amortization of pension and postretirement actuarial losses		18			14
Restructuring, impairment and plant closing and transition costs		94			40
Pro forma adjusted(2)		$	285		$	378

 

		Pro Forma EBITDA
		Three months ended
		December 31,
In millions, except per share amounts, unaudited pro forma		2014
GAAP(1)		$	191
Adjustments:
Acquisition and integration expenses, purchase accounting adjustments		(2		)
Loss from discontinued operations, net of tax(2)		1
Gain on disposition of businesses/assets		(1		)
Loss on early extinguishment of debt		28
Amortization of pension and postretirement actuarial losses		14
Restructuring, impairment and plant closing and transition costs		69
Pro forma adjusted(2)		$	300

 

See end of press release for footnote explanations

 

9

 

Table 8 — Reconciliation of Net Income to EBITDA

 

		Three months ended
		March 31,						December 31,
In millions, unaudited		2015			2014			2014
Net income (loss) attributable to Huntsman Corporation		$	5		$	54		$	(38	)
Interest expense		56			48			57
Income tax expense from continuing operations		2			36			12
Income tax expense from discontinued operations(3)		1			—			—
Depreciation and amortization		95			123			110
EBITDA(1)		159			261			141
Pro forma adjustments to:
Net income (loss) attributable to Huntsman Corporation		—			15			26
Interest expense		—			15			1
Income tax expense from continuing operations		—			9			13
Depreciation and amortization		—			8			10
Pro forma EBITDA(2)		$	159		$	308		$	191

 

See end of press release for footnote explanations

 

Table 9 — Selected Balance Sheet Items

 

		March 31,			December 31,
In millions		2015			2014
		(unaudited)
Cash		$	1,003		$	870
Accounts and notes receivable, net		1,668			1,707
Inventories		1,869			2,025
Other current assets		347			437
Property, plant and equipment, net		4,250			4,423
Other assets		1,614			1,540
Total assets		$	10,751		$	11,002
Accounts payable		$	1,191		$	1,275
Other current liabilities		754			790
Current portion of debt		529			267
Long-term debt		4,829			4,933
Other liabilities		1,675			1,786
Total equity		1,773			1,951
Total liabilities and equity		$	10,751		$	11,002

 

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Table 10 — Outstanding Debt

 

		March 31,			December 31,
In millions		2015			2014
		(unaudited)
Debt:
Senior credit facilities		$	2,512		$	2,528
Accounts receivable programs		214			229
Senior notes		1,862			1,596
Senior subordinated notes		493			531
Variable interest entities		198			207
Other debt		79			109
Total debt - excluding affiliates		5,358			5,200
Total cash		1,003			870
Net debt- excluding affiliates		$	4,355		$	4,330

 

Table 11 — Summarized Statement of Cash Flows

 

		Three months ended
		March 31,
In millions, unaudited		2015			2014
Total cash at beginning of period(a)		$	870		$	529
Net cash provided by (used in) operating activities		34			(67		)
Net cash used in investing activities		(81		)	(104		)
Net cash provided by (used in) financing activities		189			(71		)
Effect of exchange rate changes on cash		(8		)	(1		)
Change in restricted cash		(1		)	—
Total cash at end of period(a)		$	1,003		$	286
Supplemental cash flow information:
Cash paid for interest		$	(48	)	$	(54	)
Cash paid for income taxes		(11		)	(46		)
Cash paid for capital expenditures		(149		)	(107		)
Depreciation and amortization		95			123
Changes in primary working capital:
Accounts and notes receivable		$	(49	)	$	(149	)
Inventories		54			(172		)
Accounts payable		(2		)	107
Total cash provided by (used in) primary working capital		$	3		$	(214	)

 

(a) Includes restricted cash.

 

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