Three months ended

Twelve months ended

December 31,

December 31,

In millions, except per share amounts

2023

2022

2023

2022

Revenues

$     1,403

$     1,650

$     6,111

$     8,023

Net (loss) income attributable to Huntsman Corporation

$        (71)

$        (91)

$       101

$       460

Adjusted net (loss) income ⁽¹⁾

$        (36)

$           8

$         67

$       636

Diluted (loss) income per share

$     (0.41)

$     (0.48)

$      0.57

$      2.27

Adjusted diluted (loss) income per share⁽¹⁾

$     (0.21)

$      0.04

$      0.37

$      3.13

Adjusted EBITDA⁽¹⁾

$         44

$         87

$       472

$     1,155

Net cash provided by operating activities from continuing operations

$       166

$       297

$       251

$       892

Free cash flow from continuing operations⁽²⁾

$         83

$       211

$         21

$       620

See end of press release for footnote explanations and reconciliations of non-GAAP measures.

Participant dial-in numbers:

Domestic callers:

(877) 402-8037

International callers:

(201) 378-4913

Table 1 -- Results of Operations

Three months ended

Twelve months ended

December 31,

December 31,

In millions, except per share amounts

2023

2022

2023

2022

Revenues

$     1,403

$     1,650

$     6,111

$     8,023

Cost of goods sold

1,251

1,460

5,205

6,477

Gross profit

152

190

906

1,546

Operating expenses, net

195

167

804

788

Restructuring, impairment and plant closing costs

11

50

18

86

Operating (loss) income

(54)

(27)

84

672

Interest expense, net

(17)

(16)

(65)

(62)

Equity in income of investment in unconsolidated affiliates

13

12

83

67

Other (expense) income, net

(1)

6

(3)

20

(Loss) income from continuing operations before income taxes

(59)

(25)

99

697

Income tax benefit (expense)

2

(31)

(64)

(186)

(Loss) income from continuing operations

(57)

(56)

35

511

(Loss) income from discontinued operations, net of tax⁽³⁾

(2)

(18)

118

12

Net (loss) income

(59)

(74)

153

523

Net income attributable to noncontrolling interests

(12)

(17)

(52)

(63)

Net (loss) income attributable to Huntsman Corporation

$        (71)

$        (91)

$       101

$       460

Adjusted EBITDA⁽¹⁾

$         44

$         87

$       472

$     1,155

Adjusted net (loss) income ⁽¹⁾

$        (36)

$           8

$         67

$       636

Basic (loss) income per share

$     (0.41)

$     (0.48)

$      0.57

$      2.29

Diluted (loss) income per share

$     (0.41)

$     (0.48)

$      0.57

$      2.27

Adjusted diluted (loss) income per share⁽¹⁾

$     (0.21)

$      0.04

$      0.37

$      3.13

Common share information:

Basic weighted average shares

172

189

177

201

Diluted weighted average shares

172

189

177

203

Diluted shares for adjusted diluted (loss) income per share

172

190

179

203

See end of press release for footnote explanations.

Table 2 -- Results of Operations by Segment

Three months ended

Twelve months ended

December 31,

Better /

December 31,

Better /

In millions

2023

2022

(Worse)

2023

2022

(Worse)

Segment Revenues:

Polyurethanes

$       895

$     1,071

(16 %)

$     3,865

$     5,067

(24 %)

Performance Products

260

307

(15 %)

1,178

1,713

(31 %)

Advanced Materials

251

278

(10 %)

1,092

1,277

(14 %)

Total Reportable Segments' Revenues

1,406

1,656

(15 %)

6,135

8,057

(24 %)

Intersegment Eliminations

(3)

(6)

n/m

(24)

(34)

n/m

Total Revenues

$     1,403

$     1,650

(15 %)

$     6,111

$     8,023

(24 %)

Segment Adjusted EBITDA⁽¹⁾:

Polyurethanes

$         13

$         37

(65 %)

$       248

$       628

(61 %)

Performance Products

28

61

(54 %)

201

469

(57 %)

Advanced Materials

38

41

(7 %)

186

233

(20 %)

Total Reportable Segments' Adjusted EBITDA⁽¹⁾

79

139

(43 %)

635

1,330

(52 %)

Corporate, LIFO and other

(35)

(52)

33 %

(163)

(175)

7 %

$         44

$         87

(49 %)

$       472

$     1,155

(59 %)

n/m = not meaningful

Table 3 -- Factors Impacting Sales Revenue

Three months ended

December 31, 2023 vs. 2022

Average Selling Price^(a)

Local

Exchange

Sales

Sales Mix

Currency

Rate

Volume^(b)

& Other

Total

Polyurethanes

(15 %)

1 %

(1 %)

(1 %)

(16 %)

Performance Products

(17 %)

1 %

(1 %)

2 %

(15 %)

Advanced Materials

(4 %)

2 %

(5 %)

(3 %)

(10 %)

Twelve months ended

December 31, 2023 vs. 2022

Average Selling Price^(a)

Local

Exchange

Sales

Sales Mix

Currency

Rate

Volume^(b)

& Other

Total

Polyurethanes

(10 %)

(1 %)

(10 %)

(3 %)

(24 %)

Performance Products

(8 %)

0 %

(24 %)

1 %

(31 %)

Advanced Materials

1 %

0 %

(18 %)

3 %

(14 %)

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

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

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

 Income Tax 

 Net 

 Diluted (Loss) Income 

 EBITDA 

Benefit

 (Loss) Income 

 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

2023

2022

2023

2022

2023

2022

2023

2022

Net Loss

$         (59)

$         (74)

$         (59)

$         (74)

$      (0.34)

$      (0.39)

Net income attributable to noncontrolling interests

(12)

(17)

(12)

(17)

(0.07)

(0.09)

Net loss attributable to Huntsman Corporation

(71)

(91)

(71)

(91)

(0.41)

(0.48)

Interest expense, net from continuing operations

17

16

Income tax (benefit) expense from continuing operations

(2)

31

$           2

$         (31)

Income tax expense from discontinued operations⁽³⁾

3

5

Depreciation and amortization from continuing operations

70

74

Depreciation and amortization from discontinued operations⁽³⁾

-

1

Business acquisition and integration expenses and purchase accounting inventory adjustments

1

1

(1)

1

-

2

-

0.01

EBITDA / (Income) loss from discontinued operations⁽³⁾

(1)

12

 N/A 

 N/A 

2

18

0.01

0.10

Establishment of significant deferred tax asset valuation allowance

-

-

14

49

14

49

0.08

0.26

Loss (gain) on sale of business/assets

1

(27)

-

6

1

(21)

0.01

(0.11)

Fair value adjustments to Venator investment, net

-

3

-

-

-

3

-

0.02

Certain legal and other settlements and related expenses (income)

2

(8)

(1)

2

1

(6)

0.01

(0.03)

Certain non-recurring information technology project implementation costs

-

1

(1)

-

(1)

1

(0.01)

0.01

Amortization of pension and postretirement actuarial losses

12

17

(4)

(4)

8

13

0.05

0.07

Restructuring, impairment and plant closing and transition costs

12

52

(2)

(12)

10

40

0.06

0.21

Adjusted⁽¹⁾

$          44

$          87

$           7

$          11

8

$      (0.21)

$       0.04

Adjusted income tax benefit⁽¹⁾

(7)

(11)

Net income attributable to noncontrolling interests

12

17

Adjusted pre-tax (loss) income ⁽¹⁾

$         (31)

$          14

Adjusted effective tax rate⁽⁴⁾

23 %

n/m

Effective tax rate

3 %

n/m

 Income Tax 

 Diluted Income 

 EBITDA 

Expense

 Net Income 

 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

2023

2022

2023

2022

2023

2022

2023

2022

Net income

$        153

$        523

$        153

$        523

$       0.86

$       2.58

Net income attributable to noncontrolling interests

(52)

(63)

(52)

(63)

(0.29)

(0.31)

Net income attributable to Huntsman Corporation

101

460

101

460

0.57

2.27

Interest expense, net from continuing operations

65

62

Income tax expense from continuing operations

64

186

$         (64)

$       (186)

Income tax expense from discontinued operations⁽³⁾

17

19

Depreciation and amortization from continuing operations

278

281

Depreciation and amortization from discontinued operations⁽³⁾

-

12

Business acquisition and integration expenses and purchase accounting inventory adjustments

4

12

(1)

(2)

3

10

0.02

0.05

Costs associated with the Albemarle Settlement, net

-

3

-

(1)

-

2

-

0.01

EBITDA / Income from discontinued operations⁽³⁾

(135)

(43)

N/A

N/A

(118)

(12)

(0.66)

(0.06)

Establishment of significant deferred tax asset valuation allowance

-

-

14

49

14

49

0.08

0.24

Income from transition services arrangements

-

(2)

-

-

-

(2)

-

(0.01)

Fair value adjustments to Venator investment, net

5

12

-

-

5

12

0.03

0.06

Certain legal and other settlements and related expenses

6

7

(1)

(2)

5

5

0.03

0.02

Certain non-recurring information technology project implementation costs

5

5

(1)

(1)

4

4

0.02

0.02

Amortization of pension and postretirement actuarial losses

37

49

(6)

(11)

31

38

0.17

0.19

Restructuring, impairment and plant closing and transition costs

25

96

(3)

(23)

22

73

0.12

0.36

Plant incident remediation credits

-

(4)

-

1

-

(3)

-

(0.01)

Adjusted⁽¹⁾

$        472

$     1,155

$         (62)

$       (176)

67

636

$       0.37

$       3.13

Adjusted income tax expense⁽¹⁾

62

176

Net income attributable to noncontrolling interests

52

63

Adjusted pre-tax income⁽¹⁾

$        181

$        875

Adjusted effective tax rate⁽⁴⁾

34 %

20 %

Effective tax rate

65 %

27 %

n/m = not meaningful

See end of press release for footnote explanations.

Table 5 -- Balance Sheets

December 31,

December 31,

In millions

2023

2022

Cash

$              540

$              654

Accounts and notes receivable, net

753

834

Inventories

867

995

Other current assets

154

190

Current assets held for sale⁽³⁾

-

472

Property, plant and equipment, net

2,376

2,377

Other noncurrent assets

2,558

2,698

Total assets

$            7,248

$            8,220

Accounts payable

$              719

$              961

Other current liabilities

441

480

Current portion of debt

12

66

Current liabilities held for sale⁽³⁾

-

194

Long-term debt

1,676

1,671

Other noncurrent liabilities

922

1,008

Huntsman Corporation stockholders' equity

3,251

3,624

Noncontrolling interests in subsidiaries

227

216

Total liabilities and equity

$            7,248

$            8,220

Table 6 -- Outstanding Debt

December 31,

December 31,

In millions

2023

2022

Debt:

Revolving credit facility

$                 -

$                55

Accounts receivable programs

169

166

Senior notes

1,471

1,455

Variable interest entities

26

35

Other debt

22

26

Total debt - excluding affiliates

1,688

1,737

Total cash

540

654

Net debt - excluding affiliates⁽⁵⁾

$            1,148

$            1,083

See end of press release for footnote explanations.

Table 7 -- Summarized Statement of Cash Flows

Three months ended

Twelve months ended

December 31,

December 31,

In millions

2023

2022

2023

2022

Total cash at beginning of period

$           496

$           515

$           654

$         1,041

Net cash provided by operating activities from continuing operations

166

297

251

892

Net cash (used in) provided by operating activities from discontinued operations⁽³⁾

(2)

13

(42)

22

Net cash (used in) provided by investing activities from continuing operations

(86)

(84)

309

(260)

Net cash used in investing activities from discontinued operations⁽³⁾

-

(7)

(4)

(19)

Net cash used in financing activities

(39)

(89)

(620)

(994)

Effect of exchange rate changes on cash

5

9

(8)

(28)

Total cash at end of period

$           540

$           654

$           540

$           654

Free cash flow from continuing operations⁽²⁾:

Net cash provided by operating activities from continuing operations

$           166

$           297

$           251

$           892

Capital expenditures

(83)

(86)

(230)

(272)

Free cash flow from continuing operations⁽²⁾

$             83

$           211

$             21

$           620

Supplemental cash flow information:

Cash paid for interest

$            (25)

$            (25)

$            (68)

$            (66)

Cash paid for income taxes

(15)

(23)

(97)

(194)

Cash paid for restructuring and integration

(8)

(13)

(59)

(56)

Cash paid for pensions

(9)

(13)

(50)

(48)

Depreciation and amortization from continuing operations

70

74

278

281

Change in primary working capital:

Accounts and notes receivable

$             86

$           206

$           103

$           146

Inventories

92

122

125

(6)

Accounts payable

(15)

29

(224)

(84)

Total change in primary working capital

$           163

$           357

$               4

$             56

See end of press release for footnote explanations.

(1)

We use adjusted EBITDA to measure the operating performance of our business and for planning and evaluating the performance of our business segments.  We provide adjusted net income (loss) because we feel it provides meaningful insight for the investment community into the performance of our business.  We believe that net income (loss) 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 adjusted EBITDA and adjusted net income (loss).  Additional information with respect to our use of each of these financial measures follows:

Adjusted EBITDA, adjusted net income (loss) and adjusted diluted income (loss) per share, as used herein, are not necessarily comparable to other similarly titled measures of other companies.

Adjusted EBITDA is computed by eliminating the following from net income (loss):  (a) net income attributable to noncontrolling interests; (b) interest expense, net; (c) income taxes; (d) depreciation and amortization; (e) amortization of pension and postretirement actuarial losses; (f) restructuring, impairment and plant closing and transition costs; and further adjusted for certain other items set forth in the reconciliation of net income (loss) to adjusted EBITDA in Table 4 above. 

Adjusted net income (loss) and adjusted diluted income (loss) per share are computed by eliminating the after tax impact of the following items from net income (loss): (a) net income attributable to noncontrolling interests; (b) amortization of pension and postretirement actuarial losses; (c) restructuring, impairment and plant closing and transition costs; and further adjusted for certain other items set forth in the reconciliation of net income (loss) to adjusted net income (loss) in Table 4 above.  The income tax impacts, if any, of each adjusting item represent a ratable allocation of the total difference between the unadjusted tax expense and the total adjusted tax expense, computed without consideration of any adjusting items using a with and without approach.

We may disclose forward-looking adjusted EBITDA because we cannot adequately forecast certain items and events that may or may not impact us in the near future, such as business acquisition and integration expenses and purchase accounting inventory adjustments, certain legal and other settlements and related expenses, gains on sale of businesses/assets and certain tax only items, including tax law changes not yet enacted. Each of such adjustment has not yet occurred, is out of our control and/or cannot be reasonably predicted. In our view, our forward-looking adjusted EBITDA represents the forecast net income on our underlying business operations but does not reflect any adjustments related to the items noted above that may occur and can cause our adjusted EBITDA to differ.

(2)

Management internally uses free cash flow measure: (a) to evaluate our liquidity, (b) evaluate strategic investments, (c) plan stock buyback and dividend levels and (d) evaluate our ability to incur and service debt. Free cash flow is defined as net cash provided by operating activities less capital expenditures. Free cash flow is not a defined term under U.S. GAAP, and it should not be inferred that the entire free cash flow amount is available for discretionary expenditures.

(3)

During the first quarter 2023, we completed the divestiture of our Textile Effects business, which is reported as discontinued operations on the income and cash flow statements and held for sale on the December 31, 2022 balance sheet.

(4)

We believe the adjusted effective tax rate provides improved comparability between periods through the exclusion of certain items that management believes are not indicative of the businesses' operational profitability and that may obscure underlying business results and trends. In our view, effective tax rate is the performance measure calculated and presented in accordance with U.S. GAAP that is most directly comparable to adjusted effective tax rate. The reconciliation of historical adjusted effective tax rate and effective tax rate is set forth in Table 4 above. Please see the reconciliation of our net income to adjusted net income in Table 4 for details regarding the tax impacts of our non-GAAP adjustments.

Our forward-looking adjusted effective tax rate is calculated based on our forecast effective tax rate, and the range of our forward-looking adjusted effective tax rate equals the range of our forecast effective tax rate. We disclose forward-looking adjusted effective tax rate because we cannot adequately forecast certain items and events that may or may not impact us in the near future, such as business acquisition and integration expenses and purchase accounting inventory adjustments, certain legal and other settlements and related expenses, gains on sale of businesses/assets and certain tax only items, including tax law changes not yet enacted. Each of such adjustment has not yet occurred, is out of our control and/or cannot be reasonably predicted. In our view, our forward-looking adjusted effective tax rate represents the forecast effective tax rate on our underlying business operations but does not reflect any adjustments related to the items noted above that may occur and can cause our effective tax rate to differ.

(5)

Net debt is a measure we use to monitor how much debt we have after taking into account our total cash. We use it as an indicator of our overall financial position, and calculate it by taking our total debt, including the current portion, and subtracting total cash.