Huntsman Releases First Quarter 2010 Results
EARNINGS MORE THAN DOUBLE PRIOR YEAR DESPITE THE NEGATIVE IMPACT OF APPROXIMATELY $51 MILLION IN PRODUCTION DISRUPTIONS
THE WOODLANDS, Texas, May 7 /PRNewswire-FirstCall/ -- (NYSE: HUN)
First Quarter 2010 Highlights
-- Revenues for the first quarter of 2010 were $2,094 million, an increase
of 25% compared to $1,680 million for the same period in 2009 and an
increase of 1% compared to $2,065 million for the fourth quarter of
2009.
-- Adjusted EBITDA for the first quarter of 2010 was $123 million compared
to $57 million for the same period in 2009 and $174 million for the
fourth quarter of 2009 (adjusted to account for the reclassification of
results from our Australian styrenics business into discontinued
operations).
-- Net loss attributable to Huntsman Corporation for the first quarter of
2010 was $172 million or $0.73 loss per diluted share, including charges
related to the early extinguishment of debt of $155 million. This
compares to net loss attributable to Huntsman Corporation of $290
million or $1.24 loss per diluted share for the same period in 2009 and
net income attributable to Huntsman Corporation of $66 million or $0.26
per diluted share for the fourth quarter of 2009 which was impacted
favorably by year end accounting for taxes of approximately $79 million.
-- Adjusted net loss for the first quarter of 2010 was $16 million or $0.07
loss per diluted share. This compares to an adjusted net loss of $267
million or $1.14 loss per diluted share for the same period in 2009 and
adjusted net income of $79 million or $0.31 per diluted share for the
fourth quarter of 2009 which was impacted favorably by year end
accounting for taxes of approximately $79 million.
Summarized earnings are as follows:
Three months ended March 31, Three months ended
In millions, except per
share amounts 2010 2009 December 31, 2009
Net (loss) income
attributable to Huntsman
Corporation $ (172) $ (290) $ 66
Adjusted net (loss) income(1) $ (16) $ (267) $ 79
Diluted (loss) income per
share $ (0.73) $ (1.24) $ 0.26
Adjusted diluted (loss)
income per share(1) $ (0.07) $ (1.14) $ 0.31
EBITDA(1) $ (55) $ 30 $ 147
Adjusted EBITDA(1) $ 123 $ 57 $ 174
See end of press release for important explanations
Recent Highlights
-- On January 11, 2010, we repurchased all of our outstanding 7%
convertible notes due 2018 for approximately $382 million. These notes
were convertible into approximately 31.8 million shares of common stock.
-- On February 27, 2010, we announced the completion of our ethyleneamines
joint venture plant in Jubail, Saudi Arabia with our partner the Zamil
Group Holding Company. The plant commissioning is almost complete and
will soon begin deliveries of product. Results from this operation will
be consolidated in our financial statements within our Performance
Products division.
-- On March 9, 2010, we entered into an amendment of our existing bank
credit facilities. Among other things, the amendment extends the
maturity of the revolving credit facility to March 9, 2014.
-- On March 17, 2010, we completed a $350 million offering of senior
subordinated notes due 2020 through our wholly owned subsidiary,
Huntsman International LLC. We used the net proceeds of the notes to
refinance approximately euro 184 million of senior subordinated notes
due 2013 and approximately euro 59 million of senior subordinated notes
due 2015.
-- Effective March 24, 2010, Dr. Patrick Harker was appointed as a new
independent director to our Board of Directors. Dr. Harker, age 51, is
President of the University of Delaware. He has been the Dean of the
Wharton School of the University of Pennsylvania and has served as a
Professor at the University of Pennsylvania.
Peter R. Huntsman, our President and CEO, commented:
"I am pleased with our first quarter results. Our first quarter 2010 Adjusted EBITDA was more than double our prior year results despite the negative impact of approximately $40 million from planned maintenance and approximately $11 million from unplanned mechanical shut downs. Throughout the first quarter and April we saw positive signs of economic recovery within our business. Adjusted for the effect of our planned maintenance, first quarter sales volumes improved 19% compared to the previous year and 5% compared to the fourth quarter. Results from our restructuring efforts this past year are positively reflected in our earnings and are most visible in our Textile Effects business which had break-even earnings and our Pigments business which recorded the highest level of quarterly earnings since early 2006."
He added, "The positive momentum we are seeing in underlying demand suggests that second quarter sales volumes should continue to improve. We are aggressively working to increase our product prices to offset the increase we are seeing in raw materials."
Huntsman Corporation
Operating Results
Three months ended March 31,
In millions, except per
share amounts 2010 2009
Revenues $ 2,094 $ 1,680
Cost of goods sold 1,813 1,531
Gross profit 281 149
Operating expenses 256 222
Restructuring, impairment and plant closing costs 3 14
Operating income (loss) 22 (87)
Interest expense, net (61) (55)
Loss on accounts receivable securitization
programs - (4)
Equity in income of investment in unconsolidated
affiliates 1 1
Loss on early extinguishment of debt (155) -
Expenses associated with the Terminated Merger
and related
litigation - (7)
Loss before income taxes (193) (152)
Income tax benefit (expense) 34 (138)
Loss from continuing operations (159) (290)
Loss from discontinued operations, net of tax(2) (13) (4)
Net loss (172) (294)
Less net loss attributable to noncontrolling
interests - 4
Net loss attributable to Huntsman Corporation $ (172) $ (290)
Net loss attributable to Huntsman Corporation $ (172) $ (290)
Interest expense, net 61 55
Income tax (benefit) expense from continuing
operations (34) 138
Income tax (benefit) expense from discontinued
operations(1)(2) (8) 1
Depreciation and amortization 98 126
EBITDA(1) $ (55) $ 30
Adjusted EBITDA(1) $ 123 $ 57
Basic loss per share $ (0.73) $ (1.24)
Diluted loss per share $ (0.73) $ (1.24)
Adjusted diluted loss per share(1) $ (0.07) $ (1.14)
Common share information:
Basic shares outstanding 234.8 233.7
Diluted shares 234.8 233.7
See end of press release for footnote explanations
Huntsman Corporation
Segment Results
Three months ended March 31,
In millions 2010 2009
Segment Revenues:
Polyurethanes $ 767 $ 600
Performance Products 616 500
Advanced Materials 291 257
Textile Effects 195 152
Pigments 269 196
Eliminations and other (44) (25)
Total $ 2,094 $ 1,680
Segment EBITDA(1):
Polyurethanes $ 52 $ 26
Performance Products 60 63
Advanced Materials 33 10
Textile Effects - (11)
Pigments 28 (29)
Corporate, LIFO and other (207) (26)
Discontinued operations(2) (21) (3)
Total $ (55) $ 30
Segment Adjusted EBITDA(1) :
Polyurethanes $ 52 $ 27
Performance Products 60 63
Advanced Materials 31 10
Textile Effects - (11)
Pigments 29 (16)
Corporate, LIFO and other (49) (16)
Total $ 123 $ 57
See end of press release for footnote explanations
Three months ended March 31,
2010 vs. 2009
Period-Over-Period Average Selling Price(a) Sales
Increase (Decrease) Local Currency Volume(a)
Polyurethanes 34% 3% (11)%
Performance Products 1% 3% 21%
Advanced Materials(b) (9)% 3% 27%
Textile Effects 4% 4% 18%
Pigments 1% 3% 33%
Total Company(b) 12% 4% 7%
(a) Excludes revenues and sales volumes from tolling and by-products
(b) Excludes APAO business sold July 31, 2009
Three Months Ended March 31, 2010 Compared to Three Months Ended March 31, 2009
Revenues for the three months ended March 31, 2010 increased to $2,094 million from $1,680 million for the same period in 2009. Revenues increased primarily due to higher sales volumes in all divisions with the exception of Polyurethanes which was impacted by a planned maintenance outage at our Port Neches, Texas PO/MTBE facility and higher average selling prices in all divisions with the exception of Advanced Materials. For the three months ended March 31, 2010, Adjusted EBITDA was $123 million compared to $57 million for the same period in 2009.
Starting in the first quarter of 2010, we reclassed the impact of LIFO inventory accounting gains and losses from our Performance Products division into Corporate, LIFO and Other. All prior period segment results have been conformed to this presentation. This reclass has no impact on the total Adjusted EBITDA or Adjusted net earnings of our company; however, we believe it provides greater transparency to the underlying operating results of our Performance Products division.
Polyurethanes
The increase in revenues in our Polyurethanes division for the three months ended March 31, 2010 compared to the same period in 2009 was primarily due to higher MDI sales volumes and higher average selling prices for MTBE. MDI sales volumes were higher with demand recovery across all major markets as a result of the worldwide economic recovery while average selling prices for MTBE increased in response to higher raw material costs and tight supply due in part to a 60-day planned maintenance outage at our Port Neches, Texas PO/MTBE facility. PO/MTBE sales volumes decreased due to the planned outage. Average MDI selling prices decreased primarily due to competitive pressures and lower raw material costs. The increase in Adjusted EBITDA was primarily due to higher MDI sales volumes partially offset by the approximate $40 million impact of the planned maintenance outage at our Port Neches, Texas PO/MTBE facility.
Performance Products
The increase in revenues in our Performance Products division for the three months ended March 31, 2010 compared to the same period in 2009 was due to higher sales volumes and higher average selling prices. Sales volumes increased primarily due to higher demand across nearly all product groups and additional sales of a portion of our ethylene glycol production no longer tolled. Average selling prices increased as a result of the strength of major European currencies and the Australian dollar against the U.S. dollar and in response to higher raw material costs. The decrease in Adjusted EBITDA was primarily due to unplanned mechanical shut downs resulting in approximately $11 million of higher costs.
Advanced Materials
The increase in revenues in our Advanced Materials division for the three months ended March 31, 2010 compared to the same period in 2009 was due to higher sales volumes partially offset by lower average selling prices. Sales volumes increased primarily due to the worldwide economic recovery. Average selling prices decreased in our specialty components business primarily as a result of changes in our product mix and competitive pressure in the wind generation and coating systems markets. Average selling prices decreased in our base resins business primarily due to lower raw material costs. There was no change in average selling prices within our formulation systems business. The increase in Adjusted EBITDA was primarily due to higher sales volumes across our businesses, higher contribution margins in our core formulations systems and specialty components businesses and lower fixed costs.
Textile Effects
The increase in revenues in our Textile Effects division for the three months ended March 31, 2010 compared to the same period in 2009 was due to higher sales volumes and higher average selling prices. Sales volumes increased across all business lines and in all regions primarily due to the worldwide economic recovery. Average selling prices increased primarily due to the strength of the Euro, Indian Rupee and Brazilian Real against the U.S. dollar as well as favorable changes in product mix. The increase in Adjusted EBITDA was primarily due to higher sales volumes and higher contribution margins partially offset by higher fixed costs in part due to our second quarter 2009 acquisition of Baroda.
Pigments
The increase in revenues in our Pigments division for the three months ended March 31, 2010 compared to the same period in 2009 was due to higher sales volumes and higher average selling prices. Sales volumes increased primarily due to demand recovery in all regions as a result of the worldwide economic recovery. Average selling prices increased as a result of the strength of major European currencies against the U.S. dollar and higher local currency selling prices in Asia, Africa, Latin America and Middle East regions. The increase in Adjusted EBITDA in our Pigments division was primarily due to higher sales volumes, lower raw material and energy costs and the benefits of recent restructuring efforts.
Corporate, LIFO and Other
Corporate and other includes unallocated foreign exchange gains and losses, unallocated corporate overhead, loss on our accounts receivable securitization program, income (expenses) associated with the terminated merger with Hexion and related litigation, loss on early extinguishment of debt, income (loss) attributable to non-controlling interests, unallocated restructuring costs, extraordinary gain on the acquisition of a business, LIFO inventory valuation reserve adjustments and non-operating income and expense. The decrease in Adjusted EBITDA from Corporate and other for the three months ended March 31, 2010 compared to the same period in 2009 resulted primarily from an increase of LIFO inventory valuation expense of $30 million.
Income Taxes
During the three months ended March 31, 2010, we recorded an income tax benefit of $34 million compared to $138 million of income tax expense in the same period of 2009. Our adjusted effective tax rate for the first quarter 2010 was a benefit of approximately 45%. We have tax valuation allowances in countries such as Switzerland and the United Kingdom where our Textile Effects and Pigments businesses have meaningful operations. As these businesses return to greater levels of profitability we expect these tax valuation allowances to eventually be removed. In the mean time, we expect our income tax rate to be fairly volatile. We expect our long term effective income tax rate to be approximately 30 - 35%; however, for 2010 our adjusted income tax rate could be as high as 100%. This unusual income tax rate caused by the tax valuation allowances has no impact on our cash taxes. During the first quarter of 2010 we paid $8 million in cash for income taxes and expect a long term cash tax rate of approximately 20%.
Liquidity, Capital Resources and Outstanding Debt
As of March 31, 2010, we had $1,468 million of combined cash and unused borrowing capacity compared to $2,510 million at December 31, 2009. The decrease was primarily attributable to the repurchase of convertible notes of $382 million and the reduction in unused bank credit facilities of $450 million.
Beginning January 1, 2010, as a result of changes in accounting guidelines outstanding borrowings related to the sales of accounts receivable under our accounts receivable programs are accounted for as secured borrowings. Excluding the impact of this change, our primary working capital (accounts receivable, inventory and accounts payable) increased which created a use of cash of $57 million in the first quarter of 2010. Total capital expenditures were $37 million during the first quarter of 2010 compared to $61 million for the same period in 2009. In addition, we used additional cash in the first quarter to fund normal seasonal items and the planned maintenance outage at our Port Neches, Texas PO/MTBE facility. We expect to spend between $250 and $275 million on capital expenditures in 2010.
In connection with our ongoing insurance claim related to the April 29, 2006 Port Arthur, Texas fire, we have received partial insurance proceeds to date of $365 million. We are currently in binding arbitration with the insurers. While we continue to respond to requests of the arbitration panel, based on preliminary rulings to date, the current maximum amount of remaining recoveries will not exceed approximately $170 million. Any additional recoveries will be used to repay secured debt.
On January 11, 2010, we repurchased all of our outstanding 7% convertible notes due 2018 which were held by funds controlled by Apollo Management, L.P. The convertible notes were issued to Apollo in December 2008 in connection with the settlement of litigation related to our terminated merger agreement with Hexion Specialty Chemicals, Inc. The total purchase amount was approximately $382 million. The convertible notes would have been convertible into approximately 31.8 million shares of Huntsman common stock. This early extinguishment of the convertible notes resulted in a loss on extinguishment of debt of approximately $146 million in the first quarter of 2010.
On March 9, 2010, we entered into an amendment to our existing bank credit facilities. Among other things the amendment limits the aggregate amount of revolving commitments allowable under the revolving credit facility to an amount up to $300 million, including $225 million currently committed by our lenders and extends the maturity to 2014. As of March 31, 2010 we had no borrowings however, we had approximately $40 million (U.S. dollar equivalents) of letters of credit and bank guarantees issued and outstanding under our revolving credit facility
On March 17, 2010, we completed a $350 million offering of senior subordinated notes due 2020 through our wholly owned subsidiary, Huntsman International LLC. We used the net proceeds of the notes to refinance approximately euro 184 million of senior subordinated notes due 2013 and approximately euro 59 million of senior subordinated notes due 2015.
On April 26, 2010, we prepaid $164 million of outstanding Term Loans.
Below is our outstanding debt:
March 31, December 31,
In millions 2010 2009(a)
Debt:
Senior Credit Facilities $ 1,950 $ 1,968
Accounts Receivable Programs(a) 242 254
Senior Notes 438 434
Subordinated Notes 1,268 1,294
Other Debt 277 280
Convertible Notes - 236
Total Debt - excluding affiliates 4,175 4,466
Total Cash 1,118 1,750
Net Debt- excluding affiliates $ 3,057 $ 2,716
(a) Effective January 1, 2010, as a result of changes in accounting
guidelines, our off-
balance sheet accounts receivable securitization programs are now reported
on
balance sheet as secured debt. December 31, 2009 figures are presented on
a pro-forma basis to reflect this change.
Huntsman Corporation
Reconciliation of Adjustments
Net Income (Loss)
Attributable to
Huntsman Diluted Income (Loss)
EBITDA Corporation Per Share
Three months ended Three months ended Three months ended
March 31, March 31, March 31,
In
millions,
except per
share
amounts 2010 2009 2010 2009 2010 2009
GAAP $ (55) $ 30 $ (172) $ (290) $ (0.73) $ (1.24)
Adjustments:
Loss on accounts
receivable
securitization
programs - 4 - - - -
Unallocated
foreign currency
gain (1) (2) (6) - (0.03) -
Loss on early
extinguishment
of debt 155 - 143 - 0.61 -
Other
restructuring,
impairment and
plant closing
costs 3 14 2 14 0.01 0.06
Expenses
associated with
the
Terminated
Merger and
related
litigation - 7 - 4 - 0.02
Discount
amortization on
settlement
financing
associated with
the
Terminated
Merger - - 4 - 0.02 -
Acquisition
related expenses - 1 - 1 - -
Loss from
discontinued
operations,
net of tax(2) 21 3 13 4 0.06 0.02
Adjusted(1) $ 123 $ 57 $ (16) $ (267) $ (0.07) $ (1.14)
Discontinued
operations $ (21) $ (3) $ (13) $ (4) $ (0.06) $ (0.02)
Restructuring,
impairment and
plant
closing costs 5 - 3 - 0.01 -
Loss (gain) on
disposition of
assets 8 (4) 5 (3) 0.02 (0.01)
Gain on
hurricane
insurance
settlement (7) - (4) - (0.02) -
Adjusted
discontinued
operations(1)(2) $ (15) $ (7) $ (9) $ (7) $ (0.04) $ (0.03)
Total - adjusted
continuing and
discontinued
operations $ 108 $ 50 $ (25) $ (274) $ (0.11) $ (1.17)
Three months ended December 31,
In millions 2009
Net income attributable to Huntsman Corporation 66
Interest expense, net 60
Income tax benefit from continuing operations (73)
Income tax benefit from discontinued operations
(2) (10)
Depreciation and amortization 104
EBITDA(1) $ 147
Net Income (Loss)
Attributable to Diluted Income
Huntsman (Loss)
EBITDA Corporation Per Share
In millions, Three months
except per share ended Three months ended Three months ended
amounts December 31, 2009 December 31, 2009 December 31, 2009
GAAP $ 147 $ 66 $ 0.26
Adjustments:
Loss on accounts
receivable
securitization
programs 10 - -
Unallocated foreign
currency gain (1) (3) (0.01)
Other restructuring,
impairment
and plant closing
costs 5 4 0.01
Discount amortization
on
settlement financing
associated
with the Terminated
Merger - 5 0.02
Acquisition related
income (9) (6) (0.02)
Loss from
discontinued
operations, net of
tax(2) 28 19 0.07
Extraordinary gain on
the
acquisition of a
business, net of
tax(3) (6) (6) (0.02)
Adjusted $ 174 $ 79 $ 0.31
Discontinued
operations $ (28) $ (19) $ (0.07)
Other restructuring,
impairment
and plant closing
costs 8 3 0.01
Gain on disposition
of assets (6) (4) (0.01)
Loss on partial fire
insurance
settlement 17 11 0.04
Adjusted discontinued
operations(2) $ (9) $ (9) $ (0.03)
Total - adjusted
continuing and
discontinued
operations $ 165 $ 70 $ 0.27
See end of press release for footnote explanations
Conference Call Information
We will hold a conference call to discuss our 2010 first quarter results on Friday, May 7, 2010 at 10:00 a.m. ET.
Call-in number for U.S. participants: (888) 713 - 4209 Call-in number for international participants: (617) 213 - 4863 Participant access code: 75478626
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=PAUV3KHBY
The conference call will be available via webcast and can be accessed from the investor relations portion of the company's website at http://www.huntsman.com.
The conference call will be available for replay beginning May 7, 2010 and ending May 14, 2010.
Call-in numbers for the replay: Within the U.S.: (888) 286 - 8010 International: (617) 801 - 6888 Access code for replay: 97188446
About Huntsman:
Huntsman is a global manufacturer and marketer of differentiated chemicals. Its operating companies manufacture products for a variety of global industries, including chemicals, plastics, automotive, aviation, textiles, footwear, paints and coatings, construction, technology, agriculture, health care, detergent, personal care, furniture, appliances and packaging. Originally known for pioneering innovations in packaging and, later, for rapid and integrated growth in petrochemicals, Huntsman has approximately 11,000 employees and operates from multiple locations worldwide. The Company had 2009 revenues of approximately $8 billion. 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.
We use EBITDA, Adjusted EBITDA, Adjusted EBITDA from discontinued
operations, Adjusted net income and Adjusted net income from discontinued
(1) operations. 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. We believe that income (loss) from discontinued
operations is the performance measure calculated and presented in
accordance with GAAP that is most directly comparable to Adjusted EBITDA
from discontinued operations and Adjusted net income from discontinued
operations. 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 the operating
results table above.
Adjusted EBITDA is computed by eliminating the following from EBITDA: gains
and losses from discontinued operations; restructuring, impairment and
plant closing (credits) costs; income and expense associated with the
Terminated merger and related litigation; acquisition related expenses;
losses on the sale of accounts receivable to our securitization program;
unallocated foreign currency (gain) loss; certain legal and contract
settlements; losses from early extinguishment of debt; extraordinary loss
(gain) on the acquisition of a business; and loss (gain) on disposition of
business/assets. The reconciliation of Adjusted EBITDA to EBITDA is set
forth in the Reconciliation of Adjustments table above.
Adjusted EBITDA from discontinued operations is computed by eliminating the
following from income (loss) from discontinued operations: income taxes;
depreciation and amortization; restructuring, impairment and plant closing
(credits) costs; losses on the sale of accounts receivable to our
securitization program; unallocated foreign currency (gain) loss; gain on
partial fire insurance settlement; and (gain) loss on disposition of
business/assets. The following table provides a reconciliation of Adjusted
EBITDA from discontinued operations to income (loss) from discontinued
operations:
Three months ended March 31,
In millions 2010 2009
Net loss from discontinued operations, net of tax $ (13) $ (4)
Income tax (benefit) expense (8) 1
EBITDA from discontinued operations (21) (3)
Restructuring, impairment and plant closing costs 5 -
Loss (gain) on disposition of assets 8 (4)
Gain on hurricane insurance settlement (7) -
Adjusted EBITDA from discontinued operations $ (15) $ (7)
Adjusted net income (loss) is computed by eliminating the after tax impact
of the following items from net income (loss) attributable to Huntsman
Corporation: loss (income) from discontinued operations; restructuring,
impairment and plant closing (credits) costs; income and expense associated
with the Terminated merger and related litigation; discount amortization on
settlement financing associated with the Terminated merger; acquisition
related expenses; unallocated foreign currency (gain) loss; certain legal
and contract settlements; losses on the early extinguishment of debt;
extraordinary loss (gain) on the acquisition of a business; and loss (gain)
on disposition of business/assets. The reconciliation of adjusted net
income (loss) to net income (loss) attributable to Huntsman Corporation
common stockholders is set forth in the Reconciliation of Adjustments table
above.
Adjusted net income (loss) from discontinued operations is computed by
eliminating the after tax impact of the following items from income (loss)
from discontinued operations: restructuring, impairment and plant closing
(credits) costs; gain on partial fire insurance settlement; and (gain) loss
on the disposition of business/assets. The reconciliation of Adjusted net
income (loss) from discontinued operations to net income (loss)
attributable to Huntsman Corporation is set forth in the Reconciliation of
Adjustments table above.
(2) On August 1, 2007, we completed the sale of our U.S. polymers business to
Flint Hills Resources. On November 5, 2007, we completed the sale of our
U.S. base chemicals business to Flint Hills Resources. Results from these
businesses are treated as discontinued operations. Division EBITDA from
discontinued operations only includes the results of our U.S. base
chemicals and U.S. polymers businesses. During the first quarter 2010 we
closed our Australian styrenics operations.
(3) On June 30, 2006, we acquired the global textile effects business of Ciba
Specialty Chemicals Inc. for approximately $172 million. Because the fair
value of acquired current assets less liabilities assumed exceeded the
acquisition price and planned restructuring costs, the excess was recorded
as an extraordinary gain on the acquisition of a business.
SOURCE Huntsman Corporation
Released May 7, 2010