Three months ended

March 31,

December 31,

In millions, except per share amounts, unaudited

2014

2013

2013

Revenues

$2,755

$2,702

$          2,705

Net income (loss) attributable to Huntsman Corporation

$     54

$    (24)

$               41

Adjusted net income⁽¹⁾

$   105

$      46

$             118

Diluted income (loss) per share

$  0.22

$ (0.10)

$            0.17

Adjusted diluted income per share⁽¹⁾

$  0.43

$  0.19

$            0.48

EBITDA⁽¹⁾

$   261

$   112

$             225

Adjusted EBITDA⁽¹⁾

$   329

$   220

$             313

See end of press release for footnote explanations

Call-in numbers for the conference call:

U.S. participants

(888) 713 - 4214

International participants 

(617) 213 - 4866

Passcode

60716193

Call-in numbers for the replay:

U.S. participants                      

(888) 286 - 8010

International participants             

(617) 801 - 6888

Replay code                              

10497006

Table 1 – Results of Operations

Three months ended

March 31,

In millions, except per share amounts, unaudited

2014

2013

Revenues

$2,755

$2,702

Cost of goods sold

2,305

2,353

Gross profit

450

349

Operating expenses

261

255

Restructuring, impairment and plant closing costs

39

44

Operating income

150

50

Interest expense

(48)

(51)

Equity in income of investment in unconsolidated affiliates

2

1

Loss on early extinguishment of debt

-

(35)

Other income

1

-

Income (loss) before income taxes

105

(35)

Income tax (expense) benefit

(36)

20

Income (loss) from continuing operations

69

(15)

Loss from discontinued operations, net of tax⁽²⁾

(7)

(2)

Net income (loss)

62

(17)

Net income attributable to noncontrolling interests, net of tax

(8)

(7)

Net income (loss) attributable to Huntsman Corporation

Adjusted EBITDA⁽¹⁾

$   329

$   220

Adjusted net income⁽¹⁾

$   105

$     46

Basic income (loss) per share

$  0.22

$ (0.10)

Diluted income (loss) per share

$  0.22

$ (0.10)

Adjusted diluted income per share⁽¹⁾

$  0.43

$  0.19

Common share information:

   Basic shares outstanding

240.9

239.0

   Diluted shares

244.5

239.0

   Diluted shares for adjusted diluted income per share

244.5

241.8

See end of press release for footnote explanations

Table 2 – Results of Operations by Segment

Three months ended

March 31,

Better /

(Worse)

In millions, unaudited

2014

2013

Segment Revenues:

   Polyurethanes

$1,200

$1,182

2%

   Performance Products

765

722

6%

   Advanced Materials

319

336

(5)%

   Textile Effects

224

188

19%

   Pigments

318

330

(4)%

   Eliminations and other

(71)

(56)

(27)%

   Total

$2,755

$2,702

2%

Segment Adjusted EBITDA⁽¹⁾:

   Polyurethanes

$   167

$   178

(6)%

   Performance Products

118

54

119%

   Advanced Materials

46

27

70%

   Textile Effects

16

(3)

NM

   Pigments

26

9

189%

   Corporate, LIFO and other

(44)

(45)

2%

   Total

$   329

$   220

50%

See end of press release for footnote explanations

NM—Not meaningful

Table 3 – Factors Impacting Sales Revenues

Three months ended

March 31, 2014 vs. 2013

Average Selling Price^(a)

Local

Exchange

Sales Mix

Sales

Unaudited

Currency

Rate

& Other

Volume^(b)

Total

Polyurethanes

(4)%

----

1%

5%

2%

Performance Products

2%

----

(10)%

14%

6%

Advanced Materials

6%

(1)%

6%

(16)%

(5)%

Textile Effects

15%

(2)%

2%

4%

19%

Pigments

(5)%

1%

----

----

(4)%

Total Company

(2)%

----

(4)%

8%

2%

(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 Income (loss) 

 Diluted Income 

 EBITDA 

 Expense 

 Attrib. to HUN Corp. 

 Per Share 

Three months ended

Three months ended

Three months ended

Three months ended

March 31,

March 31,

March 31,

March 31,

In millions, except per share amounts, unaudited

2014

2013

2014

2013

2014

2013

2014

2013

GAAP⁽¹⁾

$    261

$    112

$   (36)

$    20

$   54

$           (24)

$  0.22

$ (0.10)

Adjustments:

   Acquisition expenses and purchase accounting inventory adjustments

8

3

(2)

(1)

6

2

0.02

0.01

   Loss from discontinued operations, net of tax⁽²⁾

7

3

 N/A 

 N/A 

7

2

0.03

0.01

   Discount amortization on settlement financing associated with the terminated merger

 N/A 

 N/A 

-

(1)

-

2

-

0.01

   Loss on early extinguishment of debt

-

35

-

(13)

-

22

-

0.09

   Certain legal settlements and related expenses

-

2

-

(1)

-

1

-

-

   Amortization of pension and postretirement actuarial losses

13

19

(4)

(7)

9

12

0.04

0.05

   Restructuring, impairment and plant closing and transition costs

40

46

(11)

(17)

29

29

0.12

0.12

Adjusted⁽¹⁾

$    329

$    220

$   (53)

$   (20)

$ 105

$            46

$  0.43

$  0.19

Adjusted income tax expense

53

20

Net income attributable to noncontrolling interests, net of tax

8

7

Adjusted pre-tax income⁽¹⁾

$ 166

$            73

Adjusted effective tax rate

32%

27%

 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

December 31,

December 31,

December 31,

December 31,

In millions, except per share amounts, unaudited

2013

2013

2013

2013

GAAP⁽¹⁾

$    225

$   (20)

$   41

$  0.17

Adjustments:

   Acquisition expenses and purchase accounting inventory adjustments

7

(3)

4

0.02

   Loss from discontinued operations, net of tax⁽²⁾

2

 N/A 

1

-

   Discount amortization on settlement financing associated with the terminated merger

 N/A 

(1)

1

-

   Loss on early extinguishment of debt

16

(6)

10

0.04

   Certain legal settlements and related expenses

1

-

1

-

   Amortization of pension and postretirement actuarial losses

18

(7)

11

0.05

   Restructuring, impairment and plant closing and transition costs

44

5

49

0.20

Adjusted⁽¹⁾

$    313

$   (32)

$ 118

$  0.48

Adjusted income tax expense

32

Net income attributable to noncontrolling interests, net of tax

1

Adjusted pre-tax income⁽¹⁾

$ 151

Adjusted effective tax rate

21%

See end of press release for footnote explanations

Table 5 – Reconciliation of Net Income (Loss) to EBITDA

Three months ended

March 31,

December 31,

In millions, unaudited

2014

2013

2013

Net income (loss) attributable to Huntsman Corporation

$  54

$ (24)

$               41

Interest expense

48

51

44

Income tax expense (benefit) from continuing operations

36

(20)

20

Income tax benefit from discontinued operations⁽²⁾

-

(2)

(2)

Depreciation and amortization

123

107

122

EBITDA⁽¹⁾

$261

$112

$             225

See end of press release for footnote explanations

Table 6 – Selected Balance Sheet Items

March 31,

December 31,

In millions

2014

2013

(unaudited)

Cash

$      286

$             529

Accounts and notes receivable, net

1,724

1,575

Inventories

1,911

1,741

Other current assets

307

314

Property, plant and equipment, net

3,794

3,824

Other assets

1,205

1,205

Total assets

$    9,227

$          9,188

Accounts payable

$    1,185

$          1,113

Other current liabilities

760

769

Current portion of debt

270

277

Long-term debt

3,621

3,633

Other liabilities

1,214

1,267

Total equity

2,177

2,129

Total liabilities and equity

$    9,227

$          9,188

Table 7 – Outstanding Debt

March 31,

December 31,

In millions

2014

2013

(unaudited)

Debt:

   Senior credit facilities

$    1,338

$         1,351

   Accounts receivable programs

247

248

   Senior notes

1,060

1,061

   Senior subordinated notes

891

891

   Variable interest entities

238

247

   Other debt

117

112

Total debt - excluding affiliates

3,891

3,910

Total cash

286

529

Net debt- excluding affiliates

$    3,605

$         3,381

Table 8 – Summarized Statement of Cash Flows

Three months ended

March 31,

In millions, unaudited

2014

2013

Total cash at beginning of period

$ 529

$396

Net cash used in operating activities

(67)

(74)

Net cash used in investing activities

(104)

(85)

Net cash (used in) provided by financing activities

(71)

21

Effect of exchange rate changes on cash

(1)

(2)

Total cash at end of period

$ 286

$256

Supplemental cash flow information:

   Cash paid for interest

$  (56)

$ (59)

   Cash paid for income taxes

(46)

(17)

   Cash paid for capital expenditures

(107)

(89)

   Depreciation and amortization

123

107

   Changes in primary working capital:

   Accounts and notes receivable

(149)

(85)

   Inventories

(172)

(9)

   Accounts payable

107

10

$(214)

$ (84)

Footnotes

(1)

We use EBITDA and adjusted EBITDA to measure the operating performance of our business.  We provide adjusted net income because we feel it provides meaningful insight for the investment community into the performance of our business.  We believe that net income (loss) attributable to Huntsman Corporation is the performance measure calculated and presented in accordance with generally accepted accounting principles in the U.S. ("GAAP") that is most directly comparable to EBITDA, adjusted EBITDA and adjusted net income.  Additional information with respect to our use of each of these financial measures follows:

EBITDA is defined as net income (loss) attributable to Huntsman Corporation before interest, income taxes, and depreciation and amortization. EBITDA as used herein is not necessarily comparable to other similarly titled measures of other companies. The reconciliation of EBITDA to net income (loss) attributable to Huntsman Corporation is set forth in Table 5 above.

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

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

(2)

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