HUNTSMAN CORPORATION 
By THE WOODLANDS, Texas, Aug. 4, 2011 /PRNewswire/ -- Huntsman Corporation (NYSE: HUN)
Second Quarter 2011 Highlights
-- Revenues for the second quarter of 2011 were $2,934 million, an increase
of 25% compared to $2,343 million for the same period in 2010 and an
increase of 10% compared to $2,679 million for the first quarter of
2011.
-- Adjusted EBITDA for the second quarter of 2011 was $318 million, an
increase of 24% compared to $257 million for the same period in 2010 and
an increase of 5% compared to $302 million for the first quarter of
2011.
-- Adjusted net income for the second quarter of 2011 was $117 million or
$0.48 per diluted share. This compares to adjusted net income of $75
million or $0.31 per diluted share for the same period in 2010 and
adjusted net income of $114 million or $0.47 per diluted share for the
first quarter of 2011.
-- Net income attributable to Huntsman Corporation for the second quarter
of 2011 was $114 million or $0.47 per diluted share. This compares to
net income attributable to Huntsman Corporation of $114 million or $0.47
per diluted share for the same period in 2010 and net income
attributable to Huntsman Corporation of $62 million or $0.26 per diluted
share for the first quarter of 2011.
Summarized earnings are as follows:
Three months ended June 30,
---------------------------
In millions, except per share
amounts 2011 2010
----------------------------- ---- ----
Net income (loss) attributable
to Huntsman Corporation $114 $114
Adjusted net income(1) $117 $75
Diluted income (loss) per
share $0.47 $0.47
Adjusted diluted income per
share(1) $0.48 $0.31
EBITDA(1) $323 $331
Adjusted EBITDA(1) $318 $257
See end of press release for
footnote explanations
Three months
ended Six months ended June 30,
------------ -------------------------
In millions, except per
share amounts March 31, 2011 2011 2010
----------------------- -------------- ---- ----
Net income (loss)
attributable to
Huntsman Corporation $62 $176 $(58)
Adjusted net income(1) $114 $231 $59
Diluted income (loss)
per share $0.26 $0.72 $(0.25)
Adjusted diluted income
per share(1) $0.47 $0.95 $0.25
EBITDA(1) $239 $562 $276
Adjusted EBITDA(1) $302 $620 $380
See end of press release
for footnote
explanations
Recent Highlights
-- Effective May 5, 2011, Mary C. Beckerle, Ph.D. was appointed as a new
director to our Board of Directors and serves as a member of the Board's
Nominating and Corporate Governance Committee. Dr. Beckerle is an
internationally recognized scientist.
-- On April 2, 2011, we completed the acquisition of the Indian chemicals
business of Laffans Petrochemicals Ltd. The business manufactures
amines and surfactants for use in the fast growing Asia Pacific region.
Peter R. Huntsman, our President and CEO, commented:
"Our second quarter 2011 revenues increased 25% compared to the prior year as a result of improvements in both pricing and demand. Despite inflation in raw material and other manufacturing costs our Adjusted EBITDA improved 24% compared to the prior year."
He added, "Given the sluggish global economic recovery, I am very pleased with the improving results of this past quarter. When combined with our strong performance from the first quarter, the first half of the year was one of the strongest in our company's history. With new growth projects and many of our products experiencing higher capacity utilization rates, we are optimistic about the second half of the year as underlying trends for our major businesses continue to improve."
Huntsman Corporation
Operating Results
Three months ended June 30,
In millions, except per share amounts 2011 2010
------------------------------------- ---- ----
Revenues $2,934 $2,343
Cost of goods sold 2,433 1,958
----- -----
Gross profit 501 385
Operating expenses 272 241
Restructuring, impairment and plant
closing costs 9 17
--- ---
Operating income 220 127
Interest expense, net (65) (43)
Equity in income of investment in
unconsolidated affiliates 2 16
Loss on early extinguishment of debt - (7)
Expenses associated with the
terminated merger and related
litigation - (1)
Other income 1 1
Income (loss) before income taxes 158 93
Income tax expense (34) (39)
--- ---
Income (loss) from continuing
operations 124 54
(Loss) income from discontinued
operations, net of tax(2) (1) 62
Extraordinary gain on the acquisition
of a business, net of tax of nil 1 -
--- ---
Net income (loss) 124 116
Net income attributable to
noncontrolling interests, net of tax (10) (2)
--- ---
Net income (loss) attributable to
Huntsman Corporation $114 $114
==== ====
Net income (loss) attributable to
Huntsman Corporation $114 $114
Interest expense, net 65 43
Income tax expense from continuing
operations 34 39
Income tax (benefit) expense from
discontinued operations(2) (1) 37
Depreciation and amortization of
continuing operations 111 97
Depreciation and amortization of
discontinued operations(2) - 1
EBITDA(1) $323 $331
Adjusted EBITDA(1) $318 $257
Basic income (loss) per share $0.48 $0.48
Diluted income (loss) per share $0.47 $0.47
Adjusted diluted income per share(1) $0.48 $0.31
Common share information:
Basic shares outstanding 239.4 236.4
Diluted shares 243.7 240.8
Diluted shares for adjusted diluted
income per share 243.7 240.8
See end of press release for footnote
explanations
Six months ended June 30,
In millions, except per share amounts 2011 2010
------------------------------------- ---- ----
Revenues $5,613 $4,437
Cost of goods sold 4,652 3,771
----- -----
Gross profit 961 666
Operating expenses 563 497
Restructuring, impairment and plant closing
costs 16 20
--- ---
Operating income 382 149
Interest expense, net (124) (104)
Equity in income of investment in
unconsolidated affiliates 4 17
Loss on early extinguishment of debt (3) (162)
Expenses associated with the terminated
merger and related litigation - (1)
Other income 1 1
--- ---
Income (loss) before income taxes 260 (100)
Income tax expense (56) (5)
--- ---
Income (loss) from continuing operations 204 (105)
(Loss) income from discontinued operations,
net of tax(2) (15) 49
Extraordinary gain on the acquisition of a
business, net of tax of nil 2 -
--- ---
Net income (loss) 191 (56)
Net income attributable to noncontrolling
interests, net of tax (15) (2)
Net income (loss) attributable to Huntsman
Corporation $176 $(58)
==== ====
Net income (loss) attributable to Huntsman
Corporation $176 $(58)
Interest expense, net 124 104
Income tax expense from continuing
operations 56 5
Income tax (benefit) expense from
discontinued operations(2) (8) 29
Depreciation and amortization of continuing
operations 214 195
Depreciation and amortization of
discontinued operations(2) - 1
--- ---
EBITDA(1) $562 $276
Adjusted EBITDA(1) $620 $380
Basic income (loss) per share $0.74 $(0.25)
Diluted income (loss) per share $0.72 $(0.25)
Adjusted diluted income per share(1) $0.95 $0.25
Common share information:
Basic shares outstanding 238.5 235.6
Diluted shares 243.2 235.6
Diluted shares for adjusted diluted income
per share 243.2 240.8
See end of press release for footnote
explanations
Huntsman Corporation
Segment Results
Three months ended June 30, Percent
In millions 2011 2010 Change
----------- ---- ---- ------
Segment Revenues:
Polyurethanes $1,135 $932 22%
Performance Products 896 669 34%
Advanced Materials 360 320 13%
Textile Effects 200 213 (6)%
Pigments 424 287 48%
Eliminations and
other (81) (78) 4%
--- ---
Total $2,934 $2,343 25%
====== ======
Segment EBITDA(1):
Polyurethanes $142 $69 106%
Performance Products 113 116 (3)%
Advanced Materials 28 51 (45)%
Textile Effects (7) (7) -
Pigments 112 47 138%
Corporate, LIFO and
other (63) (45) 40%
Discontinued
operations(2) (2) 100 NM
Total $323 $331 (2)%
==== ====
Segment Adjusted
EBITDA(1):
Polyurethanes $143 $70 104%
Performance Products 102 116 (12)%
Advanced Materials 31 51 (39)%
Textile Effects (7) 8 NM
Pigments 115 49 135%
Corporate, LIFO and
other (66) (37) 78%
--- ---
Total $318 $257 24%
==== ====
Six months ended June 30, Percent
In millions 2011 2010 Change
----------- ---- ---- ------
Segment Revenues:
Polyurethanes $2,182 $1,699 28%
Performance Products 1,700 1,285 32%
Advanced Materials 710 611 16%
Textile Effects 390 408 (4)%
Pigments 788 556 42%
Eliminations and
other (157) (122) 29%
---- ----
Total $5,613 $4,437 27%
====== ======
Segment EBITDA(1):
Polyurethanes $256 $121 112%
Performance Products 228 176 30%
Advanced Materials 67 84 (20)%
Textile Effects (18) (7) 157%
Pigments 196 75 161%
Corporate, LIFO and
other (144) (252) (43)%
Discontinued
operations(2) (23) 79 NM
Total $562 $276 104%
==== ====
Segment Adjusted
EBITDA(1):
Polyurethanes $257 $122 111%
Performance Products 217 176 23%
Advanced Materials 70 82 (15)%
Textile Effects (13) 8 NM
Pigments 202 78 159%
Corporate, LIFO and
other (113) (86) 31%
---- ---
Total $620 $380 63%
==== ====
See end of press release for footnote explanations
NM-Not meaningful
Three months ended June 30,
2011 vs. 2010
-------------
Period-Over-Period Average Selling Price(a)
-----------------------
Increase Foreign
(Decrease) Local Currency
Translation
Currency Impact
-------- ------------
Polyurethanes 20% 4%
Performance
Products 23% 4%
Advanced Materials 8% 6%
Textile Effects - 5%
Pigments 35% 7%
Total Company 19% 5%
--- ---
Three months ended June 30,
2011 vs. 2010
-------------
Period-Over-Period
Increase
(Decrease) Sales Sales
Mix(a) Volume(a)
----- --------
Polyurethanes - 2%
Performance
Products - 6%
Advanced Materials 2% (4)%
Textile Effects - (11)%
Pigments - 8%
Total Company (2)% 4%
--- ---
Six months ended June 30,
2011 vs. 2010
-------------
Period-Over-Period Average Selling Price(a)
-----------------------
Increase Foreign
(Decrease) Local Currency
Translation
Currency Impact
-------- ------------
Polyurethanes 18% 2%
Performance
Products 20% 2%
Advanced Materials 8% 3%
Textile Effects 2% 3%
Pigments 30% 4%
Total Company 15% 3%
--- ---
Six months ended June 30,
2011 vs. 2010
-------------
Period-Over-Period
Increase
(Decrease) Sales Sales
Mix(a) Volume(a)
----- --------
Polyurethanes (7)% 19%
Performance
Products 1% 9%
Advanced Materials 4% 1%
Textile Effects - (9)%
Pigments - 9%
Total Company (2)% 13%
--- ---
(a) Excludes revenues and sales volumes from tolling and by-products
Three Months Ended June 30, 2011 Compared to Three Months Ended June 30, 2010
Revenues for the three months ended June 30, 2011 increased to $2,934 million from $2,343 million for the same period in 2010. For the three months ended June 30, 2011, Adjusted EBITDA was $318 million compared to $257 million for the same period in 2010.
Polyurethanes
The increase in revenues in our Polyurethanes division for the three months ended June 30, 2011 compared to the same period in 2010 was primarily due to higher average selling prices and higher sales volumes. Average MDI and PO/MTBE selling prices increased primarily in response to higher raw material costs and the strength of major European currencies against the U.S. dollar. MDI sales volumes increased primarily due to improved demand in the insulation and automotive sectors and stronger regional demand in the Americas and Asia. The increase in Adjusted EBITDA was primarily due to higher contribution margins and higher sales volumes.
Performance Products
The increase in revenues in our Performance Products division for the three months ended June 30, 2011 compared to the same period in 2010 was due to higher average selling prices and higher sales volumes. Average selling prices increased across almost all product groups primarily in response to higher raw material costs and the strength of major European currencies and the Australian dollar against the U.S. dollar. Sales volumes increased primarily due to the impact from the consolidation of our Sasol-Huntsman maleic anhydride joint venture during the second quarter 2011 and more production from our Arabian Amines Company joint venture which was starting up in the second quarter 2010. The decrease in Adjusted EBITDA was primarily due to a nonrecurring $15 million credit recorded in the second quarter of 2010 to appropriately reflect our investment in the Sasol-Huntsman maleic anhydride joint venture.
Advanced Materials
The increase in revenues in our Advanced Materials division for the three months ended June 30, 2011 compared to the same period in 2010 was primarily due to higher average selling prices partially offset by lower sales volumes. Average selling prices increased primarily in response to higher raw material costs and the strength of major European currencies against the U.S. dollar. Sales volumes decreased in our base resins business partially offset by an increase in combined sales volumes in our core formulation systems and specialty components businesses. The decrease in Adjusted EBITDA was primarily due to lower contribution margins and higher manufacturing and selling, general and administrative costs.
Textile Effects
The decrease in revenues in our Textile Effects division for the three months ended June 30, 2011 compared to the same period in 2010 was primarily due to lower sales volumes partially offset by higher average selling prices. Sales volumes decreased due to lower demand and customer manufacturing constraints. Average selling prices increased primarily due to the strength of major European currencies against the U.S. dollar. The decrease in Adjusted EBITDA was primarily due to lower sales volumes and the foreign currency impact of a stronger Swiss franc against the U.S. dollar on our manufacturing and selling, general and administrative costs.
Pigments
The increase in revenues in our Pigments division for the three months ended June 30, 2011 compared to the same period in 2010 was due to higher average selling prices and higher sales volumes. Average selling prices increased in all regions of the world primarily as a result of higher raw material costs and stronger overall market demand. Sales volumes increased primarily due to increased global demand, particularly in the Asia Pacific and Africa, Latin America and Middle East regions. The increase in Adjusted EBITDA in our Pigments division was primarily due to higher contribution margins and higher sales volumes partially offset by higher manufacturing and selling, general and administrative costs.
Corporate, LIFO and Other
Corporate, LIFO and other includes unallocated corporate overhead, unallocated foreign exchange gains and losses, LIFO inventory valuation reserve adjustments, loss on early extinguishment of debt, unallocated restructuring costs, gain and loss on the disposition of assets and non-operating income and expense. Adjusted EBITDA from Corporate, LIFO and other decreased by $29 million to a loss of $66 million for the three months ended June 30, 2011 compared to a loss of $37 million for the same period in 2010. The decrease in Adjusted EBITDA was primarily the result of a $14 million increase in LIFO inventory valuation expense ($11 million of loss in 2011 compared to $3 million gain in 2010) and higher selling, general and administrative costs.
Income Taxes
During the three months ended June 30, 2011 we recorded income tax expense of $34 million compared to $39 million in the same period in 2010. Our adjusted effective income tax rate for the three months ended June 30, 2011 was approximately 20%. We expect our long term effective income tax rate to be approximately 30 - 35%. We have tax valuation allowances in countries such as Switzerland and the United Kingdom where our Textile Effects and Pigments businesses have meaningful operations. The increase in profitability from our Pigments business has had the effect of reducing our adjusted effective income tax rate. During the three months ended June 30, 2011 we paid $30 million in cash for income taxes. We expect our cash tax rate to continue to be less than our effective income tax rate.
Liquidity, Capital Resources and Outstanding Debt
As of June 30, 2011, we had $1,231 million of combined cash and unused borrowing capacity compared to $1,434 million at December 31, 2010. The decrease from 2010 year end was primarily attributable to an increase in primary net working capital of $395 million and the early redemption of $100 million of our senior subordinated notes with available cash in January, partially offset by cash generated from earnings.
In April 2011, we completed amendments to our U.S. and European accounts receivable securitization programs. These amendments included an extension of the maturity date to April 2014 and a reduction in the applicable margin on borrowing under these programs.
On July 25, 2011 we redeemed an additional $75 million of our senior subordinated notes with cash.
Total capital expenditures, net of reimbursements for the three months ended June 30, 2011 were $61 million compared to $7 million for the same period in 2010. We expect to spend approximately $350 million on capital expenditures, net of reimbursements, in 2011.
June 30, December 31,
In millions 2011 2010
----------- ---- ----
Debt:
Senior Credit Facilities $1,692 $1,688
Accounts Receivable
Programs 254 238
Senior Notes 462 452
Subordinated Notes 1,198 1,279
Variable interest
entities 313 200
Other Debt 256 289
Total Debt -excluding
affiliates 4,175 4,146
----- -----
Total Cash 690 973
--- ---
Net Debt- excluding
affiliates $3,485 $3,173
====== ======
Huntsman Corporation
Reconciliation of Adjustments
EBITDA
Three months ended
June 30,
In millions, except per share amounts 2011 2010
------------------------------------- ---- ----
GAAP(1) $323 $331
Adjustments:
Unallocated foreign currency (gain) loss (3) -
Loss on early extinguishment of debt - 7
Gain on consolidation of a variable interest
entity (12) -
Other restructuring, impairment and plant closing
costs 9 17
Expenses associated with the terminated merger
and related litigation - 1
Discount amortization on settlement financing
associated with the terminated merger - -
Acquisition related expenses 3 1
Gain on disposition of businesses/assets (3) -
Loss (income) from discontinued operations, net
of tax(2) 2 (100)
Extraordinary gain on the acquisition of a
business, net of tax (1) -
Adjusted(1) $318 $257
Discontinued operations $(2) $100
Gain on disposition of assets - (3)
Gain on insurance settlements, net of expenses - (103)
Adjusted discontinued operations(1)(2) $(2) $(6)
Total -adjusted continuing and discontinued
operations $316 $251
---- ----
Net Income (Loss)
Attributable to
Huntsman
Corporation
Three months ended
June 30,
In millions, except per share amounts 2011 2010
------------------------------------- ---- ----
GAAP(1) $114 $114
Adjustments:
Unallocated foreign currency (gain) loss 1 (4)
Loss on early extinguishment of debt - 4
Gain on consolidation of a variable interest
entity (10) -
Other restructuring, impairment and plant closing
costs 8 17
Expenses associated with the terminated merger
and related litigation - 1
Discount amortization on settlement financing
associated with the terminated merger 5 4
Acquisition related expenses 2 1
Gain on disposition of businesses/assets (3) -
Loss (income) from discontinued operations, net
of tax(2) 1 (62)
Extraordinary gain on the acquisition of a
business, net of tax (1) -
Adjusted(1) $117 $75
Discontinued operations $(1) $62
Gain on disposition of assets - (4)
Gain on insurance settlements, net of expenses - (64)
Adjusted discontinued operations(1)(2) $(1) $(6)
Total -adjusted continuing and discontinued
operations $116 $69
---- ---
Diluted Income (Loss)
Per Share
Three months ended
June 30,
In millions, except per share amounts 2011 2010
------------------------------------- ---- ----
GAAP(1) $0.47 $0.47
Adjustments:
Unallocated foreign currency (gain) loss - (0.02)
Loss on early extinguishment of debt - 0.02
Gain on consolidation of a variable
interest entity (0.04) -
Other restructuring, impairment and plant
closing costs 0.03 0.07
Expenses associated with the terminated
merger and related litigation - -
Discount amortization on settlement
financing associated with the terminated
merger 0.02 0.02
Acquisition related expenses 0.01 -
Gain on disposition of businesses/assets (0.01) -
Loss (income) from discontinued operations,
net of tax(2) - (0.26)
Extraordinary gain on the acquisition of a
business, net of tax - -
Adjusted(1) $0.48 $0.31
----- -----
Discontinued operations $- $0.26
Gain on disposition of assets - (0.02)
Gain on insurance settlements, net of
expenses - (0.27)
Adjusted discontinued operations(1)(2) $- $(0.02)
Total -adjusted continuing and
discontinued operations $0.48 $0.29
----- -----
Three months ended
March 31,
In millions 2011
----------- ----
Net income attributable to Huntsman
Corporation 62
Interest expense, net 59
Income tax expense from continuing
operations 22
Income tax benefit from
discontinued operations(2) (7)
Depreciation and amortization of
continuing operations 103
EBITDA(1) $239
Diluted
Net Income Income
(Loss) (Loss)
Attributable
to Huntsman
Corporation Per Share
EBITDA
Three months Three months Three months
ended March ended March ended March
31, 31, 31,
In millions, except per
share amounts 2011 2011 2011
----------------------- ---- ---- ----
GAAP(1) $239 $62 $0.26
Adjustments:
Unallocated foreign
currency (gain) loss (2) 4 0.02
Legal and contract
settlements 34 21 0.09
Loss on early
extinguishment of debt 3 2 0.01
Other restructuring,
impairment and plant
closing costs 7 7 0.03
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 14 0.06
Extraordinary gain on the
acquisition of a
business, net of tax(3) (1) (1) -
Adjusted(1) $302 $114 $0.47
-----
Discontinued operations $(21) $(14) $(0.06)
Restructuring, impairment
and plant closing
credits 1 1 -
Non-recurring costs and
expenses 18 11 0.05
Adjusted discontinued
operations(1)(2) $(2) $(2) $(0.01)
Total -adjusted
continuing and
discontinued operations $300 $112 $0.46
---- ---- -----
EBITDA
Six months ended
June 30,
In millions, except per share amounts 2011 2010
------------------------------------- ---- ----
GAAP(1) $562 $276
Adjustments:
Unallocated foreign currency (gain) loss (5) (1)
Legal and contract settlements 34 -
Loss on early extinguishment of debt 3 162
Gain on consolidation of a variable interest
entity (12) -
Other restructuring, impairment and plant
closing costs 16 20
Expenses associated with the terminated
merger and related litigation - 1
Discount amortization on settlement financing
associated with the terminated merger - -
Acquisition related expenses 4 1
Gain on disposition of businesses/assets (3) -
Loss (income) from discontinued operations,
net of tax(2) 23 (79)
Extraordinary gain on the acquisition of a
business, net of tax (2) -
Adjusted(1) $620 $380
Discontinued operations $(23) $79
Restructuring, impairment and plant closing
costs 1 5
Loss on disposition of assets - 5
Non-recurring costs and expenses 18 -
Gain on insurance settlements, net of
expenses - (110)
Adjusted discontinued operations(1)(2) $(4) $(21)
Total -adjusted continuing and discontinued
operations $616 $359
---- ----
Net Income (Loss)
Attributable To
Huntsman
Corporation
Six months ended
June 30,
In millions, except per share amounts 2011 2010
------------------------------------- ---- ----
GAAP(1) $176 $(58)
Adjustments:
Unallocated foreign currency (gain) loss 5 (10)
Legal and contract settlements 21 -
Loss on early extinguishment of debt 2 147
Gain on consolidation of a variable interest
entity (10) -
Other restructuring, impairment and plant
closing costs 15 19
Expenses associated with the terminated
merger and related litigation - 1
Discount amortization on settlement financing
associated with the terminated merger 9 8
Acquisition related expenses 3 1
Gain on disposition of businesses/assets (3) -
Loss (income) from discontinued operations,
net of tax(2) 15 (49)
Extraordinary gain on the acquisition of a
business, net of tax (2) -
Adjusted(1) $231 $59
Discontinued operations $(15) $49
Restructuring, impairment and plant closing
costs 1 3
Loss on disposition of assets - 1
Non-recurring costs and expenses 11 -
Gain on insurance settlements, net of
expenses - (68)
Adjusted discontinued operations(1)(2) $(3) $(15)
Total -adjusted continuing and discontinued
operations $228 $44
---- ---
Diluted Income (Loss)
Per Share
Six months ended
June 30,
In millions, except per share amounts 2011 2010
------------------------------------- ---- ----
GAAP(1) $0.72 $(0.25)
Adjustments:
Unallocated foreign currency (gain) loss 0.02 (0.04)
Legal and contract settlements 0.09 -
Loss on early extinguishment of debt 0.01 0.61
Gain on consolidation of a variable interest
entity (0.04) -
Other restructuring, impairment and plant
closing costs 0.06 0.08
Expenses associated with the terminated
merger and related litigation - -
Discount amortization on settlement financing
associated with the terminated merger 0.04 0.03
Acquisition related expenses 0.01 -
Gain on disposition of businesses/assets (0.01) -
Loss (income) from discontinued operations,
net of tax(2) 0.06 (0.20)
Extraordinary gain on the acquisition of a
business, net of tax (0.01) -
Adjusted(1) $0.95 $0.25
----- -----
Discontinued operations $(0.06) $0.20
Restructuring, impairment and plant closing
costs - 0.01
Loss on disposition of assets - -
Non-recurring costs and expenses 0.05 -
Gain on insurance settlements, net of
expenses - (0.28)
Adjusted discontinued operations(1)(2) $(0.01) $(0.06)
Total -adjusted continuing and discontinued
operations $0.94 $0.18
----- -----
See end of press release for footnote explanations
Conference Call Information
We will hold a conference call to discuss our second quarter 2011 financial results on Thursday, August 4, 2011 at 9:00 a.m. ET.
Call-in number for U.S.
participants: (888) 713 - 4211
Call-in number for
international participants: (617) 213 - 4864
Participant access code: 82984558
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=P3Q6CNCPF
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 August 4, 2011 and ending August 11, 2011.
Call-
in
numbers
for
the
replay:
Within the
U.S.: (888) 286 - 8010
International: (617) 801 - 6888
Access code for
replay: 80806708
About Huntsman:
Huntsman is a global manufacturer and marketer of differentiated chemicals. Our 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 12,000 employees and operates from multiple locations worldwide. The Company had 2010 revenues of over $9 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 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
also provide Adjusted EBITDA from discontinued operations and
Adjusted net income from discontinued operations for
informational purposes only. 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
(1) 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; unallocated foreign
currency (gain) loss; certain legal and contract settlements;
losses from early extinguishment of debt; gain on consolidation of
a variable interest entity; 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; gain
on insurance settlements, net of expenses; (gain) loss on
disposition of business/assets; and non-recurring (gains) costs
and expenses. The following table provides a reconciliation of
Adjusted EBITDA from discontinued operations to income (loss) from
discontinued operations:
Three months Six months
ended June ended June
30, 30,
In millions 2011 2010 2011 2010
----------- ---- ---- ---- ----
(Loss) income from discontinued
operations, net of tax $(1) $62 $(15) $49
Income tax (benefit) expense (1) 37 (8) 29
Depreciation and amortization - 1 - 1
EBITDA from discontinued
operations (2) 100 (23) 79
Restructuring, impairment and
plant closing costs - - 1 5
(Gain) loss on disposition of
assets - (3) - 5
Non-recurring costs and expenses - - 18 -
Gain on insurance settlements, net
of expenses - (103) - (110)
Adjusted EBITDA from discontinued
operations $(2) $(6) $(4) $(21)
=== === === ====
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; gain on consolidation of a variable interest
entity ; 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 insurance settlements, net of expenses; (gain)
loss on the disposition of business/assets; and
non-recurring costs and expenses. 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.
During the first quarter of 2010, we began reporting
the (income) loss attributable to noncontrolling
interests in the reporting segment to which the
subsidiary relates. Previously, (income) loss
attributable to noncontrolling interests was
reported in our Corporate and other segment. All
relevant information for prior periods has been
reclassified to reflect these changes.
On November 5, 2007, we completed the sale of our
U.S. base chemicals business to Flint Hills
Resources. During the first quarter 2010 we
closed our Australian styrenics operations.
Results from these businesses are treated as
(2) discontinued operations.
SOURCE Huntsman Corporation
