HUNTSMAN CORPORATION 
By THE WOODLANDS, Texas, Nov. 4, 2010 /PRNewswire-FirstCall/ --
Third Quarter 2010 Highlights
-- Revenues for the third quarter of 2010 were $2,401 million, an increase
of 16% compared to $2,075 million for the same period in 2009 and an
increase of 2% compared to $2,343 million for the second quarter of
2010.
-- Adjusted EBITDA for the third quarter of 2010 was $273 million compared
to $205 million for the same period in 2009 and $257 million for the
second quarter of 2010.
-- Adjusted net income for the third quarter of 2010 was $83 million or
$0.34 per diluted share. This compares to adjusted net loss of $48
million or $0.21 loss per diluted share for the same period in 2009 and
adjusted net income of $75 million or $0.31 per diluted share for the
second quarter of 2010.
-- Net income attributable to Huntsman Corporation (NYSE: HUN) for the
third quarter of 2010 was $55 million or $0.23 per diluted share. This
compares to net loss attributable to Huntsman Corporation of $68 million
or $0.29 loss per diluted share for the same period in 2009 and $114
million of income or $0.47 per diluted share for the second quarter of
2010.
Summarized earnings are as follows:
Three
Three months ended months
September 30, ended
------------------ ------
In millions,
except per share June 30,
amounts 2010 2009 2010
----------------- ---- ---- ---------
Net income (loss)
attributable to
Huntsman
Corporation $55 $(68) $114
Adjusted net
income (loss)(1) $83 $(48) $75
Diluted income
(loss) per share $0.23 $(0.29) $0.47
Adjusted diluted
income (loss) per
share(1) $0.34 $(0.21) $0.31
EBITDA(1) $257 $107 $331
Adjusted EBITDA(1) $273 $205 $257
See end of press
release for
footnote
explanations
Nine months ended
September 30,
-----------------
In millions,
except per share
amounts 2010 2009
----------------- ---- ----
Net income (loss)
attributable to
Huntsman
Corporation $(3) $48
Adjusted net
income (loss)(1) $142 $(381)
Diluted income
(loss) per share $(0.01) $0.20
Adjusted diluted
income (loss) per
share(1) $0.59 $(1.63)
EBITDA(1) $533 $1,011
Adjusted EBITDA(1) $653 $355
See end of press
release for
footnote
explanations
Recent Highlights
-- Effective August 4, 2010, Sir Robert Margetts was appointed as a new
director to our Board of Directors. Sir Robert currently serves as
Chairman of Ensus Limited, the Energy Technologies Institute, and
Ordnance Survey, and serves as Non-Executive Director of Wellstream
Holdings PLC and Falck Renewables PLC. He was previously Chairman of
Legal & General Group PLC and BOC Group PLC. Sir Robert worked for ICI
PLC in various levels of increasing responsibility since 1969, where he
ultimately served as the Vice Chairman of its Main Board until 2000.
-- On September 24, 2010, we completed our $350 million offering of senior
subordinated notes due 2021 which carry an interest rate of 8 5/8%. We
used the net proceeds of the offering to purchase euro 132 million
(approximately $177 million equivalent) of our 6 7/8% senior
subordinated notes due 2013 and $159 million of our 7 7/8% senior
subordinated notes due 2014.
-- On October 28, 2010, we priced an issuance of an additional $180 million
senior subordinated notes due 2021 at an effective yield of
approximately 7 1/4%. The closing is expected to occur on November 12,
2010. We expect to use the net proceeds from the offering to redeem all
$188 million of our outstanding 7 7/8% senior subordinated notes due
2014. In connection with the redemption, we expect to record charges of
approximately $7 million in the fourth quarter related to the early
extinguishment of this debt.
Peter R. Huntsman, our President and CEO, commented:
"I am very pleased with our earnings in the third quarter, 2010. We have seen a continuous recovery in global demand for all of our products and margins are increasing in most product lines. We have previously used 2007 as a benchmark for a normalized demand environment. In the third quarter our total company sales volumes exceeded the same period volume in 2007, however, with a very different product and geographic profile. As our global focus is on the further development of our specialty products, we continue to see many opportunities for growth."
Huntsman Corporation
Operating Results
Three months ended Nine months ended
September 30, September 30,
In millions, except
per share amounts 2010 2009 2010 2009
------------------- ---- ---- ---- ----
Revenues $2,401 $2,075 $6,838 $5,601
Cost of goods sold 1,986 1,733 5,757 4,877
----- ----- ----- -----
Gross profit 415 342 1,081 724
Operating expenses 244 250 741 705
Restructuring,
impairment and
plant closing
costs 4 7 24 83
--- --- --- ---
Operating income
(loss) 167 85 316 (64)
Interest expense,
net (64) (65) (168) (178)
Loss on accounts
receivable
securitization
programs - (3) - (13)
Equity in income
(loss) of
investment in
unconsolidated
affiliates 3 (1) 20 1
Loss on early
extinguishment of
debt (7) (21) (169) (21)
(Expenses) income
associated with
the terminated
merger and related
litigation (3) (2) (4) 835
Other income 2 1 3 1
--- --- --- ---
Income (loss)
before income
taxes 98 (6) (2) 561
Income tax expense (41) (68) (46) (517)
--- --- --- ----
Income (loss) from
continuing
operations 57 (74) (48) 44
(Loss) income from
discontinued
operations, net of
tax(2) (1) 6 48 -
--- --- --- ---
Net income (loss) 56 (68) - 44
Less net (income)
loss attributable
to noncontrolling
interests (1) - (3) 4
Net income (loss)
attributable to
Huntsman
Corporation $55 $(68) $(3) $48
=== ==== === ===
Net income (loss)
attributable to
Huntsman
Corporation $55 $(68) $(3) $48
Interest expense,
net 64 65 168 178
Income tax expense
from continuing
operations 41 68 46 517
Income tax
(benefit) expense
from discontinued
operations(1)(2) (2) (70) 27 (70)
Depreciation and
amortization of
continuing
operations 99 112 294 337
Depreciation and
amortization of
discontinued
operations - - 1 1
--- --- --- ---
EBITDA(1) $257 $107 $533 $1,011
Adjusted EBITDA(1) $273 $205 $653 $355
Basic income (loss)
per share $0.23 $(0.29) $(0.01) $0.21
Diluted income
(loss) per share $0.23 $(0.29) $(0.01) $0.20
Adjusted diluted
income (loss) per
share(1) $0.34 $(0.21) $0.59 $(1.63)
Common share
information:
Basic shares
outstanding 236.4 234.0 235.9 233.9
Diluted shares 241.0 234.0 235.9 238.1
Diluted shares for
adjusted diluted
income (loss) per
share 241.0 234.0 240.7 233.9
See end of press release for footnote explanations
Huntsman Corporation
Segment Results
Three months ended Nine months ended
September 30, September 30,
In millions 2010 2009 2010 2009
----------- ---- ---- ---- ----
Segment Revenues:
Polyurethanes $960 $869 $2,659 $2,164
Performance
Products 678 540 1,963 1,522
Advanced Materials 318 273 929 785
Textile Effects 190 173 598 504
Pigments 327 262 883 712
Eliminations and
other (72) (42) (194) (86)
--- --- ---- ---
Total $2,401 $2,075 $6,838 $5,601
====== ====== ====== ======
Segment EBITDA(1):
Polyurethanes $102 $137 $224 $249
Performance
Products 99 84 275 178
Advanced Materials 42 29 127 38
Textile Effects 7 (25) - (56)
Pigments 64 4 139 (51)
Corporate, LIFO and
other (54) (58) (308) 722
Discontinued
operations(2) (3) (64) 76 (69)
Total $257 $107 $533 $1,011
==== ==== ==== ======
Segment Adjusted
EBITDA(1):
Polyurethanes $102 $137 $225 $251
Performance
Products 100 84 276 178
Advanced Materials 42 26 125 50
Textile Effects 8 (22) 16 (43)
Pigments 66 16 144 4
Corporate, LIFO and
other (45) (36) (133) (85)
--- --- ---- ---
Total $273 $205 $653 $355
==== ==== ==== ====
See end of press release for footnote explanations
Three months ended September 30,
2010 vs. 2009
-------------
Period-Over-Period Average Selling Price(a)
------------------------
Foreign
Increase (Decrease) Local Currency Sales
Translation
Currency Impact Volume(a)
-------- ------------ ---------
Polyurethanes 7% (3)% 5%
Performance Products 12% (3)% 19%
Advanced Materials(b) 13% (3)% 7%
Textile Effects 8% (1)% 3%
Pigments 16% (5)% 14%
Total Company(b) 8% (3)% 11%
--- --- ---
Nine months ended September 30,
2010 vs. 2009
-------------
Period-Over-Period Average Selling Price(a)
------------------------
Foreign
Increase (Decrease) Local Currency Sales
Translation
Currency Impact Volume(a)
-------- ------------ ---------
Polyurethanes 16% (1)% 3%
Performance Products 8% 0% 22%
Advanced Materials(b) 3% 0% 19%
Textile Effects 6% 2% 10%
Pigments 8% (1)% 16%
Total Company(b) 9% 0% 12%
--- --- ---
(a) Excludes revenues and sales volumes from tolling and by-products
(b) Excludes APAO business sold July 31, 2009
Three Months Ended September 30, 2010 Compared to Three Months Ended September 30, 2009
Revenues for the three months ended September 30, 2010 increased to $2,401 million from $2,075 million for the same period in 2009. For the three months ended September 30, 2010, Adjusted EBITDA was $273 million compared to $205 million for the same period in 2009.
Polyurethanes
The increase in revenues in our Polyurethanes division for the three months ended September 30, 2010 compared to the same period in 2009 was primarily due to higher sales prices and higher sales volumes. Average selling prices for MDI increased in response to higher raw material costs while average selling prices for MTBE decreased as a result of increased industry supply. MDI sales volumes increased as a result of improved demand in all regions and across all major sectors with the exception of appliances, while PO/MTBE sales volumes increased generally due to improved demand. The decrease in Adjusted EBITDA was primarily due to lower contribution margins from higher raw material costs and higher manufacturing costs.
Performance Products
The increase in revenues in our Performance Products division for the three months ended September 30, 2010 compared to the same period in 2009 was due to higher average selling prices and higher sales volumes. Average selling prices increased across all product groups primarily in response to higher raw materials costs and strong market conditions, partially offset by the strength of the U.S. dollar against major European currencies. Sales volumes increased primarily due to higher demand across almost all product groups and additional sales of certain products previously produced under tolling arrangements. The increase in Adjusted EBITDA was primarily due to higher contribution margins and higher sales volumes partially offset by higher manufacturing and selling, general and administrative costs.
Advanced Materials
The increase in revenues in our Advanced Materials division for the three months ended September 30, 2010 compared to the same period in 2009 was due to higher sales volumes and higher average selling prices. Sales volumes increased in the Americas and Asia-Pacific regions while volumes decreased in Europe primarily in our base resin business as a result of less material available. Average selling prices increased in our specialty components and base resins business primarily in response to higher raw material costs and reduced product availability in the epoxy resin business, partially offset by lower average selling prices in our formulations business primarily as a result of changes in our product mix and competitive market pressure. The increase in Adjusted EBITDA was primarily due to higher sales volumes and higher contribution margins.
Textile Effects
The increase in revenues in our Textile Effects division for the three months ended September 30, 2010 compared to the same period in 2009 was due to higher average selling prices and higher sales volumes. Average selling prices increased primarily due to favorable changes in product mix partially offset by the strength of the U.S. dollar against major European currencies. Sales volumes increased across all regions and within apparel and home textiles as well as specialty textiles. The increase in Adjusted EBITDA was primarily due to lower manufacturing and selling, general and administrative costs, higher contribution margins and higher volumes.
Pigments
The increase in revenues in our Pigments division for the three months ended September 30, 2010 compared to the same period in 2009 was due to higher average selling prices and higher sales volumes. Average selling prices increased primarily as a result of price increase initiatives in all regions of the world partially offset by the strength of the U.S. dollar against major European currencies. Sales volumes increased primarily due to recovery in global demand most notably in Europe and Asia Pacific. The increase in Adjusted EBITDA in our Pigments division was primarily due to higher contribution margins and higher sales volumes.
Corporate, LIFO and Other
Corporate, LIFO 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, LIFO inventory valuation reserve adjustments and non-operating income and expense. Adjusted EBITDA from Corporate, LIFO and Other decreased by $9 million to a loss of $45 million for the three months ended September 30, 2010 compared to a loss of $36 million for the same period in 2009. The change resulted primarily from increased legal and other general expenses.
Income Taxes
During the three months ended September 30, 2010, we recorded income tax expense of $41 million compared to $68 million of income tax expense in the same period of 2009. Our adjusted effective tax rate for the third quarter of 2010 was approximately 28%. 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 meantime, we expect our income tax rate to be fairly volatile. We expect our long term effective income tax rate to be approximately 35%. Unusual income tax rates caused by valuation allowances have no impact on our cash taxes. During the third quarter of 2010 we paid $9 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 September 30, 2010, we had $1,471 million of combined cash and unused borrowing capacity compared to $2,510 million at December 31, 2009. The decrease from year end was primarily attributable to an increase in primary working capital of $441 million, the net reduction in unused bank credit facilities of $385 million, the repurchase of convertible notes of $382 million and the repayment of $295 million of bank term debt (including $110 million of repayments funded by insurance proceeds received). On September 30, 2010 we increased the amount of revolving commitments available under our revolving credit facility from $225 million to $290 million. There are no outstanding borrowings under this revolving credit facility.
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 $441 million primarily due to increased sales volumes and higher prices partially offset by the strength of the U.S. dollar against major European currencies. Total capital expenditures, net of reimbursements from insurance settlements, other settlement and contributions from noncontrolling shareholders in consolidated subsidiaries of nil were $54 million during the third quarter of 2010 compared to $40 million for the same period in 2009. We expect to spend between $200 and $225 million on capital expenditures in 2010 net of reimbursements.
Beginning July 1, 2010 we began consolidating our ethyleneamines manufacturing 50% joint venture located in Jubail, Saudi Arabia. Previously it was accounted for under the equity method during its developmental stage. Trial production began in the second quarter of 2010 and from July 2010, generated meaningful revenue from the sale of production. The facility has the capacity to produce approximately 60 million pounds of product annually. As a result of the consolidation, $199 million of total debt has been recognized on the balance sheet which is nonrecourse to Huntsman Corporation.
On September 24, 2010, we completed our $350 million offering of senior subordinated notes due 2021 which carry an interest rate of 8 5/8%. We used the net proceeds of the offering to purchase approximately euro 132 million (approximately $177 million equivalent) of our 6 7/8% senior subordinated notes due 2013 and $159 million of our 7 7/8% senior subordinated notes due 2014. In November 2010, we expect to redeem the remaining $188 million of our outstanding 7 7/8% senior subordinated notes due 2014 with proceeds from the issuance of additional notes. In the fourth quarter we expect to record approximately $13 million in total charges related to early extinguishment of debt.
Below is our outstanding debt:
September December
30, 31,
In millions 2010 2009
----------- ---- ----
Debt:
Senior Credit Facilities $1,686 $1,968
Accounts Receivable Programs(a) 243 254
Senior Notes 447 434
Subordinated Notes(b) 1,442 1,294
Variable interest entities -
Arabian Amines Company(c) 199 -
Other Debt 320 280
Convertible Notes - 236
--- ---
Total Debt -excluding affiliates 4,337 4,466
----- -----
Total Cash(b) 1,011 1,750
----- -----
Net Debt- excluding affiliates $3,326 $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.
(b) We used cash to redeem $159 million of senior subordinated notes
due 2014 on October 10, 2010
(c) Beginning July 1, 2010, we began consolidating our Saudi Arabian
ethyleneamines manufacturing joint venture,
the financing of which is nonrecourse to Huntsman.
Huntsman Corporation
Reconciliation of Adjustments
EBITDA
------
Three months ended
September 30,
In millions, except per share
amounts 2010 2009
----------------------------- ---- ----
GAAP $257 $107
Adjustments:
Loss on accounts receivable
securitization programs - 3
Unallocated foreign currency
(gain) loss (2) (6)
Loss on early extinguishment of
debt 7 21
Other restructuring, impairment
and plant closing costs 4 7
Expenses associated with the
terminated merger and related
litigation 3 2
Discount amortization on
settlement financing
associated with the terminated
merger - -
Acquisition related expenses 1 8
Gain on disposition of
businesses/assets - (1)
Loss (income) from discontinued
operations, net of tax(2) 3 64
Adjusted(1) $273 $205
Discontinued operations $(3) $(64)
Restructuring, impairment and
plant closing (credits) costs (1) 55
Loss on disposition of assets 1 4
Adjusted discontinued
operations(1)(2) $(3) $(5)
Total -adjusted continuing and
discontinued operations $270 $200
---- ----
Net Income (Loss)
Attributable to Huntsman
Corporation
------------------------
Three months ended
September 30,
In millions, except per share
amounts 2010 2009
----------------------------- ---- ----
GAAP $55 $(68)
Adjustments:
Loss on accounts receivable
securitization programs - -
Unallocated foreign currency
(gain) loss 12 (5)
Loss on early extinguishment
of debt 5 13
Other restructuring,
impairment and plant closing
costs 4 7
Expenses associated with the
terminated merger and related
litigation 2 1
Discount amortization on
settlement financing
associated with the
terminated merger 4 5
Acquisition related expenses - 6
Gain on disposition of
businesses/assets - (1)
Loss (income) from
discontinued operations, net
of tax(2) 1 (6)
Adjusted(1) $83 $(48)
Discontinued operations $(1) $6
Restructuring, impairment and
plant closing (credits) costs (1) (13)
Loss on disposition of assets 2 2
Adjusted discontinued
operations(1)(2) $- $(5)
Total -adjusted continuing
and discontinued operations $83 $(53)
--- ----
Diluted Income (Loss)
Per Share
---------
Three months ended
September 30,
In millions, except per share
amounts 2010 2009
----------------------------- ---- ----
GAAP $0.23 $(0.29)
Adjustments:
Loss on accounts receivable
securitization programs - -
Unallocated foreign currency
(gain) loss 0.05 (0.02)
Loss on early extinguishment of
debt 0.02 0.06
Other restructuring, impairment
and plant closing costs 0.02 0.03
Expenses associated with the
terminated merger and related
litigation 0.01 -
Discount amortization on
settlement financing
associated with the terminated
merger 0.02 0.02
Acquisition related expenses - 0.03
Gain on disposition of
businesses/assets - -
Loss (income) from discontinued
operations, net of tax(2) - (0.03)
Adjusted(1) $0.34 $(0.21)
----- ------
Discontinued operations $- $0.03
Restructuring, impairment and
plant closing (credits) costs - (0.06)
Loss on disposition of assets 0.01 0.01
Adjusted discontinued
operations(1)(2) $- $(0.02)
Total -adjusted continuing and
discontinued operations $0.34 $(0.23)
----- ------
Three months
ended June
30,
In millions 2010
----------- ----
Net income attributable to
Huntsman Corporation 114
Interest expense, net 43
Income tax benefit from
continuing operations 39
Income tax benefit from
discontinued operations(2) 37
Depreciation and amortization
of continuing operations 97
Depreciation and amortization
of discontinued operations 1
EBITDA(1) $331
Net Income (Loss)
Attributable to Huntsman
EBITDA Corporation
Three months ended Three months ended
June 30, June 30,
In millions,
except per share
amounts 2010 2010
----------------- ---- ----
GAAP $331 $114
Adjustments:
Unallocated
foreign currency
gain - (4)
Loss on early
extinguishment
of debt 7 4
Other
restructuring,
impairment and
plant closing
costs 17 17
Expenses
associated with
the terminated
merger and
related
litigation 1 1
Discount
amortization on
settlement
financing
associated with
the terminated
merger - 4
Acquisition
related expenses 1 1
Income from
discontinued
operations, net
of tax(2) (100) (62)
Adjusted $257 $75
Discontinued
operations $100 $62
Loss on
disposition of
assets 4 3
Gain on fire
insurance
settlement (110) (71)
Adjusted
discontinued
operations(2) $(6) $(6)
Total -adjusted
continuing and
discontinued
operations $251 $69
---- ---
Diluted Income (Loss)
Per Share
Three months ended June
30,
In millions, except per share
amounts 2010
----------------------------- ----
GAAP $0.47
Adjustments:
Unallocated foreign currency
gain (0.02)
Loss on early extinguishment of
debt 0.02
Other restructuring, impairment
and plant closing costs 0.07
Expenses associated with the
terminated merger and related
litigation -
Discount amortization on
settlement financing
associated with the terminated
merger 0.02
Acquisition related expenses -
Income from discontinued
operations, net of tax(2) (0.26)
Adjusted $0.31
-----
Discontinued operations $0.26
Loss on disposition of assets 0.01
Gain on fire insurance
settlement (0.29)
Adjusted discontinued
operations(2) $(0.02)
Total -adjusted continuing and
discontinued operations $0.29
-----
EBITDA
------
Nine months
ended September
30,
In millions, except per
share amounts 2010 2009
----------------------- ---- ----
GAAP(2) $533 $1,011
Adjustments:
Loss on accounts
receivable
securitization program - 13
Unallocated foreign
currency (gain) loss (3) (15)
Loss on early
extinguishment of debt 169 21
Other restructuring,
impairment and plant
closing costs 24 83
Expenses (income)
associated with the
terminated merger and
related litigation 4 (835)
Discount amortization
on settlement
financing associated
with the terminated
merger - -
Acquisition related
expenses 2 9
Gain on disposition of
businesses/assets - (1)
(Income) loss from
discontinued
operations, net of
tax(2) (76) 69
Adjusted(1)(2) $653 $355
Discontinued operations $76 $(69)
Restructuring,
impairment and plant
closing costs
(credits) 4 56
Loss on disposition of
assets 13 4
Gain on hurricane
insurance settlement (7) -
Gain on fire insurance
settlement (110) -
Adjusted discontinued
operations(1)(2) $(24) $(9)
Total -adjusted
continuing and
discontinued
operations $629 $346
---- ----
Net Income
(Loss)
Attributable
To Huntsman
Corporation
------------
Nine months
ended
September 30,
In millions, except per
share amounts 2010 2009
----------------------- ---- ----
GAAP(2) $(3) $48
Adjustments:
Loss on accounts
receivable
securitization program - -
Unallocated foreign
currency (gain) loss 2 (2)
Loss on early
extinguishment of debt 152 13
Other restructuring,
impairment and plant
closing costs 23 75
Expenses (income)
associated with the
terminated merger and
related litigation 3 (526)
Discount amortization
on settlement
financing associated
with the terminated
merger 12 5
Acquisition related
expenses 1 7
Gain on disposition of
businesses/assets - (1)
(Income) loss from
discontinued
operations, net of
tax(2) (48) -
Adjusted(1)(2) $142 $(381)
Discontinued operations $48 $-
Restructuring,
impairment and plant
closing costs
(credits) 2 (12)
Loss on disposition of
assets 10 2
Gain on hurricane
insurance settlement (7) -
Gain on fire insurance
settlement (68) -
Adjusted discontinued
operations(1)(2) $(15) $(10)
Total -adjusted
continuing and
discontinued
operations $127 $(391)
---- -----
Diluted Income
(Loss)
Per Share
---------
Nine months ended
September 30,
In millions, except per
share amounts 2010 2009
----------------------- ---- ----
GAAP(2) $(0.01) $0.20
Adjustments:
Loss on accounts
receivable
securitization program - -
Unallocated foreign
currency (gain) loss 0.01 (0.01)
Loss on early
extinguishment of debt 0.63 0.06
Other restructuring,
impairment and plant
closing costs 0.10 0.32
Expenses (income)
associated with the
terminated merger and
related litigation 0.01 (2.25)
Discount amortization
on settlement
financing associated
with the terminated
merger 0.05 0.02
Acquisition related
expenses - 0.03
Gain on disposition of
businesses/assets - -
(Income) loss from
discontinued
operations, net of
tax(2) (0.20) -
Adjusted(1)(2) $0.59 $(1.63)
----- ------
Discontinued operations $0.20 $-
Restructuring,
impairment and plant
closing costs
(credits) 0.01 (0.05)
Loss on disposition of
assets 0.04 0.01
Gain on hurricane
insurance settlement (0.03) -
Gain on fire insurance
settlement (0.28) -
Adjusted discontinued
operations(1)(2) $(0.06) $(0.04)
Total -adjusted
continuing and
discontinued
operations $0.53 $(1.67)
----- ------
See end of press release for footnote explanations
Conference Call Information
We will hold a conference call to discuss our 2010 third quarter results on Thursday, November 4, 2010 at 10:00 a.m. ET.
Call-in number for U.S. participants: (888) 679 - 8040
Call-in number for international participants: (617) 213 - 4851
Participant access code: 84316359
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://cossprereg.btci.com/prereg/key.process?key=PEHDAN6X4
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 November 4, 2010 and ending November 11, 2010
Call-in numbers for the replay:
Within the U.S.: (888) 286 - 8010
International: (617) 801 - 6888
Access code for replay: 68394641
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.
(1) We use EBITDA and Adjusted EBITDA to measure the operating performance of our business. We also provide Adjusted EBITDA from discontinued operations, Adjusted net income and Adjusted net income from discontinued operations because we feel they provide 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. 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 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 Nine months
ended ended
September September
30, 30,
In millions 2010 2009 2010 2009
----------- ---- ---- ---- ----
Net (loss) income from discontinued
operations, net of tax $(1) $6 $48 $-
Income tax (benefit) expense (2) (70) 27 (70)
Depreciation and amortization - - 1 1
EBITDA from discontinued operations (3) (64) 76 (69)
Restructuring, impairment and plant
closing (credits) costs (1) 55 4 56
Loss on disposition of assets 1 4 13 4
Gain on hurricane insurance settlement - - (7) -
Gain on fire insurance settlement - - (110) -
--- --- ---- ---
Adjusted EBITDA from discontinued
operations $(3) $(5) $(24) $(9)
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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 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. During the first quarter 2010 we closed our Australian styrenics operations. Results from these businesses are treated as discontinued operations.
SOURCE Huntsman Corporation
