HUNTSMAN CORPORATION THE WOODLANDS, Texas, Feb. 15, 2017 /PRNewswire/ --
Fourth Quarter 2016 Highlights
-- Net income was $137 million compared to $9 million in the prior year
period and $64 million in the prior quarter.
-- Adjusted EBITDA was $256 million compared to $240 million in the prior
year period and $272 million in the prior quarter.
-- Diluted income per share was $0.53 compared to $0.02 in the prior year
period and $0.23 in the prior quarter.
-- Adjusted diluted income per share was $0.30 compared to $0.51 in the
prior year period and $0.38 in the prior quarter.
-- Net cash provided by operating activities was $240 million. Free cash
flow generation was $117 million.
-- On December 30, 2016, we completed the sale of our European surfactants
business for an enterprise value of $225 million.
-- On December 30, 2016, we made a $260 million early repayment of debt.
Full Year 2016 Highlights
-- Net income was $357 million compared to $126 million in the prior year.
-- Adjusted EBITDA was $1,127 million compared to $1,221 million in the
prior year.
-- Net cash provided by operating activities was $1,088 million compared to
$575 million in the prior year. Free cash flow generation was $686
million compared to negative free cash flow of $30 million in the prior
year.
-- We repaid $560 million of debt during the year from cash generation and
proceeds from the sale of our European surfactants business. This
represents a 12% reduction in debt during 2016.
Three months ended Twelve months ended
December 31, September 30, December 31,
------------ ------------
In millions, except per share amounts 2016 2015 2016 2016 2015
------------------------------------- ---- ---- ---- ---- ----
Revenues $2,395 $2,332 $2,363 $9,657 $10,299
Net income $137 $9 $64 $357 $126
Adjusted net income(1) $72 $124 $91 $377 $492
Diluted income per share $0.53 $0.02 $0.23 $1.36 $0.38
Adjusted diluted income per share(1) $0.30 $0.51 $0.38 $1.57 $2.00
Adjusted EBITDA(1) $256 $240 $272 $1,127 $1,221
Net cash provided by operating activities $240 $188 $405 $1,088 $575
Free cash flow(3) $117 $(29) $300 $686 $(30)
See end of press release for footnote explanations
Huntsman Corporation (NYSE: HUN) today reported fourth quarter 2016 results with revenues of $2,395 million, net income of $137 million and adjusted EBITDA of $256 million.
Peter R. Huntsman, our President and CEO, commented:
"At the beginning of 2016, we announced our intent to generate more than $350 million of free cash flow. We delivered a record $686 million of free cash flow in 2016, including $117 million during the fourth quarter. We used this cash, together with proceeds from the sale of our European surfactants business, to repay $560 million in debt, significantly strengthening our balance sheet.
"As I look at the past year, I am impressed by the quality of earnings that our businesses have achieved and how we are positioned moving into 2017. MDI urethanes continues to show steady and impressive growth, with differentiated MDI sales volumes growing 6% compared to last year and representing 85% of MDI urethanes EBITDA. Advanced Materials and Textile Effects have become solid performers with steady and modestly improving earnings. Our Performance Products business is poised for recovery in 2017. As TiO2 prices have rebounded, our Pigments and Additives division saw earnings double from 2015 and we expect earnings to improve meaningfully in 2017, due largely to price increases in TiO2 and the cumulative benefits of restructuring.
"We are also delivering on our commitment to separate the TiO2 business through the spin-off of Venator. We continue to make steady progress with the IRS to allow Huntsman to retain a 40% economic interest in Venator."
Segment Analysis for 4Q16 Compared to 4Q15
Polyurethanes
The increase in revenues in our Polyurethanes division for the three months ended December 31, 2016 compared to the same period in 2015 was primarily due to higher MDI average selling prices and higher MDI sales volumes. MDI average selling prices increased sharply in Asia primarily as a result of a competitor's outage. MDI sales volumes increased primarily due to higher demand in the Americas region. The decrease in adjusted EBITDA was primarily due to lower MTBE margins, partially offset by higher MDI margins and sales volumes.
Performance Products
The decrease in revenues in our Performance Products division for the three months ended December 31, 2016 compared to the same period in 2015 was primarily due to lower average selling prices. Average selling prices decreased primarily in response to lower raw material costs and competitive market conditions. The decrease in adjusted EBITDA was primarily due to lower margins in our amines and maleic anhydride businesses.
Advanced Materials
The decrease in revenues in our Advanced Materials division for the three months ended December 31, 2016 compared to the same period in 2015 was due to lower sales volumes and lower average selling prices. Sales volumes decreased primarily due to soft demand for low value business in our coatings and construction market, partially offset by growth in our electrical and electronic markets. Average selling prices decreased primarily as a result of lower raw material costs. Adjusted EBITDA increased as lower costs for raw materials and fixed costs more than offset lower sales volumes and lower average selling prices.
Textile Effects
Revenues in our Textile Effects division for the three months ended December 31, 2016 compared to the same period in 2015 were essentially flat as lower local currency average selling prices were offset by higher sales volumes. Average selling prices decreased primarily due to lower raw material costs. Sales volumes increased in in Asia, Europe and South America. The increase in adjusted EBITDA was primarily due to higher volumes and lower raw material costs.
Pigments and Additives
The increase in revenues in our Pigments and Additives division for the three months ended December 31, 2016 compared to the same period in 2015 was due to higher average selling prices and higher volumes. Average selling prices increased primarily due to improved business conditions for titanium dioxide. Sales volumes increased broadly across all of the business. The increase in adjusted EBITDA was primarily due to higher average selling prices for titanium dioxide and lower costs resulting from restructuring savings.
Corporate, LIFO and Other
Adjusted EBITDA from Corporate, LIFO and Other decreased by $14 million to a loss of $52 million for the three months ended December 31, 2016 compared to a loss of $38 million for the same period in 2015. The decrease in adjusted EBITDA was primarily the result of an increase in LIFO inventory valuation expense and an increase in unallocated foreign currency exchange losses.
Liquidity, Capital Resources and Outstanding Debt
As of December 31, 2016, we had $1,208 million of combined cash and unused borrowing capacity compared to $1,023 million as of December 31, 2015.
We repaid $560 million in debt during 2016, including an early repayment of $260 million on our 2015 Extended Term Loan B on December 30, 2016.
During 2016 we spent $421 million on capital expenditures compared to $663 million in 2015. We expect to spend approximately $400 million annually on capital expenditures in 2017.
Income Taxes
During the three months ended December 31, 2016, we recorded an income tax expense of $29 million. During the same period we paid $11 million in cash for income taxes.
In 2016, our adjusted effective tax rate was 22%. We expect our long term adjusted effective tax rate will be approximately 30%. We believe our 2017 adjusted effective tax rate will be slightly less than the long term rate.
Earnings Conference Call Information
We will hold a conference call to discuss our fourth quarter 2016 financial results on Wednesday, February 15, 2017 at 10:00 a.m. ET.
Call-in numbers for the conference call:
U.S. participants (888) 713 - 4209
International participants (617) 213 - 4863
Passcode 207 418 41#
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=PKGK6Q9D7
Webcast Information
The conference call will be available via webcast and can be accessed from the company's website at ir.huntsman.com.
Replay Information
The conference call will be available for replay beginning February 15, 2017 and ending February 22, 2017.
Call-in numbers for the replay:
U.S. participants (888) 286 - 8010
International participants (617) 801 - 6888
Replay code 30397182
Table 1 - Results of Operations
-------------------------------
Three months ended Twelve months ended
December 31, December 31,
------------ ------------
In millions,
except per
share
amounts 2016 2015 2016 2015
------------ ---- ---- ---- ----
Revenues $2,395 $2,332 $9,657 $10,299
Cost of goods
sold 1,988 1,956 7,979 8,451
----- ----- ----- -----
Gross profit 407 376 1,678 1,848
Operating
expenses 180 282 932 1,141
Restructuring,
impairment
and plant
closing
(credits)
costs (6) 81 81 302
Spin-off
separation
expenses 18 - 18 -
--- --- --- ---
Operating
income 215 13 647 405
Interest
expense (50) (47) (202) (205)
Equity in
income of
investment
in
unconsolidated
affiliates 1 1 5 6
Loss on early
extinguishment
of debt - - (3) (31)
Other income 1 3 1 1
--- ---
Income (loss)
before
income taxes 167 (30) 448 176
Income tax
(expense)
benefit (29) 39 (87) (46)
--- ---
Income from
continuing
operations 138 9 361 130
Loss from
discontinued
operations,
net of
tax(2) (1) - (4) (4)
--- ---
Net income 137 9 357 126
Net income
attributable
to
noncontrolling
interests,
net of tax (9) (5) (31) (33)
Net income
attributable
to Huntsman
Corporation $128 $4 $326 $93
==== === ==== ===
Adjusted
EBITDA(1) $256 $240 $1,127 $1,221
Adjusted net
income(1) $72 $124 $377 $492
Basic income
per share $0.54 $0.02 $1.38 $0.38
Diluted
income per
share $0.53 $0.02 $1.36 $0.38
Adjusted
diluted
income per
share(1) $0.30 $0.51 $1.57 $2.00
Common share
information:
Basic shares
outstanding 236 239 236 243
Diluted
shares 241 241 240 245
Diluted
shares for
adjusted
diluted
income per
share 241 241 240 245
See end of
press
release for
footnote
explanations
Table 2 - Results of Operations by Segment
------------------------------------------
Three months ended Twelve months ended
December 31, Better / December 31, Better /
------------ ------------
In millions 2016 2015 (Worse) 2016 2015 (Worse)
----------- ---- ---- ------ ---- ---- ------
Segment Revenues:
Polyurethanes $964 $909 6% $3,667 $3,811 (4)%
Performance Products 515 552 (7)% 2,126 2,501 (15)%
Advanced Materials 246 256 (4)% 1,020 1,103 (8)%
Textile Effects 184 186 (1)% 751 804 (7)%
Pigments & Additives 491 453 8% 2,139 2,160 (1)%
Corporate and eliminations (5) (24) n/m (46) (80) n/m
--- --- --- ---
Total $2,395 $2,332 3% $9,657 $10,299 (6)%
====== ====== ====== =======
Segment Adjusted EBITDA(1):
Polyurethanes $130 $141 (8)% $569 $573 (1)%
Performance Products 68 76 (11)% 316 460 (31)%
Advanced Materials 50 48 4% 223 220 1%
Textile Effects 14 13 8% 73 63 16%
Pigments & Additives 46 - n/m 130 61 113%
Corporate, LIFO and other (52) (38) (37)% (184) (156) (18)%
----
Total $256 $240 7% $1,127 $1,221 (8)%
==== ==== ====== ======
n/m = not meaningful
See end of press release for footnote explanations
Table 3 - Factors Impacting Sales Revenue
-----------------------------------------
Three months ended
December 31, 2016 vs. 2015
--------------------------
Average Selling Price(a)
-----------------------
Local Exchange Sales Mix Sales
Currency Rate & Other Volume(b) Total
-------- ---- ------- -------- -----
Polyurethanes 4% (1)% 0% 3% 6%
Polyurethanes, adj 9% 12% (e)
Performance Products (5)% 0% (3)% 1% (7)%
Performance Products, adj 6% (2)% (e)
Advanced Materials (2)% 0% 1% (3)% (4)%
Textile Effects (8)% (1)% 0% 8% (1)%
Pigments & Additives 7% (1)% (3)% 5% 8%
Total Company 1% (1)% 0% 3% 3%
Total Company, adj 7% 7% (e)
Twelve months ended
December 31, 2016 vs. 2015
--------------------------
Average Selling Price(a)
-----------------------
Local Exchange Sales Mix Sales
Currency Rate & Other Volume(b) Total
-------- ---- ------- -------- -----
Polyurethanes (9)% (1)% (5)% 11% (4)%
Polyurethanes, adj 6% (9)% (c)(e)
Performance Products (8)% (1)% (4)% (2)% (15)%
Performance Products, adj 0% (13)% (e)
Advanced Materials (2)% (2)% 3% (7)% (8)%
Textile Effects (6)% (3)% (1)% 3% (7)%
Pigments & Additives (4)% (1)% 0% 4% (1)%
Pigments & Additives, adj 3% (2)% (d)
(7)% (1)%
Total Company (3)% 5% (6)%
Total Company, adj 4% (7)% (c)(d)(e)
(a) Excludes sales from tolling
arrangements, by-products and raw
materials.
(b) Excludes sales from by-
products and raw materials.
(c) Excludes volume impact from the
planned maintenance at our PO/
MTBE facility that occurred in
1H15.
(d) Excludes volume impact from
nitrogen tank incident at our
Uerdingen, Germany facility in
3Q15.
(e) Excludes volume impact from
weather related and other
production outages in 2H16.
Table 4 - Reconciliation of U.S. GAAP to Non-GAAP Measures
----------------------------------------------------------
Income Tax Diluted Income
EBITDA (Expense) Benefit Net Income Per Share
------ ----------------- ---------- ---------
Three months ended Three months ended Three months ended Three months ended
December 31, December 31, December 31, December 31,
------------ ------------ ------------ ------------
In millions, except per share amounts 2016 2015 2016 2015 2016 2015 2016 2015
------------------------------------- ---- ---- ---- ---- ---- ---- ---- ----
Net income $137 $9 $137 $9 $0.57 $0.04
Net income attributable to noncontrolling interests (9) (5) (9) (5) (0.04) (0.02)
Net income attributable to Huntsman Corporation 128 4 128 4 0.53 0.02
---- ----
Interest expense 50 47
Income tax expense (benefit) from continuing operations 29 (39) (29) 39
Income tax benefit from discontinued operations(2) (1) (3)
Depreciation and amortization 110 102
Acquisition and integration expenses, purchase accounting adjustments 2 22 - (6) 2 16 0.01 0.07
Loss from discontinued operations, net of tax(2) 2 3 N/A N/A 1 - - -
(Gain) loss on disposition of businesses/assets (97) 1 14 - (83) 1 (0.34) -
Loss on early extinguishment of debt - - - - - - - -
Certain legal settlements and related expenses 2 1 (1) - 1 1 - -
Plant incident remediation costs, net 3 1 (1) - 2 1 0.01 -
Business separation costs 18 - (5) - 13 - 0.05 -
Amortization of pension and postretirement actuarial losses 16 18 (2) (3) 14 15 0.06 0.06
Restructuring, impairment, plant closing and transition (credits) costs (6) 83 - 3 (6) 86 (0.02) 0.36
Adjusted(1) $256 $240 $(24) $33 $72 $124 $0.30 $0.51
==== ==== ==== === === ==== ----- -----
Adjusted income tax expense (benefit)(4) $24 $(33)
Net income attributable to noncontrolling interests, net of tax 9 5
Adjusted pre-tax income(1) $105 $96
==== ===
Adjusted effective tax rate 23% -34%
Income Tax Diluted Income
EBITDA (Expense) Benefit Net Income Per Share
------ ----------------- ---------- ---------
Three months ended Three months ended Three months ended Three months ended
September 30, September 30, September 30, September 30,
In millions, except per share amounts 2016 2016 2016 2016
------------------------------------- ---- ---- ---- ----
Net income $64 $64 $0.27
Net income attributable to noncontrolling interests (9) (9) (0.04)
Net income attributable to Huntsman Corporation 55 55 0.23
----
Interest expense 52
Income tax benefit from continuing operations (1) 1
Depreciation and amortization 113
Acquisition and integration expenses, purchase accounting adjustments 8 (4) 4 0.02
Loss from discontinued operations, net of tax(2) 1 N/A 1 -
Gain on disposition of businesses/assets (22) 2 (20) (0.08)
Loss on early extinguishment of debt 1 - 1 -
Certain legal settlements and related expenses - - - -
Plant incident remediation costs, net 4 - 4 0.02
Amortization of pension and postretirement actuarial losses 16 (4) 12 0.05
Restructuring, impairment, plant closing and transition costs 45 (11) 34 0.14
Adjusted(1) $272 $(16) $91 $0.38
==== ==== === -----
Adjusted income tax expense(4) $16
Net income attributable to noncontrolling interests, net of tax 9
Adjusted pre-tax income(1) $116
====
Adjusted effective tax rate 14%
Income Tax Diluted Income
EBITDA (Expense) Benefit Net Income Per Share
------ ----------------- ---------- ---------
Twelve months ended Twelve months ended Twelve months ended Twelve months ended
December 31, December 31, December 31, December 31,
------------ ------------ ------------ ------------
In millions, except per share amounts 2016 2015 2016 2015 2016 2015 2016 2015
------------------------------------- ---- ---- ---- ---- ---- ---- ---- ----
Net income $357 $126 $357 $126 $1.49 $0.51
Net income attributable to noncontrolling interests (31) (33) (31) (33) (0.13) (0.13)
Net income attributable to Huntsman Corporation 326 93 326 93 1.36 0.38
---- ----
Interest expense 202 205
Income tax expense from continuing operations 87 46 (87) (46)
Income tax benefit from discontinued operations(2) (2) (2)
Depreciation and amortization 432 399
Acquisition and integration expenses, purchase accounting adjustments 23 53 (7) (13) 16 40 0.07 0.16
Loss from discontinued operations, net of tax(2) 6 6 N/A N/A 4 4 0.02 0.02
(Gain) loss on disposition of businesses/assets (119) 2 16 - (103) 2 (0.43) 0.01
Loss on early extinguishment of debt 3 31 (1) (11) 2 20 0.01 0.08
Certain legal settlements and related expenses 3 4 (1) (1) 2 3 0.01 0.01
Plant incident remediation costs, net 1 4 - (1) 1 3 - 0.01
Business separation costs 18 - (5) - 13 - 0.05 -
Amortization of pension and postretirement actuarial losses 65 74 (12) (17) 53 57 0.22 0.23
Restructuring, impairment, plant closing and transition costs 82 306 (19) (36) 63 270 0.26 1.10
Adjusted(1) $1,127 $1,221 $(116) $(125) $377 $492 $1.57 $2.00
====== ====== ===== ===== ==== ==== ----- -----
Adjusted income tax expense(4) $116 $125
Net income attributable to noncontrolling interests, net of tax 31 33
Adjusted pre-tax income(1) $524 $650
==== ====
Adjusted effective tax rate 22% 19%
See end of press release for footnote explanations
Table 5 - Selected Balance Sheet Items
--------------------------------------
December 31, September 30, December 31,
In millions 2016 2016 2015
----------- ---- ---- ----
Cash $425 $450 $269
Accounts and notes receivable, net 1,435 1,466 1,449
Inventories 1,344 1,444 1,692
Other current assets 351 392 424
Property, plant and equipment, net 4,212 4,298 4,446
Assets held for sale - 121 -
Other assets 1,422 1,536 1,540
Total assets $9,189 $9,707 $9,820
====== ====== ======
Accounts payable $1,102 $1,026 $1,061
Other current liabilities 616 655 686
Current portion of debt 60 88 170
Long-term debt 4,135 4,468 4,625
Liabilities held for sale - 30 -
Other liabilities 1,809 1,669 1,649
Total equity 1,467 1,771 1,629
Total liabilities and equity $9,189 $9,707 $9,820
====== ====== ======
Table 6 - Outstanding Debt
--------------------------
December 31, September 30, December 31,
In
millions 2016 2016 2015
--------- ---- ---- ----
Debt:
Senior
credit
facilities $1,967 $2,234 $2,454
Accounts
receivable
programs 208 218 215
Senior
notes 1,812 1,873 1,850
Variable
interest
entities 128 134 151
Other
debt 80 97 125
Total
debt -
excluding
affiliates 4,195 4,556 4,795
----- ----- -----
Total
cash 425 450 269
--- --- ---
Net debt-
excluding
affiliates $3,770 $4,106 $4,526
====== ====== ======
Table 7 - Summarized Statement of Cash Flows
--------------------------------------------
Three months ended Twelve months ended
December 31, December 31,
------------
In millions 2016 2016 2015
----------- ---- ---- ----
Total cash at beginning of period(a) $450 $269 $870
Net cash provided by operating activities 240 1,088 575
Net cash provided by (used in) investing activities 68 (202) (600)
Net cash used in financing activities (326) (723) (562)
Effect of exchange rate changes on cash (7) (6) (16)
Change in restricted cash - (1) 2
-
Total cash at end of period(a) $425 $425 $269
==== ==== ====
Supplemental cash flow information:
Cash paid for interest $(66) $(205) $(225)
Cash paid for income taxes (11) (40) (126)
Cash paid for capital expenditures (131) (421) (663)
Depreciation and amortization 110 432 399
Changes in primary working capital:
Accounts and notes receivable $(29) $(35) $121
Inventories 37 283 179
Accounts payable 72 56 (157)
Total cash provided by primary working capital $80 $304 $143
=== ==== ====
Three months ended Twelve months ended
December 31, December 31,
------------
2016 2016 2015
---- ---- ----
Free cash flow(3):
Net cash provided by operating activities $240 $1,088 $575
Capital expenditures (131) (421) (663)
All other investing activities excluding acquisition and disposition activities(b)
- 11 58
Non recurring separation costs(c) 8 8 -
Total free cash flow $117 $686 $(30)
==== ==== ====
Adjusted EBITDA $256 $1,127 $1,221
Capital expenditures (131) (421) (663)
Capital reimbursements 3 31 15
Interest (66) (205) (225)
Income taxes (11) (40) (126)
Primary working capital change 80 304 143
Restructuring (18) (103) (198)
Pensions (24) (87) (114)
Maintenance & other 28 80 (83)
Total free cash flow(3) $117 $686 $(30)
==== ==== ====
(a) Includes restricted cash.
(b) Represents "Acquisition of business, net
of cash acquired", "Cash received from
purchase price adjustment for business
acquired", and "Proceeds from sale of
business/assets".
(c) Represents payments associated with one-
time costs of the proposed spin-off of our
Pigments & Additives business.
Footnotes
---------
(1) We use adjusted EBITDA to measure the
operating performance of our business and for
planning and evaluating the performance of
our business segments. We provide adjusted
net income because we feel it provides
meaningful insight for the investment
community into the performance of our
business. We believe that net income (loss)
is the performance measure calculated and
presented in accordance with generally
accepted accounting principles in the U.S.
("GAAP") that is most directly comparable to
adjusted EBITDA and adjusted net income.
Additional information with respect to our
use of each of these financial measures
follows:
Adjusted EBITDA, adjusted net income (loss)
and adjusted diluted income (loss) per share,
as used herein, are not necessarily
comparable to other similarly titled measures
of other companies.
Adjusted EBITDA is computed by eliminating the
following from net income (loss): (a) net
income attributable to noncontrolling
interest, net of tax; (b) interest; (c)
income taxes; (d) depreciation and
amortization; (e) acquisition and integration
expenses, purchase accounting adjustments;
(f) EBITDA from discontinued operations; (g)
loss (gain) on disposition of businesses/
assets; (h) loss on early extinguishment of
debt; (i) certain legal settlements and
related expenses; (j) plant incident
remediation costs (credits), net; (k)
business separation costs; (l) amortization
of pension and postretirement actuarial
losses (gains) and; (m) restructuring,
impairment, plant closing and transition
costs (credits). The reconciliation of
adjusted EBITDA to net income (loss) is set
forth in Table 4 above.
Adjusted net income (loss) and adjusted
diluted income (loss) per share are computed
by eliminating the after tax impact of the
following items from net income (loss): (a)
net income attributable to noncontrolling
interest; (b) acquisition and integration
expenses, purchase accounting adjustments;
(c) impact of certain foreign tax credit
elections; (d) loss (income) from
discontinued operations; (e) discount
amortization on settlement financing
associated with the terminated merger; (f)
loss (gain) on disposition of businesses/
assets; (g) loss on early extinguishment of
debt; (h) certain legal settlements and
related expenses; (i) plant incident
remediation costs (credits), net; (j)
business separation costs; (k) amortization
of pension and postretirement actuarial
losses (gains); and (l) restructuring,
impairment, plant closing and transition
costs (credits). The income tax impacts, if
any, of each adjusting item represent a
ratable allocation of the total difference
between the unadjusted tax expense and the
total adjusted tax expense, computed without
consideration of any adjusting items using a
with and without approach. We 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) is set
forth in Table 4 above.
(2) During the first quarter 2010 we closed our
Australian styrenics operations; results from
associated business are treated as
discontinued operations.
(3) Management internally uses a free cash flow
measure: (a) to evaluate the Company's
liquidity, (b) to evaluate strategic
investments, (c) to plan stock buyback and
dividend levels and (d) to evaluate the
Company's ability to incur and service debt.
Free cash flow is not a defined term under
U.S. GAAP, and it should not be inferred that
the entire free cash flow amount is available
for discretionary expenditures. The Company
defines free cash flow as cash flow provided
by operating activities less cash flow used
in investing activities, excluding merger and
acquisition activities. Free cash flow is
typically derived directly from the Company's
condensed consolidated statement of cash
flows; however, it may be adjusted for items
that affect comparability between periods.
About Huntsman:
Huntsman Corporation is a publicly traded global manufacturer and marketer of differentiated chemicals with 2016 revenues of approximately $10 billion. Our chemical products number in the thousands and are sold worldwide to manufacturers serving a broad and diverse range of consumer and industrial end markets. We operate more than 100 manufacturing and R&D facilities in approximately 30 countries and employ approximately 15,000 associates within our 5 distinct business divisions including the Pigments and Additives division that we intend to spin-off as Venator Materials Corporation. For more information about Huntsman, please visit the company's website at www.huntsman.com.
Social Media:
Twitter: twitter.com/Huntsman_Corp
Facebook: www.facebook.com/huntsmancorp
LinkedIn: www.linkedin.com/company/huntsman
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, volatile global economic conditions, cyclical and volatile product markets, disruptions in production at manufacturing facilities, reorganization or restructuring of Huntsman's operations, including any delay of, or other negative developments affecting, the spin-off of Venator Materials Corporation, the ability to implement cost reductions and manufacturing optimization improvements in Huntsman businesses and realize anticipated cost savings, and other 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.
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SOURCE Huntsman Corporation
