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)
|
Total
Company
|
|
(7)%
|
|
(1)%
|
|
(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.
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/huntsman-announces-fourth-quarter-and-full-year-2016-results-delivers-a-record-686-million-of-free-cash-flow-300407587.html
SOURCE Huntsman Corporation