THE WOODLANDS, Texas,
July 29, 2015 /PRNewswire/ --
Second Quarter 2015 Highlights
- Adjusted EBITDA was $385 million
compared to $363 million in the prior
year period and $285 million in the
prior quarter.
- Adjusted diluted income per share was $0.63 compared to $0.59 in the prior year period and $0.40 in the prior quarter.
- Net income attributable to Huntsman Corporation was
$29 million compared to net income of
$119 million in the prior year period
and $5 million in the prior
quarter.
- The stronger U.S. dollar reduced adjusted EBITDA by an
estimated $49 million compared to the
prior year period.
- Extended planned maintenance at our Port Neches, TX facility reduced adjusted
EBITDA in the second quarter 2015 by approximately $35 million.
|
|
Three months
ended
|
|
Six months
ended
|
|
|
June
30,
|
|
March
31,
|
|
June
30,
|
In millions, except
per share amounts, unaudited
|
|
2015
|
|
2014
|
|
2015
|
|
2015
|
|
2014
|
|
|
|
|
|
|
|
|
|
|
|
Revenues
|
|
$ 2,740
|
|
$ 2,988
|
|
$ 2,589
|
|
$ 5,329
|
|
$ 5,743
|
|
|
|
|
|
|
|
|
|
|
|
Net income
attributable to Huntsman Corporation
|
|
$ 29
|
|
$ 119
|
|
$
5
|
|
$ 34
|
|
$ 173
|
Adjusted net
income(1)
|
|
$ 155
|
|
$ 145
|
|
$ 98
|
|
$ 253
|
|
$ 250
|
|
|
|
|
|
|
|
|
|
|
|
Diluted income per
share
|
|
$ 0.12
|
|
$ 0.48
|
|
$ 0.02
|
|
$ 0.14
|
|
$ 0.71
|
Adjusted diluted
income per share(1)
|
|
$ 0.63
|
|
$ 0.59
|
|
$ 0.40
|
|
$ 1.02
|
|
$ 1.02
|
|
|
|
|
|
|
|
|
|
|
|
EBITDA(1)
|
|
$ 216
|
|
$ 327
|
|
$ 159
|
|
$ 375
|
|
$ 588
|
Adjusted
EBITDA(1)
|
|
$ 385
|
|
$ 363
|
|
$ 285
|
|
$ 670
|
|
$ 692
|
|
|
|
|
|
|
|
|
|
|
|
See end of press
release for footnote explanations
|
Huntsman Corporation (NYSE: HUN) today reported second quarter
2015 results with revenues of $2,740
million and adjusted EBITDA of $385
million.
Peter R. Huntsman, our President
and CEO, commented:
"Our Performance Products and Advanced Materials businesses
continue to demonstrate remarkable earnings. Combined, these
businesses represent approximately 50% of our adjusted EBITDA; they
have EBITDA margins of approximately 20% and low earnings
volatility. Their EBITDA grew approximately 20% compared to the
prior year and we have growth projects in place for these
businesses that are expected to deliver an additional $100 million over the next couple of
years.
Notwithstanding EBITDA headwinds in the second quarter 2015
such as $49 million from foreign
currency and $35 million from the
extended maintenance outage at our Port
Neches, TX facility, our earnings are growing. We are
delivering on our announced restructuring savings and growth
projects. Our aggressive efforts to deliver $200 million of synergy and restructuring savings
within our Pigments and Additives division by the middle of 2016
are progressing on-time and according to plan."
Segment Analysis for 2Q15 Compared to 2Q14
Polyurethanes
The decrease in revenues in our Polyurethanes division for the
three months ended June 30, 2015
compared to the same period in 2014 was primarily due to a planned
maintenance outage at our PO/MTBE facility in Port Neches, Texas that extended into the
second quarter of 2015 and lower average selling prices.
PO/MTBE sales volumes decreased due to the planned maintenance
outage. MDI sales volumes increased due to improved demand in
the European region primarily due to improved demand within the
insulation, composite wood products and automotive
markets. PO/MTBE average selling prices decreased
in-line with lower pricing for high octane gasoline. MDI
average selling prices decreased in response to lower raw material
costs and the foreign currency exchange impact of a stronger U.S.
dollar against major European currencies. The decrease in
adjusted EBITDA was primarily due to lower PO/MTBE earnings,
partially offset by higher MDI contribution margins. We
estimate the reduction to adjusted EBITDA from the planned PO/MTBE
maintenance outage was approximately $30
million within this division in the second quarter 2015.
Performance Products
The decrease in revenues in our Performance Products division
for the three months ended June 30,
2015 compared to the same period in 2014 was due to lower
sales volumes and lower average selling prices. Sales volumes
decreased primarily due to the sale of our European commodity
surfactants business at the end of the second quarter 2014 although
sales volumes increased 2% excluding the impact of this sale.
Average selling prices decreased in response to lower raw material
costs and the foreign currency exchange impact of a stronger U.S.
dollar against major European currencies. The increase in
adjusted EBITDA was primarily due to higher contribution margins in
our amines and upstream intermediate businesses.
Advanced Materials
The decrease in revenues in our Advanced Materials division for
the three months ended June 30, 2015
compared to the same period in 2014 was primarily due to lower
sales volumes. Sales volumes decreased primarily due to the
de-selection of certain business and our restructuring
efforts. Average selling prices increased on a local currency
basis due to certain price increase initiatives and our focus on
higher value markets, but were more than offset by the foreign
currency exchange impact of a stronger U.S. dollar against major
European currencies. The increase in adjusted EBITDA was
primarily due to higher contribution margins from our focus on
higher value business and lower fixed costs.
Textile Effects
The decrease in revenues in our Textile Effects division for the
three months ended June 30, 2015
compared to the same period in 2014 was due to lower average
selling prices and lower sales volumes. Average selling
prices decreased primarily due to the impact of a stronger U.S.
dollar against major European currencies. Sales volumes
decreased primarily due to the de-selection of lower value business
and destocking within the fibers and dyes supply chain. The
increase in adjusted EBITDA was primarily due to higher
contribution margins from our focus on higher value business and
lower fixed costs.
Pigments and Additives
Pro forma for the acquisition of Rockwood Performance Additives
and Titanium Dioxide businesses, revenues decreased in our Pigments
and Additives division for the three months ended June 30, 2015 compared to the same period in 2014
due to lower sales volumes and lower average selling prices.
Sales volumes decreased primarily as a result of lower end use
demand in Europe and North
America. Average selling prices decreased primarily as a
result of high titanium dioxide industry inventory levels and the
foreign currency exchange impact of a stronger U.S. dollar against
major European currencies. The decrease in pro forma adjusted
EBITDA was primarily due to lower contribution margins for titanium
dioxide.
Corporate, LIFO and Other
Adjusted EBITDA from Corporate, LIFO and Other improved by
$16 million to a loss of $31 million for the three months ended
June 30, 2015 compared to a loss of
$47 million for the same period in
2014. The increase in adjusted EBITDA was primarily the
result of a benefit from LIFO inventory valuation income of
$9 million and an increase in income
from benzene sales of $5 million.
Liquidity, Capital Resources and Outstanding Debt
As of June 30, 2015, we had
$1,418 million of combined cash and
unused borrowing capacity compared to $1,601
million at December 31,
2014.
Total capital expenditures for the three months ended
June 30, 2015 were $147 million. We expect to spend
approximately $525 million on base
capital expenditures in 2015, net of reimbursements. In
addition, in 2015 we expect to spend approximately $100 million combined on our new Chinese MDI
facility, the completion of our Augusta,
Georgia color pigments facility and replacement of
Rockwood computer systems.
Based on the preliminary allocation of the purchase accounting
for the Rockwood Performance Additives and Titanium Dioxide
businesses, we expect our annual depreciation and amortization rate
to be approximately $400 million.
Income Taxes
During the three months ended June 30,
2015, we recorded an income tax expense of $34 million and paid $19
million in cash for income taxes. Our adjusted
effective income tax rate for the three months ended June 30, 2015 was 32%.
We expect our 2015 and long term adjusted effective tax rate to
be approximately 30%.
Earnings Conference Call Information
We will hold a conference call to discuss our second quarter
2015 financial results on Wednesday, July
29, 2015 at 10:00 a.m. ET.
Call-in numbers for the conference call:
U.S.
participants
(888) 713 - 4211
International
participants
(617) 213 - 4864
Passcode
43780722
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=PWX3M7V4U
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
July 29, 2015 and ending August 5, 2015.
Call-in numbers for the replay:
U.S.
participants
(888) 286 - 8010
International
participants
(617) 801 - 6888
Replay
code
27138577
Upcoming Conferences
During the third quarter a member of management will present at
the Jefferies Industrials Conference, August
11, 2015. A webcast of the presentation, if
applicable, along with accompanying materials will be available at
ir.huntsman.com.
Table 1 – Results
of Operations
|
|
|
|
|
|
|
|
Three months
ended
|
|
Six months
ended
|
|
|
June
30,
|
|
June
30,
|
In millions, except
per share amounts, unaudited
|
|
2015
|
|
2014
|
|
2015
|
|
2014
|
|
|
|
|
|
|
|
|
|
Revenues
|
|
$ 2,740
|
|
$ 2,988
|
|
$ 5,329
|
|
$ 5,743
|
Cost of goods
sold
|
|
2,191
|
|
2,483
|
|
4,330
|
|
4,788
|
Gross
profit
|
|
549
|
|
505
|
|
999
|
|
955
|
Operating
expenses
|
|
289
|
|
276
|
|
569
|
|
537
|
Restructuring,
impairment and plant closing costs
|
|
114
|
|
13
|
|
207
|
|
52
|
Operating
income
|
|
146
|
|
216
|
|
223
|
|
366
|
Interest
expense
|
|
(53)
|
|
(51)
|
|
(109)
|
|
(99)
|
Equity in income of
investment in unconsolidated affiliates
|
|
3
|
|
2
|
|
5
|
|
4
|
Loss on early
extinguishment of debt
|
|
(20)
|
|
-
|
|
(23)
|
|
-
|
Other (expense)
income
|
|
(1)
|
|
-
|
|
(2)
|
|
1
|
Income before
income taxes
|
|
75
|
|
167
|
|
94
|
|
272
|
Income tax
expense
|
|
(34)
|
|
(43)
|
|
(36)
|
|
(79)
|
Income from
continuing operations
|
|
41
|
|
124
|
|
58
|
|
193
|
Loss from
discontinued operations, net of tax(3)
|
|
(2)
|
|
-
|
|
(4)
|
|
(7)
|
Net
income
|
|
39
|
|
124
|
|
54
|
|
186
|
Net income
attributable to noncontrolling interests, net of tax
|
|
(10)
|
|
(5)
|
|
(20)
|
|
(13)
|
Net income
attributable to Huntsman Corporation
|
|
$ 29
|
|
$ 119
|
|
$ 34
|
|
$ 173
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted
EBITDA(1)
|
|
$ 385
|
|
$ 363
|
|
$ 670
|
|
$ 692
|
|
|
|
|
|
|
|
|
|
Adjusted net
income(1)
|
|
$ 155
|
|
$ 145
|
|
$ 253
|
|
$ 250
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic income per
share
|
|
$ 0.12
|
|
$ 0.49
|
|
$ 0.14
|
|
$ 0.72
|
Diluted income per
share
|
|
$ 0.12
|
|
$ 0.48
|
|
$ 0.14
|
|
$ 0.71
|
Adjusted diluted
income per share(1)
|
|
$ 0.63
|
|
$ 0.59
|
|
$ 1.02
|
|
$ 1.02
|
|
|
|
|
|
|
|
|
|
Common share
information:
|
|
|
|
|
|
|
|
|
Basic shares
outstanding
|
|
244.1
|
|
241.8
|
|
244.0
|
|
241.3
|
Diluted
shares
|
|
247.5
|
|
245.7
|
|
247.3
|
|
245.0
|
Diluted shares for
adjusted diluted income per share
|
|
247.5
|
|
245.7
|
|
247.3
|
|
245.0
|
|
|
|
|
|
|
|
|
|
See end of press
release for footnote explanations
|
Table 2 – Results
of Operations by Segment
|
|
|
|
|
|
|
|
|
|
|
Three months
ended
|
|
|
Six months
ended
|
|
|
|
|
June
30,
|
|
Better
/
|
|
June
30,
|
|
Better
/
|
In millions,
unaudited
|
|
2015
|
|
2014
|
|
(Worse)
|
|
2015
|
|
2014
|
|
(Worse)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Segment
Revenues:
|
|
|
|
|
|
|
|
|
|
|
|
|
Polyurethanes
|
|
$ 995
|
|
$ 1,310
|
|
(24)%
|
|
$ 1,885
|
|
$ 2,510
|
|
(25)%
|
Performance
Products
|
|
675
|
|
833
|
|
(19)%
|
|
1,331
|
|
1,598
|
|
(17)%
|
Advanced
Materials
|
|
282
|
|
324
|
|
(13)%
|
|
572
|
|
643
|
|
(11)%
|
Textile
Effects
|
|
216
|
|
248
|
|
(13)%
|
|
422
|
|
472
|
|
(11)%
|
Pigments &
Additives
|
|
592
|
|
340
|
|
74%
|
|
1,164
|
|
658
|
|
77%
|
Eliminations and
other
|
|
(20)
|
|
(67)
|
|
70%
|
|
(45)
|
|
(138)
|
|
67%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
|
|
$ 2,740
|
|
$ 2,988
|
|
(8)%
|
|
$ 5,329
|
|
$ 5,743
|
|
(7)%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Segment Adjusted
EBITDA(1):
|
|
|
|
|
|
|
|
|
|
|
|
Polyurethanes
|
|
$ 159
|
|
$ 197
|
|
(19)%
|
|
$ 264
|
|
$ 364
|
|
(27)%
|
Performance
Products
|
|
141
|
|
115
|
|
23%
|
|
262
|
|
233
|
|
12%
|
Advanced
Materials
|
|
58
|
|
53
|
|
9%
|
|
116
|
|
99
|
|
17%
|
Textile
Effects
|
|
23
|
|
22
|
|
5%
|
|
40
|
|
38
|
|
5%
|
Pigments &
Additives
|
|
35
|
|
23
|
|
52%
|
|
56
|
|
49
|
|
14%
|
Corporate, LIFO and
other
|
|
(31)
|
|
(47)
|
|
34%
|
|
(68)
|
|
(91)
|
|
25%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
|
|
$ 385
|
|
$ 363
|
|
6%
|
|
$ 670
|
|
$ 692
|
|
(3)%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
See end of press
release for footnote explanations
|
Table 3 – Pro
Forma (2) Results of Operations by
Segment
|
|
|
|
|
|
|
|
|
|
|
Three months
ended
|
|
|
Six months
ended
|
|
|
|
|
June
30,
|
|
Better
/
|
|
June
30,
|
|
Better
/
|
In millions,
unaudited, pro forma
|
|
2015
|
|
2014
|
|
(Worse)
|
|
2015
|
|
2014
|
|
(Worse)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Segment
Revenues:
|
|
|
|
|
|
|
|
|
|
|
|
|
Polyurethanes
|
|
$ 995
|
|
$ 1,318
|
|
(25)%
|
|
$ 1,885
|
|
$ 2,525
|
|
(25)%
|
Performance
Products
|
|
675
|
|
833
|
|
(19)%
|
|
1,331
|
|
1,598
|
|
(17)%
|
Advanced
Materials
|
|
282
|
|
324
|
|
(13)%
|
|
572
|
|
643
|
|
(11)%
|
Textile
Effects
|
|
216
|
|
248
|
|
(13)%
|
|
422
|
|
472
|
|
(11)%
|
Pigments &
Additives
|
|
592
|
|
740
|
|
(20)%
|
|
1,164
|
|
1,429
|
|
(19)%
|
Eliminations and
other
|
|
(20)
|
|
(67)
|
|
70%
|
|
(45)
|
|
(138)
|
|
67%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Pro forma
total
|
|
$ 2,740
|
|
$ 3,396
|
|
(19)%
|
|
$ 5,329
|
|
$ 6,529
|
|
(18)%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Segment Adjusted
EBITDA(1):
|
|
|
|
|
|
|
|
|
|
|
|
Polyurethanes
|
|
$ 159
|
|
$ 199
|
|
(20)%
|
|
$ 264
|
|
$ 368
|
|
(28)%
|
Performance
Products
|
|
141
|
|
115
|
|
23%
|
|
262
|
|
233
|
|
12%
|
Advanced
Materials
|
|
58
|
|
53
|
|
9%
|
|
116
|
|
99
|
|
17%
|
Textile
Effects
|
|
23
|
|
22
|
|
5%
|
|
40
|
|
38
|
|
5%
|
Pigments &
Additives
|
|
35
|
|
79
|
|
(56)%
|
|
56
|
|
152
|
|
(63)%
|
Corporate, LIFO and
other
|
|
(31)
|
|
(47)
|
|
34%
|
|
(68)
|
|
(91)
|
|
25%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Pro forma
total
|
|
$ 385
|
|
$ 421
|
|
(9)%
|
|
$ 670
|
|
$ 799
|
|
(16)%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
See end of press
release for footnote explanations
|
Table 4 – Factors
Impacting Sales Revenues
|
|
|
|
|
|
Three months
ended
|
|
|
June 30, 2015 vs.
2014
|
|
|
Average Selling
Price(a)
|
|
|
|
|
|
|
|
|
Local
|
|
Exchange
|
|
Sales
Mix
|
|
Sales
|
|
|
Unaudited
|
|
Currency
|
|
Rate
|
|
&
Other(c)
|
|
Volume(b)
|
|
Total
|
|
|
|
|
|
|
|
|
|
|
|
Polyurethanes
|
|
(9)%
|
|
(7)%
|
|
8%
|
|
(16)%
|
|
(24)%
|
Performance
Products
|
|
(6)%
|
|
(6)%
|
|
(4)%
|
|
(3)%
|
|
(19)%
|
Advanced
Materials
|
|
2%
|
|
(9)%
|
|
(2)%
|
|
(4)%
|
|
(13)%
|
Textile
Effects
|
|
(3)%
|
|
(6)%
|
|
3%
|
|
(7)%
|
|
(13)%
|
Pigments &
Additives
|
|
(10)%
|
|
(10)%
|
|
99%
|
|
(5)%
|
|
74%
|
Total
Company
|
|
(5)%
|
|
(8)%
|
|
15%
|
|
(10)%
|
|
(8)%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Six months
ended
|
|
|
June 30, 2015 vs.
2014
|
|
|
Average Selling
Price(a)
|
|
|
|
|
|
|
|
|
Local
|
|
Exchange
|
|
Sales
Mix
|
|
Sales
|
|
|
Unaudited
|
|
Currency
|
|
Rate
|
|
&
Other(c)
|
|
Volume(b)
|
|
Total
|
|
|
|
|
|
|
|
|
|
|
|
Polyurethanes
|
|
(7)%
|
|
(6)%
|
|
7%
|
|
(19)%
|
|
(25)%
|
Performance
Products
|
|
(4)%
|
|
(5)%
|
|
(2)%
|
|
(6)%
|
|
(17)%
|
Advanced
Materials
|
|
3%
|
|
(8)%
|
|
(1)%
|
|
(5)%
|
|
(11)%
|
Textile
Effects
|
|
3%
|
|
(6)%
|
|
1%
|
|
(9)%
|
|
(11)%
|
Pigments &
Additives
|
|
(9)%
|
|
(9)%
|
|
102%
|
|
(7)%
|
|
77%
|
Total
Company
|
|
(4)%
|
|
(7)%
|
|
16%
|
|
(12)%
|
|
(7)%
|
|
|
|
|
|
|
|
|
|
|
|
(a) Excludes sales
from tolling arrangements, by-products and raw
materials.
|
|
|
|
|
(b) Excludes sales
from by-products and raw materials.
|
|
|
|
|
|
|
(c) Includes full
revenue impact from the October 1, 2014 acquisition of the
Performance Additives and
|
Titanium
Dioxide businesses of Rockwood Holdings, Inc.
|
|
|
|
|
|
|
Table 5 -- Factors
Impacting Pro Forma Sales Revenue
|
|
|
|
|
|
|
|
|
|
|
|
Three months
ended
|
|
|
June 30, 2015 vs.
2014
|
|
|
Average
|
|
|
|
|
|
|
|
|
Selling
|
|
Sales
Mix
|
|
Sales
|
|
|
Unaudited, pro
forma
|
|
Price(a)
|
|
&
Other
|
|
Volume(b)
|
|
Total
|
|
|
|
|
|
|
|
|
|
Polyurethanes
|
|
(16)%
|
|
7%
|
|
(4)%
|
[c]
|
(13)%
|
Performance
Products
|
|
(12)%
|
|
(4)%
|
|
2%
|
(d)
|
(14)%
|
Advanced
Materials
|
|
(7)%
|
|
(2)%
|
|
----
|
(e)
|
(9)%
|
Textile
Effects
|
|
(9)%
|
|
3%
|
|
(7)%
|
|
(13)%
|
Pigments &
Additives
|
|
(20)%
|
|
2%
|
|
(2)%
|
|
(20)%
|
Total
Company
|
|
(15)%
|
|
6%
|
|
(2)%
|
|
(11)%
|
|
|
|
|
|
|
|
|
|
|
|
Six months
ended
|
|
|
June 30, 2015 vs.
2014
|
|
|
Average
|
|
|
|
|
|
|
|
|
Selling
|
|
Sales
Mix
|
|
Sales
|
|
|
Unaudited, pro
forma
|
|
Price(a)
|
|
&
Other
|
|
Volume(b)
|
|
Total
|
|
|
|
|
|
|
|
|
|
Polyurethanes
|
|
(13)%
|
|
7%
|
|
(19)%
|
|
(25)%
|
Performance
Products
|
|
(9)%
|
|
(2)%
|
|
(6)%
|
|
(17)%
|
Advanced
Materials
|
|
(5)%
|
|
(1)%
|
|
(5)%
|
|
(11)%
|
Textile
Effects
|
|
(3)%
|
|
1%
|
|
(9)%
|
|
(11)%
|
Pigments &
Additives
|
|
(19)%
|
|
2%
|
|
(2)%
|
|
(19)%
|
Total
Company
|
|
(13)%
|
|
7%
|
|
(12)%
|
|
(18)%
|
|
|
|
|
|
|
|
|
|
(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 planned maintenance at our PO/MTBE facility in
2Q15.
|
(d) Excludes volume
impact from closure of European surfactants plant in
2Q14.
|
(e) Excludes volume
impact from de-selection of lower margin business.
|
Table 6 –
Reconciliation of U.S. GAAP to Non-GAAP Measures
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income
Tax
|
|
Net
Income
|
|
Diluted
Income
|
|
|
EBITDA
|
|
Expense
|
|
Attrib. to
HUN Corp.
|
|
Per
Share
|
|
|
Three months
ended
|
|
Three months
ended
|
|
Three months
ended
|
|
Three months
ended
|
|
|
June
30,
|
|
June
30,
|
|
June
30,
|
|
June
30,
|
In millions, except
per share amounts, unaudited
|
|
2015
|
|
2014
|
|
2015
|
|
2014
|
|
2015
|
|
2014
|
|
2015
|
|
2014
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP(1)
|
|
$ 216
|
|
$ 327
|
|
$ (34)
|
|
$ (43)
|
|
$ 29
|
|
$ 119
|
|
$ 0.12
|
|
$ 0.48
|
Adjustments:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Acquisition and
integration expenses, purchase accounting adjustments
|
|
12
|
|
9
|
|
(3)
|
|
(2)
|
|
9
|
|
7
|
|
0.04
|
|
0.03
|
Loss from
discontinued operations, net of tax(3)
|
|
1
|
|
2
|
|
N/A
|
|
N/A
|
|
2
|
|
-
|
|
0.01
|
|
-
|
Loss (gain) on
disposition of businesses/assets
|
|
1
|
|
(2)
|
|
-
|
|
1
|
|
1
|
|
(1)
|
|
-
|
|
-
|
Loss on early
extinguishment of debt
|
|
20
|
|
-
|
|
(7)
|
|
-
|
|
13
|
|
-
|
|
0.05
|
|
-
|
Certain legal
settlements and related expenses
|
|
1
|
|
2
|
|
(1)
|
|
-
|
|
-
|
|
2
|
|
-
|
|
0.01
|
Amortization of
pension and postretirement actuarial losses
|
|
19
|
|
12
|
|
(5)
|
|
(4)
|
|
14
|
|
8
|
|
0.06
|
|
0.03
|
Restructuring,
impairment, plant closing and transition costs
|
|
115
|
|
13
|
|
(28)
|
|
(3)
|
|
87
|
|
10
|
|
0.35
|
|
0.04
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted(1)
|
|
$ 385
|
|
$ 363
|
|
$ (78)
|
|
$ (51)
|
|
$ 155
|
|
$ 145
|
|
$ 0.63
|
|
$ 0.59
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted income tax
expense
|
|
|
|
|
|
|
|
|
|
78
|
|
51
|
|
|
|
|
Net income
attributable to noncontrolling interests, net of tax
|
|
|
|
|
|
|
|
|
|
10
|
|
5
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted pre-tax
income(1)
|
|
|
|
|
|
|
|
|
|
$ 243
|
|
$ 201
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted effective
tax rate
|
|
|
|
|
|
|
|
|
|
32%
|
|
25%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income
Tax
|
|
Net
Income
|
|
Diluted
Income
|
|
|
EBITDA
|
|
Expense
|
|
Attrib. to
HUN Corp.
|
|
Per
Share
|
|
|
Three months
ended
|
|
Three months
ended
|
|
Three months
ended
|
|
Three months
ended
|
|
|
March
31,
|
|
March
31,
|
|
March
31,
|
|
March
31,
|
In millions, except
per share amounts, unaudited
|
|
2015
|
|
2015
|
|
2015
|
|
2015
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP(1)
|
|
$ 159
|
|
|
|
$ (2)
|
|
|
|
$ 5
|
|
|
|
$ 0.02
|
|
|
Adjustments:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Acquisition and
integration expenses, purchase accounting adjustments
|
|
9
|
|
|
|
(2)
|
|
|
|
7
|
|
|
|
0.03
|
|
|
Loss from
discontinued operations, net of tax(3)
|
|
1
|
|
|
|
N/A
|
|
|
|
2
|
|
|
|
0.01
|
|
|
Loss on early
extinguishment of debt
|
|
3
|
|
|
|
(1)
|
|
|
|
2
|
|
|
|
0.01
|
|
|
Certain legal
settlements and related expenses
|
|
1
|
|
|
|
-
|
|
|
|
1
|
|
|
|
-
|
|
|
Amortization of
pension and postretirement actuarial losses
|
|
18
|
|
|
|
(5)
|
|
|
|
13
|
|
|
|
0.05
|
|
|
Restructuring,
impairment, plant closing and transition costs
|
|
94
|
|
|
|
(26)
|
|
|
|
68
|
|
|
|
0.28
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted(1)
|
|
$ 285
|
|
|
|
$ (36)
|
|
|
|
$ 98
|
|
|
|
$ 0.40
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted income tax
expense
|
|
|
|
|
|
|
|
|
|
36
|
|
|
|
|
|
|
Net income
attributable to noncontrolling interests, net of tax
|
|
|
|
|
|
|
|
|
|
10
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted pre-tax
income(1)
|
|
|
|
|
|
|
|
|
|
$ 144
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted effective
tax rate
|
|
|
|
|
|
|
|
|
|
25%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income
Tax
|
|
Net
Income
|
|
Diluted
Income
|
|
|
EBITDA
|
|
Expense
|
|
Attrib. to
HUN Corp.
|
|
Per
Share
|
|
|
Six months
ended
|
|
Six months
ended
|
|
Six months
ended
|
|
Six months
ended
|
|
|
June
30,
|
|
June
30,
|
|
June
30,
|
|
June
30,
|
In millions, except
per share amounts, unaudited
|
|
2015
|
|
2014
|
|
2015
|
|
2014
|
|
2015
|
|
2014
|
|
2015
|
|
2014
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP(1)
|
|
$ 375
|
|
$ 588
|
|
$ (36)
|
|
$ (79)
|
|
$ 34
|
|
$ 173
|
|
$ 0.14
|
|
$ 0.71
|
Adjustments:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Acquisition and
integration expenses, purchase accounting adjustments
|
|
21
|
|
17
|
|
(5)
|
|
(4)
|
|
16
|
|
13
|
|
0.06
|
|
0.05
|
Loss from
discontinued operations, net of tax(3)
|
|
2
|
|
9
|
|
N/A
|
|
N/A
|
|
4
|
|
7
|
|
0.02
|
|
0.03
|
Loss (gain) on
disposition of businesses/assets
|
|
1
|
|
(2)
|
|
-
|
|
1
|
|
1
|
|
(1)
|
|
-
|
|
-
|
Loss on early
extinguishment of debt
|
|
23
|
|
-
|
|
(8)
|
|
-
|
|
15
|
|
-
|
|
0.06
|
|
-
|
Certain legal
settlements and related expenses
|
|
2
|
|
2
|
|
(1)
|
|
-
|
|
1
|
|
2
|
|
-
|
|
0.01
|
Amortization of
pension and postretirement actuarial losses
|
|
37
|
|
25
|
|
(10)
|
|
(8)
|
|
27
|
|
17
|
|
0.11
|
|
0.07
|
Restructuring,
impairment, plant closing and transition costs
|
|
209
|
|
53
|
|
(54)
|
|
(14)
|
|
155
|
|
39
|
|
0.63
|
|
0.16
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted(1)
|
|
$ 670
|
|
$ 692
|
|
$ (114)
|
|
$ (104)
|
|
$ 253
|
|
$ 250
|
|
$ 1.02
|
|
$ 1.02
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted income tax
expense
|
|
|
|
|
|
|
|
|
|
114
|
|
104
|
|
|
|
|
Net income
attributable to noncontrolling interests, net of tax
|
|
|
|
|
|
|
|
|
|
20
|
|
13
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted pre-tax
income(1)
|
|
|
|
|
|
|
|
|
|
$ 387
|
|
$ 367
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted effective
tax rate
|
|
|
|
|
|
|
|
|
|
29%
|
|
28%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
See end of press
release for footnote explanations
|
Table 7 – Pro
Forma (2) Reconciliation of U.S. GAAP to Non-GAAP
Measures
|
|
|
|
|
|
|
|
Pro Forma
EBITDA
|
|
|
Three months
ended
|
|
|
June
30,
|
In millions, except
per share amounts, unaudited, pro forma
|
|
2015
|
|
2014
|
|
|
|
|
|
GAAP(1)
|
|
$ 216
|
|
$ 383
|
Adjustments:
|
|
|
|
|
Allocation of
Rockwood general corporate overhead
|
|
-
|
|
7
|
Acquisition and
integration expenses, purchase accounting adjustments
|
|
12
|
|
3
|
Loss from
discontinued operations, net of tax(3)
|
|
1
|
|
2
|
Loss (gain) on
disposition of businesses/assets
|
|
1
|
|
(2)
|
Loss on early
extinguishment of debt
|
|
20
|
|
-
|
Certain legal
settlements and related expenses
|
|
1
|
|
2
|
Amortization of
pension and postretirement actuarial losses
|
|
19
|
|
13
|
Restructuring,
impairment, plant closing and transition costs
|
|
115
|
|
13
|
|
|
|
|
|
Pro forma
adjusted(2)
|
|
$ 385
|
|
$ 421
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Pro Forma
EBITDA
|
|
|
Three months
ended
|
|
|
March
31,
|
In millions, except
per share amounts, unaudited pro forma
|
|
2015
|
|
|
|
|
|
GAAP(1)
|
|
$ 159
|
|
|
Adjustments:
|
|
|
|
|
Acquisition and
integration expenses, purchase accounting adjustments
|
|
9
|
|
|
Loss from
discontinued operations, net of tax(3)
|
|
1
|
|
|
Loss on early
extinguishment of debt
|
|
3
|
|
|
Certain legal
settlements and related expenses
|
|
1
|
|
|
Amortization of
pension and postretirement actuarial losses
|
|
18
|
|
|
Restructuring,
impairment, plant closing and transition costs
|
|
94
|
|
|
|
|
|
|
|
Pro forma
adjusted(2)
|
|
$ 285
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Pro Forma
EBITDA
|
|
|
Six months
ended
|
|
|
June
30,
|
In millions, except
per share amounts, unaudited pro forma
|
|
2015
|
|
2014
|
|
|
|
|
|
GAAP(1)
|
|
$ 375
|
|
$ 691
|
Adjustments:
|
|
|
|
|
Allocation of general
corporate overhead
|
|
-
|
|
14
|
Acquisition and
integration expenses, purchase accounting adjustments
|
|
21
|
|
5
|
Loss from
discontinued operations, net of tax(3)
|
|
2
|
|
9
|
Loss (gain) on
disposition of businesses/assets
|
|
1
|
|
(2)
|
Loss on early
extinguishment of debt
|
|
23
|
|
-
|
Certain legal
settlements and related expenses
|
|
2
|
|
2
|
Amortization of
pension and postretirement actuarial losses
|
|
37
|
|
27
|
Restructuring,
impairment, plant closing and transition costs
|
|
209
|
|
53
|
|
|
|
|
|
Pro forma
adjusted(2)
|
|
$ 670
|
|
$ 799
|
|
|
|
|
|
See end of press
release for footnote explanations
|
|
|
|
|
Table 8 –
Reconciliation of Net Income to EBITDA
|
|
|
|
Three months
ended
|
|
Six months
ended
|
|
|
June
30,
|
|
March
31,
|
|
June
30,
|
In millions,
unaudited
|
|
2015
|
|
2014
|
|
2015
|
|
2015
|
|
2014
|
|
|
|
|
|
|
|
|
|
|
|
Net income
attributable to Huntsman Corporation
|
|
$ 29
|
|
$ 119
|
|
$
5
|
|
$ 34
|
|
$ 173
|
Interest
expense
|
|
53
|
|
51
|
|
56
|
|
109
|
|
99
|
Income tax expense
from continuing operations
|
|
34
|
|
43
|
|
2
|
|
36
|
|
79
|
Income tax expense
(benefit) from discontinued operations(3)
|
1
|
|
(2)
|
|
1
|
|
2
|
|
(2)
|
Depreciation and
amortization
|
|
99
|
|
116
|
|
95
|
|
194
|
|
239
|
|
|
|
|
|
|
|
|
|
|
|
EBITDA(1)
|
|
216
|
|
327
|
|
159
|
|
375
|
|
588
|
|
|
|
|
|
|
|
|
|
|
|
Pro forma
adjustments to:
|
|
|
|
|
|
|
|
|
|
|
Net income
attributable to Huntsman Corporation
|
|
-
|
|
23
|
|
-
|
|
-
|
|
38
|
Interest
expense
|
|
-
|
|
8
|
|
-
|
|
-
|
|
23
|
Income tax expense
from continuing operations
|
|
-
|
|
19
|
|
-
|
|
-
|
|
28
|
Depreciation and
amortization
|
|
-
|
|
6
|
|
-
|
|
-
|
|
14
|
|
|
|
|
|
|
|
|
|
|
|
Pro forma
EBITDA(2)
|
|
$ 216
|
|
$ 383
|
|
$ 159
|
|
$ 375
|
|
$ 691
|
|
|
|
|
|
|
|
|
|
|
|
See end of press
release for footnote explanations
|
Table 9 – Selected
Balance Sheet Items
|
|
|
|
|
|
|
|
|
|
June
30,
|
|
March
31,
|
|
December
31,
|
In
millions
|
|
2015
|
|
2015
|
|
2014
|
|
|
(unaudited)
|
|
(unaudited)
|
|
|
|
|
|
|
|
|
|
Cash
|
|
$
608
|
|
$ 1,003
|
|
$
870
|
Accounts and notes
receivable, net
|
|
1,754
|
|
1,668
|
|
1,707
|
Inventories
|
|
1,938
|
|
1,869
|
|
2,025
|
Other current
assets
|
|
295
|
|
347
|
|
437
|
Property, plant and
equipment, net
|
|
4,328
|
|
4,250
|
|
4,423
|
Other
assets
|
|
1,655
|
|
1,614
|
|
1,540
|
|
|
|
|
|
|
|
Total
assets
|
|
$ 10,578
|
|
$ 10,751
|
|
$ 11,002
|
|
|
|
|
|
|
|
Accounts
payable
|
|
$ 1,209
|
|
$ 1,191
|
|
$ 1,275
|
Other current
liabilities
|
|
786
|
|
754
|
|
790
|
Current portion of
debt
|
|
127
|
|
529
|
|
267
|
Long-term
debt
|
|
4,920
|
|
4,829
|
|
4,933
|
Other
liabilities
|
|
1,694
|
|
1,675
|
|
1,786
|
Total
equity
|
|
1,842
|
|
1,773
|
|
1,951
|
|
|
|
|
|
|
|
Total liabilities
and equity
|
|
$ 10,578
|
|
$ 10,751
|
|
$ 11,002
|
Table 10 –
Outstanding Debt
|
|
|
|
|
|
|
|
|
|
June
30,
|
|
March
31,
|
|
December
31,
|
In
millions
|
|
2015
|
|
2015
|
|
2014
|
|
|
(unaudited)
|
|
(unaudited)
|
|
|
|
|
|
|
|
|
|
Debt:
|
|
|
|
|
|
|
Senior credit
facilities
|
|
$ 2,509
|
|
$ 2,512
|
|
$ 2,528
|
Accounts receivable
programs
|
|
217
|
|
214
|
|
229
|
Senior
notes
|
|
1,884
|
|
1,862
|
|
1,596
|
Senior subordinated
notes
|
|
198
|
|
493
|
|
531
|
Variable interest
entities
|
|
165
|
|
198
|
|
207
|
Other debt
|
|
74
|
|
79
|
|
109
|
|
|
|
|
|
|
|
Total debt -
excluding affiliates
|
|
5,047
|
|
5,358
|
|
5,200
|
|
|
|
|
|
|
|
Total cash
|
|
608
|
|
1,003
|
|
870
|
|
|
|
|
|
|
|
Net debt-
excluding affiliates
|
|
$ 4,439
|
|
$ 4,355
|
|
$ 4,330
|
Table 11 –
Summarized Statement of Cash Flows
|
|
|
|
|
|
|
|
Three months
ended
|
|
Six months
ended
|
|
|
June
30,
|
|
June
30,
|
In millions,
unaudited
|
|
2015
|
|
2015
|
|
2014
|
|
|
|
|
|
|
|
Total cash at
beginning of period(a)
|
|
$
1,003
|
|
$ 870
|
|
$ 529
|
|
|
|
|
|
|
|
Net cash provided by
(used in) operating activities
|
|
147
|
|
181
|
|
(17)
|
Net cash used in
investing activities
|
|
(152)
|
|
(233)
|
|
(202)
|
Net cash (used in)
provided by financing activities
|
|
(391)
|
|
(202)
|
|
103
|
Effect of exchange
rate changes on cash
|
|
1
|
|
(7)
|
|
(1)
|
Change in restricted
cash
|
|
-
|
|
(1)
|
|
-
|
|
|
|
|
|
|
|
Total cash at end
of period(a)
|
|
$
608
|
|
$ 608
|
|
$ 412
|
|
|
|
|
|
|
|
Supplemental cash
flow information:
|
|
|
|
|
|
|
Cash paid for
interest
|
|
$
(67)
|
|
$ (115)
|
|
$ (91)
|
Cash paid for income
taxes
|
|
(19)
|
|
(30)
|
|
(143)
|
Cash paid for capital
expenditures
|
|
(147)
|
|
(296)
|
|
(214)
|
Depreciation and
amortization
|
|
99
|
|
194
|
|
239
|
|
|
|
|
|
|
|
Changes in primary
working capital:
|
|
|
|
|
|
|
Accounts and notes
receivable
|
|
$
(93)
|
|
$ (142)
|
|
$ (300)
|
Inventories
|
|
(47)
|
|
7
|
|
(109)
|
Accounts
payable
|
|
14
|
|
12
|
|
94
|
|
|
|
|
|
|
|
Total cash used in
primary working capital
|
|
$
(126)
|
|
$ (123)
|
|
$ (315)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(a) Includes
restricted cash.
|
|
|
|
|
|
|
Footnotes
|
|
|
(1)
|
We use EBITDA and
adjusted EBITDA to measure the operating performance of our
business. We provide adjusted net income because we feel it
provides meaningful insight for the investment community into the
performance of our business. We believe that net income
(loss) attributable to Huntsman Corporation is the performance
measure calculated and presented in accordance with generally
accepted accounting principles in the U.S. ("GAAP") that is most
directly comparable to EBITDA, adjusted EBITDA and adjusted net
income. Additional information with respect to our use of
each of these financial measures follows:
|
|
|
|
EBITDA is defined as
net income (loss) attributable to Huntsman Corporation before
interest, income taxes, and depreciation and amortization. EBITDA
as used herein is not necessarily comparable to other similarly
titled measures of other companies. The reconciliation of EBITDA to
net income (loss) attributable to Huntsman Corporation is set forth
in Table 5 above.
|
|
|
|
Adjusted EBITDA is
computed by eliminating the following from EBITDA: (a)
acquisition and integration expenses, purchase accounting
adjustments; (b) loss (gain) on initial consolidation of
subsidiaries; (c) EBITDA from discontinued operations; (d) loss
(gain) on disposition of businesses/assets; (e) loss on early
extinguishment of debt; (f) extraordinary loss (gain) on the
acquisition of a business; (g) certain legal settlements and
related expenses; (h) amortization of pension and postretirement
actuarial losses (gains); and (i) restructuring, impairment, plant
closing and transition costs (credits). The reconciliation of
adjusted EBITDA to EBITDA is set forth in Table 4 above.
|
|
|
|
Adjusted net income
(loss) is computed by eliminating the after tax impact of the
following items from net income (loss) attributable to Huntsman
Corporation: (a) acquisition and integration expenses, purchase
accounting adjustments; (b) impact of certain foreign tax credit
elections; (c) loss (gain) on initial consolidation of
subsidiaries; (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)
extraordinary loss (gain) on the acquisition of a business; (i)
certain legal settlements and related expenses; (j) amortization of
pension and postretirement actuarial losses (gains); and (k)
restructuring, impairment, plant closing and transition costs
(credits). We do not adjust for changes in tax
valuation allowances because we do not believe it provides more
meaningful information than is provided under GAAP. The
reconciliation of adjusted net income (loss) to net income (loss)
attributable to Huntsman Corporation common stockholders is set
forth in Table 4 above.
|
|
|
(2)
|
Pro forma adjusted as
if it had occurred at the beginning of the relevant period to (a)
include the October 1, 2014 acquisition of the Performance
Additives and Titanium Dioxide businesses of Rockwood Holdings,
Inc.; (b) to exclude the related sale of our TR52 product line –
used in printing inks – to Henan Billions Chemicals Co., Ltd. in
December 2014; and (c) to exclude the allocation of general
corporate overhead by Rockwood.
|
|
|
(3)
|
During the first
quarter 2010 we closed our Australian styrenics operations; results
from this business are treated as discontinued
operations.
|
About Huntsman:
Huntsman Corporation is a publicly
traded global manufacturer and marketer of differentiated chemicals
with 2014 revenues of approximately $13
billion including the acquisition of Rockwood's performance additives and titanium
dioxide businesses. 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 more than 30 countries
and employ approximately 16,000 associates within our 5 distinct
business divisions. 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, 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-releases-second-quarter-2015-results-adjusted-earnings-per-share-improves-more-than-50-compared-to-the-first-quarter-300120339.html
SOURCE Huntsman Corporation