THE WOODLANDS, Texas,
Feb. 11, 2016 /PRNewswire/ --
Fourth Quarter 2015 Highlights
- Adjusted EBITDA was $240 million
compared to $292 million in the prior
year period and $311 million in the
prior quarter.
- Adjusted diluted income per share was $0.51 compared to $0.33 in the prior year period and $0.47 in the prior quarter.
- Net income attributable to Huntsman Corporation was
$4 million compared to net loss of
$38 million in the prior year period
and net income of $55 million in the
prior quarter.
- The stronger U.S. dollar reduced adjusted EBITDA by an
estimated $24 million compared to the
prior year period; a negative impact of approximately $0.07 loss per diluted share.
- The combination of effective tax planning, certain unusual tax
benefits and regional mix of income created an approximate
$0.25 per diluted share net tax
benefit during the fourth quarter 2015.
- $100 million accelerated share
repurchase program completed; $50
million authorization remaining.
Full Year 2015 Highlights
- Adjusted EBITDA was $1,221
million compared to $1,340
million in the prior year.
- Adjusted diluted income per share was $2.00 compared to $1.94 in the prior year.
- Net income attributable to Huntsman Corporation was
$93 million compared to $323 million in the prior year.
- The stronger U.S. dollar reduced adjusted EBITDA by an
estimated $136 million compared to
the prior year; a negative impact of approximately $0.39 loss per diluted share.
- Planned PO/MTBE maintenance at our Port Neches, TX facility reduced adjusted
EBITDA in 2015 by approximately $95
million. This maintenance occurs approximately once every
five years.
|
|
Three months
ended
|
|
Twelve months
ended
December
31,
|
|
|
December
31,
|
|
September
30,
|
|
In millions, except
per share amounts, unaudited
|
|
2015
|
|
2014
|
|
2015
|
|
2015
|
|
2014
|
|
|
|
|
|
|
|
|
|
|
|
Revenues
|
|
$2,332
|
|
$2,951
|
|
$
2,638
|
|
$10,299
|
|
$11,578
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss)
attributable to Huntsman Corporation
|
$ 4
|
|
$ (38)
|
|
$
55
|
|
$ 93
|
|
$ 323
|
Adjusted net
income(1)
|
|
$ 124
|
|
$ 81
|
|
$
115
|
|
$ 492
|
|
$ 478
|
|
|
|
|
|
|
|
|
|
|
|
Diluted income (loss)
per share
|
|
$ 0.02
|
|
$ (0.16)
|
|
$
0.22
|
|
$ 0.38
|
|
$ 1.31
|
Adjusted diluted
income per share(1)
|
|
$ 0.51
|
|
$ 0.33
|
|
$
0.47
|
|
$ 2.00
|
|
$ 1.94
|
|
|
|
|
|
|
|
|
|
|
|
EBITDA(1)
|
|
$ 111
|
|
$ 141
|
|
$
255
|
|
$ 741
|
|
$ 1,022
|
Adjusted
EBITDA(1)
|
|
$ 240
|
|
$ 292
|
|
$
311
|
|
$ 1,221
|
|
$ 1,340
|
|
|
|
|
|
|
|
|
|
|
|
See end of press
release for footnote explanations
|
|
|
|
|
|
Huntsman Corporation (NYSE: HUN) today reported fourth quarter
2015 results with revenues of $2,332
million and adjusted EBITDA of $240
million.
Peter R. Huntsman, our President
and CEO, commented:
"During the fourth quarter this year, EBITDA from our
cyclical businesses – which include our MTBE, ethylene and TiO2
products – decreased approximately $78
million compared to the prior year. This overshadowed the
real strength of our portfolio which is in our downstream
differentiated businesses. Excluding approximately
$24 million of foreign currency
headwind, the EBITDA from our differentiated businesses improved
approximately $50 million compared to
the prior year or 27%.
"In 2016, primarily as a result of lower priced oil and a
lower global economic growth environment, we expect continued
EBITDA pressure on our cyclical businesses. Growth from our
differentiated businesses will offset cyclical pressure and
inflationary costs such that we expect our 2016 EBITDA to be a
similar amount to 2015. Importantly however, we expect our
free cash flow generation to improve by $350
million in 2016 through lower capital expenditures,
restructuring and maintenance. In 2016 we will continue to
pursue actively a separation of our TiO2 business through a spinoff
to shareholders or other strategic transaction."
Segment Analysis for 4Q15 Compared to 4Q14
Polyurethanes
The decrease in revenues in our Polyurethanes division for the
three months ended December 31, 2015
compared to the same period in 2014 was due to lower average
selling prices and lower MTBE sales volumes. MDI average
selling prices decreased in response to lower raw material costs
and the currency exchange impact of a stronger U.S. dollar
primarily against the Euro. PO/MTBE average selling prices
decreased in-line with lower pricing for high octane
gasoline. MDI sales volumes increased due to higher demand as
well as competitor outages in the Asian region. The decrease
in adjusted EBITDA was primarily due to lower MTBE contribution
margins and the foreign currency exchange impact of a stronger U.S.
dollar primarily against the Euro partially offset by higher MDI
contribution margins.
Performance Products
The decrease in revenues in our Performance Products division
for the three months ended December 31,
2015 compared to the same period in 2014 was primarily due
to lower average selling prices and lower sales volumes.
Average selling prices decreased primarily in response to lower raw
material costs and the foreign currency exchange impact of a
stronger U.S. dollar primarily against the Euro. Sales
volumes decreased primarily due to customer destocking and
competitive pressure. The decrease in adjusted EBITDA was
primarily due to lower ethylene contribution margins partially
offset by higher contribution margins in our amines business.
Advanced Materials
The decrease in revenues in our Advanced Materials division for
the three months ended December 31,
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 de-selection of certain business,
customer destocking and competitive pressure. Average selling
prices increased on a local currency basis in the Americas
primarily due to our focus on higher value markets but this was
more than offset by the foreign currency exchange impact of a
stronger U.S. dollar primarily against the Euro globally. The
increase in adjusted EBITDA was primarily due to higher global
contribution margins from lower raw material costs and higher
selling prices in the Americas.
Textile Effects
The decrease in revenues in our Textile Effects division for the
three months ended December 31, 2015
compared to the same period in 2014 was due to lower average
selling prices and lower sales volumes. Average selling
prices increased on a local currency basis due to certain price
increase initiatives but this was more than offset by the foreign
currency exchange impact of a stronger U.S. dollar primarily
against the Euro. Sales volumes decreased primarily due to
the de-selection of lower value business and challenging market
conditions. The increase in adjusted EBITDA was primarily due
to higher contribution margins from lower raw material costs and
product mix improvements.
Pigments and Additives
The decrease in revenues in our Pigments and Additives division
for the three months ended December 31,
2015 compared to the same period in 2014 was due to lower
average selling prices and lower sales volumes. Average
selling prices decreased primarily as a result of titanium dioxide
over supply in the market place and the foreign currency exchange
impact of a stronger U.S. dollar primarily against the Euro.
Sales volumes decreased primarily as a result of lower end use
demand. The decrease in adjusted EBITDA was primarily due to
lower contribution margins for titanium dioxide.
Corporate, LIFO and Other
Adjusted EBITDA from Corporate, LIFO and Other increased by
$10 million to a loss of $38 million for the three months ended
December 31, 2015 compared to a loss
of $48 million for the same period in
2014. The increase in adjusted EBITDA was primarily the
result of an increase in income from benzene sales of $7 million.
Liquidity, Capital Resources and Outstanding Debt
As of December 31, 2015, we had
$1,023 million of combined cash and
unused borrowing capacity compared to $1,601
million on December 31,
2014.
On September 29, 2015, our Board
of Directors authorized the repurchase of up to $150 million in shares of our common stock.
On October 27, 2015 we entered into
and funded an accelerated share repurchase agreement to repurchase
$100 million of our common
stock. The accelerated share repurchase was completed in
January 2016 with 8.6 million shares
repurchased.
During 2015 we spent $663 million
on capital expenditures; we expect to spend approximately
$450 million annually on capital
expenditures in 2016 and 2017.
Income Taxes
During the three months ended December
31, 2015, we recorded an income tax benefit of $39 million as a result of the combination of
effective tax planning, certain unusual tax benefits and the
regional mix of income. During the same period we paid
$45 million in cash for income
taxes.
We expect our 2016 and long term adjusted effective tax rate to
be approximately 30%.
Earnings Conference Call Information
We will hold a conference call to discuss our fourth quarter and
full year 2015 financial results on Thursday, February 11, 2016 at 9:00 a.m. ET.
Call-in numbers for the conference call:
U.S.
participants
(888) 713 - 4199
International participants
(617) 213 - 4861
Passcode
810 262 68#
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=P8K7QH79L
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 11, 2016 and ending
February 18, 2016.
Call-in numbers for the replay:
U.S.
participants
(888) 286 - 8010
International
participants
(617) 801 - 6888
Replay
code
29385180
Table 1 – Results
of Operations
|
|
|
|
Three months
ended
|
|
Twelve months
ended
|
|
|
December
31,
|
|
December
31,
|
In millions, except
per share amounts, unaudited
|
|
2015
|
|
2014
|
|
2015
|
|
2014
|
|
|
|
|
|
|
|
|
|
Revenues
|
|
$2,332
|
|
$2,951
|
|
$10,299
|
|
$11,578
|
Cost of goods
sold
|
|
1,956
|
|
2,502
|
|
8,451
|
|
9,659
|
Gross
profit
|
|
376
|
|
449
|
|
1,848
|
|
1,919
|
Operating
expenses
|
|
282
|
|
317
|
|
1,141
|
|
1,128
|
Restructuring,
impairment and plant closing costs
|
|
81
|
|
67
|
|
302
|
|
158
|
Operating
income
|
|
13
|
|
65
|
|
405
|
|
633
|
Interest
expense
|
|
(47)
|
|
(57)
|
|
(205)
|
|
(205)
|
Equity in income of
investment in unconsolidated affiliates
|
|
1
|
|
-
|
|
6
|
|
6
|
Loss on early
extinguishment of debt
|
|
-
|
|
(28)
|
|
(31)
|
|
(28)
|
Other income
(loss)
|
|
3
|
|
(2)
|
|
1
|
|
(2)
|
(Loss) income
before income taxes
|
|
(30)
|
|
(22)
|
|
176
|
|
404
|
Income tax benefit
(expense)
|
|
39
|
|
(12)
|
|
(46)
|
|
(51)
|
Income (loss) from
continuing operations
|
|
9
|
|
(34)
|
|
130
|
|
353
|
Loss from
discontinued operations, net of tax(3)
|
|
-
|
|
(1)
|
|
(4)
|
|
(8)
|
Net income
(loss)
|
|
9
|
|
(35)
|
|
126
|
|
345
|
Net income
attributable to noncontrolling interests, net of tax
|
|
(5)
|
|
(3)
|
|
(33)
|
|
(22)
|
Net income (loss)
attributable to Huntsman Corporation
|
|
$ 4
|
|
$ (38)
|
|
$ 93
|
|
$ 323
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted
EBITDA(1)
|
|
$ 240
|
|
$ 292
|
|
$ 1,221
|
|
$ 1,340
|
|
|
|
|
|
|
|
|
|
Adjusted net
income(1)
|
|
$ 124
|
|
$ 81
|
|
$ 492
|
|
$ 478
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic income
(loss) per share
|
|
$ 0.02
|
|
$ (0.16)
|
|
$ 0.38
|
|
$ 1.33
|
Diluted income
(loss) per share
|
|
$ 0.02
|
|
$ (0.16)
|
|
$ 0.38
|
|
$ 1.31
|
Adjusted diluted
income per share(1)
|
|
$ 0.51
|
|
$ 0.33
|
|
$ 2.00
|
|
$ 1.94
|
|
|
|
|
|
|
|
|
|
Common share
information:
|
|
|
|
|
|
|
|
|
Basic shares
outstanding
|
|
239
|
|
243
|
|
243
|
|
242
|
Diluted
shares
|
|
241
|
|
243
|
|
245
|
|
246
|
Diluted shares for
adjusted diluted income per share
|
|
241
|
|
247
|
|
245
|
|
246
|
|
|
|
|
|
|
|
|
|
See end of press
release for footnote explanations
|
Table 2 – Results
of Operations by Segment
|
|
|
|
Three months
ended
|
|
|
Twelve months
ended
|
|
|
|
|
December
31,
|
|
Better
/
(Worse)
|
|
December
31,
|
|
Better
/
(Worse)
|
In millions,
unaudited
|
|
2015
|
|
2014
|
|
|
2015
|
|
2014
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Segment
Revenues:
|
|
|
|
|
|
|
|
|
|
|
|
|
Polyurethanes
|
|
$ 909
|
|
$1,201
|
|
(24)%
|
|
$ 3,811
|
|
$ 5,032
|
|
(24)%
|
Performance
Products
|
|
552
|
|
712
|
|
(22)%
|
|
2,501
|
|
3,072
|
|
(19)%
|
Advanced
Materials
|
|
256
|
|
295
|
|
(13)%
|
|
1,103
|
|
1,248
|
|
(12)%
|
Textile
Effects
|
|
186
|
|
203
|
|
(8)%
|
|
804
|
|
896
|
|
(10)%
|
Pigments &
Additives
|
|
453
|
|
573
|
|
(21)%
|
|
2,160
|
|
1,549
|
|
39%
|
Eliminations and
other
|
|
(24)
|
|
(33)
|
|
27%
|
|
(80)
|
|
(219)
|
|
63%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
|
|
$2,332
|
|
$2,951
|
|
(21)%
|
|
$10,299
|
|
$11,578
|
|
(11)%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Segment Adjusted
EBITDA(1):
|
|
|
|
|
|
|
|
|
|
|
|
Polyurethanes
|
|
$ 141
|
|
$ 171
|
|
(18)%
|
|
$ 573
|
|
$ 722
|
|
(21)%
|
Performance
Products
|
|
76
|
|
111
|
|
(32)%
|
|
460
|
|
473
|
|
(3)%
|
Advanced
Materials
|
|
48
|
|
43
|
|
12%
|
|
220
|
|
199
|
|
11%
|
Textile
Effects
|
|
13
|
|
6
|
|
117%
|
|
63
|
|
58
|
|
9%
|
Pigments &
Additives
|
|
-
|
|
9
|
|
(100)%
|
|
61
|
|
76
|
|
(20)%
|
Corporate, LIFO and
other
|
|
(38)
|
|
(48)
|
|
21%
|
|
(156)
|
|
(188)
|
|
17%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
|
|
$ 240
|
|
$ 292
|
|
(18)%
|
|
$ 1,221
|
|
$ 1,340
|
|
(9)%
|
|
See end of press
release for footnote explanations
|
Table 3 – Pro
Forma (2) Results of Operations by
Segment
|
|
|
|
Three months
ended
|
|
|
Twelve months
ended
|
|
|
|
|
December
31,
|
|
Better
/
(Worse)
|
|
December
31,
|
|
Better
/
(Worse)
|
In millions,
unaudited, pro forma
|
|
2015
|
|
2014
|
|
|
2015
|
|
2014
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Segment
Revenues:
|
|
|
|
|
|
|
|
|
|
|
|
|
Polyurethanes
|
|
$ 909
|
|
$1,201
|
|
(24)%
|
|
$ 3,811
|
|
$ 5,053
|
|
(25)%
|
Performance
Products
|
|
552
|
|
712
|
|
(22)%
|
|
2,501
|
|
3,072
|
|
(19)%
|
Advanced
Materials
|
|
256
|
|
295
|
|
(13)%
|
|
1,103
|
|
1,248
|
|
(12)%
|
Textile
Effects
|
|
186
|
|
203
|
|
(8)%
|
|
804
|
|
896
|
|
(10)%
|
Pigments &
Additives
|
|
453
|
|
559
|
|
(19)%
|
|
2,160
|
|
2,673
|
|
(19)%
|
Eliminations and
other
|
|
(24)
|
|
(33)
|
|
27%
|
|
(80)
|
|
(219)
|
|
63%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Pro forma
total
|
|
$2,332
|
|
$2,937
|
|
(21)%
|
|
$10,299
|
|
$12,723
|
|
(19)%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Segment Adjusted
EBITDA(1):
|
|
|
|
|
|
|
|
|
|
|
|
Polyurethanes
|
|
$ 141
|
|
$ 171
|
|
(18)%
|
|
$ 573
|
|
$ 728
|
|
(21)%
|
Performance
Products
|
|
76
|
|
111
|
|
(32)%
|
|
460
|
|
473
|
|
(3)%
|
Advanced
Materials
|
|
48
|
|
43
|
|
12%
|
|
220
|
|
199
|
|
11%
|
Textile
Effects
|
|
13
|
|
6
|
|
117%
|
|
63
|
|
58
|
|
9%
|
Pigments &
Additives
|
|
-
|
|
17
|
|
(100)%
|
|
61
|
|
225
|
|
(73)%
|
Corporate, LIFO and
other
|
|
(38)
|
|
(48)
|
|
21%
|
|
(156)
|
|
(188)
|
|
17%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Pro forma
total
|
|
$ 240
|
|
$ 300
|
|
(20)%
|
|
$ 1,221
|
|
$ 1,495
|
|
(18)%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
See end of press
release for footnote explanations
|
Table 4 – Factors
Impacting Sales Revenues
|
|
|
|
Three months
ended
|
|
|
December 31, 2015
vs. 2014
|
|
|
Average Selling
Price(a)
|
|
|
|
|
|
|
|
|
Local
|
|
Exchange
|
|
Sales
Mix
|
|
Sales
|
|
|
Unaudited
|
|
Currency
|
|
Rate
|
|
&
Other
|
|
Volume(b)
|
|
Total
|
|
|
|
|
|
|
|
|
|
|
|
Polyurethanes
|
|
(19)%
|
|
(4)%
|
|
2%
|
|
(3)%
|
|
(24)%
|
Performance
Products
|
|
(11)%
|
|
(4)%
|
|
(1)%
|
|
(6)%
|
|
(22)%
|
Advanced
Materials
|
|
2%
|
|
(8)%
|
|
1%
|
|
(8)%
|
|
(13)%
|
Textile
Effects
|
|
2%
|
|
(7)%
|
|
0%
|
|
(3)%
|
|
(8)%
|
Pigments &
Additives
|
|
(9)%
|
|
(7)%
|
|
(2)%
|
|
(3)%
|
|
(21)%
|
Total
Company
|
|
(14)%
|
|
(5)%
|
|
2%
|
|
(4)%
|
|
(21)%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Twelve months
ended
|
|
|
December 31, 2015
vs. 2014
|
|
|
Average Selling
Price(a)
|
|
|
|
|
|
|
|
|
Local
|
|
Exchange
|
|
Sales
Mix
|
|
Sales
|
|
|
Unaudited
|
|
Currency
|
|
Rate
|
|
&
Other(c)
|
|
Volume(b)
|
|
Total
|
|
|
|
|
|
|
|
|
|
|
|
Polyurethanes
|
|
(12)%
|
|
(5)%
|
|
3%
|
|
(10)%
|
|
(24)%
|
Performance
Products
|
|
(7)%
|
|
(5)%
|
|
(3)%
|
|
(4)%
|
|
(19)%
|
Advanced
Materials
|
|
2%
|
|
(8)%
|
|
(1)%
|
|
(5)%
|
|
(12)%
|
Textile
Effects
|
|
1%
|
|
(6)%
|
|
2%
|
|
(7)%
|
|
(10)%
|
Pigments &
Additives
|
|
(10)%
|
|
(8)%
|
|
62%
|
|
(5)%
|
|
39%
|
Total
Company
|
|
(8)%
|
|
(6)%
|
|
10%
|
|
(7)%
|
|
(11)%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Pro
forma
|
|
|
|
|
Twelve months
ended
|
|
|
|
|
December 31, 2015
vs. 2014
|
|
|
|
|
Average
|
|
|
|
|
|
|
|
|
|
|
Selling
|
|
Sales
Mix
|
|
Sales
|
|
|
|
|
Unaudited, pro
forma
|
|
Price(a)
|
|
&
Other
|
|
Volume(b)
|
|
Total
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Polyurethanes
|
|
(17)%
|
|
2%
|
|
(2)%
|
|
(17)%
|
(d)
|
Performance
Products
|
|
(12)%
|
|
(3)%
|
|
(2)%
|
|
(17)%
|
(e)
|
Advanced
Materials
|
|
(6)%
|
|
(1)%
|
|
(5)%
|
|
(12)%
|
|
|
Textile
Effects
|
|
(5)%
|
|
2%
|
|
(7)%
|
|
(10)%
|
|
|
Pigments &
Additives
|
|
(19)%
|
|
2%
|
|
(2)%
|
|
(19)%
|
(f)
|
Total
Company
|
|
(15)%
|
|
2%
|
|
(2)%
|
|
(15)%
|
|
|
|
|
(a)
|
Excludes sales from
tolling arrangements, by-products and raw materials.
|
(b)
|
Excludes sales from
by-products and raw materials.
|
(c)
|
Includes impact from
the acquisition of the Performance Additives and Titanium Dioxide businesses of Rockwood Holdings,
Inc. on October 1, 2014.
|
(d)
|
Excludes volume
impact from planned maintenance at our PO/MTBE facility in
1H15.
|
(e)
|
Excludes volume
impact from closure of our European surfactants plant in
2Q14.
|
(f)
|
Excludes volume
impact from nitrogen tank incident at our Uerdingen, Germany
facility in 3Q15.
|
Table 5 –
Reconciliation of U.S. GAAP to Non-GAAP Measures
|
|
|
|
|
|
|
|
Income
Tax
|
|
Net Income
(Loss)
|
|
Diluted
Income
|
|
|
EBITDA
|
|
Benefit
(Expense)
|
|
Attrib. to
HUN Corp.
|
|
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, unaudited
|
|
2015
|
|
2014
|
|
2015
|
|
2014
|
|
2015
|
|
2014
|
|
2015
|
|
2014
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP(1)
|
|
$ 111
|
|
$ 141
|
|
$ 39
|
|
$ (12)
|
|
$ 4
|
|
$ (38)
|
|
$ 0.02
|
|
$ (0.16)
|
Adjustments:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Acquisition and
integration expenses, purchase accounting adjustments
|
|
22
|
|
40
|
|
(6)
|
|
(4)
|
|
16
|
|
36
|
|
0.07
|
|
0.15
|
Loss from
discontinued operations, net of tax(3)
|
|
3
|
|
1
|
|
N/A
|
|
N/A
|
|
-
|
|
1
|
|
-
|
|
-
|
Loss (gain) on
disposition of businesses/assets
|
|
1
|
|
(1)
|
|
-
|
|
-
|
|
1
|
|
(1)
|
|
-
|
|
-
|
Loss on early
extinguishment of debt
|
|
-
|
|
28
|
|
-
|
|
(10)
|
|
-
|
|
18
|
|
-
|
|
0.07
|
Certain legal
settlements and related expenses
|
|
1
|
|
-
|
|
-
|
|
-
|
|
1
|
|
-
|
|
-
|
|
-
|
Plant incident
remediation costs
|
|
1
|
|
-
|
|
-
|
|
-
|
|
1
|
|
-
|
|
-
|
|
-
|
Amortization of
pension and postretirement actuarial losses
|
|
18
|
|
14
|
|
(3)
|
|
-
|
|
15
|
|
14
|
|
0.06
|
|
0.06
|
Restructuring,
impairment, plant closing and transition costs
|
|
83
|
|
69
|
|
3
|
|
(18)
|
|
86
|
|
51
|
|
0.36
|
|
0.21
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted(1)
|
|
$ 240
|
|
$ 292
|
|
$ 33
|
|
$ (44)
|
|
$ 124
|
|
$ 81
|
|
$ 0.51
|
|
$ 0.33
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted income tax
(benefit) expense
|
|
|
|
|
|
|
|
|
|
(33)
|
|
44
|
|
|
|
|
Net income
attributable to noncontrolling interests, net of tax
|
|
|
|
|
|
|
|
|
|
5
|
|
3
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted pre-tax
income(1)
|
|
|
|
|
|
|
|
|
|
$ 96
|
|
$ 128
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted effective
tax rate
|
|
|
|
|
|
|
|
|
|
-34%
|
|
34%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income
Tax
|
|
Net
Income
|
|
Diluted
Income
|
|
|
EBITDA
|
|
(Expense)
Benefit
|
|
Attrib. to
HUN Corp.
|
|
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, unaudited
|
|
2015
|
|
2015
|
|
2015
|
|
2015
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP(1)
|
|
$ 255
|
|
|
|
$ (49)
|
|
|
|
$ 55
|
|
|
|
$ 0.22
|
|
|
Adjustments:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Acquisition and
integration expenses, purchase accounting adjustments
|
|
10
|
|
|
|
(2)
|
|
|
|
8
|
|
|
|
0.03
|
|
|
Loss from
discontinued operations, net of tax(3)
|
|
1
|
|
|
|
N/A
|
|
|
|
-
|
|
|
|
-
|
|
|
Loss on early
extinguishment of debt
|
|
8
|
|
|
|
(3)
|
|
|
|
5
|
|
|
|
0.02
|
|
|
Certain legal
settlements and related expenses
|
|
1
|
|
|
|
-
|
|
|
|
1
|
|
|
|
-
|
|
|
Plant incident
remediation costs
|
|
3
|
|
|
|
(1)
|
|
|
|
2
|
|
|
|
0.01
|
|
|
Amortization of
pension and postretirement actuarial losses
|
|
19
|
|
|
|
(4)
|
|
|
|
15
|
|
|
|
0.06
|
|
|
Restructuring,
impairment, plant closing and transition costs
|
|
14
|
|
|
|
15
|
|
|
|
29
|
|
|
|
0.12
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted(1)
|
|
$ 311
|
|
|
|
$ (44)
|
|
|
|
$ 115
|
|
|
|
$ 0.47
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted income tax
expense
|
|
|
|
|
|
|
|
|
|
44
|
|
|
|
|
|
|
Net income
attributable to noncontrolling interests, net of tax
|
|
|
|
|
|
|
|
|
|
8
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted pre-tax
income(1)
|
|
|
|
|
|
|
|
|
|
$ 167
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted effective
tax rate
|
|
|
|
|
|
|
|
|
|
26%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income
Tax
|
|
Net
Income
|
|
Diluted
Income
|
|
|
EBITDA
|
|
Expense
(Benefit)
|
|
Attrib. to
HUN Corp.
|
|
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, unaudited
|
|
2015
|
|
2014
|
|
2015
|
|
2014
|
|
2015
|
|
2014
|
|
2015
|
|
2014
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP(1)
|
|
$ 741
|
|
$ 1,022
|
|
$ (46)
|
|
$ (51)
|
|
$ 93
|
|
$ 323
|
|
$ 0.38
|
|
$ 1.31
|
Adjustments:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Acquisition and
integration expenses, purchase accounting adjustments
|
|
53
|
|
67
|
|
(13)
|
|
(10)
|
|
40
|
|
57
|
|
0.16
|
|
0.23
|
Impact of certain
foreign tax credit elections
|
|
N/A
|
|
N/A
|
|
-
|
|
(94)
|
|
-
|
|
(94)
|
|
-
|
|
(0.38)
|
Loss from
discontinued operations, net of tax(3)
|
|
6
|
|
10
|
|
N/A
|
|
N/A
|
|
4
|
|
8
|
|
0.02
|
|
0.03
|
Loss (gain) on
disposition of businesses/assets
|
|
2
|
|
(3)
|
|
-
|
|
1
|
|
2
|
|
(2)
|
|
0.01
|
|
(0.01)
|
Loss on early
extinguishment of debt
|
|
31
|
|
28
|
|
(11)
|
|
(10)
|
|
20
|
|
18
|
|
0.08
|
|
0.07
|
Certain legal
settlements and related expenses
|
|
4
|
|
3
|
|
(1)
|
|
-
|
|
3
|
|
3
|
|
0.01
|
|
0.01
|
Plant incident
remediation costs
|
|
4
|
|
-
|
|
(1)
|
|
-
|
|
3
|
|
-
|
|
0.01
|
|
-
|
Amortization of
pension and postretirement actuarial losses
|
|
74
|
|
51
|
|
(17)
|
|
(10)
|
|
57
|
|
41
|
|
0.23
|
|
0.17
|
Restructuring,
impairment, plant closing and transition costs
|
|
306
|
|
162
|
|
(36)
|
|
(38)
|
|
270
|
|
124
|
|
1.10
|
|
0.50
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted(1)
|
|
$ 1,221
|
|
$ 1,340
|
|
$ (125)
|
|
$ (212)
|
|
$ 492
|
|
$ 478
|
|
$ 2.00
|
|
$ 1.94
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted income tax
expense
|
|
|
|
|
|
|
|
|
|
125
|
|
212
|
|
|
|
|
Net income
attributable to noncontrolling interests, net of tax
|
|
|
|
|
|
|
|
|
|
33
|
|
22
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted pre-tax
income(1)
|
|
|
|
|
|
|
|
|
|
$ 650
|
|
$ 712
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted effective
tax rate
|
|
|
|
|
|
|
|
|
|
19%
|
|
30%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
See end of press
release for footnote explanations
|
Table 6 – Pro
Forma (2) Reconciliation of U.S. GAAP to Non-GAAP
Measures
|
|
|
|
Pro Forma
EBITDA
|
|
|
Three months
ended
|
|
|
December
31,
|
In millions, except
per share amounts, unaudited, pro forma
|
|
2015
|
|
2014
|
|
|
|
|
|
GAAP(1)
|
|
$ 111
|
|
$ 191
|
Adjustments:
|
|
|
|
|
Acquisition and
integration expenses, purchase accounting adjustments
|
|
22
|
|
(2)
|
Loss from
discontinued operations, net of tax(3)
|
|
3
|
|
1
|
Loss (gain) on
disposition of businesses/assets
|
|
1
|
|
(1)
|
Loss on early
extinguishment of debt
|
|
-
|
|
28
|
Certain legal
settlements and related expenses
|
|
1
|
|
-
|
Plant incident
remediation costs
|
|
1
|
|
-
|
Amortization of
pension and postretirement actuarial losses
|
|
18
|
|
14
|
Restructuring,
impairment, plant closing and transition costs
|
|
83
|
|
69
|
|
|
|
|
|
Pro forma
adjusted(2)
|
|
$ 240
|
|
$ 300
|
|
|
|
|
|
|
|
|
|
|
|
|
Pro Forma
EBITDA
|
|
|
Three months
ended
|
|
|
September
30,
|
In millions, except
per share amounts, unaudited pro forma
|
|
2015
|
|
|
|
|
|
GAAP(1)
|
|
$ 255
|
|
|
Adjustments:
|
|
|
|
|
Acquisition and
integration expenses, purchase accounting adjustments
|
|
10
|
|
|
Loss from
discontinued operations, net of tax(3)
|
|
1
|
|
|
Loss on early
extinguishment of debt
|
|
8
|
|
|
Certain legal
settlements and related expenses
|
|
1
|
|
|
Plant incident
remediation costs
|
|
3
|
|
|
Amortization of
pension and postretirement actuarial losses
|
|
19
|
|
|
Restructuring,
impairment, plant closing and transition costs
|
|
14
|
|
|
|
|
|
|
|
Pro forma
adjusted(2)
|
|
$ 311
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Pro Forma
EBITDA
|
|
|
Twelve months
ended
|
|
|
December
31,
|
In millions, except
per share amounts, unaudited pro forma
|
|
2015
|
|
2014
|
|
|
|
|
|
GAAP(1)
|
|
$ 741
|
|
$ 1,214
|
Adjustments:
|
|
|
|
|
Allocation of general
corporate overhead
|
|
-
|
|
20
|
Acquisition and
integration expenses, purchase accounting adjustments
|
|
53
|
|
7
|
Loss from
discontinued operations, net of tax(3)
|
|
6
|
|
10
|
Loss (gain) on
disposition of businesses/assets
|
|
2
|
|
(3)
|
Loss on early
extinguishment of debt
|
|
31
|
|
28
|
Certain legal
settlements and related expenses
|
|
4
|
|
3
|
Plant incident
remediation costs
|
|
4
|
|
-
|
Amortization of
pension and postretirement actuarial losses
|
|
74
|
|
54
|
Restructuring,
impairment, plant closing and transition costs
|
|
306
|
|
162
|
|
|
|
|
|
Pro forma
adjusted(2)
|
|
$ 1,221
|
|
$ 1,495
|
|
|
|
|
|
See end of press
release for footnote explanations
|
Table 7 –
Reconciliation of Net Income to EBITDA
|
|
|
|
Three months
ended
|
|
Twelve
months ended
|
|
|
December
31,
|
|
September
30,
|
|
December
31,
|
In millions,
unaudited
|
|
2015
|
|
2014
|
|
2015
|
|
2015
|
|
2014
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss)
attributable to Huntsman Corporation
|
|
$ 4
|
|
$ (38)
|
|
$
55
|
|
$ 93
|
|
$ 323
|
Interest
expense
|
|
47
|
|
57
|
|
49
|
|
205
|
|
205
|
Income tax (benefit)
expense from continuing operations
|
|
(39)
|
|
12
|
|
49
|
|
46
|
|
51
|
Income tax benefit
from discontinued operations(3)
|
|
(3)
|
|
-
|
|
(1)
|
|
(2)
|
|
(2)
|
Depreciation and
amortization
|
|
102
|
|
110
|
|
103
|
|
399
|
|
445
|
|
|
|
|
|
|
|
|
|
|
|
EBITDA(1)
|
|
111
|
|
141
|
|
255
|
|
741
|
|
1,022
|
|
|
|
|
|
|
|
|
|
|
|
Pro forma
adjustments to:
|
|
|
|
|
|
|
|
|
|
|
Net income (loss)
attributable to Huntsman Corporation
|
|
-
|
|
26
|
|
-
|
|
-
|
|
75
|
Interest
expense
|
|
-
|
|
1
|
|
-
|
|
-
|
|
34
|
Income tax (benefit)
expense from continuing operations
|
|
-
|
|
13
|
|
-
|
|
-
|
|
43
|
Depreciation and
amortization
|
|
-
|
|
10
|
|
-
|
|
-
|
|
40
|
|
|
|
|
|
|
|
|
|
|
|
Pro forma
EBITDA(2)
|
|
$111
|
|
$191
|
|
$
255
|
|
$741
|
|
$1,214
|
|
|
|
|
|
|
|
|
|
|
|
See end of press
release for footnote explanations
|
Table 8 – Selected
Balance Sheet Items
|
|
|
|
December
31,
|
|
September
30,
|
|
December
31,
|
In
millions
|
|
2015
|
|
2015
|
|
2014
|
|
|
|
|
(unaudited)
|
|
|
|
|
|
|
|
|
|
Cash
|
|
$
269
|
|
$
437
|
|
$
870
|
Accounts and notes
receivable, net
|
|
1,449
|
|
1,632
|
|
1,707
|
Inventories
|
|
1,692
|
|
1,850
|
|
2,025
|
Other current
assets
|
|
424
|
|
332
|
|
437
|
Property, plant and
equipment, net
|
|
4,446
|
|
4,380
|
|
4,423
|
Other
assets
|
|
1,540
|
|
1,535
|
|
1,461
|
|
|
|
|
|
|
|
Total
assets
|
|
$
9,820
|
|
$ 10,166
|
|
$
10,923
|
|
|
|
|
|
|
|
Accounts
payable
|
|
$
1,061
|
|
$ 1,068
|
|
$
1,275
|
Other current
liabilities
|
|
686
|
|
839
|
|
790
|
Current portion of
debt
|
|
170
|
|
158
|
|
267
|
Long-term
debt
|
|
4,625
|
|
4,639
|
|
4,854
|
Other
liabilities
|
|
1,649
|
|
1,671
|
|
1,786
|
Total
equity
|
|
1,629
|
|
1,791
|
|
1,951
|
|
|
|
|
|
|
|
Total liabilities
and equity
|
|
$
9,820
|
|
$ 10,166
|
|
$
10,923
|
Table 9 –
Outstanding Debt
|
|
|
|
December
31,
|
|
September
30,
|
|
December
31,
|
In
millions
|
|
2015
|
|
2015
|
|
2014
|
|
|
|
|
(unaudited)
|
|
|
|
|
|
|
|
|
|
Debt:
|
|
|
|
|
|
|
Senior credit
facilities
|
|
$
2,454
|
|
$
2,453
|
|
$
2,468
|
Accounts receivable
programs
|
|
215
|
|
217
|
|
229
|
Senior
notes
|
|
1,850
|
|
1,867
|
|
1,582
|
Senior subordinated
notes
|
|
-
|
|
-
|
|
526
|
Variable interest
entities
|
|
151
|
|
158
|
|
207
|
Other debt
|
|
125
|
|
102
|
|
109
|
|
|
|
|
|
|
|
Total debt -
excluding affiliates
|
|
4,795
|
|
4,797
|
|
5,121
|
|
|
|
|
|
|
|
Total cash
|
|
269
|
|
437
|
|
870
|
|
|
|
|
|
|
|
Net debt-
excluding affiliates
|
|
$
4,526
|
|
$
4,360
|
|
$
4,251
|
Table 10 –
Summarized Statement of Cash Flows
|
|
|
|
Three months
ended
|
|
|
Year
ended
|
|
|
December
31,
|
|
|
December
31,
|
In millions,
unaudited
|
|
2015
|
|
|
2015
|
|
2014
|
|
|
|
|
|
|
|
|
Total cash at
beginning of period(a)
|
|
$
437
|
|
|
$ 870
|
|
$ 529
|
|
|
|
|
|
|
|
|
Net cash provided by
operating activities
|
|
188
|
|
|
575
|
|
760
|
Net cash used in
investing activities
|
|
(217)
|
|
|
(600)
|
|
(1,606)
|
Net cash (used in)
provided by financing activities
|
|
(144)
|
|
|
(562)
|
|
1,197
|
Effect of exchange
rate changes on cash
|
|
(3)
|
|
|
(16)
|
|
(11)
|
Change in restricted
cash
|
|
8
|
|
|
2
|
|
1
|
|
|
|
|
|
|
|
|
Total cash at end
of period(a)
|
|
$
269
|
|
|
$ 269
|
|
$ 870
|
|
|
|
|
|
|
|
|
Supplemental cash
flow information:
|
|
|
|
|
|
|
|
Cash paid for
interest
|
|
$
(67)
|
|
|
$(225)
|
|
$ (208)
|
Cash paid for income
taxes
|
|
(45)
|
|
|
(126)
|
|
(165)
|
Cash paid for capital
expenditures
|
|
(209)
|
|
|
(663)
|
|
(601)
|
Depreciation and
amortization
|
|
102
|
|
|
399
|
|
445
|
|
|
|
|
|
|
|
|
Changes in primary
working capital:
|
|
|
|
|
|
|
|
Accounts and notes
receivable
|
|
$
174
|
|
|
$ 121
|
|
$ 2
|
Inventories
|
|
133
|
|
|
179
|
|
(20)
|
Accounts
payable
|
|
(46)
|
|
|
(157)
|
|
86
|
|
|
|
|
|
|
|
|
Total cash provided
by primary working capital
|
|
$
261
|
|
|
$ 143
|
|
$ 68
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(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 7 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) plant incident remediation costs; (i)
amortization of pension and postretirement actuarial losses
(gains); and (j) restructuring, impairment, plant closing and
transition costs (credits). The reconciliation of adjusted
EBITDA to EBITDA is set forth in Table 5 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) plant incident
remediation costs; (k) amortization of pension and postretirement
actuarial losses (gains); and (l) 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 5 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 2015 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. 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-reports-fourth-quarter-and-full-year-2015-results-2015-adjusted-eps-improves-to-200-from-194-in-2014-300218717.html
SOURCE Huntsman Corporation