THE WOODLANDS, Texas,
Feb. 23, 2018 /PRNewswire/ --
Fourth Quarter 2017 Highlights
- Net income was $287 million
compared to $137 million in the prior
year period and $179 million in the
prior quarter.
- Adjusted EBITDA was $360 million
compared to $210 million in the prior
year period and $340 million in the
prior quarter.
- Diluted income per share was $1.00 compared to $0.53 in the prior year period and $0.60 in the prior quarter.
- Adjusted diluted income per share was $0.76 compared to $0.21 in the prior year period and $0.67 in the prior quarter.
- Net cash provided by operating activities was $304 million. Free cash flow generation was
$190 million.
- Successful secondary offering of Venator (NYSE – VNTR) shares
was completed in December. The net proceeds were used to pay down
the remaining $511 million on
Huntsman's Term Loan B due 2023, reducing net leverage to 1.4x.
Huntsman's remaining ownership interest in Venator is currently
approximately 53%.
Full Year 2017 Highlights
- Net income was $741 million
compared to $357 million in the prior
year.
- Adjusted EBITDA was $1,259
million compared to $997
million in the prior year.
- Net cash provided by operating activities was $842 million compared to $974 million in the prior year. Free cash
flow generation was $594 million
compared to free cash flow of $656
million in the prior year.
- Annual free cash flow target for the upcoming years is
increased by $50 million to between
$450 million and $650 million.
- In 2017, debt was reduced by approximately $2.1 billion and Huntsman exited the year with
the strongest balance sheet in its history with a net debt to
EBITDA ratio of 1.4x. Since the beginning of 2016 to the end
of 2017, net debt was reduced by 60%, from $4.5 billion to $1.8
billion.
- The board approved a 30% increase of the quarterly dividend
from $0.125 to $0.1625 per share, effective immediately, and
share repurchases up to $450
million.
|
|
Three months
ended
|
Twelve months
ended
|
|
|
December
31,
|
|
September
30,
|
|
December
31,
|
In millions, except
per share amounts
|
|
2017
|
|
2016
|
|
2017
|
|
2017
|
|
2016
|
|
|
|
|
|
|
|
|
|
|
|
Revenues
|
|
$2,203
|
|
$1,904
|
|
$
2,169
|
|
$8,358
|
|
$
7,518
|
|
|
|
|
|
|
|
|
|
|
|
Net income
|
|
$
287
|
|
$
137
|
|
$
179
|
|
$
741
|
|
$
357
|
Adjusted net
income(1)
|
|
$
186
|
|
$
50
|
|
$
164
|
|
$
604
|
|
$
352
|
|
|
|
|
|
|
|
|
|
|
|
Diluted income per
share
|
|
$
1.00
|
|
$
0.53
|
|
$
0.60
|
|
$
2.61
|
|
$
1.36
|
Adjusted diluted
income per share(1)
|
|
$
0.76
|
|
$
0.21
|
|
$
0.67
|
|
$
2.48
|
|
$
1.47
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted
EBITDA(1)
|
|
$
360
|
|
$
210
|
|
$
340
|
|
$1,259
|
|
$
997
|
Pro forma adjusted
EBITDA(2)
|
|
$
360
|
|
$
204
|
|
$
340
|
|
$1,259
|
|
$
969
|
|
|
|
|
|
|
|
|
|
|
|
Net cash provided by
operating activities
|
|
$
304
|
|
$
238
|
|
$
261
|
|
$
842
|
|
$
974
|
Free cash
flow(3)
|
|
$
190
|
|
$
133
|
|
$
227
|
|
$
594
|
|
$
656
|
|
|
|
|
|
|
|
|
|
|
|
See end of press
release for footnote explanations
|
|
|
|
|
|
|
|
|
|
|
Huntsman Corporation (NYSE: HUN) today reported fourth quarter
2017 results with revenues of $2,203
million, net income of $287
million and adjusted EBITDA of $360
million.
Peter R. Huntsman, Chairman,
President and CEO, commented:
"2017 was a transformational year marked with significant
milestones for our Company. We successfully separated our
Pigments and Additives business, now called Venator, by IPO and
completed a first follow-on offering in December. Combined
with our cash flow and the $1.7
billion in net proceeds from Venator, we were able to pay
down approximately $2.1 billion in
debt during the year. This debt reduction enabled Huntsman to enter
2018 with the strongest balance sheet in its history, with a net
debt to EBITDA ratio of 1.4x, which is well within investment grade
metrics.
"With a stronger balance sheet, our focus will be to continue
to invest in our operational reliability and organic growth.
We expect to generate between $450
million and $650 million of
free cash flow in the upcoming years. We will also pursue
acquisitions that will create value, greater growth in our
downstream business and stronger earnings. This morning we
are enhancing our shareholder returns by increasing the dividend
30% and announcing a share repurchase program of up to $450 million."
Segment Analysis for 4Q17 Compared to 4Q16
Polyurethanes
The increase in revenues in our Polyurethanes segment for the
three months ended December 31, 2017
compared to the same period in 2016 was primarily due to higher MDI
average selling prices and MDI sales volumes. MDI average
selling prices increased due to strong market conditions in all
regions. The increase in MDI sales volumes was more than
offset by a decrease in MTBE sales volumes resulting from the
timing of MTBE shipments. The increase in adjusted EBITDA was
primarily due higher MDI margins and sales volumes.
Performance Products
Revenues in our Performance Products segment for the three
months ended December 31, 2017
compared to the same period in 2016 were essentially flat as higher
average selling prices and improved mix were offset by lower sales
volumes. Average selling prices increased primarily in
response to higher raw material costs and favorable product
mix. The decrease in sales volumes was primarily due to the
sale of the European surfactants business to Innospec Inc. in 2016,
as well as planned and unplanned outages at our Port Neches site. The decrease in
adjusted EBITDA was primarily due to the sale of the European
surfactants business and higher costs, which includes the impact of
the outages in the quarter, partially mitigated by continued margin
improvement in our maleic anhydride business.
Advanced Materials
The increase in revenues in our Advanced Materials segment for
the three months ended December 31,
2017, compared to the same period in 2016, was primarily due
to higher average sales prices. Average selling prices
increased primarily due to sales mix, as sales volumes in our
higher value specialty business increased across all of our core
markets. This growth in revenues was partially offset by lower
sales volumes in our lower value wind and other commodity markets.
Adjusted EBITDA increased due to higher specialty sales volumes and
lower fixed costs, partially offset by higher raw material
costs.
Textile Effects
The increase in revenues in our Textile Effects segment for the
three months ended December 31, 2017
compared to the same period in 2016 was primarily due to volume
growth, partially offset by lower average selling prices and
unfavorable product mix. Sales volumes increased in the
Americas, Europe and China.
Average selling prices decreased primarily due to lower
raw material costs. The increase in adjusted EBITDA was
primarily due to higher sales volumes.
Corporate, LIFO and Other
Adjusted EBITDA from Corporate, LIFO and Other decreased by
$1 million to a loss of $53 million for the three months ended
December 31, 2017 compared to a loss
of $52 million for the same period in
2016.
Held for Sale and Discontinued Operations
Our former Pigments and Additives segment, now known as Venator,
is now classified as held for sale on our balance sheet and treated
as discontinued operations on our income statement. Please
refer to the Form 8-K we filed on October
31, 2017 with certain restated historical financial data.
Huntsman currently owns 53% of Venator's outstanding
shares.
Liquidity, Capital Resources and Outstanding Debt
During the fourth quarter of 2017, we generated adjusted free
cash flow of $190 million compared to
$133 for the same period 2016. As of
December 31, 2017, we had
$1,247 million of combined cash and
unused borrowing capacity compared to $1,208
million as of December 31,
2016. For the full year 2017, including the approximate
$1.7 billion debt repayment made with
the proceeds of the Venator separation, we repaid approximately
$2.1 billion of debt. In
connection with this debt reduction, Huntsman has repaid in full
its senior secured term loan facility under its Senior Credit
Facilities.
During the full year 2017, we spent $282
million on capital expenditures compared to $318 million in 2016. We expect to spend
approximately $325 million on capital
expenditures in 2018.
Income Taxes
During the three months ended December
31, 2017, we recorded an income tax benefit of $14 million compared to income tax expense of
$44 million during the same period in
2016. This 2017 fourth quarter income tax benefit is largely
the result of the new U.S. tax law, including a revaluation of our
U.S. deferred tax liabilities at a lower tax rate partially offset
by transition taxes on the deemed repatriation of deferred foreign
income. In the fourth quarter 2017, our adjusted effective
tax rate was 23%. Our 2018 estimated adjusted effective tax
rate will be approximately 21% - 23%, which includes the benefit of
the recent U.S. income tax reform.
The Board Approved a 30% Dividend Increase and Share
Repurchases of up to $450
Million
Effective February 7, 2018, our
Board of Directors approved an increase in our quarterly per share
dividend from $0.125 to $0.1625. In addition, it authorized our
Company to repurchase up to $400
million in shares of our common stock in addition to the
$50 million remaining under our
September 2015 share repurchase
authorization. Repurchases may be made through the open market or
in privately negotiated transactions, and repurchases may be
commenced or suspended from time to time without prior notice.
Shares of common stock acquired through the repurchase program are
to be held in treasury at cost.
Earnings Conference Call Information
We will hold a conference call to discuss our fourth quarter
2017 financial results on Friday, February
23, 2018 at 10:00 a.m. ET.
Call-in numbers for
the conference call:
|
U.S.
participants
|
|
(888) 680 -
0890
|
International
participants
|
|
(617) 213 -
4857
|
Passcode
|
|
299 322
06#
|
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=PX4DVDQR7
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 23, 2018 and ending
March 2, 2018.
Call-in numbers for
the replay:
|
U.S.
participants
|
|
(888) 286 -
8010
|
International
participants
|
|
(617) 801 -
6888
|
Replay
code
|
|
29385180
|
Upcoming Conferences
During the first quarter a member of management is expected to
present at the Alembic Industrial and Chemical Conference on
March 1-2, 2018. A webcast of the
presentation, if applicable, along with accompanying materials will
be available at ir.huntsman.com.
2018 Investor Day
Huntsman will host a meeting for investors and analysts on
Wednesday, May 23, 2018 from
8:00 a.m. to 12:00 p.m., local time
in New York City. The agenda for the meeting will include a
review of the company's business strategy and an in-depth
discussion of each of the company's businesses. Presenters
will include Peter Huntsman,
Chairman and CEO, and other business leaders. A live webcast and
presentation materials will be available the day of the event at
ir.huntsman.com. A replay of the webcast will be available
following the presentations. Registration information will be
forthcoming.
Table 1 -- Results
of Operations
|
|
|
|
|
|
|
|
|
|
|
|
Three months
ended
|
|
Twelve months
ended
|
|
|
December
31,
|
|
December
31,
|
In millions, except
per share amounts
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
|
|
|
|
|
|
|
|
|
Revenues
|
|
$2,203
|
|
$1,904
|
|
$8,358
|
|
$7,518
|
Cost of goods
sold
|
|
1,694
|
|
1,548
|
|
6,546
|
|
5,992
|
Gross
profit
|
|
509
|
|
356
|
|
1,812
|
|
1,526
|
Operating
expenses
|
|
236
|
|
140
|
|
913
|
|
804
|
Restructuring,
impairment and plant closing costs (credits)
|
|
7
|
|
(9)
|
|
20
|
|
47
|
Expenses associated
with the merger
|
|
10
|
|
-
|
|
28
|
|
-
|
Operating
income
|
|
256
|
|
225
|
|
851
|
|
675
|
Interest
expense
|
|
(31)
|
|
(50)
|
|
(165)
|
|
(203)
|
Equity in income of
investment in unconsolidated affiliates
|
|
9
|
|
1
|
|
13
|
|
5
|
Loss on early
extinguishment of debt
|
|
(18)
|
|
-
|
|
(54)
|
|
(3)
|
Other
income
|
|
-
|
|
1
|
|
2
|
|
-
|
Income before
income taxes
|
|
216
|
|
177
|
|
647
|
|
474
|
Income tax benefit
(expense)
|
|
14
|
|
(44)
|
|
(64)
|
|
(109)
|
Income from
continuing operations
|
|
230
|
|
133
|
|
583
|
|
365
|
Income (loss) from
discontinued operations, net of tax(4)
|
|
57
|
|
4
|
|
158
|
|
(8)
|
Net
income
|
|
287
|
|
137
|
|
741
|
|
357
|
Net income
attributable to noncontrolling interests, net of tax
|
|
(41)
|
|
(9)
|
|
(105)
|
|
(31)
|
Net income
attributable to Huntsman Corporation
|
|
$
246
|
|
$
128
|
|
$
636
|
|
$
326
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted
EBITDA(1)
|
|
$
360
|
|
$
210
|
|
$1,259
|
|
$
997
|
Adjusted net
income(1)
|
|
$
186
|
|
$
50
|
|
$
604
|
|
$
352
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic income per
share
|
|
$
1.03
|
|
$
0.54
|
|
$
2.67
|
|
$
1.38
|
Diluted income per
share
|
|
$
1.00
|
|
$
0.53
|
|
$
2.61
|
|
$
1.36
|
Adjusted diluted
income per share(1)
|
|
$
0.76
|
|
$
0.21
|
|
$
2.48
|
|
$
1.47
|
|
|
|
|
|
|
|
|
|
Common share
information:
|
|
|
|
|
|
|
|
|
Basic shares
outstanding
|
|
240
|
|
236
|
|
238
|
|
236
|
Diluted
shares
|
|
245
|
|
241
|
|
244
|
|
240
|
Diluted shares for
adjusted diluted income per share
|
|
245
|
|
241
|
|
244
|
|
240
|
|
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
|
|
2017
|
|
2016
|
|
(Worse)
|
|
2017
|
|
2016
|
|
(Worse)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Segment
Revenues:
|
|
|
|
|
|
|
|
|
|
|
|
|
Polyurethanes
|
|
$1,227
|
|
$
964
|
|
27%
|
|
$4,399
|
|
$3,667
|
|
20%
|
Performance
Products
|
|
514
|
|
515
|
|
0%
|
|
2,109
|
|
2,126
|
|
(1)%
|
Performance
Products, pro forma(2)
|
|
514
|
|
452
|
|
14%
|
|
2,109
|
|
1,885
|
|
12%
|
Advanced
Materials
|
|
258
|
|
246
|
|
5%
|
|
1,040
|
|
1,020
|
|
2%
|
Textile
Effects
|
|
190
|
|
184
|
|
3%
|
|
776
|
|
751
|
|
3%
|
Corporate and
eliminations
|
|
14
|
|
(5)
|
|
n/m
|
|
34
|
|
(46)
|
|
n/m
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
|
|
$2,203
|
|
$1,904
|
|
16%
|
|
$8,358
|
|
$7,518
|
|
11%
|
Total, pro
forma(2)
|
|
$2,203
|
|
$1,841
|
|
20%
|
|
$8,358
|
|
$7,277
|
|
15%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Segment Adjusted
EBITDA(1):
|
|
|
|
|
|
|
|
|
|
|
|
|
Polyurethanes
|
|
$
294
|
|
$
130
|
|
126%
|
|
$
850
|
|
$
569
|
|
49%
|
Performance
Products
|
|
47
|
|
68
|
|
(31)%
|
|
296
|
|
316
|
|
(6)%
|
Performance
Products, pro forma(2)
|
|
47
|
|
62
|
|
(24)%
|
|
296
|
|
288
|
|
3%
|
Advanced
Materials
|
|
53
|
|
50
|
|
6%
|
|
219
|
|
223
|
|
(2)%
|
Textile
Effects
|
|
19
|
|
14
|
|
36%
|
|
83
|
|
73
|
|
14%
|
Corporate, LIFO and
other
|
|
(53)
|
|
(52)
|
|
(2)%
|
|
(189)
|
|
(184)
|
|
(3)%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
|
|
$
360
|
|
$
210
|
|
71%
|
|
$1,259
|
|
$
997
|
|
26%
|
Total, pro
forma(2)
|
|
$
360
|
|
$
204
|
|
76%
|
|
$1,259
|
|
$
969
|
|
30%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
n/m = not
meaningful
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
See end of press
release for footnote explanations
|
|
|
|
|
|
|
|
|
|
|
|
Table 3 -- Factors
Impacting Sales Revenue
|
|
|
|
Three months
ended
|
|
|
|
December 31, 2017
vs. 2016
|
|
|
|
Average Selling
Price(a)
|
|
|
|
|
|
|
|
|
|
Local
|
|
Exchange
|
|
Sales
Mix
|
|
Sales
|
|
|
|
|
|
Currency
|
|
Rate
|
|
&
Other
|
|
Volume(b)
|
|
Total
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Polyurethanes
|
|
21%
|
|
4%
|
|
4%
|
|
(2)%
|
|
27%
|
|
Polyurethanes,
adj
|
|
20%
|
|
4%
|
|
6%
|
|
(7)%
|
|
23%
|
(e)
|
Performance
Products
|
|
8%
|
|
2%
|
|
6%
|
|
(16)%
|
|
0%
|
|
Performance
Products, adj
|
|
3%
|
|
2%
|
|
1%
|
|
14%
|
|
20%
|
(c)(e)
|
Advanced
Materials
|
|
2%
|
|
3%
|
|
1%
|
|
(1)%
|
|
5%
|
|
Textile
Effects
|
|
(2)%
|
|
2%
|
|
(1)%
|
|
4%
|
|
3%
|
|
Total
Company
|
|
13%
|
|
3%
|
|
7%
|
|
(7)%
|
|
16%
|
|
Total Company,
adj
|
|
11%
|
|
3%
|
|
5%
|
|
0%
|
|
19%
|
(c)(e)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Twelve months
ended
|
|
|
|
December 31, 2017
vs. 2016
|
|
|
|
Average Selling
Price(a)
|
|
|
|
|
|
|
|
|
|
Local
|
|
Exchange
|
|
Sales
Mix
|
|
Sales
|
|
|
|
|
|
Currency
|
|
Rate
|
|
&
Other
|
|
Volume(b)
|
|
Total
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Polyurethanes
|
|
18%
|
|
1%
|
|
3%
|
|
(2)%
|
|
20%
|
|
Polyurethanes,
adj
|
|
19%
|
|
1%
|
|
2%
|
|
(1)%
|
|
21%
|
(d)(e)
|
Performance
Products
|
|
7%
|
|
0%
|
|
3%
|
|
(11)%
|
|
(1)%
|
|
Performance
Products, adj
|
|
3%
|
|
0%
|
|
1%
|
|
13%
|
|
17%
|
(c)(d)(e)
|
Advanced
Materials
|
|
1%
|
|
1%
|
|
0%
|
|
0%
|
|
2%
|
|
Textile
Effects
|
|
(2)%
|
|
0%
|
|
(2)%
|
|
7%
|
|
3%
|
|
Total
Company
|
|
12%
|
|
0%
|
|
4%
|
|
(5)%
|
|
11%
|
|
Total Company,
adj
|
|
11%
|
|
0%
|
|
2%
|
|
4%
|
|
17%
|
(c)(d)(e)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(a)
|
Excludes sales from
tolling arrangements, by-products and raw materials.
|
(b)
|
Excludes sales from
by-products and raw materials.
|
(c)
|
Pro forma adjusted to
exclude the sale of the European differentiated surfactants on
December 30, 2016.
|
(d)
|
Pro forma adjusted to
exclude the impact from Hurricane Harvey in 3Q17
|
(e)
|
Pro forma adjusted to
exclude the impact of cetain planned maintenance outages and
unplanned weather related and other outages in 2016 &
2017
|
Table 4 --
Reconciliation of U.S. GAAP to Non-GAAP Measures
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income
Tax
|
|
|
|
|
|
Diluted
Income
|
|
|
|
EBITDA
|
|
Benefit
(Expense)
|
|
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
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
income
|
|
$
287
|
|
$
137
|
|
|
|
|
|
$
287
|
|
$
137
|
|
$ 1.17
|
|
$
0.57
|
|
Net income
attributable to noncontrolling interests
|
|
(41)
|
|
(9)
|
|
|
|
|
|
(41)
|
|
(9)
|
|
(0.17)
|
|
(0.04)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
attributable to Huntsman Corporation
|
|
246
|
|
128
|
|
|
|
|
|
246
|
|
128
|
|
1.00
|
|
0.53
|
|
Interest
expense from continuing operations
|
|
31
|
|
50
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest expense from
discontinued operations(4)
|
|
11
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income tax (benefit)
expense from continuing operations
|
|
(14)
|
|
44
|
|
$
14
|
|
$
(44)
|
|
|
|
|
|
|
|
|
|
Income tax expense
(benefit) from discontinued operations(4)
|
|
26
|
|
(16)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation and
amortization from continuing operations
|
|
84
|
|
80
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation and
amortization from discontinued operations(4)
|
|
-
|
|
30
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Acquisition and
integration expenses
|
|
2
|
|
1
|
|
(1)
|
|
-
|
|
1
|
|
1
|
|
-
|
|
-
|
|
EBITDA / Income from
discontinued operations, net of tax(4)
|
|
(94)
|
|
(18)
|
|
N/A
|
|
N/A
|
|
(57)
|
|
(4)
|
|
(0.23)
|
|
(0.02)
|
|
Minority interest of
discontinued operations(1)(4)
|
|
31
|
|
3
|
|
N/A
|
|
N/A
|
|
31
|
|
3
|
|
0.13
|
|
0.01
|
|
U.S. tax reform
impact on minority interest
|
|
(6)
|
|
-
|
|
N/A
|
|
N/A
|
|
(6)
|
|
-
|
|
(0.02)
|
|
-
|
|
U.S. tax reform
impact on tax expense
|
|
N/A
|
|
N/A
|
|
(52)
|
|
-
|
|
(52)
|
|
-
|
|
(0.21)
|
|
-
|
|
Gain on disposition
of businesses/assets
|
|
(1)
|
|
(97)
|
|
-
|
|
13
|
|
(1)
|
|
(84)
|
|
-
|
|
(0.35)
|
|
Loss on early
extinguishment of debt
|
|
18
|
|
-
|
|
(7)
|
|
-
|
|
11
|
|
-
|
|
0.04
|
|
-
|
|
Expenses associated
with merger, net of tax
|
|
10
|
|
-
|
|
(9)
|
|
-
|
|
1
|
|
-
|
|
-
|
|
-
|
|
Certain legal
settlements and related (income) expenses
|
|
(12)
|
|
1
|
|
4
|
|
-
|
|
(8)
|
|
1
|
|
(0.03)
|
|
-
|
|
Net plant incident
costs
|
|
3
|
|
-
|
|
(2)
|
|
-
|
|
1
|
|
-
|
|
-
|
|
-
|
|
Amortization of
pension and postretirement actuarial losses
|
|
18
|
|
13
|
|
(5)
|
|
(2)
|
|
13
|
|
11
|
|
0.05
|
|
0.05
|
|
Restructuring,
impairment and plant closing and transition costs
(credits)
|
|
7
|
|
(9)
|
|
(1)
|
|
3
|
|
6
|
|
(6)
|
|
0.02
|
|
(0.02)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted(1)
|
|
$
360
|
|
$
210
|
|
$
(59)
|
|
$
(30)
|
|
$
186
|
|
$
50
|
|
$ 0.76
|
|
$
0.21
|
|
Pro forma
adjustments(2)
|
|
-
|
|
(6)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Pro forma adjusted
EBITDA(1)
|
|
$
360
|
|
$
204
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted income tax
expense(1)
|
|
|
|
|
|
|
|
|
|
$
59
|
|
$
30
|
|
|
|
|
|
Net income
attributable to noncontrolling interests, net of tax
|
|
|
|
|
|
|
|
|
|
41
|
|
9
|
|
|
|
|
|
Minority interest of
discontinued operations(1)(4)
|
|
|
|
|
|
|
|
|
|
(31)
|
|
(3)
|
|
|
|
|
|
U.S. tax reform
impact on minority interest
|
|
|
|
|
|
|
|
|
|
6
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted pre-tax
income(1)
|
|
|
|
|
|
|
|
|
|
$
261
|
|
$
86
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted effective
tax rate
|
|
|
|
|
|
|
|
|
|
23%
|
|
35%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income
Tax
|
|
|
|
|
|
Diluted
Income
|
|
|
|
EBITDA
|
|
Expense
|
|
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
|
|
2017
|
|
2017
|
|
2017
|
|
2017
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
income
|
|
$
179
|
|
|
|
|
|
|
|
$
179
|
|
|
|
$ 0.73
|
|
|
|
Net income
attributable to noncontrolling interests
|
|
(32)
|
|
|
|
|
|
|
|
(32)
|
|
|
|
(0.13)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
attributable to Huntsman Corporation
|
|
147
|
|
|
|
|
|
|
|
147
|
|
|
|
0.60
|
|
|
|
Interest
expense from continuing operations
|
|
39
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest expense from
discontinued operations(4)
|
|
8
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income tax expense
from continuing operations
|
|
35
|
|
|
|
$
(35)
|
|
|
|
|
|
|
|
|
|
|
|
Income tax expense
from discontinued operations(4)
|
|
17
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation and
amortization from continuing operations
|
|
80
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation and
amortization from discontinued operations(4)
|
|
9
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Acquisition and
integration expenses
|
|
10
|
|
|
|
(3)
|
|
|
|
7
|
|
|
|
0.03
|
|
|
|
EBITDA / Income from
discontinued operations, net of tax(4)
|
|
(97)
|
|
|
|
N/A
|
|
|
|
(63)
|
|
|
|
(0.26)
|
|
|
|
Minority interest of
discontinued operations(1)(4)
|
|
12
|
|
|
|
N/A
|
|
|
|
12
|
|
|
|
0.05
|
|
|
|
Loss on early
extinguishment of debt
|
|
35
|
|
|
|
(12)
|
|
|
|
23
|
|
|
|
0.09
|
|
|
|
Expenses associated
with merger
|
|
12
|
|
|
|
(1)
|
|
|
|
11
|
|
|
|
0.05
|
|
|
|
Net plant incident
costs
|
|
13
|
|
|
|
(4)
|
|
|
|
9
|
|
|
|
0.04
|
|
|
|
Amortization of
pension and postretirement actuarial losses
|
|
19
|
|
|
|
(3)
|
|
|
|
16
|
|
|
|
0.07
|
|
|
|
Restructuring,
impairment and plant closing and transition costs
|
|
1
|
|
|
|
1
|
|
|
|
2
|
|
|
|
0.01
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted(1)
|
|
$
340
|
|
|
|
$
(57)
|
|
|
|
$
164
|
|
|
|
$ 0.67
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted income tax
expense(1)
|
|
|
|
|
|
|
|
|
|
$
57
|
|
|
|
|
|
|
|
Net income
attributable to noncontrolling interests, net of tax
|
|
|
|
|
|
|
|
|
|
32
|
|
|
|
|
|
|
|
Minority interest of
discontinued operations(1)(4)
|
|
|
|
|
|
|
|
|
|
(12)
|
|
|
|
|
|
|
|
U.S. tax reform
impact on minority interest
|
|
|
|
|
|
|
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted pre-tax
income(1)
|
|
|
|
|
|
|
|
|
|
$
241
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted effective
tax rate
|
|
|
|
|
|
|
|
|
|
24%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income
Tax
|
|
|
|
|
|
Diluted
Income
|
|
|
|
EBITDA
|
|
Expense
|
|
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
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
income
|
|
$
741
|
|
$
357
|
|
|
|
|
|
$
741
|
|
$
357
|
|
$ 3.04
|
|
$
1.49
|
|
Net income
attributable to noncontrolling interests
|
|
(105)
|
|
(31)
|
|
|
|
|
|
(105)
|
|
(31)
|
|
(0.43)
|
|
(0.13)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
attributable to Huntsman Corporation
|
|
636
|
|
326
|
|
|
|
|
|
636
|
|
326
|
|
2.61
|
|
1.36
|
|
Interest
expense from continuing operations
|
|
165
|
|
203
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest expense
(income) from discontinued operations(4)
|
|
19
|
|
(1)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income tax expense
from continuing operations
|
|
64
|
|
109
|
|
(64)
|
|
(109)
|
|
|
|
|
|
|
|
|
|
Income tax expense
(benefit) from discontinued operations(4)
|
|
67
|
|
(24)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation and
amortization from continuing operations
|
|
319
|
|
318
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation and
amortization from discontinued operations(4)
|
|
68
|
|
114
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Acquisition and
integration expenses
|
|
19
|
|
12
|
|
(5)
|
|
(3)
|
|
14
|
|
9
|
|
0.06
|
|
0.04
|
|
EBITDA / Income from
discontinued operations, net of tax(4)
|
|
(312)
|
|
(81)
|
|
N/A
|
|
N/A
|
|
(158)
|
|
8
|
|
(0.65)
|
|
0.03
|
|
Minority interest of
discontinued operations(1)(4)
|
|
49
|
|
11
|
|
N/A
|
|
N/A
|
|
49
|
|
11
|
|
0.20
|
|
0.05
|
|
U.S. tax reform
impact on minority interest
|
|
(6)
|
|
-
|
|
N/A
|
|
N/A
|
|
(6)
|
|
-
|
|
(0.02)
|
|
-
|
|
U.S. tax reform
impact on tax expense
|
|
N/A
|
|
N/A
|
|
(52)
|
|
-
|
|
(52)
|
|
-
|
|
(0.21)
|
|
-
|
|
Gain on disposition
of businesses/assets
|
|
(9)
|
|
(97)
|
|
-
|
|
13
|
|
(9)
|
|
(84)
|
|
(0.04)
|
|
(0.35)
|
|
Loss on early
extinguishment of debt
|
|
54
|
|
3
|
|
(19)
|
|
(1)
|
|
35
|
|
2
|
|
0.14
|
|
0.01
|
|
Expenses associated
with merger
|
|
28
|
|
-
|
|
(10)
|
|
-
|
|
18
|
|
-
|
|
0.07
|
|
-
|
|
Certain legal
settlements and related (income) expenses
|
|
(11)
|
|
1
|
|
4
|
|
-
|
|
(7)
|
|
1
|
|
(0.03)
|
|
-
|
|
Net plant incident
costs
|
|
16
|
|
-
|
|
(6)
|
|
-
|
|
10
|
|
-
|
|
0.04
|
|
-
|
|
Amortization of
pension and postretirement actuarial losses
|
|
73
|
|
55
|
|
(16)
|
|
(12)
|
|
57
|
|
43
|
|
0.23
|
|
0.18
|
|
Restructuring,
impairment and plant closing and transition costs
|
|
20
|
|
48
|
|
(3)
|
|
(12)
|
|
17
|
|
36
|
|
0.07
|
|
0.15
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted(1)
|
|
$
1,259
|
|
$
997
|
|
$
(171)
|
|
$
(124)
|
|
$
604
|
|
$
352
|
|
$ 2.48
|
|
$
1.47
|
|
Pro forma
adjustments(2)
|
|
-
|
|
(28)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Pro forma adjusted
EBITDA(1)
|
|
$
1,259
|
|
$
969
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted income tax
expense(1)
|
|
|
|
|
|
|
|
|
|
$
171
|
|
$
124
|
|
|
|
|
|
Net income
attributable to noncontrolling interests, net of tax
|
|
|
|
|
|
|
|
|
|
105
|
|
31
|
|
|
|
|
|
Minority interest of
discontinued operations(1)(4)
|
|
|
|
|
|
|
|
|
|
(49)
|
|
(11)
|
|
|
|
|
|
U.S. tax reform
impact on minority interest
|
|
|
|
|
|
|
|
|
|
6
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted pre-tax
income(1)
|
|
|
|
|
|
|
|
|
|
$
837
|
|
$
496
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted effective
tax rate
|
|
|
|
|
|
|
|
|
|
20%
|
|
25%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
See end of press
release for footnote explanations
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Table 5 --
Selected Balance Sheet Items
|
|
|
|
|
|
|
|
|
|
December
31,
|
|
September
30,
|
|
December
31,
|
In
millions
|
|
2017
|
|
2017
|
|
2016
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash
|
|
$
481
|
|
$
451
|
|
$
396
|
Accounts and notes
receivable, net
|
|
1,283
|
|
1,247
|
|
1,183
|
Inventories
|
|
1,073
|
|
1,084
|
|
918
|
Other current
assets
|
|
262
|
|
240
|
|
281
|
Current assets held
for sale
|
|
2,880
|
|
2,745
|
|
777
|
Property, plant and
equipment, net
|
|
3,098
|
|
3,035
|
|
3,034
|
Other
assets
|
|
1,167
|
|
1,181
|
|
1,137
|
Noncurrent assets
held for sale
|
|
-
|
|
-
|
|
1,463
|
|
|
|
|
|
|
|
Total
assets
|
|
$
10,244
|
|
$
9,983
|
|
$
9,189
|
|
|
|
|
|
|
|
Accounts
payable
|
|
$
964
|
|
$
891
|
|
$
790
|
Other current
liabilities
|
|
569
|
|
537
|
|
471
|
Current portion of
debt
|
|
40
|
|
29
|
|
50
|
Current liabilities
held for sale
|
|
1,692
|
|
1,633
|
|
467
|
Long-term
debt
|
|
2,258
|
|
2,845
|
|
4,122
|
Other
liabilities
|
|
1,350
|
|
1,457
|
|
1,429
|
Noncurrent
liabilities held for sale
|
|
-
|
|
-
|
|
393
|
Total
equity
|
|
3,371
|
|
2,591
|
|
1,467
|
|
|
|
|
|
|
|
Total liabilities
and equity
|
|
$
10,244
|
|
$
9,983
|
|
$
9,189
|
|
|
|
|
|
|
|
Table 6 --
Outstanding Debt
|
|
|
|
|
|
|
|
December
31,
|
|
December
31,
|
In
millions
|
|
2017
|
|
2016
|
|
|
|
|
|
|
|
|
|
|
Debt:
|
|
|
|
|
Senior credit
facilities
|
|
$
-
|
|
$
1,967
|
Accounts receivable
programs
|
|
180
|
|
208
|
Senior
notes
|
|
1,927
|
|
1,812
|
Variable interest
entities
|
|
107
|
|
126
|
Other debt
|
|
84
|
|
59
|
|
|
|
|
|
Total debt -
excluding affiliates
|
|
2,298
|
|
4,172
|
|
|
|
|
|
Total cash
|
|
481
|
|
396
|
|
|
|
|
|
Net debt-
excluding affiliates
|
|
$
1,817
|
|
$
3,776
|
Table 7 --
Summarized Statement of Cash Flows
|
|
|
|
Three months
ended
|
Twelve months
ended
|
|
|
December
31,
|
|
December
31,
|
In
millions
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
|
|
|
|
|
|
|
|
|
Total cash at
beginning of period(a)
|
|
$
637
|
|
$450
|
|
$
425
|
|
$ 269
|
|
|
|
|
|
|
|
|
|
Net cash provided by
operating activities - continuing operations
|
|
304
|
|
238
|
|
842
|
|
974
|
Net cash provided by
operating activities - discontinued
operations(4)
|
|
172
|
|
2
|
|
377
|
|
114
|
Net cash (used in)
provided by investing activities - continuing operations
|
|
(120)
|
|
94
|
|
(265)
|
|
(119)
|
Net cash used in
investing activities - discontinued
operations(4)
|
|
(110)
|
|
(26)
|
|
(159)
|
|
(83)
|
Net cash used in
financing activities
|
|
(170)
|
|
(326)
|
|
(519)
|
|
(723)
|
Effect of exchange
rate changes on cash
|
|
6
|
|
(7)
|
|
18
|
|
(6)
|
Change in restricted
cash
|
|
-
|
|
-
|
|
-
|
|
(1)
|
|
|
|
|
|
|
|
|
-
|
Total cash at end
of period(a)
|
|
$
719
|
|
$425
|
|
$
719
|
|
$ 425
|
|
|
|
|
|
|
|
|
|
Supplemental cash
flow information - continuing operations:
|
|
|
|
|
|
|
|
|
Cash paid for
interest
|
|
$
(47)
|
|
$ (66)
|
|
$
(169)
|
|
$(205)
|
Cash paid for income
taxes
|
|
(45)
|
|
(11)
|
|
(9)
|
|
(40)
|
Cash paid for capital
expenditures
|
|
(123)
|
|
(104)
|
|
(282)
|
|
(318)
|
Depreciation and
amortization
|
|
84
|
|
80
|
|
319
|
|
318
|
|
|
-
|
|
|
|
|
|
|
Changes in primary
working capital:
|
|
|
|
|
|
|
|
|
Accounts and notes
receivable
|
|
(35)
|
|
(22)
|
|
(183)
|
|
(25)
|
Inventories
|
|
14
|
|
44
|
|
(104)
|
|
177
|
Accounts
payable
|
|
59
|
|
57
|
|
154
|
|
46
|
|
|
|
|
|
|
|
|
|
Total cash provided
by (used in) primary working capital
|
|
$
38
|
|
$ 79
|
|
$
(133)
|
|
$ 198
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months
ended
|
|
Twelve months
ended
|
|
|
December
31,
|
|
December
31,
|
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
Free cash
flow(3):
|
|
|
|
|
|
|
|
|
Net cash provided by
operating activities
|
|
$
304
|
|
$238
|
|
$
842
|
|
$ 974
|
Capital
expenditures
|
|
(123)
|
|
(104)
|
|
(282)
|
|
(318)
|
All other investing
activities, excluding acquisition and disposition
activities(b)
|
|
(1)
|
|
(1)
|
|
6
|
|
-
|
Non-recurring merger
costs(c)
|
|
10
|
|
-
|
|
28
|
|
-
|
|
|
|
|
|
|
|
|
|
Total free cash
flow
|
|
$
190
|
|
$133
|
|
$
594
|
|
$ 656
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted
EBITDA
|
|
$
360
|
|
$210
|
|
$ 1,259
|
|
$ 997
|
Capital
expenditures
|
|
(123)
|
|
(104)
|
|
(282)
|
|
(318)
|
Capital
reimbursements
|
|
2
|
|
4
|
|
3
|
|
32
|
Interest
|
|
(47)
|
|
(66)
|
|
(169)
|
|
(205)
|
Income
taxes
|
|
(45)
|
|
(11)
|
|
(9)
|
|
(40)
|
Primary working
capital change
|
|
38
|
|
79
|
|
(133)
|
|
198
|
Restructuring
|
|
(10)
|
|
(4)
|
|
(36)
|
|
(46)
|
Pensions
|
|
(26)
|
|
(15)
|
|
(111)
|
|
(60)
|
Maintenance &
other
|
|
41
|
|
40
|
|
72
|
|
98
|
|
|
|
|
|
|
|
|
|
Total free cash
flow(3)
|
|
$
190
|
|
$133
|
|
$
594
|
|
$ 656
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(a)
|
Includes restricted
cash and cash held in discontinued operations.
|
(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 terminated merger of equals
with Clariant.
|
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; (f) EBITDA from
discontinued operations; (g) minority interest of discontinued
operations; (h) U.S. tax reform impact on minority interest; (i)
loss (gain) on disposition of businesses/assets; (j) loss on early
extinguishment of debt; (k) expenses associated with merger, net of
tax; (l) certain legal settlements and related (income) expenses;
(m) net plant incident costs; (n) amortization of pension and
postretirement actuarial losses (gains) and; (p) restructuring,
impairment and plant closing 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; (c) loss
(income) from discontinued operations; (d) minority interest of
discontinued operations; (e) U.S. tax reform impact on minority
interest; (f) U.S. tax reform impact on tax expense; (g) loss
(gain) on disposition of businesses/assets; (h) loss on early
extinguishment of debt; (i) expenses associated with merger, net of
tax; (j) certain legal settlements and related (income)
expenses; (k) net plant incident costs; (l) amortization of
pension and postretirement actuarial losses (gains); and (m)
restructuring, impairment and plant closing 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)
|
Pro forma adjusted to
exclude the sale of our European differentiated surfactants
business to Innospec on December 30, 2016 as if it had occurred at
the beginning of the relevant period.
|
|
|
(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 acquisition/disposition activities and non-recurring
separation costs. 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.
|
|
|
(4)
|
During the third
quarter of 2017 we separated our Pigments and Additives division
through an Initial Public Offering of Venator Materials PLC;
Additionally, during the first quarter 2010 we closed our
Australian styrenics operations. Results from these
associated businesses are treated as discontinued
operations.
|
About Huntsman:
Huntsman Corporation is a publicly
traded global manufacturer and marketer of differentiated and
specialty chemicals with 2017 revenues of approximately
$8 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 75 manufacturing,
R&D and operations facilities in approximately 30 countries and
employ approximately 10,000 associates within our four distinct
business divisions. For more information about Huntsman, please
visit the company's website at
www.huntsman.com.
Social Media:
Twitter:
www.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, the ability to implement cost reductions and
manufacturing optimization improvements in Huntsman businesses, and
other financial, economic, competitive, environmental, political,
legal, regulatory and technological factors. The company assumes no
obligation to provide revisions to any forward-looking statements
should circumstances change, except as otherwise required by
applicable laws.
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SOURCE Huntsman Corporation