THE WOODLANDS,
Texas, April 26,
2017 /PRNewswire/
--
First Quarter 2017 Highlights
- Net income was $92 million
compared to $62 million in the prior
year period and $137 million in the
prior quarter.
- Adjusted EBITDA was $329
million compared to $274
million in the prior year period and $256 million in the prior quarter.
- Diluted income per share was $0.31 compared to $0.24 in the prior year period and $0.53 in the prior quarter.
- Adjusted diluted income per share was $0.57 compared to $0.37 in the prior year period and $0.30 in the prior quarter.
- Net cash provided by operating activities was
$93 million. Free cash flow
generation was $82
million.
- On April 25, 2017, we made
a $100 million early repayment of
debt.
- We are committed to an IPO or spin of our Pigments
business in the summer of 2017.
|
|
Three months
ended
|
|
|
March
31,
|
|
December
31,
|
In millions, except
per share amounts
|
|
2017
|
|
2016
|
|
2016
|
|
|
|
|
|
|
|
Revenues
|
|
$2,469
|
|
$2,355
|
|
$
2,395
|
|
|
|
|
|
|
|
Net income
|
|
$
92
|
|
$
62
|
|
$
137
|
Adjusted net
income(1)
|
|
$
139
|
|
$
88
|
|
$
72
|
|
|
|
|
|
|
|
Diluted income per
share
|
|
$
0.31
|
|
$
0.24
|
|
$
0.53
|
Adjusted diluted
income per share(1)
|
|
$
0.57
|
|
$
0.37
|
|
$
0.30
|
|
|
|
|
|
|
|
Adjusted
EBITDA(1)
|
|
$
329
|
|
$
274
|
|
$
256
|
Pro forma adjusted
EBITDA(2)
|
|
$
329
|
|
$
267
|
|
$
250
|
|
|
|
|
|
|
|
Net cash provided by
operating activities
|
|
$
93
|
|
$
88
|
|
$
240
|
Free cash
flow(3)
|
|
$
82
|
|
$
(13)
|
|
$
117
|
|
|
|
|
|
|
|
See end of press
release for footnote explanations
|
Huntsman Corporation (NYSE: HUN) today reported first
quarter 2017 results with revenues of $2,469
million, net income of $92
million and adjusted EBITDA of $329
million.
Peter R. Huntsman, our
President and CEO, commented:
"Within the first quarter we saw positive business
trends develop such that earnings for all our divisions exceeded
early quarter expectations. Additionally, it is noteworthy
that our combined non-pigment businesses experienced year-over-year
EBITDA growth. Net income was $92
million and adjusted EBITDA improved by $62 million to $329 million compared to the prior
year after taking into consideration the fourth quarter 2016 sale
of our European surfactants business. Our cash flow provided
from operating activities was $93
million. Strong earnings fueled free cash flow
delivery of $82 million which
includes $54 million of insurance
proceeds, an improvement of $95
million compared to the prior year first quarter. We
continue to strengthen our balance sheet and on April 25, 2017 we voluntarily repaid $100 million of debt. In total, we have repaid
approximately $670 million over the
last year. As a result of the strong first quarter earnings
and our improving outlook for the remainder of the year, we now
expect to generate more than $450
million of free cash flow in 2017."
"We continue our efforts to separate our Pigments and
Additives division (known as Venator) and are targeting an IPO or
spin during this upcoming summer."
Segment Analysis for 1Q17 Compared to
1Q16
Polyurethanes
The increase in revenues in our Polyurethanes segment for
the three months ended March 31, 2017
compared to the same period of 2016 was primarily due to higher
average selling prices. MDI average selling prices increased in
response to higher raw material costs and continued strong market
conditions. MTBE average selling prices increased primarily as a
result of higher pricing for high octane gasoline. MDI and
MTBE volumes were flat compared to the same period of 2016.
The increase in segment adjusted EBITDA was primarily due to higher
MDI margins, partially offset by lower MTBE margins.
Performance Products
The decrease in revenues in our Performance Products
segment for the three months ended March 31, 2017
compared to the same period of 2016 was due to lower sales volumes
because of the sale of the European surfactants business to
Innospec Inc. on December 30, 2016,
partially offset by higher sales volumes in largely all of our
businesses as well as higher average selling prices. On a Pro-forma
basis, volumes increased 10%. The decrease in segment
adjusted EBITDA was primarily due to the sale of the European
surfactants business and lower margins in our amines and maleic
anhydride businesses, partially offset by higher sales volumes and
lower fixed costs.
Advanced Materials
The decrease in revenues in our Advanced Materials segment
for the three months ended March 31,
2017 compared to the same period of 2016 was primarily due
to lower sales volumes. Sales volumes decreased primarily due to
our withdrawal from certain low margin business in the coatings and
construction markets and competitive pressures in the wind market,
partially offset by growth in certain higher value
businesses. The decrease in segment adjusted EBITDA was due
to lower sales volumes, higher raw material costs, and adverse
fixed costs associated with optimizing our inventory to lower
levels.
Textile Effects
The increase in revenues in our Textile Effects segment
for the three months ended March 31, 2017 compared to the
same period of 2016 was due to higher sales volumes, partially
offset by lower average selling prices. Sales volumes increased in
both textile chemicals and dyes, particularly in our Asia, Europe
and South America regions. Average
selling prices decreased primarily in response to lower raw
material costs and product mix. The increase in segment adjusted
EBITDA was primarily due to higher volumes and lower fixed
costs.
Pigments and Additives
In the Pigments and Additives division revenues were
essentially unchanged for the three months ended March 31, 2017 compared to the same period of
2016 as higher average local currency selling prices were offset by
lower sales volumes from the fire at our Pori, Finland titanium dioxide
facility. Average selling prices increased
primarily due to improved business conditions for titanium
dioxide. Sales volumes increased within our
complementary performance additives business. The increase in
adjusted EBITDA was primarily due to higher average
selling prices for titanium dioxide and lower costs resulting from
restructuring savings, partially offset by approximately
$15 million in lower EBITDA resulting
from the fire at our Pori, Finland
titanium dioxide facility.
Corporate, LIFO and other
Adjusted EBITDA for Corporate, LIFO and Other decreased by
$1 million to a loss of $43 million for the three months ended
March 31, 2017 compared to a loss of
$42 million for the same period in
2016. The slight decrease in adjusted EBITDA was primarily a
result of a decrease in LIFO inventory valuation income, partially
offset by an increase in income from benzene sales.
Separation Update
We intend to pursue a possible initial public offering of
Venator. This is our preferred route to separate Venator as it is
intended to provide significantly more value for Huntsman
Shareholders by allowing for greater deleveraging of Huntsman. We
plan on leaving our Form 10 on file for a potential spin in the
event that the IPO market conditions become unfavorable. Either
way, we are working toward an initial public offering or spin
during the upcoming summer months of 2017.
Liquidity, Capital Resources and Outstanding
Debt
As of March 31, 2017, we had
$1,292 million of combined cash and
unused borrowing capacity compared to $1,208
million as of December 31,
2016.
During the three months ended March
31, 2017 we spent $74 million
on capital expenditures compared to $99
million in 2016. We expect to spend approximately
$380 million on capital expenditures
in 2017 net of capital reimbursements. On April 21, 2017 we amended our AR securitization
facilities, which among other things extended our maturities from
2018 to 2020. On April 25,
2017, we made a $100
million early repayment of debt on our term loan B due
2019.
Income Taxes
During the three months ended March
31, 2017, we recorded an income tax expense of $23 million. During the same
period, we paid $8 million in
cash for income taxes.
In the first quarter 2017, our adjusted effective tax rate
was 19%. We expect our long term adjusted effective tax rate will
be approximately 30%. We expect our 2017 adjusted effective tax
rate to be approximately 25 – 30%.
Earnings Conference Call Information
We will hold a conference call to discuss our first
quarter 2017 financial results on Wednesday,
April 26, 2017 at 9:00 a.m.
ET.
Call-in numbers for the conference
call:
|
U.S. participants
|
(888) 679 -
8033
|
International participants
|
(617) 213 -
4846
|
Passcode
|
549 608
51#
|
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=PYK3Y9X8X.
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
April 26, 2017 and ending
May 3, 2017.
Call-in numbers for the replay:
|
U.S. participants
|
(888) 286 -
8010
|
International participants
|
(617) 801 -
6888
|
Replay code
|
29385180
|
Upcoming Conferences
During the second quarter a member of management is
expected to present at the Wells Fargo Chemical Conference on
May 9, 2017, the Goldman Sachs Basic
Materials Conference on May 16, 2017
and Vertical Research Partners Materials Conference June 14-15, 2017. 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
|
|
|
March
31,
|
In millions, except
per share amounts
|
|
2017
|
|
2016
|
|
|
|
|
|
Revenues
|
|
$2,469
|
|
$2,355
|
Cost of goods
sold
|
|
2,003
|
|
1,939
|
Gross
profit
|
|
466
|
|
416
|
Operating
expenses
|
|
259
|
|
265
|
Restructuring,
impairment and plant closing costs
|
|
36
|
|
13
|
Business separation
expenses
|
|
9
|
|
-
|
Operating
income
|
|
162
|
|
138
|
Interest
expense
|
|
(48)
|
|
(50)
|
Equity in income of
investment in unconsolidated affiliates
|
|
-
|
|
1
|
Other
income
|
|
2
|
|
1
|
Income before
income taxes
|
|
116
|
|
90
|
Income tax
expense
|
|
(23)
|
|
(27)
|
Income from
continuing operations
|
|
93
|
|
63
|
Loss from
discontinued operations, net of tax(3)
|
|
(1)
|
|
(1)
|
Net
income
|
|
92
|
|
62
|
Net income
attributable to noncontrolling interests, net of tax
|
|
(16)
|
|
(6)
|
Net income
attributable to Huntsman Corporation
|
|
$
76
|
|
$
56
|
|
|
|
|
|
|
|
|
|
|
Adjusted
EBITDA(1)
|
|
$
329
|
|
$
274
|
Adjusted net
income(1)
|
|
$
139
|
|
$
88
|
|
|
|
|
|
|
|
|
|
|
Basic income per
share
|
|
$
0.32
|
|
$
0.24
|
Diluted income per
share
|
|
$
0.31
|
|
$
0.24
|
Adjusted diluted
income per share(1)
|
|
$
0.57
|
|
$
0.37
|
|
|
|
|
|
Common share
information:
|
|
|
|
|
Basic shares
outstanding
|
|
237
|
|
236
|
Diluted
shares
|
|
243
|
|
238
|
Diluted shares for
adjusted diluted income per share
|
|
243
|
|
238
|
|
|
|
|
|
See end of press
release for footnote explanations
|
|
|
|
|
Table 2 – Results of
Operations by Segment
|
|
|
|
|
|
|
|
Three months
ended
|
|
|
|
|
March
31,
|
|
Better
/
|
In
millions
|
|
2017
|
|
2016
|
|
(Worse)
|
|
|
|
|
|
|
|
Segment
Revenues:
|
|
|
|
|
|
|
Polyurethanes
|
|
$
953
|
|
$
836
|
|
14%
|
Performance
Products
|
|
533
|
|
536
|
|
(1)%
|
Performance
Products, pro forma(2)
|
|
533
|
|
475
|
|
12%
|
Advanced
Materials
|
|
259
|
|
266
|
|
(3)%
|
Textile
Effects
|
|
188
|
|
185
|
|
2%
|
Pigments &
Additives
|
|
537
|
|
540
|
|
(1)%
|
Corporate and
eliminations
|
|
(1)
|
|
(8)
|
|
n/m
|
|
|
|
|
|
|
|
Total
|
|
$2,469
|
|
$2,355
|
|
5%
|
Total, pro
forma(2)
|
|
$2,469
|
|
$2,294
|
|
8%
|
|
|
|
|
|
|
|
Segment Adjusted
EBITDA(1):
|
|
|
|
|
|
|
Polyurethanes
|
|
$
144
|
|
$
131
|
|
10%
|
Performance
Products
|
|
84
|
|
92
|
|
(9)%
|
Performance
Products, pro forma(2)
|
|
84
|
|
85
|
|
(1)%
|
Advanced
Materials
|
|
54
|
|
60
|
|
(10)%
|
Textile
Effects
|
|
21
|
|
18
|
|
17%
|
Pigments &
Additives
|
|
69
|
|
15
|
|
360%
|
Corporate, LIFO and
other
|
|
(43)
|
|
(42)
|
|
(2)%
|
|
|
|
|
|
|
|
Total
|
|
$
329
|
|
$
274
|
|
20%
|
Total, pro
forma(2)
|
|
$
329
|
|
$
267
|
|
23%
|
|
n/m = not
meaningful
|
|
|
|
|
|
|
|
See end of press
release for footnote explanations
|
Table 3 – Factors Impacting Sales
Revenue
|
|
|
|
|
|
|
Three months
ended
|
|
|
|
March 31, 2017 vs.
2016
|
|
|
|
Average Selling
Price(a)
|
|
|
|
|
|
|
|
|
|
Local
|
|
Exchange
|
|
Sales
Mix
|
|
Sales
|
|
|
|
|
|
Currency
|
|
Rate
|
|
&
Other
|
|
Volume(b)
|
|
Total
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Polyurethanes
|
|
12%
|
|
(2)%
|
|
3%
|
|
1%
|
|
14%
|
|
Performance
Products
|
|
3%
|
|
0%
|
|
2%
|
|
(6)%
|
|
(1)%
|
|
Performance
Products, adj
|
|
(2)%
|
|
0%
|
|
4%
|
|
10%
|
|
12%
|
(c)
|
Advanced
Materials
|
|
1%
|
|
(1)%
|
|
0%
|
|
(3)%
|
|
(3)%
|
|
Textile
Effects
|
|
(5)%
|
|
(1)%
|
|
(2)%
|
|
10%
|
|
2%
|
|
Pigments &
Additives
|
|
9%
|
|
(2)%
|
|
(2)%
|
|
(6)%
|
|
(1)%
|
|
Pigments &
Additives, adj
|
|
10%
|
|
(2)%
|
|
(1)%
|
|
(3)%
|
|
4%
|
(d)
|
Total
Company
|
|
8%
|
|
(2)%
|
|
2%
|
|
(3)%
|
|
5%
|
|
Total Company,
adj
|
|
7%
|
|
(2)%
|
|
2%
|
|
2%
|
|
9%
|
(c)(d)
|
|
|
|
|
|
|
|
|
|
|
|
|
(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 the fire at our Pori. Finland
facility.
|
Table 4 – Reconciliation of U.S. GAAP to Non-GAAP
Measures
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income
Tax
|
|
|
|
|
|
Diluted
Income
|
|
|
EBITDA
|
|
Expense
|
|
Net
Income
|
|
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
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
income
|
|
$
92
|
|
$
62
|
|
|
|
|
|
$
92
|
|
$
62
|
|
$
0.38
|
|
$ 0.26
|
Net income
attributable to noncontrolling interests
|
|
(16)
|
|
(6)
|
|
|
|
|
|
(16)
|
|
(6)
|
|
(0.07)
|
|
(0.03)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
attributable to Huntsman Corporation
|
|
76
|
|
56
|
|
|
|
|
|
76
|
|
56
|
|
0.31
|
|
0.24
|
Interest
expense
|
|
48
|
|
50
|
|
|
|
|
|
|
|
|
|
|
|
|
Income tax expense
from continuing operations
|
|
23
|
|
27
|
|
(23)
|
|
(27)
|
|
|
|
|
|
|
|
|
Income tax benefit
from discontinued operations(4)
|
|
(1)
|
|
(1)
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation and
amortization
|
|
106
|
|
100
|
|
|
|
|
|
|
|
|
|
|
|
|
Acquisition and
integration expenses
|
|
3
|
|
9
|
|
-
|
|
(3)
|
|
3
|
|
6
|
|
0.01
|
|
0.03
|
Loss from
discontinued operations, net of tax(4)
|
|
2
|
|
2
|
|
N/A
|
|
N/A
|
|
1
|
|
1
|
|
-
|
|
-
|
Extraordinary gain on
the acquisition of a business, net of tax
|
|
-
|
|
1
|
|
N/A
|
|
N/A
|
|
-
|
|
1
|
|
-
|
|
-
|
Certain legal
settlements and related expenses
|
|
-
|
|
1
|
|
-
|
|
-
|
|
-
|
|
1
|
|
-
|
|
-
|
Net plant incident
costs
|
|
5
|
|
-
|
|
(1)
|
|
-
|
|
4
|
|
-
|
|
0.02
|
|
-
|
Business separation
costs
|
|
9
|
|
-
|
|
(2)
|
|
-
|
|
7
|
|
-
|
|
0.03
|
|
-
|
Amortization of
pension and postretirement actuarial losses
|
|
22
|
|
16
|
|
(4)
|
|
(3)
|
|
18
|
|
13
|
|
0.07
|
|
0.05
|
Restructuring,
impairment and plant closing costs
|
|
36
|
|
13
|
|
(6)
|
|
(3)
|
|
30
|
|
10
|
|
0.12
|
|
0.04
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted(1)
|
|
$
329
|
|
$
274
|
|
$
(36)
|
|
$
(36)
|
|
$
139
|
|
$
88
|
|
$
0.57
|
|
$ 0.37
|
Pro forma
adjustments(2)
|
|
-
|
|
$
(7)
|
|
|
|
|
|
|
|
|
|
|
|
|
Pro forma adjusted
EBITDA(1)
|
|
$
329
|
|
$
267
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted income tax
expense(1)
|
|
|
|
|
|
|
|
|
|
$
36
|
|
$
36
|
|
|
|
|
Net income
attributable to noncontrolling interests, net of tax
|
|
|
|
|
|
|
|
|
|
16
|
|
6
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted pre-tax
income(1)
|
|
|
|
|
|
|
|
|
|
$
191
|
|
$
130
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted effective
tax rate
|
|
|
|
|
|
|
|
|
|
19%
|
|
28%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income
Tax
|
|
|
|
|
|
Diluted
Income
|
|
|
EBITDA
|
|
(Expense)
Benefit
|
|
Net
Income
|
|
Per
Share
|
|
|
Three months
ended
|
|
Three months
ended
|
|
Three months
ended
|
|
Three months
ended
|
|
|
December
31,
|
|
December
31,
|
|
December
31,
|
|
December
31,
|
In millions, except
per share amounts
|
|
2016
|
|
2016
|
|
2016
|
|
2016
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
income
|
|
$
137
|
|
|
|
|
|
|
|
$
137
|
|
|
|
$
0.57
|
|
|
Net income
attributable to noncontrolling interests
|
|
(9)
|
|
|
|
|
|
|
|
(9)
|
|
|
|
(0.04)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
attributable to Huntsman Corporation
|
|
128
|
|
|
|
|
|
|
|
128
|
|
|
|
0.53
|
|
|
Interest
expense
|
|
50
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income tax benefit
from continuing operations
|
|
29
|
|
|
|
(29)
|
|
|
|
|
|
|
|
|
|
|
Income tax benefit
from discontinued operations(4)
|
|
(1)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation and
amortization
|
|
110
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Acquisition and
integration expenses
|
|
2
|
|
|
|
-
|
|
|
|
2
|
|
|
|
0.01
|
|
|
Loss from
discontinued operations, net of tax(4)
|
|
2
|
|
|
|
N/A
|
|
|
|
1
|
|
|
|
-
|
|
|
Gain on disposition
of businesses/assets
|
|
(97)
|
|
|
|
14
|
|
|
|
(83)
|
|
|
|
(0.34)
|
|
|
Certain legal
settlements and related expenses
|
|
2
|
|
|
|
(1)
|
|
|
|
1
|
|
|
|
-
|
|
|
Net plant incident
costs
|
|
3
|
|
|
|
(1)
|
|
|
|
2
|
|
|
|
0.01
|
|
|
Business separation
costs
|
|
18
|
|
|
|
(5)
|
|
|
|
13
|
|
|
|
0.05
|
|
|
Amortization of
pension and postretirement actuarial losses
|
|
16
|
|
|
|
(2)
|
|
|
|
14
|
|
|
|
0.06
|
|
|
Restructuring,
impairment and plant closing credits
|
|
(6)
|
|
|
|
-
|
|
|
|
(6)
|
|
|
|
(0.02)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted(1)
|
|
$
256
|
|
|
|
$
(24)
|
|
|
|
$
72
|
|
|
|
$
0.30
|
|
|
Pro forma
adjustments(2)
|
|
(6)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Pro forma adjusted
EBITDA(1)
|
|
$
250
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted income tax
expense(1)
|
|
|
|
|
|
|
|
|
|
$
24
|
|
|
|
|
|
|
Net income
attributable to noncontrolling interests, net of tax
|
|
|
|
|
|
|
|
|
|
9
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted pre-tax
income(1)
|
|
|
|
|
|
|
|
|
|
$
105
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted effective
tax rate
|
|
|
|
|
|
|
|
|
|
23%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
See end of press
release for footnote explanations
|
|
|
|
|
|
|
|
|
Table 5 – Selected Balance Sheet
Items
|
|
|
|
|
|
|
|
|
|
|
|
|
March
31,
|
|
December
31,
|
In
millions
|
|
2017
|
|
2016
|
|
|
|
|
|
|
|
|
|
|
Cash
|
|
$
469
|
|
$
425
|
Accounts and notes
receivable, net
|
|
1,508
|
|
1,435
|
Inventories
|
|
1,486
|
|
1,344
|
Other current
assets
|
|
372
|
|
351
|
Property, plant and
equipment, net
|
|
4,186
|
|
4,212
|
Other
assets
|
|
1,467
|
|
1,422
|
|
|
|
|
|
Total
assets
|
|
$
9,488
|
|
$
9,189
|
|
|
|
|
|
Accounts
payable
|
|
$
1,162
|
|
$
1,102
|
Other current
liabilities
|
|
632
|
|
616
|
Current portion of
debt
|
|
61
|
|
60
|
Long-term
debt
|
|
4,161
|
|
4,135
|
Other
liabilities
|
|
1,823
|
|
1,809
|
Total
equity
|
|
1,649
|
|
1,467
|
|
|
|
|
|
Total liabilities
and equity
|
|
$
9,488
|
|
$
9,189
|
|
|
|
|
|
Table 6 – Outstanding Debt
|
|
|
|
|
|
|
|
March
31,
|
|
December
31,
|
In
millions
|
|
2017
|
|
2016
|
|
|
|
|
|
|
|
|
|
|
Debt:
|
|
|
|
|
Senior credit
facilities
|
|
$
1,965
|
|
$
1,967
|
Accounts receivable
programs
|
|
213
|
|
208
|
Senior
notes
|
|
1,841
|
|
1,812
|
Variable interest
entities
|
|
125
|
|
128
|
Other debt
|
|
78
|
|
80
|
|
|
|
|
|
Total debt -
excluding affiliates
|
|
4,222
|
|
4,195
|
|
|
|
|
|
Total cash
|
|
469
|
|
425
|
|
|
|
|
|
Net debt-
excluding affiliates
|
|
$
3,753
|
|
$
3,770
|
|
|
|
|
|
Table 7 – Summarized Statement of Cash
Flows
|
|
|
|
|
|
Three months
ended
|
|
|
March
31,
|
In
millions
|
|
2017
|
|
2016
|
|
|
|
|
|
Total cash at
beginning of period(a)
|
|
$
425
|
|
$
269
|
|
|
|
|
|
Net cash provided by
operating activities
|
|
93
|
|
88
|
Net cash used in
investing activities
|
|
(24)
|
|
(101)
|
Net cash used in
financing activities
|
|
(31)
|
|
(38)
|
Effect of exchange
rate changes on cash
|
|
5
|
|
2
|
Change in restricted
cash
|
|
1
|
|
(2)
|
|
|
|
|
-
|
Total cash at end
of period(a)
|
|
$
469
|
|
$
218
|
|
|
|
|
|
Supplemental cash
flow information:
|
|
|
|
|
Cash paid for
interest
|
|
$
(36)
|
|
$
(35)
|
Cash paid for income
taxes
|
|
(8)
|
|
(5)
|
Cash paid for capital
expenditures
|
|
(74)
|
|
(99)
|
Depreciation and
amortization
|
|
106
|
|
100
|
|
|
|
|
|
Changes in primary
working capital:
|
|
|
|
|
Accounts and notes
receivable
|
|
$
(57)
|
|
$
(105)
|
Inventories
|
|
(110)
|
|
22
|
Accounts
payable
|
|
77
|
|
(31)
|
|
|
|
|
|
Total cash used in
primary working capital
|
|
$
(90)
|
|
$
(114)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months
ended
|
|
|
March
31,
|
|
|
2017
|
|
2016
|
Free cash
flow(3):
|
|
|
|
|
Net cash provided by
operating activities
|
|
$
93
|
|
$
88
|
Capital
expenditures
|
|
(74)
|
|
(99)
|
All other investing
activities excluding acquisition
|
|
|
|
|
and
disposition activities(b)
|
|
50
|
|
(2)
|
Non recurring
separation costs(c)
|
|
13
|
|
|
|
|
|
|
|
Total free cash
flow
|
|
$
82
|
|
$
(13)
|
|
|
|
|
|
|
|
|
|
|
Adjusted
EBITDA
|
|
$
329
|
|
$
274
|
Capital
expenditures
|
|
(74)
|
|
(99)
|
Capital
reimbursements
|
|
55
|
|
|
Interest
|
|
(36)
|
|
(35)
|
Income
taxes
|
|
(8)
|
|
(5)
|
Primary working
capital change
|
|
(90)
|
|
(114)
|
Restructuring
|
|
(19)
|
|
(20)
|
Pensions
|
|
(24)
|
|
(22)
|
Maintenance &
other
|
|
(51)
|
|
8
|
|
|
|
|
|
Total free cash
flow(3)
|
|
$
82
|
|
$
(13)
|
|
(a) Includes
restricted cash.
|
(b) Represents
"Acquisition of business, net of cash acquired", "Cash
received from purchase price adjustment for business
acquired", and "Proceeds from sale
of
business/assets".
|
(c) Represents
payments associated with one-time costs of the proposed separation
of our Pigments & Additives business.
|
Footnotes
|
|
|
(1)
|
We use adjusted EBITDA to measure the operating
performance of our business and for planning and evaluating the
performance of our business segments. We provide adjusted net
income because we feel it provides meaningful insight for the
investment community into the performance of our business. We
believe that net income (loss) is the performance measure
calculated and presented in accordance with generally accepted
accounting principles in the U.S. ("GAAP") that is most directly
comparable to adjusted EBITDA and adjusted net income.
Additional information with respect to our use of each of these
financial measures follows:
|
|
|
|
Adjusted EBITDA,
adjusted net income (loss) and adjusted diluted income (loss) per
share, as used herein, are not necessarily comparable to other
similarly titled measures of other companies.
|
|
|
|
Adjusted EBITDA is
computed by eliminating the following from net income (loss):
(a) net income attributable to noncontrolling interest, net of tax;
(b) interest; (c) income taxes; (d) depreciation and amortization;
(e) acquisition and integration expenses, purchase accounting
adjustments; (f) EBITDA from discontinued operations; (g) loss
(gain) on disposition of businesses/assets; (h) loss on early
extinguishment of debt; (i) certain legal settlements and related
expenses; (j) net plant incident costs (credits), net; (k) business
separation costs; (l) amortization of pension and postretirement
actuarial losses (gains) and; (m)
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, purchase accounting adjustments; (c) impact
of certain foreign tax credit elections; (d) loss (income) from
discontinued operations; (e) discount amortization on settlement
financing associated with the terminated merger; (f) loss (gain) on
disposition of businesses/assets; (g) loss on early extinguishment
of debt; (h) certain legal settlements and related expenses; (i)
net plant incident costs (credits),
net; (j) business separation costs; (k) amortization of
pension and postretirement actuarial losses (gains); and (l)
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 first
quarter 2010 we closed our Australian styrenics operations; results
from associated business are treated as discontinued
operations.
|
About Huntsman:
Huntsman
Corporation is a publicly traded global manufacturer and marketer
of differentiated chemicals with 2016 revenues of approximately
$10 billion. Our chemical
products number in the thousands and are sold worldwide to
manufacturers serving a broad and diverse range of consumer and
industrial end markets. We operate more than 100 manufacturing and
R&D facilities in approximately 30 countries and employ
approximately 15,000 associates within our 5 distinct business
divisions including the Pigments and Additives division that we
intend to IPO or spin-off as Venator Materials Corporation. For
more information about Huntsman, please visit the company's website
at
www.huntsman.com.
Social
Media:
Twitter:
twitter.com/Huntsman_Corp
Facebook:
www.facebook.com/huntsmancorp
LinkedIn:
www.linkedin.com/company/huntsman
Cautionary Statement
This release
shall not constitute an offer to sell or the solicitation of an
offer to buy securities. Any offers, solicitations or offers
to buy, or any sales of securities will be made in accordance with
the registration requirements of the Securities Act of 1933, as
amended.
Forward-Looking
Statements:
Statements in this release that
are not historical are forward-looking statements. These statements
are based on management's current beliefs and expectations. The
forward-looking statements in this release are subject to
uncertainty and changes in circumstances and involve risks and
uncertainties that may affect the company's operations, markets,
products, services, prices and other factors as discussed in the
Huntsman companies' filings with the U.S. Securities and Exchange
Commission. Significant risks and uncertainties may relate to, but
are not limited to, volatile global economic conditions, cyclical
and volatile product markets, disruptions in production at
manufacturing facilities, reorganization or restructuring of
Huntsman's operations, including any delay of, or other negative
developments affecting, the IPO or spin-off of Venator Materials
Corporation, the ability to implement cost reductions and
manufacturing optimization improvements in Huntsman businesses and
realize anticipated cost savings, and other financial, economic,
competitive, environmental, political, legal, regulatory and
technological factors. The company assumes no obligation to
provide revisions to any forward-looking statements should
circumstances change, except as otherwise required by applicable
laws.
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/huntsman-announces-first-quarter-2017-results-raises-2017-free-cash-flow-target-to-over-450-million-300445472.html
SOURCE Huntsman Corporation