THE WOODLANDS, Texas,
April 28, 2016 /PRNewswire/ --
First Quarter 2016 Highlights
- Adjusted EBITDA was $274 million
compared to $285 million in the prior
year period and $240 million in the
prior quarter.
- Adjusted diluted income per share was $0.37 compared to $0.40 in the prior year period and $0.51 in the prior quarter.
- Net income attributable to Huntsman Corporation was
$56 million compared to $5 million in the prior year period and
$4 million in the prior quarter.
- The stronger U.S. dollar reduced adjusted EBITDA by an
estimated $19 million compared to the
prior year period; a negative impact of approximately $0.05 loss per diluted share.
- First quarter 2016 free cash flow generation improved
$34 million compared to the prior
year period.
|
|
Three months
ended
|
|
|
March
31,
|
|
December
31,
|
In millions, except
per share amounts, unaudited
|
|
2016
|
|
2015
|
|
2015
|
|
|
|
|
|
|
|
Revenues
|
|
$2,355
|
|
$2,589
|
|
$
2,332
|
|
|
|
|
|
|
|
Net income
attributable to Huntsman Corporation
|
|
$ 56
|
|
$ 5
|
|
$
4
|
Adjusted net
income(1)
|
|
$ 88
|
|
$ 98
|
|
$
124
|
|
|
|
|
|
|
|
Diluted income per
share
|
|
$ 0.24
|
|
$ 0.02
|
|
$
0.02
|
Adjusted diluted
income per share(1)
|
|
$ 0.37
|
|
$ 0.40
|
|
$
0.51
|
|
|
|
|
|
|
|
EBITDA(1)
|
|
$ 232
|
|
$ 159
|
|
$
111
|
Adjusted
EBITDA(1)
|
|
$ 274
|
|
$ 285
|
|
$
240
|
|
|
|
|
|
|
|
|
See end of press
release for footnote explanations
|
Huntsman Corporation (NYSE: HUN) today reported first quarter
2016 results with revenues of $2,355
million and adjusted EBITDA of $274
million.
Peter R. Huntsman, our President
and CEO, commented:
"I am pleased with the improvements that we are seeing
in our business. We are intensely focused on the three
priorities outlined at our recent Investor Day.
Our first priority is growing margins and earnings in our
core downstream differentiated businesses. To this end,
during the first quarter our total company adjusted EBITDA improved
to $274 million from $240 million in the previous
quarter.
Our second priority is generating more than $350 million of free cash flow in 2016. Our first
quarter results put us well on track to achieving this
objective.
Our third priority is the separation of our TiO2 business. We
continue to explore a spin to our shareholders as well as other
strategic options. As margins improve in our pigments business and
we see the full effects of our restructuring efforts, I am
encouraged that improving conditions will enable us to achieve this
separation.
Our successful first quarter results position us well to
accomplish these objectives to increase shareholder
value."
Segment Analysis for 1Q16 Compared to 1Q15
Polyurethanes
The decrease in revenues in our Polyurethanes division for the
three months ended March 31, 2016
compared to the same period in 2015 was primarily due to lower
average selling prices. MDI average selling prices decreased
in response to lower raw material costs and the foreign currency
exchange impact of a stronger U.S. dollar primarily against the
euro. MTBE average selling prices decreased in-line with
lower pricing for high octane gasoline. PO/MTBE sales volumes
increased due to the impact of the prior year planned maintenance
outage. MDI sales volumes increased due to higher demand in
the Americas and European regions. The increase in adjusted
EBITDA was primarily due to the impact of the prior year planned
PO/MTBE maintenance outage, estimated at $60
million, and higher MDI volumes, partially offset by lower
MTBE margins and the foreign currency exchange impact of a stronger
U.S. dollar primarily against the euro.
Performance Products
The decrease in revenues in our Performance Products division
for the three months ended March 31,
2016 compared to the same period in 2015 was primarily due
to lower average selling prices, partially offset by higher 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 increased primarily due to higher sales
volumes of ethylene oxide intermediates, partially offset by lower
sales volumes for amines and maleic anhydride. The decrease
in adjusted EBITDA was primarily due to lower sales volumes for
amines and maleic anhydride and lower contribution margins for
ethylene and maleic anhydride.
Advanced Materials
The decrease in revenues in our Advanced Materials division for
the three months ended March 31, 2016
compared to the same period in 2015 was due to lower sales volumes
and lower average selling prices. Sales volumes decreased in
the Americas region, primarily due to competitive pressure,
partially offset by strong volume growth in our European and
Asia Pacific regions.
Average selling prices decreased in our European and Asia Pacific regions as a result of
competitive pricing pressure and the foreign currency exchange
impact of a stronger U.S. dollar primarily against the euro.
The increase in adjusted EBITDA was primarily due to higher
contribution margins from lower raw material costs.
Textile Effects
The decrease in revenues in our Textile Effects division for the
three months ended March 31, 2016
compared to the same period in 2015 was due to lower average
selling prices and lower sales volumes. Average selling
prices decreased primarily due to 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 destocking within the dyes supply chain.
The increase in adjusted EBITDA was primarily due to higher
contribution margins from lower raw material costs and lower
selling, general and administrative expenses.
Pigments and Additives
The decrease in revenues in our Pigments and Additives division
for the three months ended March 31,
2016 compared to the same period in 2015 was due to lower
average selling prices, partially offset by higher sales
volumes. Average selling prices decreased primarily as a
result of competitive pressure and the foreign currency exchange
impact of a stronger U.S. dollar primarily against the euro.
Sales volumes increased primarily due to increased 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 decreased by
$5 million to a loss of $42 million for the three months ended
March 31, 2016 compared to a loss of
$37 million for the same period in
2015. The decrease in adjusted EBITDA was primarily the
result of a decrease in LIFO inventory valuation income, partially
offset by a decrease in loss from benzene sales.
Liquidity, Capital Resources and Outstanding Debt
As of March 31, 2016, we had
$974 million of combined cash and
unused borrowing capacity compared to $1,023
million on December 31,
2015.
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.
On April 1, 2016, we entered into
a new $550 million 2016 Term Loan B
due 2023. Proceeds from the new term loan were used to repay
in full our term loan B due 2017 and remaining term loan C due
2016. We also extended the maturity of our revolving credit
facility to 2021 and increased the amount to $650 million.
Total capital expenditures for the period ended March 31, 2016 were $99
million. We expect to spend approximately $450 million annually on capital expenditures in
2016 and 2017.
Income Taxes
During the three months ended March 31,
2016, we recorded an income tax expense of $27 million. During the same period we paid
$5 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 first quarter 2016
financial results on Thursday, April 28,
2016 at 10:00 a.m. ET.
Call-in numbers for
the conference call:
|
U.S.
participants
|
(888) 679 -
8035
|
International
participants
|
(617) 213 -
4848
|
Passcode
|
503 030
93#
|
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=P84M7KQQF
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 28, 2016 and ending
May 5, 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
|
|
|
March
31,
|
In millions, except
per share amounts, unaudited
|
|
2016
|
|
2015
|
|
|
|
|
|
Revenues
|
|
$2,355
|
|
$2,589
|
Cost of goods
sold
|
|
1,939
|
|
2,139
|
Gross
profit
|
|
416
|
|
450
|
Operating
expenses
|
|
265
|
|
280
|
Restructuring,
impairment and plant closing costs
|
|
13
|
|
93
|
Operating
income
|
|
138
|
|
77
|
Interest
expense
|
|
(50)
|
|
(56)
|
Equity in income of
investment in unconsolidated affiliates
|
|
1
|
|
2
|
Loss on early
extinguishment of debt
|
|
-
|
|
(3)
|
Other income
(loss)
|
|
1
|
|
(1)
|
Income before
income taxes
|
|
90
|
|
19
|
Income tax
expense
|
|
(27)
|
|
(2)
|
Income from
continuing operations
|
|
63
|
|
17
|
Loss from
discontinued operations, net of tax(2)
|
|
(1)
|
|
(2)
|
Net
income
|
|
62
|
|
15
|
Net income
attributable to noncontrolling interests, net of tax
|
|
(6)
|
|
(10)
|
Net income
attributable to Huntsman Corporation
|
|
$ 56
|
|
$ 5
|
|
|
|
|
|
|
|
|
|
|
Adjusted
EBITDA(1)
|
|
$ 274
|
|
$ 285
|
|
|
|
|
|
Adjusted net
income(1)
|
|
$ 88
|
|
$ 98
|
|
|
|
|
|
|
|
|
|
|
Basic income per
share
|
|
$ 0.24
|
|
$ 0.02
|
Diluted income per
share
|
|
$ 0.24
|
|
$ 0.02
|
Adjusted diluted
income per share(1)
|
|
$ 0.37
|
|
$ 0.40
|
|
|
|
|
|
Common share
information:
|
|
|
|
|
Basic shares
outstanding
|
|
236
|
|
244
|
Diluted
shares
|
|
238
|
|
247
|
Diluted shares for
adjusted diluted income per share
|
|
238
|
|
247
|
|
|
|
|
|
|
See end of press
release for footnote explanations
|
Table 2 – Results
of Operations by Segment
|
|
|
|
|
|
|
Three months
ended
|
|
|
|
March
31,
|
|
Better
/
|
In millions,
unaudited
|
|
2016
|
|
2015
|
|
(Worse)
|
|
|
|
|
|
|
|
Segment
Revenues:
|
|
|
|
|
|
|
Polyurethanes
|
|
$ 836
|
|
$ 890
|
|
(6)%
|
Performance
Products
|
|
536
|
|
656
|
|
(18)%
|
Advanced
Materials
|
|
266
|
|
290
|
|
(8)%
|
Textile
Effects
|
|
185
|
|
206
|
|
(10)%
|
Pigments &
Additives
|
|
540
|
|
572
|
|
(6)%
|
Corporate and
eliminations
|
|
(8)
|
|
(25)
|
|
n/m
|
|
|
|
|
|
|
|
Total
|
|
$2,355
|
|
$2,589
|
|
(9)%
|
|
|
|
|
|
|
|
Segment Adjusted
EBITDA(1):
|
|
|
|
|
|
Polyurethanes
|
|
$ 131
|
|
$ 105
|
|
25%
|
Performance
Products
|
|
92
|
|
121
|
|
(24)%
|
Advanced
Materials
|
|
60
|
|
58
|
|
3%
|
Textile
Effects
|
|
18
|
|
17
|
|
6%
|
Pigments &
Additives
|
|
15
|
|
21
|
|
(29)%
|
Corporate, LIFO and
other
|
|
(42)
|
|
(37)
|
|
(14)%
|
|
|
|
|
|
|
|
Total
|
|
$ 274
|
|
$ 285
|
|
(4)%
|
|
|
|
|
|
|
|
|
n/m = not
meaningful
|
See end of press
release for footnote explanations
|
Table 3 – Factors
Impacting Sales Revenues
|
|
|
|
|
|
Three months
ended
|
|
|
March 31, 2016 vs.
2015
|
|
|
Average Selling
Price(a)
|
|
|
|
|
|
|
|
|
Local
|
|
Exchange
|
|
Sales
Mix
|
|
Sales
|
|
|
Unaudited
|
|
Currency
|
|
Rate
|
|
&
Other
|
|
Volume(b)
|
|
Total
|
|
|
|
|
|
|
|
|
|
|
|
Polyurethanes
|
|
(19)%
|
|
(2)%
|
|
2%
|
|
13%
|
|
(6)%
|
Performance
Products
|
|
(13)%
|
|
(2)%
|
|
(10)%
|
|
7%
|
|
(18)%
|
Advanced
Materials
|
|
(3)%
|
|
(5)%
|
|
2%
|
|
(2)%
|
|
(8)%
|
Textile
Effects
|
|
(2)%
|
|
(5)%
|
|
(1)%
|
|
(2)%
|
|
(10)%
|
Pigments &
Additives
|
|
(11)%
|
|
(3)%
|
|
2%
|
|
6%
|
|
(6)%
|
Total
Company
|
|
(13)%
|
|
(3)%
|
|
(2)%
|
|
9%
|
|
(9)%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Pro
forma
|
|
|
|
|
Three months
ended
|
|
|
|
|
March 31, 2016 vs.
2015
|
|
|
|
|
Average
|
|
|
|
|
|
|
|
|
|
|
Selling
|
|
Sales
Mix
|
|
Sales
|
|
|
|
|
Unaudited, pro
forma
|
|
Price(a)
|
|
&
Other
|
|
Volume(b)
|
|
Total
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Polyurethanes
|
|
(21)%
|
|
2%
|
|
3%
|
|
(16)%
|
(c)
|
|
Performance
Products
|
|
(15)%
|
|
(10)%
|
|
7%
|
|
(18)%
|
|
|
Advanced
Materials
|
|
(8)%
|
|
2%
|
|
(2)%
|
|
(8)%
|
|
|
Textile
Effects
|
|
(7)%
|
|
(1)%
|
|
(2)%
|
|
(10)%
|
|
|
Pigments &
Additives
|
|
(14)%
|
|
2%
|
|
6%
|
|
(6)%
|
|
|
Total
Company
|
|
(16)%
|
|
(2)%
|
|
6%
|
|
(12)%
|
(c)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(a) Excludes sales
from tolling arrangements, by-products and raw
materials.
|
(b) Excludes sales
from by-products and raw materials.
|
(c) Excludes volume
impact from planned maintenance at our PO/MTBE facility in
1H15.
|
Table 4 –
Reconciliation of U.S. GAAP to Non-GAAP Measures
|
|
|
|
|
|
|
|
Income
Tax
|
|
Net
Income
|
|
Diluted
Income
|
|
|
EBITDA
|
|
Expense
|
|
Attrib. to
HUN Corp.
|
|
Per
Share
|
|
|
Three months
ended
|
|
Three months
ended
|
|
Three months
ended
|
|
Three months
ended
|
|
|
March
31,
|
|
March
31,
|
|
March
31,
|
|
March
31,
|
In millions, except
per share amounts, unaudited
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP(1)
|
|
$ 232
|
|
$ 159
|
|
$ (27)
|
|
$ (2)
|
|
$ 56
|
|
$ 5
|
|
$ 0.24
|
|
$ 0.02
|
Adjustments:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Acquisition and
integration expenses, purchase accounting adjustments
|
|
9
|
|
9
|
|
(3)
|
|
(2)
|
|
6
|
|
7
|
|
0.03
|
|
0.03
|
Loss from
discontinued operations, net of tax(2)
|
|
2
|
|
1
|
|
N/A
|
|
N/A
|
|
1
|
|
2
|
|
-
|
|
0.01
|
Loss on early
extinguishment of debt
|
|
-
|
|
3
|
|
-
|
|
(1)
|
|
-
|
|
2
|
|
-
|
|
0.01
|
Certain legal
settlements and related expenses
|
|
1
|
|
1
|
|
-
|
|
-
|
|
1
|
|
1
|
|
-
|
|
-
|
Net plant incident
remediation costs
|
|
1
|
|
-
|
|
-
|
|
-
|
|
1
|
|
-
|
|
-
|
|
-
|
Amortization of
pension and postretirement actuarial losses
|
|
16
|
|
18
|
|
(3)
|
|
(5)
|
|
13
|
|
13
|
|
0.05
|
|
0.05
|
Restructuring,
impairment, plant closing and transition costs
|
|
13
|
|
94
|
|
(3)
|
|
(26)
|
|
10
|
|
68
|
|
0.04
|
|
0.28
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted(1)
|
|
$ 274
|
|
$ 285
|
|
$ (36)
|
|
$ (36)
|
|
$ 88
|
|
$ 98
|
|
$ 0.37
|
|
$ 0.40
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted income tax
expense
|
|
|
|
|
|
|
|
|
|
36
|
|
36
|
|
|
|
|
Net income
attributable to noncontrolling interests, net of tax
|
|
|
|
|
|
|
|
|
|
6
|
|
10
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted pre-tax
income(1)
|
|
|
|
|
|
|
|
|
|
$ 130
|
|
$ 144
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted effective
tax rate
|
|
|
|
|
|
|
|
|
|
28%
|
|
25%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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
|
|
|
December
31,
|
|
December
31,
|
|
December
31,
|
|
December
31,
|
In millions, except
per share amounts, unaudited
|
|
2015
|
|
2015
|
|
2015
|
|
2015
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP(1)
|
|
$ 111
|
|
|
|
$ 39
|
|
|
|
$ 4
|
|
|
|
$ 0.02
|
|
|
Adjustments:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Acquisition and
integration expenses, purchase accounting adjustments
|
|
22
|
|
|
|
(6)
|
|
|
|
16
|
|
|
|
0.07
|
|
|
Loss from
discontinued operations, net of tax(2)
|
|
3
|
|
|
|
N/A
|
|
|
|
-
|
|
|
|
-
|
|
|
Loss on disposition
of businesses/assets
|
|
1
|
|
|
|
-
|
|
|
|
1
|
|
|
|
-
|
|
|
Certain legal
settlements and related expenses
|
|
1
|
|
|
|
-
|
|
|
|
1
|
|
|
|
-
|
|
|
Net plant incident
remediation costs
|
|
1
|
|
|
|
-
|
|
|
|
1
|
|
|
|
-
|
|
|
Amortization of
pension and postretirement actuarial losses
|
|
18
|
|
|
|
(3)
|
|
|
|
15
|
|
|
|
0.06
|
|
|
Restructuring,
impairment, plant closing and transition costs
|
|
83
|
|
|
|
3
|
|
|
|
86
|
|
|
|
0.36
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted(1)
|
|
$ 240
|
|
|
|
$ 33
|
|
|
|
$ 124
|
|
|
|
$ 0.51
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted income tax
benefit
|
|
|
|
|
|
|
|
|
|
(33)
|
|
|
|
|
|
|
Net income
attributable to noncontrolling interests, net of tax
|
|
|
|
|
|
|
|
|
|
5
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted pre-tax
income(1)
|
|
|
|
|
|
|
|
|
|
$ 96
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted effective
tax rate
|
|
|
|
|
|
|
|
|
|
-34%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
See end of press
release for footnote explanations
|
Table 5 –
Reconciliation of Net Income to EBITDA
|
|
|
|
|
|
Three months
ended
|
|
|
March
31,
|
|
December
31,
|
In millions,
unaudited
|
|
2016
|
|
2015
|
|
2015
|
|
|
|
|
|
|
|
Net income
attributable to Huntsman Corporation
|
|
$ 56
|
|
$ 5
|
|
$
4
|
Interest
expense
|
|
50
|
|
56
|
|
47
|
Income tax expense
(benefit) from continuing operations
|
|
27
|
|
2
|
|
(39)
|
Income tax (benefit)
expense from discontinued operations(3)
|
(1)
|
|
1
|
|
(3)
|
Depreciation and
amortization
|
|
100
|
|
95
|
|
102
|
|
|
|
|
|
|
|
EBITDA(1)
|
|
$232
|
|
$159
|
|
$
111
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
See end of press
release for footnote explanations
|
Table 6 – Selected
Balance Sheet Items
|
|
|
|
|
|
|
|
March
31,
|
|
December
31,
|
In
millions
|
|
2016
|
|
2015
|
|
|
(unaudited)
|
|
|
|
|
|
|
|
Cash
|
|
$ 218
|
|
$
269
|
Accounts and notes
receivable, net
|
|
1,572
|
|
1,449
|
Inventories
|
|
1,689
|
|
1,692
|
Other current
assets
|
|
351
|
|
424
|
Property, plant and
equipment, net
|
|
4,437
|
|
4,446
|
Other
assets
|
|
1,573
|
|
1,540
|
|
|
|
|
|
Total
assets
|
|
$ 9,840
|
|
$
9,820
|
|
|
|
|
|
Accounts
payable
|
|
$ 1,027
|
|
$
1,061
|
Other current
liabilities
|
|
652
|
|
686
|
Current portion of
debt
|
|
103
|
|
170
|
Long-term
debt
|
|
4,724
|
|
4,625
|
Other
liabilities
|
|
1,649
|
|
1,649
|
Total
equity
|
|
1,685
|
|
1,629
|
|
|
|
|
|
Total liabilities
and equity
|
|
$ 9,840
|
|
$
9,820
|
Table 7 –
Outstanding Debt
|
|
|
|
|
|
|
|
March
31,
|
|
December
31,
|
In
millions
|
|
2016
|
|
2015
|
|
|
(unaudited)
|
|
|
|
|
|
|
|
Debt:
|
|
|
|
|
Senior credit
facilities
|
|
$ 2,441
|
|
$
2,454
|
Accounts receivable
programs
|
|
263
|
|
215
|
Senior
notes
|
|
1,872
|
|
1,850
|
Variable interest
entities
|
|
140
|
|
151
|
Other debt
|
|
111
|
|
125
|
|
|
|
|
|
Total debt -
excluding affiliates
|
|
4,827
|
|
4,795
|
|
|
|
|
|
Total cash
|
|
218
|
|
269
|
|
|
|
|
|
Net debt-
excluding affiliates
|
|
$ 4,609
|
|
$
4,526
|
Table 8 –
Summarized Statement of Cash Flows
|
|
|
|
|
|
Three months
ended
|
|
|
March
31,
|
In millions,
unaudited
|
|
2016
|
|
2015
|
|
|
|
|
|
Total cash at
beginning of period(a)
|
|
$ 269
|
|
$
870
|
|
|
|
|
|
Net cash provided by
operating activities
|
|
88
|
|
34
|
Net cash used in
investing activities
|
|
(101)
|
|
(81)
|
Net cash (used in)
provided by financing activities
|
|
(38)
|
|
189
|
Effect of exchange
rate changes on cash
|
|
2
|
|
(8)
|
Change in restricted
cash
|
|
(2)
|
|
(1)
|
|
|
-
|
|
|
Total cash at end
of period(a)
|
|
$ 218
|
|
$
1,003
|
|
|
|
|
|
Supplemental cash
flow information:
|
|
|
|
|
Cash paid for
interest
|
|
$ (35)
|
|
$
(48)
|
Cash paid for income
taxes
|
|
(5)
|
|
(11)
|
Cash paid for capital
expenditures
|
|
(99)
|
|
(149)
|
Depreciation and
amortization
|
|
100
|
|
95
|
|
|
|
|
|
Changes in primary
working capital:
|
|
|
|
|
Accounts and notes
receivable
|
|
$(105)
|
|
$
(49)
|
Inventories
|
|
22
|
|
54
|
Accounts
payable
|
|
(31)
|
|
(2)
|
|
|
|
|
|
Total cash provided
by primary working capital
|
|
$(114)
|
|
$
3
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months
ended
|
|
|
March
31,
|
|
|
2016
|
|
2015
|
Free
cashflow:
|
|
|
|
|
Adjusted
EBITDA
|
|
$ 274
|
|
$
285
|
Capital
expenditures
|
|
(99)
|
|
(149)
|
Interest
|
|
(35)
|
|
(48)
|
Income
taxes
|
|
(5)
|
|
(11)
|
Primary working
capital change
|
|
(114)
|
|
3
|
Restructuring
|
|
(20)
|
|
(27)
|
Pensions
|
|
(20)
|
|
(33)
|
Maintenance &
other
|
|
6
|
|
(67)
|
|
|
|
|
|
Total free cash
flow
|
|
$ (13)
|
|
$
(47)
|
|
|
|
|
|
|
|
|
|
|
(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, adjusted
EBITDA and adjusted net income (loss), as used herein, are 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) EBITDA from discontinued operations; (c) loss
(gain) on disposition of businesses/assets; (d) loss on early
extinguishment of debt; (e) certain legal settlements and related
expenses; (f) net plant incident remediation costs; (g)
amortization of pension and postretirement actuarial losses
(gains); and (h) restructuring, impairment, plant closing and
transition costs (credits). The reconciliation of adjusted
EBITDA to EBITDA is set forth in Table 4 above.
|
|
|
|
Adjusted net income
(loss) is computed by eliminating the after tax impact of the
following items from net income (loss) attributable to Huntsman
Corporation: (a) acquisition and integration expenses, purchase
accounting adjustments; (b) impact of certain foreign tax credit
elections; (c) loss (income) from discontinued operations; (d)
discount amortization on settlement financing associated with the
terminated merger; (d) loss (gain) on disposition of
businesses/assets; (e) loss on early extinguishment of debt; (f)
certain legal settlements and related expenses; (g) net plant
incident remediation costs; (h) amortization of pension and
postretirement actuarial losses (gains); and (i) restructuring,
impairment, plant closing and transition costs (credits).
We do not adjust for changes in tax valuation allowances
because we do not believe it provides more meaningful information
than is provided under GAAP. The reconciliation of adjusted
net income (loss) to net income (loss) attributable to Huntsman
Corporation common stockholders is set forth in Table 4
above.
|
|
|
(2)
|
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 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-first-quarter-results-reports-strong-adjusted-ebitda-improvement-compared-to-prior-quarter-300259060.html
SOURCE Huntsman Corporation