HUN Huntsman Corporation

Three months ended

Nine months ended

September 30,

September 30,

In millions, except per share amounts

2024

2023

2024

2023

Revenues

$     1,540

$     1,506

$     4,584

$     4,708

Net (loss) income attributable to Huntsman Corporation

$        (33)

$          -

$        (48)

$        172

Adjusted net income⁽¹⁾

$          17

$          27

$          30

$        103

Diluted (loss) income per share

$      (0.19)

$          -

$      (0.28)

$       0.95

Adjusted diluted income per share⁽¹⁾

$       0.10

$       0.15

$       0.17

$       0.57

Adjusted EBITDA⁽¹⁾

$        131

$        136

$        343

$        428

Net cash provided by operating activities from continuing operations

$        134

$        167

$        126

$          85

Free cash flow from continuing operations⁽²⁾

$          93

$        117

$          (7)

$        (62)

See end of press release for footnote explanations and reconciliations of non-GAAP measures.

Table 1 – Results of Operations

Three months ended

Nine months ended

September 30,

September 30,

In millions, except per share amounts

2024

2023

2024

2023

Revenues

$     1,540

$     1,506

$     4,584

$     4,708

Cost of goods sold

1,306

1,275

3,906

3,954

Gross profit

234

231

678

754

Operating expenses, net

187

198

600

609

Restructuring, impairment and plant closing costs

5

6

20

7

Gain on acquisition of assets, net

-

-

(51)

-

Prepaid asset write-off

-

-

71

-

Operating income

42

27

38

138

Interest expense, net

(21)

(15)

(60)

(48)

Equity in income of investment in unconsolidated affiliates

5

30

42

70

Other income (expense), net

8

-

22

(2)

Income from continuing operations before income taxes

34

42

42

158

Income tax expense

(39)

(27)

(32)

(66)

(Loss) income from continuing operations

(5)

15

10

92

(Loss) income from discontinued operations, net of tax⁽³⁾

(12)

-

(12)

120

Net (loss) income

(17)

15

(2)

212

Net income attributable to noncontrolling interests

(16)

(15)

(46)

(40)

Net (loss) income attributable to Huntsman Corporation

$        (33)

$             -

$        (48)

$        172

Adjusted EBITDA⁽¹⁾

$        131

$        136

$        343

$        428

Adjusted net income ⁽¹⁾

$          17

$          27

$          30

$        103

Basic (loss) income per share

$      (0.19)

$             -

$      (0.28)

$       0.96

Diluted (loss) income per share

$      (0.19)

$             -

$      (0.28)

$       0.95

Adjusted diluted income per share⁽¹⁾

$       0.10

$       0.15

$       0.17

$       0.57

Common share information:

Basic weighted average shares

172

176

172

179

Diluted weighted average shares

172

177

172

181

Diluted shares for adjusted diluted income per share

173

177

173

181

See end of press release for footnote explanations.

Table 2 – Results of Operations by Segment

Three months ended

Nine months ended

September 30,

Better /

September 30,

(Worse) /

In millions

2024

2023

(Worse)

2024

2023

Better

Segment Revenues:

Polyurethanes

$     1,003

$        967

4 %

$     2,930

$     2,970

(1 %)

Performance Products

280

277

1 %

870

918

(5 %)

Advanced Materials

261

268

(3 %)

801

841

(5 %)

Total Reportable Segments' Revenues

1,544

1,512

2 %

4,601

4,729

(3 %)

Intersegment Eliminations

(4)

(6)

n/m

(17)

(21)

n/m

Total Revenues

$     1,540

$     1,506

2 %

$     4,584

$     4,708

(3 %)

Segment Adjusted EBITDA⁽¹⁾:

Polyurethanes

$          76

$          81

(6 %)

$        195

$        235

(17 %)

Performance Products

42

47

(11 %)

130

173

(25 %)

Advanced Materials

47

49

(4 %)

142

148

(4 %)

Total Reportable Segments' Adjusted EBITDA⁽¹⁾

165

177

(7 %)

467

556

(16 %)

Corporate, LIFO and other

(34)

(41)

17 %

(124)

(128)

3 %

Total Adjusted EBITDA⁽¹⁾

$        131

$        136

(4 %)

$        343

$        428

(20 %)

n/m = not meaningful

See end of press release for footnote explanations.

Table 3 – Factors Impacting Sales Revenue

Three months ended

September 30, 2024 vs. 2023

Average Selling Price^(a)

Local

Exchange

Sales

Currency & Mix

Rate

Volume^(b)

Total

Polyurethanes

(1 %)

0 %

5 %

4 %

Performance Products

(3 %)

0 %

4 %

1 %

Advanced Materials

(7 %)

(1 %)

5 %

(3 %)

Nine months ended

September 30, 2024 vs. 2023

Average Selling Price^(a)

Local

Exchange

Sales

Currency & Mix

Rate

Volume^(b)

Total

Polyurethanes

(9 %)

0 %

8 %

(1 %)

Performance Products

(10 %)

0 %

5 %

(5 %)

Advanced Materials

(9 %)

0 %

4 %

(5 %)

(a) Excludes sales from tolling arrangements, by-products and raw materials.

(b) Excludes sales from by-products and raw materials.

Table 4 – Reconciliation of U.S. GAAP to Non-GAAP Measures

 Income Tax 

 Net (Loss) 

 Diluted (Loss) Income 

 EBITDA 

Expense

 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

2024

2023

2024

2023

2024

2023

2024

2023

Net (loss) income

$         (17)

$          15

$         (17)

$          15

$      (0.10)

$       0.08

Net income attributable to noncontrolling interests

(16)

(15)

(16)

(15)

(0.09)

(0.08)

Net loss attributable to Huntsman Corporation

(33)

-

(33)

-

(0.19)

-

Interest expense, net from continuing operations

21

15

Income tax expense from continuing operations

39

27

$         (39)

$         (27)

Income tax benefit from discontinued operations⁽³⁾

-

(2)

Depreciation and amortization from continuing operations

70

69

Business acquisition and integration expenses and purchase accounting inventory adjustments

-

-

1

1

1

1

0.01

0.01

Income tax settlement related to U.S. Tax Reform Act

-

-

5

-

5

-

0.03

-

EBITDA / Loss from discontinued operations⁽³⁾

12

2

 N/A 

 N/A 

12

-

0.07

-

Loss on sale of business/assets

1

-

3

-

4

-

0.02

-

Fair value adjustments to Venator investment, net

(5)

-

-

-

(5)

-

(0.03)

-

Certain legal and other settlements and related expenses⁽⁶⁾

11

2

2

-

13

2

0.08

0.01

Certain non-recurring information technology project implementation costs

-

2

-

1

-

3

-

0.02

Amortization of pension and postretirement actuarial losses

9

10

2

-

11

10

0.06

0.06

Restructuring, impairment and plant closing and transition costs

6

11

3

-

9

11

0.05

0.06

Adjusted⁽¹⁾

$        131

$        136

$         (23)

$         (25)

17

27

$       0.10

$       0.15

Adjusted income tax expense⁽¹⁾

23

25

Net income attributable to noncontrolling interests

16

15

Adjusted pre-tax income ⁽¹⁾

$          56

$          67

Adjusted effective tax rate⁽⁴⁾

41 %

37 %

Effective tax rate

115 %

64 %

 Income Tax 

 Diluted (Loss) Income 

 EBITDA 

Expense

 Net (Loss) Income 

 Per Share 

Nine months ended

Nine months ended

Nine months ended

Nine months ended

September 30,

September 30,

September 30,

September 30,

In millions, except per share amounts

2024

2023

2024

2023

2024

2023

2024

2023

Net (loss) income

$           (2)

$        212

$           (2)

$        212

$      (0.01)

$       1.17

Net income attributable to noncontrolling interests

(46)

(40)

(46)

(40)

(0.27)

(0.22)

Net (loss) income attributable to Huntsman Corporation

(48)

172

(48)

172

(0.28)

0.95

Interest expense, net from continuing operations

60

48

Income tax expense from continuing operations

32

66

$         (32)

$         (66)

Income tax (benefit) expense from discontinued operations⁽³⁾

(8)

14

Depreciation and amortization from continuing operations

214

208

Business acquisition and integration expenses and purchase accounting inventory adjustments

21

3

(16)

-

5

3

0.03

0.02

Income tax settlement related to U.S. Tax Reform Act

-

-

5

-

5

-

0.03

-

EBITDA / Loss (income) from discontinued operations⁽³⁾

20

(134)

N/A

N/A

12

(120)

0.07

(0.66)

Loss (gain) on sale of business/assets

1

(1)

3

-

4

(1)

0.02

(0.01)

Fair value adjustments to Venator investment, net

(12)

5

2

-

(10)

5

(0.06)

0.03

Certain legal and other settlements and related expenses⁽⁶⁾

13

4

1

-

14

4

0.08

0.02

Certain non-recurring information technology project implementation costs

-

5

-

-

-

5

-

0.03

Amortization of pension and postretirement actuarial losses

25

25

1

(2)

26

23

0.15

0.13

Restructuring, impairment and plant closing and transition costs

25

13

(3)

(1)

22

12

0.13

0.07

Adjusted⁽¹⁾

$        343

$        428

$         (39)

$         (69)

30

103

$       0.17

$       0.57

Adjusted income tax expense⁽¹⁾

39

69

Net income attributable to noncontrolling interests

46

40

Adjusted pre-tax income⁽¹⁾

$        115

$        212

Adjusted effective tax rate⁽⁴⁾

34 %

33 %

Effective tax rate

76 %

42 %

N/A = not applicable

See end of press release for footnote explanations.

Table 5 – Balance Sheets

September 30,

December 31,

In millions

2024

2023

Cash

$               330

$               540

Accounts and notes receivable, net

829

753

Inventories

1,004

867

Other current assets

130

154

Property, plant and equipment, net

2,580

2,376

Other noncurrent assets

2,461

2,558

Total assets

$            7,334

$            7,248

Accounts payable

$               745

$               719

Other current liabilities

469

441

Current portion of debt

346

12

Long-term debt

1,513

1,676

Other noncurrent liabilities

916

922

Huntsman Corporation stockholders' equity

3,112

3,251

Noncontrolling interests in subsidiaries

233

227

Total liabilities and equity

$            7,334

$            7,248

Table 6 – Outstanding Debt

September 30,

December 31,

In millions

2024

2023

Debt:

Revolving credit facility

$                  -

$                  -

Senior notes

1,820

1,471

Accounts receivable programs

-

169

Variable interest entities

19

26

Other debt

20

22

Total debt - excluding affiliates

1,859

1,688

Total cash

330

540

Net debt - excluding affiliates⁽⁵⁾

$            1,529

$            1,148

See end of press release for footnote explanations.

Table 7 – Summarized Statements of Cash Flows                 

Three months ended

Nine months ended

September 30,

September 30,

In millions

2024

2023

2024

2023

Total cash at beginning of period

$            335

$            502

$            540

$            654

Net cash provided by operating activities from continuing operations

134

167

126

85

Net cash used in operating activities from discontinued operations⁽³⁾

(5)

(4)

(16)

(40)

Net cash (used in) provided by investing activities from continuing operations

(7)

(49)

(87)

395

Net cash used in investing activities from discontinued operations⁽³⁾

-

-

-

(4)

Net cash used in financing activities

(129)

(117)

(231)

(581)

Effect of exchange rate changes on cash

2

(3)

(2)

(13)

Total cash at end of period

$            330

$            496

$            330

$            496

Free cash flow from continuing operations⁽²⁾:

Net cash provided by operating activities from continuing operations

$            134

$            167

$            126

$              85

Capital expenditures

(41)

(50)

(133)

(147)

Free cash flow from continuing operations⁽²⁾

$              93

$            117

$              (7)

$             (62)

Supplemental cash flow information:

Cash paid for interest

$             (14)

$              (9)

$             (55)

$             (43)

Cash paid for income taxes

(16)

(20)

(60)

(82)

Cash paid for restructuring and integration

(3)

(13)

(26)

(51)

Cash paid for pensions

(9)

(21)

(26)

(41)

Depreciation and amortization from continuing operations

70

69

214

208

Change in primary working capital:

Accounts and notes receivable

$              58

$              17

$             (72)

$              17

Inventories

(66)

56

(137)

33

Accounts payable

(1)

(11)

21

(209)

Total change in primary working capital

$              (9)

$              62

$           (188)

$           (159)

See end of press release for footnote explanations.

(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 (loss) 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 (loss).  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 interests; (b) interest expense, net; (c) income taxes; (d) depreciation and amortization; (e) amortization of pension and postretirement actuarial losses; (f) restructuring, impairment and plant closing and transition costs; and further adjusted for certain other items set forth in the reconciliation of net income (loss) to adjusted EBITDA 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 interests; (b) amortization of pension and postretirement actuarial losses; (c) restructuring, impairment and plant closing and transition costs; and further adjusted for certain other items set forth in the reconciliation of net income (loss) to adjusted net income (loss) in Table 4 above.  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 may disclose forward-looking adjusted EBITDA because we cannot adequately forecast certain items and events that may or may not impact us in the near future, such as business acquisition and integration expenses and purchase accounting inventory adjustments, net, certain legal and other settlements and related expenses, gains on sale of businesses/assets and certain tax only items, including tax law changes not yet enacted. Each of such adjustment has not yet occurred, is out of our control and/or cannot be reasonably predicted. In our view, our forward-looking adjusted EBITDA represents the forecast net income on our underlying business operations but does not reflect any adjustments related to the items noted above that may occur and can cause our adjusted EBITDA to differ.

(2)

Management internally uses free cash flow measure: (a) to evaluate our liquidity, (b) evaluate strategic investments, (c) plan stock buyback and dividend levels and (d) evaluate our ability to incur and service debt. Free cash flow is defined as net cash provided by operating activities less capital expenditures. 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.

(3)

During the first quarter 2023, we completed the divestiture of our Textile Effects business, which is reported as discontinued operations on the income and cash flow statements.

(4)

We believe the adjusted effective tax rate provides improved comparability between periods through the exclusion of certain items that management believes are not indicative of the businesses' operational profitability and that may obscure underlying business results and trends. In our view, effective tax rate is the performance measure calculated and presented in accordance with U.S. GAAP that is most directly comparable to adjusted effective tax rate. The reconciliation of historical adjusted effective tax rate and effective tax rate is set forth in Table 4 above. Please see the reconciliation of our net income to adjusted net income in Table 4 for details regarding the tax impacts of our non-GAAP adjustments.

Our forward-looking adjusted effective tax rate is calculated based on our forecast effective tax rate, and the range of our forward-looking adjusted effective tax rate equals the range of our forecast effective tax rate. We disclose forward-looking adjusted effective tax rate because we cannot adequately forecast certain items and events that may or may not impact us in the near future, such as business acquisition and integration expenses and purchase accounting inventory adjustments, certain legal and other settlements and related expenses, gains on sale of businesses/assets and certain tax only items, including tax law changes not yet enacted. Each of such adjustment has not yet occurred, is out of our control and/or cannot be reasonably predicted. In our view, our forward-looking adjusted effective tax rate represents the forecast effective tax rate on our underlying business operations but does not reflect any adjustments related to the items noted above that may occur and can cause our effective tax rate to differ.

(5)

Net debt is a measure we use to monitor how much debt we have after taking into account our total cash. We use it as an indicator of our overall financial position, and calculate it by taking our total debt, including the current portion, and subtracting total cash.

(6)

Certain legal and other settlements and related expenses for the three and nine months ended September 30, 2024 includes approximately $10 million related to the settlement of a claim in connection with a commercial dispute.