Second Quarter Highlights
- Second quarter 2023 net income attributable to Huntsman of
$19 million compared to $228 million in the prior year period; second
quarter 2023 diluted earnings per share of $0.11 compared to $1.10 in the prior year period.
- Second quarter 2023 adjusted net income attributable to
Huntsman of $39 million compared to
$250 million in the prior year
period; second quarter 2023 adjusted diluted earnings per share of
$0.22 compared to $1.21 in the prior year period.
- Second quarter 2023 adjusted EBITDA of $156 million compared to $410 million in the prior year period.
- Second quarter 2023 net cash provided by operating activities
from continuing operations was $40
million. Free cash flow from continuing operations was a use
of cash of $11 million for the second
quarter 2023 compared to a source of cash of $178 million in the prior year period.
- Repurchased approximately 3.8 million shares for approximately
$98 million in the second quarter
2023.
|
|
|
|
|
|
|
|
|
|
|
Three months ended
|
|
Six months ended
|
|
|
June 30,
|
|
June 30,
|
In millions, except per
share amounts
|
|
2023
|
|
2022
|
|
2023
|
|
2022
|
|
|
|
|
|
|
|
|
|
Revenues
|
|
$ 1,596
|
|
$ 2,170
|
|
$ 3,202
|
|
$ 4,362
|
|
|
|
|
|
|
|
|
|
Net income attributable
to Huntsman Corporation
|
|
$
19
|
|
$ 228
|
|
$ 172
|
|
$ 451
|
Adjusted net income
(1)
|
|
$
39
|
|
$ 250
|
|
$
76
|
|
$ 487
|
|
|
|
|
|
|
|
|
|
Diluted income per
share
|
|
$ 0.11
|
|
$ 1.10
|
|
$ 0.94
|
|
$ 2.14
|
Adjusted diluted income
per share(1)
|
|
$ 0.22
|
|
$ 1.21
|
|
$ 0.42
|
|
$ 2.31
|
|
|
|
|
|
|
|
|
|
Adjusted
EBITDA(1)
|
|
$ 156
|
|
$ 410
|
|
$ 292
|
|
$ 797
|
|
|
|
|
|
|
|
|
|
Net cash provided by
(used in) operating activities from continuing
operations
|
|
$
40
|
|
$ 243
|
|
$
(82)
|
|
$ 310
|
Free cash flow from
continuing operations(2)
|
|
$
(11)
|
|
$ 178
|
|
$ (179)
|
|
$ 181
|
|
|
|
|
|
|
|
|
|
See end of press release for footnote explanations
and reconciliations of non-GAAP measures.
|
|
|
|
|
|
|
|
THE
WOODLANDS, Texas, July 31,
2023 /PRNewswire/ -- Huntsman Corporation (NYSE:
HUN) today reported second quarter 2023 results with revenues of
$1,596 million, net income
attributable to Huntsman of $19
million, adjusted net income attributable to Huntsman of
$39 million and adjusted EBITDA of
$156 million.
Peter R. Huntsman, Chairman,
President, and CEO, commented:
"During the quarter, business activity in each of our core
regions remained under pressure, although we did see demand
fundamentals in many of our core markets stabilize, albeit at a
lower level than the prior year. We continued to drive efficiencies
in our cost structure which will ensure we are well positioned to
improve profitability once demand returns to a more normalized
level. We remain positive on the long-term trends and value we will
capture in energy efficiency and lightweighting in the
construction, transportation, and industrial markets. Over the past
several years we have made a significant effort to reduce leverage
and drive capital discipline. The output of this effort is now
allowing us to return significant amounts of capital to
shareholders during a year which for the chemical industry may end
up being just as, if not more, challenging than the pandemic year
2020. Our financial strength is also allowing us to evaluate both
organic and in-organic investment opportunities to strengthen our
Company for the long-term, however, we will continue to be
disciplined with our available capital and protect our investment
grade rating."
Segment Analysis for 2Q23 Compared to 2Q22
Polyurethanes
The decrease in revenues in our Polyurethanes segment for the
three months ended June 30, 2023
compared to the same period of 2022 was primarily due to lower
sales volumes, lower MDI average selling prices and the negative
impact of foreign currency exchange rate movements against the U.S
dollar. Sales volumes decreased primarily due to lower demand,
primarily in the Americas. MDI average selling prices decreased
primarily due to less favorable supply and demand
dynamics. The decrease in segment adjusted EBITDA was
primarily due to lower sales volumes, lower MDI margins, the
negative impact of foreign currency exchange rate movements against
the U.S. dollar and a gain from an insurance settlement received in
the second quarter of 2022, partially offset by higher equity
earnings from our minority-owned joint venture in China and cost savings achieved from our cost
optimization programs.
Performance Products
The decrease in revenues in our Performance Products segment for
the three months ended June 30, 2023
compared to the same period of 2022 was primarily due to lower
sales volumes and reduced average selling prices, partially offset
by improved sales mix. Sales volumes decreased in all regions
primarily due to slowing construction activity, and reduced demand
in coatings and adhesives, lubes and other industrial markets. The
decrease in segment adjusted EBITDA was primarily due to decreased
sales volumes and lower average selling prices.
Advanced Materials
The decrease in revenues in our Advanced Materials segment for
the three months ended June 30, 2023
compared to the same period of 2022 was primarily due to lower
sales volumes, partially offset by higher average selling
prices. Sales volumes decreased primarily due to reduced
customer demand in our infrastructure markets and the deselection
of lower margin business. Average selling prices increased largely
due to improved sales mix. The decrease in segment adjusted EBITDA
was primarily due to lower sales volumes.
Corporate, LIFO and other
For the three months ended June 30,
2023, adjusted EBITDA from Corporate and other was a loss of
$38 million, which remained the same
as a loss of $38 million for the same
period of 2022.
Liquidity and Capital Resources
During the three months ended June 30,
2023, our free cash flow from continuing operations was a
use of cash of $11 million as
compared to a source of cash of $178
million in the same period of 2022. As of June 30, 2023, we had approximately $1.9 billion of combined cash and unused
borrowing capacity.
During the three months ended June 30,
2023, we spent $51 million on
capital expenditures from continuing operations as compared to
$65 million in the same period of
2022. During 2023, we expect to spend between $230 million to $250
million on capital expenditures.
Income Taxes
In the second quarter of 2023, our effective tax rate was 46%
and our adjusted effective tax rate was 39%. We expect our 2023
adjusted effective tax rate to be approximately 26% to 29%. We
expect our long-term adjusted effective tax rate to be
approximately 22% to 24%. Our second quarter 2023 tax expense was
negatively impacted by an $8 million
non-cash valuation allowance increase.
Earnings Conference Call Information
We will hold a conference call to discuss our second quarter
2023 financial results on Tuesday, August 1,
2023, at 10:00 a.m. ET.
Webcast link:
https://event.choruscall.com/mediaframe/webcast.html?webcastid=dGLJi95S
Participant dial-in numbers:
Domestic
callers:
(877) 402-8037
International callers:
(201) 378-4913
The conference call will be accompanied by presentation slides
that will be accessible via the webcast link and Huntsman's
investor relations website, www.huntsman.com/investors. Upon
conclusion of the call, the webcast replay will be accessible via
Huntsman's website.
Upcoming Conferences
During the third quarter 2023, a
member of management is expected to present at:
UBS Chemical Conference on September 6,
2023
Jefferies Industrials Conference on September 7, 2023
A webcast of the presentation, if applicable, along with
accompanying materials will be available at
www.huntsman.com/investors.
Table 1 – Results of
Operations
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended
|
|
Six months ended
|
|
|
June 30,
|
|
June 30,
|
In millions, except per
share amounts
|
|
2023
|
|
2022
|
|
2023
|
|
2022
|
|
|
|
|
|
|
|
|
|
Revenues
|
|
$ 1,596
|
|
$ 2,170
|
|
$ 3,202
|
|
$ 4,362
|
Cost of goods
sold
|
|
1,342
|
|
1,678
|
|
2,679
|
|
3,355
|
Gross profit
|
|
254
|
|
492
|
|
523
|
|
1,007
|
Operating expenses,
net
|
|
196
|
|
190
|
|
411
|
|
422
|
Restructuring,
impairment and plant closing costs
|
|
8
|
|
24
|
|
1
|
|
24
|
Operating income
|
|
50
|
|
278
|
|
111
|
|
561
|
Interest expense,
net
|
|
(15)
|
|
(16)
|
|
(33)
|
|
(30)
|
Equity in income of
investment in unconsolidated affiliates
|
|
28
|
|
19
|
|
40
|
|
34
|
Other (expense) income,
net
|
|
(2)
|
|
13
|
|
(2)
|
|
11
|
Income from continuing operations before income
taxes
|
|
61
|
|
294
|
|
116
|
|
576
|
Income tax
expense
|
|
(28)
|
|
(65)
|
|
(39)
|
|
(125)
|
Income from continuing
operations
|
|
33
|
|
229
|
|
77
|
|
451
|
(Loss) income from
discontinued operations, net of tax(3)
|
|
(2)
|
|
13
|
|
120
|
|
31
|
Net income
|
|
31
|
|
242
|
|
197
|
|
482
|
Net income attributable
to noncontrolling interests
|
|
(12)
|
|
(14)
|
|
(25)
|
|
(31)
|
Net income attributable to Huntsman
Corporation
|
|
$
19
|
|
$ 228
|
|
$ 172
|
|
$ 451
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA(1)
|
|
$ 156
|
|
$ 410
|
|
$ 292
|
|
$ 797
|
Adjusted net income
(1)
|
|
$
39
|
|
$ 250
|
|
$
76
|
|
$ 487
|
|
|
|
|
|
|
|
|
|
Basic income per share
|
|
$ 0.11
|
|
$ 1.11
|
|
$ 0.95
|
|
$ 2.16
|
Diluted income per share
|
|
$ 0.11
|
|
$ 1.10
|
|
$ 0.94
|
|
$ 2.14
|
Adjusted diluted income per
share(1)
|
|
$ 0.22
|
|
$ 1.21
|
|
$ 0.42
|
|
$ 2.31
|
|
|
|
|
|
|
|
|
|
Common share information:
|
|
|
|
|
|
|
|
|
Basic weighted average
shares
|
|
179
|
|
205
|
|
181
|
|
209
|
Diluted weighted
average shares
|
|
180
|
|
207
|
|
182
|
|
211
|
Diluted shares for
adjusted diluted income per share
|
|
180
|
|
207
|
|
182
|
|
211
|
|
|
|
|
|
|
|
|
|
See end of press release for footnote
explanations.
|
|
|
|
|
|
|
|
|
Table 2 – Results of
Operations by Segment
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended
|
|
|
|
Six months ended
|
|
|
|
|
June 30,
|
|
Better /
|
|
June 30,
|
|
Better /
|
In millions
|
|
2023
|
|
2022
|
|
(Worse)
|
|
2023
|
|
2022
|
|
(Worse)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Segment Revenues:
|
|
|
|
|
|
|
|
|
|
|
|
|
Polyurethanes
|
|
$ 1,012
|
|
$ 1,353
|
|
(25 %)
|
|
$ 2,003
|
|
$ 2,739
|
|
(27 %)
|
Performance
Products
|
|
307
|
|
492
|
|
(38 %)
|
|
641
|
|
972
|
|
(34 %)
|
Advanced
Materials
|
|
284
|
|
336
|
|
(15 %)
|
|
573
|
|
671
|
|
(15 %)
|
Total Reportable Segments'
Revenues
|
|
1,603
|
|
2,181
|
|
(27 %)
|
|
3,217
|
|
4,382
|
|
(27 %)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Intersegment
Eliminations
|
|
(7)
|
|
(11)
|
|
n/m
|
|
(15)
|
|
(20)
|
|
n/m
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Revenues
|
|
$ 1,596
|
|
$ 2,170
|
|
(26 %)
|
|
$ 3,202
|
|
$ 4,362
|
|
(27 %)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Segment Adjusted
EBITDA(1):
|
|
|
|
|
|
|
|
|
|
|
|
|
Polyurethanes
|
|
$
88
|
|
$ 229
|
|
(62 %)
|
|
$ 154
|
|
$ 453
|
|
(66 %)
|
Performance
Products
|
|
55
|
|
152
|
|
(64 %)
|
|
126
|
|
298
|
|
(58 %)
|
Advanced
Materials
|
|
51
|
|
67
|
|
(24 %)
|
|
99
|
|
134
|
|
(26 %)
|
Total Reportable Segments' Adjusted
EBITDA(1)
|
|
194
|
|
448
|
|
(57 %)
|
|
379
|
|
885
|
|
(57 %)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Corporate, LIFO and
other
|
|
(38)
|
|
(38)
|
|
0 %
|
|
(87)
|
|
(88)
|
|
1 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Adjusted
EBITDA(1)
|
|
$ 156
|
|
$ 410
|
|
(62 %)
|
|
$ 292
|
|
$ 797
|
|
(63 %)
|
n/m = not meaningful
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
See end of press release for footnote
explanations.
|
|
|
|
|
|
|
|
|
|
|
|
|
Table 3 – Factors
Impacting Sales Revenue
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended
|
|
|
June 30, 2023 vs. 2022
|
|
|
Average Selling
Price(a)
|
|
|
|
|
|
|
|
|
Local
|
|
Exchange
|
|
Sales
|
|
Sales Mix
|
|
|
|
|
Currency
|
|
Rate
|
|
Volume(b)
|
|
& Other
|
|
Total
|
|
|
|
|
|
|
|
|
|
|
|
Polyurethanes
|
|
(10 %)
|
|
(1 %)
|
|
(10 %)
|
|
(4 %)
|
|
(25 %)
|
|
|
|
|
|
|
|
|
|
|
|
Performance
Products
|
|
(8 %)
|
|
0 %
|
|
(31 %)
|
|
1 %
|
|
(38 %)
|
|
|
|
|
|
|
|
|
|
|
|
Advanced
Materials
|
|
1 %
|
|
(1 %)
|
|
(19 %)
|
|
4 %
|
|
(15 %)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Six months ended
|
|
|
June 30, 2023 vs. 2022
|
|
|
Average Selling
Price(a)
|
|
|
|
|
|
|
|
|
Local
|
|
Exchange
|
|
Sales
|
|
Sales Mix
|
|
|
|
|
Currency
|
|
Rate
|
|
Volume(b)
|
|
& Other
|
|
Total
|
|
|
|
|
|
|
|
|
|
|
|
Polyurethanes
|
|
(6 %)
|
|
(2 %)
|
|
(16 %)
|
|
(3 %)
|
|
(27 %)
|
|
|
|
|
|
|
|
|
|
|
|
Performance
Products
|
|
(4 %)
|
|
0 %
|
|
(31 %)
|
|
1 %
|
|
(34 %)
|
|
|
|
|
|
|
|
|
|
|
|
Advanced
Materials
|
|
3 %
|
|
(2 %)
|
|
(20 %)
|
|
4 %
|
|
(15 %)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(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
|
|
|
|
|
|
Diluted Income
|
|
|
EBITDA
|
|
Expense
|
|
Net Income
|
|
Per Share
|
|
|
Three months ended
|
|
Three months ended
|
|
Three months ended
|
|
Three months ended
|
|
|
June 30,
|
|
June 30,
|
|
June 30,
|
|
June 30,
|
In millions, except per
share amounts
|
|
2023
|
|
2022
|
|
2023
|
|
2022
|
|
2023
|
|
2022
|
|
2023
|
|
2022
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
|
|
$
31
|
|
$
242
|
|
|
|
|
|
$
31
|
|
$
242
|
|
$ 0.18
|
|
$ 1.17
|
Net income
attributable to noncontrolling interests
|
|
(12)
|
|
(14)
|
|
|
|
|
|
(12)
|
|
(14)
|
|
(0.07)
|
|
(0.07)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income attributable to Huntsman
Corporation
|
|
19
|
|
228
|
|
|
|
|
|
19
|
|
228
|
|
0.11
|
|
1.10
|
Interest expense, net
from continuing operations
|
|
15
|
|
16
|
|
|
|
|
|
|
|
|
|
|
|
|
Income tax expense
from continuing operations
|
|
28
|
|
65
|
|
$
(28)
|
|
$
(65)
|
|
|
|
|
|
|
|
|
Income tax expense
from discontinued operations(3)
|
|
1
|
|
2
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation and
amortization from continuing operations
|
|
70
|
|
68
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation and
amortization from discontinued operations(3)
|
|
-
|
|
4
|
|
|
|
|
|
|
|
|
|
|
|
|
Business acquisition
and integration expenses and purchase accounting inventory
adjustments
|
|
2
|
|
4
|
|
(1)
|
|
(2)
|
|
1
|
|
2
|
|
0.01
|
|
0.01
|
Costs associated with
the Albemarle Settlement, net
|
|
-
|
|
1
|
|
-
|
|
-
|
|
-
|
|
1
|
|
-
|
|
-
|
EBITDA / Loss (income)
from discontinued operations(3)
|
|
1
|
|
(19)
|
|
N/A
|
|
N/A
|
|
2
|
|
(13)
|
|
0.01
|
|
(0.06)
|
(Gain) loss on sale of
business/assets
|
|
(1)
|
|
7
|
|
-
|
|
(1)
|
|
(1)
|
|
6
|
|
(0.01)
|
|
0.03
|
Income from transition
services arrangements
|
|
-
|
|
(1)
|
|
-
|
|
-
|
|
-
|
|
(1)
|
|
-
|
|
-
|
Fair value adjustments
to Venator investment, net
|
|
4
|
|
-
|
|
-
|
|
-
|
|
4
|
|
-
|
|
0.02
|
|
-
|
Certain legal and
other settlements and related expenses
|
|
1
|
|
2
|
|
-
|
|
1
|
|
1
|
|
3
|
|
0.01
|
|
0.01
|
Certain non-recurring
information technology project implementation costs
|
|
1
|
|
1
|
|
(1)
|
|
(1)
|
|
-
|
|
-
|
|
-
|
|
-
|
Amortization of
pension and postretirement actuarial losses
|
|
7
|
|
10
|
|
(1)
|
|
(2)
|
|
6
|
|
8
|
|
0.03
|
|
0.04
|
Restructuring,
impairment and plant closing and transition costs
|
|
8
|
|
27
|
|
(1)
|
|
(7)
|
|
7
|
|
20
|
|
0.04
|
|
0.10
|
Plant incident
remediation credits
|
|
-
|
|
(5)
|
|
-
|
|
1
|
|
-
|
|
(4)
|
|
-
|
|
(0.02)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted(1)
|
|
$
156
|
|
$
410
|
|
$
(32)
|
|
$
(76)
|
|
$
39
|
|
$
250
|
|
$ 0.22
|
|
$
1.21
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted income tax
expense(1)
|
|
|
|
|
|
|
|
|
|
$
32
|
|
$
76
|
|
|
|
|
Net income attributable
to noncontrolling interests
|
|
|
|
|
|
|
|
|
|
12
|
|
14
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted pre-tax income
(1)
|
|
|
|
|
|
|
|
|
|
$
83
|
|
$
340
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted effective tax
rate(4)
|
|
|
|
|
|
|
|
|
|
39 %
|
|
22 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Effective tax rate
|
|
|
|
|
|
|
|
|
|
46 %
|
|
22 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income Tax
|
|
|
|
|
|
Diluted Income
|
|
|
EBITDA
|
|
Expense
|
|
Net Income
|
|
Per Share
|
|
|
Six months ended
|
|
Six months ended
|
|
Six months ended
|
|
Six months ended
|
|
|
June 30,
|
|
June 30,
|
|
June 30,
|
|
June 30,
|
In millions, except per
share amounts
|
|
2023
|
|
2022
|
|
2023
|
|
2022
|
|
2023
|
|
2022
|
|
2023
|
|
2022
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
|
|
$
197
|
|
$
482
|
|
|
|
|
|
$
197
|
|
$
482
|
|
$ 1.08
|
|
$ 2.29
|
Net income
attributable to noncontrolling interests
|
|
(25)
|
|
(31)
|
|
|
|
|
|
(25)
|
|
(31)
|
|
(0.14)
|
|
(0.15)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income attributable to Huntsman
Corporation
|
|
172
|
|
451
|
|
|
|
|
|
172
|
|
451
|
|
0.94
|
|
2.14
|
Interest expense, net
from continuing operations
|
|
33
|
|
30
|
|
|
|
|
|
|
|
|
|
|
|
|
Income tax expense
from continuing operations
|
|
39
|
|
125
|
|
$
(39)
|
|
$
(125)
|
|
|
|
|
|
|
|
|
Income tax expense
from discontinued operations(3)
|
|
16
|
|
7
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation and
amortization from continuing operations
|
|
139
|
|
135
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation and
amortization from discontinued operations(3)
|
|
-
|
|
8
|
|
|
|
|
|
|
|
|
|
|
|
|
Business acquisition
and integration expenses and purchase accounting inventory
adjustments
|
|
3
|
|
10
|
|
(1)
|
|
(2)
|
|
2
|
|
8
|
|
0.01
|
|
0.04
|
Income associated with
the Albemarle Settlement, net
|
|
-
|
|
2
|
|
-
|
|
-
|
|
-
|
|
2
|
|
-
|
|
0.01
|
EBITDA / Income from
discontinued operations(3)
|
|
(136)
|
|
(46)
|
|
N/A
|
|
N/A
|
|
(120)
|
|
(31)
|
|
(0.66)
|
|
(0.15)
|
(Gain) loss on sale of
business/assets
|
|
(1)
|
|
11
|
|
-
|
|
(2)
|
|
(1)
|
|
9
|
|
(0.01)
|
|
0.04
|
Income from transition
services arrangements
|
|
-
|
|
(2)
|
|
-
|
|
-
|
|
-
|
|
(2)
|
|
-
|
|
(0.01)
|
Fair value adjustments
to Venator Investment
|
|
5
|
|
2
|
|
-
|
|
-
|
|
5
|
|
2
|
|
0.03
|
|
0.01
|
Certain legal
settlements and related expenses
|
|
2
|
|
14
|
|
-
|
|
(3)
|
|
2
|
|
11
|
|
0.01
|
|
0.05
|
Certain non-recurring
information technology project implementation costs
|
|
3
|
|
3
|
|
(1)
|
|
(1)
|
|
2
|
|
2
|
|
0.01
|
|
0.01
|
Amortization of
pension and postretirement actuarial losses
|
|
15
|
|
22
|
|
(2)
|
|
(5)
|
|
13
|
|
17
|
|
0.07
|
|
0.08
|
Restructuring,
impairment and plant closing and transition costs
|
|
2
|
|
30
|
|
(1)
|
|
(8)
|
|
1
|
|
22
|
|
0.01
|
|
0.10
|
Plant incident
remediation credits
|
|
-
|
|
(5)
|
|
-
|
|
1
|
|
-
|
|
(4)
|
|
-
|
|
(0.02)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted(1)
|
|
$
292
|
|
$
797
|
|
$
(44)
|
|
$
(145)
|
|
$
76
|
|
$
487
|
|
$ 0.42
|
|
$ 2.31
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted income tax
expense(1)
|
|
|
|
|
|
|
|
|
|
$
44
|
|
$
145
|
|
|
|
|
Net income attributable
to noncontrolling interests
|
|
|
|
|
|
|
|
|
|
25
|
|
31
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted pre-tax
income(1)
|
|
|
|
|
|
|
|
|
|
$
145
|
|
$
663
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted effective tax
rate(4)
|
|
|
|
|
|
|
|
|
|
30 %
|
|
22 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Effective tax rate
|
|
|
|
|
|
|
|
|
|
34 %
|
|
22 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
N/A = not applicable
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
See end of press release for footnote
explanations.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Table 5 – Selected
Balance Sheet Items
|
|
|
|
|
|
|
|
June 30,
|
|
December 31,
|
In millions
|
|
2023
|
|
2022
|
|
|
|
|
|
Cash
|
|
$
502
|
|
$
654
|
Accounts and notes
receivable, net
|
|
861
|
|
834
|
Inventories
|
|
1,012
|
|
995
|
Other current
assets
|
|
145
|
|
190
|
Current assets held for
sale(3)
|
|
-
|
|
472
|
Property, plant and
equipment, net
|
|
2,354
|
|
2,377
|
Other noncurrent
assets
|
|
2,679
|
|
2,698
|
|
|
|
|
|
Total assets
|
|
$
7,553
|
|
$
8,220
|
|
|
|
|
|
Accounts
payable
|
|
$
745
|
|
$
961
|
Other current
liabilities
|
|
420
|
|
480
|
Current portion of
debt
|
|
11
|
|
66
|
Current liabilities
held for sale(3)
|
|
-
|
|
194
|
Long-term
debt
|
|
1,562
|
|
1,671
|
Other noncurrent
liabilities
|
|
969
|
|
1,008
|
Huntsman Corporation
stockholders' equity
|
|
3,615
|
|
3,624
|
Noncontrolling
interests in subsidiaries
|
|
231
|
|
216
|
|
|
|
|
|
Total liabilities and equity
|
|
$
7,553
|
|
$
8,220
|
Table 6 –
Outstanding Debt
|
|
|
|
|
|
|
|
June 30,
|
|
December 31,
|
In millions
|
|
2023
|
|
2022
|
|
|
|
|
|
Debt:
|
|
|
|
|
Revolving credit
facility
|
|
$
-
|
|
$
55
|
Accounts receivable
programs
|
|
55
|
|
166
|
Senior
notes
|
|
1,465
|
|
1,455
|
Variable interest
entities
|
|
31
|
|
35
|
Other debt
|
|
22
|
|
26
|
|
|
|
|
|
Total debt - excluding
affiliates
|
|
1,573
|
|
1,737
|
|
|
|
|
|
Total cash
|
|
502
|
|
654
|
|
|
|
|
|
Net debt - excluding
affiliates(5)
|
|
$
1,071
|
|
$
1,083
|
|
|
|
|
|
See end of press release for footnote
explanations.
|
|
|
|
|
Table 7 – Summarized
Statement of Cash Flows
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended
|
|
Six months ended
|
|
|
June 30,
|
|
June 30,
|
In millions
|
|
2023
|
|
2022
|
|
2023
|
|
2022
|
|
|
|
|
|
|
|
|
|
Total cash at beginning of
period
|
|
$
615
|
|
$
807
|
|
$
654
|
|
$
1,041
|
|
|
|
|
|
|
|
|
|
Net cash provided by
(used in) operating activities from continuing
operations
|
|
40
|
|
243
|
|
(82)
|
|
310
|
Net cash (used in)
provided by operating activities from discontinued
operations(3)
|
|
(4)
|
|
(12)
|
|
(36)
|
|
6
|
Net cash (used in)
provided by investing activities from continuing
operations
|
|
(49)
|
|
(60)
|
|
444
|
|
(120)
|
Net cash used in
investing activities from discontinued
operations(3)
|
|
-
|
|
(4)
|
|
(4)
|
|
(9)
|
Net cash used in
financing activities
|
|
(85)
|
|
(357)
|
|
(464)
|
|
(609)
|
Effect of exchange
rate changes on cash
|
|
(15)
|
|
(9)
|
|
(10)
|
|
(11)
|
|
|
|
|
|
|
|
|
|
Total cash at end of period
|
|
$
502
|
|
$
608
|
|
$
502
|
|
$
608
|
|
|
|
|
|
|
|
|
|
Free cash flow from continuing
operations(2):
|
|
|
|
|
|
|
|
|
Net cash provided by
(used in) operating activities from continuing
operations
|
|
$
40
|
|
$
243
|
|
$
(82)
|
|
$
310
|
Capital
expenditures
|
|
(51)
|
|
(65)
|
|
(97)
|
|
(129)
|
|
|
|
|
|
|
|
|
|
Free cash flow from continuing
operations(2)
|
|
$
(11)
|
|
$
178
|
|
$
(179)
|
|
$
181
|
|
|
|
|
|
|
|
|
|
Supplemental cash flow
information:
|
|
|
|
|
|
|
|
|
Cash paid for
interest
|
|
$
(24)
|
|
$
(24)
|
|
$
(34)
|
|
$
(33)
|
Cash paid for income
taxes
|
|
(33)
|
|
(122)
|
|
(62)
|
|
(154)
|
Cash paid for
restructuring and integration
|
|
(16)
|
|
(13)
|
|
(38)
|
|
(25)
|
Cash paid for
pensions
|
|
(9)
|
|
(13)
|
|
(20)
|
|
(24)
|
Depreciation and
amortization from continuing operations
|
|
70
|
|
68
|
|
139
|
|
135
|
|
|
|
|
|
|
|
|
|
Change in primary
working capital:
|
|
|
|
|
|
|
|
|
Accounts and notes
receivable
|
|
$
23
|
|
$
(10)
|
|
$
-
|
|
$
(129)
|
Inventories
|
|
27
|
|
(42)
|
|
(23)
|
|
(200)
|
Accounts
payable
|
|
(123)
|
|
(110)
|
|
(198)
|
|
(33)
|
Total change in
primary working capital
|
|
$
(73)
|
|
$
(162)
|
|
$
(221)
|
|
$
(362)
|
|
|
|
|
|
|
|
|
|
See end of press release for footnote
explanations.
|
|
|
|
|
|
|
|
|
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 (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, net of
tax; (b) interest; (c) income taxes; (d) depreciation and
amortization; (e) amortization of pension and postretirement
actuarial losses (gains); (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
interest; (b) amortization of pension and postretirement actuarial
losses (gains); (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.
|
|
|
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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, 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.
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(2)
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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.
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(3)
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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 and held for sale on the December
31, 2022 balance sheet.
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(4)
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We believe 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.
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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.
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(5)
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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.
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About Huntsman:
Huntsman Corporation is a publicly
traded global manufacturer and marketer of differentiated and
specialty chemicals with 2022 revenues of approximately
$8 billion from our continuing
operations. 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
60 manufacturing, R&D and operations facilities in
approximately 30 countries and employ approximately 7,000
associates within our continuing operations. 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:
This press
release includes "forward-looking statements" within the meaning of
Section 27A of the Securities Act of 1933 and Section 21E of the
Securities Exchange Act of 1934. These forward-looking statements
include statements concerning our plans, objectives, goals,
strategies, future events, future revenue or performance, capital
expenditures, financing needs, plans or intentions relating to
acquisitions, divestitures or strategic transactions, business
trends and any other information that is not historical
information. When used in this press release, the words
"estimates," "expects," "anticipates," "likely," "projects,"
"outlook," "plans," "intends," "believes," "forecasts," or future
or conditional verbs, such as "will," "should," "could" or "may,"
and variations of such words or similar expressions are intended to
identify forward-looking statements. These forward-looking
statements, including, without limitation, management's examination
of historical operating trends and data, are based upon our current
expectations and various assumptions and beliefs. In particular,
such forward-looking statements are subject to uncertainty and
changes in circumstances and involve risks and uncertainties that
may affect the Company's operations, markets, products, prices and
other factors as discussed in the Company's filings with the
Securities and Exchange Commission (the "SEC"). Significant risks
and uncertainties may relate to, but are not limited to, increased
energy costs in Europe, inflation
and resulting monetary tightening in the US, geopolitical
instability, volatile global economic conditions, cyclical and
volatile product markets, disruptions in production at
manufacturing facilities, reorganization or restructuring of the
Company's operations, including any delay of, or other negative
developments affecting the ability to implement cost reductions and
manufacturing optimization improvements in the Company's businesses
and to realize anticipated cost savings, and other financial,
operational, economic, competitive, environmental, political,
legal, regulatory and technological factors. Any forward-looking
statement should be considered in light of the risks set forth
under the caption "Risk Factors" in our Annual Report on Form 10-K
for the year ended December 31, 2022,
which may be supplemented by other risks and uncertainties
disclosed in any subsequent reports filed or furnished by the
Company from time to time. All forward-looking statements apply
only as of the date made. Except as required by law, the Company
undertakes no obligation to update or revise forward-looking
statements to reflect events or circumstances that arise after the
date made or to reflect the occurrence of unanticipated
events.
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SOURCE Huntsman Corporation