THE WOODLANDS, Texas, Feb. 12, 2021 /PRNewswire/ --
Fourth Quarter Highlights
- Fourth quarter 2020 net income of $360 million compared to net income of $308 million in the prior year period; fourth quarter 2020 diluted earnings per share of $1.54 compared to diluted earnings per share of $1.34 in the prior year period.
- Fourth quarter 2020 adjusted net income of $113 million compared to adjusted net income of $65 million in the prior year period; fourth quarter 2020 adjusted diluted earnings per share of $0.51 compared to adjusted diluted earnings per share of $0.29 in the prior year period.
- Fourth quarter 2020 adjusted EBITDA of $240 million compared to adjusted EBITDA of $182 million in the prior year period.
- Fourth quarter 2020 net cash provided by operating activities from continuing operations was $167 million. Free cash flow from continuing operations was $88 million for the fourth quarter 2020 and adjusted free cash flow from continuing operations was $157 million.
- Balance sheet remains strong with a net leverage of 0.8x and total liquidity is approximately $3 billion. On January 15, 2021 we redeemed in full €445 million (approximately $541 million) in aggregate principle amount of our 5.125% Senior notes due 2021 at par from available cash.
- Completed the sale of Venator Materials PLC ordinary shares to funds advised by SK Capital on December 23, 2020. Together with estimated cash tax savings of approximately $150 million, which this transaction facilitated, secured an aggregate total cash benefit of approximately $250 million.
- Announced the acquisition of Gabriel Performance Products within our Advanced Materials segment for $250 million on December 7, 2020, which was completed on January 15, 2021.
- In our Company wide optimization efforts, we are now targeting annualized savings and acquisition integration synergies in excess of $120 million, to be achieved by mid-2023. $27 million of targeted annualized savings achieved in 2020.
Three months ended |
Twelve months ended |
||||||||
December 31, |
December 31, |
||||||||
In millions, except per share amounts |
2020 |
2019 |
2020 |
2019 |
|||||
Revenues |
$ 1,668 |
$ 1,657 |
$ 6,018 |
$ 6,797 |
|||||
Net income |
$ 360 |
$ 308 |
$ 1,066 |
$ 598 |
|||||
Adjusted net income(1) |
$ 113 |
$ 65 |
$ 218 |
$ 353 |
|||||
Diluted income per share |
$ 1.54 |
$ 1.34 |
$ 4.66 |
$ 2.44 |
|||||
Adjusted diluted income per share(1) |
$ 0.51 |
$ 0.29 |
$ 0.98 |
$ 1.53 |
|||||
Adjusted EBITDA(1) |
$ 240 |
$ 182 |
$ 647 |
$ 846 |
|||||
Net cash provided by operating activities from continuing operations |
$ 167 |
$ 222 |
$ 277 |
$ 656 |
|||||
Free cash flow from continuing operations(2) |
$ 88 |
$ 129 |
$ 28 |
$ 382 |
|||||
Adjusted free cash flow from continuing operations(6) |
$ 157 |
$ 129 |
$ 285 |
$ 382 |
|||||
See end of press release for footnote explanations and reconciliations of non-GAAP measures. |
Huntsman Corporation (NYSE: HUN) today reported fourth quarter 2020 results with revenues of $1,668 million, net income of $360 million, adjusted net income of $113 million and adjusted EBITDA of $240 million.
Peter R. Huntsman, Chairman, President and CEO, commented:
"In the midst of a very challenging 2020, our commitment was to emerge stronger and better. I am very pleased to report that we were able to exceed our expectations. Our fourth quarter adjusted EBITDA significantly exceeded our fourth quarter of a year ago, even despite a lagging recovery in Aerospace. We also delivered a solid fourth quarter and full year free cash flow, beyond what we anticipated. We had added three highly complementary, differentiated businesses to our core portfolio, and are on track to deliver on over $40 million of annualized related synergies. Together with our cost realignment and business optimization plans, we target in excess of $120 million of annualized benefits by mid-2023. Our balance sheet remains very strong. While we are prepared for macro uncertainties to continue in 2021, we see steady improvements over 2020 in most of our core markets and we remain totally committed to creating value for our shareholders."
Segment Analysis for 4Q20 Compared to 4Q19
Polyurethanes
The increase in revenues in our Polyurethanes segment for the three months ended December 31, 2020 compared to the same period in 2019 was primarily due to higher MDI average selling prices, partially offset by lower sales volumes. Both differentiated and component MDI average selling prices increased primarily in China and Europe. MDI sales volumes decreased primarily due to unplanned supplier outages. The increase in segment adjusted EBITDA was primarily due to higher MDI margins driven by higher MDI pricing, partially offset by lower MDI sales volumes.
Performance Products
The decrease in revenues in our Performance Products segment for the three months ended December 31, 2020 compared to the same period in 2019 was primarily due to lower sales volumes and average selling prices. Sales volumes and average selling prices decreased largely due to weakened market conditions across several of our amines businesses. The slight decrease in adjusted EBITDA is due to the lower sales volumes and average selling prices partially offset by lower fixed costs.
Advanced Materials
The decrease in revenues in our Advanced Materials segment for the three months ended December 31, 2020 compared to the same period in 2019 was primarily due to lower sales volumes, predominantly due to weakness in our aerospace and commodity markets. Sales volumes decreased across most markets primarily due to economic slowdown and customer destocking. Segment adjusted EBITDA decreased due to lower sales volumes, partially offset by lower fixed costs. The adjusted EBITDA contribution from our recent acquisition of CVC Thermoset Specialties was offset by the lost adjusted EBITDA from the divestiture of our India-based DIY consumer adhesives business.
Textile Effects
The decrease in revenues in our Textile Effects segment for the three months ended December 31, 2020 compared to the same period in 2019 was due to lower average selling price, partially offset by higher sales volumes. Average selling prices decreased primarily from market-adjusted pricing aligned to raw material costs. Sales volumes increased mainly in the Asia region. Segment adjusted EBITDA was flat with the lower sales revenue being offset by lower raw material costs and lower fixed costs.
Corporate, LIFO and other
For the three months ended December 31, 2020, adjusted EBITDA from Corporate and other for Huntsman Corporation decreased by $4 million to a loss of $47 million from a loss of $43 million for the same period of 2019.
Liquidity and Capital Resources
During the three months ended December 31, 2020, our adjusted free cash flow from continuing operations was $157 million as compared to $129 million in the prior year period. As of December 31, 2020, we had approximately $3 billion of combined cash and unused borrowing capacity.
During the three months ended December 31, 2020, we spent $79 million on capital expenditures as compared to $93 million in the same period of 2019. For the year ended December 31, 2020 we spent $249 million on capital expenditures. For 2021 we expect to spend between $320 million to $330 million on capital expenditures.
Income Taxes
In the fourth quarter 2020, our adjusted effective tax rate was 17%. For 2021, our adjusted effective tax rate is expected to be approximately 22% - 24%.
Earnings Conference Call Information
We will hold a conference call to discuss our fourth quarter 2020 financial results on Friday, February 12, 2021 at 10:00 a.m. ET.
Webcast link: https://78449.themediaframe.com/dataconf/productusers/hun/mediaframe/42984/indexl.html
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, ir.huntsman.com. Upon conclusion of the call, the webcast replay will be accessible via Huntsman's website.
Upcoming Conferences
During the first quarter 2021, a member of management is expected to present at:
Alembic Global Advisors Virtual Deer Valley Chemical Conference on February 25, 2021
Bank of America Agriculture and Materials Virtual Conference on March 3, 2021
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 |
Twelve months ended |
||||||||
December 31, |
December 31, |
||||||||
In millions, except per share amounts |
2020 |
2019 |
2020 |
2019 |
|||||
Revenues |
$ 1,668 |
$ 1,657 |
$ 6,018 |
$ 6,797 |
|||||
Cost of goods sold |
1,306 |
1,347 |
4,918 |
5,415 |
|||||
Gross profit |
362 |
310 |
1,100 |
1,382 |
|||||
Operating (credits) expenses |
(42) |
259 |
618 |
954 |
|||||
Restructuring, impairment and plant closing costs (credits) |
15 |
1 |
49 |
(41) |
|||||
Operating income |
389 |
50 |
433 |
469 |
|||||
Interest expense |
(23) |
(25) |
(86) |
(111) |
|||||
Equity in income of investment in unconsolidated affiliates |
17 |
13 |
42 |
54 |
|||||
Fair value adjustments to Venator investment and related loss on disposal |
12 |
72 |
(88) |
(18) |
|||||
Loss on early extinguishment of debt |
- |
- |
- |
(23) |
|||||
Other income, net |
9 |
4 |
36 |
20 |
|||||
Income from continuing operations before income taxes |
404 |
114 |
337 |
391 |
|||||
Income tax (expense) benefit |
(37) |
151 |
(46) |
38 |
|||||
Income from continuing operations |
367 |
265 |
291 |
429 |
|||||
(Loss) income from discontinued operations, net of tax(3) |
(7) |
43 |
775 |
169 |
|||||
Net income |
360 |
308 |
1,066 |
598 |
|||||
Net income attributable to noncontrolling interests, net of tax |
(17) |
(5) |
(32) |
(36) |
|||||
Net income attributable to Huntsman Corporation |
$ 343 |
$ 303 |
$ 1,034 |
$ 562 |
|||||
Adjusted EBITDA(1) |
$ 240 |
$ 182 |
$ 647 |
$ 846 |
|||||
Adjusted net income(1) |
$ 113 |
$ 65 |
$ 218 |
$ 353 |
|||||
Basic income per share |
$ 1.56 |
$ 1.35 |
$ 4.69 |
$ 2.46 |
|||||
Diluted income per share |
$ 1.54 |
$ 1.34 |
$ 4.66 |
$ 2.44 |
|||||
Adjusted diluted income per share(1) |
$ 0.51 |
$ 0.29 |
$ 0.98 |
$ 1.53 |
|||||
Common share information: |
|||||||||
Basic weighted average shares |
220 |
225 |
221 |
229 |
|||||
Diluted weighted average shares |
222 |
227 |
222 |
231 |
|||||
Diluted shares for adjusted diluted income per share |
222 |
227 |
222 |
231 |
|||||
See end of press release for footnote explanations. |
Table 2 – Results of Operations by Segment |
||||||||||||
Three months ended |
Twelve months ended |
|||||||||||
December 31, |
Better / |
December 31, |
Better / |
|||||||||
In millions |
2020 |
2019 |
(Worse) |
2020 |
2019 |
(Worse) |
||||||
Segment Revenues: |
||||||||||||
Polyurethanes |
$ 1,030 |
$ 980 |
5% |
$ 3,584 |
$ 3,911 |
(8%) |
||||||
Performance Products |
265 |
278 |
(5%) |
1,023 |
1,158 |
(12%) |
||||||
Advanced Materials |
207 |
241 |
(14%) |
839 |
1,044 |
(20%) |
||||||
Textile Effects |
173 |
180 |
(4%) |
597 |
763 |
(22%) |
||||||
Corporate and Eliminations |
(7) |
(22) |
n/m |
(25) |
(79) |
n/m |
||||||
Total |
$ 1,668 |
$ 1,657 |
1% |
$ 6,018 |
$ 6,797 |
(11%) |
||||||
Segment Adjusted EBITDA(1): |
||||||||||||
Polyurethanes |
$ 201 |
$ 122 |
65% |
$ 472 |
$ 548 |
(14%) |
||||||
Performance Products |
41 |
43 |
(5%) |
164 |
168 |
(2%) |
||||||
Advanced Materials |
27 |
42 |
(36%) |
130 |
201 |
(35%) |
||||||
Textile Effects |
18 |
18 |
0% |
42 |
84 |
(50%) |
||||||
Corporate, LIFO and other |
(47) |
(43) |
(9%) |
(161) |
(155) |
(4%) |
||||||
Total |
$ 240 |
$ 182 |
32% |
$ 647 |
$ 846 |
(24%) |
||||||
n/m = not meaningful |
||||||||||||
See end of press release for footnote explanations. |
Table 3 – Factors Impacting Sales Revenue |
|||||||||||
Three months ended |
|||||||||||
December 31, 2020 vs. 2019 |
|||||||||||
Average Selling Price(a) |
|||||||||||
Local |
Exchange |
Sales Mix |
Sales |
||||||||
Currency |
Rate |
& Other |
Volume(b) |
Total |
|||||||
Polyurethanes |
8% |
3% |
(3%) |
(3%) |
5% |
||||||
Performance Products |
(2%) |
2% |
(1%) |
(4%) |
(5%) |
||||||
Advanced Materials |
2% |
1% |
(4%) |
(13%) |
(14%) |
||||||
Textile Effects |
(6%) |
0% |
(1%) |
3% |
(4%) |
||||||
Twelve months ended |
|||||||||||
December 31, 2020 vs. 2019 |
|||||||||||
Average Selling Price(a) |
|||||||||||
Local |
Exchange |
Sales Mix |
Sales |
||||||||
Currency |
Rate |
& Other |
Volume(b) |
Total |
|||||||
Polyurethanes |
(3%) |
0% |
0% |
(5%) |
(8%) |
||||||
Performance Products |
(4%) |
0% |
3% |
(11%) |
(12%) |
||||||
Advanced Materials |
2% |
(1%) |
(2%) |
(19%) |
(20%) |
||||||
Textile Effects |
(3%) |
(1%) |
(2%) |
(16%) |
(22%) |
||||||
(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) 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 |
2020 |
2019 |
2020 |
2019 |
2020 |
2019 |
2020 |
2019 |
||||||||
Net income |
$ 360 |
$ 308 |
$ 360 |
$ 308 |
$ 1.62 |
$ 1.36 |
||||||||||
Net income attributable to noncontrolling interests |
(17) |
(5) |
(17) |
(5) |
(0.08) |
(0.02) |
||||||||||
Net income attributable to Huntsman Corporation |
343 |
303 |
343 |
303 |
1.54 |
1.34 |
||||||||||
Interest expense from continuing operations |
23 |
25 |
||||||||||||||
Income tax expense (benefit) from continuing operations |
37 |
(151) |
$ (37) |
$ 151 |
||||||||||||
Income tax expense (benefit) from discontinued operations(3) |
3 |
(9) |
||||||||||||||
Depreciation and amortization from continuing operations |
77 |
69 |
||||||||||||||
Depreciation and amortization from discontinued operations(3) |
- |
2 |
||||||||||||||
Business acquisition and integration expenses (income) and purchase accounting inventory adjustments |
1 |
1 |
- |
1 |
1 |
2 |
- |
0.01 |
||||||||
EBITDA / Loss (income) from discontinued operations, net of tax(3) |
4 |
(36) |
N/A |
N/A |
7 |
(43) |
0.03 |
(0.19) |
||||||||
U.S. tax reform impact on tax expense |
- |
- |
- |
(4) |
- |
(4) |
- |
(0.02) |
||||||||
Significant activities related to deferred tax assets and liabilities(a) |
- |
- |
- |
(160) |
- |
(160) |
- |
(0.71) |
||||||||
(Gain) loss on sale of businesses/assets |
(279) |
21 |
31 |
(5) |
(248) |
16 |
(1.12) |
0.07 |
||||||||
Income from transition services arrangements |
(1) |
- |
1 |
- |
- |
- |
- |
- |
||||||||
Fair value adjustments to Venator Investment and related loss on disposal(b) |
(12) |
(72) |
(9) |
- |
(21) |
(72) |
(0.09) |
(0.32) |
||||||||
Certain legal and other settlements and related expenses |
3 |
5 |
(1) |
(1) |
2 |
4 |
0.01 |
0.02 |
||||||||
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 |
19 |
17 |
(5) |
(3) |
14 |
14 |
0.06 |
0.06 |
||||||||
Restructuring, impairment and plant closing and transition costs |
18 |
1 |
(6) |
- |
12 |
1 |
0.05 |
- |
||||||||
Plant incident remediation costs |
1 |
3 |
- |
(1) |
1 |
2 |
- |
0.01 |
||||||||
Adjusted(1) |
$ 240 |
$ 182 |
$ (27) |
$ (23) |
$ 113 |
$ 65 |
$ 0.51 |
$ 0.29 |
||||||||
Adjusted income tax expense(1) |
$ 27 |
$ 23 |
||||||||||||||
Net income attributable to noncontrolling interests, net of tax |
17 |
5 |
||||||||||||||
Adjusted pre-tax income(1) |
$ 157 |
$ 93 |
||||||||||||||
Adjusted effective tax rate(4) |
17% |
25% |
||||||||||||||
Effective tax rate |
9% |
n/m |
||||||||||||||
Income Tax |
Diluted Income |
|||||||||||||||
EBITDA |
(Expense) Benefit |
Net Income |
Per Share |
|||||||||||||
Twelve months ended |
Twelve months ended |
Twelve months ended |
Twelve months ended |
|||||||||||||
December 31, |
December 31, |
December 31, |
December 31, |
|||||||||||||
In millions, except per share amounts |
2020 |
2019 |
2020 |
2019 |
2020 |
2019 |
2020 |
2019 |
||||||||
Net income |
$ 1,066 |
$ 598 |
$ 1,066 |
$ 598 |
$ 4.80 |
$ 2.59 |
||||||||||
Net income attributable to noncontrolling interests |
(32) |
(36) |
(32) |
(36) |
(0.14) |
(0.16) |
||||||||||
Net income attributable to Huntsman Corporation |
1,034 |
562 |
1,034 |
562 |
4.66 |
2.44 |
||||||||||
Interest expense from continuing operations |
86 |
111 |
||||||||||||||
Income tax expense (benefit) from continuing operations |
46 |
(38) |
$ (46) |
$ 38 |
||||||||||||
Income tax expense from discontinued operations(3) |
242 |
35 |
||||||||||||||
Depreciation and amortization from continuing operations |
283 |
270 |
||||||||||||||
Depreciation and amortization from discontinued operations(3) |
- |
61 |
||||||||||||||
Business acquisition and integration expenses and purchase accounting inventory adjustments |
31 |
5 |
(6) |
- |
25 |
5 |
0.11 |
0.02 |
||||||||
EBITDA / Income from discontinued operations, net of tax(3) |
(1,017) |
(265) |
N/A |
N/A |
(775) |
(169) |
(3.49) |
(0.73) |
||||||||
U.S. tax reform impact on tax expense |
- |
- |
- |
(1) |
- |
(1) |
- |
- |
||||||||
Significant activities related to deferred tax assets and liabilities(a) |
- |
- |
- |
(160) |
- |
(160) |
- |
(0.69) |
||||||||
Impact of Switzerland income tax rate change |
- |
- |
- |
32 |
- |
32 |
- |
0.14 |
||||||||
(Gain) loss on sale of businesses/assets |
(280) |
21 |
31 |
(5) |
(249) |
16 |
(1.12) |
0.07 |
||||||||
Income from transition services arrangements |
(7) |
- |
2 |
- |
(5) |
- |
(0.02) |
- |
||||||||
Fair value adjustments to Venator Investment and related loss on disposal(b) |
88 |
18 |
(9) |
- |
79 |
18 |
0.36 |
0.08 |
||||||||
Loss on early extinguishment of debt |
- |
23 |
- |
(5) |
- |
18 |
- |
0.08 |
||||||||
Certain legal and other settlements and related expenses |
5 |
6 |
(1) |
(1) |
4 |
5 |
0.02 |
0.02 |
||||||||
Certain non-recurring information technology project implementation costs |
6 |
4 |
(1) |
(1) |
5 |
3 |
0.02 |
0.01 |
||||||||
Amortization of pension and postretirement actuarial losses |
76 |
66 |
(17) |
(16) |
59 |
50 |
0.27 |
0.22 |
||||||||
Restructuring, impairment and plant closing and transition costs (credits) |
52 |
(41) |
(13) |
9 |
39 |
(32) |
0.18 |
(0.14) |
||||||||
Plant incident remediation costs |
2 |
8 |
- |
(2) |
2 |
6 |
0.01 |
0.03 |
||||||||
Adjusted(1) |
$ 647 |
$ 846 |
$ (60) |
$ (112) |
$ 218 |
$ 353 |
$ 0.98 |
$ 1.53 |
||||||||
Adjusted income tax expense(1) |
$ 60 |
$ 112 |
||||||||||||||
Net income attributable to noncontrolling interests, net of tax |
32 |
36 |
||||||||||||||
Adjusted pre-tax income(1) |
$ 310 |
$ 501 |
||||||||||||||
Adjusted effective tax rate(4) |
19% |
22% |
||||||||||||||
Effective tax rate |
14% |
(10%) |
(a) During the year ended December 31, 2019, we recorded $153 million of tax benefit relating to the outside basis difference in our investment in Venator, we recorded $18 million of tax benefit relating to realized tax losses on our remaining interest in Venator, we established $11 million |
||||||||||||||||
of significant income tax valuation allowance in Australia and we recorded $32 million of deferred tax expense due to the reduction of tax rates in Switzerland. During the year ended December 31, 2018, we released $119 million of significant income tax valuation allowances in |
||||||||||||||||
Switzerland, the U.K. and Luxembourg. We eliminated the effect of these significant changes in tax valuation allowances and deferred tax assets and liabilities from our presentation of adjusted net income to allow investors to better compare our ongoing financial performance from |
||||||||||||||||
period to period. |
||||||||||||||||
(b) Represents the changes in market value in Huntsman's interest in Venator and related loss on disposal of Venator shares sold in December 2020. |
||||||||||||||||
N/A = not applicable |
||||||||||||||||
See end of press release for footnote explanations. |
Table 5 – Selected Balance Sheet Items |
||||
December 31, |
December 31, |
|||
In millions |
2020 |
2019 |
||
Cash |
$ 1,593 |
$ 525 |
||
Accounts and notes receivable, net |
910 |
953 |
||
Inventories |
848 |
914 |
||
Other current assets |
217 |
155 |
||
Current assets held for sale |
- |
1,208 |
||
Property, plant and equipment, net |
2,505 |
2,383 |
||
Other noncurrent assets |
2,640 |
2,182 |
||
Total assets |
$ 8,713 |
$ 8,320 |
||
Accounts payable |
$ 876 |
$ 822 |
||
Other current liabilities |
510 |
462 |
||
Current portion of debt |
593 |
212 |
||
Current liabilities held for sale |
- |
512 |
||
Long-term debt |
1,528 |
2,177 |
||
Other noncurrent liabilities |
1,533 |
1,311 |
||
Huntsman Corporation stockholders' equity |
3,519 |
2,687 |
||
Noncontrolling interests in subsidiaries |
154 |
137 |
||
Total liabilities and equity |
$ 8,713 |
$ 8,320 |
||
Table 6 – Outstanding Debt |
||||
December 31, |
December 31, |
|||
In millions |
2020 |
2019 |
||
Debt: |
||||
Revolving credit facility |
$ - |
$ 40 |
||
Accounts receivable programs |
- |
167 |
||
Term loan |
- |
103 |
||
Senior notes |
2,047 |
1,963 |
||
Variable interest entities |
50 |
65 |
||
Other debt |
24 |
51 |
||
Total debt - excluding affiliates |
2,121 |
2,389 |
||
Total cash |
1,593 |
525 |
||
Net debt - excluding affiliates(5) |
$ 528 |
$ 1,864 |
||
See end of press release for footnote explanations. |
||||
Table 7 – Summarized Statement of Cash Flows |
||||||||
Three months ended |
Twelve months ended |
|||||||
December 31, |
December 31, |
|||||||
In millions |
2020 |
2019 |
2020 |
2019 |
||||
Total cash at beginning of period |
$ 1,168 |
$ 418 |
$ 525 |
$ 340 |
||||
Net cash provided by operating activities from continuing operations |
167 |
222 |
277 |
656 |
||||
Net cash (used in) provided by operating activities from discontinued operations(3) |
(2) |
19 |
(24) |
241 |
||||
Net cash provided by (used in) investing activities from continuing operations |
357 |
(90) |
1,462 |
(201) |
||||
Net cash provided by (used in) investing activities from discontinued operations(3) |
1 |
(28) |
1 |
(59) |
||||
Net cash used in financing activities |
(109) |
(19) |
(655) |
(450) |
||||
Effect of exchange rate changes on cash |
11 |
3 |
7 |
(2) |
||||
Total cash at end of period |
$ 1,593 |
$ 525 |
$ 1,593 |
$ 525 |
||||
Free cash flow from continuing operations(2): |
||||||||
Net cash provided by operating activities |
$ 167 |
$ 222 |
$ 277 |
$ 656 |
||||
Capital expenditures |
(79) |
(93) |
(249) |
(274) |
||||
Free cash flow from continuing operations |
$ 88 |
$ 129 |
$ 28 |
$ 382 |
||||
Taxes paid on sale of Chemical Intermediates and India-Based DIY Businesses |
$ 69 |
$ - |
$ 257 |
$ - |
||||
Adjusted free cash flow from continuing operations(6): |
$ 157 |
$ 129 |
$ 285 |
$ 382 |
||||
Supplemental cash flow information: |
||||||||
Cash paid for interest |
$ (41) |
$ (46) |
$ (90) |
$ (111) |
||||
Cash paid (received) for income taxes |
(74) |
2 |
(316) |
(100) |
||||
Cash paid for restructuring and integration |
(3) |
(7) |
(27) |
(21) |
||||
Cash paid for pensions |
(28) |
(24) |
(101) |
(92) |
||||
Depreciation and amortization of continuing operations |
77 |
69 |
283 |
270 |
||||
Change in primary working capital: |
||||||||
Accounts and notes receivable |
$ (3) |
$ 69 |
$ 100 |
$ 138 |
||||
Inventories |
(9) |
58 |
145 |
77 |
||||
Accounts payable |
117 |
37 |
32 |
21 |
||||
Total change in primary working capital |
$ 105 |
$ 164 |
$ 277 |
$ 236 |
||||
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 |
Adjusted EBITDA, adjusted net income (loss) and adjusted diluted income (loss) per share, as used herein, are not necessarily |
|
Adjusted EBITDA is computed by eliminating the following from net income (loss): (a) net income attributable to noncontrolling |
|
Adjusted net income (loss) and adjusted diluted income (loss) per share are computed by eliminating the after tax impact of the |
|
We do not provide reconciliations for adjusted EBITDA, adjusted net income (loss) or adjusted diluted income (loss) per share on a |
|
(2) |
Management internally uses a free cash flow measure: (a) to evaluate our liquidity, (b) evaluate strategic investments, (c) plan |
(3) |
During the third quarter 2019, we entered into an agreement to sell our Chemical Intermediates Businesses. Results from these |
(4) |
We believe adjusted effective tax rate provides improved comparability between periods through the exclusion of certain items that |
The reconciliation of historical adjusted effective tax rate and effective tax rate is set forth in Table 4 above. We do not provide |
|
(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 |
(6) |
Adjusted free cash flow is defined as free cash flow, as described above, adjusted by excluding the taxes paid in connection with |
About Huntsman:
Huntsman Corporation is a publicly traded global manufacturer and marketer of differentiated and specialty chemicals with 2020 revenues of approximately $6 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 70 manufacturing, R&D and operations facilities in approximately 30 countries and employ approximately 9,000 associates within our four distinct business divisions. For more information about Huntsman, please visit the company's website at www.huntsman.comhttps://c212.net/c/link/?t=0&l=en&o=2729073-1&h=708906847&u=http%3A%2F%2Fwww.huntsman.com%2F&a=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:
Certain information in this release constitutes 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 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 under the caption "Risk Factors" 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 ability to implement cost reductions, timing of proposed transactions, 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.
SOURCE Huntsman Corporation
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