Huntsman Announces Second Quarter 2024 Earnings
Huntsman (NYSE: HUN) announced its second quarter 2024 earnings. Key metrics include revenues of $1,574 million, a slight decrease from $1,596 million in Q2 2023. Net income attributable to Huntsman was $22 million, up from $19 million the previous year. Diluted income per share was $0.13 versus $0.11 in Q2 2023. Adjusted net income was $24 million, down from $39 million, and adjusted EBITDA was $131 million, down from $156 million in Q2 2023.
For Q2 2024, net cash provided by operating activities was $55 million with free cash flow of $5 million, an improvement from a cash usage of $11 million in the same period last year. Huntsman’s CEO, Peter R. Huntsman, highlighted a $50 million adjusted EBITDA improvement over the first quarter and a 9% year-over-year increase in sales volumes.
Segment analysis showed revenue decreases in Polyurethanes, Performance Products, and Advanced Materials due to lower average selling prices, offset by higher sales volumes. The company expects moderate economic activity in the near term but remains focused on cost control, cash flow, and capital allocation.
Huntsman (NYSE: HUN) ha annunciato i risultati del secondo trimestre 2024. I principali indicatori includono ricavi di 1.574 milioni di dollari, una leggera diminuzione rispetto ai 1.596 milioni di dollari del Q2 2023. Il reddito netto attribuibile a Huntsman è stato di 22 milioni di dollari, in aumento rispetto ai 19 milioni dell'anno precedente. Il reddito netto diluito per azione è stato di 0,13 dollari rispetto a 0,11 dollari nel Q2 2023. Il reddito netto rettificato è stato di 24 milioni di dollari, in calo rispetto ai 39 milioni, e l'EBITDA rettificato è stato di 131 milioni di dollari, in diminuzione rispetto ai 156 milioni di dollari nel Q2 2023.
Per il Q2 2024, il flusso di cassa netto fornito dalle attività operative è stato di 55 milioni di dollari con flusso di cassa libero di 5 milioni di dollari, un miglioramento rispetto a un utilizzo di cassa di 11 milioni nella stessa periodo dell'anno scorso. Il CEO di Huntsman, Peter R. Huntsman, ha evidenziato un miglioramento dell'EBITDA rettificato di 50 milioni di dollari rispetto al primo trimestre e un aumento del 9% nel volume delle vendite anno su anno.
L'analisi per segmenti ha mostrato diminuzioni dei ricavi in Poliuretani, Prodotti Performance e Materiali Avanzati a causa di prezzi di vendita medi più bassi, compensati da volumi di vendita più elevati. L'azienda prevede un'attività economica moderata nel breve termine, ma rimane concentrata sul controllo dei costi, sul flusso di cassa e sull'allocazione del capitale.
Huntsman (NYSE: HUN) anunció sus resultados del segundo trimestre de 2024. Las métricas clave incluyen ingresos de 1.574 millones de dólares, una ligera disminución de 1.596 millones de dólares en el Q2 2023. El ingreso neto atribuible a Huntsman fue de 22 millones de dólares, un aumento respecto a los 19 millones del año anterior. El ingreso neto por acción diluido fue de 0,13 dólares frente a 0,11 dólares en el Q2 2023. El ingreso neto ajustado fue de 24 millones de dólares, en comparación con 39 millones, y el EBITDA ajustado fue de 131 millones de dólares, disminuyendo de 156 millones de dólares en el Q2 2023.
Para el Q2 2024, el flujo de caja neto proporcionado por las actividades operativas fue de 55 millones de dólares con flujo de caja libre de 5 millones de dólares, una mejora respecto al uso de caja de 11 millones en el mismo periodo del año pasado. El CEO de Huntsman, Peter R. Huntsman, destacó una mejora de 50 millones de dólares en el EBITDA ajustado en comparación con el primer trimestre y un aumento del 9% en el volumen de ventas año con año.
El análisis por segmentos mostró disminuciones en los ingresos de Poliuretanos, Productos de Rendimiento y Materiales Avanzados debido a precios de venta promedio más bajos, compensados por volúmenes de ventas más altos. La compañía espera una actividad económica moderada en el corto plazo, pero sigue enfocándose en el control de costos, el flujo de caja y la asignación de capital.
Huntsman (NYSE: HUN)은 2024년 2분기 실적을 발표했습니다. 주요 지표는 매출 15억 7400만 달러로, 2023년 2분기의 15억 9600만 달러에서 소폭 감소했습니다. Huntsman에 귀속된 순이익은 2200만 달러로, 지난해의 1900만 달러에서 증가했습니다. 희석주당 순이익은 0.13달러로, 2023년 2분기의 0.11달러에 비해 증가했습니다. 조정된 순이익은 2400만 달러로, 3900만 달러에서 감소하였으며, 조정된 EBITDA는 1억 3100만 달러로, 2023년 2분기의 1억 5600만 달러에서 감소했습니다.
2024년 2분기 동안, 운영 활동에서 제공된 순 현금은 5500만 달러이며, 자유 현금 흐름은 500만 달러로, 지난해 같은 기간의 1100만 달러의 현금 사용에서 개선되었습니다. Huntsman의 CEO인 Peter R. Huntsman은 첫 분기보다 5000만 달러 증가한 조정된 EBITDA와 전년 대비 9% 증가한 판매량을 강조했습니다.
세그먼트 분석에 따르면, 평균 판매 가격 하락으로 인해 폴리우레탄, 성능 제품 및 고급 재료의 수익이 감소했으며, 이는 더 높은 판매량에 의해 상쇄되었습니다. 회사는 단기적으로 중간 수준의 경제 활동이 있을 것으로 예상하지만, 비용 절감, 현금 흐름 및 자본 배분에 계속 집중할 것이라고 밝혔습니다.
Huntsman (NYSE: HUN) a annoncé ses résultats pour le deuxième trimestre 2024. Les indicateurs clés incluent des revenus de 1,574 million de dollars, une légère diminution par rapport aux 1,596 millions de dollars du Q2 2023. Le revenu net attribuable à Huntsman était de 22 millions de dollars, en hausse par rapport à 19 millions l'année précédente. Le revenu net dilué par action était de 0,13 dollar contre 0,11 dollar au Q2 2023. Le revenu net ajusté était de 24 millions de dollars, en baisse par rapport à 39 millions, et l'EBITDA ajusté était de 131 millions de dollars, en baisse par rapport à 156 millions de dollars au Q2 2023.
Pour le Q2 2024, le flux de trésorerie net provenant des activités opérationnelles était de 55 millions de dollars avec un flux de trésorerie libre de 5 millions de dollars, une amélioration par rapport à un besoin de liquidités de 11 millions de dollars au cours de la même période l'année dernière. Le PDG de Huntsman, Peter R. Huntsman, a souligné une amélioration de 50 millions de dollars de l'EBITDA ajusté par rapport au premier trimestre et une augmentation de 9 % des volumes de ventes par rapport à l'année précédente.
L'analyse par segment a montré des baisses de revenus dans les polyuréthanes, les produits de performance et les matériaux avancés en raison de prix de vente moyens plus bas, compensés par des volumes de vente plus élevés. L'entreprise s'attend à une activité économique modérée à court terme, mais reste concentrée sur le contrôle des coûts, le flux de trésorerie et l'allocation du capital.
Huntsman (NYSE: HUN) hat die Ergebnisse des zweiten Quartals 2024 bekannt gegeben. Wichtige Kennzahlen umfassen Umsätze von 1.574 Millionen Dollar, ein leichter Rückgang von 1.596 Millionen Dollar im Q2 2023. Der den Huntsman zugeschriebene Nettogewinn betrug 22 Millionen Dollar, ein Anstieg von 19 Millionen Dollar im Vorjahr. Der verwässerte Gewinn je Aktie betrug 0,13 Dollar im Vergleich zu 0,11 Dollar im Q2 2023. Der angepasste Nettogewinn lag bei 24 Millionen Dollar, ein Rückgang von 39 Millionen Dollar, und das angepasste EBITDA betrug 131 Millionen Dollar, ein Rückgang von 156 Millionen Dollar im Q2 2023.
Im Q2 2024 betrugen die durch betriebliche Tätigkeiten bereitgestellten Nettocashflüsse 55 Millionen Dollar bei einem freien Cashflow von 5 Millionen Dollar, eine Verbesserung im Vergleich zu einem Cashverbrauch von 11 Millionen Dollar im gleichen Zeitraum des Vorjahres. Der CEO von Huntsman, Peter R. Huntsman, hob eine Verbesserung des angepassten EBITDA um 50 Millionen Dollar gegenüber dem ersten Quartal und einen 9%igen Anstieg des Verkaufsvolumens im Jahresvergleich hervor.
Die Segmentanalyse zeigte Rückgänge bei den Umsätzen in Polyurethanen, Leistungsprodukten und fortschrittlichen Materialien aufgrund niedrigerer durchschnittlicher Verkaufspreise, die durch höhere Verkaufsvolumen ausgeglichen wurden. Das Unternehmen erwartet eine moderate wirtschaftliche Aktivität in naher Zukunft, konzentriert sich jedoch weiterhin auf Kostenkontrolle, Cashflow und Kapitalallokation.
- Q2 2024 net income increased to $22 million from $19 million in Q2 2023.
- Diluted income per share rose to $0.13 from $0.11 in Q2 2023.
- Net cash provided by operating activities reached $55 million.
- Free cash flow for Q2 2024 was $5 million, compared to a cash usage of $11 million last year.
- Sales volumes grew by 9% year over year.
- Revenues declined to $1,574 million from $1,596 million in Q2 2023.
- Adjusted net income fell to $24 million from $39 million in Q2 2023.
- Adjusted EBITDA decreased to $131 million from $156 million in Q2 2023.
- Performance Products segment revenues fell due to lower average selling prices.
- Polyurethanes and Advanced Materials segments experienced declines in adjusted EBITDA.
Second Quarter Highlights
- Second quarter 2024 net income attributable to Huntsman of
$22 million $19 million $0.13 $0.11 - Second quarter 2024 adjusted net income attributable to Huntsman of
$24 million $39 million $0.14 $0.22 - Second quarter 2024 adjusted EBITDA of
$131 million $156 million - Second quarter 2024 net cash provided by operating activities from continuing operations was
$55 million $5 million $11 million
Three months ended | Six months ended | |||||||
June 30, | June 30, | |||||||
In millions, except per share amounts | 2024 | 2023 | 2024 | 2023 | ||||
Revenues | $ 1,574 | $ 1,596 | $ 3,044 | $ 3,202 | ||||
Net income (loss) attributable to Huntsman Corporation | $ 22 | $ 19 | $ (15) | $ 172 | ||||
Adjusted net income(1) | $ 24 | $ 39 | $ 13 | $ 76 | ||||
Diluted income (loss) per share | $ 0.13 | $ 0.11 | $ (0.09) | $ 0.94 | ||||
Adjusted diluted income per share(1) | $ 0.14 | $ 0.22 | $ 0.08 | $ 0.42 | ||||
Adjusted EBITDA(1) | $ 131 | $ 156 | $ 212 | $ 292 | ||||
Net cash provided by (used in) operating activities from continuing operations | $ 55 | $ 40 | $ (8) | $ (82) | ||||
Free cash flow from continuing operations(2) | $ 5 | $ (11) | $ (100) | $ (179) | ||||
See end of press release for footnote explanations and reconciliations of non-GAAP measures. | ||||||||
Peter R. Huntsman, Chairman, President, and CEO, commented:
"Our second quarter 2024 was consistent with our expectations and represented a
Segment Analysis for 2Q24 Compared to 2Q23
Polyurethanes
The decrease in revenues in our Polyurethanes segment for the three months ended June 30, 2024 compared to the same period of 2023 was primarily due to lower MDI average selling prices, partially offset by higher sales volumes. MDI average selling prices decreased primarily due to less favorable supply and demand dynamics. Sales volumes increased due to improved demand and share gains in certain markets. The decrease in segment adjusted EBITDA was primarily due to lower MDI average selling prices and lower equity earnings from our minority-owned joint venture in
Performance Products
The decrease in revenues in our Performance Products segment for the three months ended June 30, 2024 compared to the same period of 2023 was primarily due to lower average selling prices, partially offset by higher sales volumes. Average selling prices decreased primarily due to competitive pressure, particularly in
Advanced Materials
The decrease in revenues in our Advanced Materials segment for the three months ended June 30, 2024 compared to the same period of 2023 was primarily due to lower average selling prices, partially offset by higher sales volumes. Average selling prices decreased primarily due to unfavorable sales mix. Sales volumes increased in our aerospace and infrastructure markets driven by market recovery. The increase in segment adjusted EBITDA was primarily due to favorable variable margins resulting from lower raw materials costs, partially offset by higher fixed costs.
Corporate, LIFO and other
For the three months ended June 30, 2024, adjusted EBITDA from Corporate and other was a loss of
Liquidity and Capital Resources
During the three months ended June 30, 2024, our free cash flow from continuing operations was
During the three months ended June 30, 2024, we spent
Income Taxes
In the second quarter of 2024, our effective tax rate was
Earnings Conference Call Information
We will hold a conference call to discuss our second quarter 2024 financial results on Tuesday, August 6, 2024, at 10:00 a.m. ET.
Webcast link: https://event.choruscall.com/mediaframe/webcast.html?webcastid=8mIXrKvK
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 2024, a member of management is expected to present at:
Mizuho Industrials & Chemicals Conference, August 14, 2024
Seaport Research Partners Summer Investor Conference, August 20, 2024
Jefferies Industrials Conference, September 4, 2024
UBS Global Materials Conference, September 5, 2024
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 | 2024 | 2023 | 2024 | 2023 | ||||
Revenues | $ 1,574 | $ 1,596 | $ 3,044 | $ 3,202 | ||||
Cost of goods sold | 1,331 | 1,342 | 2,600 | 2,679 | ||||
Gross profit | 243 | 254 | 444 | 523 | ||||
Operating expenses, net | 204 | 196 | 413 | 411 | ||||
Loss (gain) on acquisition of assets, net | 1 | - | (51) | - | ||||
Prepaid asset write-off | - | - | 71 | - | ||||
Restructuring, impairment and plant closing costs | 4 | 8 | 15 | 1 | ||||
Operating income (loss) | 34 | 50 | (4) | 111 | ||||
Interest expense, net | (20) | (15) | (39) | (33) | ||||
Equity in income of investment in unconsolidated affiliates | 18 | 28 | 37 | 40 | ||||
Other income (expense), net | 12 | (2) | 14 | (2) | ||||
Income from continuing operations before income taxes | 44 | 61 | 8 | 116 | ||||
Income tax (expense) benefit | (13) | (28) | 7 | (39) | ||||
Income from continuing operations | 31 | 33 | 15 | 77 | ||||
Income (loss) from discontinued operations, net of tax(3) | 7 | (2) | - | 120 | ||||
Net income | 38 | 31 | 15 | 197 | ||||
Net income attributable to noncontrolling interests | (16) | (12) | (30) | (25) | ||||
Net income (loss) attributable to Huntsman Corporation | $ 22 | $ 19 | $ (15) | $ 172 | ||||
Adjusted EBITDA(1) | $ 131 | $ 156 | $ 212 | $ 292 | ||||
Adjusted net income (1) | $ 24 | $ 39 | $ 13 | $ 76 | ||||
Basic income (loss) per share | $ 0.13 | $ 0.11 | $ (0.09) | $ 0.95 | ||||
Diluted income (loss) per share | $ 0.13 | $ 0.11 | $ (0.09) | $ 0.94 | ||||
Adjusted diluted income per share(1) | $ 0.14 | $ 0.22 | $ 0.08 | $ 0.42 | ||||
Common share information: | ||||||||
Basic weighted average shares | 172 | 179 | 172 | 181 | ||||
Diluted weighted average shares | 173 | 180 | 172 | 182 | ||||
Diluted shares for adjusted diluted income per share | 173 | 180 | 173 | 182 | ||||
See end of press release for footnote explanations. | ||||||||
Table 2 – Results of Operations by Segment | ||||||||||||
Three months ended | Six months ended | |||||||||||
June 30, | (Worse) / | June 30, | (Worse) / | |||||||||
In millions | 2024 | 2023 | Better | 2024 | 2023 | Better | ||||||
Segment Revenues: | ||||||||||||
Polyurethanes | $ 1,001 | $ 1,012 | (1 %) | $ 1,927 | $ 2,003 | (4 %) | ||||||
Performance Products | 299 | 307 | (3 %) | 590 | 641 | (8 %) | ||||||
Advanced Materials | 279 | 284 | (2 %) | 540 | 573 | (6 %) | ||||||
Total Reportable Segments' Revenues | 1,579 | 1,603 | (1 %) | 3,057 | 3,217 | (5 %) | ||||||
Intersegment Eliminations | (5) | (7) | n/m | (13) | (15) | n/m | ||||||
Total Revenues | $ 1,574 | $ 1,596 | (1 %) | $ 3,044 | $ 3,202 | (5 %) | ||||||
Segment Adjusted EBITDA(1): | ||||||||||||
Polyurethanes | $ 80 | $ 88 | (9 %) | $ 119 | $ 154 | (23 %) | ||||||
Performance Products | 46 | 55 | (16 %) | 88 | 126 | (30 %) | ||||||
Advanced Materials | 52 | 51 | 2 % | 95 | 99 | (4 %) | ||||||
Total Reportable Segments' Adjusted EBITDA(1) | 178 | 194 | (8 %) | 302 | 379 | (20 %) | ||||||
Corporate, LIFO and other | (47) | (38) | (24 %) | (90) | (87) | (3 %) | ||||||
Total Adjusted EBITDA(1) | $ 131 | $ 156 | (16 %) | $ 212 | $ 292 | (27 %) | ||||||
n/m = not meaningful | ||||||||||||
See end of press release for footnote explanations. | ||||||||||||
Table 3 – Factors Impacting Sales Revenue | ||||||||||
Three months ended | ||||||||||
June 30, 2024 vs. 2023 | ||||||||||
Average Selling Price(a) | ||||||||||
Local | Exchange | Sales | ||||||||
Currency & Mix | Rate | Volumes(b) | Total | |||||||
Polyurethanes | (9 %) | (1 %) | 9 % | (1 %) | ||||||
Performance Products | (11 %) | 0 % | 8 % | (3 %) | ||||||
Advanced Materials | (10 %) | (1 %) | 9 % | (2 %) | ||||||
Six months ended | ||||||||||
June 30, 2024 vs. 2023 | ||||||||||
Average Selling Price(a) | ||||||||||
Local | Exchange | Sales | ||||||||
Currency & Mix | Rate | Volumes(b) | Total | |||||||
Polyurethanes | (13 %) | 0 % | 9 % | (4 %) | ||||||
Performance Products | (14 %) | 0 % | 6 % | (8 %) | ||||||
Advanced Materials | (10 %) | 0 % | 4 % | (6 %) | ||||||
(a) Excludes sales from tolling arrangements, by-products and raw materials. | ||||||||||
(b) Excludes sales from by-products and raw materials. | ||||||||||
Table 4 – Reconciliation of | ||||||||||||||||
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 | 2024 | 2023 | 2024 | 2023 | 2024 | 2023 | 2024 | 2023 | ||||||||
Net income | $ 38 | $ 31 | $ 38 | $ 31 | $ 0.22 | $ 0.18 | ||||||||||
Net income attributable to noncontrolling interests | (16) | (12) | (16) | (12) | (0.09) | (0.07) | ||||||||||
Net income attributable to Huntsman Corporation | 22 | 19 | 22 | 19 | 0.13 | 0.11 | ||||||||||
Interest expense, net from continuing operations | 20 | 15 | ||||||||||||||
Income tax expense from continuing operations | 13 | 28 | $ (13) | $ (28) | ||||||||||||
Income tax (benefit) expense from discontinued operations(3) | (7) | 1 | ||||||||||||||
Depreciation and amortization from continuing operations | 75 | 70 | ||||||||||||||
Business acquisition and integration expenses and purchase accounting inventory adjustments, net | 1 | 2 | 1 | (1) | 2 | 1 | 0.01 | 0.01 | ||||||||
EBITDA / Loss (income) from discontinued operations(3) | - | 1 | N/A | N/A | (7) | 2 | (0.04) | 0.01 | ||||||||
Gain on sale of business/assets | - | (1) | - | - | - | (1) | - | (0.01) | ||||||||
Fair value adjustments to Venator investment, net and other tax matter adjustments | (7) | 4 | 2 | - | (5) | 4 | (0.03) | 0.02 | ||||||||
Certain legal and other settlements and related expenses | 1 | 1 | (1) | - | - | 1 | - | 0.01 | ||||||||
Certain non-recurring information technology project implementation costs | - | 1 | - | (1) | - | - | - | - | ||||||||
Amortization of pension and postretirement actuarial losses | 8 | 7 | - | (1) | 8 | 6 | 0.05 | 0.03 | ||||||||
Restructuring, impairment and plant closing and transition costs | 5 | 8 | (1) | (1) | 4 | 7 | 0.02 | 0.04 | ||||||||
Adjusted(1) | $ 131 | $ 156 | $ (12) | $ (32) | 24 | 39 | $ 0.14 | $ 0.22 | ||||||||
Adjusted income tax expense(1) | 12 | 32 | ||||||||||||||
Net income attributable to noncontrolling interests | 16 | 12 | ||||||||||||||
Adjusted pre-tax income (1) | $ 52 | $ 83 | ||||||||||||||
Adjusted effective tax rate(4) | 23 % | 39 % | ||||||||||||||
Effective tax rate | 30 % | 46 % | ||||||||||||||
Income Tax | Net Income | Diluted Income | ||||||||||||||
EBITDA | Benefit (Expense) | (Loss) | (Loss) 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 | 2024 | 2023 | 2024 | 2023 | 2024 | 2023 | 2024 | 2023 | ||||||||
Net income | $ 15 | $ 197 | $ 15 | $ 197 | $ 0.09 | $ 1.08 | ||||||||||
Net income attributable to noncontrolling interests | (30) | (25) | (30) | (25) | (0.17) | (0.14) | ||||||||||
Net (loss) income attributable to Huntsman Corporation | (15) | 172 | (15) | 172 | (0.09) | 0.94 | ||||||||||
Interest expense, net from continuing operations | 39 | 33 | ||||||||||||||
Income tax (benefit) expense from continuing operations | (7) | 39 | $ 7 | $ (39) | ||||||||||||
Income tax (benefit) expense from discontinued operations(3) | (8) | 16 | ||||||||||||||
Depreciation and amortization from continuing operations | 144 | 139 | ||||||||||||||
Business acquisition and integration expenses and purchase accounting inventory adjustments, net | 21 | 3 | (17) | (1) | 4 | 2 | 0.02 | 0.01 | ||||||||
EBITDA / Loss (income) from discontinued operations(3) | 8 | (136) | N/A | N/A | - | (120) | - | (0.66) | ||||||||
Gain on sale of business/assets | - | (1) | - | - | - | (1) | - | (0.01) | ||||||||
Fair value adjustments to Venator investment, net and other tax matter adjustments | (7) | 5 | 2 | - | (5) | 5 | (0.03) | 0.03 | ||||||||
Certain legal and other settlements and related expenses | 2 | 2 | (1) | - | 1 | 2 | 0.01 | 0.01 | ||||||||
Certain non-recurring information technology project implementation costs | - | 3 | - | (1) | - | 2 | - | 0.01 | ||||||||
Amortization of pension and postretirement actuarial losses | 16 | 15 | (1) | (2) | 15 | 13 | 0.09 | 0.07 | ||||||||
Restructuring, impairment and plant closing and transition costs | 19 | 2 | (6) | (1) | 13 | 1 | 0.08 | 0.01 | ||||||||
Adjusted(1) | $ 212 | $ 292 | $ (16) | $ (44) | 13 | 76 | $ 0.08 | $ 0.42 | ||||||||
Adjusted income tax expense(1) | 16 | 44 | ||||||||||||||
Net income attributable to noncontrolling interests | 30 | 25 | ||||||||||||||
Adjusted pre-tax income(1) | $ 59 | $ 145 | ||||||||||||||
Adjusted effective tax rate(4) | 27 % | 30 % | ||||||||||||||
Effective tax rate | N/A | 34 % | ||||||||||||||
N/A = not applicable | ||||||||||||||||
See end of press release for footnote explanations. | ||||||||||||||||
Table 5 – Balance Sheets | ||||
June 30, | December 31, | |||
In millions | 2024 | 2023 | ||
Cash | $ 335 | $ 540 | ||
Accounts and notes receivable, net | 877 | 753 | ||
Inventories | 923 | 867 | ||
Other current assets | 119 | 154 | ||
Property, plant and equipment, net | 2,549 | 2,376 | ||
Other noncurrent assets | 2,514 | 2,558 | ||
Total assets | $ 7,317 | $ 7,248 | ||
Accounts payable | $ 731 | $ 719 | ||
Other current liabilities | 422 | 441 | ||
Current portion of debt | 576 | 12 | ||
Long-term debt | 1,344 | 1,676 | ||
Other noncurrent liabilities | 908 | 922 | ||
Huntsman Corporation stockholders' equity | 3,114 | 3,251 | ||
Noncontrolling interests in subsidiaries | 222 | 227 | ||
Total liabilities and equity | $ 7,317 | $ 7,248 | ||
Table 6 – Outstanding Debt | ||||
June 30, | December 31, | |||
In millions | 2024 | 2023 | ||
Debt: | ||||
Revolving credit facility | $ 245 | $ - | ||
Senior notes | 1,460 | 1,471 | ||
Accounts receivable programs | 174 | 169 | ||
Variable interest entities | 21 | 26 | ||
Other debt | 20 | 22 | ||
Total debt - excluding affiliates | 1,920 | 1,688 | ||
Total cash | 335 | 540 | ||
Net debt - excluding affiliates(5) | $ 1,585 | $ 1,148 | ||
See end of press release for footnote explanations. | ||||
Table 7 – Summarized Statements of Cash Flows | ||||||||
Three months ended | Six months ended | |||||||
June 30, | June 30, | |||||||
In millions | 2024 | 2023 | 2024 | 2023 | ||||
Total cash at beginning of period | $ 552 | $ 615 | $ 540 | $ 654 | ||||
Net cash provided by (used in) operating activities from continuing operations | 55 | 40 | (8) | (82) | ||||
Net cash used in operating activities from discontinued operations(3) | (9) | (4) | (11) | (36) | ||||
Net cash (used in) provided by investing activities from continuing operations | (50) | (49) | (80) | 444 | ||||
Net cash used in investing activities from discontinued operations(3) | - | - | - | (4) | ||||
Net cash used in financing activities | (210) | (85) | (102) | (464) | ||||
Effect of exchange rate changes on cash | (3) | (15) | (4) | (10) | ||||
Total cash at end of period | $ 335 | $ 502 | $ 335 | $ 502 | ||||
Free cash flow from continuing operations(2): | ||||||||
Net cash provided by (used in) operating activities from continuing operations | $ 55 | $ 40 | $ (8) | $ (82) | ||||
Capital expenditures | (50) | (51) | (92) | (97) | ||||
Free cash flow from continuing operations(2) | $ 5 | $ (11) | $ (100) | $ (179) | ||||
Supplemental cash flow information: | ||||||||
Cash paid for interest | $ (29) | $ (24) | $ (41) | $ (34) | ||||
Cash paid for income taxes | (29) | (33) | (44) | (62) | ||||
Cash paid for restructuring and integration | (6) | (16) | (23) | (38) | ||||
Cash paid for pensions | (7) | (9) | (17) | (20) | ||||
Depreciation and amortization from continuing operations | 75 | 70 | 144 | 139 | ||||
Change in primary working capital: | ||||||||
Accounts and notes receivable | $ (43) | $ 23 | $ (130) | $ - | ||||
Inventories | (33) | 27 | (71) | (23) | ||||
Accounts payable | (8) | (123) | 22 | (198) | ||||
Total change in primary working capital | $ (84) | $ (73) | $ (179) | $ (221) | ||||
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 (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 |
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 |
(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. |
About Huntsman:
Huntsman Corporation is a publicly traded global manufacturer and marketer of differentiated and specialty chemicals with 2023 revenues of approximately
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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, high energy costs in
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SOURCE Huntsman Corporation
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