Huntsman Announces Third Quarter 2020 Earnings; Solid Recovery Trends in Core Markets

Rhea-AI Summary

Huntsman Corporation (HUN) reported third quarter 2020 results with revenues of $1.51 billion, down 10% year-over-year. Net income increased to $57 million, or $0.22 per diluted share, while adjusted net income fell to $70 million from $95 million in Q3 2019. Adjusted EBITDA was $188 million, representing a 13% decrease. The company expects to realize $250 million in cash benefits from a share sale and tax savings. Huntsman also plans to close the sale of its India-based DIY adhesives business for up to $285 million shortly.

Positive

• Net income increased to $57 million from $41 million YoY.
• Total liquidity of approximately $2.5 billion.
• Expected total cash benefits of around $250 million from share sale and tax savings.
• On track for $100 million in annualized savings by the end of 2021.

Negative

• Revenues decreased by 10% year-over-year.
• Adjusted net income fell to $70 million from $95 million YoY.
• Adjusted EBITDA down 13% from Q3 2019.
• Free cash flow plummeted to $11 million from $194 million YoY.

THE WOODLANDS, Texas, Oct. 29, 2020 /PRNewswire/ --

Third Quarter Highlights

• Third quarter 2020 net income of $57 million compared to net income of $41 million in the prior year period; third quarter 2020 diluted earnings per share of $0.22 compared to diluted earnings per share of $0.13 in the prior year period.
• Third quarter 2020 adjusted net income of $70 million compared to adjusted net income of $95 million in the prior year period; third quarter 2020 adjusted diluted earnings per share of $0.32 compared to adjusted diluted earnings per share of $0.41 in the prior year period.
• Third quarter 2020 adjusted EBITDA of $188 million compared to $215 million in the prior year period.
• Third quarter 2020 net cash provided by operating activities from continuing operations was $65 million. Free cash flow from continuing operations was $11 million for the third quarter 2020 and adjusted free cash flow from continuing operations was $189 million.
• Balance sheet remains strong with a net leverage of 1.6x and total liquidity is approximately $2.5 billion.
• Sale of Venator Materials PLC shares to funds advised by SK Capital is on track to close near year end. Together with estimated cash tax savings of approximately $150 million, which this transaction facilitates, we expect to secure an aggregate total cash benefit of approximately $250 million.
• In excess of $100 million of previously announced targeted annualized savings and acquisition integration synergies remains on track to be achieved by the end of 2021.
• On October 28, 2020, Huntsman announced the agreement to sell its India based Do-It-Yourself consumer adhesives business for up to $285 million to Pidilite Industries Ltd. The transaction value represents a 2019 adjusted EBITDA multiple of ~15x and is expected to close within the coming week.

		Three months ended				Nine months ended
		September 30,				September 30,
In millions, except per share amounts		2020		2019		2020		2019
Revenues		$     1,510		$     1,687		$     4,350		$     5,140
Net income		$         57		$         41		$       706		$       290
Adjusted net income(1)		$         70		$         95		$       105		$       288
Diluted income per share		$      0.22		$      0.13		$      3.13		$      1.12
Adjusted diluted income per share(1)		$      0.32		$      0.41		$      0.47		$      1.24
Adjusted EBITDA(1)		$       188		$       215		$       407		$       664
Net cash provided by operating activities from continuing operations		$         65		$       257		$       110		$       434
Free cash flow from continuing operations(2)		$         11		$       194		$        (60)		$       253
Adjusted free cash flow from continuing operations(6)		$       189		$       194		$       128		$       253
See end of press release for footnote explanations and reconciliations of non-GAAP measures.

Huntsman Corporation (NYSE: HUN) today reported third quarter 2020 results with revenues of $1,510 million, net income of $57 million, adjusted net income of $70 million and adjusted EBITDA of $188 million. 

Peter R. Huntsman, Chairman, President and CEO, commented:

"The third quarter proved to be better than we had anticipated with improving conditions in almost all of our businesses except for commercial aircraft. Although the global community continues to face significant challenges around COVID-19, we see positive momentum entering the fourth quarter.  We remain fully on track in integrating our two downstream acquisitions completed earlier this year and in delivering in excess of $100 million of annualized synergies and savings from our previously announced cost optimization initiative by the end of 2021. We are also on track to close on the sale of our Venator shares near the end of 2020 further bolstering our liquidity and balance sheet with approximately $250 million of total related cash. During 2020, a year that history will remember for unprecedented challenges, more than ever before Huntsman has become significantly stronger, further focused on strategically growing its differentiated businesses and enhancing shareholder value."

Segment Analysis for 3Q20 Compared to 3Q19

Polyurethanes

The decrease in revenues in our Polyurethanes segment for the three months ended September 30, 2020 compared to the same period of 2019 was primarily due to lower MDI average selling prices.  MDI average selling prices decreased across most major markets in relation to the global economic slowdown resulting from the COVID-19 pandemic.  Overall polyurethanes sales volumes were roughly flat, when including sales volumes in connection with the Icynene-Lapolla Acquisition. The increase in segment adjusted EBITDA was primarily due to lower raw material costs and lower fixed costs as well as additional sales volumes in connection with the Icynene-Lapolla Acquisition, partially offset by lower MDI pricing.

Performance Products

The decrease in revenues in our Performance Products segment for the three months ended September 30, 2020 compared to the same period of 2019 was due to lower sales volumes and lower average selling prices. Sales volumes decreased primarily in relation to the global economic slowdown. Average selling prices decreased primarily due to lower raw material costs. The decrease in segment adjusted EBITDA was primarily due to lower sales volumes, partially offset by higher margins in our performance amines business and lower fixed costs.

Advanced Materials

The decrease in revenues in our Advanced Materials segment for the three months ended September 30, 2020 compared to the same period in 2019 was due to lower sales volumes and lower overall average selling prices. Sales volumes decreased across all markets and regions, except in our global power market, primarily in relation to the global economic slowdown and customer destocking. Despite local currency average selling prices remaining unchanged, overall average selling prices decreased due to the impact of a stronger U.S. dollar against major international currencies. The decrease in segment adjusted EBITDA was primarily due to lower sales volumes, partially offset by lower fixed costs.

Textile Effects

The decrease in revenues in our Textile Effects segment for the three months ended September 30, 2020 compared to the same period of 2019 was due to lower sales volumes and lower average selling prices. Sales volumes decreased primarily due to weaker demand in relation to the global economic slowdown. Average selling prices decreased as a result of product mix change, competitive market pressures and the impact of a stronger U.S. dollar against major international currencies. The decrease in segment adjusted EBITDA was primarily due to lower sales revenues and lower capitalization of indirect costs because of reduced production, partially offset by lower raw material costs and lower fixed costs.

Corporate, LIFO and other

For the three months ended September 30, 2020, adjusted EBITDA from Corporate and other for Huntsman Corporation decreased by $1 million to a loss of $37 million from a loss of $36 million for the same period of 2019.

Liquidity and Capital Resources

During the three months ended September 30, 2020, our adjusted free cash flow from continuing operations was $189 million as compared to $194 million in the prior year period.  As of September 30, 2020, we had approximately $2.5 billion of combined cash and unused borrowing capacity.

During the three months ended September 30, 2020, we spent $54 million on capital expenditures as compared to $63 million in the same period of 2019.  For 2020 we expect to spend between $250 million to $255 million on capital expenditures.

Year to date we paid approximately $188 million in taxes related to the sale of our Chemical Intermediates Businesses, which was completed on January 3, 2020, and we expect to spend an additional $187 million within the fourth quarter.  However, depending upon the timing of the completion of the sale of most of our Venator shares, which is expected near year-end, the net amount of taxes to be paid in the fourth quarter may be reduced by approximately $150 million.    

Income Taxes

In the third quarter 2020, our adjusted effective tax rate was 23%.  For 2020, our adjusted effective tax rate is expected to be approximately 20% - 22%.  We expect our forward adjusted effective tax rate will be approximately 22% - 24%. 

Earnings Conference Call Information

We will hold a conference call to discuss our third quarter 2020 financial results on Thursday, October 29, 2020 at 10:00 a.m. ET.

Webcast link: https://78449.themediaframe.com/dataconf/productusers/hun/mediaframe/41067/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 fourth quarter 2020, a member of management is expected to present at:
Morgan Stanley Virtual Global Chemicals Conference on November 10, 2020
Citi Basic Materials Virtual Conference on December 1, 2020

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				Nine months ended
		September 30,				September 30,
In millions, except per share amounts		2020		2019		2020		2019
Revenues		$     1,510		$     1,687		$     4,350		$     5,140
Cost of goods sold		1,231		1,347		3,612		4,068
Gross profit		279		340		738		1,072
Operating expenses		208		231		660		695
Restructuring, impairment and plant closing costs (credits)		12		(43)		34		(42)
Operating income		59		152		44		419
Interest expense		(24)		(27)		(63)		(86)
Equity in income of investment in unconsolidated affiliates		21		19		25		41
Fair value adjustments to Venator investment		6		(148)		(100)		(90)
Loss on early extinguishment of debt		-		-		-		(23)
Other income, net		10		7		27		16
Income (loss) from continuing operations before income taxes		72		3		(67)		277
Income tax expense		(15)		(30)		(9)		(113)
Income (loss) from continuing operations		57		(27)		(76)		164
Income from discontinued operations, net of tax(3)		-		68		782		126
Net income		57		41		706		290
Net income attributable to noncontrolling interests, net of tax		(9)		(11)		(15)		(31)
Net income attributable to Huntsman Corporation		$         48		$         30		$       691		$       259
Adjusted EBITDA(1)		$       188		$       215		$       407		$       664
Adjusted net income(1)		$         70		$         95		$       105		$       288
Basic income per share		$      0.22		$      0.13		$      3.13		$      1.12
Diluted income per share		$      0.22		$      0.13		$      3.13		$      1.12
Adjusted diluted income per share(1)		$      0.32		$      0.41		$      0.47		$      1.24
Common share information:
Basic weighted average shares		220		227		221		230
Diluted weighted average shares		221		227		221		232
Diluted shares for adjusted diluted income per share		221		229		222		232
See end of press release for footnote explanations.

 

 

Table 2 – Results of Operations by Segment
		Three months ended						Nine months ended
		September 30,				Better /		September 30,				Better /
In millions		2020		2019		(Worse)		2020		2019		(Worse)
Segment Revenues:
Polyurethanes		$       936		$       993		(6%)		$     2,554		$     2,931		(13%)
Performance Products		238		281		(15%)		758		880		(14%)
Advanced Materials		199		256		(22%)		632		803		(21%)
Textile Effects		142		179		(21%)		424		583		(27%)
Corporate and Eliminations		(5)		(22)		n/m		(18)		(57)		n/m
Total		$     1,510		$     1,687		(10%)		$     4,350		$     5,140		(15%)
Segment Adjusted EBITDA(1):
Polyurethanes		$       156		$       146		7%		$       271		$       426		(36%)
Performance Products		36		38		(5%)		123		125		(2%)
Advanced Materials		25		51		(51%)		103		159		(35%)
Textile Effects		8		16		(50%)		24		66		(64%)
Corporate, LIFO and other		(37)		(36)		(3%)		(114)		(112)		(2%)
Total		$       188		$       215		(13%)		$       407		$       664		(39%)
n/m = not meaningful
See end of press release for footnote explanations.

 

 

Table 3 – Factors Impacting Sales Revenue
		Three months ended
		September 30, 2020 vs. 2019
		Average Selling Price(a)
		Local		Exchange		Sales Mix		Sales
		Currency		Rate		& Other		Volume(b)		Total
Polyurethanes		(5%)		1%		(2%)		0%		(6%)
Performance Products		(3%)		1%		6%		(19%)		(15%)
Advanced Materials		0%		(1%)		(10%)		(11%)		(22%)
Textile Effects		(7%)		(2%)		1%		(13%)		(21%)
		Nine months ended
		September 30, 2020 vs. 2019
		Average Selling Price(a)
		Local		Exchange		Sales Mix		Sales
		Currency		Rate		& Other		Volume(b)		Total
Polyurethanes		(6%)		(1%)		0%		(6%)		(13%)
Performance Products		(5%)		(1%)		5%		(13%)		(14%)
Advanced Materials		1%		(2%)		(2%)		(18%)		(21%)
Textile Effects		(2%)		(2%)		(2%)		(21%)		(27%)
(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
		September 30,				September 30,				September 30,				September 30,
In millions, except per share amounts		2020		2019		2020		2019		2020		2019		2020		2019
Net income		$          57		$          41						$          57		$          41		$       0.26		$       0.18
Net income attributable to noncontrolling interests		(9)		(11)						(9)		(11)		(0.04)		(0.05)
Net income attributable to Huntsman Corporation		48		30						48		30		0.22		0.13
Interest expense from continuing operations		24		27
Income tax expense from continuing operations		15		30		$         (15)		$         (30)
Income tax expense from discontinued operations(3)		-		25
Depreciation and amortization from continuing operations		70		65
Depreciation and amortization from discontinued operations(3)		-		13
Business acquisition and integration expenses and purchase accounting inventory adjustments		9		3		(3)		(1)		6		2		0.03		0.01
EBITDA / Income from discontinued operations, net of tax(3)		-		(106)		N/A		N/A		-		(68)		-		(0.30)
Income from transition services arrangements		(1)		-		-		-		(1)		-		-		-
Fair value adjustments to Venator Investment(a)		(6)		148		-		-		(6)		148		(0.03)		0.65
Certain legal and other settlements and related (income) expenses		(4)		1		1		-		(3)		1		(0.01)		-
Certain non-recurring information technology project implementation costs		1		1		-		-		1		1		-		-
Amortization of pension and postretirement actuarial losses		20		16		(4)		(5)		16		11		0.07		0.05
Restructuring, impairment and plant closing and transition costs (credits)		12		(43)		(3)		9		9		(34)		0.04		(0.15)
Plant incident remediation costs		-		5		-		(1)		-		4		-		0.02
Adjusted(1)		$        188		$        215		$         (24)		$         (28)		$          70		$          95		$       0.32		$       0.41
Adjusted income tax expense(1)										$          24		$          28
Net income attributable to noncontrolling interests, net of tax										9		11
Adjusted pre-tax income(1)										$        103		$        134
Adjusted effective tax rate(4)										23%		21%
Effective tax rate										21%		n/m
						Income Tax								Diluted Income
		EBITDA				(Expense) Benefit				Net Income				Per Share
		Nine months ended				Nine months ended				Nine months ended				Nine months ended
		September 30,				September 30,				September 30,				September 30,
In millions, except per share amounts		2020		2019		2020		2019		2020		2019		2020		2019
Net income		$        706		$        290						$        706		$        290		$       3.20		$       1.25
Net income attributable to noncontrolling interests		(15)		(31)						(15)		(31)		(0.07)		(0.13)
Net income attributable to Huntsman Corporation		691		259						691		259		3.13		1.12
Interest expense from continuing operations		63		86
Income tax expense from continuing operations		9		113		$          (9)		$       (113)
Income tax expense from discontinued operations(3)		239		44
Depreciation and amortization from continuing operations		206		201
Depreciation and amortization from discontinued operations(3)		-		59
Business acquisition and integration expenses and purchase accounting inventory adjustments		30		4		(6)		(1)		24		3		0.11		0.01
EBITDA / Income from discontinued operations, net of tax(3)		(1,021)		(229)		N/A		N/A		(782)		(126)		(3.54)		(0.54)
U.S. tax reform impact on tax expense		-		-		-		3		-		3		-		0.01
Impact of Switzerland income tax rate change		-		-		-		32		-		32		-		0.14
Gain on sale of businesses/assets		(1)		-		-		-		(1)		-		-		-
Income from transition services arrangements		(6)		-		1		-		(5)		-		(0.02)		-
Fair value adjustments to Venator Investment(a)		100		90		-		-		100		90		0.45		0.39
Loss on early extinguishment of debt		-		23		-		(5)		-		18		-		0.08
Certain legal and other settlements and related expenses		2		1		-		-		2		1		0.01		-
Certain non-recurring information technology project implementation costs		3		1		-		-		3		1		0.01		-
Amortization of pension and postretirement actuarial losses		57		49		(12)		(13)		45		36		0.20		0.16
Restructuring, impairment and plant closing and transition costs (credits)		34		(42)		(7)		9		27		(33)		0.12		(0.14)
Plant incident remediation costs		1		5		-		(1)		1		4		-		0.02
Adjusted(1)		$        407		$        664		$         (33)		$         (89)		$        105		$        288		$       0.47		$       1.24
Adjusted income tax expense(1)										$          33		$          89
Net income attributable to noncontrolling interests, net of tax										15		31
Adjusted pre-tax income(1)										$        153		$        408
Adjusted effective tax rate(4)										22%		22%
Effective tax rate										(13%)		41%
(a) Represents the changes in market value in Huntsman's remaining interesting in Venator.
N/A = not applicable
See end of press release for footnote explanations.

 

 

Table 5 – Selected Balance Sheet Items
		September 30,		December 31,
In millions		2020		2019
Cash		$            1,168		$              525
Accounts and notes receivable, net		889		953
Inventories		819		914
Other current assets		125		155
Current assets held for sale		-		1,208
Property, plant and equipment, net		2,477		2,383
Other noncurrent assets		2,619		2,182
Total assets		$            8,097		$            8,320
Accounts payable		$              725		$              822
Other current liabilities		629		462
Current portion of debt		567		212
Current liabilities held for sale		-		512
Long-term debt		1,557		2,177
Other noncurrent liabilities		1,242		1,311
Huntsman Corporation stockholders' equity		3,222		2,687
Noncontrolling interests in subsidiaries		155		137
Total liabilities and equity		$            8,097		$            8,320

 

 

Table 6 – Outstanding Debt
		September 30,		December 31,
In millions		2020		2019
Debt:
Revolving credit facility		$                 -		$                40
Accounts receivable programs		52		167
Term loan		-		103
Senior notes		2,003		1,963
Variable interest entities		50		65
Other debt		19		51
Total debt - excluding affiliates		2,124		2,389
Total cash		1,168		525
Net debt - excluding affiliates(5)		$              956		$            1,864
See end of press release for footnote explanations.

 

 

Table 7 – Summarized Statement of Cash Flows
		Three months ended				Nine months ended
		September 30,				September 30,
In millions		2020		2019		2020		2019
Total cash at beginning of period		$         1,254		$           449		$           525		$           340
Net cash provided by operating activities from continuing operations		65		257		110		434
Net cash provided by (used in) operating activities from discontinued operations(3)		18		126		(22)		222
Net cash (used in) provided by investing activities from continuing operations		(47)		(11)		1,105		(111)
Net cash used in investing activities from discontinued operations(3)		-		(13)		-		(31)
Net cash used in financing activities		(129)		(383)		(546)		(431)
Effect of exchange rate changes on cash		7		(7)		(4)		(5)
Total cash at end of period		$         1,168		$           418		$         1,168		$           418
Free cash flow from continuing operations(2):
Net cash provided by operating activities		$             65		$           257		$           110		$           434
Capital expenditures		(54)		(63)		(170)		(181)
Free cash flow from continuing operations		$             11		$           194		$            (60)		$           253
Taxes paid on sale of Chemical Intermediates Businesses		$           178		$              -		$           188		$              -
Adjusted free cash flow from continuing operations(6):		$           189		$           194		$           128		$           253
Supplemental cash flow information:
Cash paid for interest		$              (9)		$            (12)		$            (49)		$            (65)
Cash paid for income taxes		(187)		(34)		(242)		(102)
Cash paid for restructuring and integration		(10)		(3)		(24)		(14)
Cash paid for pensions		(27)		(29)		(73)		(68)
Depreciation and amortization		70		65		206		201
Change in primary working capital:
Accounts and notes receivable		$            (76)		$           116		$           103		$             69
Inventories		75		(5)		154		19
Accounts payable		111		(4)		(85)		(16)
Total change in primary working capital		$           110		$           107		$           172		$             72
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 costs (credits); and further adjusted for certain other items set forth in reconciliation of adjusted EBITDA to net income (loss) 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 costs (credits); and further adjusted for certain other items set forth in reconciliation of adjusted EBITDA to 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 do not provide reconciliations for adjusted EBITDA, adjusted net income (loss) or adjusted diluted income (loss) per share on a forward-looking basis because we are unable to provide a meaningful or accurate calculation or estimation of reconciling items and the information is not available without unreasonable effort. This is due to the inherent difficulty of forecasting the timing and amount of certain items, such as, but not limited to, (a) business acquisition and integration expenses and purchase accounting adjustments, (b) merger costs, and (c) certain legal and other settlements and related costs. Each of such adjustments has not yet occurred, are out of our control and/or cannot be reasonably predicted. For the same reasons, we are unable to address the probable significance of the unavailable information.
(2)	Management internally uses a 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. We have historically defined free cash flow as cash flows provided by operating activities and used in investing activities, excluding acquisition/disposition activities and including non-recurring separation costs. Starting with the quarter ended March 31, 2020, we updated our definition of free cash flow to a presentation more consistent with today's market standard of net cash provided by operating activities less capital expenditures. Using our updated definition, our free cash flow for the years ended December 31, 2019, 2018, and 2017 were $382 million, $453 million, and $438 million, respectively. Free cash flow is not a defined term under U.S. GAAP, and it should not be inferred that the entire free cash flow amount is available for discretionary expenditures.
(3)	During the third quarter 2019, we entered into an agreement to sell our Chemical Intermediates Businesses. Results from these businesses, including the associated gain on sale, was treated as discontinued operations until the completion of the sale on January 3, 2020.
(4)	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. We do not provide reconciliations for adjusted effective tax rate on a forward-looking basis because we are unable to provide a meaningful or accurate calculation or estimation of reconciling items and the information is not available without unreasonable effort. This is due to the inherent difficulty of forecasting the timing and amount of certain items, such as, but not limited to, (a) business acquisition and integration expenses, (b) merger costs, and (c) certain legal and other settlements and related costs. Each of such adjustments has not yet occurred, are out of our control and/or cannot be reasonably predicted. For the same reasons, we are unable to address the probable significance of the unavailable information.
(5)	Net debt is a measure we use to monitor how much debt we have after taking into account our total cash. We use it as an indicator of our overall financial position, and calculate it by taking our total debt, including the current portion, and subtracting total cash.
(6)	Adjusted free cash flow is defined as free cash flow, as described above, adjusted by excluding the taxes paid in connection with the sale of our Chemical Intermediates Businesses.  We believe that adjusted free cash flow provides a useful comparison from period to period because it excludes the impact of cash taxes unrelated to our operations. Additionally, the proceeds received from the sale of our Chemical Intermediates Businesses was classified as cash provided by investing activities and therefore was not factored into our free cash flow.  As result, we believe the adjustment to exclude the taxes paid associated with this sale provides a meaningful measure of our free cash flow.

 

About Huntsman:
Huntsman Corporation is a publicly traded global manufacturer and marketer of differentiated and specialty chemicals with 2019 revenues of approximately $7 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.com.

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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.

 

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SOURCE Huntsman Corporation

FAQ

What are Huntsman Corporation's Q3 2020 earnings results?

In Q3 2020, Huntsman Corporation (HUN) reported net income of $57 million, or $0.22 per share, with adjusted net income of $70 million.

How did Huntsman perform compared to Q3 2019?

Huntsman reported a 10% decrease in revenues year-over-year, from $1.69 billion to $1.51 billion, with adjusted EBITDA also down by 13%.

What is Huntsman's liquidity status as of Q3 2020?

Huntsman has approximately $2.5 billion in total liquidity as of Q3 2020.

What significant transactions did Huntsman announce in Q3 2020?

Huntsman announced the sale of its DIY consumer adhesives business for up to $285 million and is on track to close the sale of its Venator shares.