Huntsman Announces Third Quarter 2024 Earnings
Huntsman (NYSE: HUN) reported third quarter 2024 results with revenues of $1,540 million, a net loss of $33 million, and adjusted EBITDA of $131 million. The company experienced a diluted loss per share of $0.19, compared to $0.00 in the prior year period. Total volumes improved 5% versus the prior year with stable margins sequentially. The company successfully placed $350 million of senior notes due 2034 with a 5.7% coupon rate. Free cash flow from continuing operations was $93 million, down from $117 million in Q3 2023. Management noted stable conditions at trough levels in core construction and industrial markets, expecting these conditions to persist through Q4.
Huntsman (NYSE: HUN) ha riportato i risultati del terzo trimestre 2024 con ricavi di 1.540 milioni di dollari, una perdita netta di 33 milioni di dollari e un EBITDA rettificato di 131 milioni di dollari. L'azienda ha registrato una perdita diluita per azione di 0,19 dollari, rispetto a 0,00 dollari nello stesso periodo dell'anno precedente. I volumi totali sono migliorati del 5% rispetto all'anno scorso, con margini stabili su base sequenziale. L'azienda ha emesso con successo 350 milioni di dollari di note senior con scadenza nel 2034 e un tasso di interesse del 5,7%. Il flusso di cassa libero dalle operazioni continuative è stato di 93 milioni di dollari, in calo rispetto ai 117 milioni di dollari nel Q3 2023. La direzione ha evidenziato condizioni stabili a livelli minimi nei mercati principali della costruzione e dell'industria, prevedendo che queste condizioni persistano fino al Q4.
Huntsman (NYSE: HUN) reportó los resultados del tercer trimestre de 2024 con ingresos de 1,540 millones de dólares, una pérdida neta de 33 millones de dólares y un EBITDA ajustado de 131 millones de dólares. La compañía experimentó una pérdida diluida por acción de 0,19 dólares, en comparación con 0,00 dólares en el mismo periodo del año anterior. Los volúmenes totales mejoraron un 5% frente al año anterior, con márgenes estables de manera secuencial. La compañía colocó con éxito 350 millones de dólares en notas senior que vencerán en 2034 con una tasa de cupón del 5,7%. El flujo de caja libre de las operaciones continuas fue de 93 millones de dólares, por debajo de los 117 millones de dólares en el tercer trimestre de 2023. La gestión señaló condiciones estables en niveles bajos en los mercados clave de construcción e industrial, esperando que estas condiciones persistan hasta el cuarto trimestre.
헌츠먼 (NYSE: HUN)은 2024년 3분기 결과를 발표하면서 15억 4천만 달러의 수익, 3천3백만 달러의 순손실, 그리고 1억 3천1백만 달러의 조정 EBITDA를 기록했습니다. 회사는 주당 희석 손실이 0.19달러로, 지난해 같은 기간의 0.00달러와 비교되었습니다. 총 물량은 지난해 대비 5% 향상되었으며, 마진은 순차적으로 안정적이었습니다. 회사는 5.7% 쿠폰율로 만기가 2034년인 3억 5천만 달러의 선순위 채권을 성공적으로 발행했습니다. 지속적인 운영에서의 자유 현금 흐름은 9천3백만 달러로, 2023년 3분기의 1억 1천7백만 달러에서 감소했습니다. 경영진은 주요 건설 및 산업 시장의 최저 수준에서 안정적인 조건이 지속될 것으로 예상된다고 언급했습니다.
Huntsman (NYSE: HUN) a annoncé les résultats du troisième trimestre 2024 avec des revenus de 1,540 millions de dollars, une perte nette de 33 millions de dollars et un EBITDA ajusté de 131 millions de dollars. L'entreprise a subi une perte diluée par action de 0,19 dollar, contre 0,00 dollar au cours de la même période de l'année précédente. Les volumes totaux ont augmenté de 5 % par rapport à l'année dernière, avec des marges stables sur une base séquentielle. L'entreprise a réussi à émettre pour 350 millions de dollars de billets à ordre senior arrivant à échéance en 2034 avec un taux d'intérêt de 5,7 %. Le flux de trésorerie libre des opérations poursuivies était de 93 millions de dollars, en baisse par rapport à 117 millions de dollars au troisième trimestre 2023. La direction a noté des conditions stables à des niveaux bas sur les marchés principaux de la construction et de l'industrie, s'attendant à ce que ces conditions persistent jusqu'au quatrième trimestre.
Huntsman (NYSE: HUN) berichtete die Ergebnisse des dritten Quartals 2024 mit einem Umsatz von 1.540 Millionen Dollar, einem Nettoverlust von 33 Millionen Dollar und einem bereinigten EBITDA von 131 Millionen Dollar. Das Unternehmen verzeichnete einen verwässerten Verlust pro Aktie von 0,19 Dollar, verglichen mit 0,00 Dollar im Vorjahr. Die Gesamtvolumen verbesserten sich um 5% im Vergleich zum Vorjahr, während die Margen sequenziell stabil blieben. Das Unternehmen platzierte erfolgreich 350 Millionen Dollar an vorrangigen Anleihen mit Fälligkeit im Jahr 2034 und einem Kuponzinssatz von 5,7%. Der freie Cashflow aus fortgeführten Betrieben betrug 93 Millionen Dollar, rückläufig von 117 Millionen Dollar im Q3 2023. Das Management stellte fest, dass stabile Bedingungen auf Tiefstständen in den Kernmärkten Bau und Industrie herrschten und erwartete, dass diese Bedingungen bis zum Q4 anhalten werden.
- Total volumes improved 5% year-over-year
- Free cash flow from continuing operations was $93 million
- Successfully placed $350 million senior notes offering
- Strong liquidity position with $1.7 billion in combined cash and unused borrowing capacity
- Net loss of $33 million compared to breakeven in prior year period
- Adjusted EBITDA decreased to $131 million from $136 million year-over-year
- Adjusted diluted income per share declined to $0.10 from $0.15 year-over-year
- Higher effective tax rate of 115% compared to 64% in prior year
Insights
Huntsman's Q3 2024 results reveal concerning trends with a
The balance sheet shows increasing leverage with net debt rising to
The results highlight persistent weakness in Huntsman's core segments. Polyurethanes saw margin compression despite
The
Third Quarter Highlights
- Third quarter 2024 net loss attributable to Huntsman of
compared to net income of$33 million in the prior year period; third quarter 2024 diluted loss per share of$0 million compared to diluted income per share$0.19 in the prior year period.$0.00 - Third quarter 2024 adjusted net income attributable to Huntsman of
compared to adjusted net income of$17 million in the prior year period; third quarter 2024 adjusted diluted income per share of$27 million compared to adjusted diluted income per share of$0.10 in the prior year period.$0.15 - Third quarter 2024 adjusted EBITDA of
compared to$131 million in the prior year period.$136 million - Third quarter 2024 net cash provided by operating activities from continuing operations was
. Free cash flow from continuing operations was$134 million for the third quarter 2024 compared to$93 million in the prior year period.$117 million - Successfully placed
of senior notes due 2034 with a$350 million 5.7% coupon rate. The proceeds were used for general corporate purposes, including repayment of debt.
Three months ended | Nine months ended | |||||||
September 30, | September 30, | |||||||
In millions, except per share amounts | 2024 | 2023 | 2024 | 2023 | ||||
Revenues | $ 1,540 | $ 1,506 | $ 4,584 | $ 4,708 | ||||
Net (loss) income attributable to Huntsman Corporation | $ (33) | $ - | $ (48) | $ 172 | ||||
Adjusted net income(1) | $ 17 | $ 27 | $ 30 | $ 103 | ||||
Diluted (loss) income per share | $ (0.19) | $ - | $ (0.28) | $ 0.95 | ||||
Adjusted diluted income per share(1) | $ 0.10 | $ 0.15 | $ 0.17 | $ 0.57 | ||||
Adjusted EBITDA(1) | $ 131 | $ 136 | $ 343 | $ 428 | ||||
Net cash provided by operating activities from continuing operations | $ 134 | $ 167 | $ 126 | $ 85 | ||||
Free cash flow from continuing operations(2) | $ 93 | $ 117 | $ (7) | $ (62) | ||||
See end of press release for footnote explanations and reconciliations of non-GAAP measures. |
Peter R. Huntsman, Chairman, President, and CEO, commented:
"The third quarter was consistent with our outlook of a stable environment at trough conditions in our core construction and industrial markets. Total volumes for the Company did improve
Segment Analysis for 3Q24 Compared to 3Q23
Polyurethanes
The increase in revenues in our Polyurethanes segment for the three months ended September 30, 2024 compared to the same period of 2023 was primarily due to higher sales volumes, partially offset by lower MDI average selling prices. Sales volumes increased primarily due to improved demand and share gains in certain markets. MDI average selling prices decreased primarily due to less favorable supply and demand dynamics. The decrease in segment adjusted EBITDA was primarily due to lower MDI average selling prices and lower equity earnings from our minority-owned joint venture in
Performance Products
The increase in revenues in our Performance Products segment for the three months ended September 30, 2024 compared to the same period of 2023 was primarily due to higher sales volumes, partially offset by lower average selling prices. Sales volumes increased primarily due to improved demand in fuels and lubes and coatings and adhesives markets. Average selling prices decreased primarily due to competitive pressure. The decrease in segment adjusted EBITDA was primarily due to lower average selling prices and unfavorable sales mix, partially offset by higher sales volumes and lower fixed costs.
Advanced Materials
The decrease in revenues in our Advanced Materials segment for the three months ended September 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 coatings markets driven by market recovery, partially offset by lower demand in our industrial market. The decrease in segment adjusted EBITDA was primarily due to higher fixed costs.
Corporate, LIFO and other
For the three months ended September 30, 2024, adjusted EBITDA from Corporate and other was a loss of
Liquidity and Capital Resources
During the three months ended September 30, 2024, our free cash flow from continuing operations was
During the three months ended September 30, 2024, we spent
Income Taxes
In the third quarter of 2024, our effective tax rate was
Earnings Conference Call Information
We will hold a conference call to discuss our third quarter 2024 financial results on Tuesday, November 5, 2024, at 10:00 a.m. ET.
Webcast link: https://event.choruscall.com/mediaframe/webcast.html?webcastid=52266EEY
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 fourth quarter 2024, a member of management is expected to present at:
Morgan Stanley Global Chemicals, Agriculture and Packaging Conference, November 12, 2024
Citi's Basic Materials Conference, December 3, 2024
Goldman Sachs Industrials and Materials Conference, December 4, 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 | Nine months ended | |||||||
September 30, | September 30, | |||||||
In millions, except per share amounts | 2024 | 2023 | 2024 | 2023 | ||||
Revenues | $ 1,540 | $ 1,506 | $ 4,584 | $ 4,708 | ||||
Cost of goods sold | 1,306 | 1,275 | 3,906 | 3,954 | ||||
Gross profit | 234 | 231 | 678 | 754 | ||||
Operating expenses, net | 187 | 198 | 600 | 609 | ||||
Restructuring, impairment and plant closing costs | 5 | 6 | 20 | 7 | ||||
Gain on acquisition of assets, net | - | - | (51) | - | ||||
Prepaid asset write-off | - | - | 71 | - | ||||
Operating income | 42 | 27 | 38 | 138 | ||||
Interest expense, net | (21) | (15) | (60) | (48) | ||||
Equity in income of investment in unconsolidated affiliates | 5 | 30 | 42 | 70 | ||||
Other income (expense), net | 8 | - | 22 | (2) | ||||
Income from continuing operations before income taxes | 34 | 42 | 42 | 158 | ||||
Income tax expense | (39) | (27) | (32) | (66) | ||||
(Loss) income from continuing operations | (5) | 15 | 10 | 92 | ||||
(Loss) income from discontinued operations, net of tax(3) | (12) | - | (12) | 120 | ||||
Net (loss) income | (17) | 15 | (2) | 212 | ||||
Net income attributable to noncontrolling interests | (16) | (15) | (46) | (40) | ||||
Net (loss) income attributable to Huntsman Corporation | $ (33) | $ - | $ (48) | $ 172 | ||||
Adjusted EBITDA(1) | $ 131 | $ 136 | $ 343 | $ 428 | ||||
Adjusted net income (1) | $ 17 | $ 27 | $ 30 | $ 103 | ||||
Basic (loss) income per share | $ (0.19) | $ - | $ (0.28) | $ 0.96 | ||||
Diluted (loss) income per share | $ (0.19) | $ - | $ (0.28) | $ 0.95 | ||||
Adjusted diluted income per share(1) | $ 0.10 | $ 0.15 | $ 0.17 | $ 0.57 | ||||
Common share information: | ||||||||
Basic weighted average shares | 172 | 176 | 172 | 179 | ||||
Diluted weighted average shares | 172 | 177 | 172 | 181 | ||||
Diluted shares for adjusted diluted income per share | 173 | 177 | 173 | 181 | ||||
See end of press release for footnote explanations. |
Table 2 – Results of Operations by Segment | ||||||||||||
Three months ended | Nine months ended | |||||||||||
September 30, | Better / | September 30, | (Worse) / | |||||||||
In millions | 2024 | 2023 | (Worse) | 2024 | 2023 | Better | ||||||
Segment Revenues: | ||||||||||||
Polyurethanes | $ 1,003 | $ 967 | 4 % | $ 2,930 | $ 2,970 | (1 %) | ||||||
Performance Products | 280 | 277 | 1 % | 870 | 918 | (5 %) | ||||||
Advanced Materials | 261 | 268 | (3 %) | 801 | 841 | (5 %) | ||||||
Total Reportable Segments' Revenues | 1,544 | 1,512 | 2 % | 4,601 | 4,729 | (3 %) | ||||||
Intersegment Eliminations | (4) | (6) | n/m | (17) | (21) | n/m | ||||||
Total Revenues | $ 1,540 | $ 1,506 | 2 % | $ 4,584 | $ 4,708 | (3 %) | ||||||
Segment Adjusted EBITDA(1): | ||||||||||||
Polyurethanes | $ 76 | $ 81 | (6 %) | $ 195 | $ 235 | (17 %) | ||||||
Performance Products | 42 | 47 | (11 %) | 130 | 173 | (25 %) | ||||||
Advanced Materials | 47 | 49 | (4 %) | 142 | 148 | (4 %) | ||||||
Total Reportable Segments' Adjusted EBITDA(1) | 165 | 177 | (7 %) | 467 | 556 | (16 %) | ||||||
Corporate, LIFO and other | (34) | (41) | 17 % | (124) | (128) | 3 % | ||||||
Total Adjusted EBITDA(1) | $ 131 | $ 136 | (4 %) | $ 343 | $ 428 | (20 %) | ||||||
n/m = not meaningful | ||||||||||||
See end of press release for footnote explanations. |
Table 3 – Factors Impacting Sales Revenue | ||||||||||
Three months ended | ||||||||||
September 30, 2024 vs. 2023 | ||||||||||
Average Selling Price(a) | ||||||||||
Local | Exchange | Sales | ||||||||
Currency & Mix | Rate | Volume(b) | Total | |||||||
Polyurethanes | (1 %) | 0 % | 5 % | 4 % | ||||||
Performance Products | (3 %) | 0 % | 4 % | 1 % | ||||||
Advanced Materials | (7 %) | (1 %) | 5 % | (3 %) | ||||||
Nine months ended | ||||||||||
September 30, 2024 vs. 2023 | ||||||||||
Average Selling Price(a) | ||||||||||
Local | Exchange | Sales | ||||||||
Currency & Mix | Rate | Volume(b) | Total | |||||||
Polyurethanes | (9 %) | 0 % | 8 % | (1 %) | ||||||
Performance Products | (10 %) | 0 % | 5 % | (5 %) | ||||||
Advanced Materials | (9 %) | 0 % | 4 % | (5 %) | ||||||
(a) Excludes sales from tolling arrangements, by-products and raw materials. | ||||||||||
(b) Excludes sales from by-products and raw materials. |
Table 4 – Reconciliation of | ||||||||||||||||
Income Tax | Net (Loss) | Diluted (Loss) Income | ||||||||||||||
EBITDA | Expense | Income | Per Share | |||||||||||||
Three months ended | Three months ended | Three months ended | Three months ended | |||||||||||||
September 30, | September 30, | September 30, | September 30, | |||||||||||||
In millions, except per share amounts | 2024 | 2023 | 2024 | 2023 | 2024 | 2023 | 2024 | 2023 | ||||||||
Net (loss) income | $ (17) | $ 15 | $ (17) | $ 15 | $ (0.10) | $ 0.08 | ||||||||||
Net income attributable to noncontrolling interests | (16) | (15) | (16) | (15) | (0.09) | (0.08) | ||||||||||
Net loss attributable to Huntsman Corporation | (33) | - | (33) | - | (0.19) | - | ||||||||||
Interest expense, net from continuing operations | 21 | 15 | ||||||||||||||
Income tax expense from continuing operations | 39 | 27 | $ (39) | $ (27) | ||||||||||||
Income tax benefit from discontinued operations(3) | - | (2) | ||||||||||||||
Depreciation and amortization from continuing operations | 70 | 69 | ||||||||||||||
Business acquisition and integration expenses and purchase accounting inventory adjustments | - | - | 1 | 1 | 1 | 1 | 0.01 | 0.01 | ||||||||
Income tax settlement related to | - | - | 5 | - | 5 | - | 0.03 | - | ||||||||
EBITDA / Loss from discontinued operations(3) | 12 | 2 | N/A | N/A | 12 | - | 0.07 | - | ||||||||
Loss on sale of business/assets | 1 | - | 3 | - | 4 | - | 0.02 | - | ||||||||
Fair value adjustments to Venator investment, net | (5) | - | - | - | (5) | - | (0.03) | - | ||||||||
Certain legal and other settlements and related expenses(6) | 11 | 2 | 2 | - | 13 | 2 | 0.08 | 0.01 | ||||||||
Certain non-recurring information technology project implementation costs | - | 2 | - | 1 | - | 3 | - | 0.02 | ||||||||
Amortization of pension and postretirement actuarial losses | 9 | 10 | 2 | - | 11 | 10 | 0.06 | 0.06 | ||||||||
Restructuring, impairment and plant closing and transition costs | 6 | 11 | 3 | - | 9 | 11 | 0.05 | 0.06 | ||||||||
Adjusted(1) | $ 131 | $ 136 | $ (23) | $ (25) | 17 | 27 | $ 0.10 | $ 0.15 | ||||||||
Adjusted income tax expense(1) | 23 | 25 | ||||||||||||||
Net income attributable to noncontrolling interests | 16 | 15 | ||||||||||||||
Adjusted pre-tax income (1) | $ 56 | $ 67 | ||||||||||||||
Adjusted effective tax rate(4) | 41 % | 37 % | ||||||||||||||
Effective tax rate | 115 % | 64 % | ||||||||||||||
Income Tax | Diluted (Loss) Income | |||||||||||||||
EBITDA | Expense | Net (Loss) Income | Per Share | |||||||||||||
Nine months ended | Nine months ended | Nine months ended | Nine months ended | |||||||||||||
September 30, | September 30, | September 30, | September 30, | |||||||||||||
In millions, except per share amounts | 2024 | 2023 | 2024 | 2023 | 2024 | 2023 | 2024 | 2023 | ||||||||
Net (loss) income | $ (2) | $ 212 | $ (2) | $ 212 | $ (0.01) | $ 1.17 | ||||||||||
Net income attributable to noncontrolling interests | (46) | (40) | (46) | (40) | (0.27) | (0.22) | ||||||||||
Net (loss) income attributable to Huntsman Corporation | (48) | 172 | (48) | 172 | (0.28) | 0.95 | ||||||||||
Interest expense, net from continuing operations | 60 | 48 | ||||||||||||||
Income tax expense from continuing operations | 32 | 66 | $ (32) | $ (66) | ||||||||||||
Income tax (benefit) expense from discontinued operations(3) | (8) | 14 | ||||||||||||||
Depreciation and amortization from continuing operations | 214 | 208 | ||||||||||||||
Business acquisition and integration expenses and purchase accounting inventory adjustments | 21 | 3 | (16) | - | 5 | 3 | 0.03 | 0.02 | ||||||||
Income tax settlement related to | - | - | 5 | - | 5 | - | 0.03 | - | ||||||||
EBITDA / Loss (income) from discontinued operations(3) | 20 | (134) | N/A | N/A | 12 | (120) | 0.07 | (0.66) | ||||||||
Loss (gain) on sale of business/assets | 1 | (1) | 3 | - | 4 | (1) | 0.02 | (0.01) | ||||||||
Fair value adjustments to Venator investment, net | (12) | 5 | 2 | - | (10) | 5 | (0.06) | 0.03 | ||||||||
Certain legal and other settlements and related expenses(6) | 13 | 4 | 1 | - | 14 | 4 | 0.08 | 0.02 | ||||||||
Certain non-recurring information technology project implementation costs | - | 5 | - | - | - | 5 | - | 0.03 | ||||||||
Amortization of pension and postretirement actuarial losses | 25 | 25 | 1 | (2) | 26 | 23 | 0.15 | 0.13 | ||||||||
Restructuring, impairment and plant closing and transition costs | 25 | 13 | (3) | (1) | 22 | 12 | 0.13 | 0.07 | ||||||||
Adjusted(1) | $ 343 | $ 428 | $ (39) | $ (69) | 30 | 103 | $ 0.17 | $ 0.57 | ||||||||
Adjusted income tax expense(1) | 39 | 69 | ||||||||||||||
Net income attributable to noncontrolling interests | 46 | 40 | ||||||||||||||
Adjusted pre-tax income(1) | $ 115 | $ 212 | ||||||||||||||
Adjusted effective tax rate(4) | 34 % | 33 % | ||||||||||||||
Effective tax rate | 76 % | 42 % | ||||||||||||||
N/A = not applicable | ||||||||||||||||
See end of press release for footnote explanations. |
Table 5 – Balance Sheets | ||||
September 30, | December 31, | |||
In millions | 2024 | 2023 | ||
Cash | $ 330 | $ 540 | ||
Accounts and notes receivable, net | 829 | 753 | ||
Inventories | 1,004 | 867 | ||
Other current assets | 130 | 154 | ||
Property, plant and equipment, net | 2,580 | 2,376 | ||
Other noncurrent assets | 2,461 | 2,558 | ||
Total assets | $ 7,334 | $ 7,248 | ||
Accounts payable | $ 745 | $ 719 | ||
Other current liabilities | 469 | 441 | ||
Current portion of debt | 346 | 12 | ||
Long-term debt | 1,513 | 1,676 | ||
Other noncurrent liabilities | 916 | 922 | ||
Huntsman Corporation stockholders' equity | 3,112 | 3,251 | ||
Noncontrolling interests in subsidiaries | 233 | 227 | ||
Total liabilities and equity | $ 7,334 | $ 7,248 |
Table 6 – Outstanding Debt | ||||
September 30, | December 31, | |||
In millions | 2024 | 2023 | ||
Debt: | ||||
Revolving credit facility | $ - | $ - | ||
Senior notes | 1,820 | 1,471 | ||
Accounts receivable programs | - | 169 | ||
Variable interest entities | 19 | 26 | ||
Other debt | 20 | 22 | ||
Total debt - excluding affiliates | 1,859 | 1,688 | ||
Total cash | 330 | 540 | ||
Net debt - excluding affiliates(5) | $ 1,529 | $ 1,148 | ||
See end of press release for footnote explanations. |
Table 7 – Summarized Statements of Cash Flows | ||||||||
Three months ended | Nine months ended | |||||||
September 30, | September 30, | |||||||
In millions | 2024 | 2023 | 2024 | 2023 | ||||
Total cash at beginning of period | $ 335 | $ 502 | $ 540 | $ 654 | ||||
Net cash provided by operating activities from continuing operations | 134 | 167 | 126 | 85 | ||||
Net cash used in operating activities from discontinued operations(3) | (5) | (4) | (16) | (40) | ||||
Net cash (used in) provided by investing activities from continuing operations | (7) | (49) | (87) | 395 | ||||
Net cash used in investing activities from discontinued operations(3) | - | - | - | (4) | ||||
Net cash used in financing activities | (129) | (117) | (231) | (581) | ||||
Effect of exchange rate changes on cash | 2 | (3) | (2) | (13) | ||||
Total cash at end of period | $ 330 | $ 496 | $ 330 | $ 496 | ||||
Free cash flow from continuing operations(2): | ||||||||
Net cash provided by operating activities from continuing operations | $ 134 | $ 167 | $ 126 | $ 85 | ||||
Capital expenditures | (41) | (50) | (133) | (147) | ||||
Free cash flow from continuing operations(2) | $ 93 | $ 117 | $ (7) | $ (62) | ||||
Supplemental cash flow information: | ||||||||
Cash paid for interest | $ (14) | $ (9) | $ (55) | $ (43) | ||||
Cash paid for income taxes | (16) | (20) | (60) | (82) | ||||
Cash paid for restructuring and integration | (3) | (13) | (26) | (51) | ||||
Cash paid for pensions | (9) | (21) | (26) | (41) | ||||
Depreciation and amortization from continuing operations | 70 | 69 | 214 | 208 | ||||
Change in primary working capital: | ||||||||
Accounts and notes receivable | $ 58 | $ 17 | $ (72) | $ 17 | ||||
Inventories | (66) | 56 | (137) | 33 | ||||
Accounts payable | (1) | (11) | 21 | (209) | ||||
Total change in primary working capital | $ (9) | $ 62 | $ (188) | $ (159) | ||||
See end of press release for footnote explanations. |
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 |
Our forward-looking adjusted effective tax rate is calculated based on our forecast effective tax rate, and the range of our forward-looking adjusted effective tax rate equals the range of our forecast effective tax rate. We disclose forward-looking adjusted effective tax rate because we cannot adequately forecast certain items and events that may or may not impact us in the near future, such as business acquisition and integration expenses and purchase accounting inventory adjustments, certain legal and other settlements and related expenses, gains on sale of businesses/assets and certain tax only items, including tax law changes not yet enacted. Each of such adjustment has not yet occurred, is out of our control and/or cannot be reasonably predicted. In our view, our forward-looking adjusted effective tax rate represents the forecast effective tax rate on our underlying business operations but does not reflect any adjustments related to the items noted above that may occur and can cause our effective tax rate to differ. | |
(5) | Net debt is a measure we use to monitor how much debt we have after taking into account our total cash. We use it as an indicator of our overall financial position, and calculate it by taking our total debt, including the current portion, and subtracting total cash. |
(6) | Certain legal and other settlements and related expenses for the three and nine months ended September 30, 2024 includes approximately |
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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