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Huntsman Announces Third Quarter 2024 Earnings

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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.

Positive
  • 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
Negative
  • 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 $33 million net loss compared to breakeven last year. Key metrics show deterioration: adjusted EBITDA declined 4% to $131 million, while adjusted EPS fell 33% to $0.10. The company faces headwinds in construction and industrial markets, with management describing conditions as "trough."

The balance sheet shows increasing leverage with net debt rising to $1.53 billion, though liquidity remains solid at $1.7 billion. Free cash flow declined to $93 million from $117 million year-over-year. The high effective tax rate of 115% and adjusted rate of 41% are concerning, well above management's long-term target of 22-24%.

The results highlight persistent weakness in Huntsman's core segments. Polyurethanes saw margin compression despite 5% higher volumes, while Performance Products and Advanced Materials both reported lower EBITDA. The company's heavy exposure to construction and transportation markets (75% of volumes) suggests continued near-term pressure given the high interest rate environment.

The $350 million bond issuance at 5.7% demonstrates market confidence but adds to interest expense. Management's focus on cost control and balance sheet management appears prudent given market conditions, though meaningful recovery likely depends on interest rate cuts and China stimulus taking effect.

Third Quarter Highlights

  • Third quarter 2024 net loss attributable to Huntsman of $33 million compared to net income of $0 million in the prior year period; third quarter 2024 diluted loss per share of $0.19 compared to diluted income per share $0.00 in the prior year period.
  • Third quarter 2024 adjusted net income attributable to Huntsman of $17 million compared to adjusted net income of $27 million in the prior year period; third quarter 2024 adjusted diluted income per share of $0.10 compared to adjusted diluted income per share of $0.15 in the prior year period.
  • Third quarter 2024 adjusted EBITDA of $131 million compared to $136 million in the prior year period.
  • Third quarter 2024 net cash provided by operating activities from continuing operations was $134 million. Free cash flow from continuing operations was $93 million for the third quarter 2024 compared to $117 million in the prior year period.
  • Successfully placed $350 million of senior notes due 2034 with a 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.









 

THE WOODLANDS, Texas, Nov. 4, 2024 /PRNewswire/ -- Huntsman Corporation (NYSE: HUN) today reported third quarter 2024 results with revenues of $1,540 million, net loss attributable to Huntsman of $33 million, adjusted net income attributable to Huntsman of $17 million and adjusted EBITDA of $131 million

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 5% in the quarter versus the prior year with stable margins sequentially. Construction and transportation account for approximately three quarters of our volumes and we expect near term trough conditions to persist through a seasonally lower fourth quarter. For the medium to long-term, interest rate cuts by the Federal Reserve and ECB, combined with government stimulus in China, should have a positive impact across our global portfolio, primarily in construction. In the meantime, we are focused on what we control - improving our cost position and our balance sheet strength to maintain optionality to invest in our core businesses in a disciplined manner. We were pleased by the success of our strong bond offering in the third quarter which points to the long-term strength of our portfolio and anticipation of market improvements in the coming years."

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 China, partially offset by lower fixed costs and higher sales volumes.

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 $34 million as compared to a loss of $41 million for the same period of 2023. The increase in adjusted EBITDA from Corporate and other resulted primarily from decreases in corporate overhead costs and unallocated foreign currency exchange losses, partially offset by an increase in LIFO valuation losses.

Liquidity and Capital Resources

During the three months ended September 30, 2024, our free cash flow from continuing operations was $93 million as compared to $117 million in the same period of 2023. As of September 30, 2024, we had approximately $1.7 billion of combined cash and unused borrowing capacity.

During the three months ended September 30, 2024, we spent $41 million on capital expenditures from continuing operations as compared to $50 million in the same period of 2023.  During 2024, we expect to spend between approximately $180 million to $190 million on capital expenditures.

Income Taxes

In the third quarter of 2024, our effective tax rate was 115% and our adjusted effective tax rate was 41%. We expect our 2024 adjusted effective tax rate to be between approximately 30% to 34%. We expect our long-term adjusted effective tax rate to be between approximately 22% to 24%.

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 U.S. GAAP to Non-GAAP Measures


















 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 U.S. Tax Reform Act


-


-


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 U.S. Tax Reform Act


-


-


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 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; (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 U.S. GAAP, and it should not be inferred that the entire free cash flow amount is available for discretionary expenditures.



(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.



(6)

Certain legal and other settlements and related expenses for the three and nine months ended September 30, 2024 includes approximately $10 million related to the settlement of a claim in connection with a commercial dispute.

 

About Huntsman:
Huntsman Corporation is a publicly traded global manufacturer and marketer of differentiated and specialty chemicals with 2023 revenues of approximately $6 billion from our continuing operations. Our chemical products number in the thousands and are sold worldwide to manufacturers serving a broad and diverse range of consumer and industrial end markets. We operate more than 60 manufacturing, R&D and operations facilities in approximately 25 countries and employ approximately 6,000 associates within our continuing operations. For more information about Huntsman, please visit the company's website at www.huntsman.com

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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 Europe, inflation and high capital costs, geopolitical instability, volatile global economic conditions, cyclical and volatile product markets, disruptions in production at manufacturing facilities, reorganization or restructuring of the Company's operations, including any delay of, or other negative developments affecting the ability to implement cost reductions and manufacturing optimization improvements in the Company's businesses and to realize anticipated cost savings, and other financial, operational, economic, competitive, environmental, political, legal, regulatory and technological factors. Any forward-looking statement should be considered in light of the risks set forth under the caption "Risk Factors" in our Annual Report on Form 10-K for the year ended December 31, 2023, which may be supplemented by other risks and uncertainties disclosed in any subsequent reports filed or furnished by the Company from time to time. All forward-looking statements apply only as of the date made. Except as required by law, the Company undertakes no obligation to update or revise forward-looking statements to reflect events or circumstances that arise after the date made or to reflect the occurrence of unanticipated events.

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FAQ

What was Huntsman's (HUN) revenue in Q3 2024?

Huntsman reported revenues of $1,540 million in Q3 2024, compared to $1,506 million in Q3 2023.

What was Huntsman's (HUN) net loss in Q3 2024?

Huntsman reported a net loss of $33 million in Q3 2024, compared to breakeven results in Q3 2023.

What was Huntsman's (HUN) free cash flow in Q3 2024?

Huntsman's free cash flow from continuing operations was $93 million in Q3 2024, compared to $117 million in Q3 2023.

What was the size of Huntsman's (HUN) senior notes offering in Q3 2024?

Huntsman successfully placed $350 million of senior notes due 2034 with a 5.7% coupon rate.

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