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Huntsman Releases Third Quarter 2011 Results

November 2, 2011

THE WOODLANDS, Texas, Nov. 2, 2011 /PRNewswire/ — Huntsman Corporation (NYSE: HUN)

Third Quarter 2011 Highlights

  • Revenues improved 24% compared to the prior year period.
  • Adjusted EBITDA improved 26% to $345 million compared to the prior year period.
  • Adjusted diluted income per share improved 32% to $0.45 compared to the prior year period.
  • A higher than normal adjusted effective tax rate of 38% had a negative impact of approximately $0.08 per diluted share.
  • Negative foreign currency impact on earnings in our Advanced Materials and Textile Effects businesses of approximately $17 million compared to the prior year primarily due to the strong Swiss franc.
  • We announced restructuring plans within our Advanced Materials and Textile Effects businesses. We recorded $155 million of restructuring charges during the third quarter of 2011 consisting of $102 million of cash charges and $53 million of non-cash impairment of assets. We expect additional future cash charges of approximately $35 million. We expect future annual benefits of approximately $90 million.


                                                                                   Nine months
                                                     Three months ended                                     ended
                                                     ------------------
                                                                        June
                                                 September 30,                 30,            September 30,
                                                 -------------                    -------------
    In millions, except per
     share amounts, unaudited                    2011        2010        2011   2011         2010
    -------------------------                    ----        ----        ----   ----         ----

    Revenues                                   $2,976      $2,401      $2,934 $8,589       $6,838

    Net (loss) income
     attributable to Huntsman
     Corporation                                 $(34)        $55        $114   $142          $(3)
    Adjusted net income(1)                       $108         $83        $117   $339         $142

    Diluted (loss) income per
     share                                     $(0.14)      $0.23       $0.47  $0.59       $(0.01)
    Adjusted diluted income
     per share(1)                               $0.45       $0.34       $0.48  $1.40        $0.59

    EBITDA(1)                                    $204        $257        $323   $766         $533
    Adjusted EBITDA(1)                           $345        $273        $318   $965         $653

    See end of press release for footnote explanations

    (a) Excluding the Base Chemicals and Polymers businesses divested
     in 2006 and 2007

Huntsman Corporation (NYSE: HUN) today reported third quarter 2011 results with revenues of $2,976 million and Adjusted EBITDA of $345 million.

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

“Our third quarter was the strongest in our company’s history. Our revenues, adjusted EBITDA and adjusted net income are all stronger than a year ago as we appear to be heading towards a record year.

This past quarter we announced large restructuring plans to mitigate the impact of the strong Swiss Franc and to address the challenging business conditions of the global textile industry. We expect to record cash restructuring charges of approximately $135 million and expect annual benefits of approximately $90 million between our Textile Effects business and our Swiss based Advanced Materials divisions. We expect to see the impact of these changes beginning in the first quarter of 2012.

As satisfied as we feel about our strong quarter, we are still mindful of the sluggish global business conditions. As the economy gradually improves in the coming year, we fully expect stronger earnings from our business as many of our larger product lines are still quite some distance from their peak earnings potential. In short, I am quite pleased with our third quarter results, but expect stronger performance as the global economy returns to more stable growth.”

Segment Analysis for 3Q11 Compared to 3Q10

Polyurethanes

The increase in revenues in our Polyurethanes division for the three months ended September 30, 2011 compared to the same period in 2010 was due to higher average selling prices and higher MDI sales volumes. Average MDI selling prices increased primarily in response to higher raw material costs, improved demand and the strength of European currencies against the U.S. dollar. Average PO/MTBE selling prices increased primarily in response to higher raw material costs. MDI sales volumes increased primarily due to improved demand in the insulation, furniture and automotive sectors but were offset by lower PO/MTBE sales volumes. The increase in Adjusted EBITDA was due to higher contribution margins partially offset by higher manufacturing and selling, general and administrative costs.

Performance Products

The increase in revenues in our Performance Products division for the three months ended September 30, 2011 compared to the same period in 2010 was primarily due to higher average selling prices. Average selling prices increased across almost all product groups primarily in response to higher raw material costs and the strength of major European currencies against the U.S. dollar. Sales volumes were essentially unchanged as the positive impact from the consolidation of our Sasol-Huntsman maleic anhydride joint venture during the second quarter 2011 was offset by lower sales volumes of amines and surfactants. The decrease in Adjusted EBITDA was primarily due to a planned maintenance outage at our Port Neches, TX facility which had an approximate $8 million negative impact.

Advanced Materials

The increase in revenues in our Advanced Materials division for the three months ended September 30, 2011 compared to the same period in 2010 was primarily due to higher average selling prices partially offset by lower sales volumes. Average selling prices increased primarily in response to higher raw material costs and the strength of major European currencies against the U.S. dollar. Sales volumes decreased in our base resins business partially offset by a modest increase in combined sales volumes in our core formulation systems and specialty components businesses. The decrease in Adjusted EBITDA was primarily due to lower contribution margins and approximately $7 million of negative foreign currency impact primarily due to the stronger Swiss franc on our manufacturing and selling, general and administrative costs.

Textile Effects

The decrease in revenues in our Textile Effects division for the three months ended September 30, 2011 compared to the same period in 2010 was primarily due to lower sales volumes partially offset by higher average selling prices. Sales volumes decreased due to lower demand. Average selling prices increased primarily due to the strength of major currencies against the U.S. dollar. The decrease in Adjusted EBITDA was primarily due to lower sales volumes and approximately $10 million of negative foreign currency impact primarily due to the stronger Swiss franc on our manufacturing and selling, general and administrative costs.

Pigments

The increase in revenues in our Pigments division for the three months ended September 30, 2011 compared to the same period in 2010 was due to higher average selling prices partially offset by lower sales volumes. Average selling prices increased in all regions of the world primarily as a result of higher raw material costs and the strength of major European currencies against the U.S. dollar. Sales volumes decreased primarily due to lower finished goods inventory available for sale and lower global demand. The increase in Adjusted EBITDA in our Pigments division was primarily due to higher contribution margins partially offset by lower sales volumes and higher manufacturing and selling, general and administrative costs.

Corporate, LIFO and Other

Corporate, LIFO and other includes unallocated corporate overhead, unallocated foreign exchange gains and losses, LIFO inventory valuation reserve adjustments, loss on early extinguishment of debt and unallocated restructuring costs. Adjusted EBITDA from Corporate, LIFO and other decreased by $6 million to a loss of $50 million for the three months ended September 30, 2011 compared to a loss of $44 million for the same period in 2010. The decrease in Adjusted EBITDA was primarily the result of a $7 million increase in LIFO inventory valuation expense ($8 million of loss in 2011 compared to $1 million loss in 2010).

Income Taxes

During the three months ended September 30, 2011 we recorded income tax expense of $55 million compared to $41 million in the same period in 2010. Our adjusted effective income tax rate for the three months ended September 30, 2011 was approximately 38%. We have tax valuation allowances in countries such as Switzerland and the United Kingdom where our Textile Effects and Pigments businesses have meaningful operations. The increase in forecasted losses in Switzerland from our Textile Effects business during the third quarter, along with other changes in our geographic mix of income, had the effect of increasing our projected effective income tax rate for the year. We are required to adjust our third quarter year-to-date tax rate to our expected full year rate. This resulted in the recognition of more tax expense during the third quarter. We expect our long term effective income tax rate to be approximately 30 – 35% and expect the fourth quarter and full year 2011 adjusted tax rate to be slightly less than that. During the three months ended September 30, 2011 we paid $49 million in cash for income taxes. We expect our cash tax rate to continue to be less than our effective income tax rate.

Liquidity, Capital Resources and Outstanding Debt

As of September 30, 2011, we had $1,024 million of combined cash and unused borrowing capacity compared to $1,434 million at December 31, 2010. The decrease from 2010 year end was primarily attributable to an increase in primary net working capital of $506 million.

During the third quarter of 2011, we redeemed approximately $111 million of our senior subordinated notes due 2015.

On November 1, 2011, we provided notice to redeem all of our remaining 6.875% senior subordinated euro notes due 2013 worth approximately $93 million.

Total capital expenditures, net of reimbursements for the three months ended September 30, 2011 were $93 million compared to $54 million for the same period in 2010. We expect to spend approximately $350 million on capital expenditures, net of reimbursements, in 2011.

On August 5, 2011 we announced that our Board of Directors authorized the repurchase of up to $100 million in shares of our common stock. During the third quarter of 2011, we acquired approximately four million shares of our outstanding common stock for approximately $50 million under the repurchase program.

Conference Call Information

We will hold a conference call to discuss our third quarter 2011 financial results on Wednesday November 2, 2011 at 9:00 a.m. ET.


    Call-in numbers for the
     conference call:
                        (888) 713 -
    U.S. participants          4213
    International       (617) 213 -
     participants              4865
    Passcode               98395744

In order to facilitate the registration process, you may use the following link to pre-register for the conference call. Callers who pre-register will be given a unique PIN to gain immediate access to the call and bypass the live operator. You may pre-register at any time, including up to and after the call start time. To pre-register, please go to:

https://www.theconferencingservice.com/prereg/key.process?key=PLFWDW8GP

Webcast Information

The conference call will be available via webcast and can be accessed from the investor relations portion of the company’s website at http://www.huntsman.com.

Replay Information

The conference call will be available for replay beginning November 2, 2011 and ending November 9, 2011.


    Call-in numbers for the
     replay:
                        (888) 286 -
    U.S. participants          8010
    International       (617) 801 -
     participants              6888
    Replay code            63107396


    Table 1 -- Results of Operations
    --------------------------------

                                                           Three months         Nine months
                                                              ended                ended
                                                          September 30,        September 30,
                                                          -------------        -------------
    In millions, except per
     share amounts, unaudited                            2011        2010    2011         2010
    -------------------------                            ----        ----    ----         ----

    Revenues                                           $2,976      $2,401  $8,589       $6,838
    Cost of goods sold                                  2,486       1,986   7,138        5,757
                                                        -----       -----   -----        -----
    Gross profit                                          490         415   1,451        1,081
    Operating expenses                                    258         244     821          741
    Restructuring, impairment
     and plant closing costs                              155           4     171           24
                                                          ---         ---     ---          ---
    Operating income                                       77         167     459          316
    Interest expense, net                                 (63)        (64)   (187)        (168)
    Equity in income of
     investment in
     unconsolidated affiliates                              2           3       6           20
    Loss on early
     extinguishment of debt                                (2)         (7)     (5)        (169)
    Expenses associated with
     the terminated merger and
     related litigation                                     -          (3)      -           (4)
    Other (loss) income                                    (1)          2       -            3
                                                                              ---          ---
    Income (loss) before
     income taxes                                          13          98     273           (2)
    Income tax expense                                    (55)        (41)   (111)         (46)
                                                          ---         ---    ----          ---
    (Loss) income from
     continuing operations                                (42)         57     162          (48)
    Income (loss) from
     discontinued operations,
     net of tax(2)                                         10          (1)     (5)          48
    Extraordinary gain on the
     acquisition of a
     business, net of tax of
     nil                                                    -           -       2            -
                                                          ---         ---     ---          ---
    Net (loss) income                                     (32)         56     159            -
    Net income attributable to
     noncontrolling interests,
     net of tax                                            (2)         (1)    (17)          (3)
                                                          ---         ---
    Net (loss) income
     attributable to Huntsman
     Corporation                                         $(34)        $55    $142          $(3)
                                                         ====         ===    ====          ===

    Adjusted EBITDA(1)                                   $345        $273    $965         $653

    Adjusted net income(1)                               $108         $83    $339         $142

    Basic (loss) income per
     share                                             $(0.14)      $0.23   $0.60       $(0.01)
    Diluted (loss) income per
     share                                             $(0.14)      $0.23   $0.59       $(0.01)
    Adjusted diluted income
     per share(1)                                       $0.45       $0.34   $1.40        $0.59

    Common share information:
      Basic shares outstanding                          237.6       236.4   238.2        235.9
      Diluted shares                                    237.6       241.0   242.6        235.9
      Diluted shares for
       adjusted diluted income
       per share                                        241.3       241.0   242.6        240.7

    See end of press release for footnote explanations


    Table 2 -- Results of Operations by Segment
    -------------------------------------------

                                Three months ended                Nine months ended
                                   September 30,                    September 30,
                                   -------------                    -------------
     In
     millions,
     unaudited                   2011          2010  Change     2011         2010    Change
     ---------                   ----          ----  ------     ----         ----    ------

     Segment
     Revenues:
      Polyurethanes            $1,209          $960       26% $3,391       $2,659         28%
       Performance
       Products                   846           678       25%  2,546        1,963         30%
       Advanced
       Materials                  349           318       10%  1,059          929         14%
       Textile
       Effects                    173           190      (9)%    563          598        (6)%
      Pigments                    455           327       39%  1,243          883         41%
       Eliminations
       and
       other                      (56)          (72)    (22)%   (213)        (194)        10%
                                  ---           ---             ----         ----

         Total                 $2,976        $2,401       24% $8,589       $6,838         26%
                               ======        ======           ======       ======

     Segment
     Adjusted
     EBITDA(1):
      Polyurethanes              $140           $99       41%   $397         $221         80%
       Performance
       Products                    97           102      (5)%    314          278         13%
       Advanced
       Materials                   26            42     (38)%     96          124       (23)%
       Textile
       Effects                    (29)            8       NM     (42)          16         NM
      Pigments                    161            66      144%    363          144        152%
       Corporate,
       LIFO
       and
       other                      (50)          (44)      14%   (163)        (130)        25%

         Total                   $345          $273       26%   $965         $653         48%
                                 ====          ====             ====         ====

    See end of press release for footnote
     explanations                                                                   NM-Not


    Table 3 -- Factors Impacting Sales Revenue
    ------------------------------------------

                                            Three months ended
                                        September 30, 2011 vs. 2010
                                        ---------------------------
                            Average Selling
                               Price(a)
                           ----------------
                                                      Sales
                         Local        Exchange         Mix           Sales
    Unaudited           Currency        Rate        & Other        Volume(a)  Total
    ---------           --------        ----        -------        ---------  -----

    Polyurethanes             18%            5%            4%            (1)%    26%
    Performance
     Products                 20%            5%          ---             ---     25%
    Advanced
     Materials                 5%            7%          (1)%            (1)%    10%
    Textile Effects          (2)%            6%          ---            (13)%   (9)%
    Pigments                  38%            9%          ---             (8)%    39%
    Total Company             20%            6%            3%            (5)%    24%

                                            Nine months ended
                                       September 30, 2011 vs. 2010
                                       ---------------------------
                          Average Selling
                              Price(a)
                         ----------------
                                                      Sales
                         Local        Exchange         Mix           Sales
    Unaudited           Currency        Rate        & Other        Volume(a)  Total
    ---------           --------        ----        -------        ---------  -----

    Polyurethanes             18%            3%          (4)%             11%    28%
    Performance
     Products                 20%            3%            1%              6%    30%
    Advanced
     Materials                 8%            4%            2%            ---     14%
    Textile Effects            1%            4%          (1)%           (10)%   (6)%
    Pigments                  33%            5%          ---               3%    41%
    Total Company             15%            4%            2%              5%    26%

    (a) Excludes revenues and sales volumes from
     tolling, by-products and raw materials


    Table 4 -- Reconciliation of U.S. GAAP to Non-GAAP Measures
    -----------------------------------------------------------

                                                                                                                      Diluted Income
                                                            Income Tax                              Net Income (Loss)                              (Loss)
                                                                                          Attrib. to HUN
                                  EBITDA                                (Expense) Benefit                                  Corp.                   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,
     unaudited              2011          2010          2011          2010          2011          2010          2011          2010
    ---------------         ----          ----          ----          ----          ----          ----          ----          ----

    GAAP(1)                 $204          $257          $(55)         $(41)         $(34)          $55        $(0.14)        $0.23
    Adjustments:
      Unallocated
       foreign
       exchange (gain)
       loss                   (1)           (2)           (5)           14            (6)           12         (0.02)         0.05
      Legal
       settlements and
       related
       expenses                4             -            (1)            -             3             -          0.01             -
      Loss on early
       extinguishment
       of debt                 2             7            (1)           (2)            1             5             -          0.02
      Restructuring,
       impairment and
       plant closing
       costs                 155             4            (3)            -           152             4          0.63          0.02
      Expenses
       associated with
       the terminated
       merger and
       related
       litigation              -          3          -         (1)         -          2          -       0.01
      Discount
       amortization on
       settlement
       financing
       associated with
       the terminated
       merger                N/A        N/A         (3)        (2)         4          4       0.02       0.02
      Acquisition
       expenses                1             1             -            (1)            1             -             -             -
      Gain on sale of
       assets related
       to plant
       closures               (3)            -             -             -            (3)            -         (0.01)            -
      (Income) loss
       from
       discontinued
       operations, net
       of tax(2)             (17)         3        N/A        N/A        (10)         1      (0.04)         -

    Adjusted(1)             $345          $273          $(68)         $(33)         $108           $83         $0.45         $0.34
                            ----          ----          ----          ----          ----           ---         -----         -----

    Adjusted income
     tax expense                                                                      68            33
    Net income
     attributable to
     noncontrolling
     interests, net
     of tax                            2          1

    Adjusted pre-
     tax income(1)                                                                  $178          $117
                                                                                    ----          ----

    Adjusted
     effective tax
     rate                                                                             38%           28%

                                                                                                            Diluted Income
                                                          Income Tax                          Net Income (Loss)                             (Loss)
                                                                                Attrib. to HUN
                                EBITDA                           (Expense) Benefit                               Corp.                  Per Share
                               ------                -----------------          --------------              ---------
                         Three months ended        Three months ended        Three months ended        Three months ended
                              June 30,                  June 30,                  June 30,                  June 30,
    In millions,
     except per
     share amounts,
     unaudited                            2011                        2011                        2011                        2011
    ---------------                       ----                        ----                        ----                        ----

    GAAP(1)                 $323                        $(34)                       $114                       $0.47
    Adjustments:
      Unallocated
       foreign
       exchange (gain)
       loss                   (3)                          4                           1                           -
      Gain on
       consolidation
       of a variable
       interest entity       (12)                          2                         (10)                      (0.04)
      Restructuring,
       impairment and
       plant closing
       costs                   9                          (1)                          8                        0.03
      Discount
       amortization on
       settlement
       financing
       associated with
       the terminated
       merger                N/A           (2)           5         0.02
      Acquisition
       expenses                3                          (1)                          2                        0.01
      Gain on sale of
       assets related
       to plant
       closures               (3)                          -                          (3)                      (0.01)
      Loss from
       discontinued
       operations, net
       of tax(2)               2                         N/A                           1                           -
      Extraordinary
       gain on the
       acquisition of
       a business, net
       of tax(3)              (1)           -           (1)           -

    Adjusted(1)             $318                        $(32)                       $117                       $0.48
                            ----                        ----                        ----                       -----

    Adjusted income
     tax expense                                                                      32
    Net income
     attributable to
     noncontrolling
     interests, net
     of tax                           10

    Adjusted pre-
     tax income(1)                                                                  $159
                                                                                    ----

    Adjusted
     effective tax
     rate                                                                             20%

                                                                                                            Diluted Income
                                                          Income Tax                          Net Income (Loss)                             (Loss)
                                                                                Attrib. to HUN
                                EBITDA                            (Expense) Benefit                              Corp.                  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,
     unaudited              2011          2010          2011          2010          2011          2010          2011          2010
    ---------------         ----          ----          ----          ----          ----          ----          ----          ----

    GAAP(1)                 $766          $533         $(111)         $(46)         $142           $(3)        $0.59        $(0.01)
    Adjustments:
      Unallocated
       foreign
       exchange (gain)
       loss                   (6)           (3)            5             5            (1)            2             -          0.01
      Legal
       settlements and
       related
       expenses               38             -           (14)            -            24             -          0.10             -
      Loss on early
       extinguishment
       of debt                 5           169            (2)          (17)            3           152          0.01          0.63
      Gain on
       consolidation
       of a variable
       interest entity       (12)            -             2             -           (10)            -         (0.04)            -
      Restructuring,
       impairment and
       plant closing
       costs                 171            24            (4)           (1)          167            23          0.69          0.10
      Expenses
       associated with
       the terminated
       merger and
       related
       litigation              -          4          -         (1)         -          3          -       0.01
      Discount
       amortization on
       settlement
       financing
       associated with
       the terminated
       merger                N/A        N/A         (8)        (7)        13         12       0.05       0.05
      Acquisition
       expenses                5             2            (1)           (1)            4             1          0.02             -
      Gain on sale of
       assets related
       to plant
       closures               (6)            -             -             -            (6)            -         (0.02)            -
      Loss (income)
       from
       discontinued
       operations, net
       of tax(2)               6        (76)       N/A        N/A          5        (48)      0.02      (0.20)
      Extraordinary
       gain on the
       acquisition of
       a business, net
       of tax                 (2)         -          -          -         (2)         -      (0.01)         -

    Adjusted(1)             $965          $653         $(133)         $(68)         $339          $142         $1.40         $0.59
                            ----          ----         -----          ----          ----          ----         -----         -----

    Adjusted income
     tax expense                                                                     133            68
    Net income
     attributable to
     noncontrolling
     interests, net
     of tax                           17          3

    Adjusted pre-
     tax income(1)                                                                  $489          $213
                                                                                    ----          ----

    Adjusted
     effective tax
     rate                                                                             27%           32%

    See end of press release for footnote explanations


    Table 5 -- Reconciliation of Net Income (Loss) to EBITDA
    --------------------------------------------------------

                                            Three months ended                   Nine months ended
                                            ------------------
                                       September 30,            June 30,           September 30,
                                       -------------                               -------------
    In
     millions,
     unaudited                       2011           2010           2011        2011           2010
    ----------                       ----           ----           ----        ----           ----

    Net
     (loss)
     income
     attributable
     to
     Huntsman
     Corporation                     $(34)        $55        $114        $142      $(3)
     Interest
     expense,
     net                               63             64             65         187            168
    Income
     tax
     expense
     from
     continuing
     operations                        55          41          34         111       46
    Income
     tax
     expense
     (benefit)
     from
     discontinued
     operations(2)                      7          (2)         (1)         (1)      27
     Depreciation
     and
     amortization
     of
     continuing
     operations                       113          99         111         327      294
     Depreciation
     and
     amortization
     of
     discontinued
     operations(2)                      -           -           -           -        1

    EBITDA(1)                        $204           $257           $323        $766           $533
                                     ====           ====           ====        ====           ====

    See end of press release for footnote explanations


    Table 6 --Selected
     Balance Sheet Items
    --------------------

                               September              December   September
                                   30,     June 30,      31,         30,
    In millions                      2011        2011      2010        2010
    -----------                      ----        ----      ----        ----
                              (unaudited) (unaudited)           (unaudited)

    Cash                             $459        $690      $973      $1,011
    Accounts and notes
     receivable, net                1,762       1,836     1,413       1,611
    Inventories                     1,687       1,746     1,396       1,375
    Other current assets              366         308       226         248
    Property, plant and
     equipment, net                 3,659       3,825     3,605       3,594
    Other assets                    1,075       1,071     1,101       1,027

        Total assets               $9,008      $9,476    $8,714      $8,866
                                   ======      ======    ======      ======

    Accounts payable                 $941      $1,110      $842        $817
    Other current liabilities         787         800       692         656
    Current portion of debt           230         289       519         384
    Long-term debt                  3,847       3,886     3,627       3,953
    Other liabilities               1,269       1,155     1,184       1,168
    Total equity                    1,934       2,236     1,850       1,888

        Total liabilities and
         equity                    $9,008      $9,476    $8,714      $8,866
                                   ======      ======    ======      ======


    Table 7 --
     Outstanding Debt
    -----------------

                            September              December    September
                               30,      June 30,      31,         30,
    In millions                   2011        2011      2010         2010
    -----------                   ----        ----      ----         ----
                          (unaudited)  (unaudited)           (unaudited)

    Debt:
      Senior credit
       facilities               $1,694      $1,692    $1,688       $1,686
      Accounts receivable
       programs                    245         254       238          243
      Senior notes                 467         462       452          447
      Senior Subordinated
       notes                     1,076       1,198     1,279        1,442
      Variable interest
       entities                    306         313       200          199
      Other debt                   289         256       289          320

    Total debt -
     excluding
     affiliates                  4,077       4,175     4,146        4,337
                                 -----       -----     -----        -----

    Total cash                     459         690       973        1,011
                                   ---         ---       ---        -----

    Net debt-
     excluding
     affiliates                 $3,618      $3,485    $3,173       $3,326
                                ======      ======    ======       ======


    Table 8 -- Summarized Statement of Cash Flows
    ---------------------------------------------

                                             Three months
                                                ended        Nine months ended
                                            September 30,      September 30,
    In millions, unaudited                            2011   2011          2010
    ----------------------                            ----   ----          ----

    Total cash at beginning of
     period                                           $690   $973        $1,750

    Net cash provided by (used
     in) operating activities                           24     25          (350)
    Net cash used in investing
     activities                                        (89)  (200)          (85)
    Net cash used in financing
     activities                                       (157)  (335)         (314)
    Change in restricted cash                           (1)    (1)            3
    Effect of exchange rate
     changes on cash                                    (8)    (3)            7

    Total cash at end of period                       $459   $459        $1,011
                                                      ====   ====        ======

    Supplemental cash flow
     information:
      Cash paid for interest                          $(70) $(178)        $(142)
      Cash paid for income taxes                      $(49)  $(84)         $(19)
      Cash paid for capital
       expenditures                                   $(93) $(217)        $(132)
      Depreciation & amortization                     $113   $327          $295

      Changes in primary working
       capital:
        Accounts and notes
         receivable                                    $11  $(314)        $(318)
        Inventories                                     (3)  (273)         (184)
        Accounts payable                              (119)    81            61
                                                      ----    ---           ---
           Total                                     $(111) $(506)        $(441)


    Footnotes
    ---------
           We use EBITDA and Adjusted EBITDA to measure the operating
           performance of our business.  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) attributable to Huntsman
           Corporation 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 EBITDA, Adjusted EBITDA and Adjusted net
           income.  Additional information with respect to our use of
    (1)    each of these financial measures follows:

      EBITDA is defined as net income (loss) attributable to Huntsman
       Corporation before interest, income taxes, and depreciation and
       amortization. EBITDA as used herein is not necessarily comparable
       to other similarly titled measures of other companies. The
       reconciliation of EBITDA to net income (loss) attributable to
       Huntsman Corporation is set forth in Table 5 above.

      Adjusted EBITDA is computed by eliminating the following from
       EBITDA:  gains and losses from discontinued operations;
       restructuring, impairment and plant closing (credits) costs;
       income and expense associated with the terminated merger and
       related litigation; acquisition related expenses; unallocated
       foreign currency (gain) loss; certain legal and contract
       settlements; losses from early extinguishment of debt; gain on
       consolidation of a variable interest entity; extraordinary loss
       (gain) on the acquisition of a business; and loss (gain) on
       disposition of business/assets.  The reconciliation of Adjusted
       EBITDA to EBITDA is set forth in Table 4 above.

      Adjusted net income (loss) is computed by eliminating the after
       tax impact of the following items from net income (loss)
       attributable to Huntsman Corporation: loss (income) from
       discontinued operations; restructuring, impairment and plant
       closing (credits) costs; income and expense associated with the
       terminated merger and related litigation; discount amortization
       on settlement financing associated with the terminated merger;
       acquisition related expenses; unallocated foreign currency (gain)
       loss;  certain legal and contract settlements; losses on the
       early extinguishment of debt; gain on consolidation of a variable
       interest entity; extraordinary loss (gain) on the acquisition of
       a business; and loss (gain) on disposition of business/assets.
       The reconciliation of adjusted net income (loss) to net income
       (loss) attributable to Huntsman Corporation common stockholders
       is set forth in Table 4 above.

      During the first quarter of 2010, we began reporting the (income)
       loss attributable to noncontrolling interests in the reporting
       segment to which the subsidiary relates. Previously, (income)
       loss attributable to noncontrolling interests was reported in our
       Corporate and other segment. All relevant information for prior
       periods has been reclassified to reflect these changes.

           On November 5, 2007, we completed the sale of our U.S. base
           chemicals business to Flint Hills Resources.  During the
           first quarter 2010 we closed our Australian styrenics
           operations.  Results from these businesses are treated as
    (2)    discontinued operations.

About Huntsman:

Huntsman is a global manufacturer and marketer of differentiated chemicals. Our operating companies manufacture products for a variety of global industries, including chemicals, plastics, automotive, aviation, textiles, footwear, paints and coatings, construction, technology, agriculture, health care, detergent, personal care, furniture, appliances and packaging. Originally known for pioneering innovations in packaging and, later, for rapid and integrated growth in petrochemicals, Huntsman has approximately 12,000 employees and operates from multiple locations worldwide. The Company had 2010 revenues of over $9 billion. For more information about Huntsman, please visit the company’s website at www.huntsman.com.

Forward-Looking Statements:

Statements in this release that are not historical are forward-looking statements. 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 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, financial, economic, competitive, environmental, political, legal, regulatory and technological factors. The company assumes no obligation to provide revisions to any forward-looking statements should circumstances change, except as otherwise required by applicable laws.

SOURCE Huntsman Corporation


Source: PR Newswire