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Last updated on April 25, 2014 at 5:25 EDT

Huntsman Releases Fourth Quarter And Full Year 2012 Results; Reports Record Full Year Adjusted EBITDA Of $1.4 Billion And Announces Increased Common Dividend

February 12, 2013

THE WOODLANDS, Texas, Feb. 12, 2013 /PRNewswire/ —

Full Year 2012 Highlights

  • Net income attributable to Huntsman Corporation increased to $363 million compared to $247 million in the prior year period.
  • Adjusted EBITDA improved 15% to $1,396 million compared to the prior year period.
  • Adjusted diluted income per share improved 33% to $2.25 compared to the prior year period.

Fourth Quarter 2012 Highlights

  • Adjusted EBITDA was $233 million compared to $243 million in the prior year period.
  • Adjusted diluted income per share was $0.24 compared to $0.28 in the prior year period.
  • Net loss attributable to Huntsman Corporation was $40 million compared to $105 million of income in the prior year period. The decrease from the prior year period was primarily due to a $78 million loss on early extinguishment of debt (compared to $2 million in the prior year period) and $40 million of restructuring costs (compared to $4 million of credits in the prior year period).

Increased Common Dividend

  • The company’s board of directors has declared a $0.125 per share cash dividend on its common stock. The dividend is payable on March 29, 2013 to stockholders of record as of March 15, 2013.
                                                       Three months ended                Twelve months ended
                                                       ------------------
                                               December 31,                September 30,                     December 31,
                                               ------------                                                  ------------
    In millions, except
     per share amounts,
     unaudited                                 2012                   2011      2012                  2012                   2011
    -------------------                        ----                   ----      ----                  ----                   ----

    Revenues                                 $2,619                 $2,632    $2,741               $11,187                $11,221

    Net (loss) income
     attributable to
     Huntsman
     Corporation                               $(40)                  $105      $116                  $363                   $247
    Adjusted net
     income(1)                                  $58                    $68      $168                  $542                   $408

    Diluted (loss)
     income per share                        $(0.17)                 $0.44     $0.48                 $1.51                  $1.02
    Adjusted diluted
     income per share(1)                      $0.24                  $0.28     $0.70                 $2.25                  $1.69

    EBITDA(1)                                  $104                   $273      $341                $1,187                 $1,039
    Adjusted EBITDA(1)                         $233                   $243      $401                $1,396                 $1,214

    See end of press release for footnote explanations

Huntsman Corporation (NYSE: HUN) today reported fourth quarter 2012 results with revenues of $2,619 million and adjusted EBITDA of $233 million.

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

“Our 2012 adjusted EBITDA of $1.4 billion represents record earnings for our current configuration of businesses. I am very enthusiastic about the direction in which the company is headed. Within our largest division – Polyurethanes – our MDI business is growing at attractive rates, and future prospects are pointing towards tighter market conditions. In the fourth quarter, I was pleased to see that our smallest division – Textile Effects – recorded positive earnings as a result of our restructuring and cost cutting efforts. Our Pigments division is going through a business cycle where we expect an improvement in earnings beginning in the second half of 2013.

We have put programs in place across our divisions that will enhance our future competitiveness and increase shareholder value. I expect the future annual benefits of these programs to be approximately $190 million when complete in the middle of 2014.

The company generated more than $200 million in cash from operations and repaid $50 million of term loans in the fourth quarter. We look forward to funding future growth opportunities with free cash flow generation and remain committed to reducing our overall debt.”

Segment Analysis for 4Q12 Compared to 4Q11

Polyurethanes

The increase in revenues in our Polyurethanes division for the three months ended December 31, 2012 compared to the same period in 2011 was due to higher average selling prices and higher sales volumes partially offset by the strength of the U.S. dollar against the euro. PO/MTBE average selling prices increased primarily due to favorable market conditions. MDI average selling prices increased in all regions partially offset by the strength of the U.S. dollar against the euro. MDI sales volumes increased primarily due to strong demand globally for insulation and the housing & automotive recovery in North America, PO/MTBE volumes increased due to strong demand. The increase in adjusted EBITDA was primarily due to higher volumes, higher contribution margins and lower fixed costs.

Performance Products

The decrease in revenues in our Performance Products division for the three months ended December 31, 2012 compared to the same period in 2011 was due to lower sales volumes and lower average selling prices. Sales volumes decreased primarily due to lower product availability of intermediates as we prepared for our first quarter 2013 maintenance and softer demand for European surfactants. Average selling prices declined due to lower raw material costs and the strength of the U.S. dollar against major international currencies, partially offset by an improvement in sales mix. The increase in adjusted EBITDA was primarily due to higher sales volumes and higher contribution margins in our amines business as well as higher contribution margins in our maleic anhydride and North American intermediates businesses.

Advanced Materials

Revenues were essentially unchanged in our Advanced Materials division for the three months ended December 31, 2012 compared to the same period in 2011 as higher sales volumes offset lower average selling prices. Sales volumes increased primarily due to stronger demand in the Americas, Asia Pacific and India while sales volumes in Europe decreased due to planned manufacturing maintenance and lower demand in the wind energy market. Average selling prices decreased primarily due to competitive market pressure, lower raw material costs in most regions and the strength of the U.S. dollar against major international currencies. The decrease in adjusted EBITDA was primarily due to lower contribution margins partially offset by lower selling, general and administrative costs as a result of recent restructuring efforts.

On January 23, 2013 we announced a comprehensive restructuring program in our Advanced Materials division designed to improve efficiencies and increase its global competitiveness. We expect the program to be complete by the middle of 2014 with future annual benefits of approximately $70 million.

Textile Effects

The increase in revenues in our Textile Effects division for the three months ended December 31, 2012 compared to the same period in 2011 was due to higher sales volumes, partially offset by lower average selling prices. Sales volumes increased due to increased global market share and improved demand. The increase in local currency average selling prices was offset by the strength of the U.S. dollar against major international currencies. The increase in adjusted EBITDA was primarily due to higher sales volumes and lower manufacturing and selling, general and administrative costs as a result of our restructuring efforts.

Pigments

The decrease in revenues in our Pigments division for the three months ended December 31, 2012 compared to the same period in 2011 was due to lower sales volumes and lower average selling prices. Sales volumes decreased primarily due to lower global demand and customer destocking. Average selling prices decreased due to lower global demand and the strength of the U.S. dollar against major international currencies. The decrease in adjusted EBITDA was primarily due to lower sales volumes and lower contribution margins.

Corporate, LIFO and Other

Adjusted EBITDA from Corporate, LIFO and Other decreased by $15 million to a loss of $49 million for the three months ended December 31, 2012 compared to a loss of $34 million for the same period in 2011. The decrease in adjusted EBITDA was primarily the result of a $6 million increase in LIFO inventory valuation expense (income of nil in 2012 compared to $6 million of income in 2011) and increased corporate expenses.

Liquidity, Capital Resources and Outstanding Debt

As of December 31, 2012 we had $887 million of combined cash and unused borrowing capacity compared to $1,043 million at December 31, 2011.

For the three months ended December 31, 2012 our primary net working capital decreased by $130 million and we generated $218 million in cash from operations. For the year ended December 31, 2012 our primary net working capital increased by $102 million and we generated $774 million in cash from operations.

On October 31, 2012 we repaid $50 million of our senior secured term loans due 2014.

On December 3, 2012 we used the proceeds of our recent 4.875% senior notes offering due 2020 to redeem $400 million of 5.5% senior notes due 2016. In connection with the redemption, we recognized a loss on early extinguishment of debt in the fourth quarter of approximately $77 million. The 5.5% senior notes were favorably issued to us at less than market interest rates; accounting standards required us to record the notes on our balance sheet at less than face value and amortize the difference over time up to the full face value of $400 million. As a result, when we refinanced the notes we recognized an increase of recorded debt on our balance sheet of $73 million.

Total capital expenditures for the year ended December 31, 2012 were $412 million. We expect to spend approximately $450 million on capital expenditures in 2013 which approximates our annual depreciation and amortization.

Income Taxes

During the three months ended December 31, 2012 we recorded an income tax benefit of $17 million and paid $71 million in cash for income taxes. Our adjusted effective income tax rate for the three months ended December 31, 2012 was approximately 26%.

During the year ended December 31, 2012 we recorded income tax expense of $169 million and paid $224 million in cash for income taxes. Our adjusted effective income tax rate for the year ended December 31, 2012 was approximately 30%.

We expect our full year 2013 adjusted effective tax rate to be approximately 35% primarily due to the effect of tax valuation allowances and expected regional mix of income. We expect our long term effective income tax rate to be approximately 30 – 35%.

Conference Call Information

We will hold a conference call to discuss our fourth quarter and full year 2012 financial results on Tuesday, February 12, 2013 at 10:00 a.m. ET.

    Call-in numbers for the conference call:
    U.S. participants                        (888) 713 - 4205
    International participants               (617) 213 - 4862
    Passcode                                         39830729

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=P9P3QHHYU

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 huntsman.com.

Replay Information

The conference call will be available for replay beginning February 12, 2013 and ending February 19, 2013.

    Call-in numbers for the replay:
    U.S. participants                        (888) 286 - 8010
    International participants               (617) 801 - 6888
    Replay code                                      46339142

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

                                                     Three months ended         Twelve months ended
                                                        December 31,                December 31,
                                                        ------------                ------------
    In millions, except per share
     amounts, unaudited                                 2012              2011               2012      2011
    -----------------------------                       ----              ----               ----      ----

    Revenues                                          $2,619            $2,632            $11,187   $11,221
    Cost of goods sold                                 2,199             2,243              9,153     9,381
                                                       -----             -----              -----     -----
    Gross profit                                         420               389              2,034     1,840
    Operating expenses                                   305               246              1,097     1,067
    Restructuring, impairment and
     plant closing costs
     (credits)                                            40                (4)                92       167
                                                         ---               ---                ---       ---
    Operating income                                      75               147                845       606
    Interest expense, net                                (54)              (62)              (226)     (249)
    Equity in income of
     investment in unconsolidated
     affiliates                                            2                 2                  7         8
    Loss on early extinguishment
     of debt                                             (78)               (2)               (80)       (7)
    Other (loss) income                                   (1)                2                  1         2
                                                         ---                                  ---       ---
    (Loss) income before income
     taxes                                               (56)               87                547       360
    Income tax benefit (expense)                          17                 2               (169)     (109)
                                                         ---                                 ----      ----
    (Loss) income from continuing
     operations                                          (39)               89                378       251
    Income (loss) from
     discontinued operations, net
     of tax(2)                                             -                 4                 (7)       (1)
    Extraordinary gain on the
     acquisition of a business,
     net of tax of nil                                     1                 2                  2         4
                                                         ---                                  ---       ---
    Net (loss) income                                    (38)               95                373       254
    Net (income) loss
     attributable to
     noncontrolling interests,
     net of tax                                           (2)               10                (10)       (7)
                                                         ---
    Net (loss) income
     attributable to Huntsman
     Corporation                                        $(40)             $105               $363      $247
                                                        ====              ====               ====      ====

    Adjusted EBITDA(1)                                  $233              $243             $1,396    $1,214

    Adjusted net income(1)                               $58               $68               $542      $408

    Basic (loss) income per share                     $(0.17)            $0.45              $1.53     $1.04
    Diluted (loss) income per
     share                                            $(0.17)            $0.44              $1.51     $1.02
    Adjusted diluted income per
     share(1)                                          $0.24             $0.28              $2.25     $1.69

    Common share information:
    Basic shares outstanding                           238.2             235.7              237.6     237.6
    Diluted shares                                     238.2             239.5              240.6     241.7
    Diluted shares for adjusted
     diluted income per share                          241.3             239.5              240.6     241.7

    See end of press release for footnote explanations

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

                                                       Three months ended                                Twelve months ended
                                                          December 31,            Better /                  December 31,              Better /
                                                          ------------                                      ------------
    In millions, unaudited                                2012              2011           (Worse)                     2012     2011           (Worse)
    ----------------------                                ----              ----           ------                      ----     ----           ------

    Segment Revenues:
    Polyurethanes                                       $1,182            $1,043                     13%             $4,894   $4,434                     10%
    Performance Products                                   723               755                    (4)%              3,065    3,301                    (7)%
    Advanced Materials                                     311               313                    (1)%              1,325    1,372                    (3)%
    Textile Effects                                        190               174                      9%                752      737                      2%
    Pigments                                               286               399                   (28)%              1,436    1,642                   (13)%
    Eliminations and other                                 (73)              (52)                  (40)%               (285)    (265)                   (8)%
                                                           ---               ---                                       ----     ----

    Total                                               $2,619            $2,632                    ---             $11,187  $11,221                    ---
                                                        ======            ======                                    =======  =======

    Segment Adjusted EBITDA(1):
    Polyurethanes                                         $186               $79                    135%               $772     $476                     62%
    Performance Products                                    79                60                     32%                361      374                    (3)%
    Advanced Materials                                       6                15                   (60)%                 92      111                   (17)%
    Textile Effects                                          1               (22)                    NM                 (22)     (64)                    66%
    Pigments                                                10               145                   (93)%                362      508                   (29)%
    Corporate, LIFO and other                              (49)              (34)                  (44)%               (169)    (191)                    12%

    Total                                                 $233              $243                    (4)%             $1,396   $1,214                     15%
                                                          ====              ====                                     ======   ======

    See end of press release for footnote explanations

    Table 3 - Factors Impacting Sales Revenues
    ------------------------------------------

                                                               Three months ended
                                                           December 31, 2012 vs. 2011
                                                           --------------------------
                                                     Average Selling Price(a)
                                                     -----------------------
                                                              Local                                    Exchange                Sales Mix        Sales
    Unaudited                                                Currency                                    Rate                   & Other       Volume(a)       Total
    ---------                                                --------                                    ----                   -------        --------       -----

    Polyurethanes                                                            6%                                      (2)%                (1)%             10%         13%
    Performance Products                                                   (3)%                                      (2)%                  5%            (4)%        (4)%
    Advanced Materials                                                     (6)%                                      (3)%                  1%              7%        (1)%
    Textile Effects                                                          1%                                      (2)%                (1)%             11%          9%
    Pigments                                                               (9)%                                      (2)%                ---            (17)%       (28)%
    Total Company                                                          ---                                       (2)%                ---               2%        ---

                                                             Twelve months ended
                                                         December 31, 2012 vs. 2011
                                                         --------------------------
                                                     Average Selling Price(a)
                                                     -----------------------
                                                              Local                                    Exchange                Sales Mix        Sales
    Unaudited                                                Currency                                    Rate                   & Other       Volume(a)       Total
    ---------                                                --------                                    ----                   -------        --------       -----

    Polyurethanes                                                            4%                                      (2)%                ---               8%         10%
    Performance Products                                                   (3)%                                      (3)%                  2%            (3)%        (7)%
    Advanced Materials                                                     (6)%                                      (4)%                ---               7%        (3)%
    Textile Effects                                                        ---                                       (4)%                (1)%              7%          2%
    Pigments                                                                14%                                      (5)%                ---            (22)%       (13)%
    Total Company                                                            2%                                      (3)%                  1%            ---         ---

    (a) Excludes revenues and sales volumes primarily from tolling arrangements and the sale of by-products and raw materials.

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

                                                                                                                                     Income Tax                       Net Income (Loss)               Diluted Income (Loss)
                                                                        EBITDA                      (Expense) Benefit           Attrib. to HUN Corp.                      Per Share
                                                                        ------                      -----------------           --------------------                     ---------
                                                                  Three months ended               Three months ended            Three months ended                  Three months ended
                                                                     December 31,                     December 31,                  December 31,                        December 31,
                                                                     ------------                     ------------                  ------------                        ------------
    In millions, except per share amounts,
     unaudited                                                      2012                2011                     2012           2011                 2012                     2011                2012                     2011
    --------------------------------------                          ----                ----                     ----           ----                 ----                     ----                ----                     ----

    GAAP(1)                                                         $104                $273                      $17             $2                 $(40)                    $105              $(0.17)                   $0.44
    Adjustments:
    Legal settlements and related expenses                             6                   8                       (2)            (3)                   4                        5                0.02                     0.02
    Loss on early extinguishment of debt                              78                   2                      (28)            (1)                  50                        1                0.21                        -
    Restructuring, impairment, plant closing and
     transition costs (credits)                                       45                  (4)                      (4)            (7)                  41                      (11)               0.17                    (0.05)
    Discount amortization on settlement financing
     associated with the terminated merger                           N/A                 N/A                       (3)            (2)                   5                        5                0.02                     0.02
    Acquisition expenses                                               3                   -                       (1)             -                    2                        -                0.01                        -
    Gain on disposition of businesses/assets                          (3)                (34)                       -              3                   (3)                     (31)              (0.01)                   (0.13)
    Loss (income) from discontinued operations,
     net of tax(2)                                                     1                   -                      N/A            N/A                    -                       (4)                  -                    (0.02)
    Extraordinary gain on the acquisition of a
     business, net of tax                                             (1)                 (2)                     N/A            N/A                   (1)                      (2)                  -                    (0.01)

    Adjusted(1)                                                     $233                $243                     $(21)           $(8)                 $58                      $68               $0.24                    $0.28
                                                                    ====                ====                     ====            ===                  ===                      ===               -----                    -----

    Adjusted income tax expense                                                                                                                        21                        8
    Net income (loss) attributable to
     noncontrolling interests, net of tax                                                                                                               2                      (10)

    Adjusted pre-tax income(1)                                                                                                                        $81                      $66
                                                                                                                                                      ===                      ===

    Adjusted effective tax rate                                                                                                                        26%                      12%

                                                                                                                             Income Tax                    Net Income (Loss)            Diluted Income (Loss)
                                                                      EBITDA                   (Expense) Benefit        Attrib. to HUN 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                                                                   2012                            2012                       2012                              2012
    --------------------------------------                                       ----                            ----                       ----                              ----

    GAAP(1)                                                         $341                                         $(61)                               $116                                        $0.48
    Adjustments:
    Legal settlements and related expenses                             4                                           (2)                                  2                                         0.01
    Loss on early extinguishment of debt                               1                                           (1)                                  -                                            -
    Loss on initial consolidation of subsidiaries                      4                                            -                                   4                                         0.02
    Restructuring, impairment, plant closing and
     transition costs                                                 51                                          (11)                                 40                                         0.17
    Discount amortization on settlement financing
     associated with the terminated merger                           N/A                                           (3)                                  5                                         0.02
    Acquisition expenses                                               1                                            -                                   1                                            -
    Loss from discontinued operations, net of
     tax(2)                                                            -                                          N/A                                   1                                            -
    Extraordinary gain on the acquisition of a
     business, net of tax(3)                                          (1)                                         N/A                                  (1)                                           -

    Adjusted(1)                                                     $401                                         $(78)                               $168                                        $0.70
                                                                    ====                                         ====                                ====                                        -----

    Adjusted income tax expense                                                                                                                        78

    Adjusted pre-tax income(1)                                                                                                                       $250
                                                                                                                                                     ====

    Adjusted effective tax rate                                                                                                                        31%

                                                                                                                             Income Tax                    Net Income (Loss)            Diluted Income (Loss)
                                                                      EBITDA                   (Expense) Benefit        Attrib. to HUN Corp.                   Per Share
                                                                      ------                   -----------------       --------------------                   ---------
                                                               Twelve months ended            Twelve months ended       Twelve months ended              Twelve months ended
                                                                   December 31,                  December 31,               December 31,                     December 31,
                                                                   ------------                  ------------               ------------                     ------------
    In millions, except per share amounts,
     unaudited                                                      2012                2011                     2012           2011                 2012                     2011                2012                     2011
    --------------------------------------                          ----                ----                     ----           ----                 ----                     ----                ----                     ----

    GAAP(1)                                                       $1,187              $1,039                    $(169)         $(109)                $363                     $247               $1.51                    $1.02
    Adjustments:
    Legal settlements and related expenses                            11                  46                       (4)           (17)                   7                       29                0.03                     0.12
    Loss on early extinguishment of debt                              80                   7                      (29)            (3)                  51                        4                0.21                     0.02
    Loss (gain) on initial consolidation of
     subsidiaries                                                      4                 (12)                       -              2                    4                      (10)               0.02                    (0.04)
    Restructuring, impairment, plant closing and
     transition costs                                                109                 167                      (18)           (11)                  91                      156                0.38                     0.65
    Discount amortization on settlement financing
     associated with the terminated merger                           N/A                 N/A                      (11)           (10)                  20                       18                0.08                     0.07
    Acquisition expenses                                               5                   5                       (1)            (1)                   4                        4                0.02                     0.02
    Gain on disposition of businesses/assets                          (3)                (40)                       -              3                   (3)                     (37)              (0.01)                   (0.15)
    Loss from discontinued operations, net of
     tax(2)                                                            5                   6                      N/A            N/A                    7                        1                0.03                        -
    Extraordinary gain on the acquisition of a
     business, net of tax                                             (2)                 (4)                     N/A            N/A                   (2)                      (4)              (0.01)                   (0.02)

    Adjusted(1)                                                   $1,396              $1,214                    $(232)         $(146)                $542                     $408               $2.25                    $1.69
                                                                  ======              ======                    =====          =====                 ====                     ====               -----                    -----

    Adjusted income tax expense                                                                                                                       232                      146
    Net income attributable to noncontrolling
     interests, net of tax                                                                                                                             10                        7

    Adjusted pre-tax income(1)                                                                                                                       $784                     $561
                                                                                                                                                     ====                     ====

    Adjusted effective tax rate                                                                                                                        30%                      26%

    See end of press release for footnote explanations

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

                                                           Three months ended               Twelve months ended
                                                           ------------------
                                                    December 31,              September 30,                      December 31,
                                                    ------------                                                ------------
    In millions, unaudited                         2012                2011        2012                 2012                   2011
    ----------------------                         ----                ----        ----                 ----                   ----

    Net (loss) income
     attributable to Huntsman
     Corporation                                   $(40)               $105        $116                 $363                   $247
    Interest expense, net                            54                  62          56                  226                    249
    Income tax (benefit)
     expense from continuing
     operations                                     (17)                 (2)         61                  169                    109
    Income tax benefit from
     discontinued operations(2)                      (1)                 (4)          -                   (3)                    (5)
    Depreciation and
     amortization of continuing
     operations                                     108                 112         107                  427                    439
    Depreciation and
     amortization of
     discontinued operations(2)                       -                   -           1                    5                      -

    EBITDA(1)                                      $104                $273        $341               $1,187                 $1,039
                                                   ====                ====        ====               ======                 ======

    See end of press release for footnote explanations

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

                                           December 31,        September 30,        December 31,
    In
     millions                                             2012                 2012                2011
    ---------                                             ----                 ----                ----
                                                                (unaudited)

    Cash                                                  $396                 $444                $562
     Accounts
     and
     notes
     receivable,
     net                                                 1,534                1,626               1,529
    Inventories                                          1,819                1,807               1,539
     Other
     current
     assets                                                370                  365                 316
     Property,
     plant
     and
     equipment,
     net                                                 3,745                3,626               3,622
     Other
     assets                                              1,020                1,078               1,089

     Total
     assets                                             $8,884               $8,946              $8,657
                                                        ======               ======              ======

     Accounts
     payable                                            $1,102               $1,017                $862
     Other
     current
     liabilities                                           791                  758                 752
     Current
     portion
     of
     debt                                                  288                  130                 212
     Long-
     term
     debt                                                3,414                3,550               3,730
     Other
     liabilities                                         1,393                1,275               1,325
     Total
     equity                                              1,896                2,216               1,776

     Total
     liabilities
     and
     equity                                             $8,884               $8,946              $8,657
                                                        ======               ======              ======

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

                                                        December 31,             September 30,        December 31,
    In millions                                                         2012                     2012                2011
    -----------                                                         ----                     ----                ----
                                                                                  (unaudited)

    Debt:
    Senior credit facilities                                          $1,565 (a)               $1,613              $1,696
    Accounts receivable
     programs                                                            241                      237                 237
    Senior notes                                                         568 (b)                  490                 472
    Senior subordinated notes                                            892                      892                 976
    Variable interest entities                                           270                      266                 281
    Other debt                                                           166                      182                 280

    Total debt -excluding
     affiliates                                                        3,702                    3,680               3,942
                                                                       -----                    -----               -----

    Total cash                                                           396                      444                 562
                                                                         ---                      ---                 ---

    Net debt- excluding
     affiliates                                                       $3,306                   $3,236              $3,380
                                                                      ======                   ======              ======

    (a) net of $26 million unamortized discount as of December 31, 2012
    (b) net of $32 million unamortized discount as of December 31, 2012

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

                                                  Three months ended        Year ended
                                                     December 31,          December 31,
                                                                           ------------
    In millions, unaudited                       2012                2012        2011
    ----------------------                       ----                ----        ----

    Total cash at beginning
     of period                                   $444                $562        $973

    Net cash provided by
     operating activities                         218                 774         365
    Net cash used in
     investing activities                        (172)               (471)       (280)
    Net cash used in
     financing activities                         (95)               (473)       (490)
    Effect of exchange rate
     changes on cash                                1                   3          (7)
    Change in restricted
     cash                                           -                   1           1

    Total cash at end of
     period                                      $396                $396        $562
                                                 ====                ====        ====

    Supplemental cash flow
     information:
    Cash paid for interest                       $(32)              $(209)      $(204)
    Cash paid for income
     taxes                                        (71)               (224)       (119)
    Cash paid for capital
     expenditures                                (164)               (412)       (330)
    Depreciation &
     amortization                                 108                 432         439

    Changes in primary
     working capital:
    Accounts and notes
     receivable                                   102                   -        (121)
    Inventories                                     4                (248)       (161)
    Accounts payable                               24                 146          24

    Total source (use) of
     cash                                        $130               $(102)      $(258)
                                                 ====               =====       =====

    Footnotes
    ---------
    (1)            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 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:  EBITDA from
                   discontinued operations; restructuring,
                   impairment, plant closing and transition
                   costs (credits); acquisition expenses;
                   certain legal settlements and related
                   expenses; loss on early extinguishment of
                   debt; loss (gain) on initial consolidation
                   of subsidiaries; extraordinary loss (gain)
                   on the acquisition of a business; and loss
                   (gain) on disposition of businesses/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, plant closing and
                   transition costs (credits); discount
                   amortization on settlement financing
                   associated with the terminated merger;
                   acquisition expenses; certain legal
                   settlements and related expenses; loss on
                   early extinguishment of debt; loss (gain) on
                   initial consolidation of subsidiaries;
                   extraordinary loss (gain) on the acquisition
                   of a business; and loss (gain) on
                   disposition of businesses/assets.   We do
                   not adjust for changes in tax valuation
                   allowances because we do not believe it
                   provides more meaningful information than is
                   provided under GAAP.  The reconciliation of
                   adjusted net income (loss) to net income
                   (loss) attributable to Huntsman Corporation
                   common stockholders is set forth in Table 4
                   above.

    (2)            During the first quarter 2010 we closed our
                   Australian styrenics operations, results
                   from this business are treated as
                   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 2012 revenues of over $11 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