STRONG ADJUSTED EBITDA RESULTS PRIMARILY FROM IMPROVED CONTRIBUTION MARGINS AND REDUCED CASH FIXED COSTS
Third Quarter 2009 Highlights
- Revenues for the third quarter of 2009 were $2,108 million, an increase of 13% compared to $1,866 million for the second quarter of 2009 and a decrease of 23% compared to $2,731 million for the third quarter of 2008.
- Adjusted EBITDA for the third quarter of 2009 was $200 million compared to $96 million for the second quarter of 2009 and $194 million for the third quarter of 2008.
- Net loss attributable to Huntsman Corporation for the third quarter of 2009 was $68 million or $0.29 loss per diluted share compared to net income attributable to Huntsman Corporation of $406 million or $1.51 per diluted share for the second quarter of 2009 and net loss attributable to Huntsman Corporation of $20 million or $0.09 loss per diluted share for the third quarter of 2008. Adjusted net loss for the third quarter of 2009 was $55 million or $0.24 loss per diluted share, impacted by an unusually high adjusted effective tax rate (more than 300%, due to tax valuation allowances) which more than offset adjusted positive pretax earnings of $27 million(1)—we believe our long term effective tax rate is 35%. This compares to adjusted net loss of $64 million or $0.27 loss per diluted share for the second quarter of 2009 and adjusted net loss of $2 million or $0.01 loss per diluted share for the third quarter of 2008.
- On October 16, 2009, we terminated our existing short term (364 day) accounts receivable securitization program that was scheduled to mature November, 2009. We replaced it with two new multi-year securitization programs (a U.S. program and a European program).
- On September 27, 2009, we announced that our styrenics operations in West Footscray, Australia would be closed. This site c
losure completes our process of exiting all commodity polymer businesses. This operation represents less than 2% of our 2008 global sales, and posted an adjusted EBITDA loss of almost $24 million for 2008, based on an operating loss of approximately $29 million less impairment charges of $5 million.
- On August 31, 2009, we announced we had entered into a “stalking horse” asset and equity purchase agreement with Tronox Incorporated. The agreement provides for the purchase out of bankruptcy of certain titanium dioxide and electrolytics production facilities, as well as a joint venture interest, for $415 million including working capital. We expect a decision by the U.S. Bankruptcy Court in early December 2009.
- On July 23, 2009, we redeemed all $296 million principal amount of our outstanding 11.625% senior secured notes due 2010 and on August 3, 2009, we redeemed all $198 million principal amount of our outstanding 11.5% senior notes due 2012. This debt reduction eliminated all meaningful debt maturities until 2013 other than our accounts receivable securitization programs.
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