NEWS
Huntsman Reports Fourth Quarter and Full Year 2015 Results; 2015 Adjusted EPS Improves to $2.00 from $1.94 in 2014

FOR IMMEDIATE RELEASE
February 11, 2016
The Woodlands, Texas
NYSE: HUN

Fourth Quarter 2015 Highlights

• Adjusted EBITDA was $240 million compared to $292 million in the prior year period and $311 million in the prior quarter.

• Adjusted diluted income per share was $0.51 compared to $0.33 in the prior year period and $0.47 in the prior quarter.

• Net income attributable to Huntsman Corporation was $4 million compared to net loss of $38 million in the prior year period and net income of $55 million in the prior quarter.

• The stronger U.S. dollar reduced adjusted EBITDA by an estimated $24 million compared to the prior year period; a negative impact of approximately $0.07 loss per diluted share.

• The combination of effective tax planning, certain unusual tax benefits and regional mix of income created an approximate $0.25 per diluted share net tax benefit during the fourth quarter 2015.

• $100 million accelerated share repurchase program completed; $50 million authorization remaining.

Full Year 2015 Highlights

• Adjusted EBITDA was $1,221 million compared to $1,340 million in the prior year.

• Adjusted diluted income per share was $2.00 compared to $1.94 in the prior year.

• Net income attributable to Huntsman Corporation was $93 million compared to $323 million in the prior year.

• The stronger U.S. dollar reduced adjusted EBITDA by an estimated $136 million compared to the prior year; a negative impact of approximately $0.39 loss per diluted share.

• Planned PO/MTBE maintenance at our Port Neches, TX facility reduced adjusted EBITDA in 2015 by approximately $95 million.  This maintenance occurs approximately once every five years.

THE WOODLANDS, Texas – Huntsman Corporation (NYSE: HUN) today reported fourth quarter 2015 results with revenues of $2,332 million and adjusted EBITDA of $240 million. 

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

“During the fourth quarter this year, EBITDA from our cyclical businesses – which include our MTBE, ethylene and TiO2 products – decreased approximately $78 million compared to the prior year. This overshadowed the real strength of our portfolio which is in our downstream differentiated businesses.  Excluding approximately $24 million of foreign currency headwind, the EBITDA from our differentiated businesses improved approximately $50 million compared to the prior year or 27%.

“In 2016, primarily as a result of lower priced oil and a lower global economic growth environment, we expect continued EBITDA pressure on our cyclical businesses.  Growth from our differentiated businesses will offset cyclical pressure and inflationary costs such that we expect our 2016 EBITDA to be a similar amount to 2015.  Importantly however, we expect our free cash flow generation to improve by $350 million in 2016 through lower capital expenditures, restructuring and maintenance.  In 2016 we will continue to pursue actively a separation of our TiO2 business through a spinoff to shareholders or other strategic transaction.”

Segment Analysis for 4Q15 Compared to 4Q14

Polyurethanes

The decrease in revenues in our Polyurethanes division for the three months ended December 31, 2015 compared to the same period in 2014 was due to lower average selling prices and lower MTBE sales volumes.  MDI average selling prices decreased in response to lower raw material costs and the currency exchange impact of a stronger U.S. d ollar primarily against the Euro.  PO/MTBE average selling prices decreased in-line with lower pricing for high octane gasoline.  MDI sales volumes increased due to higher demand as well as competitor outages in the Asian region.  The decrease in adjusted EBITDA was primarily due to lower MTBE contribution margins and the foreign currency exchange impact of a stronger U.S. dollar primarily against the Euro partially offset by higher MDI contribution margins.

Performance Products

The decrease in revenues in our Performance Products division for the three months ended December 31, 2015 compared to the same period in 2014 was primarily due to lower average selling prices and lower sales volumes.  Average selling prices decreased primarily in response to lower raw material costs and the foreign currency exchange impact of a stronger U.S. dollar primarily against the Euro.  Sales volumes decreased primarily due to customer destocking and competitive pressure.  The decrease in adjusted EBITDA was primarily due to lower ethylene contribution margins partially offset by higher contribution margins in our amines business.

Advanced Materials

The decrease in revenues in our Advanced Materials division for the three months ended December 31, 2015 compared to the same period in 2014 was due to lower sales volumes and lower average selling prices.  Sales volumes decreased primarily due to the de-selection of certain business, customer destocking and competitive pressure.  Average selling prices increased on a local currency basis in the Americas primarily due to our focus on higher value markets but this was more than offset by the foreign currency exchange impact of a stronger U.S. dollar primarily against the Euro globally.  The increase in adjusted EBITDA was primarily due to higher global contribution margins from lower raw material costs and higher selling prices in the Americas.

Textile Effects

The decrease in revenues in our Textile Effects division for the three months ended December 31, 2015 compared to the same period in 2014 was due to lower average selling prices and lower sales volumes.  Average selling prices increased on a local currency basis due to certain price increase initiatives but this was more than offset by the foreign currency exchange impact of a stronger U.S. dollar primarily against the Euro.  Sales volumes decreased primarily due to the de-selection of lower value business and challenging market conditions.  The increase in adjusted EBITDA was primarily due to higher contribution margins from lower raw material costs and product mix improvements.

Pigments and Additives

The decrease in revenues in our Pigments and Additives division for the three months ended December 31, 2015 compared to the same period in 2014 was due to lower average selling prices and lower sales volumes.  Average selling prices decreased primarily as a result of titanium dioxide over supply in the market place and the foreign currency exchange impact of a stronger U.S. dollar primarily against the Euro.  Sales volumes decreased primarily as a result of lower end use demand.  The decrease in adjusted EBITDA was primarily due to lower contribution margins for titanium dioxide.

Corporate, LIFO and Other

Adjusted EBITDA from Corporate, LIFO and Other increased by $10 million to a loss of $38 million for the three months ended December 31, 2015 compared to a loss of $48 million for the same period in 2014.  The increase in adjusted EBITDA was primarily the result of an increase in income from benzene sales of $7 million.

Liquidity, Capital Resources and Outstanding Debt

As of December 31, 2015, we had $1,023 million of combined cash and unused borrowing capacity compared to $1,601 million on December 31, 2014.

On September 29, 2015, our Board of Directors authorized the repurchase of up to $150 million in shares of our common stock. On October 27, 2015 we entered into and funded an accelerated share repurchase agreement to repurchase $100 million of our common stock. The accelerated share repurchase was completed in January 2016 with 8.6 million shares repurchased.

During 2015 we spent $663 million on capital expenditures; we expect to spend approximately $450 million annually on capital expenditures in 2016 and 2017.

Income Taxes

During the three months ended December 31, 2015, we recorded an income tax benefit of $39 million as a result of the combination of effective tax planning, certain unusual tax benefits and the regional mix of income.  During the same period we paid $45 million in cash for income taxes. 

We expect our 2016 and long term adjusted effective tax rate to be approximately 30%.

Earnings Conference Call Information

We will hold a conference call to discuss our fourth quarter and full year 2015 financial results on Thursday, February 11, 2016 at 9:00 a.m. ET. 

Call-in numbers for the conference call:
U.S. participants (888) 713 - 4199
International participants (617) 213 - 4861
Passcode 810 262 68#

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=P8K7QH79L

Webcast Information

The conference call will be available via webcast and can be accessed from the company’s website at ir.huntsman.com.

Replay Information

The conference call will be available for replay beginning February 11, 2016 and ending February 18, 2016.

Call-in numbers for the replay:
U.S. participants (888) 286 - 8010
International participants (617) 801 - 6888
Replay code 29385180

Click here to read the full press release on Huntsman's full year and fourth quarter 2015 results.

About Huntsman:
Huntsman Corporation is a publicly traded global manufacturer and marketer of differentiated chemicals with 2015 revenues of approximately $10 billion.  Our chemical products number in the thousands and are sold worldwide to manufacturers serving a broad and diverse range of consumer and industrial end markets. We operate more than 100 manufacturing and R&D facilities in approximately 30 countries and employ approximately 15,000 associates within our 5 distinct business divisions. For more information about Huntsman, please visit the company's website at www.huntsman.com.

Social Media:
Twitter: www.twitter.com/Huntsman_Corp
Facebook: www.facebook.com/huntsmancorp
LinkedIn: www.linkedin.com/company/huntsman

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 expectat ions. 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.

Media:
Gary Chapman
(281) 719-4324

Investor Relations:
Kurt Ogden
(801) 584-5959