NEWS
Huntsman Reports First Quarter Results; Reports Strong Adjusted EBITDA Improvement Compared to Prior Quarter

FOR IMMEDIATE RELEASE
April 28, 2016
The Woodlands, Texas
NYSE: HUN

First Quarter 2016 Highlights

• Adjusted EBITDA was $274 million compared to $285 million in the prior year period and $240 million in the prior quarter.

• Adjusted diluted income per share was $0.37 compared to $0.40 in the prior year period and $0.51 in the prior quarter.

• Net income attributable to Huntsman Corporation was $56 million compared to $5 million in the prior year period and $4 million in the prior quarter.

• The stronger U.S. dollar reduced adjusted EBITDA by an estimated $19 million compared to the prior year period; a negative impact of approximately $0.05 loss per diluted share.

• First quarter 2016 free cash flow generation improved $34 million compared to the prior year period.

 

Q1 2016 Revenues

THE WOODLANDS, Texas – Huntsman Corporation (NYSE: HUN) today reported first quarter 2016 results with revenues of $2,355 million and adjusted EBITDA of $274 million.

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

“I am pleased with the improvements that we are seeing in our business. We are intensely focused on the three priorities outlined at our recent Investor Day.

Our first priority is growing margins and earnings in our core downstream differentiated businesses. To this end, during the first quarter our total company adjusted EBITDA improved to $274 million from $240 million in the previous quarter.

Our second priority is generating more than $350 million of free cash flow in 2016. Our first quarter results put us well on track to achieving this objective.

Our third priority is the separation of our TiO2 busine ss. We continue to explore a spin to our shareholders as well as other strategic options. As margins improve in our pigments business and we see the full effects of our restructuring efforts, I am encouraged that improving conditions will enable us to achieve this separation.

Our successful first quarter results position us well to accomplish these objectives to increase shareholder value.”

Segment Analysis for 1Q16 Compared to 1Q15

Polyurethanes

The decrease in revenues in our Polyurethanes division for the three months ended March 31, 2016 compared to the same period in 2015 was primarily due to lower average selling prices. MDI average selling prices decreased in response to lower raw material costs and the foreign currency exchange impact of a stronger U.S. dollar primarily against the euro. MTBE average selling prices decreased in-line with lower pricing for high octane gasoline. PO/MTBE sales volumes increased due to the impact of the prior year planned maintenance outage. MDI sales volumes increased due to higher demand in the Americas and European regions. The increase in adjusted EBITDA was primarily due to the impact of the prior year planned PO/MTBE maintenance outage, estimated at $60 million, and higher MDI volumes, partially offset by lower MTBE margins and the foreign currency exchange impact of a stronger U.S. dollar primarily against the euro.

Performance Products

The decrease in revenues in our Performance Products division for the three months ended March 31, 2016 compared to the same period in 2015 was primarily due to lower average selling prices, partially offset by higher 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 increased primarily due to higher sales volumes of ethylene oxide intermediates, partially offset by lower sales volumes for amines and maleic anhydride. The decrease in adjusted EBITDA was primarily due to lower sales volumes for amines and maleic anhydride and lower contribution margins for ethylene and maleic anhydride.

Advanced Materials

The decrease in revenues in our Advanced Materials division for the three months ended March 31, 2016 compared to the same period in 2015 was due to lower sales volumes and lower average selling prices. Sales volumes decreased in the Americas region, primarily due to competitive pressure, partially offset by strong volume growth in our European and Asia Pacific regions. Average selling prices decreased in our European and Asia Pacific regions as a result of competitive pricing pressure and the foreign currency exchange impact of a stronger U.S. dollar primarily against the euro. The increase in adjusted EBITDA was primarily due to higher contribution margins from lower raw material costs.

Textile Effects

The decrease in revenues in our Textile Effects division for the three months ended March 31, 2016 compared to the same period in 2015 was due to lower average selling prices and lower sales volumes. Average selling prices decreased primarily due to 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 destocking within the dyes supply chain. The increase in adjusted EBITDA was primarily due to higher contribution margins from lower raw material costs and lower selling, general and administrative expenses.

Pigments and Additives

The decrease in revenues in our Pigments and Additives division for the three months ended March 31, 2016 compared to the same period in 2015 was due to lower average selling prices, partially offset by higher sales volumes. Average selling prices decreased primarily as a result of competitive pressure and the foreign currency exchange impact of a stronger U.S. dollar primarily against the euro. Sales volumes increased primarily due to increased 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 decreased by $5 million to a loss of $42 million for the three months ended March 31, 2016 compared to a loss of $37 million for the same period in 2015. The decrease in adjusted EBITDA was primarily the result of a decrease in LIFO inventory valuation income, partially offset by a decrease in loss from benzene sales.

Liquidity, Capital Resources and Outstanding Debt

As of March 31, 2016, we had $974 million of combined cash and unused borrowing capacity compared to $1,023 million on December 31, 2015.

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.

On April 1, 2016, we entered into a new $550 million 2016 Term Loan B due 2023. Proceeds from the new term loan were used to repay in full our term loan B due 2017 and remaining term loan C due 2016. We also extended the maturity of our revolving credit facility to 2021 and increased the amount to $650 million.

Total capital expenditures for the period ended March 31, 2016 were $99 million. We expect to spend approximately $450 million annually on capital expenditures in 2016 and 2017.

Income Taxes

During the three months ended March 31, 2016, we recorded an income tax expense of $27 million. During the same period we paid $5 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 first quarter 2016 financial results on Thursday, April 28, 2016 at 10 a.m. ET.

Call-in numbers for the conference call:

  • U.S. participants (888) 679 - 8035
  • International participants (617) 213 - 4848
  • Passcode 503 030 93#

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=P84M7KQQF

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 April 28, 2016 and ending May 5, 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 First Quarter 2016 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:
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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 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.

Media:
Gary Chapman
(281) 719-4324

Investor Relations:
Kurt Ogden
(801) 584-5959