hun20240930_10q.htm

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

Form 10-Q

(Mark One)
☒	QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended September 30, 2024

OR

☐	TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from to

Commission File Number	Exact Name of Registrant as Specified in its Charter, Principal Office Address and Telephone Number	State of Incorporation or Organization	I.R.S. Employer Identification No.
001-32427	Huntsman Corporation 10003 Woodloch Forest Drive The Woodlands, Texas 77380 (281) 719-6000	Delaware	42-1648585
333-85141	Huntsman International LLC 10003 Woodloch Forest Drive The Woodlands, Texas 77380 (281) 719-6000	Delaware	87-0630358

Securities registered pursuant to Section 12(b) of the Act:

Registrant	Title of each class	Trading Symbol	Name of each exchange on which registered
Huntsman Corporation	Common Stock, par value $0.01 per share	HUN	New York Stock Exchange
Huntsman International LLC	NONE	NONE	NONE

Indicate by check mark whether the registrant: (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.

Huntsman Corporation	Yes ☒	No ☐
Huntsman International LLC	Yes ☒	No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).

Huntsman Corporation	Yes ☒	No ☐
Huntsman International LLC	Yes ☒	No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act. (Check one):

Huntsman Corporation	Large accelerated filer ☒	Accelerated filer ☐	Non-accelerated filer ☐	Smaller reporting company ☐	Emerging growth company ☐
Huntsman International LLC	Large accelerated filer ☐	Accelerated filer ☐	Non-accelerated filer ☒	Smaller reporting company ☐	Emerging Growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.

Huntsman Corporation		☐
Huntsman International LLC		☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).

Huntsman Corporation	Yes ☐	No ☒
Huntsman International LLC	Yes ☐	No ☒

On October 21, 2024, 172,992,221 shares of common stock of Huntsman Corporation were outstanding and 2,728 units of membership interest of Huntsman International LLC were outstanding. There is no trading market for Huntsman International LLC’s units of membership interest. All of Huntsman International LLC’s units of membership interest are held by Huntsman Corporation.

This Quarterly Report on Form 10-Q presents information for two registrants: Huntsman Corporation and Huntsman International LLC. Huntsman International LLC is a wholly-owned subsidiary of Huntsman Corporation and is the principal operating company of Huntsman Corporation. The information reflected in this Quarterly Report on Form 10-Q is equally applicable to both Huntsman Corporation and Huntsman International LLC, except where otherwise indicated. Huntsman International LLC meets the conditions set forth in General Instructions H(1)(a) and (b) of Form 10-Q and, to the extent applicable, is therefore filing this form with a reduced disclosure format.

Table of Contents

HUNTSMAN CORPORATION AND SUBSIDIARIES

HUNTSMAN INTERNATIONAL LLC AND SUBSIDIARIES

QUARTERLY REPORT ON FORM 10-Q FOR THE QUARTERLY PERIOD

ENDED September 30, 2024

TABLE OF CONTENTS

		Page
PART I	FINANCIAL INFORMATION	4
ITEM 1.	Condensed Consolidated Financial Statements (Unaudited)	4
	Huntsman Corporation and Subsidiaries:
	Unaudited Condensed Consolidated Balance Sheets	4
	Unaudited Condensed Consolidated Statements of Operations	5
	Unaudited Condensed Consolidated Statements of Comprehensive Income (Loss)	6
	Unaudited Condensed Consolidated Statements of Equity	7
	Unaudited Condensed Consolidated Statements of Cash Flows	9
	Huntsman International LLC and Subsidiaries:
	Unaudited Condensed Consolidated Balance Sheets	10
	Unaudited Condensed Consolidated Statements of Operations	11
	Unaudited Condensed Consolidated Statements of Comprehensive Income (Loss)	12
	Unaudited Condensed Consolidated Statements of Equity	13
	Unaudited Condensed Consolidated Statements of Cash Flows	14
	Huntsman Corporation and Subsidiaries and Huntsman International LLC and Subsidiaries:
	Notes to Unaudited Condensed Consolidated Financial Statements	15
ITEM 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	35
ITEM 3.	Quantitative and Qualitative Disclosures About Market Risk	49
ITEM 4.	Controls and Procedures	49
PART II	OTHER INFORMATION	50
ITEM 1.	Legal Proceedings	50
ITEM 1A.	Risk Factors	50
ITEM 2.	Unregistered Sales of Equity Securities and Use of Proceeds	50
ITEM 6.	Exhibits	51

Table of Contents

FORWARD-LOOKING STATEMENTS

Certain information set forth in this report contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. All statements other than historical factual information are forward-looking statements, including without limitation statements regarding: projections of revenue, expenses, profit, profit margins, tax rates, tax provisions, cash flows, pension and benefit obligations and funding requirements, our liquidity position or other projected financial measures; management’s plans and strategies for future operations, including statements relating to anticipated operating performance, cost reductions, restructuring activities, new product and service developments, competitive strengths or market position, acquisitions, divestitures, spin-offs or other distributions, strategic opportunities, financing activities, stock repurchases, dividends and executive compensation; growth, declines and other trends in markets we sell into; new or modified laws, regulations and accounting pronouncements; outstanding claims, legal proceedings, or the potential outcomes thereof, tax audits and assessments and other contingent liabilities; foreign currency exchange rates and fluctuations in those rates; general economic and capital markets conditions; the timing of any of the foregoing; assumptions underlying any of the foregoing; and any other statements that address events or developments that we intend or believe will or may occur in the future. In some cases, forward-looking statements can be identified by terminology such as “believes,” “expects,” “may,” “will,” “should,” “anticipates” or “intends” or the negative of such terms or other comparable terminology, or by discussions of strategy. We may also make additional forward-looking statements from time to time. All such subsequent forward-looking statements, whether written or oral, by us or on our behalf, are also expressly qualified by these cautionary statements.

All forward-looking statements, including without limitation any projections derived from management’s examination of historical operating trends, are based upon our current expectations and various assumptions. Our expectations, beliefs and projections are expressed in good faith and we believe there is a reasonable basis for them, but there can be no assurance that management’s expectations, beliefs and projections will be achieved. All forward-looking statements apply only as of the date made. We undertake no obligation to publicly update or revise forward-looking statements whether because of new information, future events or otherwise, except as required by securities and other applicable law.

There are a number of risks and uncertainties that could cause our actual results to differ materially from the forward-looking statements contained in or contemplated by this report. Any forward-looking statements should be considered in light of the risks set forth in “Part II. Item 1A. Risk Factors” below and “Part I. Item 1A. Risk Factors” in our Annual Report on Form 10-K for the year ended December 31, 2023.

Table of Contents

	*September 30,*			*December 31,*
	*2024*			*2023*
ASSETS
Current assets:
Cash and cash equivalents⁽¹⁾	$	330		$	540
Accounts and notes receivable (net of allowance for doubtful accounts of $12 and $13, respectively), ($278 and $224 pledged as collateral, respectively)⁽¹⁾		822			747
Accounts receivable from affiliates		7			6
Inventories⁽¹⁾		1,004			867
Other current assets		130			154
Total current assets		2,293			2,314
Property, plant and equipment, net⁽¹⁾		2,580			2,376
Investment in unconsolidated affiliates		361			438
Intangible assets, net		358			387
Goodwill		643			644
Deferred income taxes		108			112
Operating lease right-of-use assets		400			366
Other noncurrent assets⁽¹⁾		591			611
Total assets	$	7,334		$	7,248

LIABILITIES AND EQUITY
Current liabilities:
Accounts payable⁽¹⁾	$	726		$	660
Accounts payable to affiliates		19			59
Accrued liabilities⁽¹⁾		414			395
Current portion of debt⁽¹⁾		346			12
Current operating lease liabilities⁽¹⁾		55			46
Total current liabilities		1,560			1,172
Long-term debt⁽¹⁾		1,513			1,676
Deferred income taxes		249			243
Noncurrent operating lease liabilities⁽¹⁾		364			334
Other noncurrent liabilities⁽¹⁾		303			345
Total liabilities		3,989			3,770
Commitments and contingencies (Notes 15 and 16)
Equity
Huntsman Corporation stockholders’ equity:
Common stock $0.01 par value, 1,200,000,000 shares authorized, 262,747,715 and 262,190,459 shares issued and 172,140,587 and 171,583,331 shares outstanding, respectively		3			3
Additional paid-in capital		4,232			4,202
Treasury stock, 90,607,128 shares		(2,290	)		(2,290	)
Unearned stock-based compensation		(39	)		(41	)
Retained earnings		2,430			2,622
Accumulated other comprehensive loss		(1,224	)		(1,245	)
Total Huntsman Corporation stockholders’ equity		3,112			3,251
Noncontrolling interests in subsidiaries		233			227
Total equity		3,345			3,478
Total liabilities and equity	$	7,334		$	7,248

	*Three months*						*Nine months*
	*ended*						*ended*
	*September 30,*						*September 30,*
	*2024*			*2023*			*2024*			*2023*
Revenues:
Trade sales, services and fees, net	$	1,500		$	1,477		$	4,474		$	4,611
Related party sales		40			29			110			97
Total revenues		1,540			1,506			4,584			4,708
Cost of goods sold		1,306			1,275			3,906			3,954
Gross profit		234			231			678			754
Operating expenses:
Selling, general and administrative		153			165			505			520
Research and development		27			28			91			87
Restructuring, impairment and plant closing costs		5			6			20			7
Gain on acquisition of assets, net		—			—			(51	)		—
Prepaid asset write-off		—			—			71			—
Other operating expense, net		7			5			4			2
Total operating expenses		192			204			640			616
Operating income		42			27			38			138
Interest expense, net		(21	)		(15	)		(60	)		(48	)
Equity in income of investment in unconsolidated affiliates		5			30			42			70
Other income (expense), net		8			—			22			(2	)
Income from continuing operations before income taxes		34			42			42			158
Income tax expense		(39	)		(27	)		(32	)		(66	)
(Loss) income from continuing operations		(5	)		15			10			92
(Loss) income from discontinued operations, net of tax		(12	)		—			(12	)		120
Net (loss) income		(17	)		15			(2	)		212
Net income attributable to noncontrolling interests		(16	)		(15	)		(46	)		(40	)
Net (loss) income attributable to Huntsman Corporation	$	(33	)	$	—		$	(48	)	$	172

Basic (loss) income per share:
(Loss) income from continuing operations attributable to Huntsman Corporation common stockholders	$	(0.12	)	$	—		$	(0.21	)	$	0.29
(Loss) income from discontinued operations attributable to Huntsman Corporation common stockholders, net of tax		(0.07	)		—			(0.07	)		0.67
Net (loss) income attributable to Huntsman Corporation common stockholders	$	(0.19	)	$	—		$	(0.28	)	$	0.96
Weighted average shares		172.1			175.7			172.0			179.1

Diluted (loss) income per share:
(Loss) income from continuing operations attributable to Huntsman Corporation common stockholders	$	(0.12	)	$	—		$	(0.21	)	$	0.29
(Loss) income from discontinued operations attributable to Huntsman Corporation common stockholders, net of tax		(0.07	)		—			(0.07	)		0.66
Net (loss) income attributable to Huntsman Corporation common stockholders	$	(0.19	)	$	—		$	(0.28	)	$	0.95
Weighted average shares		172.1			177.0			172.0			180.5

Amounts attributable to Huntsman Corporation:
(Loss) income from continuing operations	$	(21	)	$	—		$	(36	)	$	52
(Loss) income from discontinued operations, net of tax		(12	)		—			(12	)		120
Net (loss) income	$	(33	)	$	—		$	(48	)	$	172

	*Huntsman Corporation Stockholders' Equity*
																	*Accumulated*
	*Shares*					*Additional*					*Unearned*						*other*			*Noncontrolling*
	*common*			*Common*		*paid-in*		*Treasury*			*stock-based*			*Retained*			*comprehensive*			*interests in*			*Total*
	*stock*			*stock*		*capital*		*stock*			*compensation*			*earnings*			*loss*			*subsidiaries*			*equity*
Balance, January 1, 2024		171,583,331		$	3	$	4,202	$	(2,290	)	$	(41	)	$	2,622		$	(1,245	)	$	227		$	3,478
Net (loss) income		—			—		—		—			—			(37	)		—			14			(23	)
Other comprehensive (loss) income		—			—		—		—			—			—			(24	)		1			(23	)
Issuance of nonvested stock awards		—			—		19		—			(19	)		—			—			—			—
Vesting of stock awards		722,117			—		2		—			—			—			—			—			2
Recognition of stock-based compensation		—			—		—		—			9			—			—			—			9
Repurchase and cancellation of stock awards		(225,895	)		—		—		—			—			(5	)		—			—			(5	)
Stock options exercised		42,156			—		8		—			—			(8	)		—			—			—
Dividends declared on common stock ($0.25 per share)		—			—		—		—			—			(44	)		—			—			(44	)
Balance, March 31, 2024		172,121,709			3		4,231		(2,290	)		(51	)		2,528			(1,269	)		242			3,394
Net income		—			—		—		—			—			22			—			16			38
Other comprehensive loss		—			—		—		—			—			—			(24	)		—			(24	)
Issuance of nonvested stock awards		—			—		1		—			(1	)		—			—			—			—
Vesting of stock awards		760			—		—		—			—			—			—			—			—
Recognition of stock-based compensation		—			—		—		—			7			—			—			—			7
Repurchase and cancellation of stock awards		(5,690	)		—		—		—			—			—			—			—			—
Stock options exercised		13,701			—		—		—			—			—			—			—			—
Distributions to noncontrolling interests		—			—		—		—			—			—			—			(36	)		(36	)
Dividends declared on common stock ($0.25 per share)		—			—		—		—			—			(43	)		—			—			(43	)
Balance, June 30, 2024		172,130,480			3		4,232		(2,290	)		(45	)		2,507			(1,293	)		222			3,336
Net (loss) income		—			—		—		—			—			(33	)		—			16			(17	)
Other comprehensive income		—			—		—		—			—			—			69			3			72
Vesting of stock awards		5,026			—		—		—			—			—			—			—			—
Recognition of stock-based compensation		—			—		—		—			6			—			—			—			6
Repurchase and cancellation of stock awards		(1,224	)		—		—		—			—			—			—			—			—
Stock options exercised		6,305			—		—		—			—			—			—			—			—
Distributions to noncontrolling interests		—			—		—		—			—			—			—			(8	)		(8	)
Dividends declared on common stock ($0.25 per share)		—			—		—		—			—			(44	)		—			—			(44	)
Balance, September 30, 2024		172,140,587		$	3	$	4,232	$	(2,290	)	$	(39	)	$	2,430		$	(1,224	)	$	233		$	3,345