Three months ended

Six months ended

June 30,

June 30,

In millions, except per share amounts

2022

2021

2022

2021

Revenues

$     2,362

$     2,024

$     4,751

$     3,861

Net income

$       242

$       172

$       482

$       272

Adjusted net income ⁽¹⁾

$       265

$       191

$       521

$       338

Diluted income per share

$      1.10

$      0.70

$      2.14

$      1.07

Adjusted diluted income per share⁽¹⁾

$      1.28

$      0.86

$      2.47

$      1.52

Adjusted EBITDA⁽¹⁾

$       432

$       334

$       847

$       623

Net cash provided by (used in) operating activities from continuing operations

$       231

$          (7)

$       316

$        (23)

Free cash flow from continuing operations⁽²⁾

$       162

$        (83)

$       178

$      (197)

See end of press release for footnote explanations and reconciliations of non-GAAP measures.

Table 1 -- Results of Operations

Three months ended

Six months ended

June 30,

June 30,

In millions, except per share amounts

2022

2021

2022

2021

Revenues

$     2,362

$     2,024

$     4,751

$     3,861

Cost of goods sold

1,824

1,593

3,648

3,038

Gross profit

538

431

1,103

823

Operating expenses, net

221

211

482

453

Restructuring, impairment and plant closing costs

24

11

24

35

Operating income

293

209

597

335

Interest expense, net

(16)

(18)

(30)

(37)

Equity in income of investment in unconsolidated affiliates

19

46

34

84

Fair value adjustments to Venator investment, net

-

(6)

(2)

(25)

Loss on early extinguishment of debt

-

(27)

-

(27)

Other income, net

13

9

14

16

Income from continuing operations before income taxes

309

213

613

346

Income tax expense

(67)

(42)

(132)

(76)

Income from continuing operations

242

171

481

270

Income from discontinued operations, net of tax

-

1

1

2

Net income

242

172

482

272

Net income attributable to noncontrolling interests, net of tax

(14)

(16)

(31)

(33)

Net income attributable to Huntsman Corporation

$       228

$       156

$       451

$       239

Adjusted EBITDA⁽¹⁾

$       432

$       334

$       847

$       623

Adjusted net income ⁽¹⁾

$       265

$       191

$       521

$       338

Basic income per share

$      1.11

$      0.71

$      2.16

$      1.08

Diluted income per share

$      1.10

$      0.70

$      2.14

$      1.07

Adjusted diluted income per share⁽¹⁾

$      1.28

$      0.86

$      2.47

$      1.52

Common share information:

Basic weighted average shares

205

221

209

221

Diluted weighted average shares

207

223

211

223

Diluted shares for adjusted diluted income per share

207

223

211

223

See end of press release for footnote explanations.

Table 2 -- Results of Operations by Segment

Three months ended

Six months ended

June 30,

Better /

June 30,

Better /

In millions

2022

2021

(Worse)

2022

2021

(Worse)

Segment Revenues:

Polyurethanes

$     1,353

$     1,155

17 %

$     2,739

$     2,223

23 %

Performance Products

492

371

33 %

972

676

44 %

Advanced Materials

336

299

12 %

671

577

16 %

Textile Effects

192

207

(7 %)

389

400

(3 %)

Total Reportable Segments' Revenue

2,373

2,032

17 %

4,771

3,876

23 %

Intersegment Eliminations

(11)

(8)

n/m

(20)

(15)

n/m

Total Revenues

$     2,362

$     2,024

17 %

$     4,751

$     3,861

23 %

Segment Adjusted EBITDA⁽¹⁾:

Polyurethanes

$       229

$       208

10 %

$       453

$       415

9 %

Performance Products

152

88

73 %

298

151

97 %

Advanced Materials

67

58

16 %

134

102

31 %

Textile Effects

22

28

(21 %)

50

53

(6 %)

Total Reportable Segments' Adjusted EBITDA⁽¹⁾

470

382

23 %

935

721

30 %

Corporate, LIFO and other

(38)

(48)

21 %

(88)

(98)

10 %

$       432

$       334

29 %

$       847

$       623

36 %

n/m = not meaningful

See end of press release for footnote explanations.

Table 3 -- Factors Impacting Sales Revenue

Three months ended

June 30, 2022 vs. 2021

Average Selling Price^(a)

Local

Exchange

Sales Mix

Sales

Currency

Rate

& Other

Volume^(b)

Total

Polyurethanes

24 %

(4 %)

1 %

(4 %)

17 %

Performance Products

33 %

(3 %)

6 %

(3 %)

33 %

Advanced Materials

21 %

(5 %)

12 %

(16 %)

12 %

Textile Effects

12 %

(3 %)

0 %

(16 %)

(7 %)

Six months ended

June 30, 2022 vs. 2021

Average Selling Price^(a)

Local

Exchange

Sales Mix

Sales

Currency

Rate

& Other

Volume^(b)

Total

Polyurethanes

27 %

(4 %)

0 %

0 %

23 %

Performance Products

40 %

(3 %)

7 %

0 %

44 %

Advanced Materials

23 %

(4 %)

14 %

(17 %)

16 %

Textile Effects

14 %

(2 %)

(2 %)

(13 %)

(3 %)

(a) Excludes sales from tolling arrangements, by-products and raw materials.

(b) Excludes sales from by-products and raw materials.

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

 Income Tax 

 Diluted Income 

 EBITDA 

(Expense) Benefit

 Net Income 

 Per Share 

Three months ended

Three months ended

Three months ended

Three months ended

June 30,

June 30,

June 30,

June 30,

In millions, except per share amounts

2022

2021

2022

2021

2022

2021

2022

2021

Net income

$        242

$        172

$        242

$        172

$       1.17

$       0.77

Net income attributable to noncontrolling interests

(14)

(16)

(14)

(16)

(0.07)

(0.07)

Net income attributable to Huntsman Corporation

228

156

228

156

1.10

0.70

Interest expense, net from continuing operations

16

18

Income tax expense from continuing operations

67

42

$         (67)

$         (42)

Depreciation and amortization from continuing operations

72

73

Business acquisition and integration expenses and purchase accounting inventory adjustments

4

5

(2)

-

2

5

0.01

0.02

Costs associated with the Albemarle Settlement, net

1

-

-

-

1

-

-

-

EBITDA / Income from discontinued operations, net of tax

-

(1)

 N/A 

 N/A 

-

(1)

-

-

Loss (gain) on sale of businesses/assets

7

(30)

(1)

4

6

(26)

0.03

(0.12)

Income from transition services arrangements

(1)

(3)

-

1

(1)

(2)

-

(0.01)

Fair value adjustments to Venator Investment, net^(a)

-

6

-

-

-

6

-

0.03

Loss on early extinguishment of debt

-

27

-

(6)

-

21

-

0.09

Certain legal and other settlements and related expenses

2

8

1

(2)

3

6

0.01

0.03

Certain non-recurring information technology project implementation costs

1

3

(1)

(1)

-

2

-

0.01

Amortization of pension and postretirement actuarial losses

13

21

(3)

(5)

10

16

0.05

0.07

Restructuring, impairment and plant closing and transition costs

27

12

(7)

(2)

20

10

0.10

0.04

Plant incident remediation credits

(5)

(3)

1

1

(4)

(2)

(0.02)

(0.01)

Adjusted⁽¹⁾

$        432

$        334

$         (79)

$         (52)

$        265

$        191

$       1.28

$       0.86

Adjusted income tax expense⁽¹⁾

$          79

$          52

Net income attributable to noncontrolling interests, net of tax

14

16

Adjusted pre-tax income ⁽¹⁾

$        358

$        259

Adjusted effective tax rate⁽³⁾

22 %

20 %

Effective tax rate

22 %

20 %

 Income Tax 

 Diluted Income 

 EBITDA 

(Expense) Benefit

 Net Income 

 Per Share 

Six months ended

Six months ended

Six months ended

Six months ended

June 30,

June 30,

June 30,

June 30,

In millions, except per share amounts

2022

2021

2022

2021

2022

2021

2022

2021

Net income

$        482

$        272

$        482

$        272

$       2.28

$       1.22

Net income attributable to noncontrolling interests

(31)

(33)

(31)

(33)

(0.15)

(0.15)

Net income attributable to Huntsman Corporation

451

239

451

239

2.14

1.07

Interest expense, net from continuing operations

30

37

Income tax expense from continuing operations

132

76

$       (132)

$         (76)

Depreciation and amortization from continuing operations

143

147

Business acquisition and integration expenses and purchase accounting inventory adjustments

10

14

(2)

(2)

8

12

0.04

0.05

Costs associated with the Albemarle Settlement, net

2

-

-

-

2

-

0.01

-

EBITDA / Income from discontinued operations, net of tax

(1)

(2)

N/A

N/A

(1)

(2)

-

(0.01)

Loss (gain) on sale of businesses/assets

11

(30)

(2)

4

9

(26)

0.04

(0.12)

Income from transition services arrangements

(2)

(4)

-

1

(2)

(3)

(0.01)

(0.01)

Fair value adjustments to Venator Investment, net^(a)

2

25

-

-

2

25

0.01

0.11

Loss on early extinguishment of debt

-

27

-

(6)

-

21

-

0.09

Certain legal settlements and related expenses

14

10

(3)

(3)

11

7

0.05

0.03

Certain non-recurring information technology project implementation costs

3

4

(1)

(1)

2

3

0.01

0.01

Amortization of pension and postretirement actuarial losses

27

43

(6)

(10)

21

33

0.10

0.15

Restructuring, impairment and plant closing and transition costs

30

36

(8)

(8)

22

28

0.10

0.13

Plant incident remediation (credits) costs

(5)

1

1

-

(4)

1

(0.02)

-

Adjusted⁽¹⁾

$        847

$        623

$       (153)

$       (101)

$        521

$        338

$       2.47

$       1.52

Adjusted income tax expense⁽¹⁾

$        153

$        101

Net income attributable to noncontrolling interests, net of tax

31

33

Adjusted pre-tax income⁽¹⁾

$        705

$        472

Adjusted effective tax rate⁽³⁾

22 %

21 %

Effective tax rate

22 %

22 %

(a) Represents the changes in market value in Huntsman's remaining interest in Venator and related option to sell those remaining Venator shares.

N/A = not applicable

See end of press release for footnote explanations.

Table 5 -- Selected Balance Sheet Items

June 30,

December 31,

In millions

2022

2021

Cash

$              608

$            1,041

Accounts and notes receivable, net

1,288

1,186

Inventories

1,401

1,201

Receivable associated with the Albemarle Settlement

-

333

Other current assets

140

167

Property, plant and equipment, net

2,486

2,576

Other noncurrent assets

2,798

2,888

Total assets

$            8,721

$            9,392

Accounts payable

$            1,128

$            1,208

Other current liabilities

481

831

Current portion of debt

13

12

Long-term debt

1,508

1,538

Other noncurrent liabilities

1,240

1,244

Huntsman Corporation stockholders' equity

4,147

4,378

Noncontrolling interests in subsidiaries

204

181

Total liabilities and equity

$            8,721

$            9,392

Table 6 -- Outstanding Debt

June 30,

December 31,

In millions

2022

2021

Debt:

Revolving credit facility

$                 -

$                 -

Accounts receivable programs

-

-

Senior notes

1,451

1,473

Variable interest entities

40

45

Other debt

30

32

Total debt - excluding affiliates

1,521

1,550

Total cash

608

1,041

Net debt - excluding affiliates⁽⁴⁾

$              913

$              509

See end of press release for footnote explanations.

Table 7 -- Summarized Statement of Cash Flows

Three months ended

Six months ended

June 30,

June 30,

In millions

2022

2021

2022

2021

Total cash at beginning of period

$           807

$           673

$         1,041

$         1,593

Net cash provided by (used in) operating activities from continuing operations

231

(7)

316

(23)

Net cash used in operating activities from discontinued operations

-

-

-

(1)

Net cash used in investing activities

(64)

(46)

(129)

(369)

Net cash used in financing activities

(357)

(112)

(609)

(691)

Effect of exchange rate changes on cash

(9)

2

(11)

1

Total cash at end of period

$           608

$           510

$           608

$           510

Free cash flow from continuing operations⁽²⁾:

Net cash provided by (used in) operating activities from continuing operations

$           231

$              (7)

$           316

$            (23)

Capital expenditures

(69)

(76)

(138)

(174)

Free cash flow from continuing operations

162

(83)

178

(197)

Supplemental cash flow information:

Cash paid for interest

$            (24)

$            (31)

$            (33)

$            (47)

Cash paid for income taxes

(122)

(68)

(154)

(76)

Cash paid for restructuring and integration

(13)

(8)

(26)

(17)

Cash paid for pensions

(13)

(14)

(26)

(28)

Depreciation and amortization

72

73

143

147

Change in primary working capital:

Accounts and notes receivable

$              (8)

$            (97)

$          (142)

$          (214)

Inventories

(52)

(176)

(239)

(332)

Accounts payable

(129)

79

(9)

173

Total change in primary working capital

$          (189)

$          (194)

$          (390)

$          (373)

See end of press release for footnote explanations.

(1)

We use adjusted EBITDA to measure the operating performance of our business and for planning and evaluating the performance of our business segments.  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) 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 adjusted EBITDA and adjusted net income (loss).  Additional information with respect to our use of each of these financial measures follows:

Adjusted EBITDA, adjusted net income (loss) and adjusted diluted income (loss) per share, as used herein, are not necessarily comparable to other similarly titled measures of other companies.

Adjusted EBITDA is computed by eliminating the following from net income (loss):  (a) net income attributable to noncontrolling interests, net of tax; (b) interest; (c) income taxes; (d) depreciation and amortization; (e) amortization of pension and postretirement actuarial losses (gains); (f) restructuring, impairment and plant closing costs (credits); and further adjusted for certain other items set forth in the reconciliation of net income (loss) to adjusted EBITDA in Table 4 above. 

Adjusted net income (loss) and adjusted diluted income (loss) per share are computed by eliminating the after tax impact of the following items from net income (loss): (a) net income attributable to noncontrolling interest; (b) amortization of pension and postretirement actuarial losses (gains); (c) restructuring, impairment and plant closing costs (credits); and further adjusted for certain other items set forth in the reconciliation of net income (loss) to adjusted net income (loss) in Table 4 above.  The income tax impacts, if any, of each adjusting item represent a ratable allocation of the total difference between the unadjusted tax expense and the total adjusted tax expense, computed without consideration of any adjusting items using a with and without approach.

We may disclose forward-looking adjusted EBITDA because we cannot adequately forecast certain items and events that may or may not impact us in the near future, such as business acquisition and integration expenses and purchase accounting inventory adjustments, certain legal and other settlements and related expenses, gains on sale of businesses/assets and certain tax only items, including tax law changes not yet enacted. Each of such adjustment has not yet occurred, is out of our control and/or cannot be reasonably predicted. In our view, our forward-looking adjusted EBITDA represents the forecast net income on our underlying business operations but does not reflect any adjustments related to the items noted above that may occur and can cause our adjusted EBITDA to differ.

(2)

Management internally uses free cash flow measure: (a) to evaluate our liquidity, (b) evaluate strategic investments, (c) plan stock buyback and dividend levels and (d) evaluate our ability to incur and service debt. Free cash flow is defined as net cash provided by operating activities less capital expenditures. Free cash flow is not a defined term under U.S. GAAP, and it should not be inferred that the entire free cash flow amount is available for discretionary expenditures.

(3)

We believe adjusted effective tax rate provides improved comparability between periods through the exclusion of certain items that management believes are not indicative of the businesses' operational profitability and that may obscure underlying business results and trends. In our view, effective tax rate is the performance measure calculated and presented in accordance with U.S. GAAP that is most directly comparable to adjusted effective tax rate. The reconciliation of historical adjusted effective tax rate and effective tax rate is set forth in Table 4 above. Please see the reconciliation of our net income to adjusted net income in Table 4for details regarding the tax impacts of our non-GAAP adjustments.

Our forward-looking adjusted effective tax rate is calculated based on our forecast effective tax rate, and the range of our forward-looking adjusted effective tax rate equals the range of our forecast effective tax rate. We disclose forward-looking adjusted effective tax rate because we cannot adequately forecast certain items and events that may or may not impact us in the near future, such as business acquisition and integration expenses and purchase accounting inventory adjustments, certain legal and other settlements and related expenses, gains on sale of businesses/assets and certain tax only items, including tax law changes not yet enacted. Each of such adjustment has not yet occurred, is out of our control and/or cannot be reasonably predicted. In our view, our forward-looking adjusted effective tax rate represents the forecast effective tax rate on our underlying business operations but does not reflect any adjustments related to the items noted above that may occur and can cause our effective tax rate to differ.

(4)

Net debt is a measure we use to monitor how much debt we have after taking into account our total cash. We use it as an indicator of our overall financial position, and calculate it by taking our total debt, including the current portion, and subtracting total cash.