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Released February 13, 2013 | SUGAR LAND
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Researched by Industrial Info Resources (Sugar Land, Texas)--Global chemicals company Huntsman Corporation (NYSE:HUN) (The Woodlands, Texas) reported record annual adjusted earnings before interest expenses, income tax, depreciation and amortization ("adjusted EBITDA") for full-year 2011, as strong demand for polyurethanes propelled the company throughout the year. Huntsman reported a net loss of $40 million for the quarter, compared with net income of $105 million in fourth-quarter 2011. But the company reported $363 million in net income for the year, a 46.96% increase from 2011.
Huntsman officials pointed to the adjusted EBITDA measurement as being closer to the company's operational performance, as it excludes interest, income taxes, depreciation and amortization, as well as anomalous expenses such as gains and losses from discontinued operations; restructuring, impairment and plant closing costs or credits; losses from extinguishment of debt; and losses and gains on acquisitions and dispositions of businesses and legal settlements. Using this method, earnings stood at $233 million for the quarter, a 4.12% decrease from the same period in 2011, and $1.4 billion for the year, a 14.99% increase from 2011.
Total revenues were reported to be $2.62 billion for the quarter and $11.19 billion for the year, basically unchanged from fourth-quarter and full-year 2011. The Polyurethanes segment saw impressive gains from higher selling prices and volumes that were driven by favorable market conditions, particularly for methylene diphenyl diisocyanate (MDI), which benefited from strong global demand for insulation and improving housing and automotive markets in North America.
The Performance Products segment, on the other hand, was faced with lower overall sales prices and volumes, partly caused by the strength of the U.S. dollar against major international currencies. In the Advanced Materials segment, strong demand in the Americas, Asia-Pacific region and India more than offset the effects of lower wind power demand and maintenance outages in Europe, although market pressures and currency effects weakened selling prices. The company's restructuring and cost-cutting measures helped Textile Effects, the smallest segment, post a gain in adjusted EBITDA for the quarter.
Capital expenditures totaled $412 million for 2012. During the fourth quarter, Huntsman incurred a $78 million loss on early extinguishment of debt and $40 million in restructuring costs, both of which led to a net loss being reported for the quarter.
Industrial Info is tracking more than $1.3 billion in active projects involving Huntsman, including $120.4 million in additions at a titanium dioxide plant in Calais, Nord-Pas-de-Calais, France. The company plans to construct a production unit at the plant to produce 180,000 metric tons per year of magnesium sulfate and install process and supporting equipment. Huntsman also is performing a $13.38 million expansion at a performance chemicals plant in Petfurdo, Hungary, that will increase production of specialty amines by an estimated 25% through the addition of a production line.
"Despite the weak global economy, demand for our MDI products is growing at historical rates," said Peter Huntsman, the president and chief executive officer of Huntsman, in a conference call.
Strong gains in the Polyurethanes segment offset losses in most of the other segments, with the Pigments segment weighing down the average:
"We continue to make progress in the expansion of our Chinese MDI capacity," Peter Huntsman said in the conference call. "This past month, we joined our partner SINOPEC in a groundbreaking ceremony in Nanjing, China, to construct a world-scale PO/MTBE facility. We continue to work toward a diglycolamine/morpholine facility in the Kingdom of Saudi Arabia. These three projects alone represent nearly $2 billion of investment, of which our capital contribution before licensing income will be approximately $250 million. When complete, these projects will increase our earnings per share, further establish our Asian footprint, and do so with a minimal risk in investment."
For more information, visit Industrial Info's International Chemical Processing Project Database.
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, and eight offices outside of North America, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities.
Huntsman officials pointed to the adjusted EBITDA measurement as being closer to the company's operational performance, as it excludes interest, income taxes, depreciation and amortization, as well as anomalous expenses such as gains and losses from discontinued operations; restructuring, impairment and plant closing costs or credits; losses from extinguishment of debt; and losses and gains on acquisitions and dispositions of businesses and legal settlements. Using this method, earnings stood at $233 million for the quarter, a 4.12% decrease from the same period in 2011, and $1.4 billion for the year, a 14.99% increase from 2011.
Total revenues were reported to be $2.62 billion for the quarter and $11.19 billion for the year, basically unchanged from fourth-quarter and full-year 2011. The Polyurethanes segment saw impressive gains from higher selling prices and volumes that were driven by favorable market conditions, particularly for methylene diphenyl diisocyanate (MDI), which benefited from strong global demand for insulation and improving housing and automotive markets in North America.
The Performance Products segment, on the other hand, was faced with lower overall sales prices and volumes, partly caused by the strength of the U.S. dollar against major international currencies. In the Advanced Materials segment, strong demand in the Americas, Asia-Pacific region and India more than offset the effects of lower wind power demand and maintenance outages in Europe, although market pressures and currency effects weakened selling prices. The company's restructuring and cost-cutting measures helped Textile Effects, the smallest segment, post a gain in adjusted EBITDA for the quarter.
Capital expenditures totaled $412 million for 2012. During the fourth quarter, Huntsman incurred a $78 million loss on early extinguishment of debt and $40 million in restructuring costs, both of which led to a net loss being reported for the quarter.
Industrial Info is tracking more than $1.3 billion in active projects involving Huntsman, including $120.4 million in additions at a titanium dioxide plant in Calais, Nord-Pas-de-Calais, France. The company plans to construct a production unit at the plant to produce 180,000 metric tons per year of magnesium sulfate and install process and supporting equipment. Huntsman also is performing a $13.38 million expansion at a performance chemicals plant in Petfurdo, Hungary, that will increase production of specialty amines by an estimated 25% through the addition of a production line.
"Despite the weak global economy, demand for our MDI products is growing at historical rates," said Peter Huntsman, the president and chief executive officer of Huntsman, in a conference call.
Strong gains in the Polyurethanes segment offset losses in most of the other segments, with the Pigments segment weighing down the average:
- The Polyurethanes segment reported revenues of $1.18 billion for the quarter, a 13.33% increase from fourth-quarter 2011, and $4.89 billion for the year, a 10.37% increase from 2011. Adjusted EBITDA was reported to be $186 million for the quarter, compared with $79 million in the same period in 2011, and $772 million for the year, a 62.18% increase from 2011.
- The Performance Products segment reported revenues of $723 million for the quarter, a 4.24% decrease from fourth-quarter 2011, and $3.07 billion for the year, a 7.15% decrease from 2011. Adjusted EBITDA was reported to be $79 million for the quarter, a 31.67% increase from the same period in 2011, and $361 million for the year, a 3.48% decrease from 2011.
- The Advanced Materials segment reported revenues of $311 million for the quarter, a decrease of less than 1% from fourth-quarter 2011, and $1.33 billion for the year, a 3.43% decrease from 2011. Adjusted EBITDA was reported to be $6 million for the quarter, a 60% decrease from the same period in 2011, and $92 million for the year, a 17.12% decrease from 2011.
- The Textiles Effects segment reported revenues of $190 million for the quarter, a 9.2% increase from fourth-quarter 2011, and $752 million for the year, a 2.04% increase from 2011. Adjusted EBITDA was reported to be $1 million for the quarter, compared with a loss of $22 million in the same period in 2011, and a loss of $22 million for the year, compared with a loss of $64 million 2011.
- The Pigments segment reported revenues of $286 million for the quarter, a 28.32% decrease from fourth-quarter 2011, and $1.44 billion for the year, a 12.55% decrease from 2011. Adjusted EBITDA was reported to be $10 million for the quarter, compared with $145 million in the same period in 2011, and $362 million for the year, a 28.74% decrease from 2011.
"We continue to make progress in the expansion of our Chinese MDI capacity," Peter Huntsman said in the conference call. "This past month, we joined our partner SINOPEC in a groundbreaking ceremony in Nanjing, China, to construct a world-scale PO/MTBE facility. We continue to work toward a diglycolamine/morpholine facility in the Kingdom of Saudi Arabia. These three projects alone represent nearly $2 billion of investment, of which our capital contribution before licensing income will be approximately $250 million. When complete, these projects will increase our earnings per share, further establish our Asian footprint, and do so with a minimal risk in investment."
For more information, visit Industrial Info's International Chemical Processing Project Database.
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, and eight offices outside of North America, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities.
