Increase in revenues in Huntsman's Textile Effects segment

23 Feb '10

3 min read

Strong Fourth Quarter 2009 Adjusted Ebitda Of $165 Million; Improving Global Demand

Fourth Quarter 2009 Highlights

• Revenues for the fourth quarter of 2009 were $2,096 million, an increase of 2% compared to $2,048 million for the same period in 2008 and a decrease of 1% compared to $2,108 million for the third quarter of 2009.
• Volumes for the fourth quarter of 2009 increased 13% compared to the same period in 2008 and decreased 7% compared to the third quarter of 2009 consistent with historical seasonal patterns.
• Adjusted EBITDA for the fourth quarter of 2009 was $165 million compared to $51 million for the same period in 2008 and $200 million for the third quarter of 2009.
• Net income attributable to Huntsman Corporation for the fourth quarter of 2009 was $66 million or $0.26 per diluted share, impacted by favorable year end accounting for taxes of approximately $79 million. This compares to net income attributable to Huntsman Corporation of $598 million or $2.53 per diluted share for the same period in 2008 and a net loss attributable to Huntsman Corporation of $68 million or $0.29 loss per diluted share for the third quarter of 2009.
• Adjusted net income for the fourth quarter of 2009 was $70 million or $0.27 per diluted share, impacted by favorable year end accounting for taxes of approximately $79 million. This compares to an adjusted net loss of $91 million or $0.38 loss per diluted share for the same period in 2008 and an adjusted net loss of $55 million or $0.24 loss per diluted share for the third quarter of 2009.

Full Year 2009 Highlights

• Revenues for 2009 were $7,763 million compared to $10,215 million for 2008.
• Adjusted EBITDA for 2009 was $511 million compared to $643 million for 2008.
• Net income attributable to Huntsman Corporation for 2009 was $114 million or $0.48 per diluted share compared to $609 million or $2.60 per diluted share for 2008.
• Adjusted net loss for 2009 was $323 million or $1.38 loss per diluted share compared to adjusted net loss of $57 million or $0.24 loss per diluted share for 2008.
• Total cash and unused borrowing capacity as of December 31, 2009 was approximately $2.5 billion.

Recent Highlights

• On January 11, 2010, we repurchased all of our outstanding 7% convertible notes due 2018 for approximately $382 million. As these notes were convertible into approximately 31.8 million shares of common stock, our fully diluted outstanding share count was reduced to approximately 240 million shares.

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

"Results from our most recent fourth quarter are very encouraging; we have seen our business results improve from last year when we reported $51 million of Adjusted EBITDA to this year when we reported $165 million. During 2009, we eliminated more than $150 million of costs from our business and reduced working capital needsby nearly $500 million. Despite the challenging economic conditions in 2009, we were able to maintain consistent margins on a per unit basis throughout our business. During the fourth quarter of 2009 our volumes increased 13 percent compared to the prior year, but still fell short of normalized demand. As demand continues to improve, we expect to see improved earnings."

He added, "We look forward to improving market conditions in 2010. We have a number of innovative products in our pipeline that address energy concerns that will provide long term benefits. I expect our operational discipline, improving global market conditions and stronger capacity utilization to further enhance our earnings potential."

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