Huntsman Releases 2009 Third Quarter Results
STRONG ADJUSTED EBITDA RESULTS PRIMARILY FROM IMPROVED CONTRIBUTION MARGINS AND REDUCED CASH FIXED COSTS
Third Quarter 2009 Highlights
* Revenues for the third quarter of 2009 were $2,108 million, an increase of 13% compared to $1,866 million for the second quarter of 2009 and a decrease of 23% compared to $2,731 million for the third quarter of 2008.
* Adjusted EBITDA for the third quarter of 2009 was $200 million compared to $96 million for the second quarter of 2009 and $194 million for the third quarter of 2008.
* Net loss attributable to Huntsman Corporation for the third quarter of 2009 was $68 million or $0.29 loss per diluted share compared to net income attributable to Huntsman Corporation of $406 million or $1.51 per diluted share for the second quarter of 2009 and net loss attributable to Huntsman Corporation of $20 million or $0.09 loss per diluted share for the third quarter of 2008. Adjusted net loss for the third quarter of 2009 was $55 million or $0.24 loss per diluted share, impacted by an unusually high adjusted effective tax rate (more than 300%, due to tax valuation allowances) which more than offset adjusted positive pretax earnings of $27 million(1)—we believe our long term effective tax rate is 35%. This compares to adjusted net loss of $64 million or $0.27 loss per diluted share for the second quarter of 2009 and adjusted net loss of $2 million or $0.01 loss per diluted share for the third quarter of 2008.
* On October 16, 2009, we terminated our existing short term (364 day) accounts receivable securitization program that was scheduled to mature November, 2009. We replaced it with two new multi-year securitization programs (a U.S. program and a European program).
* On September 27, 2009, we announced that our styrenics operations in West Footscray, Australia would be closed. This site closure completes our process of exiting all commodity polymer businesses. This operation represents less than 2% of our 2008 global sales, and posted an adjusted EBITDA loss of almost $24 million for 2008, based on an operating loss of approximately $29 million less impairment charges of $5 million.
* On August 31, 2009, we announced we had entered into a “stalking horse” asset and equity purchase agreement with Tronox Incorporated. The agreement provides for the purchase out of bankruptcy of certain titanium dioxide and electrolytics production facilities, as well as a joint venture interest, for $415 million including working capital. We expect a decision by the U.S. Bankruptcy Court in early December 2009.
* On July 23, 2009, we redeemed all $296 million principal amount of our outstanding 11.625% senior secured notes due 2010 and on August 3, 2009, we redeemed all $198 million principal amount of our outstanding 11.5% senior notes due 2012. This debt reduction eliminated all meaningful debt maturities until 2013 other than our accounts receivable securitization programs.
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