Form 8-K - Current report

 

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, DC 20549

 

 

 

FORM 8-K

 

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

 

Date of Report (Date of earliest event reported): August 5, 2024

 

 

 

Huntsman Corporation

(Exact name of registrant as specified in its charter)

 

Delaware		001-32427		42-1648585
(State or other jurisdiction		(Commission		(IRS Employer
of incorporation)		File Number)		Identification No.)

 

10003 Woodloch Forest Drive
The Woodlands, Texas		77380
(Address of principal executive offices)		(Zip Code)

 

Registrant’s telephone number, including area code:

[phone]

 

Not applicable

(Former name or former address, if changed since last report)

 

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligations of the registrant under any of the following provisions (see General Instruction A.2. below):

 

¨

Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

 

¨

Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

 

¨

Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

 

¨

Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

 

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

 

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

 

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.  ¨

 

 

 

 

 

Item 2.02. Results of Operations and Financial Condition.

 

On August 5, 2024, we issued a press release announcing our results the three months ended June 30, 2024. The press release is furnished herewith as Exhibit 99.1.

 

We will hold a conference call to discuss our second quarter 2024 financial results on Tuesday, August 6, 2024, at 10:00 a.m. ET.

 

Webcast link: https://event.choruscall.com/mediaframe/webcast.html?webcastid=8mIXrKvK

Participant dial-in numbers:

Domestic callers:

[phone]

International callers:

[phone]

 

The conference call will be accompanied by presentation slides that will be accessible via the webcast link and Huntsman’s investor relations website, www.huntsman.com/investors. Upon conclusion of the call, the webcast replay will be accessible via Huntsman’s website.

 

Information with respect to the conference call, together with a copy of the press release furnished herewith as Exhibit 99.1, is available on the investor relations page of our website at www.huntsman.com/investors.

 

 Item 9.01. Financial Statements and Exhibits.

 

(d)     Exhibits.

 

Number		Description of Exhibits
99.1		Press Release dated August 5, 2024 regarding second quarter 2024 earnings
104		Cover Page Interactive Data File (formatted in Inline XBRL and contained in Exhibit 101)

 

2

 

 

SIGNATURES

 

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

 

	HUNTSMAN CORPORATION
	/s/ IVAN MARCUSE
	Vice President, Investor Relations and Corporate Development

 

Dated:  August 5, 2024

 

3

 

 

Exhibit 99.1 

 

News Release

 

FOR IMMEDIATE RELEASE	Media:	Investor Relations:
August 5, 2024	Kevin Gundersen	Ivan Marcuse
The Woodlands, TX	[phone]	[phone]
NYSE: HUN

 

Huntsman Announces Second Quarter 2024 Earnings

 

Second Quarter Highlights

 

·

Second quarter 2024 net income attributable to Huntsman of $22 million compared to net income of $19 million in the prior year period; second quarter 2024 diluted income per share of $0.13 compared to a diluted income per share $0.11 in the prior year period.

 

·

Second quarter 2024 adjusted net income attributable to Huntsman of $24 million compared to adjusted net income of $39 million in the prior year period; second quarter 2024 adjusted diluted income per share of $0.14 compared to adjusted diluted income per share of $0.22 in the prior year period.

 

·

Second quarter 2024 adjusted EBITDA of $131 million compared to $156 million in the prior year period.

 

·

Second quarter 2024 net cash provided by operating activities from continuing operations was $55 million. Free cash flow from continuing operations was $5 million for the second quarter 2024 compared to a use of cash of $11 million in the prior year period.

 

		Three months ended								Six months ended
		June 30,								June 30,
In millions, except per share amounts		2024				2023				2024				2023
Revenues		$	1,574			$	1,596			$	3,044			$	3,202
Net income (loss) attributable to Huntsman Corporation		$	22			$	19			$	(15	)		$	172
Adjusted net income(1)		$	24			$	39			$	13			$	76
Diluted income (loss) per share		$	0.13			$	0.11			$	(0.09	)		$	0.94
Adjusted diluted income per share(1)		$	0.14			$	0.22			$	0.08			$	0.42
Adjusted EBITDA(1)		$	131			$	156			$	212			$	292
Net cash provided by (used in) operating activities from continuing operations		$	55			$	40			$	(8	)		$	(82	)
Free cash flow from continuing operations(2)		$	5			$	(11	)		$	(100	)		$	(179	)

 

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

 

 

 

 

THE WOODLANDS, Texas – Huntsman Corporation (NYSE: HUN) today reported second quarter 2024 results with revenues of $1,574 million, net income attributable to Huntsman of $22 million, adjusted net income attributable to Huntsman of $24 million and adjusted EBITDA of $131 million.

 

Peter R. Huntsman, Chairman, President, and CEO, commented:

 

“Our second quarter 2024 was consistent with our expectations and represented a $50 million adjusted EBITDA improvement compared to the first quarter. Our sales volumes improved 9% year over year and we expect our growth comparisons to continue to be favorable in the second half of the year. That said, we do not expect global economic activity to change substantially from the current levels through the remainder of the third quarter. We will continue to control our costs, focus on cash flow and drive stronger sales volumes compared to 2023 with higher overall utilization rates. Our balance sheet is strong, and we will remain disciplined in our approach to allocating capital to strengthen our company for the long-term and return cash to shareholders.”

 

Segment Analysis for 2Q24 Compared to 2Q23

 

Polyurethanes

 

The decrease in revenues in our Polyurethanes segment for the three months ended June 30, 2024 compared to the same period of 2023 was primarily due to lower MDI average selling prices, partially offset by higher sales volumes. MDI average selling prices decreased primarily due to less favorable supply and demand dynamics. Sales volumes increased due to improved demand and share gains in certain markets. The decrease in segment adjusted EBITDA was primarily due to lower MDI average selling prices and lower equity earnings from our minority-owned joint venture in China, partially offset by lower raw materials costs and higher sales volumes.

 

Performance Products

 

The decrease in revenues in our Performance Products segment for the three months ended June 30, 2024 compared to the same period of 2023 was primarily due to lower average selling prices, partially offset by higher sales volumes. Average selling prices decreased primarily due to competitive pressure, particularly in Europe and the Americas. Sales volumes increased primarily due to improvement in industrial activity as well as increased demand in coatings and adhesives and lubes markets. The decrease in segment adjusted EBITDA was primarily due to lower average selling prices and higher fixed costs, partially offset by higher sales volumes and lower raw materials costs.

 

Advanced Materials

 

The decrease in revenues in our Advanced Materials segment for the three months ended June 30, 2024 compared to the same period of 2023 was primarily due to lower average selling prices, partially offset by higher sales volumes. Average selling prices decreased primarily due to unfavorable sales mix. Sales volumes increased in our aerospace and infrastructure markets driven by market recovery. The increase in segment adjusted EBITDA was primarily due to favorable variable margins resulting from lower raw materials costs, partially offset by higher fixed costs.

 

Corporate, LIFO and other

 

For the three months ended June 30, 2024, adjusted EBITDA from Corporate and other was a loss of $47 million as compared to a loss of $38 million for the same period of 2023. The decrease in adjusted EBITDA from Corporate and other resulted primarily from an increase in corporate overhead costs and LIFO valuation losses, partially offset by a decrease in unallocated foreign currency exchange losses.

 

- 2 - 

 

 

Liquidity and Capital Resources

 

During the three months ended June 30, 2024, our free cash flow from continuing operations was $5 million as compared to a use of cash of $11 million in the same period of 2023. As of June 30, 2024, we had approximately $1.3 billion of combined cash and unused borrowing capacity.

 

During the three months ended June 30, 2024, we spent $50 million on capital expenditures from continuing operations as compared to $51 million in the same period of 2023. During 2024, we expect to spend between approximately $180 million to $200 million on capital expenditures.

 

Income Taxes

 

In the second quarter of 2024, our effective tax rate was 30% and our adjusted effective tax rate was 23%. We expect our 2024 adjusted effective tax rate to be approximately 30% to 34%. We expect our long-term adjusted effective tax rate to be approximately 22% to 24%.

 

Earnings Conference Call Information

 

We will hold a conference call to discuss our second quarter 2024 financial results on Tuesday, August 6, 2024, at 10:00 a.m. ET.

 

Webcast link: https://event.choruscall.com/mediaframe/webcast.html?webcastid=8mIXrKvK

 

Participant dial-in numbers:

Domestic callers:

[phone]

International callers:

[phone]

 

The conference call will be accompanied by presentation slides that will be accessible via the webcast link and Huntsman’s investor relations website, www.huntsman.com/investors. Upon conclusion of the call, the webcast replay will be accessible via Huntsman’s website.

 

Upcoming Conferences

During the third quarter 2024, a member of management is expected to present at:

Mizuho Industrials & Chemicals Conference, August 14, 2024

Seaport Research Partners Summer Investor Conference, August 20, 2024

Jefferies Industrials Conference, September 4, 2024

UBS Global Materials Conference, September 5, 2024

 

A webcast of the presentation, if applicable, along with accompanying materials will be available at www.huntsman.com/investors.

 

- 3 - 

 

 

Table 1 – Results of Operations

 

		Three months ended								Six months ended
		June 30,								June 30,
In millions, except per share amounts		2024				2023				2024				2023
Revenues		$	1,574			$	1,596			$	3,044			$	3,202
Cost of goods sold			1,331				1,342				2,600				2,679
Gross profit			243				254				444				523
Operating expenses, net			204				196				413				411
Loss (gain) on acquisition of assets, net			1				-				(51	)			-
Prepaid asset write-off			-				-				71				-
Restructuring, impairment and plant closing costs			4				8				15				1
Operating income (loss)			34				50				(4	)			111
Interest expense, net			(20	)			(15	)			(39	)			(33	)
Equity in income of investment in unconsolidated affiliates			18				28				37				40
Other income (expense), net			12				(2	)			14				(2	)
Income from continuing operations before income taxes			44				61				8				116
Income tax (expense) benefit			(13	)			(28	)			7				(39	)
Income from continuing operations			31				33				15				77
Income (loss) from discontinued operations, net of tax(3)			7				(2	)			-				120
Net income			38				31				15				197
Net income attributable to noncontrolling interests			(16	)			(12	)			(30	)			(25	)
Net income (loss) attributable to Huntsman Corporation		$	22			$	19			$	(15	)		$	172
Adjusted EBITDA(1)		$	131			$	156			$	212			$	292
Adjusted net income (1)		$	24			$	39			$	13			$	76
Basic income (loss) per share		$	0.13			$	0.11			$	(0.09	)		$	0.95
Diluted income (loss) per share		$	0.13			$	0.11			$	(0.09	)		$	0.94
Adjusted diluted income per share(1)		$	0.14			$	0.22			$	0.08			$	0.42
Common share information:
Basic weighted average shares			172				179				172				181
Diluted weighted average shares			173				180				172				182
Diluted shares for adjusted diluted income per share			173				180				173				182

 

See end of press release for footnote explanations.

 

- 4 - 

 

 

 

Table 2 – Results of Operations by Segment

 

		Three months ended												Six months ended
		June 30,								(Worse) /				June 30,								(Worse) /
In millions		2024				2023				Better				2024				2023				Better
Segment Revenues:
Polyurethanes		$	1,001			$	1,012				(1	)%		$	1,927			$	2,003				(4	)%
Performance Products			299				307				(3	)%			590				641				(8	)%
Advanced Materials			279				284				(2	)%			540				573				(6	)%
Total Reportable Segments' Revenues			1,579				1,603				(1	)%			3,057				3,217				(5	)%
Intersegment Eliminations			(5	)			(7	)			n/m				(13	)			(15	)			n/m
Total Revenues		$	1,574			$	1,596				(1	)%		$	3,044			$	3,202				(5	)%
Segment Adjusted EBITDA(1):
Polyurethanes		$	80			$	88				(9	)%		$	119			$	154				(23	)%
Performance Products			46				55				(16	)%			88				126				(30	)%
Advanced Materials			52				51				2	%			95				99				(4	)%
Total Reportable Segments' Adjusted EBITDA(1)			178				194				(8	)%			302				379				(20	)%
Corporate, LIFO and other			(47	)			(38	)			(24	)%			(90	)			(87	)			(3	)%
Total Adjusted EBITDA(1)		$	131			$	156				(16	)%		$	212			$	292				(27	)%

 

n/m = not meaningful

 

See end of press release for footnote explanations.

 

Table 3 – Factors Impacting Sales Revenue

 

		Three months ended
		June 30, 2024 vs. 2023
		Average Selling Price(a)
		Local				Exchange				Sales
		Currency & Mix				Rate				Volumes(b)				Total
Polyurethanes			(9	)%			(1	)%			9	%			(1	)%
Performance Products			(11	)%			0	%			8	%			(3	)%
Advanced Materials			(10	)%			(1	)%			9	%			(2	)%

 

		Six months ended
		June 30, 2024 vs. 2023
		Average Selling Price(a)
		Local				Exchange				Sales
		Currency & Mix				Rate				Volumes(b)				Total
Polyurethanes			(13	)%			0	%			9	%			(4	)%
Performance Products			(14	)%			0	%			6	%			(8	)%
Advanced Materials			(10	)%			0	%			4	%			(6	)%

 

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

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

 

- 5 -

 

 

 

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

										Income Tax																Diluted Income
		EBITDA								Expense								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		2024				2023				2024				2023				2024				2023				2024				2023
Net income		$	38			$	31											$	38			$	31			$	0.22			$	0.18
Net income attributable to noncontrolling interests			(16	)			(12	)											(16	)			(12	)			(0.09	)			(0.07	)
Net income attributable to Huntsman Corporation			22				19												22				19				0.13				0.11
Interest expense, net from continuing operations			20				15
Income tax expense from continuing operations			13				28			$	(13	)		$	(28	)
Income tax (benefit) expense from discontinued operations(3)			(7	)			1
Depreciation and amortization from continuing operations			75				70
Business acquisition and integration expenses and purchase accounting inventory adjustments, net			1				2				1				(1	)			2				1				0.01				0.01
EBITDA / Loss (income) from discontinued operations(3)			-				1				N/A				N/A				(7	)			2				(0.04	)			0.01
Gain on sale of business/assets			-				(1	)			-				-				-				(1	)			-				(0.01	)
Fair value adjustments to Venator investment, net and other tax matter adjustments			(7	)			4				2				-				(5	)			4				(0.03	)			0.02
Certain legal and other settlements and related expenses			1				1				(1	)			-				-				1				-				0.01
Certain non-recurring information technology project implementation costs			-				1				-				(1	)			-				-				-				-
Amortization of pension and postretirement actuarial losses			8				7				-				(1	)			8				6				0.05				0.03
Restructuring, impairment and plant closing and transition costs			5				8				(1	)			(1	)			4				7				0.02				0.04
Adjusted(1)		$	131			$	156			$	(12	)		$	(32	)			24				39			$	0.14			$	0.22
Adjusted income tax expense(1)																			12				32
Net income attributable to noncontrolling interests																			16				12
Adjusted pre-tax income (1)																		$	52			$	83
Adjusted effective tax rate(4)																			23	%			39	%
Effective tax rate																			30	%			46	%

 

										Income Tax								Net Income								Diluted Income
		EBITDA								Benefit (Expense)								(Loss)								(Loss) 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		2024				2023				2024				2023				2024				2023				2024				2023
Net income		$	15			$	197											$	15			$	197			$	0.09			$	1.08
Net income attributable to noncontrolling interests			(30	)			(25	)											(30	)			(25	)			(0.17	)			(0.14	)
Net (loss) income attributable to Huntsman Corporation			(15	)			172												(15	)			172				(0.09	)			0.94
Interest expense, net from continuing operations			39				33
Income tax (benefit) expense from continuing operations			(7	)			39			$	7			$	(39	)
Income tax (benefit) expense from discontinued operations(3)			(8	)			16
Depreciation and amortization from continuing operations			144				139
Business acquisition and integration expenses and purchase accounting inventory adjustments, net			21				3				(17	)			(1	)			4				2				0.02				0.01
EBITDA / Loss (income) from discontinued operations(3)			8				(136	)			N/A				N/A				-				(120	)			-				(0.66	)
Gain on sale of business/assets			-				(1	)			-				-				-				(1	)			-				(0.01	)
Fair value adjustments to Venator investment, net and other tax matter adjustments			(7	)			5				2				-				(5	)			5				(0.03	)			0.03
Certain legal and other settlements and related expenses			2				2				(1	)			-				1				2				0.01				0.01
Certain non-recurring information technology project implementation costs			-				3				-				(1	)			-				2				-				0.01
Amortization of pension and postretirement actuarial losses			16				15				(1	)			(2	)			15				13				0.09				0.07
Restructuring, impairment and plant closing and transition costs			19				2				(6	)			(1	)			13				1				0.08				0.01
Adjusted(1)		$	212			$	292			$	(16	)		$	(44	)			13				76			$	0.08			$	0.42
Adjusted income tax expense(1)																			16				44
Net income attributable to noncontrolling interests																			30				25
Adjusted pre-tax income(1)																		$	59			$	145
Adjusted effective tax rate(4)																			27	%			30	%
Effective tax rate																			N/A				34	%
N/A = not applicable
See end of press release for footnote explanations.

 

- 6 -

 

 

Table 5 – Balance Sheets

 

		June 30,				December 31,
In millions		2024				2023
Cash		$	335			$	540
Accounts and notes receivable, net			877				753
Inventories			923				867
Other current assets			119				154
Property, plant and equipment, net			2,549				2,376
Other noncurrent assets			2,514				2,558
Total assets		$	7,317			$	7,248
Accounts payable		$	731			$	719
Other current liabilities			422				441
Current portion of debt			576				12
Long-term debt			1,344				1,676
Other noncurrent liabilities			908				922
Huntsman Corporation stockholders’ equity			3,114				3,251
Noncontrolling interests in subsidiaries			222				227
Total liabilities and equity		$	7,317			$	7,248

 

Table 6 – Outstanding Debt

 

		June 30,				December 31,
In millions		2024				2023
Debt:
Revolving credit facility		$	245			$	-
Senior notes			1,460				1,471
Accounts receivable programs			174				169
Variable interest entities			21				26
Other debt			20				22
Total debt - excluding affiliates			1,920				1,688
Total cash			335				540
Net debt - excluding affiliates(5)		$	1,585			$	1,148

 

See end of press release for footnote explanations.

 

- 7 -

 

 

Table 7 – Summarized Statements of Cash Flows

 

		Three months ended								Six months ended
		June 30,								June 30,
In millions		2024				2023				2024				2023
Total cash at beginning of period		$	552			$	615			$	540			$	654
Net cash provided by (used in) operating activities from continuing operations			55				40				(8	)			(82	)
Net cash used in operating activities from discontinued operations(3)			(9	)			(4	)			(11	)			(36	)
Net cash (used in) provided by investing activities from continuing operations			(50	)			(49	)			(80	)			444
Net cash used in investing activities from discontinued operations(3)			-				-				-				(4	)
Net cash used in financing activities			(210	)			(85	)			(102	)			(464	)
Effect of exchange rate changes on cash			(3	)			(15	)			(4	)			(10	)
Total cash at end of period		$	335			$	502			$	335			$	502
Free cash flow from continuing operations(2):
Net cash provided by (used in) operating activities from continuing operations		$	55			$	40			$	(8	)		$	(82	)
Capital expenditures			(50	)			(51	)			(92	)			(97	)
Free cash flow from continuing operations(2)		$	5			$	(11	)		$	(100	)		$	(179	)
Supplemental cash flow information:
Cash paid for interest		$	(29	)		$	(24	)		$	(41	)		$	(34	)
Cash paid for income taxes			(29	)			(33	)			(44	)			(62	)
Cash paid for restructuring and integration			(6	)			(16	)			(23	)			(38	)
Cash paid for pensions			(7	)			(9	)			(17	)			(20	)
Depreciation and amortization from continuing operations			75				70				144				139
Change in primary working capital:
Accounts and notes receivable		$	(43	)		$	23			$	(130	)		$	-
Inventories			(33	)			27				(71	)			(23	)
Accounts payable			(8	)			(123	)			22				(198	)
Total change in primary working capital		$	(84	)		$	(73	)		$	(179	)		$	(221	)

 

See end of press release for footnote explanations.

 

- 8 -

 

 

Footnotes

 

(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 (loss) 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; (b) interest expense, net; (c) income taxes; (d) depreciation and amortization; (e) amortization of pension and postretirement actuarial losses; (f) restructuring, impairment and plant closing and transition costs; 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 interests; (b) amortization of pension and postretirement actuarial losses; (c) restructuring, impairment and plant closing and transition costs; 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, net, 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)

During the first quarter 2023, we completed the divestiture of our Textile Effects business, which is reported as discontinued operations on the income and cash flow statements.

 

(4) We believe the 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 4 for 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.

 

(5) 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.

 

- 9 -

 

 

About Huntsman:

Huntsman Corporation is a publicly traded global manufacturer and marketer of differentiated and specialty chemicals with 2023 revenues of approximately $6 billion from our continuing operations. Our chemical products number in the thousands and are sold worldwide to manufacturers serving a broad and diverse range of consumer and industrial end markets. We operate more than 60 manufacturing, R&D and operations facilities in approximately 25 countries and employ approximately 6,000 associates within our continuing operations. For more information about Huntsman, please visit the company's website at www.huntsman.com. 

 

Social Media:

Twitter: www.twitter.com/Huntsman_Corp
Facebook: www.facebook.com/huntsmancorp
LinkedIn: www.linkedin.com/company/huntsman

 

Forward-Looking Statements:

This press release includes "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. These forward-looking statements include statements concerning our plans, objectives, goals, strategies, future events, future revenue or performance, capital expenditures, financing needs, plans or intentions relating to acquisitions, divestitures or strategic transactions, business trends and any other information that is not historical information. When used in this press release, the words "estimates," "expects," "anticipates," "likely," "projects," "outlook," "plans," "intends," "believes," "forecasts," or future or conditional verbs, such as "will," "should," "could" or "may," and variations of such words or similar expressions are intended to identify forward-looking statements. These forward-looking statements, including, without limitation, management's examination of historical operating trends and data, are based upon our current expectations and various assumptions and beliefs. In particular, such forward-looking statements are subject to uncertainty and changes in circumstances and involve risks and uncertainties that may affect the Company's operations, markets, products, prices and other factors as discussed in the Company's filings with the Securities and Exchange Commission (the "SEC"). Significant risks and uncertainties may relate to, but are not limited to, high energy costs in Europe, inflation and high capital costs, geopolitical instability, volatile global economic conditions, cyclical and volatile product markets, disruptions in production at manufacturing facilities, reorganization or restructuring of the Company's operations, including any delay of, or other negative developments affecting the ability to implement cost reductions and manufacturing optimization improvements in the Company's businesses and to realize anticipated cost savings, and other financial, operational, economic, competitive, environmental, political, legal, regulatory and technological factors. Any forward-looking statement should be considered in light of the risks set forth under the caption "Risk Factors" in our Annual Report on Form 10-K for the year ended December 31, 2023, which may be supplemented by other risks and uncertainties disclosed in any subsequent reports filed or furnished by the Company from time to time. All forward-looking statements apply only as of the date made. Except as required by law, the Company undertakes no obligation to update or revise forward-looking statements to reflect events or circumstances that arise after the date made or to reflect the occurrence of unanticipated events.

 

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Cover	Aug. 05, 2024
Cover [Abstract]
Document Type	8-K
Amendment Flag	false
Document Period End Date	Aug. 05, 2024
Entity File Number	001-32427
Entity Registrant Name	Huntsman Corporation
Entity Central Index Key	0001307954
Entity Tax Identification Number	42-1648585
Entity Incorporation, State or Country Code	DE
Entity Address, Address Line One	10003 Woodloch Forest Drive
Entity Address, City or Town	The Woodlands
Entity Address, State or Province	TX
Entity Address, Postal Zip Code	77380
City Area Code	281
Local Phone Number	719-6000
Written Communications	false
Soliciting Material	false
Pre-commencement Tender Offer	false
Pre-commencement Issuer Tender Offer	false
Title of 12(b) Security	Common Stock, par value $0.01 per share
Trading Symbol	HUN
Security Exchange Name	NYSE
Entity Emerging Growth Company	false

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