Huntsman Announces Third Quarter 2024 Earnings
Third Quarter Highlights
Third quarter 2024 net loss attributable to Huntsman of $33 million compared to net income of $0 million in the prior year period; third quarter 2024 diluted loss per share of $0.19 compared to diluted income per share $0.00 in the prior year period.
Third quarter 2024 adjusted net income attributable to Huntsman of $17 million compared to adjusted net income of $27 million in the prior year period; third quarter 2024 adjusted diluted income per share of $0.10 compared to adjusted diluted income per share of $0.15 in the prior year period.
Third quarter 2024 adjusted EBITDA of $131 million compared to $136 million in the prior year period.
Third quarter 2024 net cash provided by operating activities from continuing operations was $134 million. Free cash flow from continuing operations was $93 million for the third quarter 2024 compared to $117 million in the prior year period.
Successfully placed $350 million of senior notes due 2034 with a 5.7% coupon rate. The proceeds were used for general corporate purposes, including repayment of debt.
Three months ended
Nine months ended
September 30,
September 30,
In millions, except per share amounts
2024
2023
2024
2023
Revenues
$ 1,540
$ 1,506
$ 4,584
$ 4,708
Net (loss) income attributable to Huntsman Corporation
$ (33)
$ -
$ (48)
$ 172
Adjusted net income(1)
$ 17
$ 27
$ 30
$ 103
Diluted (loss) income per share
$ (0.19)
$ -
$ (0.28)
$ 0.95
Adjusted diluted income per share(1)
$ 0.10
$ 0.15
$ 0.17
$ 0.57
Adjusted EBITDA(1)
$ 131
$ 136
$ 343
$ 428
Net cash provided by operating activities from continuing operations
$ 134
$ 167
$ 126
$ 85
Free cash flow from continuing operations(2)
$ 93
$ 117
$ (7)
$ (62)
See end of press release for footnote explanations and reconciliations of non-GAAP measures.
THE WOODLANDS, Texas, Nov. 4, 2024 /PRNewswire/ -- Huntsman Corporation (NYSE:HUN) today reported third quarter 2024 results with revenues of $1,540 million, net loss attributable to Huntsman of $33 million, adjusted net income attributable to Huntsman of $17 million and adjusted EBITDA of $131 million.
Peter R. Huntsman, Chairman, President, and CEO, commented:
"The third quarter was consistent with our outlook of a stable environment at trough conditions in our core construction and industrial markets. Total volumes for the Company did improve 5% in the quarter versus the prior year with stable margins sequentially. Construction and transportation account for approximately three quarters of our volumes and we expect near term trough conditions to persist through a seasonally lower fourth quarter. For the medium to long-term, interest rate cuts by the Federal Reserve and ECB, combined with government stimulus in China, should have a positive impact across our global portfolio, primarily in construction. In the meantime, we are focused on what we control - improving our cost position and our balance sheet strength to maintain optionality to invest in our core businesses in a disciplined manner. We were pleased by the success of our strong bond offering in the third quarter which points to the long-term strength of our portfolio and anticipation of market improvements in the coming years."
Segment Analysis for 3Q24 Compared to 3Q23
Polyurethanes
The increase in revenues in our Polyurethanes segment for the three months ended September 30, 2024 compared to the same period of 2023 was primarily due to higher sales volumes, partially offset by lower MDI average selling prices. Sales volumes increased primarily due to improved demand and share gains in certain markets. MDI average selling prices decreased primarily due to less favorable supply and demand dynamics. 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 fixed costs and higher sales volumes.
Performance Products
The increase in revenues in our Performance Products segment for the three months ended September 30, 2024 compared to the same period of 2023 was primarily due to higher sales volumes, partially offset by lower average selling prices. Sales volumes increased primarily due to improved demand in fuels and lubes and coatings and adhesives markets. Average selling prices decreased primarily due to competitive pressure. The decrease in segment adjusted EBITDA was primarily due to lower average selling prices and unfavorable sales mix, partially offset by higher sales volumes and lower fixed costs.
Advanced Materials
The decrease in revenues in our Advanced Materials segment for the three months ended September 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 coatings markets driven by market recovery, partially offset by lower demand in our industrial market. The decrease in segment adjusted EBITDA was primarily due to higher fixed costs.
Corporate, LIFO and other
For the three months ended September 30, 2024, adjusted EBITDA from Corporate and other was a loss of $34 million as compared to a loss of $41 million for the same period of 2023. The increase in adjusted EBITDA from Corporate and other resulted primarily from decreases in corporate overhead costs and unallocated foreign currency exchange losses, partially offset by an increase in LIFO valuation losses.
Liquidity and Capital Resources
During the three months ended September 30, 2024, our free cash flow from continuing operations was $93 million as compared to $117 million in the same period of 2023. As of September 30, 2024, we had approximately $1.7 billion of combined cash and unused borrowing capacity.
During the three months ended September 30, 2024, we spent $41 million on capital expenditures from continuing operations as compared to $50 million in the same period of 2023. During 2024, we expect to spend between approximately $180 million to $190 million on capital expenditures.
Income Taxes
In the third quarter of 2024, our effective tax rate was 115% and our adjusted effective tax rate was 41%. We expect our 2024 adjusted effective tax rate to be between approximately 30% to 34%. We expect our long-term adjusted effective tax rate to be between approximately 22% to 24%.
Earnings Conference Call Information
We will hold a conference call to discuss our third quarter 2024 financial results on Tuesday, November 5, 2024, at 10:00 a.m. ET.
Webcast link: https://event.choruscall.com/mediaframe/webcast.html?webcastid=52266EEY
Participant dial-in numbers:Domestic callers: (877) 402-8037International callers: (201) 378-4913
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 ConferencesDuring the fourth quarter 2024, a member of management is expected to present at:Morgan Stanley Global Chemicals, Agriculture and Packaging Conference, November 12, 2024Citi's Basic Materials Conference, December 3, 2024Goldman Sachs Industrials and Materials Conference, December 4, 2024
A webcast of the presentation, if applicable, along with accompanying materials will be available at www.huntsman.com/investors.
Table 1, Results of Operations
Three months ended
Nine months ended
September 30,
September 30,
In millions, except per share amounts
2024
2023
2024
2023
Revenues
$ 1,540
$ 1,506
$ 4,584
$ 4,708
Cost of goods sold
1,306
1,275
3,906
3,954
Gross profit
234
231
678
754
Operating expenses, net
187
198
600
609
Restructuring, impairment and plant closing costs
5
6
20
7
Gain on acquisition of assets, net
-
-
(51)
-
Prepaid asset write-off
-
-
71
-
Operating income
42
27
38
138
Interest expense, net
(21)
(15)
(60)
(48)
Equity in income of investment in unconsolidated affiliates
5
30
42
70
Other income (expense), net
8
-
22
(2)
Income from continuing operations before income taxes
34
42
42
158
Income tax expense
(39)
(27)
(32)
(66)
(Loss) income from continuing operations
(5)
15
10
92
(Loss) income from discontinued operations, net of tax(3)
(12)
-
(12)
120
Net (loss) income
(17)
15
(2)
212
Net income attributable to noncontrolling interests
(16)
(15)
(46)
(40)
Net (loss) income attributable to Huntsman Corporation
$ (33)
$ -
$ (48)
$ 172
Adjusted EBITDA(1)
$ 131
$ 136
$ 343
$ 428
Adjusted net income (1)
$ 17
$ 27
$ 30
$ 103
Basic (loss) income per share
$ (0.19)
$ -
$ (0.28)
$ 0.96
Diluted (loss) income per share
$ (0.19)
$ -
$ (0.28)
$ 0.95
Adjusted diluted income per share(1)
$ 0.10
$ 0.15
$ 0.17
$ 0.57
Common share information:
Basic weighted average shares
172
176
172
179
Diluted weighted average shares
172
177
172
181
Diluted shares for adjusted diluted income per share
173
177
173
181
See end of press release for footnote explanations.
Table 2, Results of Operations by Segment
Three months ended
Nine months ended
September 30,
Better /
September 30,
(Worse) /
In millions
2024
2023
(Worse)
2024
2023
Better
Segment Revenues:
Polyurethanes
$ 1,003
$ 967
4 %
$ 2,930
$ 2,970
(1 %)
Performance Products
280
277
1 %
870
918
(5 %)
Advanced Materials
261
268
(3 %)
801
841
(5 %)
Total Reportable Segments' Revenues
1,544
1,512
2 %
4,601
4,729
(3 %)
Intersegment Eliminations
(4)
(6)
n/m
(17)
(21)
n/m
Total Revenues
$ 1,540
$ 1,506
2 %
$ 4,584
$ 4,708
(3 %)
Segment Adjusted EBITDA(1):
Polyurethanes
$ 76
$ 81
(6 %)
$ 195
$ 235
(17 %)
Performance Products
42
47
(11 %)
130
173
(25 %)
Advanced Materials
47
49
(4 %)
142
148
(4 %)
Total Reportable Segments' Adjusted EBITDA(1)
165
177
(7 %)
467
556
(16 %)
Corporate, LIFO and other
(34)
(41)
17 %
(124)
(128)
3 %
Total Adjusted EBITDA(1)
$ 131
$ 136
(4 %)
$ 343
$ 428
(20 %)
n/m = not meaningful
