Huntsman Results

Huntsman Announces Second Quarter Results;
Reports Attractive MDI Margin Growth, Improving Sequential TiO2 Prices and
Substantial Improvement in Cash Generation

Second Quarter 2016 Highlights
• Net income was $94 million compared to $39 million in the prior year period and $62 million in the prior
quarter.
• Adjusted EBITDA was $325 million compared to $385 million in the prior year period and $274 million in
the prior quarter.
• Diluted income per share was $0.36 compared to $0.12 in the prior year period and $0.24 in the prior
quarter.
• Adjusted diluted income per share was $0.53 compared to $0.63 in the prior year period and $0.37 in
the prior quarter.
• Net cash provided by operating activities was $355 million. Free cash flow generation was $282
million; we subsequently made a $100 million early repayment of debt in July 2016.
THE WOODLANDS, Texas – Huntsman Corporation (NYSE: HUN) today reported second quarter 2016 results
with revenues of $2,544 million, net income of $94 million and adjusted EBITDA of $325 million.
Peter R. Huntsman, our President and CEO, commented:
“Our management team is focused on three primary strategic financial objectives. 1) Generating more than
$350 million of free cash flow in 2016. 2) Growing margins and earnings in our downstream differentiated
businesses. 3) Separating our TiO2 business through either a strategic combination or a spin-off.
“Our second quarter results demonstrate our commitment to these objectives. I am delighted we generated
$282 million of free cash flow during the quarter, in part due to our increased focus on inventory management
and are on plan to exceed our $350 million target. This enabled us to make a $100 million early repayment of
debt in July. Our MDI margins are expanding, our Performance Products margins are healthy and our
Advanced Materials business is maintaining strong margins. We are actively working toward a separation of
our TiO2 business with a target of year-end or first quarter 2017. TiO2 selling prices are rising and other
business conditions are improving for our Pigments and Additives business. In time, it should be well
positioned for our planned separation. We will provide more information regarding the separation on our
second quarter earnings conference call.
“I am encouraged by our second quarter results. We are well on track to successfully accomplish our
objectives.”
Segment Analysis for 2Q16 Compared to 2Q15
Polyurethanes
The decrease in revenues in our Polyurethanes division for the three months ended June 30, 2016 compared
to the same period in 2015 was primarily due to lower average selling prices partially offset by higher sales
volumes. MDI average selling prices decreased in response to lower raw material costs. MTBE average
selling prices decreased primarily as a result of lower pricing for high octane gasoline. MDI sales volumes
increased due to higher demand in the Americas and European regions. PO/MTBE sales volumes increased
due to the impact of the prior year planned maintenance outage. The increase in adjusted EBITDA was
primarily due to the impact of the prior year planned PO/MTBE maintenance outage, estimated at $30 million,
as well as higher MDI margins and sales volumes, partially offset by lower MTBE margins.

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