Company News

February 12, 2019

Huntsman Posts 2018 Earnings

Huntsman Announces Record Full Year 2018 Earnings With Strong and Consistent Cash Flow

|PR Newswire|About: HUN
Q4: 01-16-19 Earnings Summary

 

 

EPS of $0.52 misses by $-0.02
Revenue of $2.24B (+ 1.8% Y/Y) beats by $90M

THE WOODLANDS, Texas, Feb. 12, 2019 /PRNewswire/ —

Full Year 2018 and Fourth Quarter Highlights

  • 2018 net income of $650 million compared to $741 million in the prior year; 2018 diluted earnings per share of $1.39 compared to $2.61 in the prior year.
  • 2018 adjusted net income of $808 million compared to $604 million in the prior year; 2018 adjusted diluted earnings per share of $3.34 compared to $2.48 in the prior year.
  • 2018 adjusted EBITDA of $1,469 million compared to $1,259 million in the prior year.
  • Fourth quarter net loss of $315 million compared to net income of $287 million in the prior year period; Fourth quarter diluted loss per share of $1.43 compared to diluted earnings per share of $1.00 in the prior year period.
  • Fourth quarter adjusted net income of $123 million compared to $186 million in the prior year period; Fourth quarter adjusted diluted earnings per share of $0.52 compared to $0.76 in the prior year period.
  • Fourth quarter adjusted EBITDA of $275 million compared to $360 million in the prior year period.
  • 2018 net cash provided by operating activities was $963 million. Free cash flow generation was $651 million.
  • Balance sheet remains strong with a net leverage of 1.3x.
  • 2018 share repurchases of approximately 10.4 million shares for approximately $276 million.

 

Three months ended Twelve months ended
December 31, December 31,
In millions, except per share amounts 2018 2017 2018 2017
Revenues $2,236 $2,203 $9,379 $8,358
Net (loss) income $  (315) $   287 $   650 $   741
Adjusted net income(1) $   123 $   186 $   808 $   604
Diluted (loss) income per share $ (1.43) $  1.00 $  1.39 $  2.61
Adjusted diluted income per share(1) $  0.52 $  0.76 $  3.34 $  2.48
Adjusted EBITDA(1) $   275 $   360 $1,469 $1,259
Net cash provided by operating activities from continuing operations $   329 $   304 $   963 $   842
Free cash flow(2) $   195 $   190 $   651 $   594
See end of press release for footnote explanations

Huntsman Corporation (HUN) today reported fourth quarter 2018 results with revenues of $2,236 million, net loss of $315 million, adjusted net income of $123 million and adjusted EBITDA of $275 million.

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

“2018 was another successful year for Huntsman as we reported record earnings and consistent robust free cash flow.  We continued to expand in our downstream and differentiated businesses both through internal investments and bolt-on acquisitions. We reinforced our investment grade level balance sheet by entering into an expanded $1.2 billion senior unsecured revolver, and we remain well within investment grade metrics with a 1.3x net leverage ratio.  We also significantly enhanced our capital return to shareholders this past year by increasing our regular quarterly dividend by 30% and repurchasing over 10 million shares for approximately $276 million.

“In spite of strong customer destocking brought about by seasonal slowness, falling crude prices and economic uncertainties, our results reflect one of our strongest fourth quarters in our history.  We will continue to globalize recent investments, focus on our higher growth markets, and expand on our downstream businesses. We will also continue to make key investments to support our core long-term growth, such as building a new MDI splitter at our Geismar, Louisiana facility to support differentiated downstream growth, make additional bolt-on acquisitions as appropriate, and continue a balanced opportunistic approach to share buy-backs.  2019 will be another year of strong free cash flow generation and growth in our downstream businesses.”

Segment Analysis for 4Q18 Compared to 4Q17

Polyurethanes

The decrease in revenue in our Polyurethanes segment for the three months ended December 31, 2018 compared to the same period in 2017 was primarily due to lower MDI average selling prices partially offset by higher sales volumes.  MDI average selling prices decreased primarily due to a decline in component MDI selling prices in China and Europe.  MDI sales volumes increased due to the start-up of our new Chinese MDI facility in 2018 and the acquisition of Demilec, a North American polyurethane spray foam company, in April 2018. The decrease in adjusted EBITDA was primarily due to lower MDI margins driven by pricing, partially offset with higher sales volumes.

https://seekingalpha.com/pr/17408782-huntsman-announces-record-full-year-2018-earnings-strong-consistent-cash-flow

February 8, 2019

Univar Divests Nexeo’s Plastics Business

Univar and Nexeo Solutions Announce Divestiture of Nexeo’s Plastics Distribution Business to One Rock Capital Partners

February 08, 2019 | About: NXEO +0% NXEO +0%
  • Transaction valued at approximately $640 million
  • Transaction expected to close in the first half of 2019; net proceeds will be used to immediately pay down debt
  • Nexeo Plastics is a leading global distributor of a broad range of plastics products, including polymer products and engineering resins, to plastics processors in more than 60 countries worldwide
  • Business will continue to be led by Shawn Williams, executive vice president, Nexeo Plastics

DOWNERS GROVE, Ill. and THE WOODLANDS, Texas, Feb. 08, 2019 (GLOBE NEWSWIRE) — Univar Inc. (: UNVR) (“Univar”) and Nexeo Solutions, Inc. ( NXEO) (“Nexeo Solutions”) today announced an agreement for Nexeo Solutions to divest its plastics distribution business (“Nexeo Plastics”) to an affiliate of One Rock Capital Partners, LLC (“One Rock”) for an enterprise value of $640 million, subject to customary closing adjustments.

Univar’s president and CEO, David Jukes, said: “Today’s announcement marks the conclusion of our strategic review for Nexeo’s Plastics Business and enables us to concentrate our energy on the core chemical distribution business and the abundant value creation opportunities from the Nexeo Solutions and Univar combination.”

Nexeo Solutions’ president and CEO, David Bradley, commented: “For One Rock, the purchase of Nexeo Solutions Plastics represents an opportunity to acquire an industry-leading plastics distributor with strong customer and supplier relationships. As a stand-alone business with a clear strategy, the outlook for the Plastics business and its employees is extraordinary.”

“We are very excited to have One Rock invest in our business, which Nexeo Solutions has built into one of the leading global plastics distribution companies,” said Shawn Williams, executive vice president, for Plastics at Nexeo Solutions. “We look forward to operating as a pure-play plastics business and will focus our talent and resources on expanding our service offering for our suppliers and customers worldwide.”

One Rock Managing Partner Tony Lee commented, “We are excited about the opportunity to create a standalone plastics distribution business and invest in growth by deepening its relationships with customers and supplier partners. We look forward to collaborating with Nexeo Plastics’ management team to achieve the full potential of the business.”

One Rock Managing Partner R. Scott Spielvogel added, “The acquisition of Nexeo Plastics is the culmination of a yearlong evaluation by One Rock during which we utilized our extensive experience in executing corporate carve-outs, together with our knowledge of the plastics, chemicals and distribution industries. We fully expect that we will be able to help management fortify and expand the capabilities of the business, thereby driving value for suppliers and customers alike.”

Transaction Details
The divestiture is expected to result in net cash proceeds of at least $615 million, which will be immediately utilized to pay down debt. Transition services for corporate functions and shared distribution sites will be provided in order to support the buyer and seller during the transition period.

Closing Details
The divestiture has been approved by the Boards of Directors of both Univar and Nexeo Solutions and is anticipated to close in the first half of 2019, subject to receipt of regulatory approvals and satisfaction of other customary conditions and the closing of, or the satisfaction of the conditions to the closing of, Univar’s acquisition of Nexeo Solutions.

Advisors
For Univar, Goldman Sachs & Co. LLC is serving as financial advisor, and Wachtell, Lipton, Rosen & Katz is serving as legal counsel. For Nexeo Solutions, Moelis & Company LLC is serving as financial advisor, and Weil, Gotshal & Manges LLP is serving as legal counsel. For One Rock, Jefferies LLC is serving as financial advisor, and Latham & Watkins LLP and Hogan Lovells US LLP are serving as legal counsel.

https://www.gurufocus.com/news/812665/univar-and-nexeo-solutions-announce-divestiture-of-nexeos-plastics-distribution-business-to-one-rock-capital-partners

February 8, 2019

Univar Divests Nexeo’s Plastics Business

Univar and Nexeo Solutions Announce Divestiture of Nexeo’s Plastics Distribution Business to One Rock Capital Partners

February 08, 2019 | About: NXEO +0% NXEO +0%
  • Transaction valued at approximately $640 million
  • Transaction expected to close in the first half of 2019; net proceeds will be used to immediately pay down debt
  • Nexeo Plastics is a leading global distributor of a broad range of plastics products, including polymer products and engineering resins, to plastics processors in more than 60 countries worldwide
  • Business will continue to be led by Shawn Williams, executive vice president, Nexeo Plastics

DOWNERS GROVE, Ill. and THE WOODLANDS, Texas, Feb. 08, 2019 (GLOBE NEWSWIRE) — Univar Inc. (: UNVR) (“Univar”) and Nexeo Solutions, Inc. ( NXEO) (“Nexeo Solutions”) today announced an agreement for Nexeo Solutions to divest its plastics distribution business (“Nexeo Plastics”) to an affiliate of One Rock Capital Partners, LLC (“One Rock”) for an enterprise value of $640 million, subject to customary closing adjustments.

Univar’s president and CEO, David Jukes, said: “Today’s announcement marks the conclusion of our strategic review for Nexeo’s Plastics Business and enables us to concentrate our energy on the core chemical distribution business and the abundant value creation opportunities from the Nexeo Solutions and Univar combination.”

Nexeo Solutions’ president and CEO, David Bradley, commented: “For One Rock, the purchase of Nexeo Solutions Plastics represents an opportunity to acquire an industry-leading plastics distributor with strong customer and supplier relationships. As a stand-alone business with a clear strategy, the outlook for the Plastics business and its employees is extraordinary.”

“We are very excited to have One Rock invest in our business, which Nexeo Solutions has built into one of the leading global plastics distribution companies,” said Shawn Williams, executive vice president, for Plastics at Nexeo Solutions. “We look forward to operating as a pure-play plastics business and will focus our talent and resources on expanding our service offering for our suppliers and customers worldwide.”

One Rock Managing Partner Tony Lee commented, “We are excited about the opportunity to create a standalone plastics distribution business and invest in growth by deepening its relationships with customers and supplier partners. We look forward to collaborating with Nexeo Plastics’ management team to achieve the full potential of the business.”

One Rock Managing Partner R. Scott Spielvogel added, “The acquisition of Nexeo Plastics is the culmination of a yearlong evaluation by One Rock during which we utilized our extensive experience in executing corporate carve-outs, together with our knowledge of the plastics, chemicals and distribution industries. We fully expect that we will be able to help management fortify and expand the capabilities of the business, thereby driving value for suppliers and customers alike.”

Transaction Details
The divestiture is expected to result in net cash proceeds of at least $615 million, which will be immediately utilized to pay down debt. Transition services for corporate functions and shared distribution sites will be provided in order to support the buyer and seller during the transition period.

Closing Details
The divestiture has been approved by the Boards of Directors of both Univar and Nexeo Solutions and is anticipated to close in the first half of 2019, subject to receipt of regulatory approvals and satisfaction of other customary conditions and the closing of, or the satisfaction of the conditions to the closing of, Univar’s acquisition of Nexeo Solutions.

Advisors
For Univar, Goldman Sachs & Co. LLC is serving as financial advisor, and Wachtell, Lipton, Rosen & Katz is serving as legal counsel. For Nexeo Solutions, Moelis & Company LLC is serving as financial advisor, and Weil, Gotshal & Manges LLP is serving as legal counsel. For One Rock, Jefferies LLC is serving as financial advisor, and Latham & Watkins LLP and Hogan Lovells US LLP are serving as legal counsel.

https://www.gurufocus.com/news/812665/univar-and-nexeo-solutions-announce-divestiture-of-nexeos-plastics-distribution-business-to-one-rock-capital-partners

February 6, 2019

PU Recycling Initiative

Covestro is involved in a new Europe-wide research project

Improving the recycling of polyurethane plastics

Complete circular product life cycle as target / Funding by the European Union
more imagesdownload
PUReSmart Logo

Together with partners, Covestro is investigating how recycling polyurethane plastics can be significantly improved. The materials manufacturer is part of the new Europe-wide research project called “PUReSmart”, which comprises nine companies and academic institutions from six countries. The goal is to develop a complete circular product life cycle and turn polyurethane into a truly sustainable material. One of the materials made of polyurethane is soft and hard foam, which is required for mattresses and upholstered furniture as well as for insulating buildings and cooling devices.

PUReSmart will run for four years and will receive six million euros from the European Union under the Horizon 2020 research and innovation program (grant agreement No. 814543). The project, coordinated by the Belgian company Recticel, aims to recover 90 percent of the used polyurethane in order to create building blocks for existing or new products – for example a new polymer that combines the durability of thermosets with the recyclability of thermoplastics. Intelligent sorting methods are particularly important for efficient chemical recycling.

Obtaining new high-quality raw materials

Covestro is working on the best possible chemical recycling of polyurethanes after use during the project along with the qualitative treatment of the material flows that are generated during this. The aim is to obtain high-quality raw materials for new polyurethane applications. “Polyurethanes are a particularly versatile and widely used class of plastics that provide comfort and safety in many applications worldwide and, as an insulating material, contribute to energy savings and thus to sustainability,” says Dr. Nikola Schuck, who heads Covestro’s contributions to PUReSmart. “Now it’s time to increase the sustainable value of the material at the end of its useful life.”

In addition to Covestro and Recticel, the companies BT-Wolfgang Binder (Austria), WeylChem InnoTec (Germany), Ecoinnovazione SRL (Italy) and Ayming (France) are involved in the PUReSmart consortium, which stands for a seamless and complete value-added chain in polyurethane reprocessing. Other academic partners are the University of Ghent (Belgium), KU Leuven (Belgium) and the Universidad de Castilla – La Mancha (Spain).

https://press.covestro.com/news.nsf/id/improving-the-recycling-of-polyurethane-plastics

February 6, 2019

PU Recycling Initiative

Covestro is involved in a new Europe-wide research project

Improving the recycling of polyurethane plastics

Complete circular product life cycle as target / Funding by the European Union
more imagesdownload
PUReSmart Logo

Together with partners, Covestro is investigating how recycling polyurethane plastics can be significantly improved. The materials manufacturer is part of the new Europe-wide research project called “PUReSmart”, which comprises nine companies and academic institutions from six countries. The goal is to develop a complete circular product life cycle and turn polyurethane into a truly sustainable material. One of the materials made of polyurethane is soft and hard foam, which is required for mattresses and upholstered furniture as well as for insulating buildings and cooling devices.

PUReSmart will run for four years and will receive six million euros from the European Union under the Horizon 2020 research and innovation program (grant agreement No. 814543). The project, coordinated by the Belgian company Recticel, aims to recover 90 percent of the used polyurethane in order to create building blocks for existing or new products – for example a new polymer that combines the durability of thermosets with the recyclability of thermoplastics. Intelligent sorting methods are particularly important for efficient chemical recycling.

Obtaining new high-quality raw materials

Covestro is working on the best possible chemical recycling of polyurethanes after use during the project along with the qualitative treatment of the material flows that are generated during this. The aim is to obtain high-quality raw materials for new polyurethane applications. “Polyurethanes are a particularly versatile and widely used class of plastics that provide comfort and safety in many applications worldwide and, as an insulating material, contribute to energy savings and thus to sustainability,” says Dr. Nikola Schuck, who heads Covestro’s contributions to PUReSmart. “Now it’s time to increase the sustainable value of the material at the end of its useful life.”

In addition to Covestro and Recticel, the companies BT-Wolfgang Binder (Austria), WeylChem InnoTec (Germany), Ecoinnovazione SRL (Italy) and Ayming (France) are involved in the PUReSmart consortium, which stands for a seamless and complete value-added chain in polyurethane reprocessing. Other academic partners are the University of Ghent (Belgium), KU Leuven (Belgium) and the Universidad de Castilla – La Mancha (Spain).

https://press.covestro.com/news.nsf/id/improving-the-recycling-of-polyurethane-plastics