February 15, 2022

Huntsman Results

Huntsman Announces Fourth Quarter and Full Year 2021 Earnings; Fourth Quarter Buybacks of over $100 million and Dividend Increased 13%

Download as PDF February 15, 2022 6:00am EST

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THE WOODLANDS, Texas, Feb. 15, 2022 /PRNewswire/ —

Fourth Quarter Highlights

• Fourth quarter 2021 net income of $607 million compared to net income of $360 million in the prior year period; fourth quarter 2021 diluted earnings per share of $2.73 compared to diluted earnings per share of $1.54 in the prior year period.
• Fourth quarter 2021 adjusted net income of $207 million compared to adjusted net income of $113 million in the prior year period; fourth quarter 2021 adjusted diluted earnings per share of $0.95 compared to adjusted diluted earnings per share of $0.51 in the prior year period.
• Fourth quarter 2021 adjusted EBITDA of $349 million compared to adjusted EBITDA of $240 million in the prior year period.
• Fourth quarter 2021 net cash provided by operating activities from continuing operations was $790 million. Free cash flow from continuing operations was $698 million for the fourth quarter 2021, which includes a $332.5 million cash benefit from the Albemarle settlement.
• Repurchased approximately 3.1 million shares for approximately $101 million in the fourth quarter 2021.
• On February 14, 2022, the Board approved a 13% increase to the quarterly dividend.
• In December 2021, we initiated a strategic review of our Textile Effects segment, including a possible sale of the segment.
• Received first payment from Albemarle arbitration award of approximately $332.5 million on December 2, 2021. The final payment of $332.5 million will be received by early May 2022. In total, the Company is expected to receive pre-tax proceeds of approximately $465 million after legal fees.

Huntsman Corporation (NYSE: HUN) today reported fourth quarter 2021 results with revenues of $2,307 million, net income of $607 million, adjusted net income of $207 million and adjusted EBITDA of $349 million. 

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

“We concluded 2021 with the best year in our history with our current portfolio of businesses. The transformation of our portfolio has enabled our company to generate not only our highest ever adjusted EBITDA margins but consistent profit margins quarter on quarter throughout 2021, a hallmark of a more differentiated chemical business. We remain committed to a balanced capital deployment as we repurchased over $200 million of our own shares in the second half of the year and we have just announced a 13% increase to our quarterly dividend. While we view 2021 as a highly successful year for Huntsman, we see this is as just the beginning and we expect to build upon this momentum.

In 2022, as we outlined at our Investor Day, we expect to grow earnings further, expand adjusted EBITDA margins and deliver improved free cash flow and cost optimization. This year in the second quarter we will complete our Geismar Louisiana, MDI splitter project which will expand our differentiated Polyurethanes business in the Americas, and we will continue to progress our previously announced investments targeting electric vehicle batteries, semi-conductors, and polyurethane catalysts.

Following our portfolio transformation, we are now a focused, differentiated chemical company with a strong balance sheet providing financial flexibility to grow the company through organic investments and select bolt-on M&A while ensuring that we can provide strong returns of capital to our shareholders.

We continue to seek opportunities for optimization as evidenced by our recent announcement on Textile Effects. In addition, to align our leadership team to the goals we set out at our Investor Day in November, we have implemented a multi-year compensation program for the top 80 senior leaders in our company, that focuses on the delivery of improving EBITDA margin, free cash flow and cost optimization.

Our Board of Directors is fully aligned to our strategic intent and brings the relevant skills and experiences to help us achieve our targets. We expect 2022 to be another strong year for Huntsman and I look forward to updating you as the year progresses.”

Segment Analysis for 4Q21 Compared to 4Q20

Polyurethanes

The increase in revenues in our Polyurethanes segment for the three months ended December 31, 2021 compared to the same period in 2020 was primarily due to higher MDI average selling prices and higher sales volumes. MDI average selling prices increased in all regions. Sales volumes increased primarily due to growth in the Americas region and across multiple markets. The increase in segment adjusted EBITDA was primarily due to higher MDI volumes and higher equity earnings.

Performance Products

The increase in revenues in our Performance Products segment for three months ended December 31, 2021, compared to the same period in 2020 was primarily due to higher average selling prices and higher sales volumes.  Average selling prices increased primarily due to stronger demand and in response to increased raw material costs. Sales volumes increased largely due to stronger demand. The increase in segment adjusted EBITDA was primarily due to increased revenue and margins, partially offset by increased fixed costs.

Advanced Materials

The increase in revenues in our Advanced Materials segment for the three months ended December 31, 2021 compared to the same period in 2020 was primarily due to higher average selling prices, higher sales volumes and the favorable net impact of the Gabriel acquisition and India-based DIY divestiture.  Excluding the Gabriel acquisition and India-based DIY divestiture, sales volumes increased across all markets, primarily in relation to the ongoing recovery from the global economic slowdown. Average selling prices increased largely in response to higher raw material costs and due to the impact of a weaker U.S. dollar against major international currencies. The increase in segment adjusted EBITDA was primarily due to higher sales volumes and the benefits, including synergies, from our recent acquisitions, partially offset by higher fixed costs.

https://www.huntsman.com/news/media-releases/detail/511/huntsman-announces-fourth-quarter-and-full-year-2021

February 15, 2022

Huntsman Results

Huntsman Announces Fourth Quarter and Full Year 2021 Earnings; Fourth Quarter Buybacks of over $100 million and Dividend Increased 13%

Download as PDF February 15, 2022 6:00am EST

Related Documents

THE WOODLANDS, Texas, Feb. 15, 2022 /PRNewswire/ —

Fourth Quarter Highlights

• Fourth quarter 2021 net income of $607 million compared to net income of $360 million in the prior year period; fourth quarter 2021 diluted earnings per share of $2.73 compared to diluted earnings per share of $1.54 in the prior year period.
• Fourth quarter 2021 adjusted net income of $207 million compared to adjusted net income of $113 million in the prior year period; fourth quarter 2021 adjusted diluted earnings per share of $0.95 compared to adjusted diluted earnings per share of $0.51 in the prior year period.
• Fourth quarter 2021 adjusted EBITDA of $349 million compared to adjusted EBITDA of $240 million in the prior year period.
• Fourth quarter 2021 net cash provided by operating activities from continuing operations was $790 million. Free cash flow from continuing operations was $698 million for the fourth quarter 2021, which includes a $332.5 million cash benefit from the Albemarle settlement.
• Repurchased approximately 3.1 million shares for approximately $101 million in the fourth quarter 2021.
• On February 14, 2022, the Board approved a 13% increase to the quarterly dividend.
• In December 2021, we initiated a strategic review of our Textile Effects segment, including a possible sale of the segment.
• Received first payment from Albemarle arbitration award of approximately $332.5 million on December 2, 2021. The final payment of $332.5 million will be received by early May 2022. In total, the Company is expected to receive pre-tax proceeds of approximately $465 million after legal fees.

Huntsman Corporation (NYSE: HUN) today reported fourth quarter 2021 results with revenues of $2,307 million, net income of $607 million, adjusted net income of $207 million and adjusted EBITDA of $349 million. 

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

“We concluded 2021 with the best year in our history with our current portfolio of businesses. The transformation of our portfolio has enabled our company to generate not only our highest ever adjusted EBITDA margins but consistent profit margins quarter on quarter throughout 2021, a hallmark of a more differentiated chemical business. We remain committed to a balanced capital deployment as we repurchased over $200 million of our own shares in the second half of the year and we have just announced a 13% increase to our quarterly dividend. While we view 2021 as a highly successful year for Huntsman, we see this is as just the beginning and we expect to build upon this momentum.

In 2022, as we outlined at our Investor Day, we expect to grow earnings further, expand adjusted EBITDA margins and deliver improved free cash flow and cost optimization. This year in the second quarter we will complete our Geismar Louisiana, MDI splitter project which will expand our differentiated Polyurethanes business in the Americas, and we will continue to progress our previously announced investments targeting electric vehicle batteries, semi-conductors, and polyurethane catalysts.

Following our portfolio transformation, we are now a focused, differentiated chemical company with a strong balance sheet providing financial flexibility to grow the company through organic investments and select bolt-on M&A while ensuring that we can provide strong returns of capital to our shareholders.

We continue to seek opportunities for optimization as evidenced by our recent announcement on Textile Effects. In addition, to align our leadership team to the goals we set out at our Investor Day in November, we have implemented a multi-year compensation program for the top 80 senior leaders in our company, that focuses on the delivery of improving EBITDA margin, free cash flow and cost optimization.

Our Board of Directors is fully aligned to our strategic intent and brings the relevant skills and experiences to help us achieve our targets. We expect 2022 to be another strong year for Huntsman and I look forward to updating you as the year progresses.”

Segment Analysis for 4Q21 Compared to 4Q20

Polyurethanes

The increase in revenues in our Polyurethanes segment for the three months ended December 31, 2021 compared to the same period in 2020 was primarily due to higher MDI average selling prices and higher sales volumes. MDI average selling prices increased in all regions. Sales volumes increased primarily due to growth in the Americas region and across multiple markets. The increase in segment adjusted EBITDA was primarily due to higher MDI volumes and higher equity earnings.

Performance Products

The increase in revenues in our Performance Products segment for three months ended December 31, 2021, compared to the same period in 2020 was primarily due to higher average selling prices and higher sales volumes.  Average selling prices increased primarily due to stronger demand and in response to increased raw material costs. Sales volumes increased largely due to stronger demand. The increase in segment adjusted EBITDA was primarily due to increased revenue and margins, partially offset by increased fixed costs.

Advanced Materials

The increase in revenues in our Advanced Materials segment for the three months ended December 31, 2021 compared to the same period in 2020 was primarily due to higher average selling prices, higher sales volumes and the favorable net impact of the Gabriel acquisition and India-based DIY divestiture.  Excluding the Gabriel acquisition and India-based DIY divestiture, sales volumes increased across all markets, primarily in relation to the ongoing recovery from the global economic slowdown. Average selling prices increased largely in response to higher raw material costs and due to the impact of a weaker U.S. dollar against major international currencies. The increase in segment adjusted EBITDA was primarily due to higher sales volumes and the benefits, including synergies, from our recent acquisitions, partially offset by higher fixed costs.

https://www.huntsman.com/news/media-releases/detail/511/huntsman-announces-fourth-quarter-and-full-year-2021

February 11, 2022

Tosoh Names New President

http://www.mrcplast.com/news-news_open-399072.html

February 11, 2022

Tosoh Names New President

http://www.mrcplast.com/news-news_open-399072.html

February 10, 2022

Biggest Bottlenecks

Driving to the GW Bridge? It’s the worst bottleneck again

American Transportation Research Institute says Texas has the most bottlenecks in US

John Kingston Follow on Twitter Wednesday, February 9, 2022 3 minutes read

Listen to this article 0:00 / 5:44 BeyondWords

Once again, the worst truck bottleneck in the country is as a driver approaches the George Washington Bridge (GWB) from the New Jersey side.

For the third consecutive year, the American Transportation Research Institute found the intersection between state Route 4 and Interstate 95 in New Jersey, just before eastbound traffic crosses the bridge into New York, is the biggest bottleneck in the U.S. ATRI, the research arm of the American Trucking Associations, released its annual list Wednesday.

ATRI uses truck GPS data from the previous year to come up with its findings. It said it uses data from more than 1 million freight trucks and has set up a series of benchmarks to reach its conclusions on the most congested bottlenecks. There are 100 bottlenecks on the list. 

Once again, there is only one city with two bottlenecks in the top 10: Atlanta. The intersection between Interstate 285, the loop around Atlanta, and Interstate 85 on the northeast side of the city was fourth on the list — it was third in the 2020 survey — and the intersection between Interstates 20 and 285 on the west side of Atlanta was fifth. 

The junction in Cincinnati between Interstates 71 and 75 was second on the list for a second consecutive year. That exchange goes by the name, similar to other intersections around the country, of Spaghetti Junction, given its many elevated ramps that cross each other at varying heights. 

ATRI said the rebound of traffic in 2021 had resulted in average rush hour truck speeds of 38.6 miles per hour, which was down more than 11% from the prior year as traffic recovered from the low levels of the pandemic. 

The Department of Transportation recently reported that total miles driven in November were more than in 2019, the first time since the pandemic began that vehicle miles traveled were greater than corresponding pre-pandemic levels. In November 2021, vehicle miles traveled in the U.S. totaled 267.5 billion. In November 2019, it was 260.3 billion miles.

Other highlights of the ATRI reports:

– Houston’s downtown intersection between Interstates 45 and 69, which is also state Route 59, moved up to third from fifth last year. Another significant move, albeit downward, came for the intersection between Interstates 75 and 24 in Chattanooga, Tennessee, the only top 10 bottleneck not in one of the country’s biggest cities. It was 10th this year; last year it was seventh. 

– While Atlanta may be the only city with two top 10 bottlenecks, Southern California has two on the top 100. In Los Angeles, the intersection between state Routes 60 and 57 in Diamond Bar, a city in eastern Los Angeles County, is on the list, as is the intersection in San Bernardino between Interstates 10 and 15. 

– The George Washington Bridge approach was the only New York-area intersection in the top 10. The intersection between I-95 and Interstate 287 in Rye, New York, dropped off the top 10. It was ninth last year. It is down to 17th in the most recent survey.

– Chicago’s Interstate 290/90/94 intersection was sixth in both the 2021 and 2022 surveys.

– The states with the most bottlenecks on the top 100 list were Texas, 14; Georgia and Tennessee, nine; California, eight; Washington, seven; and Connecticut and New York, six. Texas’ ranking led to a statement being released by the Texas Trucking Association. “Texas is used to being ranked No. 1, but this is one list we are not proud to be on top of,” the association’s president and CEO, John D. Esparza, said. “Bottlenecks around the state continue to waste time and money, further damaging the already fragile supply chain. With the newly available federal resources for infrastructure projects, there is no excuse — these bottlenecks must be addressed. A reliable and stable transportation network is essential to our economy — just like the trucking industry.”

– Thirty states have at least one bottleneck on the list. Florida, where residents complain frequently about their traffic, has only one intersection on the list: Interstates 4 and 275 in Tampa at 69th. Boston’s traffic may be legendary as well, but it only came in with a 99th place spot, for Interstate 93 at SR 3. The Washington, D.C., area had a 92nd place finish for the intersection between I-95 and the beltway, known more formally as I-495. The 70th worst bottleneck intersection in Stafford, Virginia, on I-95 is on the more far-flung suburban outskirts of the D.C. suburbs in the Old Dominion State.