Epoxy
February 16, 2022
Huntsman Epoxy Comments from Investors Call
Peter Huntsman
Let’s turn to Slide number 7. Advanced materials reported adjusted EBITDA of $54 million in the quarter, significantly above last year’s fourth quarter and the best fourth quarter ever despite in aerospace market, which is still some time away from a full recovery. Typically, the fourth quarter is a seasonally weaker quarter. However, the positive momentum in our sales and pricing actions continued into the fourth quarter across our specialty portfolio.
We discussed throughout 2021, our core aerospace business continued to show year-over-year growth with modest improvements in commercial production rates. We estimate that our aerospace EBITDA is approximately $45 million below pre-pandemic levels. In addition, we continue to increase prices across our portfolio in response to raw material and logistic cost inflation. These pricing actions have positive – have positioned us well for improved margins in the first quarter of 2022.
The recent acquisitions of CVC and Gabriel helped to drive our record results in the quarter and the integration of these businesses remained well on track. To date, we’ve achieved $12 million in synergies, and we’re confident that another $11 million will be achieved by 2023. Underlying demand for the Advanced Materials division is tracking well. And as aerospace recover, we expect this division to consistently generate additional EBITDA margins of 20% or better.
We will continue to grow this division organically and through targeted bolt-on acquisitions. We expect the momentum with which we exited the fourth quarter to continue into the first quarter. The combination of improved automotive and aerospace demand synergies in improved margins will drive year-over-year growth. As a result, we expect first quarter adjusted EBITDA to be between $58 million and $62 million, which is an impressive 36% year-over-year improvement at the midpoint of this guidance.
February 16, 2022
Westlake Rebrands
Westlake Chemical Corporation to Change Name to Westlake Corporation
- New name reflects the Company’s more diversified business portfolio stemming from recent acquisitions and overall organic and strategic growth
- Westlake is now organized under one unified brand with two segments – Housing & Infrastructure Products and Performance & Essential Materials
- Westlake recently concluded four key acquisitions valued at approximately $3.8 billion
February 15, 2022 06:30 AM Eastern Standard Time
HOUSTON–(BUSINESS WIRE)–Westlake Chemical Corporation (NYSE: WLK) today announced that it plans to officially change its name to Westlake Corporation effective on February 18, 2022.
“We have reached an important milestone in the history of our Company”Tweet this
Westlake is now organized under one unified brand name with two financial reporting segments: Housing & Infrastructure Products and Performance & Essential Materials.
“We have reached an important milestone in the history of our Company,” said Westlake President and Chief Executive Officer Albert Chao. “Our business portfolio has evolved over the last decade, particularly in the last year when we celebrated our 35th Anniversary. Through a combination of strategic acquisitions and organic growth that has been fueled by market trends, particularly in the rapidly expanding housing and infrastructure sector, we have made significant progress in diversifying our businesses and broadening our product offering. By changing our name, we will better represent the breadth of industries we serve, including housing and construction, automotive and consumer lifestyle, packaging and healthcare.”
Westlake completed a series of acquisitions during 2021, including LASCO Fittings, LLC, a manufacturer of injection-molded PVC fittings; Dimex LLC, a producer of post-industrial recycled plastic consumer and building products; and Boral Limited’s North American building products businesses, which include roofing, siding, trim, shutters, outdoor living products, decorative stone and windows. These acquisitions have significantly enhanced the Company’s position in the housing and infrastructure markets and have greatly expanded its overall product offering. In addition, Westlake recently closed the acquisition of the global epoxy business of Hexion Inc., a leading supplier of coatings and composites used in such high-growth applications as wind turbine blades and light-weight automotive structural components.
The Company’s two newly established reporting segments replace the former segments, Olefins and Vinyls. Housing & Infrastructure Products includes Westlake Royal Building Products, Westlake Pipe & Fittings, Westlake Global Compounds and Westlake Dimex. Performance & Essential Materials includes Westlake North American Vinyls, Westlake North American Chlor-alkali & Derivatives, Westlake European & Asian Chlorovinyls, Westlake Olefins, Westlake Polyethylene and Westlake Epoxy.
“As Westlake’s business continues to grow globally, serving multiple industries, what has not changed is our unwavering commitment to the communities where our 16,000 employees work and live, our insistence on high-quality products and services for our customers, and our unrelenting focus on safety and the environment,” continued Chao. “We are committed to delivering consistent, durable and increasingly sustainable products to customers, while also remaining steadfast in creating value for our shareholders. We believe our new name and segmentation better reflects where our Company is today and positions us well for continued long-term success.”
Westlake’s products and materials enhance people’s lives every day. They can be found in a wide range of consumer goods and necessities, such as disinfectants for drinking water; food-grade plastic films used to keep food safe and fresh; a variety of consumer goods including toys, shoes, furniture, car interiors, and electronics; and medical devices and applications such as IV bags and dialysis machine tubing. Additionally, Westlake produces key finished goods for building and infrastructure, such as PVC pipe for water and sewer; residential siding; architectural stone; cement, clay, metal and polymer composite roofing; trim and mouldings; outdoor living products; and more.
The Company’s common stock will continue to trade under the ticker symbol “WLK” on the New York Stock Exchange. Holders of stock certificates bearing the prior corporate name need not take any action at this time. Such stock certificates continue to be valid and need not be exchanged.
About Westlake
Westlake is a global manufacturer and supplier of materials and innovative products that enhance life every day. Headquartered in Houston, with operations in Asia, Europe and North America, we provide the building blocks for vital solutions — from housing and construction, to packaging and healthcare, to automotive and consumer. For more information, visit the company’s web site at www.westlake.com.
February 16, 2022
Westlake Rebrands
Westlake Chemical Corporation to Change Name to Westlake Corporation
- New name reflects the Company’s more diversified business portfolio stemming from recent acquisitions and overall organic and strategic growth
- Westlake is now organized under one unified brand with two segments – Housing & Infrastructure Products and Performance & Essential Materials
- Westlake recently concluded four key acquisitions valued at approximately $3.8 billion
February 15, 2022 06:30 AM Eastern Standard Time
HOUSTON–(BUSINESS WIRE)–Westlake Chemical Corporation (NYSE: WLK) today announced that it plans to officially change its name to Westlake Corporation effective on February 18, 2022.
“We have reached an important milestone in the history of our Company”Tweet this
Westlake is now organized under one unified brand name with two financial reporting segments: Housing & Infrastructure Products and Performance & Essential Materials.
“We have reached an important milestone in the history of our Company,” said Westlake President and Chief Executive Officer Albert Chao. “Our business portfolio has evolved over the last decade, particularly in the last year when we celebrated our 35th Anniversary. Through a combination of strategic acquisitions and organic growth that has been fueled by market trends, particularly in the rapidly expanding housing and infrastructure sector, we have made significant progress in diversifying our businesses and broadening our product offering. By changing our name, we will better represent the breadth of industries we serve, including housing and construction, automotive and consumer lifestyle, packaging and healthcare.”
Westlake completed a series of acquisitions during 2021, including LASCO Fittings, LLC, a manufacturer of injection-molded PVC fittings; Dimex LLC, a producer of post-industrial recycled plastic consumer and building products; and Boral Limited’s North American building products businesses, which include roofing, siding, trim, shutters, outdoor living products, decorative stone and windows. These acquisitions have significantly enhanced the Company’s position in the housing and infrastructure markets and have greatly expanded its overall product offering. In addition, Westlake recently closed the acquisition of the global epoxy business of Hexion Inc., a leading supplier of coatings and composites used in such high-growth applications as wind turbine blades and light-weight automotive structural components.
The Company’s two newly established reporting segments replace the former segments, Olefins and Vinyls. Housing & Infrastructure Products includes Westlake Royal Building Products, Westlake Pipe & Fittings, Westlake Global Compounds and Westlake Dimex. Performance & Essential Materials includes Westlake North American Vinyls, Westlake North American Chlor-alkali & Derivatives, Westlake European & Asian Chlorovinyls, Westlake Olefins, Westlake Polyethylene and Westlake Epoxy.
“As Westlake’s business continues to grow globally, serving multiple industries, what has not changed is our unwavering commitment to the communities where our 16,000 employees work and live, our insistence on high-quality products and services for our customers, and our unrelenting focus on safety and the environment,” continued Chao. “We are committed to delivering consistent, durable and increasingly sustainable products to customers, while also remaining steadfast in creating value for our shareholders. We believe our new name and segmentation better reflects where our Company is today and positions us well for continued long-term success.”
Westlake’s products and materials enhance people’s lives every day. They can be found in a wide range of consumer goods and necessities, such as disinfectants for drinking water; food-grade plastic films used to keep food safe and fresh; a variety of consumer goods including toys, shoes, furniture, car interiors, and electronics; and medical devices and applications such as IV bags and dialysis machine tubing. Additionally, Westlake produces key finished goods for building and infrastructure, such as PVC pipe for water and sewer; residential siding; architectural stone; cement, clay, metal and polymer composite roofing; trim and mouldings; outdoor living products; and more.
The Company’s common stock will continue to trade under the ticker symbol “WLK” on the New York Stock Exchange. Holders of stock certificates bearing the prior corporate name need not take any action at this time. Such stock certificates continue to be valid and need not be exchanged.
About Westlake
Westlake is a global manufacturer and supplier of materials and innovative products that enhance life every day. Headquartered in Houston, with operations in Asia, Europe and North America, we provide the building blocks for vital solutions — from housing and construction, to packaging and healthcare, to automotive and consumer. For more information, visit the company’s web site at www.westlake.com.
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.
| Three months ended | Twelve months ended | |||||||
| December 31, | December 31, | |||||||
| In millions, except per share amounts | 2021 | 2020 | 2021 | 2020 | ||||
| Revenues | $ 2,307 | $ 1,668 | $ 8,453 | $ 6,018 | ||||
| Net income | $ 607 | $ 360 | $ 1,104 | $ 1,066 | ||||
| Adjusted net income (1) | $ 207 | $ 113 | $ 784 | $ 218 | ||||
| Diluted income per share | $ 2.73 | $ 1.54 | $ 4.72 | $ 4.66 | ||||
| Adjusted diluted income per share(1) | $ 0.95 | $ 0.51 | $ 3.54 | $ 0.98 | ||||
| Adjusted EBITDA(1) | $ 349 | $ 240 | $ 1,343 | $ 647 | ||||
| Net cash provided by operating activities from continuing operations | $ 790 | $ 167 | $ 953 | $ 277 | ||||
| Free cash flow from continuing operations(2) | $ 698 | $ 88 | $ 611 | $ 28 | ||||
| See end of press release for footnote explanations and reconciliations of non-GAAP measures. |
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.
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.
| Three months ended | Twelve months ended | |||||||
| December 31, | December 31, | |||||||
| In millions, except per share amounts | 2021 | 2020 | 2021 | 2020 | ||||
| Revenues | $ 2,307 | $ 1,668 | $ 8,453 | $ 6,018 | ||||
| Net income | $ 607 | $ 360 | $ 1,104 | $ 1,066 | ||||
| Adjusted net income (1) | $ 207 | $ 113 | $ 784 | $ 218 | ||||
| Diluted income per share | $ 2.73 | $ 1.54 | $ 4.72 | $ 4.66 | ||||
| Adjusted diluted income per share(1) | $ 0.95 | $ 0.51 | $ 3.54 | $ 0.98 | ||||
| Adjusted EBITDA(1) | $ 349 | $ 240 | $ 1,343 | $ 647 | ||||
| Net cash provided by operating activities from continuing operations | $ 790 | $ 167 | $ 953 | $ 277 | ||||
| Free cash flow from continuing operations(2) | $ 698 | $ 88 | $ 611 | $ 28 | ||||
| See end of press release for footnote explanations and reconciliations of non-GAAP measures. |
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.
Everchem Updates Archive 
Sign Up for Email Updates