The Urethane Blog

Everchem Updates

VOLUME XXI

September 14, 2023

Everchem’s Closers Only Club

Everchem’s exclusive Closers Only Club is reserved for only the highest caliber brass-baller salesmen in the chemical industry. Watch the hype video and be introduced to the top of the league: read more

July 30, 2021

Huntsman Results

Huntsman Announces Strong Second Quarter 2021 Earnings

Download as PDF July 30, 2021 6:19am EDT

Related Documents

Audio Earnings WebcastEarnings Slides PDF

THE WOODLANDS, Texas, July 30, 2021 /PRNewswire/ —

Second Quarter Highlights

  • Second quarter 2021 net income of $172 million compared to net loss of $59 million in the prior year period; second quarter 2021 diluted earnings per share of $0.70 compared to loss per share of $0.28 in the prior year period.
  • Second quarter 2021 adjusted net income of $191 million compared to adjusted net loss of $30 million in the prior year period; second quarter 2021 adjusted diluted earnings per share of $0.86 compared to adjusted loss per share of $0.14 in the prior year period.
  • Second quarter 2021 adjusted EBITDA of $334 million compared to adjusted EBITDA of $54 million in the prior year period.
  • Second quarter 2021 net cash used in operating activities from continuing operations was $7 million. Free cash flow from continuing operations was a use of $83 million for the second quarter 2021.
  • Balance sheet is strong with a net leverage of 1.0x and total liquidity of approximately $1.9 billion. On May 26, 2021, the Company completed a $400 million offering of 2.95% senior notes due 2031. The net proceeds from the offering, along with cash on hand, were used to redeem in full $400 million in aggregate principal amount of the Company’s 5.125% senior notes due 2022. These actions will reduce Huntsman’s annual cash interest expense by approximately $9 million.
  • Received the $28 million earnout in May 2021 from the November 2020 divestiture of our India-based do-it-yourself consumer adhesives business. Gross proceeds from the divestiture totaled approximately $285 million, a 15x multiple on 2019 adjusted EBITDA of the divested business.
Three months endedSix months ended
June 30,June 30,
In millions, except per share amounts2021202020212020
Revenues$     2,024$     1,247$     3,861$     2,840
Net income (loss)$        172$        (59)$        272$        649
Adjusted net income (loss) (1)$        191$        (30)$        338$         35
Diluted income (loss) per share$       0.70$     (0.28)$       1.07$       2.90
Adjusted diluted income (loss) per share(1)$       0.86$     (0.14)$       1.52$       0.16
Adjusted EBITDA(1)$        334$         54$        623$        219
Net cash (used in) provided by operating activities from continuing operations$          (7)$         85$        (23)$         45
Free cash flow from continuing operations(2)$        (83)$         30$      (197)$        (71)
Adjusted free cash flow from continuing operations(6)$        (80)$         38$      (194)$        (61)
See end of press release for footnote explanations and reconciliations of non-GAAP measures.

Huntsman Corporation (NYSE: HUN) today reported second quarter 2021 results with revenues of $2,024 million, net income of $172 million, adjusted net income of $191 million and adjusted EBITDA of $334 million. 

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

We are pleased with second quarter earnings as demand in many of our businesses returned to pre-pandemic levels. The recent acquisitions and synergies already captured in Gabriel, CVC and our Huntsman Building Solutions franchise and several cost optimization initiatives that are well underway, are all contributing to our earnings improvement. We are also making good progress on our organic capital investments, including our MDI splitter project in Geismar, Louisiana, which we now expect to start up in early 2022. We are focused on delivering a strong EBITDA performance and high free cash flow in the second half of 2021.  We remain committed to maintain a strong balance sheet and a balanced deployment of our capital including further investments to secure growth. We will showcase our strategic initiatives and the continued transformation of the entire portfolio at our New York City Investor Day on November 9, 2021.”

Segment Analysis for 2Q21 Compared to 2Q20

Polyurethanes

The increase in revenues in our Polyurethanes segment for the three months ended June 30, 2021 compared to the same period of 2020 was largely due to higher MDI average selling prices and higher sales volumes. MDI average selling prices increased mostly in China and Europe. Sales volumes increased primarily due to stronger demand in relation to the ongoing recovery from the global economic slowdown, partially offset by the scheduled turnaround at our Rotterdam, Netherlands facility. The increase in segment adjusted EBITDA was primarily due to higher MDI margins resulting from higher MDI pricing and higher sales volumes as well as stronger earnings from our PO/MTBE joint venture in China, partially offset by higher raw material costs. 

Performance Products

The increase in revenues in our Performance Products segment for the three months ended June 30, 2021 compared to the same period of 2020 was primarily due to higher average selling prices and higher sales volumes. Average selling prices increased primarily due to stronger demand in relation to the ongoing recovery from the global economic slowdown as well as in response to an increase in raw material costs. Sales volumes also increased primarily 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 June 30, 2021 compared to the same period in 2020 was primarily due to higher sales volumes, higher average selling prices and the favorable net impact of our recent acquisitions and divestiture. Excluding our recent acquisitions and divestiture and except for our global aerospace business, sales volumes increased across all our specialty markets, primarily in relation to the ongoing recovery from the global economic slowdown. Average selling prices increased largely due to the impact of a weaker U.S. dollar against major international currencies and in response to higher raw material costs. The increase in segment adjusted EBITDA was primarily due to higher sales volumes and the benefit from our recent acquisitions.

https://www.huntsman.com/news/media-releases/detail/490/huntsman-announces-strong-second-quarter-2021-earnings

July 30, 2021

Huntsman Results

Huntsman Announces Strong Second Quarter 2021 Earnings

Download as PDF July 30, 2021 6:19am EDT

Related Documents

Audio Earnings WebcastEarnings Slides PDF

THE WOODLANDS, Texas, July 30, 2021 /PRNewswire/ —

Second Quarter Highlights

  • Second quarter 2021 net income of $172 million compared to net loss of $59 million in the prior year period; second quarter 2021 diluted earnings per share of $0.70 compared to loss per share of $0.28 in the prior year period.
  • Second quarter 2021 adjusted net income of $191 million compared to adjusted net loss of $30 million in the prior year period; second quarter 2021 adjusted diluted earnings per share of $0.86 compared to adjusted loss per share of $0.14 in the prior year period.
  • Second quarter 2021 adjusted EBITDA of $334 million compared to adjusted EBITDA of $54 million in the prior year period.
  • Second quarter 2021 net cash used in operating activities from continuing operations was $7 million. Free cash flow from continuing operations was a use of $83 million for the second quarter 2021.
  • Balance sheet is strong with a net leverage of 1.0x and total liquidity of approximately $1.9 billion. On May 26, 2021, the Company completed a $400 million offering of 2.95% senior notes due 2031. The net proceeds from the offering, along with cash on hand, were used to redeem in full $400 million in aggregate principal amount of the Company’s 5.125% senior notes due 2022. These actions will reduce Huntsman’s annual cash interest expense by approximately $9 million.
  • Received the $28 million earnout in May 2021 from the November 2020 divestiture of our India-based do-it-yourself consumer adhesives business. Gross proceeds from the divestiture totaled approximately $285 million, a 15x multiple on 2019 adjusted EBITDA of the divested business.
Three months endedSix months ended
June 30,June 30,
In millions, except per share amounts2021202020212020
Revenues$     2,024$     1,247$     3,861$     2,840
Net income (loss)$        172$        (59)$        272$        649
Adjusted net income (loss) (1)$        191$        (30)$        338$         35
Diluted income (loss) per share$       0.70$     (0.28)$       1.07$       2.90
Adjusted diluted income (loss) per share(1)$       0.86$     (0.14)$       1.52$       0.16
Adjusted EBITDA(1)$        334$         54$        623$        219
Net cash (used in) provided by operating activities from continuing operations$          (7)$         85$        (23)$         45
Free cash flow from continuing operations(2)$        (83)$         30$      (197)$        (71)
Adjusted free cash flow from continuing operations(6)$        (80)$         38$      (194)$        (61)
See end of press release for footnote explanations and reconciliations of non-GAAP measures.

Huntsman Corporation (NYSE: HUN) today reported second quarter 2021 results with revenues of $2,024 million, net income of $172 million, adjusted net income of $191 million and adjusted EBITDA of $334 million. 

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

We are pleased with second quarter earnings as demand in many of our businesses returned to pre-pandemic levels. The recent acquisitions and synergies already captured in Gabriel, CVC and our Huntsman Building Solutions franchise and several cost optimization initiatives that are well underway, are all contributing to our earnings improvement. We are also making good progress on our organic capital investments, including our MDI splitter project in Geismar, Louisiana, which we now expect to start up in early 2022. We are focused on delivering a strong EBITDA performance and high free cash flow in the second half of 2021.  We remain committed to maintain a strong balance sheet and a balanced deployment of our capital including further investments to secure growth. We will showcase our strategic initiatives and the continued transformation of the entire portfolio at our New York City Investor Day on November 9, 2021.”

Segment Analysis for 2Q21 Compared to 2Q20

Polyurethanes

The increase in revenues in our Polyurethanes segment for the three months ended June 30, 2021 compared to the same period of 2020 was largely due to higher MDI average selling prices and higher sales volumes. MDI average selling prices increased mostly in China and Europe. Sales volumes increased primarily due to stronger demand in relation to the ongoing recovery from the global economic slowdown, partially offset by the scheduled turnaround at our Rotterdam, Netherlands facility. The increase in segment adjusted EBITDA was primarily due to higher MDI margins resulting from higher MDI pricing and higher sales volumes as well as stronger earnings from our PO/MTBE joint venture in China, partially offset by higher raw material costs. 

Performance Products

The increase in revenues in our Performance Products segment for the three months ended June 30, 2021 compared to the same period of 2020 was primarily due to higher average selling prices and higher sales volumes. Average selling prices increased primarily due to stronger demand in relation to the ongoing recovery from the global economic slowdown as well as in response to an increase in raw material costs. Sales volumes also increased primarily 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 June 30, 2021 compared to the same period in 2020 was primarily due to higher sales volumes, higher average selling prices and the favorable net impact of our recent acquisitions and divestiture. Excluding our recent acquisitions and divestiture and except for our global aerospace business, sales volumes increased across all our specialty markets, primarily in relation to the ongoing recovery from the global economic slowdown. Average selling prices increased largely due to the impact of a weaker U.S. dollar against major international currencies and in response to higher raw material costs. The increase in segment adjusted EBITDA was primarily due to higher sales volumes and the benefit from our recent acquisitions.

https://www.huntsman.com/news/media-releases/detail/490/huntsman-announces-strong-second-quarter-2021-earnings

BASF Q2 results up on higher prices, volumes; boosts FY21 outlook

EDABy EDA28 julio, 2021

euros

Ludwigshafen, Germany (dpa-AFX) – BASF reported a 56-per-cent surge in second-quarter sales, largely driven by higher prices and volumes in all segments.

Sales for the quarter grew by 7.1 billion euros (8.38 billion dollars) to 19.8 billion euros from 12.7 billion euros generated in the prior year period.

Earnings before interest and taxes (EBIT) increased to 2.32 billion euros from 59 million euros last year.

EBIT, before special items, surged to 2.36 billion euros from 226 million euros reported in the same period of last year.

On a per share basis, earnings totalled 1.80 euros compared to a loss of 0.96 euros per share incurred a year ago.

Cash flows from operating activities amounted to 2.5 billion euros in the second quarter of 2021, 295 million euros above the prior-year quarter.

The improvement was mainly attributable to the considerably higher net income of 1.7 billion euros. At 1.8 billion euros, free cash flow increased by 254 million euros compared with the second quarter of 2020.

Dr Martin Brudermueller, chairman of the Board of Executive Directors of BASF, said: “Considerably higher earnings in our upstream businesses due to higher prices and volumes were the main driver for the strong increase in earnings overall. … In our downstream segments, we also managed to increase volumes and prices based on strong demand.”

Looking ahead, the company currently expects fiscal 2021 sales growth to be in the range of 74 billion euros – 77 billion euros, compared to the previously communicated range of 68 billion euros – 71 billion euros.

EBIT, before special items, is now expected to be between 7 billion euros and 7.5 billion euros, up from the prior guidance range of 5 billion euros – 5.8 billion euros.

BASF Q2 results up on higher prices, volumes; boosts FY21 outlook

EDABy EDA28 julio, 2021

euros

Ludwigshafen, Germany (dpa-AFX) – BASF reported a 56-per-cent surge in second-quarter sales, largely driven by higher prices and volumes in all segments.

Sales for the quarter grew by 7.1 billion euros (8.38 billion dollars) to 19.8 billion euros from 12.7 billion euros generated in the prior year period.

Earnings before interest and taxes (EBIT) increased to 2.32 billion euros from 59 million euros last year.

EBIT, before special items, surged to 2.36 billion euros from 226 million euros reported in the same period of last year.

On a per share basis, earnings totalled 1.80 euros compared to a loss of 0.96 euros per share incurred a year ago.

Cash flows from operating activities amounted to 2.5 billion euros in the second quarter of 2021, 295 million euros above the prior-year quarter.

The improvement was mainly attributable to the considerably higher net income of 1.7 billion euros. At 1.8 billion euros, free cash flow increased by 254 million euros compared with the second quarter of 2020.

Dr Martin Brudermueller, chairman of the Board of Executive Directors of BASF, said: “Considerably higher earnings in our upstream businesses due to higher prices and volumes were the main driver for the strong increase in earnings overall. … In our downstream segments, we also managed to increase volumes and prices based on strong demand.”

Looking ahead, the company currently expects fiscal 2021 sales growth to be in the range of 74 billion euros – 77 billion euros, compared to the previously communicated range of 68 billion euros – 71 billion euros.

EBIT, before special items, is now expected to be between 7 billion euros and 7.5 billion euros, up from the prior guidance range of 5 billion euros – 5.8 billion euros.

In-Depth: US furniture stores face foam shortage

Supply issues cause delivery delays Industry experts say a foam shortage wreaked havoc on the furniture and mattress industry, and it likely won’t end for months.

By: Jared Aarons Posted at 6:16 AM, Jul 27, 2021 and last updated 10:26 AM, Jul 27, 2021

SAN DIEGO (KGTV) – Industry experts say a foam shortage wreaked havoc on the furniture and mattress industry, and it likely won’t end for months.

Speaking with ABC 10News, Russ Batson, the Executive Director of the Polyurethane Foam Association, says he doesn’t expect supply levels to normalize until the holiday shopping season.

“It’s a really unfortunate confluence of factors,” Batson says.

The shortage has been going on for months, with no single reason to blame.

When the pandemic started, industry experts had to guess what would happen to demand. They thought demand would go down as people stayed home. Because of that, the industry, which uses a “just in time delivery” model for production, cut back on foam.

Instead, the opposite happened. As people redecorated their homes, they bought new mattresses and furniture. Demand quickly outpaced supply.

“All of the guesses that people made about where mattress sales, where furniture sales, and where car sales would be were wrong,” explains Batson.

Production quickly ramped up to meet demand, but the backlog of orders, combined with some production plants being closed for maintenance, created the shortage.https://flo.uri.sh/visualisation/6811572/embed?auto=1A Flourish chart

In February of 2021, it got worse when Winter Storm Uri hit Texas and Louisiana, knocking a handful of plants that make the chemical ingredients for foam offline.

“At a point when (production) needed to be going up, it was going down,” says Batson.

Batson also points out that pandemic-related embargoes on foreign goods kept supply low as well. And shortages of other raw materials like lumber made the problem worse.

As all of this played out, furniture stores and other businesses that rely on foam were left scrambling.

“It’s been a roller coaster, to say the least,” says Paul Rees, the co-owner of Greathouse in Miramar.

Once pandemic-related shut down restrictions were lifted, his store did a month’s worth of sales in less than two weeks after reopening in May. It hasn’t slowed down since.

Meanwhile, the foam shortage meant that orders which usually took 4-6 weeks to deliver started to take twice that long.

“The biggest challenge was setting the right expectations for the customers,” says Rees. “We tell them just to be patient, be understanding, and ultimately you’ll get what you want.”

Other stores took drastic measures to fulfill orders. At Altered Decor in the East Village, the owners told ABC 10News they sold some of their floor models. They also worked with new suppliers to find readily available pieces, and they began selling more plants, rugs, and home accessories.

Rees says he has faith the industry will weather the storm. In the meantime, he tells people looking to buy furniture to look at it as a long-term investment.

“They’re going to have this stuff for a very long time,” he says. “So even if you have to wait a little bit extra, and you may be disappointed, get what you want because you’re gonna be looking at it, using it, and enjoying it for years and years and years to come.”

https://www.10news.com/news/in-depth/in-depth-us-furniture-stores-face-foam-shortage