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Everchem Updates
VOLUME XXI
September 14, 2023
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February 12, 2019
Lincoln in May 1860 and February 1865:
February 12, 2019
BASF to launch construction chemicals unit sale in spring – sources
FRANKFURT (Reuters) – BASF will launch the sale of its $3 billion-plus (£2.3 billion) construction chemicals business in the spring, as part of the German chemicals group’s drive to focus on more profitable operations, people close to the matter said.
BASF, which flagged its intention to auction off or merge the unit in October, said on Tuesday it had hired Goldman Sachs to organise the transaction.
“We are still at an early stage of the process,” a BASF spokesman said, declining to comment further on the timing.
Goldman Sachs declined to comment.
The world’s largest maker of chemical additives for concrete is expected to fetch roughly 3 billion euros (£2.6 billion), the sources said.
First information packages are expected to be sent out to prospective bidders in March, the sources said, while one of them added that first-round offers were likely to be due before the summer break.
The company’s new Chief Executive Martin Brudermueller in October unveiled plans to hive off the unit as BASF looks for ways to boost the group’s share price.
The company said at the time that the business, whose products have been used to build major train tunnels in the Swiss Alps and in London, was not deeply integrated into BASF’s production network and that it had fallen short of profitability targets.
It has grown little since BASF purchased it from Degussa in 2006 for 2.7 billion euros including debt. The unit’s need to cater to a large number of small to mid-size builders goes against BASF’s focus on large industrial customers, industry analysts said.
BASF bought seeds and crop chemical assets from Bayer and is seeking to wrap up the purchase of an engineering plastics business from Solvay to bolster margins at a time when its basic petrochemical businesses are slowing down.
Switzerland’s Sika, which is buying French construction chemicals company Parex from CVC Capital Partners, said last month it would be interested in the BASF unit but doubted a deal for all of the business was possible because of antitrust restrictions.
Companies such as LafargeHolcim, Saint Gobain, GCP, RPM and Mapei are also seen as potential suitors for all or parts of the business, as well as buyout groups such as Advent, Carlyle or CVC.
https://uk.reuters.com/article/uk-basf-divestiture/basf-to-launch-construction-chemicals-unit-sale-in-spring-sources-idUKKCN1Q116A
February 12, 2019
BASF to launch construction chemicals unit sale in spring – sources
FRANKFURT (Reuters) – BASF will launch the sale of its $3 billion-plus (£2.3 billion) construction chemicals business in the spring, as part of the German chemicals group’s drive to focus on more profitable operations, people close to the matter said.
BASF, which flagged its intention to auction off or merge the unit in October, said on Tuesday it had hired Goldman Sachs to organise the transaction.
“We are still at an early stage of the process,” a BASF spokesman said, declining to comment further on the timing.
Goldman Sachs declined to comment.
The world’s largest maker of chemical additives for concrete is expected to fetch roughly 3 billion euros (£2.6 billion), the sources said.
First information packages are expected to be sent out to prospective bidders in March, the sources said, while one of them added that first-round offers were likely to be due before the summer break.
The company’s new Chief Executive Martin Brudermueller in October unveiled plans to hive off the unit as BASF looks for ways to boost the group’s share price.
The company said at the time that the business, whose products have been used to build major train tunnels in the Swiss Alps and in London, was not deeply integrated into BASF’s production network and that it had fallen short of profitability targets.
It has grown little since BASF purchased it from Degussa in 2006 for 2.7 billion euros including debt. The unit’s need to cater to a large number of small to mid-size builders goes against BASF’s focus on large industrial customers, industry analysts said.
BASF bought seeds and crop chemical assets from Bayer and is seeking to wrap up the purchase of an engineering plastics business from Solvay to bolster margins at a time when its basic petrochemical businesses are slowing down.
Switzerland’s Sika, which is buying French construction chemicals company Parex from CVC Capital Partners, said last month it would be interested in the BASF unit but doubted a deal for all of the business was possible because of antitrust restrictions.
Companies such as LafargeHolcim, Saint Gobain, GCP, RPM and Mapei are also seen as potential suitors for all or parts of the business, as well as buyout groups such as Advent, Carlyle or CVC.
https://uk.reuters.com/article/uk-basf-divestiture/basf-to-launch-construction-chemicals-unit-sale-in-spring-sources-idUKKCN1Q116A
February 12, 2019
Huntsman Announces Record Full Year 2018 Earnings With Strong and Consistent Cash Flow
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 12, 2019
Huntsman Announces Record Full Year 2018 Earnings With Strong and Consistent Cash Flow
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
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