The Urethane Blog

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