Huntsman Q3 Results and Plan to Spin Off TiO2
Huntsman Announces Third Quarter Results and
Filing of Initial Form 10 Registration Statement for Spin-off
Third Quarter 2016 Highlights
• Net income was $64 million compared to $63 million in the prior year period and $94 million in the prior
• Adjusted EBITDA was $272 million compared to $311 million in the prior year period and $325 million in
the prior quarter.
• Diluted income per share was $0.23 compared to $0.22 in the prior year period and $0.36 in the prior
• Adjusted diluted income per share was $0.38 compared to $0.47 in the prior year period and $0.53 in
the prior quarter.
• Adjusted EBITDA and net income impact from weather related and other production outages of
approximately $25 million and $16 million or approximately $0.07 per adjusted diluted share.
• Net cash provided by operating activities was $405 million. Free cash flow generation was $300
million; we made a $100 million early repayment of debt in July 2016 and another $100 million early
repayment of debt in September 2016.
• On August 3, 2016, we announced that Innospec Inc. committed to purchase our European surfactants
business at an enterprise value of $225 million. The business represents approximately $24 million of
annual adjusted EBITDA. Closing is expected to occur by the end of the fourth quarter of 2016.
Segment Analysis for 3Q16 Compared to 3Q15
The decrease in revenues in our Polyurethanes division for the three months ended September 30, 2016
compared to the same period in 2015 was primarily due to lower average selling prices and lower MTBE sales
volumes, partially offset by higher MDI sales volumes. MDI average selling prices decreased in response to
lower raw material costs. MTBE average selling prices decreased primarily as a result of lower pricing for high
octane gasoline. MDI sales volumes increased due to higher demand in the Americas and European regions.
MTBE sales volumes decreased primarily due to the impact of weather related and other production outages.
The decrease in adjusted EBITDA was primarily due to lower MTBE margins and the impact of weather related and other production outages estimated at approximately $15 million, partially offset by higher MDI margins and sales volumes.
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