FOR IMMEDIATE RELEASE
April 26, 2017
The Woodlands, Texas
First Quarter 2017 Highlights
- Net income was $92 million compared to $62 million in the prior year period and $137 million in the prior quarter.
- Adjusted EBITDA was $329 million compared to $274 million in the prior year period and $256 million in the prior quarter.
- Diluted income per share was $0.31 compared to $0.24 in the prior year period and $0.53 in the prior quarter.
- Adjusted diluted income per share was $0.57 compared to $0.37 in the prior year period and $0.30 in the prior quarter.
- Net cash provided by operating activities was $93 million. Free cash flow generation was $82 million.
- On April 25, 2017, we made a $100 million early repayment of debt.
- We are committed to an IPO or spin of our Pigments business in the summer of 2017.
THE WOODLANDS, Texas – Huntsman Corporation (NYSE: HUN) today reported first quarter 2017 results with revenues of $2,469 million, net income of $92 million and adjusted EBITDA of $329 million.
Peter R. Huntsman, our President and CEO, commented:
“Within the first quarter we saw positive business trends develop such that earnings for all our divisions exceeded early quarter expectations. Additionally, it is noteworthy that our combined non-pigment businesses experienced year-over-year EBITDA growth. Net income was $92 million and adjusted EBITDA improved by $62 million to $329 million compared to the prior year after taking into consideration the fourth quarter 2016 sale of our European surfactants business. Our cash flow provided from oper ating activities was $93 million. Strong earnings fueled free cash flow delivery of $82 million which includes $54 million of insurance proceeds, an improvement of $95 million compared to the prior year first quarter. We continue to strengthen our balance sheet and on April 25, 2017 we voluntarily repaid $100 million of debt. In total, we have repaid approximately $670 million over the last year. As a result of the strong first quarter earnings and our improving outlook for the remainder of the year, we now expect to generate more than $450 million of free cash flow in 2017.”
“We continue our efforts to separate our Pigments and Additives division (known as Venator) and are targeting an IPO or spin during this upcoming summer.”
Segment Analysis for 1Q17 Compared to 1Q16
The increase in revenues in our Polyurethanes segment for the three months ended March 31, 2017 compared to the same period of 2016 was primarily due to higher average selling prices. MDI average selling prices increased in response to higher raw material costs and continued strong market conditions. MTBE average selling prices increased primarily as a result of higher pricing for high octane gasoline. MDI and MTBE volumes were flat compared to the same period of 2016. The increase in segment adjusted EBITDA was primarily due to higher MDI margins, partially offset by lower MTBE margins.