Urethane Blog
Huntsman Results
July 28, 2020
Huntsman Announces Second Quarter 2020 Earnings; Targets Total Annualized Cost Savings and Synergies of $100+ Million by End of 2021
THE WOODLANDS, Texas, July 28, 2020 /PRNewswire/ —
Second Quarter Highlights
- Second quarter 2020 net loss of $59 million compared to net income of $118 million in the prior year period; second quarter 2020 loss per share of $0.28 compared to diluted earnings per share of $0.47 in the prior year period.
- Second quarter 2020 adjusted net loss of $30 million compared to adjusted net income of $108 million in the prior year period; second quarter 2020 adjusted loss per share of $0.14 compared to diluted earnings per share of $0.47 in the prior year period.
- Second quarter 2020 adjusted EBITDA of $54 million compared to $245 million in the prior year period.
- Second quarter 2020 net cash provided by operating activities was $85 million. Free cash flow from continuing operations was $30 million for the second quarter 2020 and adjusted free cash flow from continuing operations was $38 million.
- Balance sheet remains strong with a net leverage of 1.5x and total liquidity is approximately $2.6 billion.
- The CVC Thermoset Specialties acquisition closed on May 18, 2020. The integration remains on track and the Company expects to achieve the targeted annualized synergies of approximately $15 million by the end of 2021.
- Including approximately $35 million of synergies relating to recent acquisitions, annualized savings in excess of $100 million are targeted by the end of 2021.
| Three months ended | Six months ended | |||||||
| June 30, | June 30, | |||||||
| In millions, except per share amounts | 2020 | 2019 | 2020 | 2019 | ||||
| Revenues | $ 1,247 | $ 1,784 | $ 2,840 | $ 3,453 | ||||
| Net (loss) income | $ (59) | $ 118 | $ 649 | $ 249 | ||||
| Adjusted net (loss) income(1) | $ (30) | $ 108 | $ 35 | $ 193 | ||||
| Diluted (loss) income per share | $ (0.28) | $ 0.47 | $ 2.90 | $ 0.98 | ||||
| Adjusted diluted (loss) income per share(1) | $ (0.14) | $ 0.47 | $ 0.16 | $ 0.83 | ||||
| Adjusted EBITDA(1) | $ 54 | $ 245 | $ 219 | $ 449 | ||||
| Net cash provided by operating activities from continuing operations | $ 85 | $ 217 | $ 45 | $ 177 | ||||
| Free cash flow from continuing operations(2) | $ 30 | $ 160 | $ (71) | $ 59 | ||||
| Adjusted free cash flow from continuing operations(6) | $ 38 | $ 160 | $ (61) | $ 59 | ||||
| See end of press release for footnote explanations and reconciliations of non-GAAP measures. |
Huntsman Corporation (NYSE: HUN) today reported second quarter 2020 results with revenues of $1,247 million, net loss of $59 million, adjusted net loss of $30 million and adjusted EBITDA of $54 million.
Peter R. Huntsman, Chairman, President and CEO, commented:
“We were fortunate to have been more prepared than ever as we entered the second quarter in an unprecedented global economic crisis, with little to no visibility. With our transformed balance sheet, there was no need to access capital markets and we completed the quarter with $2.6 billion of overall liquidity and generated positive free cash flow. We remain focused on what we can control and have accelerated and improved integration plans for our recent acquisitions, CVC Thermoset Specialties and Icynene-Lapolla. The total annualized targeted synergies for these acquisitions, to be achieved by the end of 2021, is now $35 million. Including these synergies, we have plans to achieve in excess of $100 million of targeted annualized savings by year end 2021. While the ongoing related global effects of COVID-19 remain uncertain and visibility continues to be poor, we see improving trends within most of our major markets and are optimistic that the worst of this economic slowdown is behind us.”
Segment Analysis for 2Q20 Compared to 2Q19
Polyurethanes
The decrease in revenues in our Polyurethanes segment for the three months ended June 30, 2020 compared to the same period of 2019 was due to lower MDI average selling prices and lower overall polyurethanes sales volumes. MDI average selling prices decreased across most major markets in relation to the global economic slowdown resulting from the COVID-19 pandemic. Overall polyurethanes sales volumes decreased in primarily relation to the global economic slowdown and the resulting decrease in demand across most major markets, partially offset by growth in China during the second quarter of 2020 and additional sales volumes in connection with the Icynene-Lapolla acquisition. The decrease in segment adjusted EBITDA was primarily due to lower component and polymeric systems margins largely driven by lower MDI pricing and lower polyurethanes sales volumes.
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