Urethane Blog

Huntsman Results

July 30, 2021

Huntsman Announces Strong Second Quarter 2021 Earnings

Download as PDF July 30, 2021 6:19am EDT

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THE WOODLANDS, Texas, July 30, 2021 /PRNewswire/ —

Second Quarter Highlights

  • Second quarter 2021 net income of $172 million compared to net loss of $59 million in the prior year period; second quarter 2021 diluted earnings per share of $0.70 compared to loss per share of $0.28 in the prior year period.
  • Second quarter 2021 adjusted net income of $191 million compared to adjusted net loss of $30 million in the prior year period; second quarter 2021 adjusted diluted earnings per share of $0.86 compared to adjusted loss per share of $0.14 in the prior year period.
  • Second quarter 2021 adjusted EBITDA of $334 million compared to adjusted EBITDA of $54 million in the prior year period.
  • Second quarter 2021 net cash used in operating activities from continuing operations was $7 million. Free cash flow from continuing operations was a use of $83 million for the second quarter 2021.
  • Balance sheet is strong with a net leverage of 1.0x and total liquidity of approximately $1.9 billion. On May 26, 2021, the Company completed a $400 million offering of 2.95% senior notes due 2031. The net proceeds from the offering, along with cash on hand, were used to redeem in full $400 million in aggregate principal amount of the Company’s 5.125% senior notes due 2022. These actions will reduce Huntsman’s annual cash interest expense by approximately $9 million.
  • Received the $28 million earnout in May 2021 from the November 2020 divestiture of our India-based do-it-yourself consumer adhesives business. Gross proceeds from the divestiture totaled approximately $285 million, a 15x multiple on 2019 adjusted EBITDA of the divested business.
Three months endedSix months ended
June 30,June 30,
In millions, except per share amounts2021202020212020
Revenues$     2,024$     1,247$     3,861$     2,840
Net income (loss)$        172$        (59)$        272$        649
Adjusted net income (loss) (1)$        191$        (30)$        338$         35
Diluted income (loss) per share$       0.70$     (0.28)$       1.07$       2.90
Adjusted diluted income (loss) per share(1)$       0.86$     (0.14)$       1.52$       0.16
Adjusted EBITDA(1)$        334$         54$        623$        219
Net cash (used in) provided by operating activities from continuing operations$          (7)$         85$        (23)$         45
Free cash flow from continuing operations(2)$        (83)$         30$      (197)$        (71)
Adjusted free cash flow from continuing operations(6)$        (80)$         38$      (194)$        (61)
See end of press release for footnote explanations and reconciliations of non-GAAP measures.

Huntsman Corporation (NYSE: HUN) today reported second quarter 2021 results with revenues of $2,024 million, net income of $172 million, adjusted net income of $191 million and adjusted EBITDA of $334 million. 

Peter R. Huntsman, Chairman, CEO and President, commented:

We are pleased with second quarter earnings as demand in many of our businesses returned to pre-pandemic levels. The recent acquisitions and synergies already captured in Gabriel, CVC and our Huntsman Building Solutions franchise and several cost optimization initiatives that are well underway, are all contributing to our earnings improvement. We are also making good progress on our organic capital investments, including our MDI splitter project in Geismar, Louisiana, which we now expect to start up in early 2022. We are focused on delivering a strong EBITDA performance and high free cash flow in the second half of 2021.  We remain committed to maintain a strong balance sheet and a balanced deployment of our capital including further investments to secure growth. We will showcase our strategic initiatives and the continued transformation of the entire portfolio at our New York City Investor Day on November 9, 2021.”

Segment Analysis for 2Q21 Compared to 2Q20

Polyurethanes

The increase in revenues in our Polyurethanes segment for the three months ended June 30, 2021 compared to the same period of 2020 was largely due to higher MDI average selling prices and higher sales volumes. MDI average selling prices increased mostly in China and Europe. Sales volumes increased primarily due to stronger demand in relation to the ongoing recovery from the global economic slowdown, partially offset by the scheduled turnaround at our Rotterdam, Netherlands facility. The increase in segment adjusted EBITDA was primarily due to higher MDI margins resulting from higher MDI pricing and higher sales volumes as well as stronger earnings from our PO/MTBE joint venture in China, partially offset by higher raw material costs. 

Performance Products

The increase in revenues in our Performance Products segment for the three months ended June 30, 2021 compared to the same period of 2020 was primarily due to higher average selling prices and higher sales volumes. Average selling prices increased primarily due to stronger demand in relation to the ongoing recovery from the global economic slowdown as well as in response to an increase in raw material costs. Sales volumes also increased primarily due to stronger demand. The increase in segment adjusted EBITDA was primarily due to increased revenue and margins, partially offset by increased fixed costs.

Advanced Materials

The increase in revenues in our Advanced Materials segment for the three months ended June 30, 2021 compared to the same period in 2020 was primarily due to higher sales volumes, higher average selling prices and the favorable net impact of our recent acquisitions and divestiture. Excluding our recent acquisitions and divestiture and except for our global aerospace business, sales volumes increased across all our specialty markets, primarily in relation to the ongoing recovery from the global economic slowdown. Average selling prices increased largely due to the impact of a weaker U.S. dollar against major international currencies and in response to higher raw material costs. The increase in segment adjusted EBITDA was primarily due to higher sales volumes and the benefit from our recent acquisitions.

https://www.huntsman.com/news/media-releases/detail/490/huntsman-announces-strong-second-quarter-2021-earnings

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