Huntsman(US:HUN)2024-11-04 21:30Financial Performance - Third quarter 2024 revenues were $1,540 million, a 2.3% increase from $1,506 million in the prior year period[5] - The net loss attributable to Huntsman for the third quarter 2024 was $33 million, compared to a net income of $0 million in the prior year period[1] - Adjusted net income for the third quarter 2024 was $17 million, down from $27 million in the prior year period, representing a 37% decrease[2] - Adjusted EBITDA for the third quarter 2024 was $131 million, a slight decrease from $136 million in the prior year period[2] - Total revenues for the three months ended September 30, 2024, increased by 2% to $1,540 million compared to $1,506 million in the same period of 2023[17] - For the nine months ended September 30, 2024, total revenues decreased by 3% to $4,584 million compared to $4,708 million in the same period of 2023[17] - Net income attributable to Huntsman Corporation for the nine months ended September 30, 2024, was $(48) million, compared to $172 million for the same period in 2023, reflecting a significant decline[22] - The company reported a total adjusted EBITDA of $343 million for the nine months ended September 30, 2024, down 20% from $428 million in the prior year[21] Cash Flow and Debt - Free cash flow from continuing operations was $93 million for the third quarter 2024, down from $117 million in the prior year period, a decrease of 20.5%[12] - Cash at the end of the period was $330 million, down from $540 million at the beginning of the period[25] - Long-term debt decreased to $1,513 million as of September 30, 2024, from $1,676 million at December 31, 2023[23] - Net cash provided by operating activities from continuing operations for the three months ended September 30, 2024, was $134 million, compared to $167 million for the same period in 2023[25] - The company uses free cash flow to evaluate liquidity, strategic investments, stock buyback, and dividend levels, defined as net cash from operating activities minus capital expenditures[31] Taxation - The effective tax rate for the third quarter 2024 was 115%, with an expected adjusted effective tax rate for 2024 between 30% to 34%[14] - The adjusted income tax expense for the nine months ended September 30, 2024, was $23 million, compared to $25 million in the same period of 2023[21] - The effective tax rate for the three months ended September 30, 2024, was 115%, compared to 64% in the same period of 2023[21] - The adjusted effective tax rate for the nine months ended September 30, 2024, was 34%, compared to 33% for the same period in 2023[22] - Huntsman believes the adjusted effective tax rate provides better comparability between periods by excluding certain non-operational items[33] - The forward-looking adjusted effective tax rate is based on the forecast effective tax rate, reflecting uncertainties in future events[34] Segment Performance - Polyurethanes segment revenues rose by 4% to $1,003 million, while Performance Products and Advanced Materials segments saw slight increases of 1% and a decrease of 3%, respectively[17] - Total adjusted EBITDA for the three months ended September 30, 2024, decreased by 4% to $131 million from $136 million in the prior year[21] - The Polyurethanes segment's adjusted EBITDA fell by 6% to $76 million, and Performance Products experienced an 11% decline to $42 million[17] - The average selling price in the Polyurethanes segment decreased by 1% for the three months ended September 30, 2024, while sales volume increased by 5%[18] Corporate Actions and Outlook - The company successfully placed $350 million of senior notes due 2034 with a 5.7% coupon rate, aimed at general corporate purposes including debt repayment[3] - The company anticipates that interest rate cuts by the Federal Reserve and ECB, along with government stimulus in China, will positively impact its global portfolio, particularly in construction[6] - Huntsman disclosed forward-looking adjusted EBITDA, indicating that certain items affecting future performance cannot be adequately forecasted[30] - Huntsman emphasizes the importance of considering risks such as high energy costs, inflation, and geopolitical instability in its forward-looking statements[38] Other Information - Total assets increased to $7,334 million as of September 30, 2024, up from $7,248 million at December 31, 2023[23] - Total liabilities and equity remained stable at $7,334 million as of September 30, 2024, consistent with total assets[23] - The company reported a loss of $(5) million from discontinued operations for the three months ended September 30, 2024[25] - Huntsman Corporation reported approximately $6 billion in revenues from continuing operations for 2023[36] - The company completed the divestiture of its Textile Effects business during Q1 2023, which is classified as discontinued operations[32] - Huntsman employs approximately 6,000 associates across more than 60 manufacturing, R&D, and operations facilities in around 25 countries[36] - Huntsman reported approximately $10 million in legal and other settlements related to a commercial dispute for the three and nine months ended September 30, 2024[35] - Net debt is monitored by the company as an indicator of overall financial position, calculated by subtracting total cash from total debt[35]