Huntsman(HUN)2024-08-05 21:01Financial Performance - Second quarter 2024 net income attributable to Huntsman was $22 million, an increase from $19 million in the prior year period, with diluted income per share rising to $0.13 from $0.11[2][4] - Adjusted net income for the second quarter 2024 was $24 million, down from $39 million in the prior year, with adjusted diluted income per share decreasing to $0.14 from $0.22[2][4] - Second quarter 2024 adjusted EBITDA was $131 million, compared to $156 million in the same period last year, reflecting a decrease of 16%[2][4] - Revenues for the second quarter 2024 were $1,574 million, slightly down from $1,596 million in the prior year, marking a 1.4% decline[3][4] - Total revenues for the three months ended June 30, 2024, were $1,574 million, a decrease of 1% compared to $1,596 million for the same period in 2023[14] - Adjusted EBITDA for the three months ended June 30, 2024, was $131 million, down 16% from $156 million in the same period last year[14] - The company reported a net income of $38 million for the three months ended June 30, 2024, compared to $31 million in the same period last year[18] - The company experienced a 4% decrease in total revenues for the six months ended June 30, 2024, compared to the same period in 2023[14] Segment Performance - The Polyurethanes segment saw a decrease in revenues primarily due to lower MDI average selling prices, despite higher sales volumes[5] - The Performance Products segment experienced a revenue decline due to lower average selling prices, although sales volumes increased due to improved industrial activity[6] - Polyurethanes segment revenues decreased by 1% to $1,001 million for the three months ended June 30, 2024, compared to $1,012 million in 2023[14] - Performance Products segment revenues fell by 3% to $299 million for the three months ended June 30, 2024, down from $307 million in the prior year[14] - Advanced Materials segment revenues decreased by 2% to $279 million for the three months ended June 30, 2024, compared to $284 million in 2023[14] - Total adjusted EBITDA for the six months ended June 30, 2024, was $212 million, a decline of 27% from $292 million in the same period of 2023[14] Cash Flow and Capital Expenditures - Free cash flow from continuing operations was $5 million for the second quarter 2024, a significant improvement from a cash use of $11 million in the prior year[3][10] - Free cash flow from continuing operations was $5 million for the three months ended June 2024, compared to a negative $11 million for the same period in 2023[25] - Net cash provided by operating activities from continuing operations was $55 million for the three months ended June 2024, up from $40 million in the prior year[25] - The company expects to spend between $180 million to $200 million on capital expenditures in 2024, with $50 million spent in the second quarter 2024[10] Tax and Effective Rates - The effective tax rate for the second quarter 2024 was 30%, with an expected adjusted effective tax rate for 2024 of approximately 30% to 34%[11] - The adjusted effective tax rate for the three months ended June 30, 2024, was 23%, down from 39% in the same period of 2023[19] - Adjusted pre-tax income was reported at $59.145 million with an effective tax rate of 27%[20] Assets and Liabilities - Total assets increased to $7.317 billion as of June 30, 2024, compared to $7.248 billion at December 31, 2023[22] - Cash decreased from $540 million at December 31, 2023, to $335 million by June 30, 2024[22] - Total debt, excluding affiliates, rose to $1.920 billion from $1.688 billion[23] - The company reported a net debt of $1.585 billion, an increase from $1.148 billion[23] Company Overview and Risks - Huntsman Corporation's revenues for 2023 were approximately $6 billion from continuing operations[35] - The company operates over 60 manufacturing and R&D facilities across approximately 25 countries[35] - Huntsman Corporation employs around 6,000 associates within its continuing operations[35] - Significant risks include high energy costs in Europe, inflation, geopolitical instability, and volatile global economic conditions[37] - The company emphasizes that forward-looking statements are based on current expectations and various assumptions, which may involve risks and uncertainties[37] - The company does not undertake any obligation to update or revise forward-looking statements after the date made[37] - The company highlights potential disruptions in production and the impact of restructuring on operations and cost savings[37] - Forward-looking statements should be considered in light of the risks outlined in the Annual Report on Form 10-K for the year ended December 31, 2023[37]