Huntsman(US:HUN)2020-10-29 16:54Financial Performance - Revenues from continuing operations for the nine months ended September 30, 2020, were $4,350 million, down 15% from $5,140 million in the same period of 2019[181]. - Adjusted EBITDA for the third quarter of 2020 was $188 million, a decrease of 13% compared to $215 million in the same quarter of 2019[199]. - Revenues for the three months ended September 30, 2020, were $1.51 billion, a decrease of 10% compared to $1.69 billion in the same period of 2019[201]. - Gross profit for the three months ended September 30, 2020, was $279 million, down 18% from $340 million in the prior year[201]. - Operating income decreased by 61% to $60 million for the three months ended September 30, 2020, compared to $153 million in the same period of 2019[201]. - Net income for the three months ended September 30, 2020, was $58 million, representing a 53% increase from $38 million in the same quarter of 2019[201]. - Adjusted net income for the nine months ended September 30, 2020, was $105 million, down from $288 million in the prior year[205]. - Revenues for the nine months ended September 30, 2020, decreased by $790 million, or 15%, compared to the same period in 2019, driven by lower sales volumes and average selling prices across all segments[231]. - Gross profit for the nine months ended September 30, 2020, decreased by $334 million, or 31%, compared to the same period in 2019, resulting from lower gross profits in all segments[231]. - Segment adjusted EBITDA for Huntsman Corporation decreased by 39% to $407 million from $664 million year-over-year[233]. Cash Flow and Expenditures - Net cash provided by operating activities from continuing operations decreased by 75% to $110 million compared to $434 million in the prior year[200]. - Free cash flow from continuing operations for the nine months ended September 30, 2020, was $(60) million, compared to $253 million in the same period last year[205]. - Capital expenditures from continuing operations were $170 million, a decrease of 6% from $181 million in the prior year[201]. - Cash and cash equivalents increased by 121% to $1.17 billion from $525 million at the end of 2019[250]. - Working capital decreased by $769 million, primarily due to changes in cash, accounts receivable, and inventories[252]. - The company expects to spend approximately $250 million to $255 million on capital expenditures in 2020, with $50 million to $55 million deferred to 2021 and 2022[264]. Strategic Initiatives and Sales - The company announced the sale of its India-based DIY business for up to $285 million, with approximately $257 million expected at closing and an additional $28 million contingent on sales performance[183]. - The sale of approximately 42.5 million ordinary shares in Venator is expected to generate approximately $100 million, with anticipated cash tax savings of around $150 million[184]. - The company completed the sale of its Chemical Intermediates Businesses for $1.92 billion in January 2020, resulting in a tax payment of $188 million for the gain on the sale[265]. - A definitive agreement was made to sell approximately 42.5 million shares in Venator for approximately $100 million, with an expected cash tax savings of $150 million[264]. - The company announced the sale of its India-based DIY business to Pidilite Industries Ltd. for up to $285 million, with approximately $257 million received at closing[268]. Cost Management - The company implemented cost-saving initiatives in response to COVID-19, including a temporary hiring freeze and restructuring programs across various segments[192]. - Operating expenses for the three months ended September 30, 2020, decreased by $23 million, or 10%, compared to the same period in 2019, mainly due to cost suppression measures related to COVID-19[220]. - The company expects to achieve annualized cost savings and synergy benefits of more than $100 million by the end of 2021[268]. Tax and Income - The adjusted effective tax rate for the third quarter of 2020 was 23%, with an expected rate of approximately 20% to 22% for the full year[195]. - Income tax expense for the nine months ended September 30, 2020, decreased to $9 million from $113 million in the same period of 2019, primarily due to a decrease in pretax income[232]. - The company reported a loss on early extinguishment of debt amounting to $23 million for the nine months ended September 30, 2019[205].