Huntsman(US:HUN)2024-11-05 17:13Financial Performance - Revenues for Q3 2024 were $1,540 million, a 2% increase from $1,506 million in Q3 2023[152] - Gross profit for Q3 2024 was $234 million, up 1% from $231 million in Q3 2023, while gross profit for the nine months ended September 2024 decreased by 10% to $678 million from $754 million[152] - Operating income for Q3 2024 increased by 56% to $42 million compared to $27 million in Q3 2023, but decreased by 72% for the nine months to $38 million from $138 million[152] - Net loss for Q3 2024 was $17 million, compared to a net income of $15 million in Q3 2023, reflecting a significant decline[152] - Adjusted EBITDA for Q3 2024 was $131 million, a 4% decrease from $136 million in Q3 2023, and down 20% for the nine months to $343 million from $428 million[152] - Net loss attributable to Huntsman Corporation for the nine months ended September 30, 2024, was $212 million, compared to a net income of $103 million for the same period in 2023[156] - Adjusted net income for the nine months ended September 30, 2024, was $30 million, while the adjusted net income per share was $0.17, compared to $0.57 in 2023[156] - Net cash provided by operating activities from continuing operations was $126 million for the nine months ended September 30, 2024, compared to $85 million in 2023[156] - Free cash flow from continuing operations was negative $7 million for the nine months ended September 30, 2024, compared to negative $62 million in 2023[156] Expenses and Costs - Interest expense for Q3 2024 increased by 40% to $21 million from $15 million in Q3 2023[152] - Income tax expense for Q3 2024 was $39 million, a 44% increase from $27 million in Q3 2023[152] - Operating expenses for the three months ended September 30, 2023, decreased by 6% to $186 million from $197 million in the prior year[154] - The company reported a significant increase of 186% in restructuring, impairment, and plant closing costs for the nine months ended September 30, 2023, totaling $20 million compared to $7 million in the prior year[154] - Interest expense for the nine months ended September 30, 2024 increased by $12 million, or 25%, compared to the 2023 period, primarily due to higher borrowings under the 2022 Revolving Credit Facility[189] Cash Flow and Investments - Cash used in investing activities from continuing operations was $(87) million, compared to $395 million in the previous period[153] - Capital expenditures from continuing operations were $(133) million, a 10% decrease from $(147) million in the previous period[153] - Net cash provided by operating activities increased to $126 million for the nine months ended September 30, 2024, compared to $85 million in the same period of 2023[202] - Cash and cash equivalents decreased to $330 million as of September 30, 2024, down 39% from $540 million at the end of 2023[208] - Working capital decreased by $409 million to $733 million as of September 30, 2024, primarily due to a decrease in cash and cash equivalents[209] Segment Performance - Total reportable segments' revenue for the nine months ended September 30, 2024 was $4,601 million, a decrease of 3% compared to $4,729 million in the same period of 2023[194] - Segment adjusted EBITDA for the nine months ended September 30, 2024 was $467 million, down 16% from $556 million in the same period of 2023[194] - Polyurethanes segment revenue decreased to $2,930 million, a 1% decline from $2,970 million in the prior year[194] - Performance Products segment revenue decreased by 5% to $870 million from $918 million year-over-year[194] - Advanced Materials segment revenue also decreased by 5% to $801 million compared to $841 million in the same period of 2023[194] Taxation - The effective tax rate for the nine months ended September 30, 2024, was 76%, significantly higher than the 42% effective tax rate in 2023[156] - The adjusted effective tax rate for the nine months ended September 30, 2024, was 34%, compared to 33% in 2023[166] Corporate Actions and Future Outlook - The company expects to spend approximately $180 million to $190 million on capital expenditures during 2024[214] - The sale of the Textile Effects Business to Archroma was completed for a purchase price of $597 million, with expected future cash taxes of approximately $3 million related to the sale[217] - The company achieved annualized cost savings and synergy benefits exceeding $280 million through restructuring efforts, with total cash costs expected to be approximately $302 million through 2026[218] - As of September 30, 2024, there is approximately $547 million remaining under the existing share repurchase program[219] - Huntsman International completed a $350 million offering of 2034 Senior Notes, bearing interest at 5.70% per year, for general corporate purposes including debt repayment[220] - Amendments to the U.S. and EU A/R Programs extended their maturity dates to January 2027 and July 2027, respectively[221] Legal Matters - A jury verdict in favor of the company against Praxair/Linde amounts to $93.1 million, with expected net proceeds of approximately $50 million to $60 million if affirmed by the Louisiana Supreme Court[222] Market Risks - The company is exposed to market risks including interest rates, foreign exchange rates, and commodity prices, and engages in hedging activities to manage these exposures[225]