Huntsman Corporation released its quarter four and full year 2012 results.
Full Year 2012 Highlights
-Net income attributable to Huntsman Corporation increased to $363 million compared to $247 million in the prior year period.
-Adjusted EBITDA improved 15% to $1,396 million compared to the prior year period.
-Adjusted diluted income per share improved 33% to $2.25 compared to the prior year period.
Fourth Quarter 2012 Highlights
-Adjusted EBITDA was $233 million compared to $243 million in the prior year period.
-Adjusted diluted income per share was $0.24 compared to $0.28 in the prior year period.
Net loss attributable to Huntsman Corporation was $40 million compared to $105 million of income in the prior year period. The decrease from the prior year period was primarily due to a $78 million loss on early extinguishment of debt (compared to $2 million in the prior year period) and $40 million of restructuring costs (compared to $4 million of credits in the prior year period).
Increased Common Dividend
The company's board of directors has declared a $0.125 per share cash dividend on its common stock. The dividend is payable on March 29, 2013 to stockholders of record as of March 15, 2013.
Huntsman Corporation reported fourth quarter 2012 results with revenues of $2,619 million and adjusted EBITDA of $233 million.
Segment Analysis for 4Q12 Compared to 4Q11
Polyurethanes
The increase in revenues in our Polyurethanes division for the three months ended December 31, 2012 compared to the same period in 2011 was due to higher average selling prices and higher sales volumes partially offset by the strength of the U.S. dollar against the euro. PO/MTBE average selling prices increased primarily due to favorable market conditions.
MDI average selling prices increased in all regions partially offset by the strength of the U.S. dollar against the euro. MDI sales volumes increased primarily due to strong demand globally for insulation and the housing & automotive recovery in North America, PO/MTBE volumes increased due to strong demand. The increase in adjusted EBITDA was primarily due to higher volumes, higher contribution margins and lower fixed costs.
Performance Products
The decrease in revenues in our Performance Products division for the three months ended December 31, 2012 compared to the same period in 2011 was due to lower sales volumes and lower average selling prices. Sales volumes decreased primarily due to lower product availability of intermediates as we prepared for our first quarter 2013 maintenance and softer demand for European surfactants.
Average selling prices declined due to lower raw material costs and the strength of the U.S. dollar against major international currencies, partially offset by an improvement in sales mix. The increase in adjusted EBITDA was primarily due to higher sales volumes and higher contribution margins in our amines business as well as higher contribution margins in our maleic anhydride and North American intermediates businesses.
Advanced Materials
Revenues were essentially unchanged in our Advanced Materials division for the three months ended December 31, 2012 compared to the same period in 2011 as higher sales volumes offset lower average selling prices. Sales volumes increased primarily due to stronger demand in the Americas, Asia Pacific and India while sales volumes in Europe decreased due to planned manufacturing maintenance and lower demand in the wind energy market.
Average selling prices decreased primarily due to competitive market pressure, lower raw material costs in most regions and the strength of the U.S. dollar against major international currencies. The decrease in adjusted EBITDA was primarily due to lower contribution margins partially offset by lower selling, general and administrative costs as a result of recent restructuring efforts.
On January 23, 2013 we announced a comprehensive restructuring program in our Advanced Materials division designed to improve efficiencies and increase its global competitiveness. We expect the program to be complete by the middle of 2014 with future annual benefits of approximately $70 million.
Textile Effects
The increase in revenues in our Textile Effects division for the three months ended December 31, 2012 compared to the same period in 2011 was due to higher sales volumes, partially offset by lower average selling prices. Sales volumes increased due to increased global market share and improved demand.
The increase in local currency average selling prices was offset by the strength of the U.S. dollar against major international currencies. The increase in adjusted EBITDA was primarily due to higher sales volumes and lower manufacturing and selling, general and administrative costs as a result of our restructuring efforts.
Pigments
The decrease in revenues in our Pigments division for the three months ended December 31, 2012 compared to the same period in 2011 was due to lower sales volumes and lower average selling prices. Sales volumes decreased primarily due to lower global demand and customer destocking.
Average selling prices decreased due to lower global demand and the strength of the U.S. dollar against major international currencies. The decrease in adjusted EBITDA was primarily due to lower sales volumes and lower contribution margins.
