Huntsman (HUN) Q4 2011 earnings summary

Executive summary

• FY11 revenue rose 21% to $11.221B; net income attributable to Huntsman Corporation was $247M vs. $27M in FY10, while adjusted EBITDA increased 39% to $1.214B.

• Higher selling prices across all segments and higher volumes in most segments supported revenue and gross profit growth; substantial restructuring charges and uneven segment trends tempered results.

Financial highlights

• Revenue $11.221B, up 21% YoY; gross profit $1.840B, up 26%; operating income $606M, up 48%.

• Net income attributable to Huntsman Corporation $247M vs. $27M; basic EPS $1.04 vs. $0.11 and diluted EPS $1.02 vs. $0.11.

• Adjusted EBITDA $1.214B, up 39%; adjusted net income $408M, up 104%; adjusted diluted EPS $1.69, up 104%.

• Net cash from operating activities was $365M vs. cash used of $58M in FY10; capital expenditures, net of reimbursements, were $327M vs. $202M.

• Restructuring, impairment and plant-closing costs were $167M vs. $29M; Textile Effects incurred $135M and Advanced Materials $20M in FY11.

Outlook and guidance

• 2012 outlook anticipated improving global conditions and stronger earnings in most segments, with Pigments margin pressure expected to offset those gains; slow growth expected in Europe.

• Polyurethanes outlook cited improving MDI demand and margins plus continued strength in PO/MTBE margins; Performance Products faced near-term amines margin pressure.

• Textile Effects restructuring benefits were expected from H2 2012; Pigments faced higher raw material costs and favorable ore contracts expiring at end-2012.

• 2012 capital expenditures, net of reimbursements, were expected at ~$425M, primarily for growth and maintenance; FY12 effective tax rate guidance was 30%–35%.