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Huntsman Releases 2009 First Quarter Results

Please Click here for the PDF version of this release. ADJUSTED EBITDA IN LINE WITH FOURTH QUARTER RESULTS; AVAILABLE LIQUIDITY OF $1.1 BILLION

 

    THE WOODLANDS, Texas, May 8 /PRNewswire-FirstCall/ --

    First Quarter 2009 Highlights

    --  Revenues for the first quarter of 2009 were $1,693 million, a decrease
        of 33% compared to $2,540 million for the first quarter of 2008 and a
        decrease of 17% compared to $2,048 million for the fourth quarter of
        2008.
    --  As of March 31, 2009, we had $1,115 million of combined cash and
        unused borrowing capacity consisting of $473 million cash and $642
        million available borrowings under our credit facilities.  We
        generated positive cash flow through aggressive management of our
        primary working capital.  This available liquidity uniquely positions
        our business during these challenging economic times.
    --  Net loss attributable to Huntsman Corporation for the first quarter of
        2009 was $290 million or $1.24 loss per diluted share compared to net
        income attributable to Huntsman Corporation of $7 million or $0.03 per
        diluted share for the same period in 2008 and net income attributable
        to Huntsman Corporation of $598 million or $2.53 per diluted share for
        the fourth quarter of 2008.  Adjusted net loss from continuing
        operations attributable to Huntsman Corporation for the first quarter
        of 2009 was $274 million or $1.17 loss per diluted share including tax
        expense of $146 million or $0.62 per diluted share due to the
        establishment of a tax valuation allowance in the U.K.  Excluding the
        tax valuation allowance the first quarter 2009 loss from continuing
        operations attributable to Huntsman Corporation was $128 million or
        $0.55 loss per diluted share.  This adjusted net loss reflects a
        decrease compared to adjusted net income from continuing operations
        attributable to Huntsman Corporation of $17 million or $0.07 per
        diluted share for the same period in 2008 and adjusted net loss from
        continuing operations attributable to Huntsman Corporation of $91
        million or $0.38 loss per diluted share for the fourth quarter of
        2008.
    --  On April 16, 2009, we announced that as a matter of precautionary
        planning our wholly owned subsidiary Huntsman International LLC
        entered into a credit agreement waiver with lenders of its $650
        million revolving credit facility.  Among other things the waiver
        relaxed the senior secured leverage ratio covenant from 3.75 to 1.00
        to 5.00 to 1.00 for the measurement periods between June 30, 2009 and
        June 30, 2010.
    --  On January 22, 2009, we announced a company-wide initiative to reduce
        costs across all divisions and functions.  Including steps begun in
        the fourth quarter of 2008, we intend to reduce our full-time
        employment by approximately 1,250 positions - nearly 10% of all
        employees.  In addition, full-time contractor positions will be
        reduced by 490.  Annualized operating cost savings from all elements
        of the initiative are estimated to be $150 million.
    --  Adjusted EBITDA from continuing operations for the first quarter of
        2009 was $50 million compared to $188 million for the same period in
        2008 and $51 million for the fourth quarter of 2008.

    --  We continue to pursue our multi-billion dollar fraud and tortious
        interference claims against Credit Suisse and Deutsche Bank.  The
        court in Montgomery County, Texas has ordered mediation to begin on
        May 13, 2009 and trial to commence on June 8, 2009.


    Summarized earnings are as follows:




                                              Three months ended  Three months
                                                 March 31,             ended
                                                 ---------             -----
                                                                    December
    In millions, except per share amounts         2009     2008      31, 2008
    -------------------------------------         ----     ----     ---------

    Net (loss) income attributable to
     Huntsman Corporation                        $(290)      $7          $598
    Adjusted net (loss) income from
     continuing operations                       $(274)     $17          $(91)

    Diluted (loss) income per share             $(1.24)   $0.03         $2.53
    Adjusted diluted (loss) income per share
     from continuing operations                 $(1.17)   $0.07        $(0.38)

    EBITDA                                         $30     $170          $984
    Adjusted EBITDA from                           $50     $188           $51
      continuing operations

    See end of press release for important explanations

    Peter R. Huntsman, our President and CEO, stated:

"Our results for the first quarter of 2009 reflect decreased demand in all our businesses resulting from the worldwide economic slowdown. Although average demand for the quarter was soft, in fact it was softer than the fourth quarter, we did see positive order patterns within the first quarter and left the quarter with stronger demand than we entered. We have taken aggressive action to manage those business elements within our control. We are ahead of target and schedule to eliminate in excess of $150 million from our cost structure. We are actively managing our working capital for improvements to provide additional liquidity and we have obtained a waiver to our credit agreement that relaxes certain covenants and preserves our ability to access our $650 million revolver."


    He added, "With our strong liquidity and lower cost structure we are well
positioned for the current recession and to prosper as we see a return to
normal market conditions."



                              Huntsman Corporation
                                Operating Results
                                                               Three months
                                                              ended March 31,
    In millions, except per share amounts                      2009    2008
    -------------------------------------                      ----    ----

    Revenues                                                 $1,693  $2,540
    Cost of goods sold                                        1,548   2,173
                                                              -----   -----
    Gross profit                                                145     367
    Operating expenses                                          225     276
    Restructuring, impairment and plant closing costs            14       4
                                                                ---     ---
    Operating (loss) income                                     (94)     87
    Interest expense, net                                       (55)    (65)
    Loss on accounts receivable
     securitization program                                      (4)     (4)
    Equity in income of investment in
     unconsolidated affiliates                                    1       3
    Expenses associated with the Merger and
     related litigation                                          (7)     (5)
                                                                ---     ---
    (Loss) income from continuing operations before
     income taxes                                              (159)     16
    Income tax expense                                         (138)     (4)
                                                               ----     ---
    (Loss) income from continuing operations                   (297)     12
    Income (loss) from discontinued operations,
     net of tax(1)                                                3      (1)
                                                                ---     ---
    Net (loss) income                                          (294)     11
    Less net loss (income) attributable to
     noncontrolling interests                                     4      (4)
                                                                ---     ---
    Net (loss) income attributable to Huntsman
     Corporation                                              $(290)     $7
                                                              =====     ===


    Net (loss) income attributable to Huntsman
     Corporation                                              $(290)     $7
    Interest expense, net                                        55      65
    Income tax expense                                          138       4
    Depreciation and amortization                               126      94
    Income taxes included in discontinued operations(1,3)         1       -
                                                                ---     ---
    EBITDA(3)                                                   $30    $170

    Adjusted EBITDA - continuing operations(3)                  $50    $188

    Basic (loss) income per share                            $(1.24)  $0.03
    Diluted (loss) income per share                          $(1.24)  $0.03
    Adjusted diluted (loss) income per share from
     continuing operations(3)                                $(1.17)  $0.07

    Common share information:
      Basic shares outstanding                                  234     227
      Diluted shares                                            234     234

    See end of press release for footnote explanations



                       Huntsman Corporation
                          Segment Results

                                           Three months ended
                                                March 31,
      In millions                            2009     2008
                                             ----     ----

      Segment Revenues:
        Polyurethanes                        $600   $1,002
        Advanced Materials                    257      379
        Textile Effects                       152      243
        Performance Products                  500      631
        Pigments                              196      285
        Eliminations and other                (12)       -
                                              ---      ---
          Total                            $1,693   $2,540
                                           ======   ======

      Segment EBITDA(3):
        Polyurethanes                         $26     $132
        Advanced Materials                     10       40
        Textile Effects                       (11)      (1)
        Performance Products                   81       53
        Pigments                              (29)      10
        Corporate and other                   (51)     (63)
        Discontinued operations(1)              4       (1)
                                              ---      ---
                Total                         $30     $170
                                              ===     ====

      Segment Adjusted EBITDA(3) :
        Polyurethanes                         $27     $132
        Advanced Materials                     10       40
        Textile Effects                       (11)       -
        Performance Products                   81       53
        Pigments                              (16)      11
        Corporate and other                   (41)     (48)
                                              ---      ---
          Total                               $50     $188
                                              ===     ====


                                        Three months ended
                                             March 31,
                                           2009 vs. 2008
                                           -------------
                                       Average        Sales
      Period-Over-Period Decrease   Selling Price     Volume
                                    -------------     ------

        Polyurethanes                         (27)%    (18)%
        Advanced Materials                     (8)%    (27)%
        Textile Effects                        (4)%    (34)%
        Performance Products (a)              (13)%    (10)%
        Pigments                               (2)%    (30)%

    (a) Excludes revenues and sales volumes from tolling arrangements.

    See end of press release for footnote explanations

Three Months Ended March 31, 2009 Compared to Three Months Ended March 31, 2008

Revenues for the three months ended March 31, 2009 decreased to $1,693 million from $2,540 million during the same period in 2008. Revenues decreased due to lower sales volumes and lower average selling prices in all of our segments.

For the three months ended March 31, 2009, EBITDA was $30 million compared to $170 million in the same period in 2008. Adjusted EBITDA from continuing operations for the three months ended March 31, 2009 was $50 million compared to $188 million for the same period in 2008.

Polyurethanes

The decrease in revenues in the Polyurethanes segment for the three months ended March 31, 2009 compared to the same period in 2008 was primarily due to lower MDI sales volumes and overall lower average selling prices. MDI sales volumes decreased primarily due to lower demand in all regions and across all major markets as a result of the worldwide economic slowdown. MDI average selling prices decreased primarily due to competitive pressures, lower raw material costs and the strength of the U.S. dollar against major European currencies. PO and MTBE sales volumes increased due to stronger demand while average selling prices decreased with lower raw material costs. The decrease in EBITDA in the Polyurethanes segment was primarily the result of lower MDI sales volumes and margins partially offset by lower general and administrative costs.

Advanced Materials

The decrease in revenues in the Advanced Materials segment for the three months ended March 31, 2009 compared to the same period in 2008 was due to lower sales volumes and lower average selling prices. Sales volumes decreased due to lower demand in all regions and across all major markets as a result of the worldwide economic slowdown. Average selling prices decreased primarily as a result of increased competition in our base resins market and the strength of the U.S. dollar against major European currencies. The decrease in EBITDA was primarily due to lower sales volumes, partially offset by lower raw material and fixed costs.

Textile Effects

The decrease in revenues in the Textile Effects segment for the three months ended March 31, 2009 compared to the same period in 2008 was due to lower sales volumes and lower average selling prices. Sales volumes decreased primarily due to lower demand for Apparel and Home Textile products, as well as for Specialty Textiles products in all regions as a result of the worldwide economic slowdown. Average selling prices decreased primarily as a result of the strength of the U.S. dollar against major European currencies, the Indian Rupee and Brazilian Real while selling prices in local currency were higher in Asia and the Americas. The decrease in EBITDA was primarily due to lower sales volumes, partially offset by lower raw material and fixed costs.

Performance Products

The decrease in revenues in the Performance Products segment for the three months ended March 31, 2009 compared to the same period in 2008 was due to a decrease in both average selling prices and sales volumes. Average selling prices decreased in response to lower raw material costs. Sales volumes decreased across most product lines primarily due to the worldwide economic slowdown. The increase in EBITDA in the Performance Products segment was mainly due to higher contribution margins resulting from lower raw material costs. Also, in the prior year period our Port Neches, Texas facility underwent an extended turnaround and inspection, the financial impact of which we estimate was approximately $14 million.

Pigments

The decrease in revenues in the Pigments segment for the three months ended March 31, 2009 compared to the same period in 2008 was due to lower sales volumes and lower average selling prices. Sales volumes decreased primarily due to lower demand in all regions as a result of the worldwide economic slowdown. Average selling prices decreased primarily as a result of the strength of the U.S. dollar against major European currencies while selling prices in local currency were higher. The decrease in EBITDA in the Pigments segment was primarily due to lower sales volumes and higher restructuring and plant closing costs. During the three months ended March 31, 2009 the Pigments segment recorded restructuring, impairment and plant closing costs of $13 million compared to $1 million for the same period in 2008.

Discontinued Operations

On November 5, 2007, we completed the sale of the assets that comprised our U.S. base chemicals business to Flint Hills Resources. On August 1, 2007, we completed the sale of the majority of the assets that comprised our Polymers segment to Flint Hills Resources. Results from these businesses have been classified as discontinued operations.

Corporate and Other

Corporate and other items include the results of our Australia styrenics business, unallocated foreign exchange gains and losses, unallocated corporate overhead, loss on the sale of accounts receivable, merger and related litigation associated income and expense, income and expense attributable to noncontrolling interests, unallocated restructuring costs, gain and loss on the disposition of assets and other non-operating income and expense. In the first quarter of 2009, the total of these items was a loss of $51 million compared to a loss of $63 million in the comparable period of 2008. The increase in EBITDA from these items was primarily the result of an $8 million increase in income attributable to noncontrolling interests and a $6 million increase in unallocated foreign exchange gains ($2 million in gains in the 2009 period compared to $4 million in losses in the 2008 period).

Income Taxes

During the three months ended March 31, 2009, we recorded $138 million of income tax expense compared to $4 million of income tax expense in the comparable period of 2008. During the first quarter of 2009, we established a valuation allowance of $146 million on our U.K. net deferred tax assets, primarily as a result of cumulative losses through the current period.

Liquidity, Capital Resources and Outstanding Debt

As of March 31, 2009 we had $1,115 million of combined cash and unused borrowing capacity compared to $1,291 million at December 31, 2008. During the three months ended March 31, 2009, net debt plus outstandings under our off-balance sheet accounts receivable securitization program decreased $37 million.

On April 16, 2009, we announced that our wholly owned subsidiary, Huntsman International LLC, entered into a credit agreement waiver with the lenders under its $650 million revolving credit facility. The waiver relaxes the senior secured leverage ratio covenant from 3.75 to 1.00 to 5.00 to 1.00 for the measurement periods between June 30, 2009 and June 30, 2010. The waiver, among other things, also modifies the definition of Consolidated EBITDA and permits Huntsman International LLC to add back any lost profits attributable to Hurricanes Gustav and Ike that occurred in 2008. Additionally, the amount of permitted cash charges that can be added back to Consolidated EBITDA was increased from $100 million to $200 million.

As consideration for the waiver, Huntsman International offered a one-time payment of 50 basis points to consenting lenders. In addition the LIBOR spread on borrowed funds under the revolving credit facility increased to 400 basis points. Among other things, Huntsman also agreed not to make aggregate restricted payments greater than $100 million plus Available Equity Proceeds during the waiver period.

During the first quarter 2009, we achieved a favorable cash benefit from changes in accounts receivable, inventory and accounts payable of $58 million. For the three months ended March 31, 2009, total capital expenditures were $61 million compared to $109 million for the same period in 2008. We expect to spend approximately $230 million on capital expenditures in 2009 compared to approximately $418 million in 2008.

We continue to pursue our multi-billion dollar fraud and tortious interference claims against Credit Suisse and Deutsche Bank in the Montgomery County, Texas court. Any potential recovery resulting from this litigation may impact our liquidity. In connection with our ongoing insurance claim related to the April 29, 2006 Port Arthur, Texas fire, we have received partial insurance proceeds to date of $365 million. We have claimed an additional $243 million as presently due and owing and unpaid under our insurance policies as of March 31, 2009. The settlement of insurance claims will continue during 2009. Any anticipated recoveries are expected to be used to repay secured debt.

    Below is our outstanding debt:



                                March 31,  December 31,
      In millions                   2009         2008
                                    ----          ----
      Debt:
          Senior Credit
           Facilities            $1,524        $1,540
          Secured Notes             295           295
          Senior Notes              198           198
          Subordinated Notes      1,238         1,285
          Other Debt                284           329
          Convertible Notes         235           235
                                    ---           ---
      Total Debt                  3,774         3,882
                                  -----         -----

      Total Cash                    473           662
                                    ---           ---

      Net Debt                   $3,301        $3,220
                                 ======        ======

      Off-balance sheet accounts
       receivable securitization
       program                     $328          $446



                            Huntsman Corporation
                       Reconciliation of Adjustments



                                             Net Income
                                               (Loss)
                                            Attributable     Diluted
                                            to Huntsman     Income (Loss)
                              EBITDA        Corporation      Per Share
                              ------        -------------    ---------
                            Three months    Three months     Three months
                              ended            ended           ended
    In millions, except      March 31,        March 31,       March 31,
     per share amounts      2009  2008      2009    2008    2009   2008
    --------------------    ----  ----      ----    ----    ----   ----

    GAAP                     $30  $170     $(290)     $7  $(1.24) $0.03
    Adjustments:
      Loss on accounts
       receivable
       securitization
       program                 4     4         -       -       -      -
      Unallocated foreign
       currency (gain) loss   (2)    4         -       1       -      -
      Other restructuring,
       impairment and plant
       closing costs          14     4        14       3    0.06   0.01
      Expenses
       associated with
       the Merger              7     5         4       5    0.02   0.02
      Acquisition related
       expenses                1     -         1       -       -      -
      (Income) loss from
       discontinued
       operations, net of
       tax(1)                 (4)    1        (3)      1   (0.01)     -
                             ---  ----     -----     ---  ------  -----
    Adjusted continuing
     operations              $50  $188     $(274)    $17  $(1.17) $0.07
                                                          ------  -----

      UK tax valuation
       allowance               -     -       146       -    0.62      -
                             ---   ---       ---     ---     ---    ---
    Adjusted continuing
     operations (excluding
     UK tax valuation
     allowance)              $50  $188     $(128)    $17  $(0.55) $0.07
                                                          ------  -----

    Discontinued
     operations               $4   $(1)       $3     $(1)  $0.01     $-
      (Gain) loss on
       disposition of
       assets                 (4)    1        (3)      1   (0.01)     -
                             ---   ---       ---     ---   -----    ---
    Adjusted discontinued
     operations(1)            $-    $-        $-      $-      $-     $-




                                             Three months ended
                                                December 31,
    In millions                                     2008
    -----------                                     ----

    Net income attributable to Huntsman Corporation  598
    Interest expense, net                             64
    Income tax expense                               148
    Depreciation and amortization                    108
    Income taxes, depreciation and amortization
     included in discontinued operations(1,3)         66
                                                     ---
    EBITDA(3)                                       $984





                                                   Net Income
                                                    (Loss)         Diluted
                                                  Attributable      Income
                                                  to Huntsman       (Loss)
                                      EBITDA      Corporation     Per Share
                                   Three months   Three months   Three months
                                       ended         ended          ended
    In millions, except per         December 31,  December 31,   December 31,
     share amounts                     2008           2008           2008
    -----------------------            ----           ----           ----

    GAAP                                 $984            $598         2.53
     Adjustments:
      Loss on accounts receivable
       securitization program              11               -            -
      Unallocated foreign currency loss    25              12         0.05
      Loss on early
       extinguishment of debt               1               -            -
      Other restructuring, impairment
       and plant closing costs             28              25         0.11
      Income associated with the Merger  (815)           (610)       (2.58)
      Gain on dispositions of assets       (1)              -            -
      Gain from discontinued operations,
       net of tax(1)                     (178)           (112)       (0.47)
      Extraordinary gain on the
       acquisition of a business, net
       of tax(2)                           (4)             (4)       (0.02)

                                          ---            ----       ------
     Adjusted continuing operations       $51            $(91)      $(0.38)
                                                                    ------

    See end of press release for footnote explanations

    Conference Call Information

We will hold a conference call to discuss our first quarter 2009 financial results on Friday, May 8, 2009 at 11:00 a.m. ET.

    Call-in number for U.S. participants:                (888) 680 - 0892
    Call-in number for international participants:       (617) 213 - 4858
    Participant access code:                             42481081

In order to facilitate the registration process, you may use the following link to pre-register for the conference call. Callers who pre-register will be given a unique PIN to gain immediate access to the call and bypass the live operator. You may pre-register at any time, including up to and after the call start time. To pre-register, please go to: https://www.theconferencingservice.com/prereg/key.process?key=PM4FPJMTR

The conference call will be available via webcast and can be accessed from the investor relations portion of the company's website at http://www.huntsman.com.

The conference call will be available for replay beginning May 8, 2009 and ending May 15, 2009.

    Call-in numbers for the replay:
        Within the U.S.:              (888) 286 - 8010
        International:                (617) 801 - 6888
    Access code for replay:           16299215

    About Huntsman:

Huntsman (NYSE: HUN) is a global manufacturer and marketer of differentiated chemicals. Its operating companies manufacture products for a variety of global industries, including chemicals, plastics, automotive, aviation, textiles, footwear, paints and coatings, construction, technology, agriculture, health care, detergent, personal care, furniture, appliances and packaging. Originally known for pioneering innovations in packaging and, later, for rapid and integrated growth in petrochemicals, Huntsman has more than 12,000 employees and operates from multiple locations worldwide. The Company had 2008 revenues exceeding $10 billion. For more information about Huntsman, please visit the company's website at www.huntsman.com.

Forward-Looking Statements:

Statements in this release that are not historical are forward-looking statements. These statements are based on management's current beliefs and expectations. The forward-looking statements in this release are subject to uncertainty and changes in circumstances and involve risks and uncertainties that may affect the company's operations, markets, products, services, prices and other factors as discussed in the Huntsman companies' filings with the U.S. Securities and Exchange Commission. Significant risks and uncertainties may relate to, but are not limited to, financial, economic, competitive, environmental, political, legal, regulatory and technological factors. In addition, the completion of any transactions described in this release is subject to a number of uncertainties and closing will be subject to approvals and other customary conditions. Accordingly, there can be no assurance that such transactions will be completed or that the company's expectations will be realized. The company assumes no obligation to provide revisions to any forward-looking statements should circumstances change, except as otherwise required by applicable laws.




    (1)  On November 5, 2007, we completed the sale of our U.S. base
         chemicals business to Flint Hills Resources.  On August 1, 2007, we
         completed the sale of our U.S. polymers business to Flint Hills
         Resources.  On December 29, 2006, we completed the sale of our
         European petrochemicals business to SABIC.  Results from these
         businesses are treated as discontinued operations.  Segment EBITDA
         discontinued operations only includes the results of our U.S. base
         chemicals, U.S. polymers and European petrochemical businesses.

    (2)  On June 30, 2006, we acquired the global textile effects business of
         Ciba Specialty Chemicals Inc. for approximately $172 million.
         Because the fair value of acquired current assets less liabilities
         assumed exceeded the acquisition price and planned restructuring
         costs, the excess was recorded as an extraordinary gain on the
         acquisition of a business.  The extraordinary gain recorded during
         the three months ended December 31, 2008 was $4 million of which
         taxes were not applicable.

    (3)  We use EBITDA, Adjusted EBITDA from continuing operations, Adjusted
         EBITDA from discontinued operations, Adjusted net income from
         continuing operations and Adjusted net income from discontinued
         operations. We believe that net income (loss) attributable to
         Huntsman Corporation is the performance measure calculated and
         presented in accordance with generally accepted accounting principles
         in the U.S. ("GAAP") that is most directly comparable to EBITDA,
         Adjusted EBITDA from continuing operations and Adjusted net income
         from continuing operations. We believe that income (loss) from
         discontinued operations is the performance measure calculated and
         presented in accordance with GAAP that is most directly comparable to
         Adjusted EBITDA from discontinued operations and Adjusted net income
         from discontinued operations. Additional information with respect to
         our use of each of these financial measures follows:

         EBITDA is defined as net income (loss) attributable to Huntsman
         Corporation before interest, income taxes, and depreciation and
         amortization. EBITDA as used herein is not necessarily comparable to
         other similarly titled measures of other companies. The
         reconciliation of EBITDA to net income (loss) available to common
         stockholders is set forth in the operating results table above.

         Adjusted EBITDA from continuing operations is computed by eliminating
         the following from EBITDA:  gains and losses from discontinued
         operations; restructuring, impairment and plant closing (credits)
         costs; merger associated income and expense; losses on the sale of
         accounts receivable to our securitization program; unallocated
         foreign currency (gain) loss; certain legal and contract settlements;
         losses from early extinguishment of debt; extraordinary loss (gain)
         on the acquisition of a business; and loss (gain) on dispositions of
         assets.  The reconciliation of Adjusted EBITDA from continuing
         operations to EBITDA is set forth in the Reconciliation of
         Adjustments table above.

         Adjusted EBITDA from discontinued operations is computed by
         eliminating the following from income (loss) from discontinued
         operations: income taxes; depreciation and amortization;
         restructuring, impairment and plant closing (credits) costs; losses
         on the sale of accounts receivable to our securitization program;
         unallocated foreign currency (gain) loss; gain on partial fire
         insurance settlement; and (gain) loss on disposition of assets. The
         following table provides a reconciliation of Adjusted EBITDA from
         discontinued operations to income (loss) from discontinued
         operations:

                                                  Three months ended
                                                       March 31,
                                                   2009          2008
                                                   ----          ----

          Net Income (loss) from discontinued
           operations, net of tax                    $3          $(1)
            Income tax expense                        1            -
                                                    ---          ---
          EBITDA from discontinued operations         4           (1)
            (Gain) loss on disposition of assets     (4)           1
                                                    ---          ---
          Adjusted EBITDA from discontinued
           operations                                $-           $-
                                                    ===          ===

         Adjusted net income (loss) from continuing operations is computed by
         eliminating the after tax impact of the following items from net
         income (loss) attributable to Huntsman Corporation: loss (income)
         from discontinued operations; restructuring, impairment and plant
         closing (credits) costs; merger associated income and expense;
         unallocated foreign currency (gain) loss;  certain legal and contract
         settlements; losses on the early extinguishment of debt;
         extraordinary loss (gain) on the acquisition of a business; and loss
         (gain) on dispositions of assets. The reconciliation of Adjusted net
         income (loss) from continuing operations to net income (loss)
         attributable to Huntsman Corporation common stockholders is set forth
         in the Reconciliation of Adjustments table above.

         Adjusted net income (loss) from discontinued operations is computed
         by eliminating the after tax impact of the following items from
         income (loss) from discontinued operations: restructuring, impairment
         and plant closing (credits) costs; gain on partial fire insurance
         settlement; and (gain) loss on the disposition of assets.  The
         reconciliation of Adjusted net income (loss) from discontinued
         operations to net income (loss) available to common stockholders is
         set forth in the Reconciliation of Adjustments table above.



 

SOURCE  Huntsman Corporation

    -0-                           05/08/2009
    /CONTACT:  Media, Russ Stolle, +1-281-719-6624, or Investor Relations,
Kurt Ogden, +1-801-584-5959, both of Huntsman Corporation/
    /Web Site:  http://www.huntsman.com /
    (HUN)

CO:  Huntsman Corporation

ST:  Texas
IN:  CHM
SU:  ERN CCA

PR
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