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Huntsman Releases 2009 Second Quarter Results

Please Click here for the PDF version of this release. --SECOND QUARTER RESULTS INCLUDE: NET INCOME OF $406 MILLION; ADJUSTED EBITDA IMPROVEMENT OF $96 MILLION FROM $50 MILLION IN THE FIRST QUARTER; POSITIVE CASH FLOW BENEFIT FROM PRIMARY WORKING CAPITAL IMPROVEMENTS OF $165 MILLIONTHE WOODLANDS, Texas, Aug 06, 2009 /PRNewswire-FirstCall via COMTEX/ -- Huntsman Corporation (NYSE: HUN)

Second Quarter 2009 Highlights

    --  Revenues for the second quarter of 2009 were $1,866 million, a decrease
        of 36% compared to $2,896 million for the second quarter of 2008 and an
        increase of 10% compared to $1,693 million for the first quarter of
        2009.
    --  Net income attributable to Huntsman Corporation for the second quarter
        of 2009 was $406 million or $1.51 per diluted share compared to net
        income attributable to Huntsman Corporation of $24 million or $0.10 per
        diluted share for the same period in 2008 and net loss attributable to
        Huntsman Corporation of $290 million or $1.24 loss per diluted share for
        the first quarter of 2009.  Adjusted net loss from continuing operations
        attributable to Huntsman Corporation for the second quarter of 2009 was
        $64 million or $0.27 loss per diluted share compared to adjusted net
        income from continuing operations attributable to Huntsman Corporation
        of $20 million or $0.09 per diluted share for the same period in 2008
        and adjusted net loss from continuing operations attributable to
        Huntsman Corporation excluding a UK tax valuation allowance of $128
        million or $0.55 loss per diluted share for the first quarter of 2009.
    --  Adjusted EBITDA from continuing operations for the second quarter of
        2009 was $96 million compared to $210 million for the same period in
        2008 and $50 million for the first quarter of 2009.
    --  On June 22, 2009, we reached an agreement with Credit Suisse and
        Deutsche Bank to settle our claims against them in Texas state court
        for, among other things, fraud and tortious interference in connection
        with our terminated merger agreements with Basell and Hexion Specialty
        Chemicals, Inc.  Under the terms of the settlement agreement, Credit
        Suisse and Deutsche Bank provided to us:
        --  $632 million in cash
        --  $500 million senior secured term loan financing, 7 year term at
            LIBOR + 2.25%
        --  $600 million unsecured note financing, 7 year term at 5.5%
    --  On July 23, 2009, we redeemed all ($296 million principal amount) of our
        outstanding 11.625% senior secured notes due 2010 and on August 3, 2009,
        we redeemed all ($198 million principal amount) of our outstanding 11.5%
        senior notes due 2012.  This debt reduction, which will be reflected in
        our balance sheet as of September 30, 2009, eliminates all meaningful
        debt maturities until 2013.

    --  As of June 30, 2009, we had $2,301 million of cash on hand.  During the
        second quarter we generated positive cash flow of approximately $165
        million through effective management of our primary working capital.

    Summarized earnings are as follows:

                                       Three months              Six months
                                           ended    Three Months    ended
                                          June 30,     Ended       June 30,
    In millions, except per            -------------  March 31, -------------
     share amounts                       2009   2008    2009     2009   2008
    -----------------------            ------  ----- ---------  ------  -----

    Net income (loss) attributable to
     Huntsman Corporation                $406    $24     $(290)   $116    $31
    Adjusted net (loss) income from
     continuing operations               $(64)   $20     $(274)  $(338)   $37

    Diluted income (loss) per share     $1.51  $0.10    $(1.24)  $0.47  $0.13
    Adjusted diluted (loss) income per
     share from continuing operations  $(0.27) $0.09    $(1.17) $(1.45) $0.16

    EBITDA                               $874   $210       $30    $904   $380
    Adjusted EBITDA from continuing
     operations                           $96   $210       $50    $146   $398

    See end of press release for important explanations

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

"I am pleased with our accomplishments and results during the second quarter. We successfully reached a settlement agreement with Credit Suisse and Deutsche Bank resulting in a very favorable outcome for our company. This brings to an end what could have been a lengthy period of litigation and appeals and provides us with a considerable amount of cash and financing that significantly strengthens our balance sheet and liquidity. More importantly, our monthly year-over-year volume order pattern shows positive trends which are reflected in our results, as adjusted EBITDA in the second quarter increased to $96 million from $50 million in the first quarter."

He added, "We will continue our vigilance over those business elements under our control, including effective management of our working capital and aggressive reduction of controllable costs. We are on target to have eliminated more than $150 million from our cost structure by year end."

                          Huntsman Corporation
                           Operating Results

                                  Three months ended  Six months ended
    In millions, except per              June 30,         June 30,
     share amounts                    2009    2008      2009    2008
    -----------------------          -----   -----     -----   -----

    Revenues                        $1,866  $2,896    $3,559  $5,436
    Cost of goods sold               1,629   2,514     3,177   4,687
                                     -----   -----     -----   -----
    Gross profit                       237     382       382     749
    Operating expenses                 235     277       460     553
    Restructuring, impairment
     and plant closing costs            63       1        77       5
                                     -----   -----     -----   -----
    Operating (loss) income            (61)    104      (155)    191
    Interest expense, net              (58)    (65)     (113)   (130)
    Loss on accounts receivable
     securitization program             (6)     (5)      (10)     (9)
    Equity in income of
     investment in
     unconsolidated affiliates           1       4         2       7
    Income (expenses) associated
     with the Terminated Merger
     and related litigation            844      (4)      837      (9)
                                     -----   -----     -----   -----
    Income from continuing
     operations before income taxes    720      34       561      50
    Income tax expense                (311)    (21)     (449)    (25)
                                     -----   -----     -----   -----
    Income from continuing
     operations                        409      13       112      25
    (Loss) income from discontinued
     operations, net of tax(1)          (3)      5         -       4
    Extraordinary gain on the
     acquisition of a business, net
     of tax                              -       9         -       9
                                     -----   -----     -----   -----
    Net income                         406      27       112      38
    Less net (income) loss
     attributable to
     noncontrolling interests            -      (3)        4      (7)
                                     -----   -----     -----   -----
    Net income attributable to
     Huntsman Corporation             $406     $24      $116     $31
                                     =====   =====     =====   =====


    Net income attributable to
     Huntsman Corporation             $406     $24      $116     $31
    Interest expense, net               58      65       113     130
    Income tax expense from
     continuing operations             311      21       449      25
    Income tax (benefit)
     expense from
     discontinued
     operations(1,3)                    (1)      2         -       2
    Depreciation and amortization      100      98       226     192
                                     -----   -----     -----   -----
    EBITDA(3)                         $874    $210      $904    $380

    Adjusted EBITDA - continuing
     operations(3)                     $96    $210      $146    $398

    Basic income per share           $1.74   $0.10     $0.50   $0.13
    Diluted income per share         $1.51   $0.10     $0.47   $0.13
    Adjusted diluted (loss)
     income per share from
     continuing operations(3)       $(0.27)  $0.09    $(1.45)  $0.16

    Common share information:
      Basic shares outstanding       234.0   233.5     233.8   230.3
      Diluted shares                 271.3   233.7     268.8   233.7
      Diluted shares for adjusted
       income (loss) per share from
       continuing operations         234.0   233.7     233.8   233.7

    See end of press release for footnote explanations



                         Huntsman Corporation
                           Segment Results

                           Three months ended       Six months ended
                                 June 30,               June 30,
    In millions             2009         2008       2009         2008
                           ------       ------     ------       ------
    Segment Revenues:
      Polyurethanes          $695       $1,161     $1,295       $2,163
      Advanced Materials      255          427        512          806
      Textile Effects         179          262        331          505
      Performance Products    482          725        982        1,356
      Pigments                254          321        450          606
      Eliminations and
       other                    1            -        (11)           -
                           ------       ------     ------       ------
        Total              $1,866       $2,896     $3,559       $5,436
                           ======       ======     ======       ======

    Segment EBITDA(3):
      Polyurethanes           $86         $148       $112         $280
      Advanced Materials       (1)          46          9           86
      Textile Effects         (20)           4        (31)           3
      Performance Products     37           51        118          104
      Pigments                (26)           8        (55)          18
      Corporate and other     802          (54)       751         (117)
      Discontinued
       operations(1)           (4)           7          -            6
                           ------       ------     ------       ------
              Total          $874         $210       $904         $380
                           ======       ======     ======       ======

    Segment Adjusted
     EBITDA(3):
      Polyurethanes           $87         $148       $114         $280
      Advanced Materials       14           46         24           86
      Textile Effects         (10)           4        (21)           4
      Performance Products     37           51        118          104
      Pigments                  4            8        (12)          19
      Corporate and other     (36)         (47)       (77)         (95)
                           ------       ------     ------       ------
        Total                 $96         $210       $146         $398
                           ======       ======     ======       ======



                            Three months ended        Six months ended
                                  June 30,                 June 30,
                               2009 vs. 2008            2009 vs. 2008
                          ----------------------   ----------------------
    Period-Over-Period       Average       Sales      Average       Sales
     Decrease             Selling Price   Volume   Selling Price   Volume
                          -------------   ------   -------------   ------

      Polyurethanes           (27)%        (18)%      (27)%        (18)%
      Advanced Materials      (10)%        (34)%       (9)%        (30)%
      Textile Effects          (7)%        (27)%       (6)%        (30)%
      Performance
       Products (a)           (24)%        (13)%      (19)%        (12)%
      Pigments                 (7)%        (15)%       (5)%        (22)%
                              ---          ---        ---          ---
        Total Company         (22)%        (18)%      (20)%        (18)%
                              ---          ---        ---          ---

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

    See end of press release for footnote explanations

Three Months Ended June 30, 2009 Compared to Three Months Ended June 30, 2008

Revenues for the three months ended June 30, 2009 decreased to $1,866 million from $2,896 million during the same period in 2008. Revenues decreased primarily due to lower sales volumes and lower average selling prices in all of our segments.

For the three months ended June 30, 2009, EBITDA was $874 million compared to $210 million in the same period in 2008. Adjusted EBITDA from continuing operations for the three months ended June 30, 2009 was $96 million compared to $210 million for the same period in 2008.

Polyurethanes

The decrease in revenues in the Polyurethanes segment for the three months ended June 30, 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 Europe and the Americas whereas sales volumes increased in Asia. Effects of the worldwide economic slowdown continue to affect global demand. MDI average selling prices decreased primarily due to competitive pressures, lower raw material costs and the strength of the U.S. dollar against the Euro. PO and MTBE sales volumes decreased as a result of the worldwide economic slowdown, 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 partially offset by higher MTBE margins.

Advanced Materials

The decrease in revenues in the Advanced Materials segment for the three months ended June 30, 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 lower raw material costs in our base resins market and the strength of the U.S. dollar against major European currencies in our formulations and specialty components markets. The decrease in EBITDA was primarily due to lower sales volumes and higher restructuring costs, partially offset by lower raw material and operating fixed costs. During the three months ended June 30, 2009 and 2008, our Advanced Materials segment recorded restructuring and plant closing charges of $15 million and nil, respectively.

Textile Effects

The decrease in revenues in the Textile Effects segment for the three months ended June 30, 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 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 average local currency selling prices were higher in Asia and the Americas. The decrease in EBITDA was primarily due to lower sales volumes and higher restructuring costs, partially offset by lower raw material and fixed costs. During the three months ended June 30, 2009 and 2008, our Textile Effects segment recorded restructuring and plant closing charges of $10 million and nil, respectively.

Performance Products

The decrease in revenues in the Performance Products segment for the three months ended June 30, 2009 compared to the same period in 2008 was primarily due to lower average selling prices and lower sales volumes. Average selling prices decreased in response to lower raw material costs and the strength of the U.S. dollar against major European currencies, and the Australian dollar. Sales volumes decreased across all product lines primarily due to the worldwide economic slowdown. The decrease in EBITDA was primarily due to lower sales volumes, partially offset by higher margins as raw materials costs fell faster than average selling prices.

Pigments

The decrease in revenues in the Pigments segment for the three months ended June 30, 2009 compared to the same period in 2008 was primarily 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 was primarily due to lower sales volumes and higher restructuring and plant closing costs partially offset by lower fixed costs. During the three months ended June 30, 2009 the Pigments segment recorded restructuring, impairment and plant closing costs of $30 million compared to nil for the same period in 2008.

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, income and expense associated with the terminated merger and related litigation, income and expense attributable to noncontrolling interests, unallocated restructuring costs, the extraordinary gain on the acquisition of a business and other non-operating income and expense. For the three months ended June 30, 2009 the net effect of these items was income of $802 million compared to a loss of $54 million in the comparable period of 2008. The increase in EBITDA from these items was primarily the result of an $848 million increase in income associated with the terminated merger and related litigation ($844 million income in the 2009 period compared to $4 million expense in the 2008 period). Further, EBITDA increased as a result of a $3 million increase in income attributable to noncontrolling interests, a $13 million increase in unallocated foreign exchange gains ($7 million in gains in the 2009 period compared to $6 million in losses in the 2008 period), and a $6 million increase in earnings from our Australia styrencis business ($2 million earnings in the 2009 period compared to a $4 million loss in the 2008 period). The increases in EBITDA were partially offset by a $6 million increase in restructuring charges during the 2009 period and a $9 million gain on the Textile Effects Acquisition in the 2008 period.

Income Taxes

During the three months ended June 30, 2009, we recorded $311 million of income tax expense compared to $21 million of income tax expense in the same period of 2008. For the second quarter of 2009, we recorded tax expense of $313 million related to the $844 million of income related to the settlement of our litigation in Texas with Credit Suisse and Deutsche Bank. We expect to pay approximately $30 million in cash taxes primarily related to foreign taxable income from continuing operations in 2009, in addition to the estimated $185 million of cash taxes associated with the settlement of our litigation in Texas with Credit Suisse and Deutsche Bank.

Liquidity, Capital Resources and Outstanding Debt

As of June 30, 2009, we had $2,957 million of combined cash and unused borrowing capacity compared to $1,291 million at December 31, 2008.

On June 22, 2009, we reached an agreement with Credit Suisse and Deutsche Bank to settle our claims against them in Texas state court for, among other things, fraud and tortious interference in connection with our terminated merger agreements with Basell and Hexion Specialty Chemicals, Inc. Under the terms of the settlement agreement, Credit Suisse and Deutsche Bank provided to us:

    --  $632 million in cash
    --  $500 million senior secured term loan financing, 7 year term at LIBOR +
        2.25%

    --  $600 million unsecured note financing, 7 year term at 5.5%

We expect to pay approximately $185 million of cash taxes associated with the bank litigation settlement. Following the settlement, we redeemed all ($296 million principal amount) of our outstanding 11.625% senior secured notes due 2010 and all ($198 million principal amount) of outstanding 11.5% senior notes due 2012. The total redemption payments, excluding accrued interest, were a combined total of $509 million, including principal of $494 million and call premiums of $15 million. This debt reduction which will be reflected in our balance sheet as of September 30, 2009, eliminates all meaningful debt maturities until 2013.

During the second quarter of 2009, our primary working capital (accounts receivable including our off balance sheet accounts receivable securitization program, inventory and accounts payable) decreased providing a cash benefit to us of $165 million. Total capital expenditures were $39 million during the second quarter of 2009 compared to $115 million for the same period in 2008. We expect to spend approximately $215 million on capital expenditures in 2009 compared to $418 million in 2008.

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 plus interest as presently due and unpaid under our insurance policy as of June 30, 2009. We expect that the settlement of insurance claims will continue during 2009. Binding arbitration to settle these claims is expected to occur in November of 2009. Any additional anticipated recoveries are expected to be used to repay secured debt.

    Below is our outstanding debt:

                                        June 30,    December 31,
    In millions                           2009          2008
                                        --------   ------------
    Debt:
        Senior Credit Facilities          $1,963        $1,540
        Secured Notes                        295           295
        Senior Notes                         623           198
        Subordinated Notes                 1,281         1,285
        Other Debt                           283           329
        Convertible Notes                    236           235
                                          ------        ------
    Total Debt                             4,681         3,882
                                          ------        ------

    Total Cash                             2,301           662
                                          ------        ------

    Net Debt                              $2,380        $3,220
                                          ======        ======

    Off-balance sheet accounts receivable
      securitization program                $363          $446


                            Huntsman Corporation
                        Reconciliation of Adjustments

                                            Net Income
                                             (Loss)           Diluted
                                         Attributable to      Income
                                             Huntsman         (Loss)
                              EBITDA       Corporation      Per Share
                           ------------  ----------------   -----------
                           Three months   Three months     Three months
    In millions,               ended          ended           ended
     except per share         June 30,       June 30,        June 30,
     amounts                2009  2008     2009     2008    2009   2008
    ------------------      ----   ----    ----     ----    ----  -----

    GAAP(4)                 $874  $210     $406      $24   $1.51  $0.10
    Adjustments:
      Loss on accounts
       receivable
       securitization
       program                 6     5        -        -       -      -
      Unallocated foreign
       currency (gain) loss   (7)    6        3        4    0.01   0.02
      Other restructuring,
       impairment and plant
       closing costs          63     1       55        2    0.24   0.01
      (Income) expenses
       associated with the
       Terminated Merger
       and related
       litigation           (844)    4     (531)       4   (2.27)  0.02
      Loss (income) from
       discontinued
       operations, net of
       tax(1)                  4    (7)       3       (5)   0.01  (0.02)
      Extraordinary gain on
       the acquisition of a
       business, net of
       tax(2)                  -    (9)       -       (9)      -  (0.04)
                             ---  ----     ----      ---  ------  -----
    Adjusted continuing
     operations(4)           $96  $210     $(64)     $20  $(0.27) $0.09
                                                          ------  -----

    Discontinued
     operations              $(4)   $7      $(3)      $5  $(0.01) $0.02
      Loss (gain) on
       disposition of
       assets                  4    (7)       3       (5)   0.01  (0.02)
                             ---  ----     ----      ---  ------  -----
    Adjusted discontinued
     operations(1)            $-    $-       $-       $-      $-     $-



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

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



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

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

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

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



                                             Net Income
                                              (Loss)             Diluted
                                          Attributable To        Income
                                              Huntsman           (Loss)
                               EBITDA       Corporation        Per Share
                         ----------------  ----------------  ----------------
    In millions,         Six months ended  Six months ended  Six months ended
     except per share          June 30,        June 30,          June 30,
     amounts                 2009  2008      2009    2008     2009     2008
    -----------------        ----  ----      ----    ----     ----    -----

    GAAP(4)                  $904  $380      $116     $31    $0.47    $0.13
    Adjustments:
      Loss on accounts
       receivable
       securitization
       program                 10     9         -       -        -        -
      Unallocated foreign
       currency (gain) loss    (9)   10         3       5     0.01     0.02
      Other restructuring,
       impairment and plant
       closing costs           77     5        69       5     0.30     0.02
      (Income) expenses
       associated with the
       Terminated Merger
       and related
       litigation            (837)    9      (527)      9    (2.25)    0.04
      Acquisition related
       expenses                 1     -         1       -        -        -
      Income from
       discontinued
       operations, net of
       tax(1)                   -    (6)        -      (4)       -    (0.02)
      Extraordinary gain on
       the acquisition of a
       business, net of
       tax(2)                   -    (9)        -      (9)       -    (0.04)
                             ----  ----     -----     ---   ------    -----
    Adjusted continuing
     operations(4)           $146  $398     $(338)    $37   $(1.45)   $0.16
                                                            ------    -----

      UK tax valuation
       allowance                -     -       146       -     0.62        -
                             ----  ----     -----     ---   ------    -----
    Adjusted continuing
     operations (excluding
     UK tax valuation
     allowance)              $146  $398     $(192)    $37   $(0.82)   $0.16
                                                            ------    -----

    Discontinued
     operations                $-    $6        $-      $4       $-    $0.02
      Gain on disposition of
       assets                   -    (6)        -      (4)       -    (0.02)
                             ----  ----     -----     ---   ------    -----
    Adjusted discontinued
     operations(1)             $-    $-        $-      $-       $-       $-

    See end of press release for footnote explanations

Conference Call Information

We will hold a conference call to discuss our second quarter 2009 financial results on Thursday, August 6, 2009 at 10:00 a.m. ET.

    Call-in number for U.S. participants:           (888) 713 - 4215
    Call-in number for international participants:  (617) 213 - 4867
    Participant access code:                        60194702

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=PLTBWWR78

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 August 6, 2009 and ending August 13, 2009.

    Call-in numbers for the replay:
      Within the U.S.:        (888) 286 - 8010
      International:          (617) 801 - 6888
    Access code for replay:   50208849

About Huntsman:

Huntsman 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 June 30, 2009 and 2008 was nil and $9 million
         respectively 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; income and expense associated with the terminated merger and
         related litigation; 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  Six months
                                                     ended       ended
                                                    June 30,    June 30,
                                                  2009  2008  2009 2008
                                                  ----  ----  ---- ----

         Net (loss) income from discontinued
          operations, net of tax                   $(3)   $5    $-   $4
           Income tax (benefit) expense             (1)    2     -    2
                                                  ----  ----  ---- ----
         EBITDA from discontinued operations        (4)    7     -    6
           Loss (gain) on disposition of assets      4    (7)    -   (6)
                                                  ----  ----  ---- ----
         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; income and expense associated with the
         terminated merger and related litigation; 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.

    (4)  Diluted income (loss) per share for GAAP net income (loss)
         attributable to Huntsman Corporation and for adjusted net income
         (loss) attributable to Huntsman Corporation is calculated using the
         following information:



                                                 Three months  Six months
                                                    ended         ended
                                                   June 30,      June 30,
         In millions, except per share amounts   2009   2008   2009   2008
         -------------------------------------  ------  ----- ------  -----

         GAAP
           Net income attributable to
            Huntsman Corporation                  $406    $24   $116    $31
           Convertible notes interest
            expense, net of tax                      5      -      9      -
                                                ------  ----- ------  -----
           Net income attributable to
            Huntsman Corporation and
            assumed conversion of notes           $411    $24   $125    $31
                                                ======  ===== ======  =====

           Diluted shares                        271.3  233.7  268.8  233.7

           Diluted income per share              $1.51  $0.10  $0.47  $0.13

         Adjusted continuing operations
           Net (loss) income attributable
            to Huntsman Corporation               $(64)   $20  $(338)   $37
           Convertible notes interest
            expense, net of tax                      -      -      -      -
                                                ------  ----- ------  -----
           Net (loss) income attributable
            to Huntsman Corporation and
            assumed conversion of notes           $(64)   $20  $(338)   $37
                                                ======  ===== ======  =====

           Diluted shares                        234.0  233.7  233.8  233.7

           Diluted (loss) income per share      $(0.27) $0.09 $(1.45) $0.16

SOURCE Huntsman Corporation


 
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