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Huntsman Releases Second Quarter 2010 Results

Please Click here for the PDF version of this release IMPROVED DEMAND LEADS TO SECOND QUARTER EARNINGS OF: $116 MILLION IN NET INCOME AND $257 MILLION IN ADJUSTED EBITDA

THE WOODLANDS, Texas, Aug 05, 2010 /PRNewswire via COMTEX/ --

(NYSE: HUN)

 

Second Quarter 2010 Highlights

 

  • Revenues for the second quarter of 2010 were $2,343 million, an increase of 27% compared to $1,846 million for the same period in 2009 and an increase of 12% compared to $2,094 million for the first quarter of 2010.
  • Adjusted EBITDA for the second quarter of 2010 was $257 million compared to $93 million for the same period in 2009 and $123 million for the first quarter of 2010.
  • Net income attributable to Huntsman Corporation for the second quarter of 2010 was $114 million or $0.47 per diluted share. This compares to net income attributable to Huntsman Corporation of $406 million or $1.51 per diluted share for the same period in 2009 (including $531 million of net income or $2.27 per diluted share related to our terminated merger and related litigation) and $172 million loss or $0.73 loss per diluted share for the first quarter of 2010.
  • Adjusted net income for the second quarter of 2010 was $75 million or $0.31 per diluted share. This compares to an adjusted net loss of $66 million or $0.28 loss per diluted share for the same period in 2009 and adjusted net loss of $16 million or $0.07 loss per diluted share for the first quarter of 2010.
  • Adjusted net income and adjusted EBITDA for the second quarter 2010 includes a non-recurring $15 million pre-tax benefit to appropriately reflect our investment in the Sasol-Huntsman maleic anhydride joint venture. Adjusted net income also includes a $15 million pre-tax one time reduction to interest expense related to a cross currency swap. The combined effect of these non-recurring items was approximately $0.09 per diluted share.

 

Summarized earnings are as follows:

                                       Three months
                                      ended June 30,
                                      --------------
    In millions, except per                                 March 31,
     share amounts                  2010         2009          2010
    -----------------------         ----         ----      ----------

    Net income (loss)
     attributable to
     Huntsman Corporation           $114         $406            $(172)
    Adjusted net income
     (loss)(1)                       $75         $(66)            $(16)

    Diluted income (loss)
     per share                     $0.47        $1.51           $(0.73)
    Adjusted diluted income
     (loss) per share(1)           $0.31       $(0.28)          $(0.07)

    EBITDA(1)                       $331         $874             $(55)
    Adjusted EBITDA(1)              $257          $93             $123

                                      Six months ended
                                          June 30,
                                      ----------------
    In millions, except per
     share amounts                   2010          2009
    -----------------------          ----          ----

    Net income (loss)
     attributable to
     Huntsman Corporation            $(58)         $116
    Adjusted net income
     (loss)(1)                        $59         $(333)

    Diluted income (loss)
     per share                     $(0.25)        $0.47
    Adjusted diluted income
     (loss) per share(1)            $0.25        $(1.42)

    EBITDA(1)                        $276          $904
    Adjusted EBITDA(1)               $380          $150

    See end of press release for footnote explanations

Recent Highlights

 

  • On April 26, 2010, we prepaid $164 million of bank term debt.
  • On June 22, 2010, we prepaid $110 million of bank term debt. The pre-payment was equivalent to the amount we received from our reinsurance carriers in settlement of our unpaid claims arising out of the April 29, 2006 fire at our Port Arthur, Texas, olefins facility.

 

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

"The second quarter of 2010 was a strong quarter for us, the combination of a number of conditions resulted in adjusted earnings we haven't seen since 2007. We saw strong underlying demand for our products as volumes grew across all of our businesses compared to the prior year as well as the prior quarter. We increased selling prices to offset recent pressure in raw material costs. In addition, the benefits of our successful cost saving efforts implemented in 2009 are evident in the bottom line."

He continued, "The third quarter is traditionally slower than the second within the chemical industry; notwithstanding this, we believe there is still significant long term upside to our business earnings. North American and European economies, which represent approximately two thirds of our volume, still show relatively modest growth. We continue to have idle capacity in many of our products that will be more fully utilized as demand improves. We are excited about the future of HUN and will continue our efforts to improve earnings in every division of the company."

                                        Huntsman Corporation
                                          Operating Results


                                    Three months ended   Six months ended
                                             June 30,            June 30,
    In millions, except per share
     amounts                          2010      2009     2010    2009
    -----------------------------     ----      ----     ----    ----

    Revenues                        $2,343    $1,846   $4,437  $3,526
    Cost of goods sold               1,958     1,613    3,771   3,144
                                     -----     -----    -----   -----
    Gross profit                       385       233      666     382
    Operating expenses                 241       233      497     455
    Restructuring, impairment and
     plant closing costs                17        62       20      76
                                       ---       ---      ---     ---
    Operating income (loss)            127       (62)     149    (149)
    Interest expense, net              (43)      (58)    (104)   (113)
    Loss on accounts receivable
     securitization programs             -        (6)       -     (10)
    Equity in income of investment
     in unconsolidated affiliates       16         1       17       2
    Loss on early extinguishment of
     debt                               (7)        -     (162)      -
    (Expenses) income associated
     with the terminated merger and
     related litigation                 (1)      844       (1)    837
    Other income                         1         -        1       -
                                       ---       ---      ---     ---
    Income (loss) before income
     taxes                              93       719     (100)    567
    Income tax expense                 (39)     (311)      (5)   (449)
                                       ---      ----      ---    ----
    Income (loss) from continuing
     operations                         54       408     (105)    118
    Income (loss) from discontinued
     operations, net of tax(2)          62        (2)      49      (6)
                                       ---       ---      ---     ---
    Net income (loss)                  116       406      (56)    112
    Less net (income) loss
     attributable to noncontrolling
     interests                          (2)        -       (2)      4
    Net income (loss) attributable
     to Huntsman Corporation          $114      $406     $(58)   $116
                                      ====      ====     ====    ====


    Net income (loss) attributable
     to Huntsman Corporation          $114      $406     $(58)   $116
    Interest expense, net               43        58      104     113
    Income tax expense from
     continuing operations              39       311        5     449
    Income tax expense (benefit)
     from discontinued
     operations(1)(2)                   37        (1)      29       -
    Depreciation and amortization
     of continuing operations           97        99      195     225
    Depreciation and amortization
     of discontinued operations          1         1        1       1
                                       ---       ---      ---     ---
    EBITDA(1)                         $331      $874     $276    $904

    Adjusted EBITDA(1)                $257       $93     $380    $150

    Basic income (loss) per share    $0.48     $1.74   $(0.25)  $0.50
    Diluted income (loss) per share  $0.47     $1.51   $(0.25)  $0.47
    Adjusted diluted income (loss)
     per share(1)                    $0.31    $(0.28)   $0.25  $(1.42)

    Common share information:(3)
      Basic shares outstanding       236.4     234.0    235.6   233.8
      Diluted shares                 240.8     271.3    235.6   268.8
      Diluted shares for adjusted
       diluted income (loss) per
       share                         240.8     234.0    240.8   233.8



    See end of press release for footnote explanations

                                Huntsman Corporation
                                  Segment Results


                                    Three months ended        Six months ended
                                         June 30,                 June 30,
    In millions                    2010            2009    2010          2009
    -----------                    ----            ----    ----          ----

    Segment Revenues:
      Polyurethanes                $932            $695  $1,699        $1,295
      Performance Products          669             482   1,285           982
      Advanced Materials            320             255     611           512
      Textile Effects               213             179     408           331
      Pigments                      287             254     556           450
      Eliminations and other        (78)            (19)   (122)          (44)
                                    ---             ---    ----           ---

        Total                    $2,343          $1,846  $4,437        $3,526
                                 ======          ======  ======        ======

    Segment EBITDA(1):
      Polyurethanes                 $70             $86    $122          $112
      Performance Products          116              31     176            94
      Advanced Materials             52              (1)     85             9
      Textile Effects                (7)            (20)     (7)          (31)
      Pigments                       47             (26)     75           (55)
      Corporate, LIFO and other     (47)            806    (254)          780
      Discontinued operations(2)    100              (2)     79            (5)

              Total                $331            $874    $276          $904
                                   ====            ====    ====          ====

    Segment Adjusted EBITDA(1)
     :
      Polyurethanes                 $71             $87    $123          $114
      Performance Products          116              31     176            94
      Advanced Materials             52              14      83            24
      Textile Effects                 8             (10)      8           (21)
      Pigments                       49               4      78           (12)
      Corporate, LIFO and other     (39)            (33)    (88)          (49)
                                    ---             ---     ---           ---
        Total                      $257             $93    $380          $150
                                   ====             ===    ====          ====



    See end of press release for footnote explanations

                                  Three months ended June 30,
                                         2010 vs. 2009
                                         -------------
                                  Average Selling
    Period-Over-Period                Price(a)
                                 ----------------
                                              Foreign
      Increase (Decrease)    Local           Currency           Sales
                                           Translation
                            Currency          Impact          Volume(a)
                            --------      ------------        ---------

      Polyurethanes               11%                 0%             17%
      Performance Products        12%                 0%             27%
      Advanced Materials(b)        6%                 0%             25%
      Textile Effects              6%                 2%             10%
      Pigments                     7%               (1)%              7%
        Total Company(b)           7%                 0%             19%
                                 ---                ---             ---

                                   Six months ended June 30,
                                         2010 vs. 2009
                                         -------------
                                  Average Selling
    Period-Over-Period                Price(a)
                                 ----------------
                                              Foreign
      Increase (Decrease)    Local           Currency          Sales
                                           Translation
                            Currency          Impact         Volume(a)
                            --------      ------------       ---------

      Polyurethanes               21%                 1%             3%
      Performance Products         6%                 2%            24%
      Advanced Materials(b)      (2)%                 2%            26%
      Textile Effects              5%                 3%            14%
      Pigments                     4%                 1%            18%
        Total Company(b)           9%                 2%            13%
                                 ---                ---            ---

    (a) Excludes revenues and sales volumes from tolling and by-products
    (b) Excludes APAO business sold July 31, 2009

Three Months Ended June 30, 2010 Compared to Three Months Ended June 30, 2009

Revenues for the three months ended June 30, 2010 increased to $2,343 million from $1,846 million for the same period in 2009. Revenues increased due to higher sales volumes and higher selling prices in all divisions. For the three months ended June 30, 2010, Adjusted EBITDA was $257 million compared to $93 million for the same period in 2009.

Polyurethanes

The increase in revenues in our Polyurethanes division for the three months ended June 30, 2010 compared to the same period in 2009 was primarily due to higher average selling prices and higher sales volumes. Average selling prices for MDI and PO/MTBE increased in response to higher raw material costs. MDI sales volumes increased as a result of improved demand in all regions and across all major markets with the exception of appliances, while PO/MTBE sales volumes increased generally due to improved demand. The decrease in Adjusted EBITDA was primarily due to lower PO/MTBE margins partially offset by higher MDI margins.

Performance Products

The increase in revenues in our Performance Products division for the three months ended June 30, 2010 compared to the same period in 2009 was due to higher average selling prices and higher sales volumes. Average selling prices increased across almost all product groups primarily in response to higher raw materials costs. Sales volumes increased primarily due to higher demand across all product groups and additional sales of ethylene glycol which had previously been produced under tolling arrangements. The increase in Adjusted EBITDA was primarily due to higher sales volumes and higher contribution margins. In addition, equity income from investment in unconsolidated affiliates for the three months ended June 30, 2010 increased to $16 million compared to $1 million in the 2009 period. During the second quarter of 2010, we recorded a non-recurring $15 million credit to appropriately reflect our investment in the Sasol-Huntsman GmbH and Co. KG Maleic Anhydride joint venture.

Advanced Materials

The increase in revenues in our Advanced Materials division for the three months ended June 30, 2010 compared to the same period in 2009 was due to higher sales volumes and higher average selling prices. Sales volumes increased in all regions of the world and across almost all product groups primarily due to the worldwide economic recovery. Average selling prices increased in our base resins business primarily in response to higher raw material costs and reduced product availability in the epoxy resin market, partially offset by lower average selling prices in our specialty components and formulations markets primarily as a result of changes in our product mix and competitive market pressure. The increase in Adjusted EBITDA was primarily due to higher sales volumes, higher contribution margins and lower fixed costs.

Textile Effects

The increase in revenues in our Textile Effects division for the three months ended June 30, 2010 compared to the same period in 2009 was due to higher sales volumes and higher average selling prices. Sales volumes increased across all business lines and in all regions primarily due to the worldwide economic recovery. Average selling prices increased primarily due to favorable changes in product mix and the strength of the Indian Rupee and Brazilian Real against the U.S. dollar. The increase in Adjusted EBITDA was primarily due to higher sales volumes and higher contribution margins partially offset by higher fixed costs in part due to our second quarter 2009 acquisition of Baroda.

Pigments

The increase in revenues in our Pigments division for the three months ended June 30, 2010 compared to the same period in 2009 was due to higher average selling prices and higher sales volumes. Average selling prices increased primarily as a result of price increase initiatives in all regions of the world partially offset by the strength of the U.S. dollar against major European currencies. Sales volumes increased primarily due to demand recovery in Europe and North America. The increase in Adjusted EBITDA in our Pigments division was primarily due to higher contribution margins, higher sales volumes and the benefits of recent restructuring efforts.

Corporate, LIFO and Other

Corporate, LIFO and other includes unallocated foreign exchange gains and losses, unallocated corporate overhead, loss on our accounts receivable securitization program, income (expenses) associated with the terminated merger with Hexion and related litigation, loss on early extinguishment of debt, income (loss) attributable to non-controlling interests, unallocated restructuring costs, LIFO inventory valuation reserve adjustments and non-operating income and expense. The decrease in Adjusted EBITDA from Corporate, LIFO and Other for the three months ended June 30, 2010 compared to the same period in 2009 resulted primarily from an increase of LIFO inventory valuation expense of $3 million.

Income Taxes

During the three months ended June 30, 2010, we recorded income tax expense of $39 million compared to $311 million of income tax expense in the same period of 2009. Our adjusted effective tax rate for the second quarter of 2010 was approximately 40%. We have tax valuation allowances in countries such as Switzerland and the United Kingdom where our Textile Effects and Pigments businesses have meaningful operations. As these businesses return to greater levels of profitability we expect these tax valuation allowances to eventually be removed. In the meantime, we expect our income tax rate to be fairly volatile. We expect our long term effective income tax rate to be approximately 30 - 35%. Unusual income tax rates caused by valuation allowances have no impact on our cash taxes. During the second quarter of 2010 we paid $2 million in cash for income taxes. We expect our cash tax rate to continue to be significantly less than our effective income tax rate.

Liquidity, Capital Resources and Outstanding Debt

As of June 30, 2010, we had $1,185 million of combined cash and unused borrowing capacity compared to $2,510 million at December 31, 2009. The decrease from year end was primarily attributable to the reduction in unused bank credit facilities of $450 million, the repurchase of convertible notes of $382 million, repayment of $185 million of bank term debt, and an increase in primary working capital of $340 million.

Beginning January 1, 2010, as a result of changes in accounting guidelines outstanding borrowings related to the sales of accounts receivable under our accounts receivable programs are accounted for as secured borrowings. Excluding the impact of this change, our primary working capital (accounts receivable, inventory and accounts payable) increased due in part to increased demand, higher prices, partially offset by the strength of the U.S. dollar against major European currencies. Total capital expenditures were $41 million during the second quarter of 2010 compared to $39 million for the same period in 2009. We expect to spend between $225 and $250 million on capital expenditures in 2010.

On April 26, 2010, we prepaid $164 million of bank term debt. On June 22, 2010, we prepaid $110 million of bank term debt. The June pre-payment was equivalent to the amount we received in the second quarter from our reinsurance carriers in settlement of our claims as a result of the April 29, 2006, fire at our Port Arthur, Texas, olefins facility.

Below is our outstanding debt:

                                                  June
                                                   30,         December 31,
      In millions                                  2010           2009(a)
      -----------                                  ----           -------

      Debt:
          Senior Credit Facilities               $1,685              $1,968
          Accounts Receivable Programs(a)           226                 254
          Senior Notes                              442                 434
          Subordinated Notes                      1,234               1,294
          Other Debt                                280                 280
          Convertible Notes                           -                 236
                                                    ---                 ---
      Total Debt -excluding
       affiliates                                 3,867               4,466
                                                  -----               -----

      Total Cash                                    773               1,750
                                                    ---               -----

      Net Debt- excluding affiliates             $3,094              $2,716
                                                 ======              ======




    (a) Effective January 1, 2010, as a result of changes in accounting
    guidelines, our off-balance
    sheet accounts receivable securitization programs are now reported on
    balance sheet as secured
    debt.  December 31, 2009 figures are presented on a pro-forma basis
    to reflect this change.

                                                   Huntsman Corporation
                                               Reconciliation of Adjustments

                                                        Net Income (Loss)
                                                           Attributable to
                                         EBITDA           Huntsman Corporation
                                         ------          --------------------
                                  Three months ended      Three months ended
                                        June 30,               June 30,
    In millions, except per
     share amounts                2010            2009  2010           2009
    -----------------------       ----            ----  ----           ----

    GAAP                          $331            $874  $114           $406
    Adjustments:
      Loss on accounts receivable
       securitization programs       -               6     -              -
      Unallocated foreign
       currency (gain) loss          -              (7)   (4)             3
      Loss on early
       extinguishment of debt        7               -     4              -
      Other restructuring,
       impairment and plant
       closing costs                17              62    17             54
      Expenses (income)
       associated with the
       terminated merger and
       related litigation            1            (844)    1           (531)
      Discount amortization on
       settlement financing
       associated with the
       terminated merger             -               -     4              -
      Acquisition related
       expenses                      1               -     1              -
      (Income) loss from
       discontinued operations,
       net of tax(2)              (100)              2   (62)             2

    Adjusted(1)                   $257             $93   $75           $(66)

    Discontinued operations       $100             $(2)  $62            $(2)
      Restructuring, impairment
       and plant closing costs       -               1     -              1
      Loss on disposition of
       assets                        4               4     3              3
      Gain on fire insurance
       settlement                 (110)              -   (71)             -

    Adjusted discontinued
     operations(1)(2)              $(6)             $3   $(6)            $2

    Total -adjusted continuing
     and discontinued
     operations                   $251             $96   $69           $(64)
                                  ----             ---   ---           ----

                                                  Diluted Income (Loss)
                                                        Per Share
                                                        ---------
                                                    Three months ended
                                                         June 30,
    In millions, except per share amounts          2010            2009
    -------------------------------------          ----            ----

    GAAP                                          $0.47           $1.51
    Adjustments:
      Loss on accounts receivable securitization
       programs                                       -               -
      Unallocated foreign currency (gain) loss    (0.02)           0.01
      Loss on early extinguishment of debt         0.02               -
      Other restructuring, impairment and plant
       closing costs                               0.07            0.23
      Expenses (income) associated with the
       terminated merger and related litigation       -           (2.27)
      Discount amortization on settlement
       financing associated with the terminated
       merger                                      0.02               -
      Acquisition related expenses                    -               -
      (Income) loss from discontinued
       operations, net of tax(2)                  (0.26)           0.01

    Adjusted(1)                                   $0.31          $(0.28)
                                                  -----          ------

    Discontinued operations                       $0.26          $(0.01)
      Restructuring, impairment and plant
       closing costs                                  -               -
      Loss on disposition of assets                0.01            0.01
      Gain on fire insurance settlement           (0.29)              -

    Adjusted discontinued operations(1)(2)       $(0.02)          $0.01

    Total -adjusted continuing and
     discontinued operations                      $0.29          $(0.27)
                                                  -----          ------

                                                       Three months ended
                                                            March 31,
    In millions                                                       2010
    -----------                                                       ----

    Net loss attributable to Huntsman Corporation                     (172)
    Interest expense, net                                               61
    Income tax benefit from continuing operations                      (34)
    Income tax benefit from discontinued operations(2)                  (8)
    Depreciation and amortization                                       98


    EBITDA(1)                                                         $(55)


                                                    Net Income (Loss)
                                                  Attributable to Huntsman
                                   EBITDA                    Corporation
                             Three months ended   Three months ended March
                                  March 31,                     31,
    In millions, except
     per share amounts                      2010                     2010
    -------------------                     ----                     ----

    GAAP                                    $(55)                   $(172)
    Adjustments:
      Unallocated foreign
       currency gain                          (1)                      (6)
      Loss on early
       extinguishment of
       debt                                  155                      143
      Other restructuring,
       impairment and plant
       closing costs                           3                        2
      Discount amortization
       on settlement
       financing associated
       with the terminated
       merger                              -                 4
      Loss from discontinued
       operations, net of
       tax(2)                                 21                       13

    Adjusted                                $123                     $(16)

    Discontinued
     operations                             $(21)                    $(13)
      Other restructuring,
       impairment and plant
       closing costs                           5                        3
      Loss on disposition of
       assets                                  8                        5
      Gain on fire insurance
       settlement                             (7)                      (4)

    Adjusted discontinued
     operations(2)                          $(15)                     $(9)

    Total -adjusted
     continuing and
     discontinued
     operations                             $108                     $(25)
                                            ----                     ----

                                           Diluted Income (Loss)
                                                 Per Share
                                            Three months ended
                                                 March 31,
    In millions, except per share
     amounts                                                2010
    -----------------------------                           ----

    GAAP                                                  $(0.73)
    Adjustments:
      Unallocated foreign currency
       gain                                                (0.03)
      Loss on early extinguishment
       of debt                                              0.61
      Other restructuring,
       impairment and plant closing
       costs                                                0.01
      Discount amortization on
       settlement financing
       associated with the
       terminated merger                                    0.02
      Loss from discontinued
       operations, net of tax(2)                            0.06

    Adjusted                                              $(0.07)
                                                          ------

    Discontinued operations                               $(0.06)
      Other restructuring,
       impairment and plant closing
       costs                                                0.01
      Loss on disposition of assets                         0.02
      Gain on fire insurance
       settlement                                          (0.02)

    Adjusted discontinued
     operations(2)                                        $(0.04)

    Total -adjusted continuing
     and discontinued operations                          $(0.11)
                                                          ------

                                                   Net Income (Loss)
                                                      Attributable To
                               EBITDA               Huntsman Corporation
                               ------               --------------------
                          Six months ended         Six months ended June
                              June 30,                      30,
    In millions,
     except per
     share
     amounts              2010         2009       2010             2009
    ------------          ----         ----       ----             ----

    GAAP(2)               $276         $904       $(58)            $116
    Adjustments:
      Loss on
       accounts
       receivable
       securitization
       program               -            10          -             -
      Unallocated
       foreign
       currency
       (gain) loss          (1)          (9)       (10)               3
      Loss on early
       extinguishment
       of debt             162            -        147                -
      Other
       restructuring,
       impairment
       and plant
       closing
       costs                 20          76          19             68
      Expenses
       (income)
       associated
       with the
       terminated
       merger and
       related
       litigation            1          (837)         1          (527)
      Discount
       amortization
       on
       settlement
       financing
       associated
       with the
       terminated
       merger               -             -           8            -
      Acquisition
       related
       expenses              1            1          1                1
      (Income) loss
       from
       discontinued
       operations,
       net of
       tax(2)              (79)          5          (49)            6

    Adjusted(1)(2)        $380         $150        $59            $(333)

    Discontinued
     operations            $79          $(5)       $49              $(6)
       Restructuring,
       impairment
       and plant
       closing
       costs                 5            1           3              1
      Loss on
       disposition
       of assets            12            -          8                -
      Gain on
       hurricane
       insurance
       settlement           (7)           -         (7)               -
      Gain on fire
       insurance
       settlement         (110)           -        (68)               -

    Adjusted
     discontinued
     operations(1)(2)     $(21)         $(4)      $(15)             $(5)

     Total -
      adjusted
      continuing
      and
      discontinued
      operations          $359          $146       $44           $(338)
                          ----         ----        ---            -----


                                                         Diluted Income
                                                             (Loss)
                                                           Per Share
                                                           ---------
                                                        Six months ended
                                                            June 30,
    In millions, except per share amounts              2010          2009
    -------------------------------------              ----          ----

    GAAP(2)                                          $(0.25)        $0.47
    Adjustments:
      Loss on accounts receivable
       securitization program                             -             -
      Unallocated foreign currency (gain)
       loss                                           (0.04)         0.01
      Loss on early extinguishment of debt             0.61             -
      Other restructuring, impairment and
       plant closing costs                             0.08          0.29
      Expenses (income) associated with the
       terminated merger and related
       litigation                                         -         (2.25)
      Discount amortization on settlement
       financing associated with the
       terminated merger                               0.03             -
      Acquisition related expenses                        -             -
      (Income) loss from discontinued
       operations, net of tax(2)                      (0.20)         0.03

    Adjusted(1)(2)                                    $0.25        $(1.42)
                                                      -----        ------

    Discontinued operations                           $0.20        $(0.03)
      Restructuring, impairment and plant
       closing costs                                   0.01             -
      Loss on disposition of assets                    0.03             -
      Gain on hurricane insurance settlement          (0.03)            -
      Gain on fire insurance settlement               (0.28)            -

    Adjusted discontinued operations(1)(2)           $(0.06)       $(0.02)

     Total -adjusted continuing and
      discontinued operations                         $0.18        $(1.45)
                                                      -----        ------

    See end of press release for footnote explanations

Conference Call Information

We will hold a conference call to discuss our 2010 second quarter results on Thursday, August 5, 2010 at 10:00 a.m. ET.

    Call-in number for U.S. participants:                  (888) 713 - 4213
    Call-in number for international
     participants:                                         (617) 213 - 4865
    Participant access code:                                       24187331


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=P4LNJY8PF

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 5, 2010 and ending August 12, 2010.

    Call-in numbers for the replay:
      Within the U.S.:        (888) 286 - 8010
      International:          (617) 801 - 6888
    Access code for
     replay:                          71378240


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 approximately 11,000 employees and operates from multiple locations worldwide. The Company had 2009 revenues of approximately $8 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. The company assumes no obligation to provide revisions to any forward-looking statements should circumstances change, except as otherwise required by applicable laws.

          We use EBITDA, Adjusted EBITDA, Adjusted EBITDA from discontinued
    (1)   operations, Adjusted net income 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 and
      Adjusted net income. 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) attributable to Huntsman
      Corporation is set forth in the operating results table above.

      Adjusted EBITDA 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; acquisition related expenses;
       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
      disposition of business/assets.  The reconciliation of Adjusted EBITDA
       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 fire insurance settlement; and (gain) loss
       on disposition of business/assets.
      The following table provides a reconciliation of Adjusted EBITDA from
       discontinued operations to income (loss)
      from discontinued operations:


                                          Three months ended Six months ended
                                               June 30,          June 30,
    In millions                            2010          2009  2010     2009
    -----------                            ----          ----  ----     ----

    Net income (loss) from discontinued
     operations, net of tax                 $62           $(2)  $49      $(6)
      Income tax expense (benefit)           37            (1)   29        -
      Depreciation and amortization           1             1     1        1
    EBITDA from discontinued operations     100            (2)   79       (5)
      Restructuring, impairment and plant
       closing costs                          -             1     5        1
      Loss on disposition of assets           4             4    12        -
      Gain on hurricane insurance
       settlement                             -             -    (7)       -
      Gain on fire insurance settlement    (110)            -  (110)       -
                                           ----           ---  ----      ---
    Adjusted EBITDA from discontinued
     operations                             $(6)           $3  $(21)     $(4)
                                            ===           ===  ====      ===


      Adjusted net income (loss) 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;
      discount amortization on settlement financing associated with the
       terminated merger; acquisition related
      expenses; 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 disposition of
      business/assets.   The reconciliation of adjusted net income (loss) 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 fire insurance settlement; and (gain) loss on
       the disposition of business/assets.
      The reconciliation of Adjusted net income (loss) from discontinued
       operations to net income (loss) attributable to
      Huntsman Corporation is set forth in the Reconciliation of Adjustments
       table above.

          On August 1, 2007, we completed the sale of our U.S. polymers
    (2)   business to Flint Hills Resources.  On November
      5, 2007, we completed the sale of our U.S. base chemicals business to
       Flint Hills Resources.  Results from these
      businesses are treated as discontinued operations.  Division EBITDA from
       discontinued operations only includes
      the results of our U.S. base chemicals and U.S. polymers businesses.
       During the first quarter 2010 we closed our
      Australian styrenics operations.

          Diluted income (loss) per share for GAAP net income (loss)
    (3)   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 June          ended June
                                              30,               30,
    In millions, except per share
     amounts                             2010     2009    2010        2009
    -----------------------------        ----     ----    ----        ----

    GAAP
      Net income (loss) attributable to
       Huntsman Corporation              $114     $406    $(58)       $116
      Convertible notes interest
       expense, net of tax                  -        5       -           9
      Net income (loss) attributable to
       Huntsman Corporation and assumed
       conversion of notes               $114     $411    $(58)       $125
                                         ====     ====    ====        ====

      Diluted shares                    240.8    271.3   235.6       268.8

      Diluted income (loss) per share   $0.47    $1.51  $(0.25)      $0.47

    Adjusted
      Net income (loss) attributable to
       Huntsman Corporation               $75     $(66)    $59       $(333)
      Convertible notes interest
       expense, net of tax                  -        -       -           -
      Net income (loss) attributable to
       Huntsman Corporation and assumed
       conversion of notes                $75     $(66)    $59       $(333)
                                          ===     ====     ===       =====

      Diluted shares                    240.8    234.0   240.8       233.8

      Diluted income (loss) per share   $0.31   $(0.28)  $0.25      $(1.42)


SOURCE Huntsman Corporation

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