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28.04.2022 06:00
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Huntsman Announces First Quarter 2022 Earnings; Over $200 million in Share Repurchases During the First Quarter
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PR Newswire
THE WOODLANDS, Texas, April 28, 2022
First Quarter Highlights
- First quarter 2022 net income of $240 million compared to net income of $100 million in the prior year period; first quarter 2022 diluted earnings per share of $1.04 compared to diluted earnings per share of $0.37 in the prior year period.
- First quarter 2022 adjusted net income of $256 million compared to adjusted net income of $147 million in the prior year period; first quarter 2022 adjusted diluted earnings per share of $1.19 compared to adjusted diluted earnings per share of $0.66 in the prior year period.
- First quarter 2022 adjusted EBITDA of $415 million compared to adjusted EBITDA of $289 million in the prior year period.
- First quarter 2022 adjusted EBITDA margin of 17% compared to adjusted EBITDA margin of 16% in the prior year period.
- First quarter 2022 net cash provided by operating activities from continuing operations was $85 million. Free cash flow from continuing operations was $16 million for the first quarter 2022 compared to an outflow of $114 million in the prior year period.
- Repurchased approximately 5.5 million shares for approximately $210 million in the first quarter 2022. During the first quarter of 2022, the Board approved an increased share repurchase authorization to $2 billion from $1 billion. The Company intends to repurchase approximately $1 billion in shares during 2022.
- The strong financial condition of the Company was reflected in the recent rating upgrades from Fitch to BBB on March 4, 2022 and S&P to BBB- on April 13, 2022.
| | | Three months ended | ||
| | | March 31, | ||
| In millions, except per share amounts | | 2022 | | 2021 |
| | | | | |
| Revenues | | $ 2,389 | | $ 1,837 |
| | | | | |
| Net income | | $ 240 | | $ 100 |
| Adjusted net income (1) | | $ 256 | | $ 147 |
| | | | | |
| Diluted income per share | | $ 1.04 | | $ 0.37 |
| Adjusted diluted income per share(1) | | $ 1.19 | | $ 0.66 |
| | | | | |
| Adjusted EBITDA(1) | | $ 415 | | $ 289 |
| | | | | |
| Net cash provided by (used in) operating activities from continuing operations | | $ 85 | | $ (16) |
| Free cash flow from continuing operations(2) | | $ 16 | | $ (114) |
| |
| See end of press release for footnote explanations and reconciliations of non-GAAP measures. |
THE WOODLANDS, Texas, April 28, 2022 /PRNewswire/ -- Huntsman Corporation (NYSE: HUN) today reported first quarter 2022 results with revenues of $2,389 million, net income of $240 million, adjusted net income of $256 million and adjusted EBITDA of $415 million.
Peter R. Huntsman, Chairman, President and CEO, commented:
"We started 2022 with positive momentum and are focused on further improvements through a deliberate value over volume strategy that includes our pricing initiatives, cost optimization programs, organic investments and when appropriate bolt-on acquisitions. We delivered on pricing in the first quarter and expanded our margins despite tremendous upward pressure on our raw material costs. The strength of our balance sheet was recognized by the recent upgrades from S&P to BBB- and Fitch to BBB.
Looking forward, our balance sheet strength as well as our expected cash flow gives us flexibility to invest for the future as well as return cash to shareholders today. The Board increased our dividend 13% in the first quarter for a total dividend increase of 70% since 2018. And, as we previously announced, the Board doubled the share repurchase authorization to $2 billion at the end of March, half of which we intend to spend in 2022. We are actively monitoring the many economic cross currents throughout the world but where we stand today, we expect continued strong overall results in the second quarter."
Segment Analysis for 1Q22 Compared to 1Q21
Polyurethanes
The increase in revenues in our Polyurethanes segment for the three months ended March 31, 2022 compared to the same period of 2021 was largely due to higher MDI average selling prices and slightly higher sales volumes. MDI average selling prices increased in all our regions. Sales volumes increased primarily due to stronger demand in all our regions. The increase in segment adjusted EBITDA was primarily due to higher MDI margins resulting from higher MDI pricing and slightly higher sales volumes, partially offset by higher raw material costs and lower earnings from our PO/MTBE joint venture in China.
Performance Products
The increase in revenues in our Performance Products segment for the three months ended March 31, 2022 compared to the same period of 2021 was primarily due to higher average selling prices and slightly higher sales volumes. Average selling prices increased primarily due to stronger demand in relation to the ongoing recovery from the global economic slowdown as well as in response to an increase in raw material costs. Sales volumes increased primarily due to stronger demand as well as favorable product mix changes aligned with our value-over-volume business strategy. The increase in segment adjusted EBITDA was primarily due to increased revenues and margins, partially offset by increased fixed costs.
Advanced Materials
The increase in revenues in our Advanced Materials segment for the three months ended March 31, 2022 compared to the same period in 2021 was primarily due to higher average selling prices, partially offset by lower sales volumes. Average selling prices increased across all markets largely in response to higher raw material, energy and logistics costs. Sales volumes decreased primarily due to deselection of lower margin base resins business. The increase in segment adjusted EBITDA was primarily due to higher sales prices and the benefit from the Gabriel Acquisition.
Textile Effects
The increase in revenues in our Textile Effects segment for the three months ended March 31, 2022 compared to the same period of 2021 was due to higher average selling prices, partially offset by a decrease in sales volumes. Average selling prices increased in response to higher direct costs. Sales volumes decreased primarily due to a deselection of certain volume as well as lower demand. The increase in segment adjusted EBITDA was primarily due to improved portfolio mix.
Corporate, LIFO and other
For the three months ended March 31, 2022, adjusted EBITDA from Corporate and other was a loss of $50 million unchanged from the same period of 2021.
Liquidity and Capital Resources
During the three months ended March 31, 2022, our free cash flow from continuing operations was a source of cash of $16 million as compared to a use of cash of $114 million in the prior year period. As of March 31, 2022, we had approximately $2.3 billion of combined cash and unused borrowing capacity.
During the three months ended March 31, 2022, we spent $69 million on capital expenditures as compared to $98 million in the same period of 2021. For 2022, we expect to spend approximately $300 million on capital expenditures.
Income Taxes
In the first quarter 2022, both our effective tax rate and our adjusted effective tax rate was 21%. We expect our 2022 adjusted effective tax rate to be approximately 22% to 24%.
Earnings Conference Call Information
We will hold a conference call to discuss our first quarter 2022 financial results on Thursday, April 28, 2022, at 10:00 a.m. ET.
Webcast link: https://services.choruscall.com/mediaframe/webcast.html?webcastid=KvyqXLON
Participant dial-in numbers:
Domestic callers: (877) 402-8037
International callers: (201) 378-4913
The conference call will be accompanied by presentation slides that will be accessible via the webcast link and Huntsman's investor relations website, www.huntsman.com/investors. Upon conclusion of the call, the webcast replay will be accessible via Huntsman's website.
Upcoming Conferences
During the second quarter 2022, a member of management is expected to present at:
Wells Fargo Industrials Conference on May 5, 2022
Key Banc Industrials and Basic Materials Conference on June 2, 2022
Stifel Cross Sector Insight Conference on June 8, 2022
Deutsche Bank Global Materials Conference on June 9, 2022
A webcast of the presentation, if applicable, along with accompanying materials will be available at www.huntsman.com/investors.
| Table 1 – Results of Operations | ||||
| | ||||
| | | Three months ended | ||
| | | March 31, | ||
| In millions, except per share amounts | | 2022 | | 2021 |
| | | | | |
| Revenues | | $ 2,389 | | $ 1,837 |
| Cost of goods sold | | 1,824 | | 1,445 |
| Gross profit | | 565 | | 392 |
| Operating expenses (credits) | | 261 | | 242 |
| Restructuring, impairment and plant closing costs | | - | | 24 |
| Operating income | | 304 | | 126 |
| Interest expense, net | | (14) | | (19) |
| Equity in income of investment in unconsolidated affiliates | | 15 | | 38 |
| Fair value adjustments to Venator investment and related loss on disposal | | (2) | | (19) |
| Other income, net | | 1 | | 7 |
| Income from continuing operations before income taxes | | 304 Werbung Mehr Nachrichten zur Huntsman Corp Aktie kostenlos abonnieren
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