Huntsman Releases First Quarter Results (5/19/09)

May 19, 2009

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Huntsman, The Woodlands, TX, has recently announced its first quarter results for 2009.

Revenues for the first quarter of 2009 were $1,693 million, a decrease of 33% compared to $2,540 million for the first quarter of 2008 and a decrease of 17% compared to $2,048 million for the fourth quarter of 2008.
As of March 31, 2009, we had $1,115 million of combined cash and unused borrowing capacity consisting of $473 million cash and $642 million available borrowings under our credit facilities. We generated positive cash flow through aggressive management of our primary working capital. This available liquidity uniquely positions our business during these challenging economic times.
Net loss attributable to Huntsman Corp. for the first quarter of 2009 was $290 million or $1.24 loss per diluted share compared to net income attributable to Huntsman Corp. of $7 million or $0.03 per diluted share for the same period in 2008 and net income attributable to Huntsman Corp. of $598 million or $2.53 per diluted share for the fourth quarter of 2008. Adjusted net loss from continuing operations attributable to Huntsman Corp. for the first quarter of 2009 was $274 million or $1.17 loss per diluted share including tax expense of $146 million or $0.62 per diluted share due to the establishment of a tax valuation allowance in the U.K. Excluding the tax valuation allowance the first quarter 2009 loss from continuing operations attributable to Huntsman Corp. was $128 million or $0.55 loss per diluted share. This adjusted net loss reflects a decrease compared to adjusted net income from continuing operations attributable to Huntsman Corp. of $17 million or $0.07 per diluted share for the same period in 2008 and adjusted net loss from continuing operations attributable to Huntsman Corp. of $91 million or $0.38 loss per diluted share for the fourth quarter of 2008.
April 16, 2009, we announced that as a matter of precautionary planning our wholly owned subsidiary Huntsman International LLC entered into a credit agreement waiver with lenders of its $650 million revolving credit facility. Among other things the waiver relaxed the senior secured leverage ratio covenant from 3.75 to 1.00 to 5.00 to 1.00 for the measurement periods between June 30, 2009 and June 30, 2010.
January 22, 2009, we announced a company-wide initiative to reduce costs across all divisions and functions. Including steps begun in the fourth quarter of 2008, we intend to reduce our full-time employment by approximately 1,250 positions – nearly 10% of all employees. In addition, full-time contractor positions will be reduced by 490. Annualized operating cost savings from all elements of the initiative are estimated to be $150 million.
Adjusted EBITDA from continuing operations for the first quarter of 2009 was $50 million compared to $188 million for the same period in 2008 and $51 million for the fourth quarter of 2008.
We continue to pursue our multi-billion dollar fraud and tortious interference claims against Credit Suisse and Deutsche Bank. The court in Montgomery County, TX, has ordered mediation to begin on May 13, 2009 and trial to commence on June 8, 2009.