Huntsman (HUN) Tops Q2 EPS by 3c, Revenues Beat

Huntsman (NYSE: HUN) reported Q2 EPS of ($0.14), $0.03 better than the analyst estimate of ($0.17). Revenue for the quarter came in at $1.25 billion versus the consensus estimate of $1.14 billion.

Second Quarter Highlights

• Second quarter 2020 net loss of $59 million compared to net income of $118 million in the prior year period; second quarter 2020 loss per share of $0.28 compared to diluted earnings per share of $0.47 in the prior year period.
• Second quarter 2020 adjusted net loss of $30 million compared to adjusted net income of $108 million in the prior year period; second quarter 2020 adjusted loss per share of $0.14 compared to diluted earnings per share of $0.47 in the prior year period.
• Second quarter 2020 adjusted EBITDA of $54 million compared to $245 million in the prior year period.
• Second quarter 2020 net cash provided by operating activities was $85 million. Free cash flow from continuing operations was $30 million for the second quarter 2020 and adjusted free cash flow from continuing operations was $38 million.
• Balance sheet remains strong with a net leverage of 1.5x and total liquidity is approximately $2.6 billion.
• The CVC Thermoset Specialties acquisition closed on May 18, 2020. The integration remains on track and the Company expects to achieve the targeted annualized synergies of approximately $15 million by the end of 2021.
• Including approximately $35 million of synergies relating to recent acquisitions, annualized savings in excess of $100 million are targeted by the end of 2021.

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

"We were fortunate to have been more prepared than ever as we entered the second quarter in an unprecedented global economic crisis, with little to no visibility. With our transformed balance sheet, there was no need to access capital markets and we completed the quarter with $2.6 billion of overall liquidity and generated positive free cash flow. We remain focused on what we can control and have accelerated and improved integration plans for our recent acquisitions, CVC Thermoset Specialties and Icynene-Lapolla. The total annualized targeted synergies for these acquisitions, to be achieved by the end of 2021, is now $35 million. Including these synergies, we have plans to achieve in excess of $100 million of targeted annualized savings by year end 2021. While the ongoing related global effects of COVID-19 remain uncertain and visibility continues to be poor, we see improving trends within most of our major markets and are optimistic that the worst of this economic slowdown is behind us."

For earnings history and earnings-related data on Huntsman (HUN) click here.

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