乐天堂fun88(中国区)官方网站

Three months ended

March 31,

December 31,

In millions, except per share amounts, unaudited

2014

2013

2013

Revenues

$2,755

$2,702

$ 听 听 听 听 听2,705

Net income (loss) attributable to 乐天堂fun88(中国区)官方网站 Corporation

$ 听 听 54

$ 听 听(24)

$ 听 听 听 听 听 听 听 41

Adjusted net income⁽¹⁾

$ 听 105

$ 听 听 听46

$ 听 听 听 听 听 听 118

Diluted income (loss) per share

$ 听0.22

$ (0.10)

$ 听 听 听 听 听 听0.17

Adjusted diluted income per share⁽¹⁾

$ 听0.43

$ 听0.19

$ 听 听 听 听 听 听0.48

EBITDA⁽¹⁾

$ 听 261

$ 听 112

$ 听 听 听 听 听 听 225

Adjusted EBITDA⁽¹⁾

$ 听 329

$ 听 220

$ 听 听 听 听 听 听 313

See end of press release for footnote explanations

Call-in numbers for the conference call:

U.S. participants

(888) 713 - 4214

International participants听

(617) 213 - 4866

Passcode

60716193

Call-in numbers for the replay:

U.S. participants听听听听听听听听听听听听听听听听听听听听听听

(888) 286 - 8010

International participants听听听听听听听听听听听听听

(617) 801 - 6888

Replay code听听听听听听听听听听听听听听听听听听听听听听听听听听听听听听

10497006

Table 1 鈥� Results of Operations

Three months ended

March 31,

In millions, except per share amounts, unaudited

2014

2013

Revenues

$2,755

$2,702

Cost of goods sold

2,305

2,353

Gross profit

450

349

Operating expenses

261

255

Restructuring, impairment and plant closing costs

39

44

Operating income

150

50

Interest expense

(48)

(51)

Equity in income of investment in unconsolidated affiliates

2

1

Loss on early extinguishment of debt

-

(35)

Other income

1

-

Income (loss) before income taxes

105

(35)

Income tax (expense) benefit

(36)

20

Income (loss) from continuing operations

69

(15)

Loss from discontinued operations, net of tax⁽²⁾

(7)

(2)

Net income (loss)

62

(17)

Net income attributable to noncontrolling interests, net of tax

(8)

(7)

Net income (loss) attributable to 乐天堂fun88(中国区)官方网站 Corporation

Adjusted EBITDA⁽¹⁾

$ 听 329

$ 听 220

Adjusted net income⁽¹⁾

$ 听 105

$ 听 听 46

Basic income (loss) per share

$ 听0.22

$ (0.10)

Diluted income (loss) per share

$ 听0.22

$ (0.10)

Adjusted diluted income per share⁽¹⁾

$ 听0.43

$ 听0.19

Common share information:

听听 Basic shares outstanding

240.9

239.0

听听 Diluted shares

244.5

239.0

听听 Diluted shares for adjusted diluted income per share

244.5

241.8

See end of press release for footnote explanations

Table 2 鈥� Results of Operations by Segment

Three months ended

March 31,

Better /

(Worse)

In millions, unaudited

2014

2013

Segment Revenues:

听听 Polyurethanes

$1,200

$1,182

2%

听听 Performance Products

765

722

6%

听听 Advanced Materials

319

336

(5)%

听听 Textile Effects

224

188

19%

听听 Pigments

318

330

(4)%

听听 Eliminations and other

(71)

(56)

(27)%

听听 Total

$2,755

$2,702

2%

Segment Adjusted EBITDA⁽¹⁾:

听听 Polyurethanes

$ 听 167

$ 听 178

(6)%

听听 Performance Products

118

54

119%

听听 Advanced Materials

46

27

70%

听听 Textile Effects

16

(3)

NM

听听 Pigments

26

9

189%

听听 Corporate, LIFO and other

(44)

(45)

2%

听听 Total

$ 听 329

$ 听 220

50%

See end of press release for footnote explanations

NM鈥擭ot meaningful

Table 3 鈥� Factors Impacting Sales Revenues

Three months ended

March 31, 2014 vs. 2013

Average Selling Price^(a)

Local

Exchange

Sales Mix

Sales

Unaudited

Currency

Rate

& Other

Volume^(b)

Total

Polyurethanes

(4)%

----

1%

5%

2%

Performance Products

2%

----

(10)%

14%

6%

Advanced Materials

6%

(1)%

6%

(16)%

(5)%

Textile Effects

15%

(2)%

2%

4%

19%

Pigments

(5)%

1%

----

----

(4)%

Total Company

(2)%

----

(4)%

8%

2%

(a) Excludes sales from tolling arrangements, by-products and raw materials.

(b) Excludes sales from by-products and raw materials.

Table 4 鈥� Reconciliation of U.S. GAAP to Non-GAAP Measures

听Income Tax听

听Net Income (loss)听

听Diluted Income听

听EBITDA听

听Expense听

听Attrib. to HUN Corp.听

听Per Share听

Three months ended

Three months ended

Three months ended

Three months ended

March 31,

March 31,

March 31,

March 31,

In millions, except per share amounts, unaudited

2014

2013

2014

2013

2014

2013

2014

2013

GAAP⁽¹⁾

$ 听 听261

$ 听 听112

$ 听 (36)

$ 听 听20

$ 听 54

$ 听 听 听 听 听 (24)

$ 听0.22

$ (0.10)

Adjustments:

听听 Acquisition expenses and purchase accounting inventory adjustments

8

3

(2)

(1)

6

2

0.02

0.01

听听 Loss from discontinued operations, net of tax⁽²⁾

7

3

听N/A听

听N/A听

7

2

0.03

0.01

听听 Discount amortization on settlement financing associated with the terminated merger

听N/A听

听N/A听

-

(1)

-

2

-

0.01

听听 Loss on early extinguishment of debt

-

35

-

(13)

-

22

-

0.09

听听 Certain legal settlements and related expenses

-

2

-

(1)

-

1

-

-

听听 Amortization of pension and postretirement actuarial losses

13

19

(4)

(7)

9

12

0.04

0.05

听听 Restructuring, impairment and plant closing and transition costs

40

46

(11)

(17)

29

29

0.12

0.12

Adjusted⁽¹⁾

$ 听 听329

$ 听 听220

$ 听 (53)

$ 听 (20)

$ 105

$ 听 听 听 听 听 听46

$ 听0.43

$ 听0.19

Adjusted income tax expense

53

20

Net income attributable to noncontrolling interests, net of tax

8

7

Adjusted pre-tax income⁽¹⁾

$ 166

$ 听 听 听 听 听 听73

Adjusted effective tax rate

32%

27%

听Income Tax听

听Net Income听

听Diluted Income听

听EBITDA听

Expense

听Attrib. to HUN Corp.听

听Per Share听

Three months ended

Three months ended

Three months ended

Three months ended

December 31,

December 31,

December 31,

December 31,

In millions, except per share amounts, unaudited

2013

2013

2013

2013

GAAP⁽¹⁾

$ 听 听225

$ 听 (20)

$ 听 41

$ 听0.17

Adjustments:

听听 Acquisition expenses and purchase accounting inventory adjustments

7

(3)

4

0.02

听听 Loss from discontinued operations, net of tax⁽²⁾

2

听N/A听

1

-

听听 Discount amortization on settlement financing associated with the terminated merger

听N/A听

(1)

1

-

听听 Loss on early extinguishment of debt

16

(6)

10

0.04

听听 Certain legal settlements and related expenses

1

-

1

-

听听 Amortization of pension and postretirement actuarial losses

18

(7)

11

0.05

听听 Restructuring, impairment and plant closing and transition costs

44

5

49

0.20

Adjusted⁽¹⁾

$ 听 听313

$ 听 (32)

$ 118

$ 听0.48

Adjusted income tax expense

32

Net income attributable to noncontrolling interests, net of tax

1

Adjusted pre-tax income⁽¹⁾

$ 151

Adjusted effective tax rate

21%

See end of press release for footnote explanations

Table 5 鈥� Reconciliation of Net Income (Loss) to EBITDA

Three months ended

March 31,

December 31,

In millions, unaudited

2014

2013

2013

Net income (loss) attributable to 乐天堂fun88(中国区)官方网站 Corporation

$ 听54

$ (24)

$ 听 听 听 听 听 听 听 41

Interest expense

48

51

44

Income tax expense (benefit) from continuing operations

36

(20)

20

Income tax benefit from discontinued operations⁽²⁾

-

(2)

(2)

Depreciation and amortization

123

107

122

EBITDA⁽¹⁾

$261

$112

$ 听 听 听 听 听 听 225

See end of press release for footnote explanations

Table 6 鈥� Selected Balance Sheet Items

March 31,

December 31,

In millions

2014

2013

(unaudited)

Cash

$ 听 听 听286

$ 听 听 听 听 听 听 529

Accounts and notes receivable, net

1,724

1,575

Inventories

1,911

1,741

Other current assets

307

314

Property, plant and equipment, net

3,794

3,824

Other assets

1,205

1,205

Total assets

$ 听 听9,227

$ 听 听 听 听 听9,188

Accounts payable

$ 听 听1,185

$ 听 听 听 听 听1,113

Other current liabilities

760

769

Current portion of debt

270

277

Long-term debt

3,621

3,633

Other liabilities

1,214

1,267

Total equity

2,177

2,129

Total liabilities and equity

$ 听 听9,227

$ 听 听 听 听 听9,188

Table 7 鈥� Outstanding Debt

March 31,

December 31,

In millions

2014

2013

(unaudited)

Debt:

听听 Senior credit facilities

$ 听 听1,338

$ 听 听 听 听 1,351

听听 Accounts receivable programs

247

248

听听 Senior notes

1,060

1,061

听听 Senior subordinated notes

891

891

听听 Variable interest entities

238

247

听听 Other debt

117

112

Total debt - excluding affiliates

3,891

3,910

Total cash

286

529

Net debt- excluding affiliates

$ 听 听3,605

$ 听 听 听 听 3,381

Table 8 鈥� Summarized Statement of Cash Flows

Three months ended

March 31,

In millions, unaudited

2014

2013

Total cash at beginning of period

$ 529

$396

Net cash used in operating activities

(67)

(74)

Net cash used in investing activities

(104)

(85)

Net cash (used in) provided by financing activities

(71)

21

Effect of exchange rate changes on cash

(1)

(2)

Total cash at end of period

$ 286

$256

Supplemental cash flow information:

听听 Cash paid for interest

$ 听(56)

$ (59)

听听 Cash paid for income taxes

(46)

(17)

听听 Cash paid for capital expenditures

(107)

(89)

听听 Depreciation and amortization

123

107

听听 Changes in primary working capital:

听听 Accounts and notes receivable

(149)

(85)

听听 Inventories

(172)

(9)

听听 Accounts payable

107

10

$(214)

$ (84)

Footnotes

(1)

We use EBITDA and adjusted EBITDA to measure the operating performance of our business.听 We provide adjusted net income because we feel it provides meaningful insight for the investment community into the performance of our business.听 We believe that net income (loss) attributable to 乐天堂fun88(中国区)官方网站 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. 听Additional information with respect to our use of each of these financial measures follows:

EBITDA is defined as net income (loss) attributable to 乐天堂fun88(中国区)官方网站 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 乐天堂fun88(中国区)官方网站 Corporation is set forth in Table 5 above.

Adjusted EBITDA is computed by eliminating the following from EBITDA:听 acquisition expenses and purchase accounting inventory adjustments; loss (gain) on initial consolidation of subsidiaries; EBITDA from discontinued operations; loss (gain) on disposition of businesses/assets; loss on early extinguishment of debt; extraordinary loss (gain) on the acquisition of a business; certain legal settlements and related expenses; amortization of pension and postretirement actuarial losses (gains); and restructuring, impairment, plant closing and transition costs (credits).听 The reconciliation of adjusted EBITDA to EBITDA is set forth in Table 4 above.

Adjusted net income (loss) is computed by eliminating the after tax impact of the following items from net income (loss) attributable to 乐天堂fun88(中国区)官方网站 Corporation: acquisition expenses and purchase accounting inventory adjustments; loss (gain) on initial consolidation of subsidiaries; loss (income) from discontinued operations; discount amortization on settlement financing associated with the terminated merger; loss (gain) on disposition of businesses/assets; loss on early extinguishment of debt; extraordinary loss (gain) on the acquisition of a business; certain legal settlements and related expenses; amortization of pension and postretirement actuarial losses (gains); and restructuring, impairment, plant closing and transition costs (credits).听 听We do not adjust for changes in tax valuation allowances because we do not believe it provides more meaningful information than is provided under GAAP.听 The reconciliation of adjusted net income (loss) to net income (loss) attributable to 乐天堂fun88(中国区)官方网站 Corporation common stockholders is set forth in Table 4 above.

(2)

During the first quarter 2010 we closed our Australian styrenics operations; results from this business are treated as discontinued operations.听