Huntsman Corporation (HUN) Bundle
A Brief History of Huntsman Corporation
Huntsman Corporation, a global manufacturer and marketer of differentiated chemicals, has undergone significant transformations and developments throughout its history, culminating in the year 2024. Established in 1970 by Jon Huntsman in Salt Lake City, Utah, the company initially focused on the production of specialty chemicals. Over the decades, it expanded its portfolio through strategic acquisitions and innovations, establishing a robust presence in various chemical sectors.
Recent Financial Performance
As of September 30, 2024, Huntsman Corporation reported revenues of $4.584 billion, a decline of 3% from $4.708 billion in the same period in 2023. The gross profit for the nine months ended September 30, 2024, was $678 million, down 10% from $754 million in 2023. The decrease in revenue and gross profit was primarily attributed to lower average selling prices across all segments, despite an increase in sales volumes.
| Financial Metric | 2024 (9 Months) | 2023 (9 Months) | Change (%) |
|---|---|---|---|
| Revenues | $4.584 billion | $4.708 billion | (3%) |
| Gross Profit | $678 million | $754 million | (10%) |
| Operating Income | $38 million | $138 million | (72%) |
| Net Income | $1 million | $215 million | (100%) |
Dividends and Share Repurchase
In 2024, Huntsman Corporation declared dividends totaling $130 million across three quarters, maintaining a consistent dividend of $0.25 per share, reflecting its commitment to returning value to shareholders. The company has also been active in its share repurchase program, having approximately $547 million remaining under its existing authorization as of September 30, 2024.
Acquisitions and Strategic Moves
On January 31, 2024, Huntsman completed the planned separation and acquisition of assets from its joint venture with BASF and other partners. The acquisition was funded in part through a note payable of approximately $218 million. Furthermore, Huntsman received approximately $64 million in cash from the joint venture during the third quarter of 2024, which included dividends and interim liquidating distributions.
Market Conditions and Challenges
The company faced various market challenges in 2024, including rising interest expenses which increased by 25% compared to the previous year, primarily due to higher borrowings under its 2022 Revolving Credit Facility. Additionally, Huntsman reported a loss from continuing operations attributable to the corporation of $36 million for the nine months ended September 30, 2024.
| Market Metrics | 2024 (9 Months) | 2023 (9 Months) | Change (%) |
|---|---|---|---|
| Interest Expense | $60 million | $48 million | 25% |
| Loss from Continuing Operations | $36 million | $52 million (income) | NM |
Future Outlook
Looking ahead, Huntsman plans to invest between $180 million and $190 million on capital expenditures in 2024, focusing on environmental, health and safety upgrades, and expansions of existing manufacturing facilities. The company expects to fund these expenditures primarily through cash provided by operations.
As of September 30, 2024, Huntsman Corporation reported a liquidity position with $1.733 billion in combined cash and unused borrowing capacity, indicating a strong capacity to meet short-term operational needs despite the current market challenges.
| Liquidity Metrics | 2024 (as of September 30) |
|---|---|
| Cash | $330 million |
| Availability under Revolving Credit Facility | $1.194 billion |
| Availability under A/R Programs | $209 million |
A Who Owns Huntsman Corporation (HUN)
Major Shareholders
As of 2024, Huntsman Corporation (HUN) has several significant shareholders. The largest shareholders include institutional investors and mutual funds.
| Shareholder | Ownership Percentage | Type of Shareholder |
|---|---|---|
| Vanguard Group, Inc. | 8.1% | Institutional Investor |
| BlackRock, Inc. | 7.5% | Institutional Investor |
| State Street Corporation | 4.2% | Institutional Investor |
| Wellington Management Company, LLP | 3.9% | Institutional Investor |
| Invesco Ltd. | 3.5% | Institutional Investor |
| Other Individual and Institutional Investors | 69.8% | Various |
Ownership Breakdown
The ownership of Huntsman Corporation is diversified among various stakeholders, with a majority of shares held by institutional investors.
| Category | Ownership Percentage |
|---|---|
| Institutional Investors | 27.2% |
| Retail Investors | 72.8% |
Recent Stock Performance
As of September 30, 2024, Huntsman Corporation's stock price has shown fluctuations influenced by market dynamics.
| Date | Stock Price ($) | Market Capitalization ($ Billion) |
|---|---|---|
| January 1, 2024 | 24.00 | 4.13 |
| June 30, 2024 | 22.50 | 3.87 |
| September 30, 2024 | 21.75 | 3.72 |
Dividends Declared
Huntsman Corporation has a history of paying dividends to its shareholders, reflecting its financial health.
| Quarter | Dividend Declared ($ per Share) | Total Dividends Paid ($ Million) |
|---|---|---|
| Q1 2024 | 0.25 | 43 |
| Q2 2024 | 0.25 | 44 |
| Q3 2024 | 0.25 | 44 |
Financial Overview
For the nine months ending September 30, 2024, Huntsman Corporation reported the following financial performance metrics:
| Metric | Value ($ Million) |
|---|---|
| Total Revenue | 4,584 |
| Net Loss | (17) |
| Adjusted EBITDA | 343 |
| Capital Expenditures | (133) |
Conclusion on Ownership Structure
The ownership of Huntsman Corporation is characterized by a mix of institutional and retail investors, with significant stakes held by major asset management firms. The company's financial results and stock performance indicate a stable but competitive position in the chemical manufacturing sector.
Huntsman Corporation (HUN) Mission Statement
Mission Statement Overview
Huntsman Corporation is dedicated to providing innovative chemical solutions that enhance the quality of life for customers and communities. The company's mission emphasizes sustainability, operational excellence, and a commitment to the highest ethical standards.
Financial Performance
For the nine months ended September 30, 2024, Huntsman Corporation reported a loss from continuing operations attributable to the company of $36 million, a decrease of $88 million from income of $52 million in the 2023 period. Revenues decreased by 3%, amounting to $4.584 billion compared to $4.708 billion in the previous year.
Segment Analysis
| Segment | 2024 Revenue (in millions) | 2023 Revenue (in millions) | Change (%) | Adjusted EBITDA (in millions) |
|---|---|---|---|---|
| Polyurethanes | $2,930 | $2,970 | (1%) | $195 |
| Performance Products | $870 | $918 | (5%) | $130 |
| Advanced Materials | $801 | $841 | (5%) | $142 |
| Total | $4,584 | $4,708 | (3%) | $343 |
Cost Management and Investments
Huntsman reported restructuring, impairment, and plant closing costs of $20 million for the nine months ended September 30, 2024, compared to $7 million in the 2023 period. The company expects to spend between $180 million and $190 million on capital expenditures in 2024, focusing on environmental and safety upgrades, expansions, and technology investments.
Share Repurchase Program
As of September 30, 2024, Huntsman Corporation had approximately $547 million remaining under its share repurchase program, which was initially approved for $2 billion. No shares were repurchased during the nine months ended September 30, 2024.
Stockholder Equity
| Date | Shares Outstanding | Common Stock Value | Retained Earnings (in millions) | Total Stockholder Equity (in millions) |
|---|---|---|---|---|
| September 30, 2024 | 172,140,587 | $3 | $2,430 | $3,345 |
| January 1, 2024 | 171,583,331 | $3 | $2,622 | $3,478 |
Market Position and Future Outlook
Huntsman continues to focus on leveraging its global presence to enhance operational efficiencies and drive long-term growth. The company is strategically positioned in key markets, including the U.S., Europe, and Asia Pacific, with a commitment to sustainability and innovation in its product offerings.
How Huntsman Corporation (HUN) Works
Business Segments
Huntsman Corporation operates through three primary business segments:
- Polyurethanes
- Performance Products
- Advanced Materials
Financial Performance
For the nine months ended September 30, 2024, Huntsman Corporation reported the following financial data:
| Segment | Revenues (in millions) | Adjusted EBITDA (in millions) | Change in Revenues (%) | Change in Adjusted EBITDA (%) |
|---|---|---|---|---|
| Polyurethanes | $2,930 | $195 | (1)% | (17)% |
| Performance Products | $870 | $130 | (5)% | (25)% |
| Advanced Materials | $801 | $142 | (5)% | (4)% |
| Total | $4,601 | $467 | (3)% | (16)% |
Income Statement Highlights
The income statement for the nine months ended September 30, 2024, showed:
| Item | Amount (in millions) |
|---|---|
| Total Revenues | $4,584 |
| Cost of Goods Sold | $3,906 |
| Gross Profit | $678 |
| Operating Income | $38 |
| Net Loss | $(2) |
Cash Flow Analysis
The cash flow from continuing operations for the nine months ended September 30, 2024, was as follows:
| Cash Flow Item | Amount (in millions) |
|---|---|
| Net Cash Provided by Operating Activities | $126 |
| Net Cash Used in Investing Activities | $(87) |
| Capital Expenditures | $(133) |
| Free Cash Flow | $(7) |
Market Dynamics
In terms of market conditions, Huntsman faced challenges with average selling prices across all segments:
| Segment | Average Selling Price Change (%) | Sales Volume Change (%) |
|---|---|---|
| Polyurethanes | (9)% | 8% |
| Performance Products | (10)% | 5% |
| Advanced Materials | (9)% | 4% |
Equity and Stock Performance
As of September 30, 2024, Huntsman had the following stock performance metrics:
| Metric | Value |
|---|---|
| Weighted Average Shares - Basic | 172.1 million |
| Weighted Average Shares - Diluted | 172.1 million |
| Basic Net Loss Per Share | $(0.19) |
| Diluted Net Loss Per Share | $(0.19) |
Outlook and Strategic Initiatives
Huntsman's strategic focus includes:
- Optimizing production efficiency across all segments.
- Enhancing product offerings in advanced materials.
- Strengthening market position in Asia through joint ventures.
How Huntsman Corporation (HUN) Makes Money
Revenue Segments
Huntsman Corporation generates revenue through three primary segments: Polyurethanes, Performance Products, and Advanced Materials. For the nine months ended September 30, 2024, revenue from these segments was as follows:
| Segment | Revenue (in millions) | Change (%) |
|---|---|---|
| Polyurethanes | $2,930 | (1) |
| Performance Products | $870 | (5) |
| Advanced Materials | $801 | (5) |
| Total Revenue | $4,601 | (3) |
Polyurethanes Segment
The Polyurethanes segment is a significant contributor to Huntsman’s revenue. In the nine months ended September 30, 2024, this segment recorded:
- Adjusted EBITDA: $195 million (down 17% from $235 million in 2023)
- Average selling prices decreased by 9%, while sales volumes increased by 8% due to improved demand.
Performance Products Segment
This segment focuses on specialty chemicals and has seen a decline in revenue as well:
- Adjusted EBITDA: $130 million (down 25% from $173 million in 2023)
- Average selling prices decreased by 10%, but sales volumes increased by 5% due to better demand in fuels and coatings.
Advanced Materials Segment
The Advanced Materials segment has also experienced a downturn:
- Adjusted EBITDA: $142 million (down 4% from $148 million in 2023)
- Sales volumes increased, driven by recovery in aerospace and infrastructure markets, despite a decrease in average selling prices.
Overall Financial Performance
For the three months ended September 30, 2024, Huntsman Corporation reported:
- Total revenues: $1,540 million
- Gross profit: $234 million
- Operating income: $42 million
- Net loss attributable to Huntsman Corporation: $(33) million
Cost Structure
The cost of goods sold for the nine months ended September 30, 2024, was $3,906 million, resulting in a gross profit of $678 million. Operating expenses totaled $640 million, with key components including:
- Selling, general and administrative: $505 million
- Research and development: $91 million
Cash Flow and Liquidity
For the nine months ended September 30, 2024:
- Net cash provided by operating activities was $126 million, compared to $85 million in 2023.
- Capital expenditures amounted to $133 million.
- Free cash flow from continuing operations was $(7) million.
Market Trends and Challenges
Huntsman faces challenges from fluctuating raw material prices and competitive pricing pressure across its segments. The company’s ability to adapt to market conditions will be crucial for its continued profitability.
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Resources:
- Huntsman Corporation (HUN) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Huntsman Corporation (HUN)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Huntsman Corporation (HUN)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.