THE WOODLANDS, Texas, Nov. 4, 2022 /PRNewswire/ -- Huntsman Corporation (NYSE: HUN) today reported third quarter 2022 results with revenues of $2,011 million, net income of $115 million, adjusted net income of $141 million and adjusted EBITDA of $271 million.

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

"Third quarter adjusted EBITDA was within our updated guidance and we delivered strong free cash flow. During the quarter, we announced an agreement to sell our Textile Effects division for a total enterprise value of $718 million. We also continued repurchasing shares and have now repurchased more than $750 million of Huntsman stock this year as we track towards our previously announced target of $1 billion for the full year. Likewise, our cost reduction plans continue to move apace and have already reached an annual run rate of approximately $160 million of the $240 million we expect to achieve by the end of 2023.

"The global business environment has become increasingly difficult with growth slowing across many of our end markets. Specifically in Europe, the inflationary impact from record high energy prices combined with declining demand is pressuring our European facilities and margins in ways no one anticipated. We believe that stability will eventually return, but a 'new normal' will not include favorable energy prices and competitiveness the EU once enjoyed. To mitigate these market conditions, in the short term, we have significantly reduced our production rates to reflect this new reality of slower European demand and higher costs and, to address the longer term issues in Europe, we are committing to further realign our cost structure above and beyond our previously announced cost optimization programs with additional restructuring in Europe.

"Specifically, we have identified an incremental $40 million of costs as we realign our business services and production facilities around these new market realities. These changes respond to the new market realities, allowing us to compete more effectively, have a stronger financial return, and provide customers better reliability and service. These cost improvement initiatives have already started, and we will continue to review our business structure and manufacturing footprint for additional opportunities. We expect this initial $40 million of business restructuring to be completed by the end of 2023"

Third Quarter Highlights

• Third quarter 2022 net income of $115 million compared to net income of $225 million in the prior year period; third quarter 2022 diluted earnings per share of $0.50 compared to diluted earnings per share of $0.94 in the prior year period.
• Third quarter 2022 adjusted net income of $141 million compared to adjusted net income of $226 million in the prior year period; third quarter 2022 adjusted diluted earnings per share of $0.71 compared to adjusted diluted earnings per share of $1.02 in the prior year period.
• Third quarter 2022 adjusted EBITDA of $271 million compared to adjusted EBITDA of $349 million in the prior year period.
• Third quarter 2022 net cash provided by operating activities from continuing operations was $285 million. Free cash flow from continuing operations was $228 million for the third quarter 2022 compared to free cash flow from continuing operations of $106 million in the prior year period.
• Repurchased approximately 8.9 million shares for approximately $251 million in the third quarter 2022.
• On August 9, 2022 Huntsman announced it entered into a definitive agreement to sell its Textile Effects division for a total enterprise value of $718 million, which includes the assumption of approximately $125 million in net underfunded liabilities as of December 31, 2021. The Textile Effects division is now reported as discontinued operations on the income and cash flow statements and held for sale on the balance sheet.
• Expands cost improvement initiatives to $280 million to address the European energy crisis and the Company's long-term competitiveness in the region.