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Chemtura Reports Second Quarter 2012 Financial Results

Stocks in this article: CHMT

https://event.webcasts.com/starthere.jsp?ei=1007094

Chemtura Corporation, with 2011 sales of $3 billion, is a global manufacturer and marketer of specialty chemicals, agrochemicals and pool, spa and home care products. Additional information concerning us is available at www.chemtura.com.

Managed Basis Financial Measures

The information presented in this press release and in the attached financial tables includes financial measures that are not calculated or presented in accordance with Generally Accepted Accounting Principles in the United States (“GAAP”). Our managed basis financial measures consist of adjusted results of operations that exclude certain expenses, gains and losses that may not be indicative of our core operations. Excluded items include costs associated with the bankruptcy reorganization; facility closures, severance and related costs; gains and losses on sale of business and assets; increased depreciation due to the change in useful life of assets; unusual and non-recurring settlements; accelerated recognition of asset retirement obligations and impairment charges. They also include the computation of Adjusted EBITDA. In addition to the managed basis financial measures discussed above, we have applied a managed basis effective income tax rate to our managed basis income before taxes. Our managed basis tax rate of 28% represents a refined estimated tax rate for our core operations to simplify comparison of underlying operating performance. Reconciliations of these managed basis financial measures to their most directly comparable GAAP financial measures are provided in the attached financial tables. We believe that such managed basis financial measures provide useful information to investors and may assist them in evaluating our underlying performance and identifying operating trends. In addition, management uses these managed basis financial measures internally to allocate resources and evaluate the performance of our operations. While we believe that such measures are useful in evaluating our performance, investors should not consider them to be a substitute for financial measures prepared in accordance with GAAP. In addition, these managed basis financial measures may differ from similarly titled managed basis financial measures used by other companies and do not provide a comparable view of our performance relative to other companies in similar industries.

Forward-Looking Statements

This document includes forward-looking statements within the meaning of Section 27(a) of the Securities Act of 1933, as amended and Section 21(e) of the Exchange Act of 1934, as amended. These forward-looking statements are identified by terms and phrases such as “anticipate,” “believe,” “intend,” “estimate,” “expect,” “continue,” “should,” “could,” “may,” “plan,” “project,” “predict,” “will” and similar expressions and include references to assumptions and relate to our future prospects, developments and business strategies.

Factors that could cause our actual results to differ materially from those expressed or implied in such forward-looking statements include, but are not limited to:

  • The cyclical nature of the global chemicals industry;
  • Increases in the price of raw materials or energy and our ability to recover cost increases through increased selling prices for our products;
  • Disruptions in the availability of raw materials or energy;
  • Our ability to implement our growth strategies in rapidly growing markets;
  • Our ability to execute timely upon our portfolio management strategies and mid and long range business plans;
  • Our ability to obtain the requisite regulatory and other approvals to implement the plan to build a new multi-purpose manufacturing facility in Nantong, China;
  • Declines in general economic conditions;
  • The European debt crisis;
  • The ability to comply with product registration requirements of regulatory authorities, including the U.S. food and drug administration (the “FDA”) and European Union REACh legislation;
  • The effect of adverse weather conditions;
  • The ability to grow profitability in our Chemtura AgroSolutions segment;
  • Demand for Chemtura AgroSolutions segment products being affected by governmental policies;
  • Current and future litigation, governmental investigations, prosecutions and administrative claims;
  • Environmental, health and safety regulation matters;
  • Federal regulations aimed at increasing security at certain chemical production plants;
  • Significant international operations and interests;
  • Our ability to maintain adequate internal controls over financial reporting;
  • Exchange rate and other currency risks;
  • Our dependence upon a trained, dedicated sales force;
  • Operating risks at our production facilities;
  • Our ability to protect our patents or other intellectual property rights;
  • Whether our patents may provide full protection against competing manufacturers;
  • Our ability to remain technologically innovative and to offer improved products and services in a cost-effective manner;
  • The risks to our joint venture investments resulting from lack of sole decision making authority;
  • Our unfunded and underfunded defined benefit pension plans and post-retirement welfare benefit plans;
  • Risks associated with possible climate change legislation, regulation and international accords;
  • The ability to support the carrying value of the goodwill and long-lived assets related to our businesses;
  • Whether we repurchase any additional shares of our common stock that our Board of Directors has authorized us to purchase and the terms on which any such repurchases are made; and
  • Other risks and uncertainties described in our filings with the Securities and Exchange Commission including Item 1A, Risk Factors, in our Annual Report on Form 10-K.

These statements are based on our estimates and assumptions and on currently available information. Our forward-looking statements include information concerning possible or assumed future results of operations, and our actual results may differ significantly from the results discussed. Forward-looking information is intended to reflect opinions as of the date this press release was issued. We undertake no duty to update any forward-looking statements to conform the statements to actual results or changes in our operations.

-9-

 
CHEMTURA CORPORATION
Index of Financial Statements and Schedules
 

Page

 
Financial Statements
 
Consolidated Statements of Operations (Unaudited) -
Quarters and Six Months ended June 30, 2012 and 2011 10
 
Consolidated Statements of Comprehensive Income (Unaudited) -
Quarters and Six Months ended June 30, 2012 and 2011 11
 
Consolidated Balance Sheets - June 30, 2012 (Unaudited) and
December 31, 2011 12
 
Condensed Consolidated Statements of Cash Flows (Unaudited) -
Six Months ended June 30, 2012 and 2011 13
 
Segment Net Sales and Operating Income (Unaudited) -
Quarters and Six Months ended June 30, 2012 and 2011 14
 
Supplemental Schedules
 
Major Factors Affecting Net Sales and Operating Results (Unaudited) -
Quarter and Six Months ended June 30, 2012 versus 2011 15
 
GAAP and Managed Basis Consolidated Statements of Operations (Unaudited) -
Quarters ended June 30, 2012 and 2011 16
 
GAAP and Managed Basis Consolidated Statements of Operations (Unaudited) -
Six Months ended June 30, 2012 and 2011 17
 
GAAP and Managed Basis Segment Net Sales and Operating Income (Unaudited) -
Quarters ended June 30, 2012 and 2011 18
 
GAAP and Managed Basis Segment Net Sales and Operating Income (Unaudited) -
Six Months ended June 30, 2012 and 2011 19

-10-

       
CHEMTURA CORPORATION
Consolidated Statements of Operations (Unaudited)
(In millions, except per share data)
 
Quarters Ended June 30, Six Months Ended June 30,
2012 2011 2012 2011

 

Net sales $ 845 $ 876 $ 1,553 $ 1,575
 
Cost of goods sold 632   652   1,169   1,190  
Gross profit 213 224 384 385
Gross profit % 25 % 26 % 25 % 24 %
 
Selling, general and administrative 74 92 156 171
Depreciation and amortization 35 34 68 71
Research and development 12 11 25 22
Facility closures, severance and related costs 23 - 23 -
Impairment charges - 1 1 3
Changes in estimates related to expected allowable claims - 1 2 1
Equity income - (2 ) (1 ) (2 )
       
Operating income 69 87 110 119
Interest expense (16 ) (16 ) (30 ) (32 )
Other income (expense), net 7 (1 ) 3 -
Reorganization items, net (1 ) (6 ) (3 ) (13 )
       
Earnings before income taxes 59 64 80 74
Income tax (expense) benefit (8 ) 6 (7 ) 3
       
Net earnings 51 70 73 77
 
Less: Net earnings attributable to non-controlling interests (1 ) (1 ) (1 ) (1 )
       
Net earnings attributable to Chemtura $ 50   $ 69   $ 72   $ 76  
 

Basic and diluted per share information - attributable to Chemtura:

Net earnings attributable to Chemtura $ 0.50   $ 0.69   $ 0.73   $ 0.76  
 
Weighted average shares outstanding - Basic 98.9   100.3   98.6   100.2  
 
Weighted average shares outstanding - Diluted 99.1   100.5   99.1   100.3  

-11-

 
CHEMTURA CORPORATION
Consolidated Statements of Comprehensive Income (Unaudited)
(In millions)
       
Quarters Ended June 30, Six Months Ended June 30,
2012 2011 2012 2011
 
Net earnings $ 51 $ 70 $ 73 $ 77
 
Other comprehensive (loss) income, net of tax:
Foreign currency translation adjustments (44 ) 13 (22 ) 44
Unrecognized pension and other post-retirement benefit costs (3 ) 1 (1 ) 3
       
Comprehensive income 4 84 50 124
 
Comprehensive income attributable to the non-controlling interest (1 ) (1 ) (1 ) (1 )
       
Comprehensive income attributable to Chemtura $ 3   $ 83   $ 49   $ 123  

-12-

 
CHEMTURA CORPORATION
Consolidated Balance Sheets
(In millions)
   
June 30, December 31,
2012 2011
(Unaudited)
ASSETS
 
CURRENT ASSETS
Cash and cash equivalents $ 125 $ 180
Restricted cash - 5
Accounts receivable 583 458
Inventories 568 542
Other current assets 156   136  
Total current assets 1,432 1,321
 
NON-CURRENT ASSETS
Property, plant and equipment, net 746 752
Goodwill 173 174
Intangible assets, net 379 392
Other assets 222   216  
 
Total Assets $ 2,952   $ 2,855  
 
LIABILITIES AND STOCKHOLDERS' EQUITY
 
CURRENT LIABILITIES
Short-term borrowings $ 30 $ 5
Accounts payable 225 173
Accrued expenses 205 194
Income taxes payable 14   18  
Total current liabilities 474 390
 
NON-CURRENT LIABILITIES
Long-term debt 748 748
Pension and post-retirement health care liabilities 430 460
Other liabilities 208   211  
Total liabilities 1,860   1,809  
 
STOCKHOLDERS' EQUITY
Common stock 1 1
Additional paid-in capital 4,351 4,353
Accumulated deficit (2,877 ) (2,949 )
Accumulated other comprehensive loss (369 ) (346 )
Treasury stock (23 ) (22 )
Total Chemtura stockholders' equity 1,083 1,037
 
Non-controlling interest 9   9  
Total stockholders' equity 1,092   1,046  
 
Total Liabilities and Stockholders' Equity $ 2,952   $ 2,855  

-13-

   
CHEMTURA CORPORATION
Condensed Consolidated Statements of Cash Flows (Unaudited)
(In millions)
 
Six Months Ended June 30,

Increase (decrease) to cash

2012 2011
CASH FLOWS FROM OPERATING ACTIVITIES
Net earnings $ 73 $ 77

Adjustments to reconcile net earnings to net cash used in operating activities:

Impairment charges 1 3
Depreciation and amortization 68 71
Stock-based compensation expense 10 16
Reorganization items, net 1 1
Changes in estimates related to expected allowable claims 2 1
Equity income (1 ) (2 )
Changes in assets and liabilities, net (172 ) (237 )
Net cash used in operating activities (18 ) (70 )
 
CASH FLOWS FROM INVESTING ACTIVITIES
Net proceeds from divestments 9 -
Payments for acquisitions - (33 )
Capital expenditures (58 ) (55 )
Net cash used in investing activities (49 ) (88 )
 
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from ABL Facility, net 25 91
Proceeds A/R Financing Facility, net 3 -
(Payments on) proceeds from other short term borrowings, net (3 ) 4
Common shares acquired (10 ) -
Payments for debt issuance costs (1 ) -
Proceeds from exercise of stock options 1   1  
Net cash provided by financing activities 15   96  
 
CASH
Effect of exchange rates on cash and cash equivalents (3 ) 4  
 
Change in cash and cash equivalents (55 ) (58 )
Cash and cash equivalents at beginning of period 180   201  
 
Cash and cash equivalents at end of period $ 125   $ 143  

-14-

       
CHEMTURA CORPORATION
Segment Net Sales and Operating Income (Unaudited)
(In millions)
 
Quarters Ended June 30, Six Months Ended June 30,
2012 2011 2012 2011
NET SALES
 
Industrial Performance Products $ 339 $ 370 $ 652 $ 706
Industrial Engineered Products 236 244 462 453
Consumer Products 158 152 242 231
Chemtura AgroSolutions 112   110   197   185  
Total net sales $ 845   $ 876   $ 1,553   $ 1,575  
 
OPERATING INCOME
 
Industrial Performance Products $ 33 $ 39 $ 57 $ 69
Industrial Engineered Products 38 42 82 75
Consumer Products 20 22 15 19
Chemtura AgroSolutions 23   12   33   14  
Segment operating income 114   115   187   177  
 

General corporate expense, including amortization

(22 ) (26 ) (51 ) (54 )
Facility closures, severance and related costs (23 ) - (23 ) -
Impairment charges - (1 ) (1 ) (3 )
Changes in estimates related to expected allowable claims -   (1 ) (2 ) (1 )
Total operating income $ 69   $ 87   $ 110   $ 119  

-15-

       
CHEMTURA CORPORATION
Major Factors Affecting Net Sales and Operating Results (Unaudited)
Quarter and Six Months Ended June 30, 2012 versus 2011
(In millions)
 

The following table summarizes the major factors contributing to the changes in operating results versus the prior year:

 
Quarter Ended June 30, Six Months Ended June 30,
Net

Earnings before

Net

Earnings before

Sales income taxes Sales income taxes
 
2011 $ 876 $ 64 $ 1,575 $ 74
 
2011 Accelerated recognition of asset retirement obligations - (1 ) - (1 )
2011 Accelerated depreciation of property, plant and equipment - - - 1
2011 Impairment Charges - 1 - 3
2011 Changes in estimates related to expected allowable claims - 1 1
2011 Reorganization items, net -   6   -   13  
876 71 1,575 91
 
Changes in selling prices 27 27 66 66
Unit volume and mix (41 ) (18 ) (65 ) (23 )
Foreign currency impact - operating income (17 ) (5 ) (23 ) (7 )
Higher raw materials and energy costs - (9 ) - (13 )
Manufacturing cost impacts - (5 ) - (19 )
Lower distribution costs - 2 - -
Changes in SGA&R, excluding foreign exchange impact - 14 - 11
Lower depreciation and amortization expense - - - 3
Lower interest expense - - - 2
Foreign currency impact - other income, net - 5 - 1
Other -   4   -   -  
845 86 1,553 112
 
2012 Accelerated recognition of asset retirement obligations - (2 ) - (2 )
2012 Accelerated depreciation of property, plant and equipment - (1 ) - (1 )
2012 Facility closures, severance and related costs - (23 ) - (23 )
2012 Impairment Charges - - - (1 )
2012 Changes in estimates related to expected allowable claims - - - (2 )
2012 Reorganization items, net - (1 ) - (3 )
       
2012 $ 845   $ 59   $ 1,553   $ 80  

-16-

           
CHEMTURA CORPORATION
GAAP and Managed Basis Consolidated Statements of Operations (Unaudited)
(In millions, except per share data)
 
Quarter Ended June 30, 2012 Quarter Ended June 30, 2011
Managed Basis Managed Basis
GAAP Adjustments Managed Basis GAAP Adjustments Managed Basis
 
Net sales $ 845 $ - $ 845 $ 876 $ - $ 876
 
Cost of goods sold 632   (2 ) 630   652   1   653  
Gross profit 213 2 215 224 (1 ) 223
Gross profit % 25 % 25 % 26 % 25 %
 
Selling, general and administrative 74 - 74 92 - 92
Depreciation and amortization 35 (1 ) 34 34 - 34
Research and development 12 - 12 11 - 11
Facility closures, severance and related costs 23 (23 ) - - - -
Impairment charges - - - 1 (1 ) -
Changes in estimates related to expected allowable claims - - - 1 (1 ) -
Equity income -   -   -   (2 ) -   (2 )
 
Operating income 69 26 95 87 1 88
Interest expense (16 ) - (16 ) (16 ) - (16 )
Other income (expense), net 7 - 7 (1 ) - (1 )
Reorganization items, net (1 ) 1   -   (6 ) 6   -  
 
Earnings before income taxes 59 27 86 64 7 71
Income tax (expense) benefit (8 ) (17 ) (25 ) 6   (25 ) (19 )
 
Net earnings 51 10 61 70 (18 ) 52
 
Less: Net earnings attributable to non-controlling interests (1 ) - (1 ) (1 ) - (1 )
           
Net earnings attributable to Chemtura $ 50   $ 10   $ 60   $ 69   $ (18 ) $ 51  
 

Basic and diluted per share information - attributable to Chemtura:

Net earnings $ 0.50   $ 0.61   $ 0.69   $ 0.51  
 
Weighted average shares outstanding - Basic 98.9   98.9   100.3   100.3  
 
Weighted average shares outstanding - Diluted 99.1   99.1   100.5   100.5  
 
 
Managed Basis Adjustments consist of the following:
 
Accelerated recognition of asset retirement obligations $ 2 $ (1 )
Accelerated depreciation of property, plant and equipment 1 -
Facility closures, severance and related costs 23 -
Impairment charges - 1
Changes in estimates related to expected allowable claims - 1
Reorganization items, net 1   6  
Pre-tax 27 7
 
Adjustment to apply a Managed Basis effective tax rate (17 ) (25 )
After-tax $ 10   $ (18 )
 
Adjusted EBITDA consists of the following:
 
Operating income - GAAP $ 69 $ 87
Accelerated recognition of asset retirement obligations 2 (1 )
Accelerated depreciation of property, plant and equipment 1 -
Facility closures, severance and related costs 23 -
Impairment charges - 1
Changes in estimates related to expected allowable claims -   1  
Operating income - Managed Basis 95 88
 
Depreciation and amortization - Managed Basis 34 34
Non-cash stock-based compensation expense 3 8
   
Adjusted EBITDA $ 132   $ 130  

-17-

 
CHEMTURA CORPORATION
GAAP and Managed Basis Consolidated Statements of Operations (Unaudited)
(In millions, except per share data)
           
Six Months Ended June 30, 2012 Six Months Ended June 30, 2011

Managed Basis

Managed Basis
GAAP Adjustments Managed Basis GAAP Adjustments Managed Basis
 
Net sales $ 1,553 $ - $ 1,553 $ 1,575 $ - $ 1,575
 
Cost of goods sold 1,169   (2 ) 1,167   1,190   1   1,191  
Gross profit 384 2 386 385 (1 ) 384
Gross profit % 25 % 25 % 24 % 24 %
 
Selling, general and administrative 156 - 156 171 - 171
Depreciation and amortization 68 (1 ) 67 71 (1 ) 70
Research and development 25 - 25 22 - 22
Facility closures, severance and related costs 23 (23 ) - - - -
Impairment charges 1 (1 ) - 3 (3 ) -
Changes in estimates related to expected allowable claims 2 (2 ) - 1 (1 ) -
Equity income (1 ) -   (1 ) (2 ) -   (2 )
 
Operating income 110 29 139 119 4 123
Interest expense (30 ) - (30 ) (32 ) - (32 )
Other income, net 3 - 3 - - -
Reorganization items, net (3 ) 3   -   (13 ) 13   -  
 
Earnings before income taxes 80 32 112 74 17 91
Income tax (expense) benefit (7 ) (25 ) (32 ) 3   (28 ) (25 )
 
Net earnings 73 7 80 77 (11 ) 66
 
Less: Net earnings attributable to non-controlling interests (1 ) - (1 ) (1 ) - (1 )
           
Net earnings attributable to Chemtura $ 72   $ 7   $ 79   $ 76   $ (11 ) $ 65  
 

Basic and diluted per share information - attributable to Chemtura:

Net earnings $ 0.73   $ 0.80   $ 0.76   $ 0.65  
 
Weighted average shares outstanding - Basic 98.6   98.6   100.2   100.2  
 
Weighted average shares outstanding - Diluted 99.1   99.1   100.3   100.3  
 
 
Managed Basis Adjustments consist of the following:
 
Accelerated recognition of asset retirement obligations $ 2 $ (1 )
Accelerated depreciation of property, plant and equipment 1 1
Facility closures, severance and related costs 23 -
Impairment charges 1 3
Changes in estimates related to expected allowable claims 2 1
Reorganization items, net 3   13  
Pre-tax 32 17
 
Adjustment to apply a Managed Basis effective tax rate (25 ) (28 )
After-tax $ 7   $ (11 )
 
Adjusted EBITDA consists of the following:
 
Operating income - GAAP $ 110 $ 119
Accelerated recognition of asset retirement obligations 2 (1 )
Accelerated depreciation of property, plant and equipment 1 1
Facility closures, severance and related costs 23 -
Impairment charges 1 3
Changes in estimates related to expected allowable claims 2   1  
Operating income - Managed Basis 139 123
 
Depreciation and amortization - Managed Basis 67 70
Non-cash stock-based compensation expense 10 16
   
Adjusted EBITDA $ 216   $ 209  

-18-

           
CHEMTURA CORPORATION
GAAP and Managed Basis Segment Sales and Operating Income (Unaudited)
(In millions of dollars)
 
Quarter Ended June 30, 2012 Quarter Ended June 30, 2011
GAAP Managed Basis GAAP Managed Basis
Historical Adjustments Managed Basis Historical Adjustments Managed Basis
 
NET SALES
Industrial Performance Products $ 339 $ - $ 339 $ 370 $ - $ 370
Industrial Engineered Products 236 - 236 244 - 244
Consumer Products 158 - 158 152 - 152
Chemtura AgroSolutions 112   -   112   110   -   110  
Total net sales $ 845   $ -   $ 845   $ 876   $ -   $ 876  
 
OPERATING INCOME
 
Industrial Performance Products $ 33 $ 3 $ 36 $ 39 $ - $ 39
Industrial Engineered Products 38 - 38 42 (1 ) 41
Consumer Products 20 - 20 22 - 22
Chemtura AgroSolutions 23   -   23   12   -   12  
Segment operating income 114   3   117   115   (1 ) 114  
 

General corporate expense, including amortization

(22 ) - (22 ) (26 ) - (26 )
Facility closures, severance and related costs (23 ) 23 - - - -
Impairment charges - - - (1 ) 1 -
Changes in estimates related to expected allowable claims -   -   -   (1 ) 1   -  
Total operating income $ 69   $ 26   $ 95   $ 87   $ 1   $ 88  
 

Managed Basis Adjustments consist of the following:

 
Accelerated recognition of asset retirement obligations $ 2 $ (1 )
Accelerated depreciation of property, plant and equipment 1 -
Facility closures, severance and related costs 23 -
Impairment charges - 1
Changes in estimates related to expected allowable claims -   1  
$ 26   $ 1  
 

DEPRECIATION AND AMORTIZATION

 
Industrial Performance Products $ 10 $ (1 ) $ 9 $ 8 $ - $ 8
Industrial Engineered Products 10 - 10 11 - 11
Consumer Products 3 - 3 3 - 3
Chemtura AgroSolutions 5 - 5 3 - 3
General corporate expense 7 - 7 9 - 9
           
Total depreciation and amortization $ 35   $ (1 ) $ 34   $ 34   $ -   $ 34  
 

NON-CASH STOCK-BASED COMPENSATION EXPENSE

 
Industrial Performance Products $ - $ 1
Industrial Engineered Products - -
Consumer Products - 1
Chemtura AgroSolutions 1 1
General corporate expense 2 5
   
Total non-cash stock-based compensation expense $ 3   $ 8  
 

Adjusted EBITDA by Segment:

 
Industrial Performance Products $ 45 $ 48
Industrial Engineered Products 48 52
Consumer Products 23 26
Chemtura AgroSolutions 29 16
General corporate expense (13 ) (12 )
   
Adjusted EBITDA $ 132   $ 130  

-19-

           
CHEMTURA CORPORATION
GAAP and Managed Basis Segment Sales and Operating Income (Unaudited)
(In millions of dollars)
 
Six Months Ended June 30, 2012 Six Months Ended June 30, 2011
GAAP Managed Basis GAAP Managed Basis
Historical Adjustments Managed Basis Historical Adjustments

Managed Basis

 
NET SALES
Industrial Performance Products $ 652 $ - $ 652 $ 706 $ - $ 706
Industrial Engineered Products 462 - 462 453 - 453
Consumer Products 242 - 242 231 - 231
Chemtura AgroSolutions 197   -   197   185   -   185  
Total net sales $ 1,553   $ -   $ 1,553   $ 1,575   $ -   $ 1,575  
 
OPERATING INCOME
 
Industrial Performance Products $ 57 $ 3 $ 60 $ 69 $ - $ 69
Industrial Engineered Products 82 - 82 75 - 75
Consumer Products 15 - 15 19 - 19
Chemtura AgroSolutions 33   -   33   14   -   14  
Segment operating income 187   3   190   177   -   177  
 

General corporate expense, including amortization

(51 ) - (51 ) (54 ) - (54 )
Facility closures, severance and related costs (23 ) 23 - - - -
Impairment charges (1 ) 1 - (3 ) 3 -
Changes in estimates related to expected allowable claims (2 ) 2   -   (1 ) 1   -  
Total operating income $ 110   $ 29   $ 139   $ 119   $ 4   $ 123  
 

Managed Basis Adjustments consist of the following:

 
Accelerated recognition of asset retirement obligations $ 2 $ (1 )
Accelerated depreciation of property, plant and equipment 1 1
Facility closures, severance and related costs 23 -
Impairment charges 1 3
Changes in estimates related to expected allowable claims 2   1  
$ 29   $ 4  
 

DEPRECIATION AND AMORTIZATION

 
Industrial Performance Products $ 19 $ (1 ) $ 18 $ 18 $ - $ 18
Industrial Engineered Products 20 - 20 22 (1 ) 21
Consumer Products 5 - 5 5 - 5
Chemtura AgroSolutions 7 - 7 5 - 5
General corporate expense 17 - 17 21 - 21
           
Total depreciation and amortization $ 68   $ (1 ) $ 67   $ 71   $ (1 ) $ 70  
 

NON-CASH STOCK-BASED COMPENSATION EXPENSE

 
Industrial Performance Products

 

$ 1 $ 2
Industrial Engineered Products 1 1
Consumer Products - 1
Chemtura AgroSolutions 1 1
General corporate expense 7 11
   
Total non-cash stock-based compensation expense $ 10   $ 16  
 

Adjusted EBITDA by Segment:

 
Industrial Performance Products $ 79 $ 89
Industrial Engineered Products 103 97
Consumer Products 20 25
Chemtura AgroSolutions 41 20
General corporate expense (27 ) (22 )
   
Adjusted EBITDA $ 216   $ 209  




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