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TheStreet Open House

Chemtura Reports Third Quarter 2012 Financial Results

https://event.webcasts.com/starthere.jsp?ei=1009359

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.

CHEMTURA CORPORATION
Index of Financial Statements and Schedules
 
 

Page

 
Financial Statements
 
Consolidated Statements of Operations (Unaudited) -
Quarters and Nine Months ended September 30, 2012 and 2011 10
 
Consolidated Statements of Comprehensive Income (Unaudited) -
Quarters and Nine Months ended September 30, 2012 and 2011 11
 
Consolidated Balance Sheets - September 30, 2012 (Unaudited) and
December 31, 2011 12
 
Condensed Consolidated Statements of Cash Flows (Unaudited) -
Nine Months ended September 30, 2012 and 2011 13
 
Segment Net Sales and Operating Income (Unaudited) -
Quarters and Nine Months ended September 30, 2012 and 2011 14
 
Supplemental Schedules
 
Major Factors Affecting Net Sales and Operating Results (Unaudited) -
Quarter and Nine Months ended September 30, 2012 versus 2011 15
 
GAAP and Managed Basis Consolidated Statements of Operations (Unaudited) -
Quarters ended September 30, 2012 and 2011 16
 
GAAP and Managed Basis Consolidated Statements of Operations (Unaudited) -
Nine Months ended September 30, 2012 and 2011 17
 
GAAP and Managed Basis Segment Net Sales and Operating Income (Unaudited) -
Quarters ended September 30, 2012 and 2011 18
 
GAAP and Managed Basis Segment Net Sales and Operating Income (Unaudited) -
Nine Months ended September 30, 2012 and 2011 19
CHEMTURA CORPORATION
Consolidated Statements of Operations (Unaudited)
(In millions, except per share data)
       
Quarters Ended September 30, Nine Months Ended September 30,
2012 2011 2012 2011
 
Net sales $ 743 $ 773 $ 2,296 $ 2,348
 
Cost of goods sold 551   599   1,720   1,789  
Gross profit 192 174 576 559
Gross profit % 26 % 23 % 25 % 24 %
 
Selling, general and administrative 77 84 233 255
Depreciation and amortization 36 35 104 106
Research and development 12 11 37 33
Facility closures, severance and related costs 1 - 24 -
Impairment charges 35 - 36 3
Changes in estimates related to expected allowable claims (1 ) - 1 1
Equity income (1 ) (1 ) (2 ) (3 )
       
Operating income 33 45 143 164
Interest expense (17 ) (16 ) (47 ) (48 )
Other expense, net (6 ) (1 ) (3 ) (1 )
Reorganization items, net (1 ) (6 ) (4 ) (19 )
       
Earnings before income taxes 9 22 89 96
Income tax expense (2 ) (13 ) (9 ) (10 )
       
Net earnings 7 9 80 86
 
Less: Net loss (earnings) attributable to non-controlling interests 2 - 1 (1 )
       
Net earnings attributable to Chemtura $ 9   $ 9   $ 81   $ 85  
 

Basic and diluted per share information - attributable to Chemtura:

Net earnings attributable to Chemtura $ 0.09   $ 0.09   $ 0.82   $ 0.85  
 
Weighted average shares outstanding - Basic 97.9   100.3   98.4   100.2  
 
Weighted average shares outstanding - Diluted 98.2   100.5   98.8   100.4  
CHEMTURA CORPORATION
Consolidated Statements of Comprehensive Income (Unaudited)
(In millions)
       
Quarters Ended September 30, Nine Months Ended September 30,
2012 2011 2012 2011
 
Net earnings $ 7 $ 9 $ 80 $ 86
 
Other comprehensive income (loss), net of tax:
Foreign currency translation adjustments 37 (64 ) 15 (20 )
Unrecognized pension and other post-retirement benefit costs 7 3 6 6
       
Comprehensive income (loss) 51 (52 ) 101 72
 
Comprehensive loss (income) attributable to the non-controlling interest 2 - 1 (1 )
       
Comprehensive income (loss) attributable to Chemtura $ 53 $ (52 ) $ 102 $ 71  
CHEMTURA CORPORATION
Consolidated Balance Sheets
(In millions)
   
September 30, December 31,
2012 2011
(Unaudited)
ASSETS
 
CURRENT ASSETS
Cash and cash equivalents $ 187 $ 180
Restricted cash - 5
Accounts receivable 490 458
Inventories 566 542
Other current assets 173   136  
Total current assets 1,416 1,321
 
NON-CURRENT ASSETS
Property, plant and equipment, net 742 752
Goodwill 177 174
Intangible assets, net 369 392
Other assets 216   216  
 
Total Assets $ 2,920   $ 2,855  
 
LIABILITIES AND STOCKHOLDERS' EQUITY
 
CURRENT LIABILITIES
Short-term borrowings $ 5 $ 5
Accounts payable 210 173
Accrued expenses 195 194
Income taxes payable 10   18  
Total current liabilities 420 390
 
NON-CURRENT LIABILITIES
Long-term debt 749 748
Pension and post-retirement health care liabilities 413 460
Other liabilities 200   211  
Total liabilities 1,782   1,809  
 
STOCKHOLDERS' EQUITY
Common stock 1 1
Additional paid-in capital 4,356 4,353
Accumulated deficit (2,868 ) (2,949 )
Accumulated other comprehensive loss (325 ) (346 )
Treasury stock (33 ) (22 )
Total Chemtura stockholders' equity 1,131 1,037
 
Non-controlling interest 7   9  
Total stockholders' equity 1,138   1,046  
 
Total Liabilities and Stockholders' Equity $ 2,920   $ 2,855  
CHEMTURA CORPORATION
Condensed Consolidated Statements of Cash Flows (Unaudited)
(In millions)
   
Nine Months Ended September 30,

Increase (decrease) to cash

2012 2011
CASH FLOWS FROM OPERATING ACTIVITIES
Net earnings $ 80 $ 86
Adjustments to reconcile net earnings
to net cash provided by operating activities:
Impairment charges 36 3
Depreciation and amortization 104 106
Stock-based compensation expense 14 22
Reorganization items, net 1 2
Changes in estimates related to expected allowable claims 1 1
Equity income (2 ) (3 )
Changes in assets and liabilities, net (123 ) (126 )
Net cash provided by operating activities 111   91  
 
CASH FLOWS FROM INVESTING ACTIVITIES
Net proceeds from divestments 9 -
Payments for acquisitions - (33 )
Capital expenditures (94 ) (92 )
Net cash used in investing activities (85 ) (125 )
 
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from ABL Facility, net - 20
Proceeds A/R Financing Facility, net 2 -
(Payments on) proceeds from other short term borrowings, net (3 ) 5
Common shares acquired (20 ) -
Payments for debt issuance costs (1 ) -
Proceeds from exercise of stock options 2   1  
Net cash (used in) provided by financing activities (20 ) 26  
 
CASH
Effect of exchange rates on cash and cash equivalents 1   (2 )
 
Change in cash and cash equivalents 7 (10 )
Cash and cash equivalents at beginning of period 180   201  
 
Cash and cash equivalents at end of period $ 187   $ 191  
CHEMTURA CORPORATION
Segment Net Sales and Operating Income (Unaudited)
(In millions)
       
Quarters Ended September 30, Nine Months Ended September 30,
2012 2011 2012 2011
NET SALES
 
Industrial Performance Products $ 314 $ 342 $ 966 $ 1,048
Industrial Engineered Products 213 222 675 675
Consumer Products 102 104 344 335
Chemtura AgroSolutions 114   105   311   290  
Total net sales $ 743   $ 773   $ 2,296   $ 2,348  
 
OPERATING INCOME
 
Industrial Performance Products $ 31 $ 31 $ 88 $ 100
Industrial Engineered Products 30 25 112 100
Consumer Products 10 6 25 25
Chemtura AgroSolutions 21   11   54   25  
Segment operating income 92   73   279   250  
 
General corporate expense, including
amortization (24 ) (28 ) (75 ) (82 )
Facility closures, severance and related costs (1 ) - (24 ) -
Impairment charges (35 ) - (36 ) (3 )
Changes in estimates related to expected allowable claims 1   -   (1 ) (1 )
Total operating income $ 33   $ 45   $ 143   $ 164  
CHEMTURA CORPORATION
Major Factors Affecting Net Sales and Operating Results (Unaudited)
Quarter and Nine Months Ended September 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 September 30, Nine Months Ended September 30,
Net Earnings before Net Earnings before
Sales income taxes Sales income taxes
 
2011 $ 773 $ 22 $ 2,348 $ 96
 
2011 Accelerated recognition of asset retirement obligations - - - (1 )
2011 Loss on disposal of assets - 1 - 1
2011 Accelerated depreciation of property, plant and equipment - - - 1
2011 Impairment Charges - - - 3
2011 Changes in estimates related to expected allowable claims - - 1
2011 Reorganization items, net -   6   -   19  
773 29 2,348 120
 
Changes in selling prices 9 9 75 75
Unit volume and mix (26 ) (4 ) (89 ) (24 )
Foreign currency impact - operating income (13 ) - (38 ) (8 )
Lower (higher) raw materials and energy costs - 9 - (5 )
Manufacturing cost impacts - (1 ) - (22 )
Changes in SGA&R, excluding foreign exchange impact - 3 - 16
Lower depreciation and amortization expense - - - 3
(Higher) lower interest expense - (1 ) - 1
Foreign currency impact - other expense, net - (6 ) - (5 )
Other -   8   -   7  
743 46 2,296 158
 
2012 Accelerated recognition of asset retirement obligations - - - (2 )
2012 Accelerated depreciation of property, plant and equipment - (1 ) - (2 )
2012 Facility closures, severance and related costs - (1 ) - (24 )
2012 Impairment Charges - (35 ) - (36 )
2012 Changes in estimates related to expected allowable claims - 1 - (1 )
2012 Reorganization items, net - (1 ) - (4 )
       
2012 $ 743   $ 9   $ 2,296   $ 89  
CHEMTURA CORPORATION
GAAP and Managed Basis Consolidated Statements of Operations (Unaudited)
(In millions, except per share data)
           
Quarter ended September 30, 2012 Quarter ended September 30, 2011
Managed Basis Managed Basis
GAAP Adjustments Managed Basis GAAP Adjustments Managed Basis
 
Net sales $ 743 $ - $ 743 $ 773 $ - $ 773
 
Cost of goods sold 551   -   551   599   -   599  
Gross profit 192 - 192 174 - 174
Gross profit % 26 % 26 % 23 % 23 %
 
Selling, general and administrative 77 - 77 84 (1 ) 83
Depreciation and amortization 36 (1 ) 35 35 - 35
Research and development 12 - 12 11 - 11
Facility closures, severance and related costs 1 (1 ) - - - -
Impairment charges 35 (35 ) - - - -
Changes in estimates related to expected allowable claims (1 ) 1 - - - -
Equity income (1 ) -   (1 ) (1 ) -   (1 )
 
Operating income 33 36 69 45 1 46
Interest expense (17 ) - (17 ) (16 ) - (16 )
Other expense, net (6 ) - (6 ) (1 ) - (1 )
Reorganization items, net (1 ) 1   -   (6 ) 6   -  
 
Earnings before income taxes 9 37 46 22 7 29
Income tax expense (2 ) (10 ) (12 ) (13 ) 5 (8 )
           
Net earnings 7 27 34 9 12 21
 
Less: Net loss attributable to non-controlling interests 2 (2 ) - - - -
           
Net earnings attributable to Chemtura $ 9   $ 25   $ 34   $ 9   $ 12   $ 21  
 

Basic and diluted per share information - attributable to Chemtura:

Net earnings $ 0.09   $ 0.35   $ 0.09   $ 0.21  
 
Weighted average shares outstanding - Basic 97.9   97.9   100.3   100.3  
 
Weighted average shares outstanding - Diluted 98.2   98.2   100.5   100.5  
 
 
Managed Basis Adjustments consist of the following:
 
Loss on disposal of assets $ - $ 1
Accelerated depreciation of property, plant and equipment 1 -
Facility closures, severance and related costs 1 -
Impairment charges 35 -
Changes in estimates related to expected allowable claims (1 ) -
Reorganization items, net 1   6  
Pre-tax 37 7
 
Adjustment to apply a Managed Basis effective tax rate (10 ) 5
Non-controlling interests - Impairment charges (2 ) -  
After-tax $ 25   $ 12  
 

Adjusted EBITDA consists of the following:

 
Operating income - GAAP $ 33 $ 45
Loss on disposal of assets - 1
Accelerated depreciation of property, plant and equipment 1 -
Facility closures, severance and related costs 1 -
Impairment charges 35 -
Changes in estimates related to expected allowable claims (1 ) -  
Operating income - Managed Basis 69 46
 
Depreciation and amortization - Managed Basis 35 35
Non-cash stock-based compensation expense 4 6
   
Adjusted EBITDA $ 108   $ 87  
CHEMTURA CORPORATION
GAAP and Managed Basis Consolidated Statements of Operations (Unaudited)
(In millions, except per share data)
           
Nine Months Ended September 30, 2012 Nine Months Ended September 30, 2011
Managed Basis Managed Basis
GAAP Adjustments Managed Basis GAAP Adjustments Managed Basis
 
Net sales $ 2,296 $ - $ 2,296 $ 2,348 $ - $ 2,348
 
Cost of goods sold 1,720   (2 ) 1,718   1,789   1   1,790  
Gross profit 576 2 578 559 (1 ) 558
Gross profit % 25 % 25 % 24 % 24 %
 
Selling, general and administrative 233 - 233 255 (1 ) 254
Depreciation and amortization 104 (2 ) 102 106 (1 ) 105
Research and development 37 - 37 33 - 33
Facility closures, severance and related costs 24 (24 ) - - - -
Impairment charges 36 (36 ) - 3 (3 ) -
Changes in estimates related to expected allowable claims 1 (1 ) - 1 (1 ) -
Equity income (2 ) -   (2 ) (3 ) -   (3 )
 
Operating income 143 65 208 164 5 169
Interest expense (47 ) - (47 ) (48 ) - (48 )
Other expense, net (3 ) - (3 ) (1 ) - (1 )
Reorganization items, net (4 ) 4   -   (19 ) 19   -  
 
Earnings before income taxes 89 69 158 96 24 120
Income tax expense (9 ) (35 ) (44 ) (10 ) (23 ) (33 )
 
Net earnings 80 34 114 86 1 87
 
Less: Net loss (earnings) attributable to non-controlling interests 1 (2 ) (1 ) (1 ) - (1 )
           
Net earnings attributable to Chemtura $ 81   $ 32   $ 113   $ 85   $ 1   $ 86  
 

Basic and diluted per share information - attributable to Chemtura:

Net earnings $ 0.82   $ 1.14   $ 0.85   $ 0.86  
 
Weighted average shares outstanding - Basic 98.4   98.4   100.2   100.2  
 
Weighted average shares outstanding - Diluted 98.8   98.8   100.4   100.4  
 
 
Managed Basis Adjustments consist of the following:
 
Accelerated recognition of asset retirement obligations $ 2 $ (1 )
Loss on disposal of assets - 1
Accelerated depreciation of property, plant and equipment 2 1
Facility closures, severance and related costs 24 -
Impairment charges 36 3
Changes in estimates related to expected allowable claims 1 1
Reorganization items, net 4   19  
Pre-tax 69 24
 
Adjustment to apply a Managed Basis effective tax rate (35 ) (23 )
Non-controlling interests - Impairment charges (2 ) -  
After-tax $ 32   $ 1  
 
Adjusted EBITDA consists of the following:
 
Operating income - GAAP $ 143 $ 164
Accelerated recognition of asset retirement obligations 2 (1 )
Loss on disposal of assets - 1
Accelerated depreciation of property, plant and equipment 2 1
Facility closures, severance and related costs 24 -
Impairment charges 36 3
Changes in estimates related to expected allowable claims 1   1  
Operating income - Managed Basis 208 169
 
Depreciation and amortization - Managed Basis 102 105
Non-cash stock-based compensation expense 14 22
   
Adjusted EBITDA $ 324   $ 296  
CHEMTURA CORPORATION
GAAP and Managed Basis Segment Sales and Operating Income (Unaudited)
(In millions of dollars)
           
Quarter ended September 30, 2012 Quarter ended September 30, 2011
GAAP Managed Basis GAAP Managed Basis
Historical Adjustments Managed Basis Historical Adjustments Managed Basis
 
NET SALES
Industrial Performance Products $ 314 $ - $ 314 $ 342 $ - $ 342
Industrial Engineered Products 213 - 213 222 - 222
Consumer Products 102 - 102 104 - 104
Chemtura AgroSolutions 114   -   114   105   - 105  
Total net sales $ 743   $ -   $ 743   $ 773   $ - $ 773  
 
OPERATING INCOME
 
Industrial Performance Products $ 31 $ 1 $ 32 $ 31 $ - $ 31
Industrial Engineered Products 30 - 30 25 - 25
Consumer Products 10 - 10 6 - 6
Chemtura AgroSolutions 21   -   21   11   - 11  
Segment operating income 92   1   93   73   - 73  
 
General corporate expense, including
amortization (24 ) - (24 ) (28 ) 1 (27 )
Facility closures, severance and related costs (1 ) 1 - - - -
Impairment charges (35 ) 35 - - - -
Changes in estimates related to expected allowable claims 1   (1 ) -   -   - -  
Total operating income $ 33   $ 36   $ 69   $ 45   $ 1 $ 46  
 

Managed Basis Adjustments consist of the following:

 
Loss on disposal of assets $ - $ 1
Accelerated depreciation of property, plant and equipment 1 -
Facility closures, severance and related costs 1 -
Impairment charges 35 -
Changes in estimates related to expected allowable claims (1 ) -
$ 36   $ 1
 

DEPRECIATION AND AMORTIZATION

 
Industrial Performance Products $ 10 $ (1 ) $ 9 $ 10 $ - $ 10
Industrial Engineered Products 12 - 12 10 - 10
Consumer Products 2 - 2 2 - 2
Chemtura AgroSolutions 3 - 3 2 - 2
General corporate expense 9 - 9 11 - 11
           
Total depreciation and amortization $ 36   $ (1 ) $ 35   $ 35   $ - $ 35  
 

NON-CASH STOCK-BASED COMPENSATION EXPENSE

 
Industrial Performance Products $ 1 $ 1
Industrial Engineered Products - 1
Consumer Products 1 -
General corporate expense 2 4
   
Total non-cash stock-based compensation expense $ 4   $ 6  
 

Adjusted EBITDA by Segment:

 
Industrial Performance Products $ 42 $ 42
Industrial Engineered Products 42 36
Consumer Products 13 8
Chemtura AgroSolutions 24 13
General corporate expense (13 ) (12 )
   
Adjusted EBITDA $ 108   $ 87  
CHEMTURA CORPORATION
GAAP and Managed Basis Segment Sales and Operating Income (Unaudited)
(In millions of dollars)
           
Nine Months Ended September 30, 2012 Nine Months Ended September 30, 2011
GAAP Managed Basis GAAP Managed Basis
Historical Adjustments Managed Basis Historical Adjustments Managed Basis
 
NET SALES
Industrial Performance Products $ 966 $ - $ 966 $ 1,048 $ - $ 1,048
Industrial Engineered Products 675 - 675 675 - 675
Consumer Products 344 - 344 335 - 335
Chemtura AgroSolutions 311   -   311   290   -   290  
Total net sales $ 2,296   $ -   $ 2,296   $ 2,348   $ -   $ 2,348  
 
OPERATING INCOME
 
Industrial Performance Products $ 88 $ 4 $ 92 $ 100 $ - $ 100
Industrial Engineered Products 112 - 112 100 - 100
Consumer Products 25 - 25 25 - 25
Chemtura AgroSolutions 54   -   54   25   -   25  
Segment operating income 279   4   283   250   -   250  
 
General corporate expense, including
amortization (75 ) - (75 ) (82 ) 1 (81 )
Facility closures, severance and related costs (24 ) 24 - - - -
Impairment charges (36 ) 36 - (3 ) 3 -
Changes in estimates related to expected allowable claims (1 ) 1   -   (1 ) 1   -  
Total operating income $ 143   $ 65   $ 208   $ 164   $ 5   $ 169  
 

Managed Basis Adjustments consist of the following:

 
Accelerated recognition of asset retirement obligations $ 2 $ (1 )
Loss on disposal of assets - 1
Accelerated depreciation of property, plant and equipment 2 1
Facility closures, severance and related costs 24 -
Impairment charges 36 3
Changes in estimates related to expected allowable claims 1   1  
$ 65   $ 5  
 

DEPRECIATION AND AMORTIZATION

 
Industrial Performance Products $ 29 $ (2 ) $ 27 $ 28 $ - $ 28
Industrial Engineered Products 32 - 32 32 (1 ) 31
Consumer Products 7 - 7 7 - 7
Chemtura AgroSolutions 10 - 10 7 - 7
General corporate expense 26 - 26 32 - 32
           
Total depreciation and amortization $ 104   $ (2 ) $ 102   $ 106   $ (1 ) $ 105  
 

NON-CASH STOCK-BASED COMPENSATION EXPENSE

 
Industrial Performance Products $ 2 $ 3
Industrial Engineered Products 1 2
Consumer Products 1 1
Chemtura AgroSolutions 1 1
General corporate expense 9 15
   
Total non-cash stock-based compensation expense $ 14   $ 22  
 

Adjusted EBITDA by Segment:

 
Industrial Performance Products $ 121 $ 131
Industrial Engineered Products 145 133
Consumer Products 33 33
Chemtura AgroSolutions 65 33
General corporate expense (40 ) (34 )
   
Adjusted EBITDA $ 324   $ 296  




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