This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Chemtura Reports Fourth Quarter And Full Year 2012 Financial Results

Stocks in this article: CHMT

https://event.webcasts.com/starthere.jsp?ei=1012264

Chemtura Corporation, with 2012 sales of $2.6 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: impairment charges; changes in our pension plans as a result of dispositions, merger or significant plan amendments, and the release of cumulative translation adjustments upon the complete or substantial liquidation of any majority-owned entity. 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 and faster growing regions;
  • 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 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;
  • 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 strategic acquisitions and divestitures;
  • 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 Years ended December 31, 2012 and 2011 11
 
Consolidated Statements of Comprehensive Income (Unaudited) -
Quarters and Years ended December 31, 2012 and 2011 12
 
Consolidated Balance Sheets - December 31, 2012 (Unaudited) and
December 31, 2011 13
 
Condensed Consolidated Statements of Cash Flows (Unaudited) -
Years ended December 31, 2012 and 2011 14
 
Segment Net Sales and Operating Income (Unaudited) -
Quarters and Years ended December 31, 2012 and 2011 15
 
Supplemental Schedules
 
Major Factors Affecting Net Sales and Operating Results (Unaudited) -
Quarter and Year ended December 31, 2012 versus 2011 16
 
GAAP and Managed Basis Consolidated Statements of Operations (Unaudited) -
Quarters ended December 31, 2012 and 2011 17
 
GAAP and Managed Basis Consolidated Statements of Operations (Unaudited) -
Years ended December 31, 2012 and 2011 18
 
GAAP and Managed Basis Segment Net Sales and Operating Income (Unaudited) -
Quarters ended December 31, 2012 and 2011 19
 
GAAP and Managed Basis Segment Net Sales and Operating Income (Unaudited) -
Years ended December 31, 2012 and 2011 20
 
 
CHEMTURA CORPORATION
Consolidated Statements of Operations (Unaudited)
(In millions, except per share data)
 
Quarters Ended December 31, Years Ended December 31,
2012 2011 2012 2011
 
Net sales $ 622 $ 578 $ 2,629 $ 2,606
 
Cost of goods sold 470 428 1,938 1,939
Gross profit 152 150 691 667
Gross profit % 24% 26% 26% 26%
 
Selling, general and administrative 76 80 299 326
Depreciation and amortization 30 29 120 123
Research and development 10 8 44 38
Facility closures, severance and related costs 3 3 12 3
Gain on sale of business - (27) - (27)
Impairment charges - 1 - 4
Changes in estimates related to expected allowable claims - 2 1 3
Equity loss 1 1 4 1
       
Operating income 32 53 211 196
Interest expense (17) (15) (64) (63)
Loss on early extinguishment of debt (1) - (1) -
Other income, net 24 - 21 -
Reorganization items, net (1) - (5) (19)
       
Earnings from continuing operations before income taxes 37 38 162 114
Income tax expense (10) (14) (28) (20)
       
Earnings from continuing operations 27 24 134 94
 
(Loss) earnings from discontinued operations, net of tax (7) 10 (34) 26
       
Net earnings 20 34 100 120
 
Less: Net loss (earnings) attributable to non-controlling interests - - 1 (1)
       
Net earnings attributable to Chemtura $ 20 $ 34 $ 101 $ 119
 
Basic and diluted per share information - attributable to Chemtura:
Earnings from continuing operations, net of tax $ 0.27 $ 0.24 $ 1.35 $ 0.94
(Loss) earnings from discontinued operations, net of tax (0.07) 0.10 (0.33) 0.25
Net earnings attributable to Chemtura $ 0.20 $ 0.34 $ 1.02 $ 1.19
 
Weighted average shares outstanding - Basic 97.9 99.6 98.2 100.1
 
Weighted average shares outstanding - Diluted 99.0 100.1 98.8 100.3
 
Amounts attributable to Chemtura Stockholders:
Earnings from continuing operations, net of tax $ 27 $ 24 $ 134 $ 94
(Loss) earnings from discontinued operations, net of tax (7) 10 (33) 25
Net earnings attributable to Chemtura $ 20 $ 34 $ 101 $ 119
 
CHEMTURA CORPORATION    
Consolidated Statements of Comprehensive Income (Unaudited)
(In millions)
 
Quarters Ended December 31, Years Ended December 31,
2012 2011 2012 2011
 
Net earnings $ 20 $ 34 $ 100 $ 120
 
Other comprehensive loss, net of tax:
Foreign currency translation adjustments (21) (15) (6) (35)
Unrecognized pension and other post-retirement benefit costs (82) (41) (76) (35)
       
Comprehensive (loss) income (83) (22) 18 50
 
Comprehensive loss (income) attributable to the non-controlling interest - - 1 (1)
       
Comprehensive (loss) income attributable to Chemtura $ (83) $ (22) $ 19 $ 49
 
CHEMTURA CORPORATION    
Consolidated Balance Sheets
(In millions)
 
December 31, December 31,
2012 2011
(Unaudited)
ASSETS
 
CURRENT ASSETS
Cash and cash equivalents $ 363 $ 179
Restricted cash - 5
Accounts receivable 405 400
Inventories 468 455
Other current assets 142 133
Current assets of discontinued operations 234 149
Total current assets 1,612 1,321
 
NON-CURRENT ASSETS
Property, plant and equipment, net 719 669
Goodwill 177 174
Intangible assets, net 348 363
Other assets 174 190
Non-current assets of discontinued operations - 138
 
Total Assets $ 3,030 $ 2,855
 
LIABILITIES AND STOCKHOLDERS' EQUITY
 
CURRENT LIABILITIES
Short-term borrowings $ 5 $ 4
Accounts payable 175 149
Accrued expenses 194 189
Income taxes payable 12 17
Current liabilities of discontinued operations 125 31
Total current liabilities 511 390
 
NON-CURRENT LIABILITIES
Long-term debt 871 748
Pension and post-retirement health care liabilities 393 389
Other liabilities 187 198
Non-current liabilities of discontinued operations - 84
Total liabilities 1,962 1,809
 
STOCKHOLDERS' EQUITY
Common stock 1 1
Additional paid-in capital 4,366 4,353
Accumulated deficit (2,848) (2,949)
Accumulated other comprehensive loss (428) (346)
Treasury stock (30) (22)
Total Chemtura stockholders' equity 1,061 1,037
 
Non-controlling interest - Continuing operations - 1
Non-controlling interest - Discontinued operations 7 8
Total Non-controlling interest 7 9
Total stockholders' equity 1,068 1,046
 
Total Liabilities and Stockholders' Equity $ 3,030 $ 2,855
 
CHEMTURA CORPORATION    
Condensed Consolidated Statements of Cash Flows (Unaudited)
(In millions)
 
Years Ended December 31,
Increase (decrease) to cash 2012 2011
CASH FLOWS FROM OPERATING ACTIVITIES
Net earnings $ 100 $ 120
Adjustments to reconcile net earnings
to net cash provided by operating activities:
Gain on sale of business - (27)
Impairment charges 47 4
Release of translation adjustments from liquidation of entities (21) -
Loss on early extinguishment of debt 1 -
Depreciation and amortization 139 140
Stock-based compensation expense 24 26
Reorganization items, net 1 2
Changes in estimates related to expected allowable claims 1 3
Equity income (3) (3)
Changes in assets and liabilities, net (71) (83)
Net cash provided by operating activities 218 182
 
CASH FLOWS FROM INVESTING ACTIVITIES
Net proceeds from divestments 9 8
Payments for acquisitions - (35)
Capital expenditures (149) (154)
Net cash used in investing activities (140) (181)
 
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from Term Loan 125 -
(Payments on) proceeds from other short term borrowings, net (3) 3
Common shares acquired (20) (22)
Payments for debt issuance costs (2) -
Proceeds from exercise of stock options 5 1
Net cash provided by (used in) financing activities 105 (18)
 
CASH
Effect of exchange rates on cash and cash equivalents 2 (4)
 
Change in cash and cash equivalents 185 (21)
Cash and cash equivalents at beginning of period 180 201
 
Cash and cash equivalents at end of period $ 365 $ 180
 
Cash and cash equivalents at end of period - Continuing operations $ 363 $ 179
 
Cash and cash equivalents at end of period - Discontinued operations $ 2 $ 1
 
CHEMTURA CORPORATION    
Segment Net Sales and Operating Income (Unaudited)
(In millions)
 
Quarters Ended December 31, Years Ended December 31,
2012 2011 2012 2011
NET SALES
 
Petroleum additives $ 146 $ 141 $ 600 $ 634
Urethanes 68 70 291 305
Industrial Performance Products 214 211 891 939
Bromine based & related products 181 149 730 688
Organometallics 40 45 166 181
Industrial Engineered Products 221 194 896 869
Consumer Products 89 87 433 422
Chemtura AgroSolutions 98 86 409 376
Total net sales $ 622 $ 578 $ 2,629 $ 2,606
 
OPERATING INCOME
 
Industrial Performance Products $ 20 $ 28 $ 102 $ 116
Industrial Engineered Products 28 30 140 130
Consumer Products 5 1 30 26
Chemtura AgroSolutions 11 5 65 30
Segment operating income 64 64 337 302
 

General corporate expense, including amortization

(29) (32) (113) (123)
Facility closures, severance and related costs (3) (3) (12) (3)
Gain on sale of business - 27 - 27
Impairment charges - (1) - (4)
Changes in estimates related to expected allowable claims - (2) (1) (3)
Total operating income $ 32 $ 53 $ 211 $ 196
 
CHEMTURA CORPORATION        
Major Factors Affecting Net Sales and Operating Results (Unaudited)
Quarter and Year ended December 31, 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 December 31, Year ended December 31,
Net Earnings before Net Earnings before

    Sales    

income taxes

    Sales    

income taxes
 
2011 $ 578 $ 38 $ 2,606 $ 114
 
2011 Accelerated recognition of asset retirement obligations - 1 - -
2011 UK pension benefit matter - 8 - 8
2011 Loss on disposal of assets - - - 1
2011 Accelerated depreciation of property, plant and equipment - 1 - 2
2011 Facility closures, severance and related costs - 3 - 3
2011 Gain on sale of business - (27) - (27)
2011 Impairment Charges - 1 - 4
2011 Changes in estimates related to expected allowable claims - 2 - 3
2011 Reorganization items, net - - - 19
578 27 2,606 127
 
Changes in selling prices 3 3 75 75
Unit volume and mix 45 10 (17) (4)
Foreign currency impact - operating income (4) (1) (35) (7)
Lower (higher) raw materials and energy costs - 1 - (6)
Manufacturing cost impacts - (13) - (37)
Changes in SGA&R, excluding foreign exchange impact - (9) - 7
(Higher) lower depreciation and amortization expense - (2) - 1
Higher interest expense - (2) - (1)
Foreign currency impact - other income (expense), net - 2 - (3)
Other - 5 - 8
622 21 2,629 160
 
2012 Accelerated depreciation of property, plant and equipment - - - -
2012 Facility closures, severance and related costs - (3) - (12)
2012 Impairment Charges - - - -
2012 Changes in estimates related to expected allowable claims - - - (1)
2012 Loss on early extinguishment of debt - (1) - (1)
2012 Release of translation adjustments from liquidation of entities - 21 - 21
2012 Reorganization items, net - (1) - (5)
       
2012 $ 622 $ 37 $ 2,629 $ 162
 
CHEMTURA CORPORATION    
GAAP and Managed Basis Consolidated Statements of Operations (Unaudited)
(In millions, except per share data)
 
Quarter ended December 31, 2012 Quarter ended December 31, 2011
Managed Basis Managed Basis

    GAAP    

Adjustments Managed Basis

    GAAP    

Adjustments Managed Basis
 
Net sales $ 622 $ - $ 622 $ 578 $ - $ 578
 
Cost of goods sold 470 - 470 428 (1) 427
Gross profit 152 - 152 150 1 151
Gross profit % 24% 24% 26% 26%
 
Selling, general and administrative 76 - 76 80 (8) 72
Depreciation and amortization 30 - 30 29 (1) 28
Research and development 10 - 10 8 - 8
Facility closures, severance and related costs 3 (3) - 3 (3) -
Gain on sale of business - - - (27) 27 -
Impairment charges - - - 1 (1) -
Changes in estimates related to expected allowable claims - - - 2 (2) -
Equity loss 1 - 1 1 - 1
 
Operating income 32 3 35 53 (11) 42
Interest expense (17) - (17) (15) - (15)
Loss on early extinguishment of debt (1) 1 - - - -
Other income, net 24 (21) 3 - - -
Reorganization items, net (1) 1 - - - -
 
Earnings from continuing operations before income taxes 37 (16) 21 38 (11) 27
Income tax expense (10) 4 (6) (14) 6 (8)
           
Earnings from continuing operations 27 (12) 15 24 (5) 19
 
(Loss) earnings from discontinued operations, net of tax (7) 7 - 10 (10) -
           
Net earnings attributable to Chemtura $ 20 $ (5) $ 15 $ 34 $ (15) $ 19
 
Basic and diluted per share information - attributable to Chemtura:
Earnings from continuing operations, net of tax $ 0.27 $ 0.15 $ 0.24 $ 0.19
(Loss) earnings from discontinued operations, net of tax (0.07) - 0.10 -
Net earnings $ 0.20 $ 0.15 $ 0.34 $ 0.19
 
Weighted average shares outstanding - Basic 97.9 97.9 99.6 99.6
 
Weighted average shares outstanding - Diluted 99.0 99.0 100.1 100.1
 
 
Managed Basis Adjustments consist of the following:
 
Accelerated recognition of asset retirement obligations $ - $ 1
UK pension benefit matter - 8
Accelerated depreciation of property, plant and equipment - 1
Facility closures, severance and related costs 3 3
Gain on sale of business - (27)
Impairment charges - 1
Changes in estimates related to expected allowable claims - 2
Loss on early extinguishment of debt 1 -
Release of translation adjustments from liquidation of entities (21) -
Reorganization items, net 1 -
Pre-tax (16) (11)
 
Adjustment to apply a Managed Basis effective tax rate 4 6
Loss (earnings) from discontinued operations, net of tax 7 (10)
After-tax $ (5) $ (15)
 
Adjusted EBITDA consists of the following:
 
Operating income - GAAP $ 32 $ 53
Accelerated recognition of asset retirement obligations - 1
UK pension benefit matter - 8
Accelerated depreciation of property, plant and equipment - 1
Facility closures, severance and related costs 3 3
Gain on sale of business - (27)
Impairment charges - 1
Changes in estimates related to expected allowable claims - 2
Operating income - Managed Basis 35 42
 
Depreciation and amortization - Managed Basis 30 28
Non-cash stock-based compensation expense 10 4
   
Adjusted EBITDA $ 75 $ 74
 
CHEMTURA CORPORATION            
GAAP and Managed Basis Consolidated Statements of Operations (Unaudited)
(In millions, except per share data)
 
Year ended December 31, 2012 Year ended December 31, 2011
Managed Basis Managed Basis

    GAAP    

Adjustments Managed Basis

    GAAP    

Adjustments Managed Basis
 
Net sales $ 2,629 $ - $ 2,629 $ 2,606 $ - $ 2,606
 
Cost of goods sold 1,938 - 1,938 1,939 - 1,939
Gross profit 691 - 691 667 - 667
Gross profit % 26% 26% 26% 26%
 
Selling, general and administrative 299 - 299 326 (9) 317
Depreciation and amortization 120 - 120 123 (2) 121
Research and development 44 - 44 38 - 38
Facility closures, severance and related costs 12 (12) - 3 (3) -
Gain on sale of business - - - (27) 27 -
Impairment charges - - - 4 (4) -
Changes in estimates related to expected allowable claims 1 (1) - 3 (3) -
Equity loss 4 - 4 1 - 1
 
Operating income 211 13 224 196 (6) 190
Interest expense (64) - (64) (63) - (63)
Loss on early extinguishment of debt (1) 1 - - - -
Other income, net 21 (21) - - - -
Reorganization items, net (5) 5 - (19) 19 -
 
Earnings from continuing operations before income taxes 162 (2) 160 114 13 127
Income tax expense (28) (17) (45) (20) (16) (36)
           
Earnings from continuing operations 134 (19) 115 94 (3) 91
 
(Loss) earnings from discontinued operations, net of tax (34) 34 - 26 (26) -
           
Net earnings 100 15 115 120 (29) 91
 
Less: Net loss (earnings) attributable to non-controlling interests 1 (1) - (1) 1 -
           
Net earnings attributable to Chemtura $ 101 $ 14 $ 115 $ 119 $ (28) $ 91
 
Basic and diluted per share information - attributable to Chemtura:
Earnings from continuing operations, net of tax $ 1.35 $ 1.16 $ 0.94 $ 0.91
(Loss) earnings from discontinued operations, net of tax (0.33) - 0.25 -
Net earnings $ 1.02 $ 1.16 $ 1.19 $ 0.91
 
Weighted average shares outstanding - Basic 98.2 98.2 100.1 100.1
 
Weighted average shares outstanding - Diluted 98.8 98.8 100.3 100.3
 
 
Managed Basis Adjustments consist of the following:
 
UK pension benefit matter $ - $ 8
Loss on disposal of assets - 1
Accelerated depreciation of property, plant and equipment - 2
Facility closures, severance and related costs 12 3
Gain on sale of business - (27)
Impairment charges - 4
Changes in estimates related to expected allowable claims 1 3
Loss on early extinguishment of debt 1 -
Release of translation adjustments from liquidation of entities (21) -
Reorganization items, net 5 19
Pre-tax (2) 13
 
Adjustment to apply a Managed Basis effective tax rate (17) (16)
Loss (earnings) from discontinued operations, net of tax 34 (26)
Non-controlling interests - Discontinued Operations (1) 1
After-tax $ 14 $ (28)
 
Adjusted EBITDA consists of the following:
 
Operating income - GAAP $ 211 $ 196
UK pension benefit matter - 8
Loss on disposal of assets - 1
Accelerated depreciation of property, plant and equipment - 2
Facility closures, severance and related costs 12 3
Gain on sale of business - (27)
Impairment charges - 4
Changes in estimates related to expected allowable claims 1 3
Operating income - Managed Basis 224 190
 
Depreciation and amortization - Managed Basis 120 121
Non-cash stock-based compensation expense 23 25
   
Adjusted EBITDA $ 367 $ 336
 
CHEMTURA CORPORATION            
GAAP and Managed Basis Segment Sales and Operating Income (Unaudited)
(In millions of dollars)
 
Quarter ended December 31, 2012 Quarter ended December 31, 2011
GAAP Managed Basis GAAP Managed Basis
Historical Adjustments Managed Basis Historical Adjustments Managed Basis
 
NET SALES
Industrial Performance Products $ 214 $ - $ 214 $ 211 $ - $ 211
Industrial Engineered Products 221 - 221 194 - 194
Consumer Products 89 - 89 87 - 87
Chemtura AgroSolutions 98 - 98 86 - 86
Total net sales $ 622 $ - $ 622 $ 578 $ - $ 578
 
OPERATING INCOME
 
Industrial Performance Products $ 20 $ - $ 20 $ 28 $ 1 $ 29
Industrial Engineered Products 28 - 28 30 - 30
Consumer Products 5 - 5 1 - 1
Chemtura AgroSolutions 11 - 11 5 1 6
Segment operating income 64 - 64 64 2 66
 

General corporate expense, including amortization

(29) - (29) (32) 8 (24)
Facility closures, severance and related costs (3) 3 - (3) 3 -
Gain on sale of business - - - 27 (27) -
Impairment charges - - - (1) 1 -
Changes in estimates related to expected allowable claims - - - (2) 2 -
Total operating income $ 32 $ 3 $ 35 $ 53 $ (11) $ 42
 
Managed Basis Adjustments consist of the following:
 
Accelerated recognition of asset retirement obligations $ - $ 1
UK pension benefit matter - 8
Accelerated depreciation of property, plant and equipment - 1
Facility closures, severance and related costs 3 3
Gain on sale of business - (27)
Impairment charges - 1
Changes in estimates related to expected allowable claims - 2
$ 3 $ (11)
 
DEPRECIATION AND AMORTIZATION
 
Industrial Performance Products $ 7 $ - $ 7 $ 7 $ - $ 7
Industrial Engineered Products 11 - 11 10 - 10
Consumer Products 3 - 3 2 - 2
Chemtura AgroSolutions 3 - 3 3 (1) 2
General corporate expense 6 - 6 7 - 7
           
Total depreciation and amortization $ 30 $ - $ 30 $ 29 $ (1) $ 28
 
NON-CASH STOCK-BASED COMPENSATION EXPENSE
 
Industrial Performance Products $ 1 $ -
Industrial Engineered Products 1 -
Consumer Products - -
Chemtura AgroSolutions - 1
General corporate expense 8 3
   
Total non-cash stock-based compensation expense $ 10 $ 4
 
Adjusted EBITDA by Segment:
 
Industrial Performance Products $ 28 $ 36
Industrial Engineered Products 40 40
Consumer Products 8 3
Chemtura AgroSolutions 14 9
General corporate expense (15) (14)
   
Adjusted EBITDA $ 75 $ 74
 
CHEMTURA CORPORATION            
GAAP and Managed Basis Segment Sales and Operating Income (Unaudited)
(In millions of dollars)
 
Year ended December 31, 2012 Year ended December 31, 2011
GAAP Managed Basis GAAP Managed Basis
Historical Adjustments Managed Basis Historical Adjustments Managed Basis
 
NET SALES
Industrial Performance Products $ 891 $ - $ 891 $ 939 $ - $ 939
Industrial Engineered Products 896 - 896 869 - 869
Consumer Products 433 - 433 422 - 422
Chemtura AgroSolutions 409 - 409 376 - 376
Total net sales $ 2,629 $ - $ 2,629 $ 2,606 $ - $ 2,606
 
OPERATING INCOME
 
Industrial Performance Products $ 102 $ - $ 102 $ 116 $ 1 $ 117
Industrial Engineered Products 140 - 140 130 - 130
Consumer Products 30 - 30 26 - 26
Chemtura AgroSolutions 65 - 65 30 1 31
Segment operating income 337 - 337 302 2 304
 

General corporate expense, including amortization

(113) - (113) (123) 9 (114)
Facility closures, severance and related costs (12) 12 - (3) 3 -
Gain on sale of business - - - 27 (27) -
Impairment charges - - - (4) 4 -
Changes in estimates related to expected allowable claims (1) 1 - (3) 3 -
Total operating income $ 211 $ 13 $ 224 $ 196 $ (6) $ 190
 
Managed Basis Adjustments consist of the following:
 
UK pension benefit matter $ - $ 8
Loss on disposal of assets - 1
Accelerated depreciation of property, plant and equipment - 2
Facility closures, severance and related costs 12 3
Gain on sale of business - (27)
Impairment charges - 4
Changes in estimates related to expected allowable claims 1 3
$ 13 $ (6)
 
DEPRECIATION AND AMORTIZATION
 
Industrial Performance Products $ 25 $ - $ 25 $ 26 $ - $ 26
Industrial Engineered Products 43 - 43 42 (1) 41
Consumer Products 10 - 10 9 - 9
Chemtura AgroSolutions 13 - 13 10 (1) 9
General corporate expense 29 - 29 36 - 36
           
Total depreciation and amortization $ 120 $ - $ 120 $ 123 $ (2) $ 121
 
NON-CASH STOCK-BASED COMPENSATION EXPENSE
 
Industrial Performance Products $ 2 $ 2
Industrial Engineered Products 2 2
Consumer Products 1 1
Chemtura AgroSolutions 1 2
General corporate expense 17 18
   
Total non-cash stock-based compensation expense $ 23 $ 25
 
Adjusted EBITDA by Segment:
 
Industrial Performance Products $ 129 $ 145
Industrial Engineered Products 185 173
Consumer Products 41 36
Chemtura AgroSolutions 79 42
General corporate expense (67) (60)
   
Adjusted EBITDA $ 367 $ 336
 




5 of 6

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!

Markets

DOW 17,356.87 +288.00 1.69%
S&P 500 2,012.89 +40.15 2.04%
NASDAQ 4,644.3120 +96.4780 2.12%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs