Celanese Corporation (NYSE: CE), a global chemical and specialty
materials company, today reported third quarter 2024 U.S. GAAP
diluted earnings per share of $1.08 and adjusted earnings per share
of $2.44. The Company generated net sales of $2.6 billion in the
quarter, down slightly from the previous quarter inclusive of
neutral sequential volume, a slight sequential increase in
currency, and a sequential decrease in pricing of 1 percent.
During the third quarter, Celanese continued to navigate
persistent demand weakness across key end-markets like paints,
coatings, and construction, as well as rapid and acute downturns in
Western Hemisphere automotive and industrial segments. The demand
deterioration through the quarter more than offset the improvements
the Company continues to deliver from the implementation of
value-enhancing initiatives, including the many synergy projects
delivered as part of the Mobility and Materials (M&M)
acquisition and the acetic acid expansion at the Clear Lake
facility. Celanese reported third quarter operating profit of $248
million, adjusted EBIT of $457 million, and operating EBITDA of
$644 million at margins of 9, 17, and 24 percent, respectively.
The difference between U.S. GAAP diluted earnings per share and
adjusted earnings per share in the third quarter was primarily due
to Certain Items totaling $114 million.1
Celanese will continue to take actions commensurate with the
current demand environment. To this end, the Company intends to
temporarily reduce the quarterly dividend by approximately 95
percent beginning in the first quarter of 2025. This action is a
prudent and cost-effective path forward to support deleveraging. In
addition, Celanese is taking the following actions to drive
continued improvement to earnings and cash generation:
- Reducing manufacturing costs through the end of 2024 by
temporarily idling production facilities in every region and
driving cash generation through an expected $200 million inventory
release in the fourth quarter.
- Implementing additional cost reduction programs expected to
realize incremental savings greater than $75 million by the end of
2025. The focus of the programs will be on driving productivity in
selling, general, and administrative (SG&A) costs.
- Continuing to focus on efficiently and stringently deploying
capital, and targeting next year's capex spending to be below 2024
levels.
- Closing on a 364-day delayed draw prepayable term loan for up
to $1 billion. The Company expects to draw on the term loan in the
first quarter of 2025 for use towards the $1.3 billion maturing
debt.
"In the third quarter, we faced a severely constrained demand
environment that, in some cases like auto, degraded swiftly. I want
to thank our teams for executing our value enhancing initiatives
that are delivering improvements today while also laying the
foundation for future growth," said Lori Ryerkerk, chair and chief
executive officer. "Still, these actions have been increasingly
offset in the current environment and the earnings generated fell
short of our expectations. In response we are taking additional
measures to navigate current challenges while positioning Celanese
for long-term success. We are confident these actions will
accelerate our growth and enhance long-term value."
Recent Highlights:
- Unveiled the expansion of the Asia Technology Center (ATC) in
Pudong New Area in Shanghai, China in October, to broadly support
application development in a variety of high growth areas in both
the Engineered Materials and the Acetyl Chain businesses.
- Opened the Micromax™ Electronic Inks and Pastes Lab in
Shenzhen, China in October, to support technical service and
application development to serve the automotive, consumer
electronics, passive components and telecom industries.
- Elected Bruce Chinn to the Company's Board of Directors in
September. Mr. Chinn served as President, Chief Executive Officer
and a Director of Chevron Phillips Chemical Company LLC, a global
petrochemical joint venture of Chevron U.S.A Inc. and Phillips 66
Company, until March 2024.
____________________________
1 Mainly driven by shutdown-related costs,
asset impairment, and M&A-related costs
Third Quarter 2024 Financial
Highlights:
Three Months Ended
September 30,
2024
June 30, 2024
September 30,
2023
(unaudited)
(In $ millions, except per
share data)
Net Sales
Engineered Materials
1,481
1,467
1,528
Acetyl Chain
1,190
1,202
1,220
Intersegment Eliminations
(23
)
(18
)
(25
)
Total
2,648
2,651
2,723
Operating Profit (Loss)
Engineered Materials
102
138
691
Acetyl Chain
239
242
272
Other Activities
(93
)
(130
)
(121
)
Total
248
250
842
Net Earnings (Loss)
120
153
949
Adjusted EBIT(1)
Engineered Materials
237
265
229
Acetyl Chain
276
277
310
Other Activities
(56
)
(91
)
(88
)
Total
457
451
451
Equity Earnings and Dividend Income,
Other Income (Expense)
Engineered Materials
46
49
12
Acetyl Chain
34
33
33
Operating EBITDA(1)
644
632
624
Diluted EPS - continuing operations
$
1.08
$
1.42
$
8.70
Diluted EPS - total
$
1.06
$
1.41
$
8.69
Adjusted EPS(1)
$
2.44
$
2.38
$
2.50
Net cash provided by (used in) investing
activities
(100
)
(91
)
375
Net cash provided by (used in) financing
activities
(376
)
(489
)
(700
)
Net cash provided by (used in) operating
activities
79
292
403
Free cash flow(1)
(16
)
173
268
____________________________
(1) See "Non-US GAAP Financial Measures" below.
Third Quarter Business Segment Overview
Acetyl Chain
The Acetyl Chain delivered third quarter net sales of $1.2
billion, a 1 percent decrease from the prior quarter. Volumes were
similar to the previous quarter as the business captured
incremental volumes in certain downstream derivatives to offset
volume declines across the broader integrated value chain. Pricing
declined 2 percent sequentially, partially driven by competitive
dynamics for vinyl acetate monomer in Asia. The business
successfully limited lingering financial impacts from the second
quarter force majeure and other operational challenges that
impacted the previous quarter by capturing productivity gains from
the acetic acid expansion at Clear Lake, the Company's lowest cost
and lowest carbon footprint acetic acid unit. The Acetyl Chain
flexed its global network to capture approximately $20 million of
contributions and set a new quarterly production record for acetic
acid at Clear Lake. The business delivered third quarter operating
profit of $239 million, adjusted EBIT of $276 million, and
operating EBITDA of $339 million at margins of 20, 23, and 28
percent, respectively. In an environment that remains challenged
due to weak demand in paints, coating, and construction
applications, the Acetyl Chain continued to deliver stability in
earnings by leveraging optionality across the business's global
footprint and integrated value chain.
Engineered Materials
Engineered Materials reported third quarter net sales of $1.5
billion, representing a sequential increase of 1 percent,
consisting of neutral volume and pricing with a small currency
impact. The business faced a demand environment that was severely
constrained, and was able to offset slight volume declines in
larger product lines like POM, GUR, and Nylon with favorable mix in
higher margin products and applications like Vamac® and Hytrel®.
Engineered Materials delivered third quarter operating profit of
$102 million, adjusted EBIT of $237 million, and operating EBITDA
of $348 million, with margins of 7, 16, and 23 percent,
respectively. The business was impacted by rapid slowdowns of
commercial activity in both automotive and industrial segments,
particularly in the Western Hemisphere. The European automotive
sector was especially affected, with auto builds declining by 14
percent sequentially in the region. Engineered Materials continued
to focus on controllable actions and synergy realization from the
implementation of manufacturing footprint optimization and
execution of functional cost savings projects. In the face of
anemic demand, the business also focused on progressing the scale
of the project pipeline model. For example, the size of each
project that has been won has increased by nearly 30 percent since
2022 and the value of electric vehicle projects won year-to-date
increased 18 percent. The advancement of the project pipeline model
partially offsets the current demand headwinds while putting in
place a strong foundation for growth as end-markets recover.
Cash Flow and Tax
Celanese reported third quarter operating cash flow of $79
million and free cash flow of $(16) million, which included cash
capital expenditures of $88 million. Third quarter operating cash
flow results included $238 million working capital use of cash from
the quarter demand trends and net cash interest expense of $230
million due to timing of coupon payments, which are more
concentrated in the first and third quarters. Celanese returned $76
million in cash to shareholders via dividends in the quarter. In
the third quarter the Company repaid a bond of approximately $500
million as part of its deleveraging plan and has retired a total of
$1 billion in bonds through the first three quarters of 2024.
The effective U.S. GAAP income tax rate was an expense of 33
percent for the third quarter compared to a benefit of 33 percent
for the same quarter in 2023. The effective income tax rate for the
current period and year to date was higher compared to the same
periods in 2023, primarily due to non-recurring prior year tax
benefits related to relocation of certain intangible assets to
align with the acquired M&M foreign operations, differences in
the tax and U.S. GAAP gain from the formation of the Nutrinova Food
Ingredients joint venture, and a decrease in valuation allowance on
U.S. foreign tax credit carryforwards due to changes in forecasted
foreign sourced income and expenses during the carryforward period,
as well as current year tax effects related to internal debt
restructuring transactions. The effective tax rate for adjusted
earnings was 9 percent based on expected jurisdictional earnings
mix for the full year and consideration of other non-recurring U.S.
GAAP items.
Outlook
"We expect demand conditions to worsen in the fourth quarter, as
automotive and industrial segments react to recent dynamics by
seasonally destocking at heavier than normal levels. While we
expect this destocking to be temporary and contained to the
quarter, we will significantly slow our production to match this
demand level and to generate cash through inventory draw. Based on
these factors, we anticipate fourth quarter adjusted earnings per
share of approximately $1.25," said Lori Ryerkerk. "We hold
ourselves to a high standard at Celanese, and are taking additional
actions to strengthen our company. Our focus is on driving business
improvement through earnings growth, cost reductions, free cash
flow expansion, and deleveraging to position Celanese for long-term
shareholder value creation."
Reconciliations of forecasted non-GAAP measures such as adjusted
earnings per share, adjusted EBIT or free cash flow to the
equivalent U.S. GAAP measures (diluted earnings per share, net
earnings (loss) attributable to Celanese Corporation and net cash
provided by (used in) operations, respectively), are not available
without unreasonable efforts because a forecast of Certain Items,
such as mark-to-market pension gains/losses, and other items is not
practical. For more information, see "Non-GAAP Financial Measures"
below.
The Company's prepared remarks related to the third quarter will
be posted on its website at investors.celanese.com under Financial
Information/Financial Document Library on November 4, 2024.
Information about Non-US GAAP measures is included in a Non-US GAAP
Financial Measures and Supplemental Information document posted on
our investor relations website under Financial Information/Non-GAAP
Financial Measures. See also "Non-GAAP Financial Measures"
below.
Celanese Corporation is a global leader in chemistry, producing
specialty material solutions used across most major industries and
consumer applications. Our businesses use our chemistry, technology
and commercial expertise to create value for our customers,
employees and shareholders. We support sustainability by
responsibly managing the materials we create and growing our
portfolio of sustainable products to meet customer and societal
demand. We strive to make a positive impact in our communities and
to foster inclusivity across our teams. Celanese Corporation is a
Fortune 500 company that employs approximately 12,400 employees
worldwide with 2023 net sales of $10.9 billion.
Forward-Looking Statements
This release may contain "forward-looking statements," which
include information concerning the Company's plans, objectives,
goals, strategies, future revenues, cash flow, financial
performance, synergies, capital expenditures, deleveraging efforts,
dividend policy, financing needs and other information that is not
historical information. All forward-looking statements are based
upon current expectations and beliefs and various assumptions.
There can be no assurance that the Company will realize these
expectations or that these beliefs will prove correct. There are a
number of risks and uncertainties that could cause actual results
to differ materially from the results expressed or implied in the
forward-looking statements contained in this release. These risks
and uncertainties include, among other things: changes in general
economic, business, political and regulatory conditions in the
countries or regions in which we operate; the length and depth of
product and industry business cycles, particularly in the
automotive, electrical, textiles, electronics and construction
industries; volatility or changes in the price and availability of
raw materials and energy, particularly changes in the demand for,
supply of, and market prices of ethylene, methanol, natural gas,
carbon monoxide, wood pulp, hexamethylene diamine and fuel oil and
the prices for electricity and other energy sources; the ability to
pass increases in raw materials prices, logistics costs and other
costs on to customers or otherwise improve margins through price
increases; the possibility that we will not be able to realize the
anticipated benefits of the Mobility & Materials business (the
"M&M Business") we acquired from DuPont de Nemours, Inc. (the
"M&M Acquisition"), including synergies and growth
opportunities, whether as a result of difficulties arising from the
operation of the M&M Business or other unanticipated delays,
costs, inefficiencies or liabilities; impairments of goodwill or
intangible assets; increased commercial, legal or regulatory
complexity of entering into, or expanding our exposure to, certain
end markets and geographies; risks in the global economy and equity
and credit markets and their potential impact on our ability to pay
down debt in the future and/or refinance at suitable rates, in a
timely manner, or at all; risks and costs associated with increased
leverage from the M&M Acquisition, including increased interest
expense and potential reduction of business and strategic
flexibility; the ability to maintain plant utilization rates and to
implement planned capacity additions, expansions and maintenance;
the ability to reduce or maintain current levels of production
costs and to improve productivity by implementing technological
improvements to existing plants; increased price competition and
the introduction of competing products by other companies; the
ability to identify desirable potential acquisition or divestiture
opportunities and to complete such transactions, including
obtaining regulatory approvals, consistent with the Company's
strategy; market acceptance of our products and technology;
compliance and other costs and potential disruption or interruption
of production or operations due to accidents, interruptions in
sources of raw materials, transportation, logistics or supply chain
disruptions, cybersecurity incidents, terrorism or political
unrest, public health crises (including, but not limited to, the
COVID-19 pandemic), or other unforeseen events or delays in
construction or operation of facilities, including as a result of
geopolitical conditions, the direct or indirect consequences of
acts of war or conflict (such as the Russia-Ukraine conflict or the
Israel-Hamas conflict) or terrorist incidents or as a result of
weather, natural disasters, or other crises; the ability to obtain
governmental approvals and to construct facilities on terms and
schedules acceptable to the Company; changes in applicable tariffs,
duties and trade agreements, tax rates or legislation throughout
the world including, but not limited to, anti-dumping and
countervailing duties, adjustments, changes in estimates or
interpretations or the resolution of tax examinations or audits
that may impact recorded or future tax impacts and potential
regulatory and legislative tax developments in the United States
and other jurisdictions; changes in the degree of intellectual
property and other legal protection afforded to our products or
technologies, or the theft of such intellectual property; potential
liability for remedial actions and increased costs under existing
or future environmental, health and safety regulations, including
those relating to climate change or other sustainability matters;
potential liability resulting from pending or future claims or
litigation, including investigations or enforcement actions, or
from changes in the laws, regulations or policies of governments or
other governmental activities, in the countries in which we
operate; our level of indebtedness, which could diminish our
ability to raise additional capital to fund operations or limit our
ability to react to changes in the economy or the chemicals
industry, and the success of our deleveraging efforts; changes in
currency exchange rates and interest rates; tax rates and changes
thereto; and various other factors discussed from time to time in
the Company's filings with the Securities and Exchange
Commission.
Any forward-looking statement speaks only as of the date on
which it is made, and the Company undertakes no obligation to
update any forward-looking statements to reflect events or
circumstances after the date on which it is made or to reflect the
occurrence of anticipated or unanticipated events or
circumstances.
Non-GAAP Financial Measures
Presentation
This document presents the Company's two business segments,
Engineered Materials and the Acetyl Chain.
Use of Non-US GAAP Financial Information
This release uses the following Non-US GAAP measures: adjusted
EBIT, adjusted EBIT margin, operating EBITDA, operating EBITDA
margin, adjusted earnings per share and free cash flow. These
measures are not recognized in accordance with US GAAP and should
not be viewed as an alternative to US GAAP measures of performance
or liquidity. The most directly comparable financial measure
presented in accordance with US GAAP in our consolidated financial
statements for adjusted EBIT and operating EBITDA is net earnings
(loss) attributable to Celanese Corporation; for adjusted EBIT
margin is operating margin; for operating EBITDA margin is
operating margin; for adjusted earnings per share is earnings
(loss) from continuing operations attributable to Celanese
Corporation per common share-diluted; and for free cash flow is net
cash provided by (used in) operations.
Definitions of Non-US GAAP Financial Measures
- Adjusted EBIT is a performance measure used by the Company and
is defined by the Company as net earnings (loss) attributable to
Celanese Corporation, plus (earnings) loss from discontinued
operations, less interest income, plus interest expense, plus
refinancing expense and taxes, and further adjusted for Certain
Items (refer to Table 8 of our Non-US GAAP Financial Measures and
Supplemental Information document). We do not provide
reconciliations for adjusted EBIT on a forward-looking basis
(including those contained in this document) when we are unable to
provide a meaningful or accurate calculation or estimation of
reconciling items and the information is not available without
unreasonable effort. This is due to the inherent difficulty of
forecasting the timing and amount of Certain Items, such as
mark-to-market pension gains and losses, that have not yet
occurred, are out of our control and/or cannot be reasonably
predicted. For the same reasons, we are unable to address the
probable significance of the unavailable information. Adjusted EBIT
margin is defined by the Company as adjusted EBIT divided by net
sales.
- Operating EBITDA is a performance measure used by the Company
and is defined by the Company as net earnings (loss) attributable
to Celanese Corporation, plus (earnings) loss from discontinued
operations, less interest income, plus interest expense, plus
refinancing expense, taxes and depreciation and amortization, and
further adjusted for Certain Items, which Certain Items include
accelerated depreciation and amortization expense. Operating EBITDA
is equal to adjusted EBIT plus depreciation and amortization.
Operating EBITDA margin is defined by the Company as operating
EBITDA divided by net sales.
- Adjusted earnings per share is a performance measure used by
the Company and is defined by the Company as earnings (loss) from
continuing operations attributable to Celanese Corporation,
adjusted for income tax (provision) benefit, Certain Items, and
refinancing and related expenses, divided by the number of basic
common shares and dilutive restricted stock units and stock options
calculated using the treasury method. We do not provide
reconciliations for adjusted earnings per share on a
forward-looking basis (including those contained in this document)
when we are unable to provide a meaningful or accurate calculation
or estimation of reconciling items and the information is not
available without unreasonable effort. This is due to the inherent
difficulty of forecasting the timing and amount of Certain Items,
such as mark-to-market pension gains and losses, that have not yet
occurred, are out of our control and/or cannot be reasonably
predicted. For the same reasons, we are unable to address the
probable significance of the unavailable information. Note: The
income tax expense (benefit) on Certain Items ("Non-GAAP
adjustments") is determined using the applicable rates in the
taxing jurisdictions in which the Non-GAAP adjustments occurred and
includes both current and deferred income tax expense (benefit).
The income tax rate used for adjusted earnings per share
approximates the midpoint in a range of forecasted tax rates for
the year. This range may include certain partial or full-year
forecasted tax opportunities and related costs, where applicable,
and specifically excludes changes in uncertain tax positions,
discrete recognition of GAAP items on a quarterly basis, other
pre-tax items adjusted out of our GAAP earnings for adjusted
earnings per share purposes and changes in management's assessments
regarding the ability to realize deferred tax assets for GAAP. In
determining the adjusted earnings per share tax rate, we reflect
the impact of foreign tax credits when utilized, or expected to be
utilized, absent discrete events impacting the timing of foreign
tax credit utilization. We analyze this rate quarterly and adjust
it if there is a material change in the range of forecasted tax
rates; an updated forecast would not necessarily result in a change
to our tax rate used for adjusted earnings per share. The adjusted
tax rate is an estimate and may differ from the actual tax rate
used for GAAP reporting in any given reporting period. Table 3a of
our Non-US GAAP Financial Measures and Supplemental Information
document summarizes the reconciliation of our estimated GAAP
effective tax rate to the adjusted tax rate. The estimated GAAP
rate excludes discrete recognition of GAAP items due to our
inability to forecast such items. As part of the year-end
reconciliation, we will update the reconciliation of the GAAP
effective tax rate to the adjusted tax rate for actual
results.
- Free cash flow is a liquidity measure used by the Company and
is defined by the Company as net cash provided by (used in)
operations, less capital expenditures on property, plant and
equipment, and adjusted for contributions from or distributions to
our noncontrolling interest joint ventures. We do not provide
reconciliations for free cash flow on a forward-looking basis
(including those contained in this document) when we are unable to
provide a meaningful or accurate calculation or estimation of
reconciling items and the information is not available without
unreasonable effort. This is due to the inherent difficulty of
forecasting the timing and amount of items such as working capital
changes, fluctuations in foreign currency exchange rates, the
impact and timing of potential acquisitions and divestitures, and
other structural changes, that have not yet occurred, are out of
our control and/or cannot be reasonably predicted. For the same
reasons, we are unable to address the probable significance of the
unavailable information.
Reconciliation of Non-US GAAP Financial
Measures
Reconciliations of the Non-US GAAP financial measures used in
this press release to the comparable US GAAP financial measure,
together with information about the purposes and uses of Non-US
GAAP financial measures, are included in our Non-US GAAP Financial
Measures and Supplemental Information document filed as an exhibit
to our Current Report on Form 8-K filed with the SEC on or about
November 4, 2024 and also available on our website at investors.celanese.com under Financial
Information/Financial Document Library.
Results Unaudited
The results in this document, together with the adjustments made
to present the results on a comparable basis, have not been audited
and are based on internal financial data furnished to management.
Quarterly results should not be taken as an indication of the
results of operations to be reported for any subsequent period or
for the full fiscal year.
Supplemental Information
Additional information about our prior period performance is
included in our Quarterly Reports on Form 10-Q and in our Non-US
GAAP Financial Measures and Supplemental Information document.
Consolidated Statements of Operations -
Unaudited
Three Months Ended
September 30,
2024
June 30, 2024
September 30,
2023
(In $ millions, except share
and per share data)
Net sales
2,648
2,651
2,723
Cost of sales
(2,026
)
(2,010
)
(2,050
)
Gross profit
622
641
673
Selling, general and administrative
expenses
(248
)
(255
)
(244
)
Amortization of intangible assets
(40
)
(38
)
(41
)
Research and development expenses
(32
)
(33
)
(32
)
Other (charges) gains, net
(61
)
(48
)
(17
)
Foreign exchange gain (loss), net
10
(9
)
—
Gain (loss) on disposition of businesses
and assets, net
(3
)
(8
)
503
Operating profit (loss)
248
250
842
Equity in net earnings (loss) of
affiliates
51
51
12
Non-operating pension and other
postretirement employee benefit (expense) income
3
2
(1
)
Interest expense
(169
)
(174
)
(178
)
Refinancing expense
—
—
(7
)
Interest income
5
10
12
Dividend income - equity investments
30
31
30
Other income (expense), net
15
13
4
Earnings (loss) from continuing operations
before tax
183
183
714
Income tax (provision) benefit
(61
)
(29
)
236
Earnings (loss) from continuing
operations
122
154
950
Earnings (loss) from operation of
discontinued operations
(3
)
(1
)
(1
)
Income tax (provision) benefit from
discontinued operations
1
—
—
Earnings (loss) from discontinued
operations
(2
)
(1
)
(1
)
Net earnings (loss)
120
153
949
Net (earnings) loss attributable to
noncontrolling interests
(4
)
2
2
Net earnings (loss) attributable to
Celanese Corporation
116
155
951
Amounts attributable to Celanese
Corporation
Earnings (loss) from continuing
operations
118
156
952
Earnings (loss) from discontinued
operations
(2
)
(1
)
(1
)
Net earnings (loss)
116
155
951
Earnings (loss) per common share -
basic
Continuing operations
1.08
1.43
8.74
Discontinued operations
(0.02
)
(0.01
)
(0.01
)
Net earnings (loss) - basic
1.06
1.42
8.73
Earnings (loss) per common share -
diluted
Continuing operations
1.08
1.42
8.70
Discontinued operations
(0.02
)
(0.01
)
(0.01
)
Net earnings (loss) - diluted
1.06
1.41
8.69
Weighted average shares (in millions)
Basic
109.3
109.3
108.9
Diluted
109.5
109.5
109.4
Consolidated Balance Sheets -
Unaudited
As of
September 30,
2024
As of
December 31,
2023
(In $ millions)
ASSETS
Current Assets
Cash and cash equivalents
813
1,805
Trade receivables - third party and
affiliates, net
1,367
1,243
Non-trade receivables, net
688
541
Inventories
2,562
2,357
Other assets
276
272
Total current assets
5,706
6,218
Investments in affiliates
1,253
1,220
Property, plant and equipment, net
5,431
5,584
Operating lease right-of-use assets
421
422
Deferred income taxes
1,672
1,677
Other assets
554
524
Goodwill
6,997
6,977
Intangible assets, net
3,858
3,975
Total assets
25,892
26,597
LIABILITIES AND EQUITY
Current Liabilities
Short-term borrowings and current
installments of long-term debt - third party and affiliates
1,607
1,383
Trade payables - third party and
affiliates
1,446
1,510
Other liabilities
1,083
1,154
Income taxes payable
23
25
Total current liabilities
4,159
4,072
Long-term debt, net of unamortized
deferred financing costs
11,324
12,301
Deferred income taxes
1,006
999
Uncertain tax positions
308
300
Benefit obligations
440
457
Operating lease liabilities
325
325
Other liabilities
612
591
Commitments and Contingencies
Shareholders' Equity
Treasury stock, at cost
(5,487
)
(5,488
)
Additional paid-in capital
397
394
Retained earnings
13,091
12,929
Accumulated other comprehensive income
(loss), net
(727
)
(744
)
Total Celanese Corporation shareholders'
equity
7,274
7,091
Noncontrolling interests
444
461
Total equity
7,718
7,552
Total liabilities and equity
25,892
26,597
Non-US GAAP Financial
Measures and Supplemental Information
November 4, 2024
In this document, the terms the "Company," "we" and "our" refer
to Celanese Corporation and its subsidiaries on a consolidated
basis.
Purpose
The purpose of this document is to provide information of
interest to investors, analysts and other parties including
supplemental financial information and reconciliations and other
information concerning our use of non-US GAAP financial measures.
This document is updated quarterly.
Presentation
This document presents the Company's two business segments,
Engineered Materials and the Acetyl Chain.
Use of Non-US GAAP Financial Measures
From time to time, management may publicly disclose certain
numerical "non-GAAP financial measures" in the course of our
earnings releases, financial presentations, earnings conference
calls, investor and analyst meetings and otherwise. For these
purposes, the Securities and Exchange Commission ("SEC") defines a
"non-GAAP financial measure" as a numerical measure of historical
or future financial performance, financial position or cash flows
that excludes amounts, or is subject to adjustments that
effectively exclude amounts, included in the most directly
comparable measure calculated and presented in accordance with US
GAAP, and vice versa for measures that include amounts, or are
subject to adjustments that effectively include amounts, that are
excluded from the most directly comparable US GAAP measure so
calculated and presented. For these purposes, "GAAP" refers to
generally accepted accounting principles in the United States.
Non-GAAP financial measures disclosed by management are provided
as additional information to investors, analysts and other parties
because the Company believes them to be important supplemental
measures for assessing our financial and operating results and as a
means to evaluate our financial condition and period-to-period
comparisons. These non-GAAP financial measures should be viewed as
supplemental to, and should not be considered in isolation or as
alternatives to, net earnings (loss), operating profit (loss),
operating margin, cash flow from operating activities (together
with cash flow from investing and financing activities), earnings
per share or any other US GAAP financial measure. These non-GAAP
financial measures should be considered within the context of our
complete audited and unaudited financial results for the given
period, which are available on the Financial Information/Financial
Document Library page of our website, investors.celanese.com. The
definition and method of calculation of the non-GAAP financial
measures used herein may be different from other companies' methods
for calculating measures with the same or similar titles.
Investors, analysts and other parties should understand how another
company calculates such non-GAAP financial measures before
comparing the other company's non-GAAP financial measures to any of
our own. These non-GAAP financial measures may not be indicative of
the historical operating results of the Company nor are they
intended to be predictive or projections of future results.
Pursuant to the requirements of SEC Regulation G, whenever we
refer to a non-GAAP financial measure, we will also present in this
document, in the presentation itself or on a Form 8-K in connection
with the presentation on the Financial Information/Financial
Document Library page of our website, investors.celanese.com, to
the extent practicable, the most directly comparable financial
measure calculated and presented in accordance with GAAP, along
with a reconciliation of the differences between the non-GAAP
financial measure we reference and such comparable GAAP financial
measure.
This document includes definitions and reconciliations of
non-GAAP financial measures used from time to time by the
Company.
Specific Measures Used
This document provides information about the following non-GAAP
measures: adjusted EBIT, adjusted EBIT margin, operating EBITDA,
operating EBITDA margin, operating profit (loss) attributable to
Celanese Corporation, adjusted earnings per share, net debt, free
cash flow and return on invested capital (adjusted). The most
directly comparable financial measure presented in accordance with
US GAAP in our consolidated financial statements for adjusted EBIT
and operating EBITDA is net earnings (loss) attributable to
Celanese Corporation; for adjusted EBIT margin and operating EBITDA
margin is operating margin; for operating profit (loss)
attributable to Celanese Corporation is operating profit (loss);
for adjusted earnings per share is earnings (loss) from continuing
operations attributable to Celanese Corporation per common
share-diluted; for net debt is total debt; for free cash flow is
net cash provided by (used in) operations; and for return on
invested capital (adjusted) is net earnings (loss) attributable to
Celanese Corporation divided by the sum of the average of beginning
and end of the year short- and long-term debt and Celanese
Corporation shareholders' equity.
Definitions
- Adjusted EBIT is a performance measure used by the Company and
is defined by the Company as net earnings (loss) attributable to
Celanese Corporation, plus (earnings) loss from discontinued
operations, less interest income, plus interest expense, plus
refinancing expense and taxes, and further adjusted for Certain
Items (refer to Table 8). We believe that adjusted EBIT provides
transparent and useful information to management, investors,
analysts and other parties in evaluating and assessing our primary
operating results from period-to-period after removing the impact
of unusual, non-operational or restructuring-related activities
that affect comparability. Our management recognizes that adjusted
EBIT has inherent limitations because of the excluded items.
Adjusted EBIT is one of the measures management uses for planning
and budgeting, monitoring and evaluating financial and operating
results and as a performance metric in the Company's incentive
compensation plan. We do not provide reconciliations for adjusted
EBIT on a forward-looking basis (including those contained in this
document) when we are unable to provide a meaningful or accurate
calculation or estimation of reconciling items and the information
is not available without unreasonable effort. This is due to the
inherent difficulty of forecasting the timing and amount of Certain
Items, such as mark-to-market pension gains and losses, that have
not yet occurred, are out of our control and/or cannot be
reasonably predicted. For the same reasons, we are unable to
address the probable significance of the unavailable information.
Adjusted EBIT margin is defined by the Company as adjusted EBIT
divided by net sales. Adjusted EBIT margin has the same uses and
limitations as Adjusted EBIT.
- Operating EBITDA is a performance measure used by the Company
and is defined by the Company as net earnings (loss) attributable
to Celanese Corporation, plus (earnings) loss from discontinued
operations, less interest income, plus interest expense, plus
refinancing expense, taxes and depreciation and amortization, and
further adjusted for Certain Items, which Certain Items include
accelerated depreciation and amortization expense. Operating EBITDA
is equal to adjusted EBIT plus depreciation and amortization. We
believe that Operating EBITDA provides transparent and useful
information to investors, analysts and other parties in evaluating
our operating performance relative to our peer companies. Operating
EBITDA margin is defined by the Company as Operating EBITDA divided
by net sales. Operating EBITDA margin has the same uses and
limitations as Operating EBITDA.
- Operating profit (loss) attributable to Celanese Corporation is
defined by the Company as operating profit (loss), less earnings
(loss) attributable to noncontrolling interests ("NCI"). We believe
that operating profit (loss) attributable to Celanese Corporation
provides transparent and useful information to management,
investors, analysts and other parties in evaluating our core
operational performance. Operating margin attributable to Celanese
Corporation is defined by the Company as operating profit (loss)
attributable to Celanese Corporation divided by net sales.
Operating margin attributable to Celanese Corporation has the same
uses and limitations as Operating profit (loss) attributable to
Celanese Corporation.
- Adjusted earnings per share is a performance measure used by
the Company and is defined by the Company as earnings (loss) from
continuing operations attributable to Celanese Corporation,
adjusted for income tax (provision) benefit, Certain Items, and
refinancing and related expenses, divided by the number of basic
common shares and dilutive restricted stock units and stock options
calculated using the treasury method. We believe that adjusted
earnings per share provides transparent and useful information to
management, investors, analysts and other parties in evaluating and
assessing our primary operating results from period-to-period after
removing the impact of the above stated items that affect
comparability and as a performance metric in the Company's
incentive compensation plan. We do not provide reconciliations for
adjusted earnings per share on a forward-looking basis (including
those contained in this document) when we are unable to provide a
meaningful or accurate calculation or estimation of reconciling
items and the information is not available without unreasonable
effort. This is due to the inherent difficulty of forecasting the
timing and amount of Certain Items, such as mark-to-market pension
gains and losses, that have not yet occurred, are out of our
control and/or cannot be reasonably predicted. For the same
reasons, we are unable to address the probable significance of the
unavailable information. Note: The income tax expense (benefit) on
Certain Items ("Non-GAAP adjustments") is determined using the
applicable rates in the taxing jurisdictions in which the Non-GAAP
adjustments occurred and includes both current and deferred income
tax expense (benefit). The income tax rate used for adjusted
earnings per share approximates the midpoint in a range of
forecasted tax rates for the year. This range may include certain
partial or full-year forecasted tax opportunities and related
costs, where applicable, and specifically excludes changes in
uncertain tax positions, discrete recognition of GAAP items on a
quarterly basis, other pre-tax items adjusted out of our GAAP
earnings for adjusted earnings per share purposes and changes in
management's assessments regarding the ability to realize deferred
tax assets for GAAP. In determining the adjusted earnings per share
tax rate, we reflect the impact of foreign tax credits when
utilized, or expected to be utilized, absent discrete events
impacting the timing of foreign tax credit utilization. We analyze
this rate quarterly and adjust it if there is a material change in
the range of forecasted tax rates; an updated forecast would not
necessarily result in a change to our tax rate used for adjusted
earnings per share. The adjusted tax rate is an estimate and may
differ from the actual tax rate used for GAAP reporting in any
given reporting period. Table 3a summarizes the reconciliation of
our estimated GAAP effective tax rate to the adjusted tax rate. The
estimated GAAP rate excludes discrete recognition of GAAP items due
to our inability to forecast such items. As part of the year-end
reconciliation, we will update the reconciliation of the GAAP
effective tax rate to the adjusted tax rate for actual
results.
- Free cash flow is a liquidity measure used by the Company and
is defined by the Company as net cash provided by (used in)
operations, less capital expenditures on property, plant and
equipment, and adjusted for contributions from or distributions to
our NCI joint ventures. We believe that free cash flow provides
useful information to management, investors, analysts and other
parties in evaluating the Company's liquidity and credit quality
assessment because it provides an indication of the long-term cash
generating ability of our business. Although we use free cash flow
as a measure to assess the liquidity generated by our business, the
use of free cash flow has important limitations, including that
free cash flow does not reflect the cash requirements necessary to
service our indebtedness, lease obligations, unconditional purchase
obligations or pension and postretirement funding obligations. Free
cash flow is not a measure of cash available for discretionary
expenditures since the Company has certain debt service and finance
lease payments that are not deducted from that measure. We do not
provide reconciliations for free cash flow on a forward-looking
basis when we are unable to provide a meaningful or accurate
calculation or estimation of reconciling items and the information
is not available without unreasonable effort. This is due to the
inherent difficulty of forecasting the timing and amount of items
such as working capital changes, fluctuations in foreign currency
exchange rates, the impact and timing of potential acquisitions and
divestitures, and other structural changes, that have not yet
occurred, are out of our control and/or cannot be reasonably
predicted. For the same reasons, we are unable to address the
probable significance of the unavailable information.
- Net debt is defined by the Company as total debt less cash and
cash equivalents. We believe that net debt provides useful
information to management, investors, analysts and other parties in
evaluating changes to the Company's capital structure and credit
quality assessment.
- Return on invested capital (adjusted) is defined by the Company
as adjusted EBIT, tax effected using the adjusted tax rate, divided
by the sum of the average of beginning and end of the year short-
and long-term debt and Celanese Corporation shareholders' equity.
We believe that return on invested capital (adjusted) provides
useful information to management, investors, analysts and other
parties in order to assess our income generation from the point of
view of our shareholders and creditors who provide us with capital
in the form of equity and debt and whether capital invested in the
Company yields competitive returns.
Supplemental Information
Supplemental Information we believe to be of interest to
investors, analysts and other parties includes the following:
- Net sales for each of our business segments and the percentage
increase or decrease in net sales attributable to price, volume,
currency and other factors for each of our business segments.
- Cash dividends received from our equity investments.
- For those consolidated ventures in which the Company owns or is
exposed to less than 100% of the economics, the outside
shareholders' interests are shown as NCI. Amounts referred to as
"attributable to Celanese Corporation" are net of any applicable
NCI.
Results Unaudited
The results in this document, together with the adjustments made
to present the results on a comparable basis, have not been audited
and are based on internal financial data furnished to management.
Quarterly results should not be taken as an indication of the
results of operations to be reported for any subsequent period or
for the full fiscal year.
Table 1
Celanese Adjusted EBIT and Operating
EBITDA - Reconciliation of Non-GAAP Measures - Unaudited
Q3 '24
Q2 '24
Q1 '24
2023
Q4 '23
Q3 '23
Q2 '23
Q1 '23
(In $ millions)
Net earnings (loss) attributable to
Celanese Corporation
116
155
121
1,960
698
951
220
91
(Earnings) loss from discontinued
operations
2
1
—
9
6
1
(1
)
3
Interest income
(5
)
(10
)
(13
)
(39
)
(12
)
(12
)
(7
)
(8
)
Interest expense
169
174
169
720
178
178
182
182
Refinancing expense
—
—
—
7
—
7
—
—
Income tax provision (benefit)
61
29
33
(790
)
(575
)
(236
)
(4
)
25
Certain Items attributable to Celanese
Corporation (Table 8)
114
102
97
(114
)
139
(438
)
54
131
Adjusted EBIT
457
451
407
1,753
434
451
444
424
Depreciation and amortization
expense(1)
187
181
176
691
174
173
172
172
Operating EBITDA
644
632
583
2,444
608
624
616
596
Q3 '24
Q2 '24
Q1 '24
2023
Q4 '23
Q3 '23
Q2 '23
Q1 '23
(In $ millions)
Engineered Materials
16
11
45
15
15
—
—
—
Acetyl Chain
—
—
—
—
—
—
—
—
Other Activities(2)
—
—
—
—
—
—
—
—
Accelerated depreciation and
amortization expense
16
11
45
15
15
—
—
—
Depreciation and amortization
expense(1)
187
181
176
691
174
173
172
172
Total depreciation and amortization
expense
203
192
221
706
189
173
172
172
___________________
(1)
Excludes accelerated depreciation and
amortization expense as detailed in the table above, which amounts
are included in Certain Items above.
(2)
Other Activities includes corporate
Selling, general and administrative ("SG&A") expenses, results
of captive insurance companies and certain components of net
periodic benefit cost (interest cost, expected return on plan
assets and net actuarial gains and losses).
Table 2 - Supplemental Segment Data and Reconciliation of
Segment Adjusted EBIT and Operating EBITDA - Non-GAAP Measures -
Unaudited
Q3 '24
Q2 '24
Q1 '24
2023
Q4 '23
Q3 '23
Q2 '23
Q1 '23
(In $ millions, except
percentages)
Operating Profit (Loss) / Operating
Margin
Engineered Materials
102
6.9
%
138
9.4
%
89
6.5
%
1,083
17.6
%
122
8.7
%
691
45.2
%
158
10.0
%
112
6.9
%
Acetyl Chain
239
20.1
%
242
20.1
%
254
20.1
%
1,109
22.7
%
264
22.4
%
272
22.3
%
295
23.9
%
278
22.2
%
Other Activities(1)
(93
)
(130
)
(133
)
(505
)
(127
)
(121
)
(118
)
(139
)
Total
248
9.4
%
250
9.4
%
210
8.0
%
1,687
15.4
%
259
10.1
%
842
30.9
%
335
12.0
%
251
8.8
%
Less: Net Earnings (Loss) Attributable to
NCI for Engineered Materials
2
(4
)
(1
)
(3
)
1
(2
)
(2
)
—
Less: Net Earnings (Loss) Attributable to
NCI for Acetyl Chain
2
2
4
7
2
—
3
2
Operating Profit (Loss) Attributable to
Celanese Corporation
244
9.2
%
252
9.5
%
207
7.9
%
1,683
15.4
%
256
10.0
%
844
31.0
%
334
11.9
%
249
8.7
%
Operating Profit (Loss) / Operating
Margin Attributable to Celanese Corporation
Engineered Materials
100
6.8
%
142
9.7
%
90
6.5
%
1,086
17.7
%
121
8.6
%
693
45.4
%
160
10.1
%
112
6.9
%
Acetyl Chain
237
19.9
%
240
20.0
%
250
19.8
%
1,102
22.6
%
262
22.2
%
272
22.3
%
292
23.7
%
276
22.1
%
Other Activities(1)
(93
)
(130
)
(133
)
(505
)
(127
)
(121
)
(118
)
(139
)
Total
244
9.2
%
252
9.5
%
207
7.9
%
1,683
15.4
%
256
10.0
%
844
31.0
%
334
11.9
%
249
8.7
%
Equity Earnings and Dividend Income,
Other Income (Expense) Attributable to Celanese Corporation
Engineered Materials
46
49
50
87
45
12
20
10
Acetyl Chain
34
33
36
132
33
33
32
34
Other Activities(1)
16
13
15
34
28
1
6
(1
)
Total
96
95
101
253
106
46
58
43
Non-Operating Pension and Other
Post-Retirement Employee Benefit (Expense) Income Attributable to
Celanese Corporation
Engineered Materials
—
—
—
(1
)
(1
)
—
—
—
Acetyl Chain
—
—
—
—
—
—
—
—
Other Activities(1)
3
2
2
(68
)
(66
)
(1
)
(2
)
1
Total
3
2
2
(69
)
(67
)
(1
)
(2
)
1
Certain Items Attributable to Celanese
Corporation (Table 8)
Engineered Materials
91
74
61
(324
)
34
(476
)
25
93
Acetyl Chain
5
4
10
24
5
5
8
6
Other Activities(1)
18
24
26
186
100
33
21
32
Total
114
102
97
(114
)
139
(438
)
54
131
Adjusted EBIT / Adjusted EBIT
Margin
Engineered Materials
237
16.0
%
265
18.1
%
201
14.6
%
848
13.8
%
199
14.2
%
229
15.0
%
205
12.9
%
215
13.2
%
Acetyl Chain
276
23.2
%
277
23.0
%
296
23.5
%
1,258
25.8
%
300
25.4
%
310
25.4
%
332
26.9
%
316
25.3
%
Other Activities(1)
(56
)
(91
)
(90
)
(353
)
(65
)
(88
)
(93
)
(107
)
Total
457
17.3
%
451
17.0
%
407
15.6
%
1,753
16.0
%
434
16.9
%
451
16.6
%
444
15.9
%
424
14.9
%
__________________
(1)
Other Activities includes corporate
SG&A expenses, results of captive insurance companies and
certain components of net periodic benefit cost (interest cost,
expected return on plan assets and net actuarial gains and
losses).
Table 2 - Supplemental Segment Data and
Reconciliation of Segment Adjusted EBIT and Operating EBITDA -
Non-GAAP Measures - Unaudited (cont.)
Q3 '24
Q2 '24
Q1 '24
2023
Q4 '23
Q3 '23
Q2 '23
Q1 '23
(In $ millions, except
percentages)
Depreciation and Amortization
Expense(1)
Engineered Materials
111
110
102
447
112
111
112
112
Acetyl Chain
63
61
57
217
54
55
54
54
Other Activities(2)
13
10
17
27
8
7
6
6
Total
187
181
176
691
174
173
172
172
Operating EBITDA / Operating EBITDA
Margin
Engineered Materials
348
23.5
%
375
25.6
%
303
22.0
%
1,295
21.1
%
311
22.1
%
340
22.3
%
317
20.0
%
327
20.1
%
Acetyl Chain
339
28.5
%
338
28.1
%
353
28.0
%
1,475
30.2
%
354
30.0
%
365
29.9
%
386
31.3
%
370
29.6
%
Other Activities(2)
(43
)
(81
)
(73
)
(326
)
(57
)
(81
)
(87
)
(101
)
Total
644
24.3
%
632
23.8
%
583
22.3
%
2,444
22.3
%
608
23.7
%
624
22.9
%
616
22.0
%
596
20.9
%
___________________
(1)
Excludes accelerated depreciation and
amortization expense, which amounts are included in Certain Items
above. See Table 1 for details.
(2)
Other Activities includes corporate
SG&A expenses, results of captive insurance companies and
certain components of net periodic benefit cost (interest cost,
expected return on plan assets and net actuarial gains and
losses).
Table 3
Adjusted Earnings (Loss) per Share -
Reconciliation of a Non-GAAP Measure - Unaudited
Q3 '24
Q2 '24
Q1 '24
2023
Q4 '23
Q3 '23
Q2 '23
Q1 '23
per share
per share
per share
per share
per share
per share
per share
per share
(In $ millions, except per
share data)
Earnings (loss) from continuing operations
attributable to Celanese Corporation
118
1.08
156
1.42
121
1.10
1,969
18.00
704
6.43
952
8.70
219
2.00
94
0.86
Income tax provision (benefit)
61
29
33
(790
)
(575
)
(236
)
(4
)
25
Earnings (loss) from continuing operations
before tax
179
185
154
1,179
129
716
215
119
Certain Items attributable to Celanese
Corporation (Table 8)
114
102
97
(114
)
139
(438
)
54
131
Refinancing and related expenses
—
—
—
7
—
7
—
—
Adjusted earnings (loss) from continuing
operations before tax
293
287
251
1,072
268
285
269
250
Income tax (provision) benefit on adjusted
earnings(1)
(26
)
(26
)
(23
)
(96
)
(23
)
(11
)
(32
)
(30
)
Adjusted earnings (loss) from
continuing operations(2)
267
2.44
261
2.38
228
2.08
976
8.92
245
2.24
274
2.50
237
2.17
220
2.01
Diluted shares (in
millions)(3)
Weighted average shares outstanding
109.3
109.3
109.1
108.8
109.0
108.9
108.9
108.6
Incremental shares attributable to equity
awards
0.2
0.2
0.4
0.6
0.5
0.5
0.4
0.6
Total diluted shares
109.5
109.5
109.5
109.4
109.5
109.4
109.3
109.2
______________________________
(1)
Calculated using adjusted effective tax
rates (Table 3a) as follows:
Q3 '24
Q2 '24
Q1 '24
2023
Q4 '23
Q3 '23
Q2 '23
Q1 '23
Adjusted effective tax rate
9
9
9
9
9
4
12
12
(2)
Excludes the immediate recognition of
actuarial gains and losses and the impact of actual vs. expected
plan asset returns.
Actual Plan Asset
Returns
Expected Plan Asset
Returns
(In percentages)
2023
8.1
5.2
(3)
Potentially dilutive shares are included
in the adjusted earnings per share calculation when adjusted
earnings are positive.
Table 3a
Adjusted Tax Rate - Reconciliation of a
Non-GAAP Measure - Unaudited
Estimated
Actual
2024
2023
(In percentages)
US GAAP annual effective tax rate
26
(67
)
Discrete quarterly recognition of GAAP
items(1)
(5
)
2
Tax impact of other charges and
adjustments(2)
(1
)
(3
)
Changes in valuation allowances, excluding
impact of other charges and adjustments(3)
(8
)
13
Other, includes effect of discrete current
year transactions(4)
(3
)
64
(5)
Adjusted tax rate
9
9
___________________
Note: As part of the year-end
reconciliation, we will update the reconciliation of the GAAP
effective tax rate for actual results.
(1)
Such as changes in tax laws (including US
tax reform), deferred taxes on outside basis differences, changes
in uncertain tax positions and prior year audit adjustments.
(2)
Reflects the tax impact on pre-tax
adjustments presented in Certain Items (Table 8), which are
excluded from pre-tax income for adjusted earnings per share
purposes.
(3)
Reflects changes in valuation allowances
related to changes in judgment regarding the realizability of
deferred tax assets or current year operations, excluding other
charges and adjustments.
(4)
Includes tax impacts related to full-year
actual tax opportunities and related costs, as well as current year
realization of U.S. GAAP benefits deferred in prior years.
(5)
Includes the reversal of certain U.S. GAAP
deferred tax benefits related to non-recurring internal
restructuring transactions related to the M&M acquisition, to
centralize ownership of intellectual property with the business and
to facilitate future deployment of cash to service acquisition
indebtedness. Certain benefits of the internal restructuring will
be realized in future periods for adjusted earnings purposes.
Table 4
Net Sales by Segment -
Unaudited
Q3 '24
Q2 '24
Q1 '24
2023
Q4 '23
Q3 '23
Q2 '23
Q1 '23
(In $ millions)
Engineered Materials
1,481
1,467
1,378
6,149
1,406
1,528
1,585
1,630
Acetyl Chain
1,190
1,202
1,261
4,884
1,181
1,220
1,233
1,250
Intersegment eliminations(1)
(23
)
(18
)
(28
)
(93
)
(18
)
(25
)
(23
)
(27
)
Net sales
2,648
2,651
2,611
10,940
2,569
2,723
2,795
2,853
___________________
(1)
Includes intersegment sales primarily
related to the Acetyl Chain.
Table 4a
Factors Affecting Segment Net Sales
Sequentially - Unaudited
Three Months Ended September 30, 2024
Compared to Three Months Ended June 30, 2024
Volume
Price
Currency
Total
(In percentages)
Engineered Materials
—
—
1
1
Acetyl Chain
—
(2
)
1
(1
)
Total Company
—
(1
)
1
—
Three Months Ended June 30, 2024
Compared to Three Months Ended March 31, 2024
Volume
Price
Currency
Total
(In percentages)
Engineered Materials
7
—
(1
)
6
Acetyl Chain
(1
)
(4
)
—
(5
)
Total Company
4
(2
)
—
2
Three Months Ended March 31, 2024
Compared to Three Months Ended December 31, 2023
Volume
Price
Currency
Total
(In percentages)
Engineered Materials
(1
)
(1
)
—
(2
)
Acetyl Chain
5
1
1
7
Total Company
2
—
—
2
Three Months Ended December 31, 2023
Compared to Three Months Ended September 30, 2023
Volume
Price
Currency
Total
(In percentages)
Engineered Materials
(5
)
(3
)
—
(8
)
(1)
Acetyl Chain
—
(3
)
—
(3
)
Total Company
(3
)
(3
)
—
(6
)
__________________
(1)
Includes the effect of the formation of
the Nutrinova joint venture.
Three Months Ended September 30, 2023
Compared to Three Months Ended June 30, 2023
Volume
Price
Currency
Total
(In percentages)
Engineered Materials
(1
)
(3
)
—
(4
)
Acetyl Chain
3
(3
)
(1
)
(1
)
Total Company
1
(3
)
(1
)
(3
)
Three Months Ended June 30, 2023
Compared to Three Months Ended March 31, 2023
Volume
Price
Currency
Total
(In percentages)
Engineered Materials
2
(5
)
—
(3
)
Acetyl Chain
2
(3
)
—
(1
)
Total Company
2
(4
)
—
(2
)
Three Months Ended March 31, 2023
Compared to Three Months Ended December 31, 2022
Volume
Price
Currency
Total
(In percentages)
Engineered Materials
34
(4
)
2
32
Acetyl Chain
10
(2
)
2
10
Total Company
19
(4
)
2
17
Table 4b
Factors Affecting Segment Net Sales
Year Over Year - Unaudited
Three Months Ended September 30, 2024
Compared to Three Months Ended September 30, 2023
Volume
Price
Currency
Total
(In percentages)
Engineered Materials
(1
)
(2
)
—
(3
)
Acetyl Chain
1
(3
)
—
(2
)
Total Company
—
(3
)
—
(3
)
Three Months Ended June 30, 2024
Compared to Three Months Ended June 30, 2023
Volume
Price
Currency
Total
(In percentages)
Engineered Materials
(2
)
(4
)
(1
)
(7
)
Acetyl Chain
4
(6
)
(1
)
(3
)
Total Company
1
(5
)
(1
)
(5
)
Three Months Ended March 31, 2024
Compared to Three Months Ended March 31, 2023
Volume
Price
Currency
Total
(In percentages)
Engineered Materials
(12
)
(2
)
(1
)
(15
)
Acetyl Chain
11
(10
)
—
1
Total Company
(2
)
(5
)
(1
)
(8
)
Three Months Ended December 31, 2023 Compared to Three Months
Ended December 31, 2022
Volume
Price
Currency
Total
(In percentages)
Engineered Materials
21
(8
)
1
14
Acetyl Chain
14
(11
)
1
4
Total Company
18
(10
)
1
9
Three Months Ended September 30, 2023
Compared to Three Months Ended September 30, 2022
Volume
Price
Currency
Total
(In percentages)
Engineered Materials
75
(12
)
1
64
Acetyl Chain
4
(18
)
1
(13
)
Total Company
33
(16
)
1
18
Three Months Ended June 30, 2023
Compared to Three Months Ended June 30, 2022
Volume
Price
Currency
Total
(In percentages)
Engineered Materials
75
(8
)
—
67
Acetyl Chain
(2
)
(19
)
—
(21
)
Total Company
27
(15
)
—
12
Three Months Ended March 31, 2023 Compared to Three Months
Ended March 31, 2022
Volume
Price
Currency
Total
(In percentages)
Engineered Materials
80
2
(3
)
79
Acetyl Chain
(9
)
(13
)
(2
)
(24
)
Total Company
23
(8
)
(3
)
12
Table 4c
Factors Affecting Segment Net Sales
Year Over Year - Unaudited
Year Ended December 31, 2023 Compared
to Year Ended December 31, 2022
Volume
Price
Currency
Total
(In percentages)
Engineered Materials
54
(1
)
—
53
Acetyl Chain
2
(17
)
—
(15
)
Total Company
23
(10
)
—
13
Table 5
Free Cash Flow - Reconciliation of a
Non-GAAP Measure - Unaudited
Q3 '24
Q2 '24
Q1 '24
2023
Q4 '23
Q3 '23
Q2 '23
Q1 '23
(In $ millions, except
percentages)
Net cash provided by (used in) investing
activities
(100
)
(91
)
(151
)
(134
)
(168
)
375
(163
)
(178
)
Net cash provided by (used in) financing
activities
(376
)
(489
)
(259
)
(1,456
)
(240
)
(700
)
(447
)
(69
)
Net cash provided by (used in) operating
activities
79
292
101
1,899
830
403
762
(96
)
Capital expenditures on property, plant
and equipment
(88
)
(105
)
(137
)
(568
)
(128
)
(131
)
(145
)
(164
)
Contributions from/(Distributions) to
NCI
(7
)
(14
)
(4
)
(11
)
—
(4
)
(6
)
(1
)
Free cash flow(1)
(16
)
173
(40
)
1,320
702
268
611
(261
)
Net sales
2,648
2,651
2,611
10,940
2,569
2,723
2,795
2,853
Free cash flow as % of Net
sales
(0.6
)%
6.5
%
(1.5
)%
12.1
%
27.3
%
9.8
%
21.9
%
(9.1
)% ___________________
(1)
Free cash flow is a liquidity measure used
by the Company and is defined by the Company as net cash provided
by (used in) operating activities, less capital expenditures on
property, plant and equipment, and adjusted for contributions from
or distributions to our NCI joint ventures.
Table 6
Cash Dividends Received -
Unaudited
Q3 '24
Q2 '24
Q1 '24
2023
Q4 '23
Q3 '23
Q2 '23
Q1 '23
(In $ millions)
Dividends from equity method
investments
26
69
27
157
85
7
25
40
Dividends from equity investments without
readily determinable fair values
30
31
34
126
31
30
31
34
Total
56
100
61
283
116
37
56
74
Table 7
Net Debt - Reconciliation of a Non-GAAP
Measure - Unaudited
Q3 '24
Q2 '24
Q1 '24
2023
Q4 '23
Q3 '23
Q2 '23
Q1 '23
(In $ millions)
Short-term borrowings and current
installments of long-term debt - third party and affiliates
1,607
1,977
2,439
1,383
1,383
1,408
1,507
1,386
Long-term debt, net of unamortized
deferred financing costs
11,324
11,058
11,018
12,301
12,301
12,291
12,889
13,396
Total debt
12,931
13,035
13,457
13,684
13,684
13,699
14,396
14,782
Cash and cash equivalents
(813
)
(1,185
)
(1,483
)
(1,805
)
(1,805
)
(1,357
)
(1,296
)
(1,167
)
Net debt
12,118
11,850
11,974
11,879
11,879
12,342
13,100
13,615
Table 8
Certain Items - Unaudited
The following Certain Items attributable
to Celanese Corporation are included in Net earnings (loss) and are
adjustments to non-GAAP measures:
Q3 '24
Q2 '24
Q1 '24
2023
Q4 '23
Q3 '23
Q2 '23
Q1 '23
Income Statement
Classification
(In $ millions)
Exit and shutdown costs
52
69
68
89
33
9
21
26
Cost of sales / SG&A / Other (charges)
gains, net / Gain (loss) on disposition of businesses and assets,
net / Non-operating pension and other postretirement employee
benefit (expense) income
Asset impairments
34
(1)
3
—
15
6
9
—
—
Cost of sales / Other (charges) gains,
net
Impact from plant incidents and natural
disasters
3
(2)
—
7
(3)
6
—
—
—
6
(4)
Cost of sales
Mergers, acquisitions and dispositions
17
26
25
195
27
46
23
99
Cost of sales / SG&A
Actuarial (gain) loss on pension and
postretirement plans
—
—
—
69
69
—
—
—
Cost of sales / SG&A / Non-operating
pension and other postretirement employee benefit (expense)
income
Legal settlements and commercial
disputes
7
3
(8
)
12
4
2
6
—
Cost of sales / SG&A / Other (charges)
gains, net
(Gain) loss on disposition of businesses
and assets
1
1
—
(510
)
(3
)
(508
)
1
—
Gain (loss) on disposition of businesses
and assets, net
Other
—
—
5
10
3
4
3
—
Cost of sales / SG&A
Certain Items attributable to Celanese
Corporation
114
102
97
(114
)
139
(438
)
54
131
_________________
(1)
Related to impairment of certain
tradenames, primarily Zytel®, in connection with our annual
goodwill and indefinite-lived intangible asset impairment
tests.
(2)
Primarily associated with
Hurricane Beryl and Hurricane Helene.
(3)
Primarily associated with Winter
Storm Heather.
(4)
Primarily associated with Winter
Storm Elliott.
Table 9
Return on Invested Capital (Adjusted) -
Presentation of a Non-GAAP Measure - Unaudited
2023
(In $ millions, except
percentages)
Net earnings (loss) attributable to
Celanese Corporation
1,960
Adjusted EBIT (Table 1)
1,753
Adjusted effective tax rate (Table 3a)
9
%
Adjusted EBIT tax effected
1,595
2023
2022
Average
(In $ millions, except
percentages)
Short-term borrowings and current
installments of long-term debt - third parties and affiliates
1,383
1,306
1,345
Long-term debt, net of unamortized
deferred financing costs
12,301
13,373
12,837
Celanese Corporation shareholders'
equity
7,091
5,637
6,364
Invested capital
20,546
Return on invested capital
(adjusted)
7.8
%
Net earnings (loss) attributable to
Celanese Corporation as a percentage of invested capital
9.5
%
View source
version on businesswire.com: https://www.businesswire.com/news/home/20241031469130/en/
Investor Relations Bill Cunningham Phone: +1 302 999 6410
william.cunningham@celanese.com
Media - U.S. Brian Bianco Phone: +1 972 443 4400
media@celanese.com
Media - Europe Petra Czugler Phone: +49 69 45009 1206
petra.czugler@celanese.com
Celanese (NYSE:CE)
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