Celanese Corporation Reports Third Quarter 2020 Earnings; Highlights Strong Demand Recovery
Celanese Corporation (NYSE: CE) reported third-quarter 2020 earnings with GAAP diluted EPS of $1.76 and adjusted EPS of $1.95, reflecting a robust net sales of $1.4 billion, a 20% volume recovery sequentially. Operating profit improved to $184 million, with adjusted EBIT at $290 million. The completion of the Polyplastics joint venture sale generated $1.6 billion, enhancing investment capabilities. Strong cash flow was evident with $431 million in operating cash flow and $351 million in free cash flow. The company forecasts full-year adjusted EPS between $7.00 and $7.10.
- 20% volume recovery in net sales sequentially.
- Generated $1.6 billion from Polyplastics joint venture sale to invest in growth.
- Operating cash flow of $431 million and free cash flow of $351 million.
- Anticipated adjusted EPS for 2020 expected between $7.00 and $7.10.
- Acetyl Chain product pricing remained depressed despite volume recovery.
- Sequential operating profit decline compared to the same quarter last year.
DALLAS--(BUSINESS WIRE)--Celanese Corporation (NYSE: CE), a global chemical and specialty materials company, today reported third quarter GAAP diluted earnings per share of
"Our financial results are again a reflection of the commitment of our employees to the success of Celanese in any environment. They have taken decisive actions throughout this year to respond to the difficult realities of COVID-19 and continue to navigate persistent challenges to better serve and support our customers each day. With the recovery we have seen to date, I am pleased to share that all of our production facilities across the globe are again fully staffed and operating to meet demand. We continue to closely monitor business conditions and will remain nimble and purposeful in preparing ourselves for continued recovery and growth in the future. We are encouraged by robust demand recovery for our products across all regions in the third quarter," said Lori Ryerkerk, chairman and chief executive officer.
Third Quarter 2020 Financial Highlights:
|
Three Months Ended |
||||||||||
|
September 30, 2020 |
|
June 30, 2020 |
|
September 30, 2019 |
||||||
|
(unaudited) |
||||||||||
|
(In $ millions, except per share data) |
||||||||||
Net Sales |
|
|
|
|
|
||||||
Engineered Materials |
526 |
|
|
420 |
|
|
591 |
|
|||
Acetate Tow |
129 |
|
|
127 |
|
|
158 |
|
|||
Acetyl Chain |
776 |
|
|
662 |
|
|
867 |
|
|||
Intersegment Eliminations |
(20 |
) |
|
(16 |
) |
|
(30 |
) |
|||
Total |
1,411 |
|
|
1,193 |
|
|
1,586 |
|
|||
|
|
|
|
|
|
||||||
Operating Profit (Loss) |
|
|
|
|
|
||||||
Engineered Materials |
84 |
|
|
(13 |
) |
|
111 |
|
|||
Acetate Tow |
30 |
|
|
31 |
|
|
34 |
|
|||
Acetyl Chain |
121 |
|
|
121 |
|
|
180 |
|
|||
Other Activities |
(51 |
) |
|
(56 |
) |
|
(65 |
) |
|||
Total |
184 |
|
|
83 |
|
|
260 |
|
|||
|
|
|
|
|
|
||||||
Net Earnings (Loss) |
209 |
|
|
109 |
|
|
265 |
|
|||
|
|
|
|
|
|
||||||
Adjusted EBIT(1) |
|
|
|
|
|
||||||
Engineered Materials |
116 |
|
|
40 |
|
|
154 |
|
|||
Acetate Tow |
59 |
|
|
64 |
|
|
71 |
|
|||
Acetyl Chain |
126 |
|
|
116 |
|
|
191 |
|
|||
Other Activities |
(11 |
) |
|
(21 |
) |
|
(40 |
) |
|||
Total |
290 |
|
|
199 |
|
|
376 |
|
|||
Equity Earnings and Dividend Income, Other Income (Expense) |
|
|
|
|
|
||||||
Engineered Materials |
21 |
|
|
26 |
|
|
41 |
|
|||
Acetate Tow |
28 |
|
|
32 |
|
|
27 |
|
|||
|
|
|
|
|
|
||||||
Operating EBITDA(1) |
378 |
|
|
285 |
|
|
458 |
|
|||
Diluted EPS - continuing operations |
$ |
1.76 |
|
|
$ |
0.93 |
|
|
$ |
2.17 |
|
Diluted EPS - total |
$ |
1.75 |
|
|
$ |
0.90 |
|
|
$ |
2.13 |
|
Adjusted EPS(1) |
$ |
1.95 |
|
|
$ |
1.30 |
|
|
$ |
2.53 |
|
Net cash provided by (used in) investing activities |
(78 |
) |
|
(181 |
) |
|
(82 |
) |
|||
Net cash provided by (used in) financing activities |
(290 |
) |
|
(232 |
) |
|
(299 |
) |
|||
Net cash provided by (used in) operating activities |
431 |
|
|
379 |
|
|
397 |
|
|||
Free cash flow(1) |
351 |
|
|
283 |
|
|
315 |
|
|||
| ______________________________ | |
| (1) | See "Non-US GAAP Financial Measures" below. |
Third Quarter 2020 Highlights:
-
Completed in early October the previously announced sale of the 45 percent equity investment in the Polyplastics joint venture to Daicel for approximately
$1.6 billion . Proceeds are expected to be redeployed to higher return investments. -
Repurchased
$111 million in shares in the third quarter in anticipation of the completion of the Polyplastics transaction. An additional approximately$400 million in share repurchases in connection with the Polyplastics transaction are expected to be completed during the fourth quarter of 2020, for a total of approximately$500 million . - Announced a project to expand GUR® UHMW-PE capacity by approximately 15 kt at the Bishop, Texas facility to meet growing demand including Celanese lithium-ion battery solutions. After completion in early 2022, total capacity will exceed 50 kt per year.
- Launched BlueRidge™ cellulosic pellets, produced using cellulose from sustainably forested trees and acetic acid, as an alternative for conventional plastics in single-use consumer applications.
-
Delivered robust operating cash flow of
$431 million and free cash flow of$351 million amid demand recovery. -
Paid off bilateral term loans taken in the first quarter of 2020, totaling
$300 million . The loans provided excess liquidity throughout the middle of 2020. - Elected Deborah J. Kissire to the Company's Board of Directors in October. Ms. Kissire is a retired partner from Ernst & Young LLP.
Third Quarter 2020 Business Segment Overview
Engineered Materials
Engineered Materials reported net sales of
Acetyl Chain
The Acetyl Chain generated third quarter net sales of
Acetate Tow
Acetate Tow recorded net sales of
Cash Flow and Tax
The Company generated third quarter operating cash flow and free cash flow of
Outlook
"Across most of our end markets, global demand during the third quarter progressed well along the path of recovery," continued Ryerkerk. "We are monitoring the current resurgence of COVID-19 across various locations for any impact to our businesses. At this stage, the October and November order books are shaping consistently with the third quarter and show no indications of demand retraction. We expect continued momentum in the fourth quarter to partially offset various sequential headwinds including normal December seasonality and a major turnaround at our Frankfurt POM facility. Including all these factors, we expect full year 2020 adjusted earnings of approximately
The Company is unable to reconcile forecasted adjusted earnings per share growth to US GAAP diluted earnings per share without unreasonable efforts because a forecast of Certain Items, such as mark-to-market pension gains/losses, 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 October 25, 2020. 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 chemical leader in the production of differentiated chemistry solutions and specialty materials used in most major industries and consumer applications. Our businesses use the full breadth of Celanese's global chemistry, technology and commercial expertise to create value for our customers, employees, shareholders and the corporation. As we partner with our customers to solve their most critical business needs, we strive to make a positive impact on our communities and the world through The Celanese Foundation. Based in Dallas, Celanese employs approximately 7,700 employees worldwide and had 2019 net sales of
Forward-Looking Statements
This release may contain "forward-looking statements," which include information concerning the Company's plans, objectives, goals, strategies, future revenues or performance, capital expenditures, 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; changes in the price and availability of raw materials, particularly changes in the demand for, supply of, and market prices of ethylene, methanol, natural gas, wood pulp and fuel oil and the prices for electricity and other energy sources; the ability to pass increases in raw material prices on to customers or otherwise improve margins through price increases; the ability to maintain plant utilization rates and to implement planned capacity additions and expansions as well as facility turnarounds; the ability to reduce or maintain their current levels of production costs and to improve productivity by implementing technological improvements to existing plants; the ability to identify desirable potential acquisition targets and to consummate acquisition or investment transactions consistent with the Company's strategy; increased price competition and the introduction of competing products by other companies; market acceptance of our technology; the ability to obtain governmental approvals and to construct facilities on terms and schedules acceptable to the Company; changes in tariffs, tax rates or legislation; changes in the degree of intellectual property and other legal protection afforded to our products or technologies, or the theft of such intellectual property; compliance and other costs and potential disruption or interruption of production or operations due to accidents, interruptions in sources of raw materials, cyber security 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 occurrence of acts of war or terrorist incidents or as a result of weather or natural disasters or other crises including public health crises; potential liability for remedial actions and increased costs under existing or future environmental regulations, including those relating to climate change; potential liability resulting from pending or future litigation, or from changes in the laws, regulations or policies of governments or other governmental activities in the countries in which we operate; changes in currency exchange rates and interest rates; 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 various other factors discussed from time to time in the Company's filings with the Securities and Exchange Commission.
The extent to which COVID-19 will adversely impact our business, financial condition and results of operations will depend on numerous evolving factors, which are highly uncertain, rapidly changing and cannot be predicted, including: the duration, scope, severity and geographic spread of the outbreak; governmental, business and individual actions that have been and continue to be taken in response to the outbreak, including social distancing, work-at-home, stay-at-home and shelter-in-place orders and shutdowns, travel restrictions and quarantines; the effect of the outbreak on our customers, suppliers, supply chain and other business partners; our ability during the outbreak to provide our products and services, including the health and well-being of our employees; business disruptions caused by actual or potential plant, workplace and office closures, and an increased reliance on employees working from home, disruptions to or delays in ongoing laboratory and product testing, experiments and operations, staffing shortages, travel limitations, employee health issues, cyber security and data accessibility, or communication or mass transit disruptions, any of which could adversely impact our business operations or delay necessary interactions with local regulators, manufacturing sites and other important agencies and contractors; the ability of our customers to pay for our products and services during and following the outbreak; the impact of the outbreak on the financial markets and economic activity generally; our ability to access usual sources of liquidity on reasonable terms; and our ability to comply with the financial covenant in our Credit Agreement if a material and prolonged economic downturn results in increased indebtedness or substantially lower EBITDA.
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 three business segments, Engineered Materials, Acetate Tow and 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, 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 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.
-
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 cash flow from operations, less capital expenditures on property, plant and equipment, and adjusted for capital contributions from or distributions to Mitsui & Co., Ltd. ("Mitsui") related to our methanol joint venture, Fairway Methanol LLC ("Fairway").
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 October 26, 2020 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, 2020 |
|
June 30, 2020 |
|
September 30, 2019 |
|||
|
(In $ millions, except share and per share data) |
|||||||
Net sales |
1,411 |
|
|
1,193 |
|
|
1,586 |
|
Cost of sales |
(1,084 |
) |
|
(951 |
) |
|
(1,172 |
) |
Gross profit |
327 |
|
|
242 |
|
|
414 |
|
Selling, general and administrative expenses |
(106 |
) |
|
(114 |
) |
|
(120 |
) |
Amortization of intangible assets |
(6 |
) |
|
(6 |
) |
|
(6 |
) |
Research and development expenses |
(19 |
) |
|
(18 |
) |
|
(17 |
) |
Other (charges) gains, net |
(10 |
) |
|
(21 |
) |
|
(7 |
) |
Foreign exchange gain (loss), net |
(2 |
) |
|
1 |
|
|
(1 |
) |
Gain (loss) on disposition of businesses and assets, net |
— |
|
|
(1 |
) |
|
(3 |
) |
Operating profit (loss) |
184 |
|
|
83 |
|
|
260 |
|
Equity in net earnings (loss) of affiliates |
25 |
|
|
31 |
|
|
45 |
|
Non-operating pension and other postretirement employee benefit (expense) income |
28 |
|
|
27 |
|
|
17 |
|
Interest expense |
(28 |
) |
|
(27 |
) |
|
(27 |
) |
Interest income |
1 |
|
|
1 |
|
|
1 |
|
Dividend income - equity investments |
29 |
|
|
32 |
|
|
27 |
|
Other income (expense), net |
2 |
|
|
— |
|
|
— |
|
Earnings (loss) from continuing operations before tax |
241 |
|
|
147 |
|
|
323 |
|
Income tax (provision) benefit |
(30 |
) |
|
(35 |
) |
|
(53 |
) |
Earnings (loss) from continuing operations |
211 |
|
|
112 |
|
|
270 |
|
Earnings (loss) from operation of discontinued operations |
(2 |
) |
|
(4 |
) |
|
(6 |
) |
Income tax (provision) benefit from discontinued operations |
— |
|
|
1 |
|
|
1 |
|
Earnings (loss) from discontinued operations |
(2 |
) |
|
(3 |
) |
|
(5 |
) |
Net earnings (loss) |
209 |
|
|
109 |
|
|
265 |
|
Net (earnings) loss attributable to noncontrolling interests |
(2 |
) |
|
(2 |
) |
|
(2 |
) |
Net earnings (loss) attributable to Celanese Corporation |
207 |
|
|
107 |
|
|
263 |
|
Amounts attributable to Celanese Corporation |
|
|
|
|
|
|||
Earnings (loss) from continuing operations |
209 |
|
|
110 |
|
|
268 |
|
Earnings (loss) from discontinued operations |
(2 |
) |
|
(3 |
) |
|
(5 |
) |
Net earnings (loss) |
207 |
|
|
107 |
|
|
263 |
|
Earnings (loss) per common share - basic |
|
|
|
|
|
|||
Continuing operations |
1.77 |
|
|
0.93 |
|
|
2.18 |
|
Discontinued operations |
(0.02 |
) |
|
(0.03 |
) |
|
(0.04 |
) |
Net earnings (loss) - basic |
1.75 |
|
|
0.90 |
|
|
2.14 |
|
Earnings (loss) per common share - diluted |
|
|
|
|
|
|||
Continuing operations |
1.76 |
|
|
0.93 |
|
|
2.17 |
|
Discontinued operations |
(0.01 |
) |
|
(0.03 |
) |
|
(0.04 |
) |
Net earnings (loss) - diluted |
1.75 |
|
|
0.90 |
|
|
2.13 |
|
Weighted average shares (in millions) |
|
|
|
|
|
|||
Basic |
118.0 |
|
|
118.3 |
|
|
122.7 |
|
Diluted |
118.6 |
|
|
118.8 |
|
|
123.3 |
|
Consolidated Balance Sheets - Unaudited
|
As of September 30, 2020 |
|
As of December 31, 2019 |
|||
|
(In $ millions) |
|||||
ASSETS |
|
|
|
|||
Current Assets |
|
|
|
|||
Cash and cash equivalents |
615 |
|
|
463 |
|
|
Trade receivables - third party and affiliates, net |
716 |
|
|
850 |
|
|
Non-trade receivables, net |
347 |
|
|
331 |
|
|
Inventories |
1,001 |
|
|
1,038 |
|
|
Marketable securities |
35 |
|
|
40 |
|
|
Other assets |
57 |
|
|
43 |
|
|
Total current assets |
2,771 |
|
|
2,765 |
|
|
Investments in affiliates |
993 |
|
|
975 |
|
|
Property, plant and equipment, net |
3,851 |
|
|
3,713 |
|
|
Operating lease right-of-use assets |
210 |
|
|
203 |
|
|
Deferred income taxes |
87 |
|
|
96 |
|
|
Other assets |
412 |
|
|
338 |
|
|
Goodwill |
1,128 |
|
|
1,074 |
|
|
Intangible assets, net |
317 |
|
|
312 |
|
|
Total assets |
9,769 |
|
|
9,476 |
|
|
LIABILITIES AND EQUITY |
|
|
|
|||
Current Liabilities |
|
|
|
|||
Short-term borrowings and current installments of long-term debt - third party and affiliates |
958 |
|
|
496 |
|
|
Trade payables - third party and affiliates |
699 |
|
|
780 |
|
|
Other liabilities |
632 |
|
|
461 |
|
|
Income taxes payable |
120 |
|
|
17 |
|
|
Total current liabilities |
2,409 |
|
|
1,754 |
|
|
Long-term debt, net of unamortized deferred financing costs |
3,140 |
|
|
3,409 |
|
|
Deferred income taxes |
164 |
|
|
257 |
|
|
Uncertain tax positions |
200 |
|
|
165 |
|
|
Benefit obligations |
584 |
|
|
589 |
|
|
Operating lease liabilities |
191 |
|
|
181 |
|
|
Other liabilities |
197 |
|
|
223 |
|
|
Commitments and Contingencies |
|
|
|
|||
Stockholders' Equity |
|
|
|
|||
Treasury stock, at cost |
(4,106 |
) |
|
(3,846 |
) |
|
Additional paid-in capital |
248 |
|
|
254 |
|
|
Retained earnings |
6,710 |
|
|
6,399 |
|
|
Accumulated other comprehensive income (loss), net |
(344 |
) |
|
(300 |
) |
|
Total Celanese Corporation stockholders' equity |
2,508 |
|
|
2,507 |
|
|
Noncontrolling interests |
376 |
|
|
391 |
|
|
Total equity |
2,884 |
|
|
2,898 |
|
|
Total liabilities and equity |
9,769 |
|
|
9,476 |
|
|
Non-US GAAP Financial Measures and Supplemental Information
October 25, 2020
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 three business segments, Engineered Materials, Acetate Tow and 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 stockholders' 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 capital contributions from or distributions to Mitsui & Co., Ltd. ("Mitsui") related to our methanol joint venture, Fairway Methanol LLC ("Fairway"). 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.
- 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 stockholders' 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 stockholders 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 stockholders' interests are shown as NCI. Beginning in 2014, this includes Fairway for which the Company's ownership percentage is50% . 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 Adjusted EBIT and Operating EBITDA - Reconciliation of Non-GAAP Measures - Unaudited |
|||||||||||||||||||||||
Q3 '20 |
|
Q2 '20 |
|
Q1 '20 |
|
2019 |
|
Q4 '19 |
|
Q3 '19 |
|
Q2 '19 |
|
Q1 '19 |
|||||||||
|
(In $ millions) |
||||||||||||||||||||||
Net earnings (loss) attributable to Celanese Corporation |
207 |
|
|
107 |
|
|
218 |
|
|
852 |
|
|
43 |
|
|
263 |
|
|
209 |
|
|
337 |
|
(Earnings) loss from discontinued operations |
2 |
|
|
3 |
|
|
7 |
|
|
6 |
|
|
(1 |
) |
|
5 |
|
|
1 |
|
|
1 |
|
Interest income |
(1 |
) |
|
(1 |
) |
|
(2 |
) |
|
(6 |
) |
|
(2 |
) |
|
(1 |
) |
|
(2 |
) |
|
(1 |
) |
Interest expense |
28 |
|
|
27 |
|
|
28 |
|
|
115 |
|
|
28 |
|
|
27 |
|
|
29 |
|
|
31 |
|
Refinancing expense |
— |
|
|
— |
|
|
— |
|
|
4 |
|
|
— |
|
|
— |
|
|
4 |
|
|
— |
|
Income tax provision (benefit) |
30 |
|
|
35 |
|
|
65 |
|
|
124 |
|
|
(3 |
) |
|
53 |
|
|
28 |
|
|
46 |
|
Certain Items attributable to Celanese Corporation (Table 8) |
24 |
|
|
28 |
|
|
26 |
|
|
381 |
|
|
238 |
|
|
29 |
|
|
107 |
|
|
7 |
|
Adjusted EBIT |
290 |
|
|
199 |
|
|
342 |
|
|
1,476 |
|
|
303 |
|
|
376 |
|
|
376 |
|
|
421 |
|
Depreciation and amortization expense(1) |
88 |
|
|
86 |
|
|
83 |
|
|
329 |
|
|
84 |
|
|
82 |
|
|
82 |
|
|
81 |
|
Operating EBITDA |
378 |
|
|
285 |
|
|
425 |
|
|
1,805 |
|
|
387 |
|
|
458 |
|
|
458 |
|
|
502 |
|
|
Q3 '20 |
|
Q2 '20 |
|
Q1 '20 |
|
2019 |
|
Q4 '19 |
|
Q3 '19 |
|
Q2 '19 |
|
Q1 '19 |
||||||||
|
(In $ millions) |
||||||||||||||||||||||
Engineered Materials |
1 |
|
|
— |
|
|
2 |
|
|
4 |
|
|
2 |
|
|
1 |
|
|
— |
|
|
1 |
|
Acetate Tow |
— |
|
|
— |
|
|
— |
|
|
9 |
|
|
2 |
|
|
5 |
|
|
2 |
|
|
— |
|
Acetyl Chain |
— |
|
|
1 |
|
|
— |
|
|
10 |
|
|
3 |
|
|
6 |
|
|
— |
|
|
1 |
|
Other Activities(2) |
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
Accelerated depreciation and amortization expense |
1 |
|
|
1 |
|
|
2 |
|
|
23 |
|
|
7 |
|
|
12 |
|
|
2 |
|
|
2 |
|
Depreciation and amortization expense(1) |
88 |
|
|
86 |
|
|
83 |
|
|
329 |
|
|
84 |
|
|
82 |
|
|
82 |
|
|
81 |
|
Total depreciation and amortization expense |
89 |
|
|
87 |
|
|
85 |
|
|
352 |
|
|
91 |
|
|
94 |
|
|
84 |
|
|
83 |
|
____________________ |
|
(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, the 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 '20 |
|
Q2 '20 |
|
Q1 '20 |
|
2019 |
|
Q4 '19 |
|
Q3 '19 |
|
Q2 '19 |
|
Q1 '19 |
|||||||||||||||||||||||||||||||||
|
(In $ millions, except percentages) |
||||||||||||||||||||||||||||||||||||||||||||||
Operating Profit (Loss) / Operating Margin |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Engineered Materials |
84 |
|
|
16.0 |
% |
|
(13 |
) |
|
(3.1 |
)% |
|
102 |
|
|
18.1 |
% |
|
446 |
|
|
18.7 |
% |
|
88 |
|
|
16.3 |
% |
|
111 |
|
|
18.8 |
% |
|
103 |
|
|
17.4 |
% |
|
144 |
|
|
21.7 |
% |
Acetate Tow |
30 |
|
|
23.3 |
% |
|
31 |
|
|
24.4 |
% |
|
27 |
|
|
20.9 |
% |
|
52 |
|
|
8.2 |
% |
|
22 |
|
|
14.9 |
% |
|
34 |
|
|
21.5 |
% |
|
(44 |
) |
|
(26.8 |
)% |
|
40 |
|
|
24.1 |
% |
Acetyl Chain(1) |
121 |
|
|
15.6 |
% |
|
121 |
|
|
18.3 |
% |
|
135 |
|
|
16.9 |
% |
|
678 |
|
|
20.0 |
% |
|
108 |
|
|
14.0 |
% |
|
180 |
|
|
20.8 |
% |
|
188 |
|
|
21.7 |
% |
|
202 |
|
|
22.7 |
% |
Other Activities(2) |
(51 |
) |
|
|
|
(56 |
) |
|
|
|
(70 |
) |
|
|
|
(342 |
) |
|
|
|
(150 |
) |
|
|
|
(65 |
) |
|
|
|
(61 |
) |
|
|
|
(66 |
) |
|
|
||||||||
Total |
184 |
|
|
13.0 |
% |
|
83 |
|
|
7.0 |
% |
|
194 |
|
|
13.3 |
% |
|
834 |
|
|
13.2 |
% |
|
68 |
|
|
4.7 |
% |
|
260 |
|
|
16.4 |
% |
|
186 |
|
|
11.7 |
% |
|
320 |
|
|
19.0 |
% |
Less: Net Earnings (Loss) Attributable to NCI(1) |
2 |
|
|
|
|
2 |
|
|
|
|
2 |
|
|
|
|
6 |
|
|
|
|
2 |
|
|
|
|
2 |
|
|
|
|
1 |
|
|
|
|
1 |
|
|
|
||||||||
Operating Profit (Loss) Attributable to Celanese Corporation |
182 |
|
|
12.9 |
% |
|
81 |
|
|
6.8 |
% |
|
192 |
|
|
13.2 |
% |
|
828 |
|
|
13.1 |
% |
|
66 |
|
|
4.6 |
% |
|
258 |
|
|
16.3 |
% |
|
185 |
|
|
11.6 |
% |
|
319 |
|
|
18.9 |
% |
Operating Profit (Loss) / Operating Margin Attributable to Celanese Corporation |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Engineered Materials |
84 |
|
|
16.0 |
% |
|
(13 |
) |
|
(3.1 |
)% |
|
102 |
|
|
18.1 |
% |
|
446 |
|
|
18.7 |
% |
|
88 |
|
|
16.3 |
% |
|
111 |
|
|
18.8 |
% |
|
103 |
|
|
17.4 |
% |
|
144 |
|
|
21.7 |
% |
Acetate Tow |
30 |
|
|
23.3 |
% |
|
31 |
|
|
24.4 |
% |
|
27 |
|
|
20.9 |
% |
|
52 |
|
|
8.2 |
% |
|
22 |
|
|
14.9 |
% |
|
34 |
|
|
21.5 |
% |
|
(44 |
) |
|
(26.8 |
)% |
|
40 |
|
|
24.1 |
% |
Acetyl Chain(1) |
119 |
|
|
15.3 |
% |
|
119 |
|
|
18.0 |
% |
|
133 |
|
|
16.6 |
% |
|
672 |
|
|
19.8 |
% |
|
106 |
|
|
13.7 |
% |
|
178 |
|
|
20.5 |
% |
|
187 |
|
|
21.6 |
% |
|
201 |
|
|
22.6 |
% |
Other Activities(2) |
(51 |
) |
|
|
|
(56 |
) |
|
|
|
(70 |
) |
|
|
|
(342 |
) |
|
|
|
(150 |
) |
|
|
|
(65 |
) |
|
|
|
(61 |
) |
|
|
|
(66 |
) |
|
|
||||||||
Total |
182 |
|
|
12.9 |
% |
|
81 |
|
|
6.8 |
% |
|
192 |
|
|
13.2 |
% |
|
828 |
|
|
13.1 |
% |
|
66 |
|
|
4.6 |
% |
|
258 |
|
|
16.3 |
% |
|
185 |
|
|
11.6 |
% |
|
319 |
|
|
18.9 |
% |
Equity Earnings and Dividend Income, Other Income (Expense) Attributable to Celanese Corporation |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Engineered Materials |
21 |
|
|
|
|
26 |
|
|
|
|
53 |
|
|
|
|
168 |
|
|
|
|
45 |
|
|
|
|
41 |
|
|
|
|
36 |
|
|
|
|
46 |
|
|
|
||||||||
Acetate Tow |
28 |
|
|
|
|
32 |
|
|
|
|
37 |
|
|
|
|
112 |
|
|
|
|
24 |
|
|
|
|
27 |
|
|
|
|
29 |
|
|
|
|
32 |
|
|
|
||||||||
Acetyl Chain |
2 |
|
|
|
|
— |
|
|
|
|
1 |
|
|
|
|
5 |
|
|
|
|
1 |
|
|
|
|
2 |
|
|
|
|
1 |
|
|
|
|
1 |
|
|
|
||||||||
Other Activities(2) |
5 |
|
|
|
|
5 |
|
|
|
|
5 |
|
|
|
|
2 |
|
|
|
|
— |
|
|
|
|
2 |
|
|
|
|
1 |
|
|
|
|
(1 |
) |
|
|
||||||||
Total |
56 |
|
|
|
|
63 |
|
|
|
|
96 |
|
|
|
|
287 |
|
|
|
|
70 |
|
|
|
|
72 |
|
|
|
|
67 |
|
|
|
|
78 |
|
|
|
||||||||
Non-Operating Pension and Other Post-Retirement Employee Benefit (Expense) Income Attributable to Celanese Corporation |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||
Engineered Materials |
— |
|
|
|
|
— |
|
|
|
|
— |
|
|
|
|
— |
|
|
|
|
— |
|
|
|
|
— |
|
|
|
|
— |
|
|
|
|
— |
|
|
|
||||||||
Acetate Tow |
— |
|
|
|
|
— |
|
|
|
|
— |
|
|
|
|
— |
|
|
|
|
— |
|
|
|
|
— |
|
|
|
|
— |
|
|
|
|
— |
|
|
|
||||||||
Acetyl Chain |
— |
|
|
|
|
— |
|
|
|
|
— |
|
|
|
|
— |
|
|
|
|
— |
|
|
|
|
— |
|
|
|
|
— |
|
|
|
|
— |
|
|
|
||||||||
Other Activities(2) |
28 |
|
|
|
|
27 |
|
|
|
|
28 |
|
|
|
|
(20 |
) |
|
|
|
(71 |
) |
|
|
|
17 |
|
|
|
|
17 |
|
|
|
|
17 |
|
|
|
||||||||
Total |
28 |
|
|
|
|
27 |
|
|
|
|
28 |
|
|
|
|
(20 |
) |
|
|
|
(71 |
) |
|
|
|
17 |
|
|
|
|
17 |
|
|
|
|
17 |
|
|
|
||||||||
Certain Items Attributable to Celanese Corporation (Table 8) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Engineered Materials |
11 |
|
|
|
|
27 |
|
|
|
|
10 |
|
|
|
|
7 |
|
|
|
|
3 |
|
|
|
|
2 |
|
|
|
|
9 |
|
|
|
|
(7 |
) |
|
|
||||||||
Acetate Tow |
1 |
|
|
|
|
1 |
|
|
|
|
3 |
|
|
|
|
104 |
|
|
|
|
8 |
|
|
|
|
10 |
|
|
|
|
86 |
|
|
|
|
— |
|
|
|
||||||||
Acetyl Chain |
5 |
|
|
|
|
(3 |
) |
|
|
|
5 |
|
|
|
|
50 |
|
|
|
|
37 |
|
|
|
|
11 |
|
|
|
|
1 |
|
|
|
|
1 |
|
|
|
||||||||
Other Activities(2) |
7 |
|
|
|
|
3 |
|
|
|
|
8 |
|
|
|
|
220 |
|
|
|
|
190 |
|
|
|
|
6 |
|
|
|
|
11 |
|
|
|
|
13 |
|
|
|
||||||||
Total |
24 |
|
|
|
|
28 |
|
|
|
|
26 |
|
|
|
|
381 |
|
|
|
|
238 |
|
|
|
|
29 |
|
|
|
|
107 |
|
|
|
|
7 |
|
|
|
||||||||
Adjusted EBIT / Adjusted EBIT Margin |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Engineered Materials |
116 |
|
|
22.1 |
% |
|
40 |
|
|
9.5 |
% |
|
165 |
|
|
29.3 |
% |
|
621 |
|
|
26.0 |
% |
|
136 |
|
|
25.2 |
% |
|
154 |
|
|
26.1 |
% |
|
148 |
|
|
25.0 |
% |
|
183 |
|
|
27.6 |
% |
Acetate Tow |
59 |
|
|
45.7 |
% |
|
64 |
|
|
50.4 |
% |
|
67 |
|
|
51.9 |
% |
|
268 |
|
|
42.1 |
% |
|
54 |
|
|
36.5 |
% |
|
71 |
|
|
44.9 |
% |
|
71 |
|
|
43.3 |
% |
|
72 |
|
|
43.4 |
% |
Acetyl Chain |
126 |
|
|
16.2 |
% |
|
116 |
|
|
17.5 |
% |
|
139 |
|
|
17.4 |
% |
|
727 |
|
|
21.4 |
% |
|
144 |
|
|
18.7 |
% |
|
191 |
|
|
22.0 |
% |
|
189 |
|
|
21.8 |
% |
|
203 |
|
|
22.8 |
% |
Other Activities(2) |
(11 |
) |
|
|
|
(21 |
) |
|
|
|
(29 |
) |
|
|
|
(140 |
) |
|
|
|
(31 |
) |
|
|
|
(40 |
) |
|
|
|
(32 |
) |
|
|
|
(37 |
) |
|
|
||||||||
Total |
290 |
|
|
20.6 |
% |
|
199 |
|
|
16.7 |
% |
|
342 |
|
|
23.4 |
% |
|
1,476 |
|
|
23.4 |
% |
|
303 |
|
|
21.2 |
% |
|
376 |
|
|
23.7 |
% |
|
376 |
|
|
23.6 |
% |
|
421 |
|
|
25.0 |
% |
___________________ |
|
(1) |
Net earnings (loss) attributable to NCI is included within the Acetyl Chain segment. |
(2) |
Other Activities includes corporate SG&A expenses, the 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 '20 |
|
Q2 '20 |
|
Q1 '20 |
|
2019 |
|
Q4 '19 |
|
Q3 '19 |
|
Q2 '19 |
|
Q1 '19 |
|||||||||||||||||||||||||||||||||
|
(In $ millions, except percentages) |
||||||||||||||||||||||||||||||||||||||||||||||
Depreciation and Amortization Expense(1) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Engineered Materials |
33 |
|
|
|
|
32 |
|
|
|
|
32 |
|
|
|
|
127 |
|
|
|
|
33 |
|
|
|
|
32 |
|
|
|
|
31 |
|
|
|
|
31 |
|
|
|
||||||||
Acetate Tow |
9 |
|
|
|
|
9 |
|
|
|
|
8 |
|
|
|
|
36 |
|
|
|
|
8 |
|
|
|
|
9 |
|
|
|
|
9 |
|
|
|
|
10 |
|
|
|
||||||||
Acetyl Chain |
41 |
|
|
|
|
41 |
|
|
|
|
39 |
|
|
|
|
151 |
|
|
|
|
39 |
|
|
|
|
37 |
|
|
|
|
38 |
|
|
|
|
37 |
|
|
|
||||||||
Other Activities(2) |
5 |
|
|
|
|
4 |
|
|
|
|
4 |
|
|
|
|
15 |
|
|
|
|
4 |
|
|
|
|
4 |
|
|
|
|
4 |
|
|
|
|
3 |
|
|
|
||||||||
Total |
88 |
|
|
|
|
86 |
|
|
|
|
83 |
|
|
|
|
329 |
|
|
|
|
84 |
|
|
|
|
82 |
|
|
|
|
82 |
|
|
|
|
81 |
|
|
|
||||||||
Operating EBITDA / Operating EBITDA Margin |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Engineered Materials |
149 |
|
|
28.3 |
% |
|
72 |
|
|
17.1 |
% |
|
197 |
|
|
35.0 |
% |
|
748 |
|
|
31.3 |
% |
|
169 |
|
|
31.4 |
% |
|
186 |
|
|
31.5 |
% |
|
179 |
|
|
30.2 |
% |
|
214 |
|
|
32.3 |
% |
Acetate Tow |
68 |
|
|
52.7 |
% |
|
73 |
|
|
57.5 |
% |
|
75 |
|
|
58.1 |
% |
|
304 |
|
|
47.8 |
% |
|
62 |
|
|
41.9 |
% |
|
80 |
|
|
50.6 |
% |
|
80 |
|
|
48.8 |
% |
|
82 |
|
|
49.4 |
% |
Acetyl Chain |
167 |
|
|
21.5 |
% |
|
157 |
|
|
23.7 |
% |
|
178 |
|
|
22.3 |
% |
|
878 |
|
|
25.9 |
% |
|
183 |
|
|
23.7 |
% |
|
228 |
|
|
26.3 |
% |
|
227 |
|
|
26.2 |
% |
|
240 |
|
|
27.0 |
% |
Other Activities(2) |
(6 |
) |
|
|
|
(17 |
) |
|
|
|
(25 |
) |
|
|
|
(125 |
) |
|
|
|
(27 |
) |
|
|
|
(36 |
) |
|
|
|
(28 |
) |
|
|
|
(34 |
) |
|
|
||||||||
Total |
378 |
|
|
26.8 |
% |
|
285 |
|
|
23.9 |
% |
|
425 |
|
|
29.1 |
% |
|
1,805 |
|
|
28.7 |
% |
|
387 |
|
|
27.0 |
% |
|
458 |
|
|
28.9 |
% |
|
458 |
|
|
28.8 |
% |
|
502 |
|
|
29.8 |
% |
___________________________ |
|
(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, the 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 '20 |
|
Q2 '20 |
|
Q1 '20 |
|
2019 |
|
Q4 '19 |
|
Q3 '19 |
|
Q2 '19 |
|
Q1 '19 |
||||||||||||||||||||||||
|
|
|
per
|
|
|
|
per
|
|
|
|
per
|
|
|
|
per
|
|
|
|
per
|
|
|
|
per
|
|
|
|
per
|
|
|
|
per
|
||||||||
|
(In $ millions, except per share data) |
||||||||||||||||||||||||||||||||||||||
Earnings (loss) from continuing operations attributable to Celanese Corporation |
209 |
|
|
1.76 |
|
110 |
|
|
0.93 |
|
225 |
|
|
1.88 |
|
858 |
|
|
6.89 |
|
42 |
|
|
0.35 |
|
268 |
|
|
2.17 |
|
210 |
|
|
1.67 |
|
338 |
|
|
2.64 |
Income tax provision (benefit) |
30 |
|
|
|
|
35 |
|
|
|
|
65 |
|
|
|
|
124 |
|
|
|
|
(3 |
) |
|
|
|
53 |
|
|
|
|
28 |
|
|
|
|
46 |
|
|
|
Earnings (loss) from continuing operations before tax |
239 |
|
|
|
|
145 |
|
|
|
|
290 |
|
|
|
|
982 |
|
|
|
|
39 |
|
|
|
|
321 |
|
|
|
|
238 |
|
|
|
|
384 |
|
|
|
Certain Items attributable to Celanese Corporation (Table 8) |
24 |
|
|
|
|
28 |
|
|
|
|
26 |
|
|
|
|
381 |
|
|
|
|
238 |
|
|
|
|
29 |
|
|
|
|
107 |
|
|
|
|
7 |
|
|
|
Refinancing and related expenses |
— |
|
|
|
|
— |
|
|
|
|
— |
|
|
|
|
4 |
|
|
|
|
— |
|
|
|
|
— |
|
|
|
|
4 |
|
|
|
|
— |
|
|
|
Adjusted earnings (loss) from continuing operations before tax |
263 |
|
|
|
|
173 |
|
|
|
|
316 |
|
|
|
|
1,367 |
|
|
|
|
277 |
|
|
|
|
350 |
|
|
|
|
349 |
|
|
|
|
391 |
|
|
|
Income tax (provision) benefit on adjusted earnings(1) |
(32 |
) |
|
|
|
(18 |
) |
|
|
|
(41 |
) |
|
|
|
(178 |
) |
|
|
|
(36 |
) |
|
|
|
(38 |
) |
|
|
|
(49 |
) |
|
|
|
(55 |
) |
|
|
Adjusted earnings (loss) from continuing operations(2) |
231 |
|
|
1.95 |
|
155 |
|
|
1.30 |
|
275 |
|
|
2.29 |
|
1,189 |
|
|
9.53 |
|
241 |
|
|
1.99 |
|
312 |
|
|
2.53 |
|
300 |
|
|
2.38 |
|
336 |
|
|
2.62 |
|
Diluted shares (in millions)(3) |
||||||||||||||||||||||||||||||||||||||
Weighted average shares outstanding |
118.0 |
|
|
|
|
118.3 |
|
|
|
|
119.3 |
|
|
|
|
123.9 |
|
|
|
|
120.3 |
|
|
|
|
122.7 |
|
|
|
|
125.3 |
|
|
|
|
127.5 |
|
|
|
Incremental shares attributable to equity awards |
0.6 |
|
|
|
|
0.5 |
|
|
|
|
0.6 |
|
|
|
|
0.8 |
|
|
|
|
0.6 |
|
|
|
|
0.6 |
|
|
|
|
0.5 |
|
|
|
|
0.7 |
|
|
|
Total diluted shares |
118.6 |
|
|
|
|
118.8 |
|
|
|
|
119.9 |
|
|
|
|
124.7 |
|
|
|
|
120.9 |
|
|
|
|
123.3 |
|
|
|
|
125.8 |
|
|
|
|
128.2 |
|
|
|
| ____________________ | |
(1) |
Calculated using adjusted effective tax rates (Table 3a) as follows: |
Q3 '20 |
|
Q2 '20 |
|
Q1 '20 |
|
2019 |
|
Q4 '19 |
|
Q3 '19 |
|
Q2 '19 |
|
Q1 '19 |
|||||||||||||||||||||||||
|
(In percentages) |
||||||||||||||||||||||||||||||||||||||
Adjusted effective tax rate |
12 |
|
|
|
|
10 |
|
|
|
|
13 |
|
|
|
|
13 |
|
|
|
|
13 |
|
|
|
|
11 |
|
|
|
|
14 |
|
|
|
|
14 |
|
|
|
(2) |
Excludes the immediate recognition of actuarial gains and losses and the impact of actual vs. expected plan asset returns. |
|
|
Actual Plan
|
|
Expected
|
|
|
(In percentages) |
||
2019 |
|
16.7 |
|
6.5 |
(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 |
||
|
2020 |
|
2019 |
||
|
(In percentages) |
||||
US GAAP annual effective tax rate |
18 |
|
|
13 |
|
Discrete quarterly recognition of GAAP items(1) |
(5 |
) |
|
— |
|
Tax impact of other charges and adjustments(2) |
(1 |
) |
|
— |
|
Utilization of foreign tax credits |
(2 |
) |
|
(3 |
) |
Changes in valuation allowances, excluding impact of other charges and adjustments(3) |
1 |
|
|
3 |
|
Other(4) |
1 |
|
|
— |
|
Adjusted tax rate |
12 |
|
|
13 |
|
| ____________________ | |
Note: As part of the year-end reconciliation, we updated 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) |
Tax impacts related to full-year forecasted tax opportunities and related costs. |
Table 4 Net Sales by Segment - Unaudited |
|||||||||||||||||||||||
|
Q3 '20 |
|
Q2 '20 |
|
Q1 '20 |
|
2019 |
|
Q4 '19 |
|
Q3 '19 |
|
Q2 '19 |
|
Q1 '19 |
||||||||
|
(In $ millions) |
||||||||||||||||||||||
Engineered Materials |
526 |
|
|
420 |
|
|
563 |
|
|
2,386 |
|
|
539 |
|
|
591 |
|
|
593 |
|
|
663 |
|
Acetate Tow |
129 |
|
|
127 |
|
|
129 |
|
|
636 |
|
|
148 |
|
|
158 |
|
|
164 |
|
|
166 |
|
Acetyl Chain |
776 |
|
|
662 |
|
|
799 |
|
|
3,392 |
|
|
771 |
|
|
867 |
|
|
865 |
|
|
889 |
|
Intersegment eliminations(1) |
(20 |
) |
|
(16 |
) |
|
(31 |
) |
|
(117 |
) |
|
(26 |
) |
|
(30 |
) |
|
(30 |
) |
|
(31 |
) |
Net sales |
1,411 |
|
|
1,193 |
|
|
1,460 |
|
|
6,297 |
|
|
1,432 |
|
|
1,586 |
|
|
1,592 |
|
|
1,687 |
|
____________________ |
|
(1) |
Includes intersegment sales primarily related to the Acetyl Chain. |
Table 4a Factors Affecting Segment Net Sales Sequentially - Unaudited
Three Months Ended September 30, 2020 Compared to Three Months Ended June 30, 2020 |
||||||||||||
|
Volume |
|
Price |
|
Currency |
|
Other |
|
Total |
|
||
|
(In percentages) |
|
||||||||||
Engineered Materials |
27 |
|
(6 |
) |
|
4 |
|
— |
|
|
25 |
|
Acetate Tow |
1 |
|
1 |
|
|
1 |
|
— |
|
|
3 |
|
Acetyl Chain |
18 |
|
(2 |
) |
|
1 |
|
— |
|
|
17 |
|
|
|
|
|
|
|
|
|
|
|
|
||
Total Company |
20 |
|
(3 |
) |
|
2 |
|
(1 |
) |
|
18 |
|
Three Months Ended June 30, 2020 Compared to Three Months Ended March 31, 2020 |
||||||||||||
|
Volume |
|
Price |
|
Currency |
|
Other |
|
Total |
|||
|
(In percentages) |
|||||||||||
Engineered Materials |
(25 |
) |
|
— |
|
|
— |
|
— |
|
(25 |
) |
Acetate Tow |
(3 |
) |
|
1 |
|
|
— |
|
— |
|
(2 |
) |
Acetyl Chain |
(6 |
) |
|
(11 |
) |
|
— |
|
— |
|
(17 |
)(1) |
|
|
|
|
|
|
|
|
|
|
|||
Total Company |
(13 |
) |
|
(6 |
) |
|
— |
|
1 |
|
(18 |
) |
Three Months Ended March 31, 2020 Compared to Three Months Ended December 31, 2019 |
||||||||||||
|
Volume |
Price |
Currency |
Other |
Total |
|||||||
|
(In percentages) |
|||||||||||
Engineered Materials |
4 |
|
— |
|
— |
— |
4 |
|
||||
Acetate Tow |
(9 |
) |
(4 |
) |
— |
— |
(13 |
) |
||||
Acetyl Chain |
5 |
|
(1 |
) |
— |
— |
4 |
|
||||
|
|
|
|
|
|
|||||||
Total Company |
3 |
|
(1 |
) |
— |
— |
2 |
|
||||
Three Months Ended December 31, 2019 Compared to Three Months Ended September 30, 2019 |
|||||||||||
|
Volume |
|
Price |
|
Currency |
|
Other |
|
Total |
||
|
(In percentages) |
||||||||||
Engineered Materials |
(9 |
) |
|
— |
|
— |
|
— |
|
(9 |
) |
Acetate Tow |
(6 |
) |
|
— |
|
— |
|
— |
|
(6 |
) |
Acetyl Chain |
(11 |
) |
|
— |
|
— |
|
— |
|
(11 |
) |
|
|
|
|
|
|
|
|
|
|
||
Total Company |
(10 |
) |
|
— |
|
— |
|
— |
|
(10 |
) |
Three Months Ended September 30, 2019 Compared to Three Months Ended June 30, 2019 |
|||||||||||||
|
Volume |
|
Price |
|
Currency |
|
Other |
|
Total |
||||
|
(In percentages) |
||||||||||||
Engineered Materials |
2 |
|
|
(2 |
) |
|
(1 |
) |
|
— |
|
(1 |
) |
Acetate Tow |
(2 |
) |
|
(1 |
) |
|
— |
|
|
— |
|
(3 |
) |
Acetyl Chain |
1 |
|
|
— |
|
|
(1 |
) |
|
— |
|
— |
|
|
|
|
|
|
|
|
|
|
|
||||
Total Company |
2 |
|
|
(1 |
) |
|
(1 |
) |
|
— |
|
— |
|
Three Months Ended June 30, 2019 Compared to Three Months Ended March 31, 2019 |
|||||||||||||
|
Volume |
|
Price |
|
Currency |
|
Other |
|
Total |
||||
|
(In percentages) |
||||||||||||
Engineered Materials |
(7 |
) |
|
(3 |
) |
|
(1 |
) |
|
— |
|
(11 |
) |
Acetate Tow |
(1 |
) |
|
— |
|
|
— |
|
|
— |
|
(1 |
) |
Acetyl Chain |
2 |
|
|
(4 |
) |
|
(1 |
) |
|
— |
|
(3 |
) |
|
|
|
|
|
|
|
|
|
|
||||
Total Company |
(2 |
) |
|
(3 |
) |
|
(1 |
) |
|
— |
|
(6 |
) |
Three Months Ended March 31, 2019 Compared to Three Months Ended December 31, 2018 |
|||||||||||
|
Volume |
|
Price |
|
Currency |
|
Other |
|
Total |
||
|
(In percentages) |
||||||||||
Engineered Materials |
5 |
|
2 |
|
|
— |
|
— |
|
7 |
(2) |
Acetate Tow |
1 |
|
2 |
|
|
— |
|
— |
|
3 |
|
Acetyl Chain |
5 |
|
(10 |
) |
|
— |
|
— |
|
(5 |
) |
|
|
|
|
|
|
|
|
|
|
||
Total Company |
5 |
|
(5 |
) |
|
— |
|
— |
|
— |
|
____________________ |
|
(1) |
2020 includes the effect of the acquisition of the Elotex® brand. |
(2) |
2019 includes the effect of the acquisition of Next Polymers Ltd. |
Table 4b Factors Affecting Segment Net Sales Year Over Year - Unaudited
Three Months Ended September 30, 2020 Compared to Three Months Ended September 30, 2019 |
||||||||||||
|
Volume |
|
Price |
|
Currency |
|
Other |
|
Total |
|||
|
(In percentages) |
|||||||||||
Engineered Materials |
(10 |
) |
|
(3 |
) |
|
2 |
|
— |
|
(11 |
) |
Acetate Tow |
(15 |
) |
|
(3 |
) |
|
— |
|
— |
|
(18 |
) |
Acetyl Chain |
(1 |
) |
|
(11 |
) |
|
1 |
|
— |
|
(11 |
) |
|
|
|
|
|
|
|
|
|
|
|||
Total Company |
(6 |
) |
|
(7 |
) |
|
1 |
|
1 |
|
(11 |
) |
Three Months Ended June 30, 2020 Compared to Three Months Ended June 30, 2019 |
|||||||||||||
|
Volume |
|
Price |
|
Currency |
|
Other |
|
Total |
||||
|
(In percentages) |
||||||||||||
Engineered Materials |
(27 |
) |
|
(1 |
) |
|
(1 |
) |
|
— |
|
(29 |
) |
Acetate Tow |
(18 |
) |
|
(5 |
) |
|
— |
|
|
— |
|
(23 |
) |
Acetyl Chain |
(14 |
) |
|
(8 |
) |
|
(1 |
) |
|
— |
|
(23 |
) |
|
|
|
|
|
|
|
|
|
|
||||
Total Company |
(20 |
) |
|
(5 |
) |
|
(1 |
) |
|
1 |
|
(25 |
) |
Three Months Ended March 31, 2020 Compared to Three Months Ended March 31, 2019 |
|||||||||||||
|
Volume |
|
Price |
|
Currency |
|
Other |
|
Total |
||||
|
(In percentages) |
||||||||||||
Engineered Materials |
(9 |
) |
|
(5 |
) |
|
(1 |
) |
|
— |
|
(15 |
) |
Acetate Tow |
(17 |
) |
|
(5 |
) |
|
— |
|
|
— |
|
(22 |
) |
Acetyl Chain |
(3 |
) |
|
(7 |
) |
|
(1 |
) |
|
1 |
|
(10 |
) |
|
|
|
|
|
|
|
|
|
|
||||
Total Company |
(7 |
) |
|
(6 |
) |
|
(1 |
) |
|
1 |
|
(13 |
) |
Three Months Ended December 31, 2019 Compared to Three Months Ended December 31, 2018 |
|||||||||||||
|
Volume |
|
Price |
|
Currency |
|
Other |
|
Total |
||||
|
(In percentages) |
||||||||||||
Engineered Materials |
(9 |
) |
|
(3 |
) |
|
(1 |
) |
|
— |
|
(13 |
) |
Acetate Tow |
(8 |
) |
|
— |
|
|
— |
|
|
— |
|
(8 |
) |
Acetyl Chain |
(4 |
) |
|
(13 |
) |
|
(1 |
) |
|
— |
|
(18 |
) |
|
|
|
|
|
|
|
|
|
|
||||
Total Company |
(6 |
) |
|
(8 |
) |
|
(1 |
) |
|
— |
|
(15 |
) |
Three Months Ended September 30, 2019 Compared to Three Months Ended September 30, 2018 |
|||||||||||||
|
Volume |
|
Price |
|
Currency |
|
Other |
|
Total |
||||
|
(In percentages) |
||||||||||||
Engineered Materials |
(4 |
) |
|
(2 |
) |
|
(2 |
) |
|
— |
|
(8 |
) |
Acetate Tow |
— |
|
|
— |
|
|
— |
|
|
— |
|
— |
|
Acetyl Chain |
6 |
|
|
(18 |
) |
|
(2 |
) |
|
— |
|
(14 |
) |
|
|
|
|
|
|
|
|
|
|
||||
Total Company |
2 |
|
|
(11 |
) |
|
(2 |
) |
|
1 |
|
(10 |
) |
Three Months Ended June 30, 2019 Compared to Three Months Ended June 30, 2018 |
|||||||||||||
|
Volume |
|
Price |
|
Currency |
|
Other |
|
Total |
||||
|
(In percentages) |
||||||||||||
Engineered Materials |
(8 |
) |
|
— |
|
|
(3 |
) |
|
— |
|
(11 |
) |
Acetate Tow |
1 |
|
|
1 |
|
|
(1 |
) |
|
— |
|
1 |
|
Acetyl Chain |
(1 |
) |
|
(14 |
) |
|
(3 |
) |
|
— |
|
(18 |
) |
|
|
|
|
|
|
|
|
|
|
||||
Total Company |
(3 |
) |
|
(8 |
) |
|
(3 |
) |
|
— |
|
(14 |
) |
Three Months Ended March 31, 2019 Compared to Three Months Ended March 31, 2018 |
|||||||||||||
|
Volume |
|
Price |
|
Currency |
|
Other |
|
Total |
||||
|
(In percentages) |
||||||||||||
Engineered Materials |
(3 |
) |
|
7 |
|
|
(4 |
) |
|
— |
|
— |
|
Acetate Tow |
(1 |
) |
|
— |
|
|
— |
|
|
— |
|
(1 |
) |
Acetyl Chain |
(4 |
) |
|
(8 |
) |
|
(3 |
) |
|
— |
|
(15 |
) |
|
|
|
|
|
|
|
|
|
|||||
Total Company |
(3 |
) |
|
(2 |
) |
|
(4 |
) |
|
— |
|
(9 |
) |
Table 4c Factors Affecting Segment Net Sales Year Over Year - Unaudited
Year Ended December 31, 2019 Compared to Year Ended December 31, 2018 |
|||||||||||||
|
Volume |
|
Price |
|
Currency |
|
Other |
|
Total |
||||
|
(In percentages) |
||||||||||||
Engineered Materials |
(5 |
) |
|
— |
|
|
(3 |
) |
|
— |
|
(8 |
) |
Acetate Tow |
(2 |
) |
|
— |
|
|
— |
|
|
— |
|
(2 |
) |
Acetyl Chain |
(1 |
) |
|
(13 |
) |
|
(2 |
) |
|
— |
|
(16 |
) |
|
|
|
|
|
|
|
|
|
|
||||
Total Company |
(3 |
) |
|
(7 |
) |
|
(2 |
) |
|
— |
|
(12 |
) |
Table 5 Free Cash Flow - Reconciliation of a Non-GAAP Measure - Unaudited |
|||||||||||||||||||||||
|
Q3 '20 |
|
Q2 '20 |
|
Q1 '20 |
|
2019 |
|
Q4 '19 |
|
Q3 '19 |
|
Q2 '19 |
|
Q1 '19 |
||||||||
|
(In $ millions, except percentages) |
||||||||||||||||||||||
Net cash provided by (used in) investing activities |
(78 |
) |
|
(181 |
) |
|
(128 |
) |
|
(493 |
) |
|
(168 |
) |
|
(82 |
) |
|
(66 |
) |
|
(177 |
) |
Net cash provided by (used in) financing activities |
(290 |
) |
|
(232 |
) |
|
(16 |
) |
|
(935 |
) |
|
(199 |
) |
|
(299 |
) |
|
(307 |
) |
|
(130 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Net cash provided by (used in) operating activities |
431 |
|
|
379 |
|
|
259 |
|
|
1,454 |
|
|
326 |
|
|
397 |
|
|
424 |
|
|
307 |
|
Capital expenditures on property, plant and equipment |
(72 |
) |
|
(88 |
) |
|
(119 |
) |
|
(370 |
) |
|
(144 |
) |
|
(82 |
) |
|
(65 |
) |
|
(79 |
) |
Distributions to NCI |
(8 |
) |
|
(8 |
) |
|
(5 |
) |
|
(10 |
) |
|
(3 |
) |
|
— |
|
|
(3 |
) |
|
(4 |
) |
Free cash flow(1)(2) |
351 |
|
|
283 |
|
|
135 |
|
|
1,074 |
|
|
179 |
|
|
315 |
|
|
356 |
|
|
224 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Net sales |
1,411 |
|
|
1,193 |
|
|
1,460 |
|
|
6,297 |
|
|
1,432 |
|
|
1,586 |
|
|
1,592 |
|
|
1,687 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Free cash flow as % of Net sales |
24.9 |
% |
|
23.7 |
% |
|
9.2 |
% |
|
17.1 |
% |
|
12.5 |
% |
|
19.9 |
% |
|
22.4 |
% |
|
13.3 |
% |
______________________________ |
|
(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 capital contributions or distributions to Mitsui related to our joint venture, Fairway. |
(2) |
Excludes required debt service and finance lease payments of |
Table 6 Cash Dividends Received - Unaudited |
|||||||||||||||||||||||
|
Q3 '20 |
|
Q2 '20 |
|
Q1 '20 |
|
2019 |
|
Q4 '19 |
|
Q3 '19 |
|
Q2 '19 |
|
Q1 '19 |
||||||||
|
(In $ millions) |
||||||||||||||||||||||
Dividends from equity method investments |
6 |
|
|
59 |
|
|
46 |
|
|
168 |
|
|
42 |
|
|
15 |
|
|
41 |
|
|
70 |
|
Dividends from equity investments without readily determinable fair values |
29 |
|
|
32 |
|
|
37 |
|
|
113 |
|
|
24 |
|
|
27 |
|
|
30 |
|
|
32 |
|
Total |
35 |
|
|
91 |
|
|
83 |
|
|
281 |
|
|
66 |
|
|
42 |
|
|
71 |
|
|
102 |
|
Table 7 Net Debt - Reconciliation of a Non-GAAP Measure - Unaudited |
|||||||||||||||||||||||
|
Q3 '20 |
|
Q2 '20 |
|
Q1 '20 |
|
2019 |
|
Q4 '19 |
|
Q3 '19 |
|
Q2 '19 |
|
Q1 '19 |
||||||||
|
(In $ millions) |
||||||||||||||||||||||
Short-term borrowings and current installments of long-term debt - third party and affiliates |
958 |
|
|
1,045 |
|
|
749 |
|
|
496 |
|
|
496 |
|
|
368 |
|
|
319 |
|
|
743 |
|
Long-term debt, net of unamortized deferred financing costs |
3,140 |
|
|
2,989 |
|
|
3,356 |
|
|
3,409 |
|
|
3,409 |
|
|
3,359 |
|
|
3,444 |
|
|
2,933 |
|
Total debt |
4,098 |
|
|
4,034 |
|
|
4,105 |
|
|
3,905 |
|
|
3,905 |
|
|
3,727 |
|
|
3,763 |
|
|
3,676 |
|
Cash and cash equivalents |
(615 |
) |
|
(539 |
) |
|
(570 |
) |
|
(463 |
) |
|
(463 |
) |
|
(497 |
) |
|
(491 |
) |
|
(441 |
) |
Net debt |
3,483 |
|
|
3,495 |
|
|
3,535 |
|
|
3,442 |
|
|
3,442 |
|
|
3,230 |
|
|
3,272 |
|
|
3,235 |
|
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 '20 |
|
Q2 '20 |
|
Q1 '20 |
|
2019 |
Q4 '19 |
|
Q3 '19 |
|
Q2 '19 |
|
Q1 '19 |
|
Income Statement Classification |
||||||
|
(In $ millions) |
|
|
|||||||||||||||||||
Plant/office closures |
4 |
|
|
(4 |
) |
|
3 |
|
26 |
|
12 |
|
9 |
|
2 |
|
|
3 |
|
|
Cost of sales / SG&A / Other (charges) gains, net / Gain (loss) on disposition of businesses and assets, net |
|
Asset impairments |
2 |
|
|
25 |
|
|
4 |
|
94 |
(1) |
2 |
|
9 |
|
83 |
|
|
— |
|
|
Cost of sales / Other (charges) gains, net |
|
Clear Lake incident |
— |
|
|
— |
|
|
4 |
|
34 |
|
32 |
|
2 |
|
— |
|
|
— |
|
|
Cost of sales |
|
COVID-19 |
1 |
|
|
1 |
|
|
1 |
|
— |
|
— |
|
— |
|
— |
|
|
— |
|
|
Cost of sales / SG&A |
|
Mergers, acquisitions and dispositions |
7 |
|
|
3 |
|
|
7 |
|
12 |
|
3 |
|
2 |
|
4 |
|
|
3 |
|
|
Cost of sales / SG&A |
|
Actuarial (gain) loss on pension and postretirement plans |
— |
|
|
— |
|
|
— |
|
88 |
|
88 |
|
— |
|
— |
|
|
— |
|
|
Cost of sales / SG&A / Non-operating pension and other postretirement employee benefit (expense) income |
|
Restructuring |
11 |
|
|
2 |
|
|
7 |
|
27 |
|
6 |
|
7 |
|
15 |
|
|
(1 |
) |
|
SG&A / Other (charges) gains, net / Non-operating pension and other postretirement employee benefit (expense) income |
|
European Commission investigation |
— |
|
|
2 |
|
|
— |
|
89 |
|
89 |
|
— |
|
— |
|
|
— |
|
|
Other (charges) gains, net |
|
Commercial disputes |
— |
|
|
(1 |
) |
|
— |
|
10 |
|
6 |
|
— |
|
2 |
|
|
2 |
|
|
Cost of sales / SG&A / Other (charges) gains, net |
|
Other |
(1 |
) |
|
— |
|
|
— |
|
1 |
|
— |
|
— |
|
1 |
|
|
— |
|
|
SG&A / Gain (loss) on disposition of businesses and assets, net |
|
Certain Items attributable to Celanese Corporation |
24 |
|
|
28 |
|
|
26 |
|
381 |
|
238 |
|
29 |
|
107 |
|
|
7 |
|
|
|
|
| ____________________ | |
(1) |
Includes |
Table 9 Return on Invested Capital (Adjusted) - Presentation of a Non-GAAP Measure - Unaudited |
||||||
|
|
|
|
|
2019 |
|
|
|
|
|
|
(In $ millions, except percentages) |
|
Net earnings (loss) attributable to Celanese Corporation |
|
|
|
|
852 |
|
|
|
|
|
|
|
|
Adjusted EBIT (Table 1) |
|
|
|
|
1,476 |
|
Adjusted effective tax rate (Table 3a) |
|
|
|
|
13 |
% |
Adjusted EBIT tax effected |
|
|
|
|
1,284 |
|
|
|
|
|
|
|
|
|
2019 |
|
2018 |
|
Average |
|
|
(In $ millions, except percentages) |
|||||
Short-term borrowings and current installments of long-term debt - third parties and affiliates |
496 |
|
561 |
|
529 |
|
Long-term debt, net of unamortized deferred financing costs |
3,409 |
|
2,970 |
|
3,190 |
|
Celanese Corporation stockholders' equity |
2,507 |
|
2,984 |
|
2,746 |
|
Invested capital |
|
|
|
|
6,465 |
|
|
|
|
|
|
|
|
Return on invested capital (adjusted) |
|
|
|
|
19.9 |
% |
|
|
|
|
|
|
|
Net earnings (loss) attributable to Celanese Corporation as a percentage of invested capital |
|
|
|
|
13.2 |
% |
