Celanese Corporation Reports Full Year 2021 and Fourth Quarter Earnings; Reaffirms Full Year 2022 Outlook

Thu, January 27 2022

DALLAS--(BUSINESS WIRE)-- Celanese Corporation (NYSE: CE), a global chemical and specialty materials company, today reported record GAAP diluted earnings per share of $17.06 and record adjusted earnings per share of $18.12 for full year 2021. The Company reported 2021 net sales of $8.5 billion, 51 percent higher than the previous year. Higher net sales were driven by pricing and volume increases over the prior year of 39 percent and 10 percent, respectively. Celanese successfully offset $1.1 billion in raw material, energy, and logistics cost inflation over 2020 to deliver consolidated operating profit of $1.9 billion and adjusted EBIT of $2.5 billion for the year, both records. The Company generated record operating cash flow of $1.8 billion and record free cash flow of $1.3 billion. As part of its strategic plan to drive earnings per share growth, the Company deployed $2.6 billion to organic investments, M&A, and share repurchases in 2021. In addition, during 2021 the Company returned $304 million in cash to shareholders via dividends.

Celanese also reported fourth quarter GAAP diluted earnings per share of $4.83 and adjusted earnings per share of $4.91. The Company generated operating cash flow of $584 million and free cash flow of $415 million in the quarter.

"I thank our teams for the commitment and agility they demonstrated in what was an exceptionally volatile year. They successfully navigated a series of external challenges including Winter Storm Uri, supply chain and logistics disruptions, China production curtailments, and the resurgence of multiple COVID-19 variants to deliver record 2021 adjusted earnings per share that exceeded our prior record performance by a remarkable 65 percent," said Lori Ryerkerk, chairman and chief executive officer.

Fourth Quarter 2021 Financial Highlights:

 

Three Months Ended

 

December 31,
2021

 

September 30,
2021

 

December 31,
2020

 

(unaudited)

 

(In $ millions, except per share data)

Net Sales

 

 

 

 

 

Engineered Materials

 

707

 

 

 

684

 

 

 

572

 

Acetate Tow

 

129

 

 

 

128

 

 

 

134

 

Acetyl Chain

 

1,476

 

 

 

1,489

 

 

 

910

 

Intersegment Eliminations

 

(37

)

 

 

(35

)

 

 

(25

)

Total

 

2,275

 

 

 

2,266

 

 

 

1,591

 

 

 

 

 

 

 

Operating Profit (Loss)

 

 

 

 

 

Engineered Materials

 

67

 

 

 

91

 

 

 

62

 

Acetate Tow

 

4

 

 

 

12

 

 

 

30

 

Acetyl Chain

 

535

 

 

 

517

 

 

 

186

 

Other Activities

 

(89

)

 

 

(84

)

 

 

(75

)

Total

 

517

 

 

 

536

 

 

 

203

 

 

 

 

 

 

 

Net Earnings (Loss)

 

526

 

 

 

507

 

 

 

1,454

 

 

 

 

 

 

 

Adjusted EBIT(1)

 

 

 

 

 

Engineered Materials

 

113

 

 

 

137

 

 

 

82

 

Acetate Tow

 

38

 

 

 

46

 

 

 

59

 

Acetyl Chain

 

536

 

 

 

517

 

 

 

187

 

Other Activities

 

(35

)

 

 

(52

)

 

 

(28

)

Total

 

652

 

 

 

648

 

 

 

300

 

 

 

 

 

 

 

Equity Earnings and Dividend Income, Other Income (Expense)

 

 

 

 

 

Engineered Materials

 

30

 

 

 

40

 

 

 

15

 

Acetate Tow

 

34

 

 

 

34

 

 

 

29

 

 

 

 

 

 

 

Operating EBITDA(1)

 

745

 

 

 

739

 

 

 

387

 

Diluted EPS - continuing operations

$

4.83

 

 

$

4.67

 

 

$

12.50

 

Diluted EPS - total

$

4.79

 

 

$

4.56

 

 

$

12.50

 

Adjusted EPS(1)

$

4.91

 

 

$

4.82

 

 

$

2.09

 

 

 

 

 

 

 

Net cash provided by (used in) investing activities

 

(1,286

)

 

 

(108

)

 

 

979

 

Net cash provided by (used in) financing activities

 

(99

)

 

 

(228

)

 

 

(933

)

Net cash provided by (used in) operating activities

 

584

 

 

 

630

 

 

 

274

 

Free cash flow(1)

 

415

 

 

 

520

 

 

 

181

 

 

Year Ended December 31,

 

2021

 

2020

 

(unaudited)

 

(In $ millions, except per share data)

Net Sales

 

 

 

Engineered Materials

 

2,718

 

 

 

2,081

 

Acetate Tow

 

514

 

 

 

519

 

Acetyl Chain

 

5,430

 

 

 

3,147

 

Intersegment Eliminations

 

(125

)

 

 

(92

)

Total

 

8,537

 

 

 

5,655

 

 

 

 

 

Operating Profit (Loss)

 

 

 

Engineered Materials

 

411

 

 

 

235

 

Acetate Tow

 

56

 

 

 

118

 

Acetyl Chain

 

1,819

 

 

 

563

 

Other Activities

 

(340

)

 

 

(252

)

Total

 

1,946

 

 

 

664

 

 

 

 

 

Net Earnings (Loss)

 

1,896

 

 

 

1,992

 

 

 

 

 

Adjusted EBIT(1)

 

 

 

Engineered Materials

 

571

 

 

 

403

 

Acetate Tow

 

207

 

 

 

249

 

Acetyl Chain

 

1,849

 

 

 

568

 

Other Activities

 

(154

)

 

 

(89

)

Total

 

2,473

 

 

 

1,131

 

 

 

 

 

Equity Earnings and Dividend Income, Other Income (Expense)

 

 

 

Engineered Materials

 

127

 

 

 

115

 

Acetate Tow

 

146

 

 

 

126

 

 

 

 

 

Operating EBITDA(1)

 

2,835

 

 

 

1,475

 

Diluted EPS - continuing operations

$

17.06

 

 

$

16.85

 

Diluted EPS - total

$

16.86

 

 

$

16.75

 

Adjusted EPS(1)

$

18.12

 

 

$

7.64

 

 

 

 

 

Net cash provided by (used in) investing activities

 

(1,119

)

 

 

592

 

Net cash provided by (used in) financing activities

 

(1,042

)

 

 

(1,471

)

Net cash provided by (used in) operating activities

 

1,757

 

 

 

1,343

 

Free cash flow(1)

 

1,263

 

 

 

950

 

______________________________

(1)

See "Non-US GAAP Financial Measures" below.

Full Year Business Segment Overview

Engineered Materials

Engineered Materials reported record net sales of $2.7 billion in 2021, an increase of 31 percent over the prior year. Net sales growth was driven by volume and price which increased from 2020 by 15 percent and 12 percent, respectively. The business delivered volume growth to meet elevated 2021 demand despite significant sourcing and supply chain constraints that resulted in 18 kt of lost production across the year. Full year GAAP operating profit of $411 million and adjusted EBIT of $571 million, increased from the prior year by $176 million and $168 million, respectively. As a result of commercial initiatives across the year, the business nearly offset approximately $300 million in year over year raw material, energy, and logistics cost inflation. Affiliate earnings of $126 million increased $11 million over the prior year driven by improved performance across all affiliates.

Acetyl Chain

In 2021, the Acetyl Chain generated record net sales of $5.4 billion, an increase of 14 percent over the previous annual record. Pricing increased over the prior year by 62 percent due to strong demand, tightened industry conditions, and Acetyl Chain commercial actions. Pricing expansion more than offset over $700 million in raw material, energy, and logistics cost inflation in 2021 from the prior year. Despite challenges to production including Winter Storm Uri, China energy curtailments, and supply chain disruptions, the Acetyl Chain delivered 9 percent higher volume over the prior year by utilizing its global production network and industry sourcing. The Acetyl Chain generated record GAAP operating profit of $1.8 billion and record adjusted EBIT of $1.8 billion at margins of 33 percent and 34 percent, respectively.

Acetate Tow

Acetate Tow reported net sales of $514 million, a 1 percent decline from 2020 due to a 1 percent pricing decline. GAAP operating profit was $56 million and adjusted EBIT was $207 million for the year and reflected the impact of significantly elevated acetyls and natural gas costs. Dividends from affiliates in 2021 were $146 million, an increase of $20 million over the prior year due to strong affiliate performance.

Recent Highlights:

  • Completed the acquisition of the Santoprene™ TPV elastomers business of Exxon Mobil Corporation for $1.15 billion, strengthening the existing elastomers portfolio and bringing a wider range of functionalized solutions into targeted growth areas.
  • Completed a new GUR® ultra-high molecular weight polyethylene (UHMW-PE) production line at Bishop, Texas, adding 15 kt of manufacturing capacity.
  • Honored by The Women's Forum of New York for female representation on the Celanese Board of Directors.
  • Announced a joint collaboration with Mitsubishi Chemical Advanced Materials to further develop mechanical recycling solutions for both post-industrial and post-consumer sources of polyoxymethylene (POM).

Fourth Quarter 2021 Business Segment Overview

Engineered Materials

Engineered Materials generated record net sales of $707 million in the fourth quarter due to a sequential price increase of 5 percent that offset a volume decrease of 1 percent. As a result of four consecutive quarters of pricing expansion, fourth quarter 2021 pricing reflected a 20 percent increase over the same quarter last year. The business continued to offset the majority of raw material, energy, and logistics cost inflation which drove higher costs of approximately $60 million sequentially. Fourth quarter GAAP operating profit of $67 million and adjusted EBIT of $113 million both declined by $24 million from the prior quarter as a result of accelerated inflation in European natural gas prices and persistent supply chain disruptions which constrained production of the business and its affiliates. Affiliates earnings declined by $9 million sequentially, largely due to supply chain disruptions.

Acetyl Chain

The Acetyl Chain generated net sales of $1.5 billion in the fourth quarter due to a 10 percent sequential expansion in pricing that offset a 10 percent reduction in volume. Amid ongoing moderation in acetic acid and VAM industry pricing in China, the business shifted more volume to the Western Hemisphere. Higher pricing in the fourth quarter more than offset approximately $60 million in raw material, energy, and logistics cost inflation from the prior quarter. Fourth quarter GAAP operating profit was $535 million and adjusted EBIT was $536 million at margins of 36 percent. The Acetyl Chain limited the fourth quarter volume impact of significant external production disruptions, including approximately 80 kt of lost production due to supplier constraints, by flexing its global production network and sourcing from the industry.

Acetate Tow

Acetate Tow generated net sales of $129 million during the fourth quarter, which reflected a sequential price increase of 1 percent and stable volume. Fourth quarter GAAP operating profit of $4 million and adjusted EBIT of $38 million both declined by $8 million sequentially due to higher energy, acetyls, and logistics costs. Dividends from affiliates in the quarter were $34 million, consistent with the prior quarter.

Cash Flow and Tax

The Company generated record operating cash flow of $1.8 billion and record free cash flow of $1.3 billion in 2021. Capital expenditures in the year were $467 million as the Company progressed on several key projects including the 1.3 million ton acetic acid expansion in Clear Lake, Texas. The Company returned $1.3 billion in cash to shareholders during 2021, including $1.0 billion of share repurchases and $304 million of dividends.

The effective U.S. GAAP tax rate was 15 percent for 2021 compared to 11 percent for 2020. The lower effective tax rate for 2020 was due to non-recurring tax benefits related to certain divestiture and reorganization transactions. The full year adjusted tax rate was 15 percent for 2021 versus 12 percent in the prior year due to increased earnings in high tax jurisdictions.

Outlook

"The early 2022 order book reflects continued strong demand for our products across most end markets," said Lori Ryerkerk. "While we continue to closely monitor the impact of COVID-19 variants on demand conditions, the persistent inflationary and volatile supply chain backdrop remains our greatest challenge. Our record 2021 performance demonstrates the ability of our employees and business models to preserve our profitability amid inflation. We anticipate that sequential margin expansion in the first quarter in our downstream businesses, led by Engineered Materials, will help to offset anticipated moderation in Acetyl Chain pricing conditions and drive expected first quarter adjusted earnings of $4.30 to $4.60 per share. With a strong start to the year, we remain confident in our ability to achieve adjusted earnings of at least $15.00 per share in 2022."

A reconciliation of forecasted adjusted earnings per share to U.S. GAAP diluted earnings per share is not available 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 fourth quarter will be posted on its website at investors.celanese.com under Financial Information/Financial Document Library on January 27, 2022. 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 8,500 employees worldwide and had 2021 net sales of $8.5 billion. For more information about Celanese Corporation and its product offerings, visit www.celanese.com.

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; volatility or 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 length and depth of product and industry business cycles, particularly in the automotive, electrical, mobility, textiles, medical, electronics and construction industries; the extent to which the COVID-19 pandemic continues to adversely impact the economic environment, market demand and our operations, as well as the pace of any economic recovery; 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 complete acquisition or investment transactions consistent with the Company's strategy; the ability to identify and execute on other attractive investment opportunities towards which to deploy capital; increased price competition and the introduction of competing products by other companies; 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 or logistics disruptions, cyber security incidents, terrorism or political unrest, public health crises (including, but not limited to, the COVID-19 pandemic); 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; the ability to obtain governmental approvals and to construct facilities on terms and schedules acceptable to the Company; 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; 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; tax rates and changes thereto; our ability to obtain regulatory approval for, and satisfy closing conditions to, any transactions described herein; 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 extent of any resurgence in infections and the spread of the disease or variants thereof, and the effectiveness of vaccines or other medical treatments; additional governmental, business and individual actions to contain the spread of COVID-19, including social distancing, work-at-home, stay-at-home and shelter-in-place orders and shutdowns, travel restrictions and quarantines; the extent to which these conditions depress economic activity generally and demand for our products specifically and affect the financial markets; 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 or transportation and shipping disruptions; the risk that we could be exposed to liability, negative publicity or reputational harm related to any incidents of actual or perceived transmission of COVID-19 among employees at our facilities; 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 January 27, 2022 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

 

December 31,
2021

 

September 30,
2021

 

December 31,
2020

 

(In $ millions, except share and per share data)

Net sales

2,275

 

 

2,266

 

 

1,591

 

Cost of sales

(1,554

)

 

(1,551

)

 

(1,215

)

Gross profit

721

 

 

715

 

 

376

 

Selling, general and administrative expenses

(170

)

 

(165

)

 

(137

)

Amortization of intangible assets

(8

)

 

(6

)

 

(5

)

Research and development expenses

(23

)

 

(21

)

 

(20

)

Other (charges) gains, net

 

 

 

 

(2

)

Foreign exchange gain (loss), net

 

 

2

 

 

(3

)

Gain (loss) on disposition of businesses and assets, net

(3

)

 

11

 

 

(6

)

Operating profit (loss)

517

 

 

536

 

 

203

 

Equity in net earnings (loss) of affiliates

36

 

 

44

 

 

21

 

Non-operating pension and other postretirement employee benefit (expense) income

(7

)

 

37

 

 

(66

)

Interest expense

(21

)

 

(21

)

 

(26

)

Refinancing expense

 

 

(9

)

 

 

Interest income

1

 

 

2

 

 

2

 

Dividend income - equity investments

33

 

 

35

 

 

28

 

Gain (loss) on sale of investments in affiliates

 

 

 

 

1,408

 

Other income (expense), net

(2

)

 

(2

)

 

1

 

Earnings (loss) from continuing operations before tax

557

 

 

622

 

 

1,571

 

Income tax (provision) benefit

(27

)

 

(102

)

 

(117

)

Earnings (loss) from continuing operations

530

 

 

520

 

 

1,454

 

Earnings (loss) from operation of discontinued operations

(3

)

 

(17

)

 

(1

)

Income tax (provision) benefit from discontinued operations

(1

)

 

4

 

 

1

 

Earnings (loss) from discontinued operations

(4

)

 

(13

)

 

 

Net earnings (loss)

526

 

 

507

 

 

1,454

 

Net (earnings) loss attributable to noncontrolling interests

(2

)

 

(1

)

 

(1

)

Net earnings (loss) attributable to Celanese Corporation

524

 

 

506

 

 

1,453

 

Amounts attributable to Celanese Corporation

 

 

 

 

 

Earnings (loss) from continuing operations

528

 

 

519

 

 

1,453

 

Earnings (loss) from discontinued operations

(4

)

 

(13

)

 

 

Net earnings (loss)

524

 

 

506

 

 

1,453

 

Earnings (loss) per common share - basic

 

 

 

 

 

Continuing operations

4.86

 

 

4.70

 

 

12.56

 

Discontinued operations

(0.04

)

 

(0.12

)

 

 

Net earnings (loss) - basic

4.82

 

 

4.58

 

 

12.56

 

Earnings (loss) per common share - diluted

 

 

 

 

 

Continuing operations

4.83

 

 

4.67

 

 

12.50

 

Discontinued operations

(0.04

)

 

(0.11

)

 

 

Net earnings (loss) - diluted

4.79

 

 

4.56

 

 

12.50

 

Weighted average shares (in millions)

 

 

 

 

 

Basic

108.6

 

 

110.5

 

 

115.7

 

Diluted

109.4

 

 

111.0

 

 

116.3

 

Consolidated Statements of Operations - Unaudited

 

 

Year Ended December 31,

 

2021

 

2020

 

(In $ millions, except share and per share data)

Net sales

8,537

 

 

5,655

 

Cost of sales

(5,855

)

 

(4,362

)

Gross profit

2,682

 

 

1,293

 

Selling, general and administrative expenses

(633

)

 

(482

)

Amortization of intangible assets

(25

)

 

(22

)

Research and development expenses

(86

)

 

(74

)

Other (charges) gains, net

3

 

 

(39

)

Foreign exchange gain (loss), net

2

 

 

(5

)

Gain (loss) on disposition of businesses and assets, net

3

 

 

(7

)

Operating profit (loss)

1,946

 

 

664

 

Equity in net earnings (loss) of affiliates

146

 

 

134

 

Non-operating pension and other postretirement employee benefit (expense) income

106

 

 

17

 

Interest expense

(91

)

 

(109

)

Refinancing expense

(9

)

 

 

Interest income

8

 

 

6

 

Dividend income - equity investments

147

 

 

126

 

Gain (loss) on sale of investments in affiliates

 

 

1,408

 

Other income (expense), net

(5

)

 

5

 

Earnings (loss) from continuing operations before tax

2,248

 

 

2,251

 

Income tax (provision) benefit

(330

)

 

(247

)

Earnings (loss) from continuing operations

1,918

 

 

2,004

 

Earnings (loss) from operation of discontinued operations

(27

)

 

(14

)

Income tax (provision) benefit from discontinued operations

5

 

 

2

 

Earnings (loss) from discontinued operations

(22

)

 

(12

)

Net earnings (loss)

1,896

 

 

1,992

 

Net (earnings) loss attributable to noncontrolling interests

(6

)

 

(7

)

Net earnings (loss) attributable to Celanese Corporation

1,890

 

 

1,985

 

Amounts attributable to Celanese Corporation

 

 

 

Earnings (loss) from continuing operations

1,912

 

 

1,997

 

Earnings (loss) from discontinued operations

(22

)

 

(12

)

Net earnings (loss)

1,890

 

 

1,985

 

Earnings (loss) per common share - basic

 

 

 

Continuing operations

17.19

 

 

16.95

 

Discontinued operations

(0.20

)

 

(0.10

)

Net earnings (loss) - basic

16.99

 

 

16.85

 

Earnings (loss) per common share - diluted

 

 

 

Continuing operations

17.06

 

 

16.85

 

Discontinued operations

(0.20

)

 

(0.10

)

Net earnings (loss) - diluted

16.86

 

 

16.75

 

Weighted average shares (in millions)

 

 

 

Basic

111.2

 

 

117.8

 

Diluted

112.1

 

 

118.5

 

Consolidated Balance Sheets - Unaudited

 

 

As of

December 31,

2021

 

As of

December 31,

2020

 

 

(In $ millions)

ASSETS

 

 

 

Current Assets

 

 

 

Cash and cash equivalents

536

 

 

955

 

Trade receivables - third party and affiliates, net

1,161

 

 

792

 

Non-trade receivables, net

506

 

 

450

 

Inventories

1,524

 

 

978

 

Marketable securities

10

 

 

533

 

Other assets

70

 

 

55

 

Total current assets

3,807

 

 

3,763

 

Investments in affiliates

823

 

 

820

 

Property, plant and equipment, net

4,193

 

 

3,939

 

Operating lease right-of-use assets

236

 

 

232

 

Deferred income taxes

248

 

 

259

 

Other assets

521

 

 

411

 

Goodwill

1,412

 

 

1,166

 

Intangible assets, net

735

 

 

319

 

Total assets

11,975

 

 

10,909

 

LIABILITIES AND EQUITY

 

 

 

Current Liabilities

 

 

 

Short-term borrowings and current installments of long-term debt - third party and affiliates

791

 

 

496

 

Trade payables - third party and affiliates

1,160

 

 

797

 

Other liabilities

473

 

 

680

 

Income taxes payable

81

 

 

 

Total current liabilities

2,505

 

 

1,973

 

Long-term debt, net of unamortized deferred financing costs

3,176

 

 

3,227

 

Deferred income taxes

555

 

 

509

 

Uncertain tax positions

280

 

 

240

 

Benefit obligations

558

 

 

643

 

Operating lease liabilities

200

 

 

208

 

Other liabilities

164

 

 

214

 

Commitments and Contingencies

 

 

 

Stockholders' Equity

 

 

 

Treasury stock, at cost

(5,492

)

 

(4,494

)

Additional paid-in capital

333

 

 

257

 

Retained earnings

9,677

 

 

8,091

 

Accumulated other comprehensive income (loss), net

(329

)

 

(328

)

Total Celanese Corporation stockholders' equity

4,189

 

 

3,526

 

Noncontrolling interests

348

 

 

369

 

Total equity

4,537

 

 

3,895

 

Total liabilities and equity

11,975

 

 

10,909

 

Non-US GAAP Financial Measures and Supplemental Information

January 27, 2022

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 is 50%. 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

 

 

2021

 

Q4 '21

 

Q3 '21

 

Q2 '21

 

Q1 '21

 

2020

 

Q4 '20

 

Q3 '20

 

Q2 '20

 

Q1 '20

 

(In $ millions)

Net earnings (loss) attributable to Celanese Corporation

1,890

 

 

524

 

 

506

 

 

538

 

 

322

 

 

1,985

 

 

1,453

 

 

207

 

 

107

 

 

218

 

(Earnings) loss from discontinued operations

22

 

 

4

 

 

13

 

 

4

 

 

1

 

 

12

 

 

 

 

2

 

 

3

 

 

7

 

Interest income

(8

)

 

(1

)

 

(2

)

 

(4

)

 

(1

)

 

(6

)

 

(2

)

 

(1

)

 

(1

)

 

(2

)

Interest expense

91

 

 

21

 

 

21

 

 

24

 

 

25

 

 

109

 

 

26

 

 

28

 

 

27

 

 

28

 

Refinancing expense

9

 

 

 

 

9

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income tax provision (benefit)

330

 

 

27

 

 

102

 

 

116

 

 

85

 

 

247

 

 

117

 

 

30

 

 

35

 

 

65

 

Certain Items attributable to Celanese Corporation (Table 8)

139

 

 

77

 

 

(1

)

 

13

 

 

50

 

 

(1,216

)

 

(1,294

)

 

24

 

 

28

 

 

26

 

Adjusted EBIT

2,473

 

 

652

 

 

648

 

 

691

 

 

482

 

 

1,131

 

 

300

 

 

290

 

 

199

 

 

342

 

Depreciation and amortization expense(1)

362

 

 

93

 

 

91

 

 

90

 

 

88

 

 

344

 

 

87

 

 

88

 

 

86

 

 

83

 

Operating EBITDA

2,835

 

 

745

 

 

739

 

 

781

 

 

570

 

 

1,475

 

 

387

 

 

378

 

 

285

 

 

425

 

 

 

2021

 

Q4 '21

 

Q3 '21

 

Q2 '21

 

Q1 '21

 

2020

 

Q4 '20

 

Q3 '20

 

Q2 '20

 

Q1 '20

 

(In $ millions)

Engineered Materials

9

 

 

4

 

 

2

 

 

1

 

 

2

 

 

5

 

 

2

 

 

1

 

 

 

 

2

 

Acetate Tow

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Acetyl Chain

 

 

 

 

 

 

 

 

 

 

1

 

 

 

 

 

 

1

 

 

 

Other Activities(2)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Accelerated depreciation and amortization expense

9

 

 

4

 

 

2

 

 

1

 

 

2

 

 

6

 

 

2

 

 

1

 

 

1

 

 

2

 

Depreciation and amortization expense(1)

362

 

 

93

 

 

91

 

 

90

 

 

88

 

 

344

 

 

87

 

 

88

 

 

86

 

 

83

 

Total depreciation and amortization expense

371

 

 

97

 

 

93

 

 

91

 

 

90

 

 

350

 

 

89

 

 

89

 

 

87

 

 

85

 

______________________________

(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
 

 

2021

 

Q4 '21

 

Q3 '21

 

Q2 '21

 

Q1 '21

 

2020

 

Q4 '20

 

Q3 '20

 

Q2 '20

 

Q1 '20

 

(In $ millions, except percentages)

Operating Profit (Loss) / Operating Margin

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Engineered Materials

411

 

 

15.1

%

 

67

 

 

9.5

%

 

91

 

 

13.3

%

 

123

 

 

18.0

%

 

130

 

 

20.2

%

 

235

 

 

11.3

%

 

62

 

 

10.8

%

 

84

 

 

16.0

%

 

(13

)

 

(3.1

)%

 

102

 

 

18.1

%

Acetate Tow

56

 

 

10.9

%

 

4

 

 

3.1

%

 

12

 

 

9.4

%

 

24

 

 

17.4

%

 

16

 

 

13.4

%

 

118

 

 

22.7

%

 

30

 

 

22.4

%

 

30

 

 

23.3

%

 

31

 

 

24.4

%

 

27

 

 

20.9

%

Acetyl Chain(1)

1,819

 

 

33.5

%

 

535

 

 

36.2

%

 

517

 

 

34.7

%

 

516

 

 

36.6

%

 

251

 

 

23.8

%

 

563

 

 

17.9

%

 

186

 

 

20.4

%

 

121

 

 

15.6

%

 

121

 

 

18.3

%

 

135

 

 

16.9

%

Other Activities(2)

(340

)

 

 

 

(89

)

 

 

 

(84

)

 

 

 

(96

)

 

 

 

(71

)

 

 

 

(252

)

 

 

 

(75

)

 

 

 

(51

)

 

 

 

(56

)

 

 

 

(70

)

 

 

Total

1,946

 

 

22.8

%

 

517

 

 

22.7

%

 

536

 

 

23.7

%

 

567

 

 

25.8

%

 

326

 

 

18.1

%

 

664

 

 

11.7

%

 

203

 

 

12.8

%

 

184

 

 

13.0

%

 

83

 

 

7.0

%

 

194

 

 

13.3

%

Less: Net Earnings (Loss) Attributable to NCI(1)

6

 

 

 

 

2

 

 

 

 

1

 

 

 

 

2

 

 

 

 

1

 

 

 

 

7

 

 

 

 

1

 

 

 

 

2

 

 

 

 

2

 

 

 

 

2

 

 

 

Operating Profit (Loss) Attributable to Celanese Corporation

1,940

 

 

22.7

%

 

515

 

 

22.6

%

 

535

 

 

23.6

%

 

565

 

 

25.7

%

 

325

 

 

18.1

%

 

657

 

 

11.6

%

 

202

 

 

12.7

%

 

182

 

 

12.9

%

 

81

 

 

6.8

%

 

192

 

 

13.2

%

Operating Profit (Loss) / Operating Margin Attributable to Celanese Corporation

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Engineered Materials

411

 

 

15.1

%

 

67

 

 

9.5

%

 

91

 

 

13.3

%

 

123

 

 

18.0

%

 

130

 

 

20.2

%

 

235

 

 

11.3

%

 

62

 

 

10.8

%

 

84

 

 

16.0

%

 

(13

)

 

(3.1

)%

 

102

 

 

18.1

%

Acetate Tow

56

 

 

10.9

%

 

4

 

 

3.1

%

 

12

 

 

9.4

%

 

24

 

 

17.4

%

 

16

 

 

13.4

%

 

118

 

 

22.7

%

 

30

 

 

22.4

%

 

30

 

 

23.3

%

 

31

 

 

24.4

%

 

27

 

 

20.9

%

Acetyl Chain(1)

1,813

 

 

33.4

%

 

533

 

 

36.1

%

 

516

 

 

34.7

%

 

514

 

 

36.5

%

 

250

 

 

23.7

%

 

556

 

 

17.7

%

 

185

 

 

20.3

%

 

119

 

 

15.3

%

 

119

 

 

18.0

%

 

133

 

 

16.6

%

Other Activities(2)

(340

)

 

 

 

(89

)

 

 

 

(84

)

 

 

 

(96

)

 

 

 

(71

)

 

 

 

(252

)

 

 

 

(75

)

 

 

 

(51

)

 

 

 

(56

)

 

 

 

(70

)

 

 

Total

1,940

 

 

22.7

%

 

515

 

 

22.6

%

 

535

 

 

23.6

%

 

565

 

 

25.7

%

 

325

 

 

18.1

%

 

657

 

 

11.6

%

 

202

 

 

12.7

%

 

182

 

 

12.9

%

 

81

 

 

6.8

%

 

192

 

 

13.2

%

Equity Earnings and Dividend Income, Other Income (Expense) Attributable to Celanese Corporation

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Engineered Materials

127

 

 

 

 

30

 

 

 

 

40

 

 

 

 

32

 

 

 

 

25

 

 

 

 

115

 

 

 

 

15

 

 

 

 

21

 

 

 

 

26

 

 

 

 

53

 

 

 

Acetate Tow

146

 

 

 

 

34

 

 

 

 

34

 

 

 

 

37

 

 

 

 

41

 

 

 

 

126

 

 

 

 

29

 

 

 

 

28

 

 

 

 

32

 

 

 

 

37

 

 

 

Acetyl Chain

8

 

 

 

 

2

 

 

 

 

2

 

 

 

 

2

 

 

 

 

2

 

 

 

 

5

 

 

 

 

2

 

 

 

 

2

 

 

 

 

 

 

 

 

1

 

 

 

Other Activities(2)

7

 

 

 

 

1

 

 

 

 

1

 

 

 

 

4

 

 

 

 

1

 

 

 

 

19

 

 

 

 

4

 

 

 

 

5

 

 

 

 

5

 

 

 

 

5

 

 

 

Total

288

 

 

 

 

67

 

 

 

 

77

 

 

 

 

75

 

 

 

 

69

 

 

 

 

265

 

 

 

 

50

 

 

 

 

56

 

 

 

 

63

 

 

 

 

96

 

 

 

Non-Operating Pension and Other Post-Retirement Employee Benefit (Expense) Income Attributable to Celanese Corporation

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Engineered Materials

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1

 

 

 

 

1

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Acetate Tow

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Acetyl Chain

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other Activities(2)

106

 

 

 

 

(7

)

 

 

 

37

 

 

 

 

38

 

 

 

 

38

 

 

 

 

16

 

 

 

 

(67

)

 

 

 

28

 

 

 

 

27

 

 

 

 

28

 

 

 

Total

106

 

 

 

 

(7

)

 

 

 

37

 

 

 

 

38

 

 

 

 

38

 

 

 

 

17

 

 

 

 

(66

)

 

 

 

28

 

 

 

 

27

 

 

 

 

28

 

 

 

Gain (Loss) On Sale of Investments in Affiliates

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Engineered Materials

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1,408

 

 

 

 

1,408

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Acetate Tow

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Acetyl Chain

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other Activities(2)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1,408

 

 

 

 

1,408

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Certain Items Attributable to Celanese Corporation (Table 8)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Engineered Materials

33

 

 

 

 

16

 

 

 

 

6

 

 

 

 

6

 

 

 

 

5

 

 

 

 

(1,356

)

 

 

 

(1,404

)

 

 

 

11

 

 

 

 

27

 

 

 

 

10

 

 

 

Acetate Tow

5

 

 

 

 

 

 

 

 

 

 

 

 

1

 

 

 

 

4

 

 

 

 

5

 

 

 

 

 

 

 

 

1

 

 

 

 

1

 

 

 

 

3

 

 

 

Acetyl Chain

28

 

 

 

 

1

 

 

 

 

(1

)

 

 

 

(2

)

 

 

 

30

 

 

 

 

7

 

 

 

 

 

 

 

 

5

 

 

 

 

(3

)

 

 

 

5

 

 

 

Other Activities(2)

73

 

 

 

 

60

 

 

 

 

(6

)

 

 

 

8

 

 

 

 

11

 

 

 

 

128

 

 

 

 

110

 

 

 

 

7

 

 

 

 

3

 

 

 

 

8

 

 

 

Total

139

 

 

 

 

77

 

 

 

 

(1

)

 

 

 

13

 

 

 

 

50

 

 

 

 

(1,216

)

 

 

 

(1,294

)

 

 

 

24

 

 

 

 

28

 

 

 

 

26

 

 

 

______________________________

(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.)
 

 

2021

 

Q4 '21

 

Q3 '21

 

Q2 '21

 

Q1 '21

 

2020

 

Q4 '20

 

Q3 '20

 

Q2 '20

 

Q1 '20

 

(In $ millions, except percentages)

Adjusted EBIT / Adjusted EBIT Margin

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Engineered Materials

571

 

 

21.0

%

 

113

 

 

16.0

%

 

137

 

 

20.0

%

 

161

 

 

23.6

%

 

160

 

 

24.8

%

 

403

 

 

19.4

%

 

82

 

 

14.3

%

 

116

 

 

22.1

%

 

40

 

 

9.5

%

 

165

 

 

29.3

%

Acetate Tow

207

 

 

40.3

%

 

38

 

 

29.5

%

 

46

 

 

35.9

%

 

62

 

 

44.9

%

 

61

 

 

51.3

%

 

249

 

 

48.0

%

 

59

 

 

44.0

%

 

59

 

 

45.7

%

 

64

 

 

50.4

%

 

67

 

 

51.9

%

Acetyl Chain

1,849

 

 

34.1

%

 

536

 

 

36.3

%

 

517

 

 

34.7

%

 

514

 

 

36.5

%

 

282

 

 

26.7

%

 

568

 

 

18.0

%

 

187

 

 

20.5

%

 

126

 

 

16.2

%

 

116

 

 

17.5

%

 

139

 

 

17.4

%

Other Activities(2)

(154

)

 

 

 

(35

)

 

 

 

(52

)

 

 

 

(46

)

 

 

 

(21

)

 

 

 

(89

)

 

 

 

(28

)

 

 

 

(11

)

 

 

 

(21

)

 

 

 

(29

)

 

 

Total

2,473

 

 

29.0

%

 

652

 

 

28.7

%

 

648

 

 

28.6

%

 

691

 

 

31.4

%

 

482

 

 

26.8

%

 

1,131

 

 

20.0

%

 

300

 

 

18.9

%

 

290

 

 

20.6

%

 

199

 

 

16.7

%

 

342

 

 

23.4

%

Depreciation and Amortization Expense(1)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Engineered Materials

135

 

 

 

 

35

 

 

 

 

33

 

 

 

 

34

 

 

 

 

33

 

 

 

 

129

 

 

 

 

32

 

 

 

 

33

 

 

 

 

32

 

 

 

 

32

 

 

 

Acetate Tow

39

 

 

 

 

10

 

 

 

 

10

 

 

 

 

9

 

 

 

 

10

 

 

 

 

36

 

 

 

 

10

 

 

 

 

9

 

 

 

 

9

 

 

 

 

8

 

 

 

Acetyl Chain

171

 

 

 

 

43

 

 

 

 

44

 

 

 

 

43

 

 

 

 

41

 

 

 

 

162

 

 

 

 

41

 

 

 

 

41

 

 

 

 

41

 

 

 

 

39

 

 

 

Other Activities(2)

17

 

 

 

 

5

 

 

 

 

4

 

 

 

 

4

 

 

 

 

4

 

 

 

 

17

 

 

 

 

4

 

 

 

 

5

 

 

 

 

4

 

 

 

 

4

 

 

 

Total

362

 

 

 

 

93

 

 

 

 

91

 

 

 

 

90

 

 

 

 

88

 

 

 

 

344

 

 

 

 

87

 

 

 

 

88

 

 

 

 

86

 

 

 

 

83

 

 

 

Operating EBITDA / Operating EBITDA Margin

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Engineered Materials

706

 

 

26.0

%

 

148

 

 

20.9

%

 

170

 

 

24.9

%

 

195

 

 

28.6

%

 

193

 

 

29.9

%

 

532

 

 

25.6

%

 

114

 

 

19.9

%

 

149

 

 

28.3

%

 

72

 

 

17.1

%

 

197

 

 

35.0

%

Acetate Tow

246

 

 

47.9

%

 

48

 

 

37.2

%

 

56

 

 

43.8

%

 

71

 

 

51.4

%

 

71

 

 

59.7

%

 

285

 

 

54.9

%

 

69

 

 

51.5

%

 

68

 

 

52.7

%

 

73

 

 

57.5

%

 

75

 

 

58.1

%

Acetyl Chain

2,020

 

 

37.2

%

 

579

 

 

39.2

%

 

561

 

 

37.7

%

 

557

 

 

39.5

%

 

323

 

 

30.6

%

 

730

 

 

23.2

%

 

228

 

 

25.1

%

 

167

 

 

21.5

%

 

157

 

 

23.7

%

 

178

 

 

22.3

%

Other Activities(2)

(137

)

 

 

 

(30

)

 

 

 

(48

)

 

 

 

(42

)

 

 

 

(17

)

 

 

 

(72

)

 

 

 

(24

)

 

 

 

(6

)

 

 

 

(17

)

 

 

 

(25

)

 

 

Total

2,835

 

 

33.2

%

 

745

 

 

32.7

%

 

739

 

 

32.6

%

 

781

 

 

35.5

%

 

570

 

 

31.7

%

 

1,475

 

 

26.1

%

 

387

 

 

24.3

%

 

378

 

 

26.8

%

 

285

 

 

23.9

%

 

425

 

 

29.1

%

______________________________

(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

 

 

2021

 

Q4 '21

 

Q3 '21

 

Q2 '21

 

Q1 '21

 

2020

 

Q4 '20

 

Q3 '20

 

Q2 '20

 

Q1 '20

 

 

 

per
share

 

 

 

per
share

 

 

 

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

1,912

 

 

17.06

 

528

 

 

4.83

 

519

 

 

4.67

 

542

 

 

4.81

 

323

 

 

2.83

 

1,997

 

 

16.85

 

1,453

 

 

12.50

 

209

 

 

1.76

 

110

 

 

0.93

 

225

 

 

1.88

Income tax provision (benefit)

330

 

 

 

 

27

 

 

 

 

102

 

 

 

 

116

 

 

 

 

85

 

 

 

 

247

 

 

 

 

117

 

 

 

 

30

 

 

 

 

35

 

 

 

 

65

 

 

 

Earnings (loss) from continuing operations before tax

2,242

 

 

 

 

555

 

 

 

 

621

 

 

 

 

658

 

 

 

 

408

 

 

 

 

2,244

 

 

 

 

1,570

 

 

 

 

239

 

 

 

 

145

 

 

 

 

290

 

 

 

Certain Items attributable to Celanese Corporation (Table 8)

139

 

 

 

 

77

 

 

 

 

(1

)

 

 

 

13

 

 

 

 

50

 

 

 

 

(1,216

)

 

 

 

(1,294

)

 

 

 

24

 

 

 

 

28

 

 

 

 

26

 

 

 

Refinancing and related expenses

9

 

 

 

 

 

 

 

 

9

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Adjusted earnings (loss) from continuing operations before tax

2,390

 

 

 

 

632

 

 

 

 

629

 

 

 

 

671

 

 

 

 

458

 

 

 

 

1,028

 

 

 

 

276

 

 

 

 

263

 

 

 

 

173

 

 

 

 

316

 

 

 

Income tax (provision) benefit on adjusted earnings(1)

(359

)

 

 

 

(95

)

 

 

 

(94

)

 

 

 

(105

)

 

 

 

(64

)

 

 

 

(123

)

 

 

 

(33

)

 

 

 

(32

)

 

 

 

(18

)

 

 

 

(41

)

 

 

Adjusted earnings (loss) from continuing operations(2)

2,031

 

 

18.12

 

537

 

 

4.91

 

535

 

 

4.82

 

566

 

 

5.02

 

394

 

 

3.46

 

905

 

 

7.64

 

243

 

 

2.09

 

231

 

 

1.95

 

155

 

 

1.30

 

275

 

 

2.29

 

Diluted shares (in millions)(3)

Weighted average shares outstanding

111.2

 

 

 

 

108.6

 

 

 

 

110.5

 

 

 

 

112.3

 

 

 

 

113.5

 

 

 

 

117.8

 

 

 

 

115.7

 

 

 

 

118.0

 

 

 

 

118.3

 

 

 

 

119.3

 

 

 

Incremental shares attributable to equity awards

0.9

 

 

 

 

0.8

 

 

 

 

0.5

 

 

 

 

0.5

 

 

 

 

0.5

 

 

 

 

0.7

 

 

 

 

0.6

 

 

 

 

0.6

 

 

 

 

0.5

 

 

 

 

0.6

 

 

 

Total diluted shares

112.1

 

 

 

 

109.4

 

 

 

 

111.0

 

 

 

 

112.8

 

 

 

 

114.0

 

 

 

 

118.5

 

 

 

 

116.3

 

 

 

 

118.6

 

 

 

 

118.8

 

 

 

 

119.9

 

 

 

______________________________

(1)

Calculated using adjusted effective tax rates (Table 3a) as follows:

 

2021

 

Q4 '21

 

Q3 '21

 

Q2 '21

 

Q1 '21

 

2020

 

Q4 '20

 

Q3 '20

 

Q2 '20

 

Q1 '20

 

 

Adjusted effective tax rate

15

 

 

 

15

 

 

 

15

 

 

 

16

 

 

 

14

 

 

 

12

 

 

 

12

 

 

 

12

 

 

 

10

 

 

 

13

 

 

 

(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)

Q4 '21 & 2021

 

1.1

 

6.3

Q4 '20 & 2020

 

12.4

 

 

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

 

 

Actual

 

2021

 

2020

 

(In percentages)

US GAAP annual effective tax rate

15

 

 

11

 

Discrete quarterly recognition of GAAP items(1)

(2

)

 

12

 

Tax impact of other charges and adjustments(2)

(1

)

 

(9

)

Utilization of foreign tax credits

(1

)

 

(3

)

Changes in valuation allowances, excluding impact of other charges and adjustments(3)

3

 

 

 

Other(4)

1

 

 

1

 

Adjusted tax rate

15

 

 

12

 

______________________________

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)

 

Tax impacts related to full-year forecasted tax opportunities and related costs.

Table 4

Net Sales by Segment - Unaudited

 

 

2021

 

Q4 '21

 

Q3 '21

 

Q2 '21

 

Q1 '21

 

2020

 

Q4 '20

 

Q3 '20

 

Q2 '20

 

Q1 '20

 

(In $ millions)

Engineered Materials

2,718

 

 

707

 

 

684

 

 

682

 

 

645

 

 

2,081

 

 

572

 

 

526

 

 

420

 

 

563

 

Acetate Tow

514

 

 

129

 

 

128

 

 

138

 

 

119

 

 

519

 

 

134

 

 

129

 

 

127

 

 

129

 

Acetyl Chain

5,430

 

 

1,476

 

 

1,489

 

 

1,409

 

 

1,056

 

 

3,147

 

 

910

 

 

776

 

 

662

 

 

799

 

Other Activities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Intersegment eliminations(1)

(125

)

 

(37

)

 

(35

)

 

(31

)

 

(22

)

 

(92

)

 

(25

)

 

(20

)

 

(16

)

 

(31

)

Net sales

8,537

 

 

2,275

 

 

2,266

 

 

2,198

 

 

1,798

 

 

5,655

 

 

1,591

 

 

1,411

 

 

1,193

 

 

1,460

 

______________________________

(1)

Includes intersegment sales primarily related to the Acetyl Chain.

Table 4a

Factors Affecting Segment Net Sales Sequentially - Unaudited

Three Months Ended December 31, 2021 Compared to Three Months Ended September 30, 2021

 

 

Volume

 

Price

 

Currency

 

Other

 

Total

 

 

(In percentages)

 

Engineered Materials

(1

)

 

5

 

 

(1

)

 

 

 

3

 

 (1)

Acetate Tow

 

 

1

 

 

 

 

 

 

1

 

 

Acetyl Chain

(10

)

 

10

 

 

(1

)

 

 

 

(1

)

 

 

 

 

 

 

 

 

 

 

 

 

Total Company

(7

)

 

8

 

 

(1

)

 

 

 

 

 

 

Three Months Ended September 30, 2021 Compared to Three Months Ended June 30, 2021

 

 

Volume

 

Price

 

Currency

 

Other

 

Total

 

 

(In percentages)

 

Engineered Materials

(2

)

 

3

 

 

(1

)

 

 

 

 

 

Acetate Tow

(8

)

 

 

 

 

 

 

 

(8

)

 

Acetyl Chain

3

 

 

3

 

 

 

 

 

 

6

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Company

1

 

 

3

 

 

(1

)

 

 

 

3

 

 

 

Three Months Ended June 30, 2021 Compared to Three Months Ended March 31, 2021

 

 

Volume

 

Price

 

Currency

 

Other

 

Total

 

 

(In percentages)

 

Engineered Materials

(1

)

 

7

 

 

 

 

 

 

6

 

 

Acetate Tow

16

 

 

 

 

 

 

 

 

16

 

 

Acetyl Chain

7

 

 

27

 

 

 

 

 

 

34

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Company

4

 

 

18

 

 

 

 

 

 

22

 

 

 

Three Months Ended March 31, 2021 Compared to Three Months Ended December 31, 2020

 

 

Volume

 

Price

 

Currency

 

Other

 

Total

 

 

(In percentages)

 

Engineered Materials

6

 

 

6

 

 

1

 

 

 

 

13

 

 

Acetate Tow

(10

)

 

(1

)

 

 

 

 

 

(11

)

 

Acetyl Chain

(7

)

 

23

 

 

 

 

 

 

16

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Company

(3

)

 

15

 

 

1

 

 

 

 

13

 

 

 

Three Months Ended December 31, 2020 Compared to Three Months Ended September 30, 2020

 

 

Volume

 

Price

 

Currency

 

Other

 

Total

 

 

(In percentages)

 

Engineered Materials

7

 

 

 

 

2

 

 

 

 

9

 

 

Acetate Tow

4

 

 

(1

)

 

 

 

 

 

3

 

 

Acetyl Chain

6

 

 

10

 

 

1

 

 

 

 

17

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Company

7

 

 

5

 

 

1

 

 

 

 

13

 

 

 

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

)

(2)

 

 

 

 

 

 

 

 

 

 

 

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

 

 

______________________________

(1) 2021 includes the effect of the acquisition of the Santoprene™ thermoplastic vulcanizates elastomers business.

(2)

2020 includes the effect of the acquisition of the Elotex® brand.

Table 4b

Factors Affecting Segment Net Sales Year Over Year - Unaudited

 

Three Months Ended December 31, 2021 Compared to Three Months Ended December 31, 2020

 

 

Volume

 

Price

 

Currency

 

Other

 

Total

 

 

(In percentages)

 

Engineered Materials

5

 

 

20

 

 

(1

)

 

 

 

24

 

 

Acetate Tow

(3

)

 

(1

)

 

 

 

 

 

(4

)

 

Acetyl Chain

(6

)

 

68

 

 

 

 

 

 

62

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Company

(2

)

 

46

 

 

(1

)

 

 

 

43

 

 

 

Three Months Ended September 30, 2021 Compared to Three Months Ended September 30, 2020

 

 

Volume

 

Price

 

Currency

 

Other

 

Total

 

 

(In percentages)

 

Engineered Materials

11

 

 

17

 

 

2

 

 

 

 

30

 

 

Acetate Tow

 

 

(2

)

 

 

 

1

 

 

(1

)

 

Acetyl Chain

11

 

 

80

 

 

1

 

 

 

 

92

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Company

10

 

 

50

 

 

1

 

 

 

 

61

 

 

 

Three Months Ended June 30, 2021 Compared to Three Months Ended June 30, 2020

 

 

Volume

 

Price

 

Currency

 

Other

 

Total

 

 

(In percentages)

 

Engineered Materials

43

 

 

11

 

 

8

 

 

 

 

62

 

 

Acetate Tow

10

 

 

(1

)

 

 

 

 

 

9

 

 

Acetyl Chain

27

 

 

83

 

 

3

 

 

 

 

113

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Company

31

 

 

50

 

 

4

 

 

(1

)

 

84

 

 

 

Three Months Ended March 31, 2021 Compared to Three Months Ended March 31, 2020

 

 

Volume

 

Price

 

Currency

 

Other

 

Total

 

 

(In percentages)

 

Engineered Materials

7

 

 

2

 

 

6

 

 

 

 

15

 

 

Acetate Tow

(8

)

 

 

 

 

 

 

 

(8

)

 

Acetyl Chain

5

 

 

25

 

 

2

 

 

 

 

32

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Company

5

 

 

14

 

 

4

 

 

 

 

23

 

 

 

Three Months Ended December 31, 2020 Compared to Three Months Ended December 31, 2019

 

 

Volume

 

Price

 

Currency

 

Other

 

Total

 

 

(In percentages)

 

Engineered Materials

6

 

 

(4

)

 

4

 

 

 

 

6

 

 

Acetate Tow

(7

)

 

(3

)

 

1

 

 

 

 

(9

)

 

Acetyl Chain

19

 

 

(3

)

 

2

 

 

 

 

18

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Company

12

 

 

(4

)

 

3

 

 

 

 

11

 

 

 

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

)

 

Table 4c

Factors Affecting Segment Net Sales Year Over Year - Unaudited

Year Ended December 31, 2021 Compared to Year Ended December 31, 2020

 

 

Volume

 

Price

 

Currency

 

Other

 

Total

 

 

(In percentages)

 

Engineered Materials

15

 

 

12

 

 

4

 

 

 

31

 

 

Acetate Tow

 

 

(1

)

 

 

 

 

 

(1

)

 

Acetyl Chain

9

 

 

62

 

 

2

 

 

 

 

73

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Company

10

 

 

39

 

 

2

 

 

 

51

 

 

 

Year Ended December 31, 2020 Compared to Year Ended December 31, 2019

 

 

Volume

 

Price

 

Currency

 

Other

 

Total

 

 

(In percentages)

 

Engineered Materials

(11

)

 

(3

)

 

1

 

 

 

 

(13

)

 

Acetate Tow

(14

)

 

(4

)

 

 

 

 

 

(18

)

 

Acetyl Chain

 

 

(8

)

 

1

 

 

 

 

(7

)

 

 

 

 

 

 

 

 

 

 

 

 

Total Company

(5

)

 

(6

)

 

 

 

1

 

 

(10

)

 

Table 5

Free Cash Flow - Reconciliation of a Non-GAAP Measure - Unaudited

 

 

2021

 

Q4 '21

 

Q3 '21

 

Q2 '21

 

Q1 '21

 

2020

 

Q4 '20

 

Q3 '20

 

Q2 '20

 

Q1 '20

 

(In $ millions, except percentages)

Net cash provided by (used in) investing activities

(1,119

)

 

(1,286

)

 

(108

)

 

177

 

 

98

 

 

592

 

 

979

 

 

(78

)

 

(181

)

 

(128

)

Net cash provided by (used in) financing activities

(1,042

)

 

(99

)

 

(228

)

 

(344

)

 

(371

)

 

(1,471

)

 

(933

)

 

(290

)

 

(232

)

 

(16

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net cash provided by (used in) operating activities

1,757

 

 

584

 

 

630

 

 

427

 

 

116

 

 

1,343

 

 

274

 

 

431

 

 

379

 

 

259

 

Capital expenditures on property, plant and equipment

(467

)

 

(163

)

 

(102

)

 

(110

)

 

(92

)

 

(364

)

 

(85

)

 

(72

)

 

(88

)

 

(119

)

Distributions to NCI

(27

)

 

(6

)

 

(8

)

 

(8

)

 

(5

)

 

(29

)

 

(8

)

 

(8

)

 

(8

)

 

(5

)

Free cash flow(1)(2)

1,263

 

 

415

 

 

520

 

 

309

 

 

19

 

 

950

 

 

181

 

 

351

 

 

283

 

 

135

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net sales

8,537

 

 

2,275

 

 

2,266

 

 

2,198

 

 

1,798

 

 

5,655

 

 

1,591

 

 

1,411

 

 

1,193

 

 

1,460

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Free cash flow as % of Net sales

14.8

%

 

18.2

%

 

22.9

%

 

14.1

%

 

1.1

%

 

16.8

%

 

11.4

%

 

24.9

%

 

23.7

%

 

9.2

%

______________________________

(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 $30 million and $26 million for the years ended December 31, 2021 and 2020, respectively.

Table 6

Cash Dividends Received - Unaudited

 

 

2021

 

Q4 '21

 

Q3 '21

 

Q2 '21

 

Q1 '21

 

2020

 

Q4 '20

 

Q3 '20

 

Q2 '20

 

Q1 '20

 

(In $ millions)

Dividends from equity method investments

112

 

 

51

 

 

8

 

 

18

 

 

35

 

 

147

 

 

36

 

 

6

 

 

59

 

 

46

 

Dividends from equity investments without readily determinable fair values

147

 

 

33

 

 

35

 

 

37

 

 

42

 

 

126

 

 

28

 

 

29

 

 

32

 

 

37

 

Total

259

 

 

84

 

 

43

 

 

55

 

 

77

 

 

273

 

 

64

 

 

35

 

 

91

 

 

83

 

 

Table 7

Net Debt - Reconciliation of a Non-GAAP Measure - Unaudited

 

 

2021

 

Q4 '21

 

Q3 '21

 

Q2 '21

 

Q1 '21

 

2020

 

Q4 '20

 

Q3 '20

 

Q2 '20

 

Q1 '20

 

(In $ millions)

Short-term borrowings and current installments of long-term debt - third party and affiliates

791

 

 

791

 

 

103

 

 

500

 

 

497

 

 

496

 

 

496

 

 

958

 

 

1,045

 

 

749

 

Long-term debt, net of unamortized deferred financing costs

3,176

 

 

3,176

 

 

3,724

 

 

3,156

 

 

3,135

 

 

3,227

 

 

3,227

 

 

3,140

 

 

2,989

 

 

3,356

 

Total debt

3,967

 

 

3,967

 

 

3,827

 

 

3,656

 

 

3,632

 

 

3,723

 

 

3,723

 

 

4,098

 

 

4,034

 

 

4,105

 

Cash and cash equivalents

(536

)

 

(536

)

 

(1,340

)

 

(1,054

)

 

(791

)

 

(955

)

 

(955

)

 

(615

)

 

(539

)

 

(570

)

Net debt

3,431

 

 

3,431

 

 

2,487

 

 

2,602

 

 

2,841

 

 

2,768

 

 

2,768

 

 

3,483

 

 

3,495

 

 

3,535

 

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:

 

 

2021

 

Q4 '21

 

Q3 '21

 

Q2 '21

 

Q1 '21

 

2020

 

Q4 '20

 

Q3 '20

 

Q2 '20

 

Q1 '20

 

Income Statement Classification

 

(In $ millions)

 

 

Plant/office closures

7

 

 

5

 

 

4

 

 

3

 

 

(5

)

 

10

 

 

7

 

 

4

 

 

(4

)

 

3

 

 

Cost of sales / SG&A / Other (charges) gains, net / Gain (loss) on disposition of businesses and assets, net

Asset impairments

2

 

 

 

 

 

 

1

 

 

1

 

 

31

 

 

 

 

2

 

 

25

 

 

4

 

 

Cost of sales / Other (charges) gains, net

Clear Lake incident

 

 

 

 

 

 

 

 

 

 

4

 

 

 

 

 

 

 

 

4

 

 

Cost of sales

COVID-19

1

 

 

1

 

 

 

 

 

 

 

 

5

 

 

2

 

 

1

 

 

1

 

 

1

 

 

Cost of sales / SG&A

Mergers, acquisitions and dispositions

29

 

 

19

 

 

4

 

 

6

 

 

 

 

22

 

 

5

 

 

7

 

 

3

 

 

7

 

 

Cost of sales / SG&A

Impact from natural disasters(1)

41

 

 

 

 

 

 

 

 

41

 

 

 

 

 

 

 

 

 

 

 

 

Cost of sales

Actuarial (gain) loss on pension and postretirement plans

43

 

 

43

 

 

 

 

 

 

 

 

95

 

 

95

 

 

 

 

 

 

 

 

Cost of sales / SG&A / Non-operating pension and other postretirement employee benefit (expense) income

Restructuring

11

 

 

3

 

 

3

 

 

2

 

 

3

 

 

25

 

 

5

 

 

11

 

 

2

 

 

7

 

 

SG&A / Other (charges) gains, net / Non-operating pension and other postretirement employee benefit (expense) income

European Commission investigation

 

 

 

 

 

 

 

 

 

 

2

 

 

 

 

 

 

2

 

 

 

 

Other (charges) gains, net

Commercial disputes

16

 

 

4

 

 

2

 

 

1

 

 

9

 

 

(1

)

 

 

 

 

 

(1

)

 

 

 

Cost of sales / SG&A / Other (charges) gains, net

(Gain) loss on sale of investments in affiliates

 

 

 

 

 

 

 

 

 

 

(1,408

)

 

(1,408

)

 

 

 

 

 

 

 

Gain (loss) on sale of investments in affiliates

(Gain) loss on sale of assets(2)

(12

)

 

2

 

 

(14

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Gain (loss) on disposition of businesses and assets, net

Other

1

 

 

 

 

 

 

 

 

1

 

 

(1

)

 

 

 

(1

)

 

 

 

 

 

SG&A / Gain (loss) on disposition of businesses and assets, net

Certain Items attributable to Celanese Corporation

139

 

 

77

 

(1

)

 

13

 

50

 

 

(1,216

)

 

(1,294

)

 

24

 

 

28

 

 

26

 

 

______________________________

(1)

 

Primarily associated with Winter Storm Uri.

(2)

 

Primarily associated with the sale of our Spondon site.

Table 9

Return on Invested Capital (Adjusted) - Presentation of a Non-GAAP Measure - Unaudited

 

 

 

 

 

 

2021

 

 

 

 

 

2020

 

 

 

 

 

(In $ millions, except
percentages)

 

 

 

 

 

(In $ millions, except
percentages)

Net earnings (loss) attributable to Celanese Corporation

 

 

 

 

1,890

 

 

 

 

 

 

1,985

 

 

 

 

 

 

 

 

 

 

 

 

 

Adjusted EBIT (Table 1)

 

 

 

 

2,473

 

 

 

 

 

 

1,131

 

Adjusted effective tax rate (Table 3a)

 

 

 

 

15

%

 

 

 

 

 

12

%

Adjusted EBIT tax effected

 

 

 

 

2,102

 

 

 

 

 

 

995

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2021

 

2020

 

Average

 

2020

 

2019

 

Average

 

(In $ millions, except percentages)

Short-term borrowings and current installments of long-term debt - third parties and affiliates

791

 

 

496

 

 

644

 

 

496

 

 

496

 

 

496

 

Long-term debt, net of unamortized deferred financing costs

3,176

 

 

3,227

 

 

3,202

 

 

3,227

 

 

3,409

 

 

3,318

 

Celanese Corporation stockholders' equity

4,189

 

3,526

 

3,858

 

 

3,526

 

2,507

 

3,017

 

Invested capital

 

 

 

 

7,704

 

 

 

 

 

 

6,831

 

 

 

 

 

 

 

 

 

 

 

 

 

Return on invested capital (adjusted)

 

 

 

 

27.3

%

 

 

 

 

 

14.6

%

 

 

 

 

 

 

 

 

 

 

 

 

Net earnings (loss) attributable to Celanese Corporation as a percentage of invested capital

 

 

 

24.5

%

 

 

 

 

 

29.1

%

 

Investor Relations
Brandon Ayache
Phone: +1 972 443 8509
brandon.ayache@celanese.com

Media - U.S.
Travis Jacobsen
Phone: +1 972 443 3750
william.jacobsen@celanese.com

Media - Europe
Petra Czugler
Phone: +49 69 45009 1206
petra.czugler@celanese.com

Source: Celanese Corporation