Celanese Corporation Reports First Quarter 2019 Earnings; Reaffirms 2019 Full Year and Long-Term Outlook

Mon, April 22 2019

DALLAS--(BUSINESS WIRE)-- Celanese Corporation (NYSE: CE), a global chemical and specialty materials company, today reported first quarter GAAP diluted earnings per share of $2.64 and adjusted earnings per share of $2.62 on net sales of $1.7 billion. Despite a challenging business environment, the Company delivered sequential growth in operating profit and adjusted EBIT due to the resiliency of the Engineered Materials and Acetyl Chain commercial models and continued stability in Acetate Tow. In the quarter, Celanese generated operating cash flow of $307 million and free cash flow of $224 million, both first quarter records. The Company reaffirmed its full year 2019 guidance for both adjusted EPS and free cash flow. Celanese continues to strategically invest in high return organic projects with recently announced incremental expansions in both Engineered Materials and the Acetyl Chain.

First Quarter 2019 Financial Highlights:

			Three Months Ended
			March 31, 2019				December 31, 2018				March 31, 2018
			(unaudited)
			(In $ millions)
Operating Profit (Loss)
Engineered Materials			144				95				127
Acetate Tow			40				19				46
Acetyl Chain			202				211				253
Other Activities			(66	)			(66	)			(83	)
Total			320				259				343

			Three Months Ended
			March 31, 2019					December 31, 2018					March 31, 2018
			(unaudited)
			(In $ millions, except per share data)
Net Earnings (Loss)				338					101					365
Adjusted EBIT(1)(2)
Engineered Materials				183					150					182
Acetate Tow				72					53					78
Acetyl Chain				203					215					253
Other Activities				(37	)				(25	)				(39	)
Total				421					393					474
Equity Earnings and Dividend Income, Other Income (Expense)
Engineered Materials				46					49					54
Acetate Tow				32					25					32
Operating EBITDA(1)				502					471					553
Diluted EPS - continuing operations			$	2.64				$	0.73				$	2.68
Diluted EPS - total			$	2.63				$	0.75				$	2.66
Adjusted EPS(1)			$	2.62				$	2.38				$	2.79
Net cash provided by (used in) investing activities				(177	)				(98	)				(235	)
Net cash provided by (used in) financing activities				(130	)				(526	)				(2	)
Net cash provided by (used in) operating activities				307					363					143
Free cash flow(1)				224					261					55

______________________________
(1)		See "Non-US GAAP Financial Measures" below.
(2)		The Company's discussion of adjusted earnings includes use of the term "segment income". This non-GAAP term is defined below and reconciled in our Non-US GAAP Financial Measures and Supplemental Information document referenced below.

First Quarter 2019 Highlights:

• Announced appointments of Mark Rohr to Executive Chairman and Lori Ryerkerk to Chief Executive Officer, effective May 1, 2019. Ryerkerk most recently served as Executive Vice President of Global Manufacturing at Shell.
• Welcomed A. Lynne Puckett as Senior Vice President and General Counsel, effective February 13, 2019.
• Announced an expansion of the thermoplastic co-polyester production unit at the Donegani facility in Ferrara, Italy to support continued growth in Engineered Materials.
• Announced expansion of Clear Lake methanol production to 1.7 million metric tons per year in support of the global reconfiguration of the acid production footprint.
• Commercialized 1,075 Engineered Materials projects in the first quarter of 2019, a 45 percent increase year over year, and on track to delivering more than 4,000 project wins in 2019.
• Completed the acquisition of Next Polymers Ltd., a leading domestic engineering thermoplastics compounder in India.
• Received a credit rating upgrade on April 12, by Standard & Poor's to BBB from BBB-.
• Increased the quarterly dividend by 15 percent to an annualized rate of $2.48 per share, the tenth consecutive year of dividend increases.
• Announced a new share repurchase authorization of $1.5 billion, adding to the $0.5 billion which remains from the prior authorization.

First Quarter 2019 Business Segment Overview

Engineered Materials (EM)

Engineered Materials generated first quarter net sales of $663 million, an increase of 7 percent over the fourth quarter of 2018 on higher volume and pricing. GAAP operating profit of $144 million and segment income of $183 million were both first quarter records as the business continued to lift average pricing in the quarter. The business delivered first quarter operating profit margin of 21.7 percent and adjusted EBIT margin of 27.6 percent, increases of 640 basis points and 350 basis points, respectively, over the prior quarter. Although volumes were down 3 percent year over year, margins increased both sequentially and year over year as the business expanded pricing and upgraded the sales mix. The EM base business, excluding affiliates, contributed record adjusted EBIT that more than offset continued underlying demand weakness and affiliate performance. As a result, the overall business grew GAAP operating profit and segment income on a sequential and year over year basis.

Acetyl Chain

The Acetyl Chain recorded net sales of $889 million in the first quarter, as sequential volume growth of 5 percent partially offset a decline in industry pricing. GAAP operating profit was $202 million and segment income was $203 million, the fifth consecutive quarter each has surpassed $200 million. GAAP operating and segment income margins of approximately 23.0 percent, amid lower industry utilization and pricing, further confirm the elevated foundational earnings of the business. The Acetyl Chain utilized the newly expanded VAM capacity at Clear Lake and flexed its global supply network and integrated chain to grow volume and upgrade the sales mix sequentially. The Acetyl Chain continues to expand its ability to activate the global network to deliver performance in excess of underlying market conditions.

Acetate Tow

Acetate Tow reported GAAP operating profit of $40 million and segment income of $72 million in the first quarter, improvements over the fourth quarter of 2018 and reflective of anticipated run-rate quarterly performance levels. Price and volume in the first quarter increased slightly over the fourth quarter of 2018 and were stable compared to the same quarter last year. Dividends from affiliates were $32 million in the first quarter, in line with the prior year but higher sequentially due to the timing of dividend payments from the Chinese joint ventures.

Cash Flow and Tax

The Company delivered a first quarter record performance in operating cash flow and free cash flow of $307 million and $224 million, respectively, driven by strong business results and efficient management of working capital. Capital expenditures in the quarter were $79 million, including productivity and expansion projects in Engineered Materials and the Acetyl Chain, and on track to total $350 to $400 million for the year. For the quarter, a total of $270 million in cash was returned to shareholders, including $70 million in dividends and $200 million in share repurchases. The effective US GAAP tax rate was 12 percent in the first quarter compared to 15 percent in the same quarter of last year, primarily due to valuation allowance adjustments on deferred tax assets. The tax rate for adjusted EPS was 14 percent in the quarter, unchanged year over year.

Outlook

"Challenging global business conditions persisted into the new year, and our strong first quarter performance solidly underscores the capability of our businesses to deliver in any environment," said Mark Rohr, chairman and chief executive officer. "Engineered Materials executed the project pipeline model to deliver earnings growth, both sequential and year over year, that was distinctly elevated beyond underlying market conditions. In the Acetyl Chain, another quarter of fundamentally strong earnings displayed the power to create incremental value by flexing our global network. Looking forward, we are not forecasting a significant improvement in demand in the current quarter, and therefore expect second quarter performance similar to first quarter. Based on an expectation that underlying fundamentals will begin to improve later this year, we have confidence in reaffirming our expectation for 2019 adjusted earnings of approximately $10.50 per share. We continue to strategically invest in our businesses and further expand our capability to drive consistent growth and value creation for our shareholders."

We are 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.

The Company's earnings presentation and prepared remarks related to the first quarter results will be posted on its website at investors.celanese.com under News & Events/Presentations after market close on April 22, 2019. Information about Non-US GAAP measures is included in a Non-US GAAP Financial Measures and Supplemental Information document posted on our website and available at the link below. See "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 2018 net sales of $7.2 billion. For more information about Celanese Corporation and its product offerings, visit www.celanese.com or our blog at www.celaneseblog.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; 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; the ability to reduce or maintain their current levels of production costs and to improve productivity by implementing technological improvements to existing plants; increased price competition and the introduction of competing products by other companies; 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 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 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; 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. 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.
• Adjusted EBIT by business segment may also be referred to by management as segment income. Adjusted EBIT margin by business segment may also be referred to by management as segment income margin.
• 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 April 22, 2019 and also available on our website at investors.celanese.com under Financial Information/Non-GAAP Financial Measures, or at this link: http://investors.celanese.com/interactive/lookandfeel/4103411/Non-GAAP.PDF.

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
			March 31, 2019				December 31, 2018				March 31, 2018
			(In $ millions, except share and per share data)
Net sales			1,687				1,689				1,851
Cost of sales			(1,234	)			(1,269	)			(1,336	)
Gross profit			453				420				515
Selling, general and administrative expenses			(120	)			(134	)			(147	)
Amortization of intangible assets			(6	)			(6	)			(6	)
Research and development expenses			(16	)			(18	)			(18	)
Other (charges) gains, net			4				—				—
Foreign exchange gain (loss), net			5				(2	)			(1	)
Gain (loss) on disposition of businesses and assets, net			—				(1	)			—
Operating profit (loss)			320				259				343
Equity in net earnings (loss) of affiliates			50				53				58
Non-operating pension and other postretirement employee benefit (expense) income			17				(139	)			26
Interest expense			(31	)			(30	)			(33	)
Refinancing expense			—				(1	)			—
Interest income			1				2				2
Dividend income - equity investments			32				25				32
Other income (expense), net			(4	)			5				4
Earnings (loss) from continuing operations before tax			385				174				432
Income tax (provision) benefit			(46	)			(76	)			(65	)
Earnings (loss) from continuing operations			339				98				367
Earnings (loss) from operation of discontinued operations			(1	)			4				(2	)
Income tax (provision) benefit from discontinued operations			—				(1	)			—
Earnings (loss) from discontinued operations			(1	)			3				(2	)
Net earnings (loss)			338				101				365
Net (earnings) loss attributable to noncontrolling interests			(1	)			(2	)			(2	)
Net earnings (loss) attributable to Celanese Corporation			337				99				363
Amounts attributable to Celanese Corporation
Earnings (loss) from continuing operations			338				96				365
Earnings (loss) from discontinued operations			(1	)			3				(2	)
Net earnings (loss)			337				99				363
Earnings (loss) per common share - basic
Continuing operations			2.65				0.73				2.69
Discontinued operations			(0.01	)			0.02				(0.02	)
Net earnings (loss) - basic			2.64				0.75				2.67
Earnings (loss) per common share - diluted
Continuing operations			2.64				0.73				2.68
Discontinued operations			(0.01	)			0.02				(0.02	)
Net earnings (loss) - diluted			2.63				0.75				2.66
Weighted average shares (in millions)
Basic			127.5				131.2				135.9
Diluted			128.2				132.1				136.4

Consolidated Balance Sheets - Unaudited

			As of March 31, 2019				As of December 31, 2018
			(In $ millions)
ASSETS
Current Assets
Cash and cash equivalents			441				439
Trade receivables - third party and affiliates, net			1,015				1,017
Non-trade receivables, net			343				301
Inventories			1,009				1,046
Marketable securities, at fair value			29				31
Other assets			47				40
Total current assets			2,884				2,874
Investments in affiliates			950				979
Property, plant and equipment, net			3,721				3,719
Operating lease right-of-use assets			210				—
Deferred income taxes			93				84
Other assets			309				290
Goodwill			1,075				1,057
Intangible assets, net			332				310
Total assets			9,574				9,313
LIABILITIES AND EQUITY
Current Liabilities
Short-term borrowings and current installments of long-term debt - third party and affiliates			743				561
Trade payables - third party and affiliates			699				819
Other liabilities			311				343
Income taxes payable			69				56
Total current liabilities			1,822				1,779
Long-term debt, net of unamortized deferred financing costs			2,933				2,970
Deferred income taxes			273				255
Uncertain tax positions			162				158
Benefit obligations			550				564
Operating lease liabilities			193				—
Other liabilities			202				208
Commitments and Contingencies
Stockholders' Equity
Treasury stock, at cost			(3,048	)			(2,849	)
Additional paid-in capital			224				233
Retained earnings			6,114				5,847
Accumulated other comprehensive income (loss), net			(243	)			(247	)
Total Celanese Corporation stockholders' equity			3,047				2,984
Noncontrolling interests			392				395
Total equity			3,439				3,379
Total liabilities and equity			9,574				9,313

Non-US GAAP Financial Measures and Supplemental Information

April 22, 2019

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/Documents 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/Non-GAAP Financial Measures 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.
• Adjusted EBIT by business segment may also be referred to by management as segment income. Adjusted EBIT margin by business segment may also be referred to by management as segment income margin.
• 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
			Q1 '19				2018				Q4 '18				Q3 '18				Q2 '18				Q1 '18
			(In $ millions)
Net earnings (loss) attributable to Celanese Corporation			337				1,207				99				401				344				363
(Earnings) loss from discontinued operations			1				5				(3	)			6				—				2
Interest income			(1	)			(6	)			(2	)			(2	)			—				(2	)
Interest expense			31				125				30				30				32				33
Refinancing expense			—				1				1				—				—				—
Income tax provision (benefit)			46				292				76				54				97				65
Certain Items attributable to Celanese Corporation (Table 8)			7				228				192				5				18				13
Adjusted EBIT			421				1,852				393				494				491				474
Depreciation and amortization expense(1)			81				316				78				77				82				79
Operating EBITDA			502				2,168				471				571				573				553
			Q1 '19				2018				Q4 '18				Q3 '18				Q2 '18				Q1 '18
			(In $ millions)
Engineered Materials			1				1				—				—				1				—
Acetate Tow			—				19				5				11				3				—
Acetyl Chain			1				7				5				2				—				—
Other Activities(2)			—				—				—				—				—				—
Accelerated depreciation and amortization expense			2				27				10				13				4				—
Depreciation and amortization expense(1)			81				316				78				77				82				79
Total depreciation and amortization expense			83				343				88				90				86				79

______________________________
(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
			Q1 '19								2018								Q4 '18								Q3 '18								Q2 '18								Q1 '18
			(In $ millions, except percentages)
Operating Profit (Loss) / Operating Margin
Engineered Materials			144				21.7	%			460				17.7	%			95				15.3	%			124				19.3	%			114				17.2	%			127				19.1	%
Acetate Tow			40				24.1	%			130				20.0	%			19				11.8	%			26				16.5	%			39				24.1	%			46				27.4	%
Acetyl Chain(1)			202				22.7	%			1,024				25.3	%			211				22.5	%			287				28.5	%			273				26.0	%			253				24.1	%
Other Activities(2)			(66	)							(280	)							(66	)							(63	)							(68	)							(83	)
Total			320				19.0	%			1,334				18.6	%			259				15.3	%			374				21.1	%			358				19.4	%			343				18.5	%
Less: Net Earnings (Loss) Attributable to NCI(1)			1								6								2								1								1								2
Operating Profit (Loss) Attributable to Celanese Corporation			319				18.9	%			1,328				18.6	%			257				15.2	%			373				21.1	%			357				19.4	%			341				18.4	%
Operating Profit (Loss) / Operating Margin Attributable to Celanese Corporation
Engineered Materials			144				21.7	%			460				17.7	%			95				15.3	%			124				19.3	%			114				17.2	%			127				19.1	%
Acetate Tow			40				24.1	%			130				20.0	%			19				11.8	%			26				16.5	%			39				24.1	%			46				27.4	%
Acetyl Chain(1)			201				22.6	%			1,018				25.2	%			209				22.3	%			286				28.4	%			272				25.9	%			251				23.9	%
Other Activities(2)			(66	)							(280	)							(66	)							(63	)							(68	)							(83	)
Total			319				18.9	%			1,328				18.6	%			257				15.2	%			373				21.1	%			357				19.4	%			341				18.4	%
Equity Earnings and Dividend Income, Other Income (Expense) Attributable to Celanese Corporation
Engineered Materials			46								219			(3)					49								62								54								54
Acetate Tow			32								116								25								26								33								32
Acetyl Chain			1								8								1								2								3								2
Other Activities(2)			(1	)							15								8								1								—								6
Total			78								358								83								91								90								94
Non-Operating Pension and Other Post-Retirement Employee Benefit (Expense) Income Attributable to Celanese Corporation
Engineered Materials			—								—								—								—								—								—
Acetate Tow			—								—								—								—								—								—
Acetyl Chain			—								—								—								—								—								—
Other Activities(2)			17								(62	)							(139	)							25								26								26
Total			17								(62	)							(139	)							25								26								26
Certain Items Attributable to Celanese Corporation (Table 8)
Engineered Materials			(7	)							15								6								1								7								1
Acetate Tow			—								27								9								13								5								—
Acetyl Chain			1								(4	)							5								(11	)							2								—
Other Activities(2)			13								190								172								2								4								12
Total			7								228								192								5								18								13
Adjusted EBIT / Adjusted EBIT Margin
Engineered Materials			183				27.6	%			694				26.8	%			150				24.1	%			187				29.1	%			175				26.4	%			182				27.4	%
Acetate Tow			72				43.4	%			273				42.1	%			53				32.9	%			65				41.1	%			77				47.5	%			78				46.4	%
Acetyl Chain			203				22.8	%			1,022				25.3	%			215				23.0	%			277				27.5	%			277				26.4	%			253				24.1	%
Other Activities(2)			(37	)							(137	)							(25	)							(35	)							(38	)							(39	)
Total			421				25.0	%			1,852				25.9	%			393				23.3	%			494				27.9	%			491				26.6	%			474				25.6	%

___________________________
(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).
(3)		Includes $218 million of Equity in net earnings (loss) of affiliates and $1 million of Other income.

Table 2 - Supplemental Segment Data and Reconciliation of Segment Adjusted EBIT and Operating EBITDA - Non-GAAP Measures - Unaudited (cont.)
			Q1 '19								2018								Q4 '18								Q3 '18								Q2 '18								Q1 '18
			(In $ millions, except percentages)
Depreciation and Amortization Expense(1)
Engineered Materials			31								125								30								31								32								32
Acetate Tow			10								39								9								10								10								10
Acetyl Chain			37								141								36								34								36								35
Other Activities(2)			3								11								3								2								4								2
Total			81								316								78								77								82								79
Operating EBITDA / Operating EBITDA Margin
Engineered Materials			214				32.3	%			819				31.6	%			180				28.9	%			218				34.0	%			207				31.2	%			214				32.2	%
Acetate Tow			82				49.4	%			312				48.1	%			62				38.5	%			75				47.5	%			87				53.7	%			88				52.4	%
Acetyl Chain			240				27.0	%			1,163				28.8	%			251				26.8	%			311				30.9	%			313				29.8	%			288				27.4	%
Other Activities(2)			(34	)							(126	)							(22	)							(33	)							(34	)							(37	)
Total			502				29.8	%			2,168				30.3	%			471				27.9	%			571				32.2	%			573				31.1	%			553				29.9	%

___________________________
(1)		Excludes accelerated depreciation and amortization expense, which amounts are included in Certain Items above. See Table 1 for details.
(2)		Other Activities includes corporate SG&A expenses, 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
			Q1 '19							2018							Q4 '18							Q3 '18							Q2 '18							Q1 '18
							per							per							per							per							per							per
							share							share							share							share							share							share
			(In $ millions, except per share data)
Earnings (loss) from continuing operations attributable to Celanese Corporation			338				2.64			1,212				8.95			96				0.73			407				3.00			344				2.52			365				2.68
Income tax provision (benefit)			46							292							76							54							97							65
Earnings (loss) from continuing operations before tax			384							1,504							172							461							441							430
Certain Items attributable to Celanese Corporation (Table 8)			7							228							192							5							18							13
Refinancing and related expenses			—							1							1							—							—							—
Adjusted earnings (loss) from continuing operations before tax			391							1,733							365							466							459							443
Income tax (provision) benefit on adjusted earnings(1)			(55	)						(243	)						(51	)						(65	)						(64	)						(62	)
Adjusted earnings (loss) from continuing operations(2)			336				2.62			1,490				11.00			314				2.38			401				2.96			395				2.90			381				2.79
			Diluted shares (in millions)(3)
Weighted average shares outstanding			127.5							134.3							131.2							134.5							135.6							135.9
Incremental shares attributable to equity awards			0.7							1.1							0.9							1.0							0.7							0.5
Total diluted shares			128.2							135.4							132.1							135.5							136.3							136.4

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

				Q1 '19						2018						Q4 '18						Q3 '18						Q2 '18						Q1 '18
				(In percentages)
Adjusted effective tax rate				14						14						14						14						14						14

(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)
2018					(3.9	)			6.7

(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
			2019				2018
			(In percentages)
US GAAP annual effective tax rate			14				19
Discrete quarterly recognition of GAAP items(1)			1				—
Tax impact of other charges and adjustments(2)			1				—
Utilization of foreign tax credits			(2	)			—
Changes in valuation allowances, excluding impact of other charges and adjustments(3)			1				(5	)
Other(4)			(1	)			—
Adjusted tax rate			14				14

______________________________
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
			Q1 '19				2018				Q4 '18				Q3 '18				Q2 '18				Q1 '18
			(In $ millions)
Engineered Materials			663				2,593				622				642				664				665
Acetate Tow			166				649				161				158				162				168
Acetyl Chain			889				4,042				936				1,006				1,049				1,051
Other Activities(1)			—				—				—				—				—				—
Intersegment eliminations(2)			(31	)			(129	)			(30	)			(35	)			(31	)			(33	)
Net sales			1,687				7,155				1,689				1,771				1,844				1,851

___________________________
(1)		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).
(2)		Includes intersegment sales primarily related to the Acetyl Chain.

Table 4a
Factors Affecting Segment Net Sales Sequentially - Unaudited
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			(1)
Acetate Tow			1				2				—				—				3
Acetyl Chain			5				(10	)			—				—				(5	)
Total Company			5				(5	)			—				—				—

Three Months Ended December 31, 2018 Compared to Three Months Ended September 30, 2018
			Volume				Price				Currency				Other				Total
			(In percentages)
Engineered Materials			(4	)			2				(1	)			—				(3	)
Acetate Tow			2				(1	)			—				—				1
Acetyl Chain			(3	)			(4	)			(1	)			1				(7	)
Total Company			(3	)			(2	)			(1	)			1				(5	)

Three Months Ended September 30, 2018 Compared to Three Months Ended June 30, 2018
			Volume				Price				Currency				Other				Total
			(In percentages)
Engineered Materials			(2	)			—				(1	)			—				(3	)
Acetate Tow			(2	)			—				—				—				(2	)
Acetyl Chain			(4	)			2				(2	)			—				(4	)
Total Company			(3	)			1				(2	)			—				(4	)

Three Months Ended June 30, 2018 Compared to Three Months Ended March 31, 2018
			Volume				Price				Currency				Other				Total
			(In percentages)
Engineered Materials			(1	)			3				(2	)			—				—
Acetate Tow			(3	)			—				(1	)			—				(4	)
Acetyl Chain			(2	)			4				(1	)			(1	)			—
Total Company			(2	)			3				(1	)			—				—

Three Months Ended March 31, 2018 Compared to Three Months Ended December 31, 2017
			Volume				Price				Currency				Other				Total
			(In percentages)
Engineered Materials			10				3				2				—				15			(2)
Acetate Tow			8				—				—				—				8
Acetyl Chain			8				9				3				(2	)			18
Total Company			9				6				2				(1	)			16

_________________________
(1)		2019 includes the effect of the acquisition of Next Polymers Ltd.
(2)		2018 includes the effect of the acquisition of Omni Plastics, L.L.C.

Table 4b
Factors Affecting Segment Net Sales Year Over Year - Unaudited
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	)

Three Months Ended December 31, 2018 Compared to Three Months Ended December 31, 2017
			Volume				Price				Currency				Other				Total
			(In percentages)
Engineered Materials			2				7				(2	)			—				7
Acetate Tow			5				(2	)			—				—				3
Acetyl Chain			(2	)			10				(2	)			(1	)			5
Total Company			—				8				(2	)			—				6

Three Months Ended September 30, 2018 Compared to Three Months Ended September 30, 2017
			Volume				Price				Currency				Other				Total
			(In percentages)
Engineered Materials			7				6				(1	)			—				12
Acetate Tow			5				(3	)			—				(1	)			1
Acetyl Chain			(3	)			22				—				(2	)			17
Total Company			1				14				(1	)			(1	)			13

Three Months Ended June 30, 2018 Compared to Three Months Ended June 30, 2017
			Volume				Price				Currency				Other				Total
			(In percentages)
Engineered Materials			11				7				4				—				22
Acetate Tow			1				(2	)			—				—				(1	)
Acetyl Chain			6				19				5				(3	)			27
Total Company			7				13				4				(2	)			22

Three Months Ended March 31, 2018 Compared to Three Months Ended March 31, 2017
			Volume				Price				Currency				Other				Total
			(In percentages)
Engineered Materials			19				3				7				—				29
Acetate Tow			(9	)			(4	)			1				—				(12	)
Acetyl Chain			3				25				7				(3	)			32
Total Company			7				14				6				(1	)			26

Table 4c
Factors Affecting Segment Net Sales Year Over Year - Unaudited
Year Ended December 31, 2018 Compared to Year Ended December 31, 2017
			Volume				Price				Currency				Other				Total
			(In percentages)
Engineered Materials			9				6				2				—				17
Acetate Tow			—				(3	)			—				—				(3	)
Acetyl Chain			1				19				2				(2	)			20
Total Company			4				12				2				(1	)			17

Table 5
Free Cash Flow - Reconciliation of a Non-GAAP Measure - Unaudited
			Q1 '19				2018				Q4 '18				Q3 '18				Q2 '18				Q1 '18
			(In $ millions, except percentages)
Net cash provided by (used in) investing activities			(177	)			(507	)			(98	)			(78	)			(96	)			(235	)
Net cash provided by (used in) financing activities			(130	)			(1,165	)			(526	)			(383	)			(254	)			(2	)
Net cash provided by (used in) operating activities			307				1,558				363				467				585				143
Capital expenditures on property, plant and equipment			(79	)			(337	)			(93	)			(79	)			(79	)			(86	)
Capital (distributions to) contributions from NCI			(4	)			(23	)			(9	)			(6	)			(6	)			(2	)
Free cash flow(1)(2)			224				1,198				261				382				500				55
Net sales			1,687				7,155				1,689				1,771				1,844				1,851
Free cash flow as % of Net sales			13.3	%			16.7	%			15.5	%			21.6	%			27.1	%			3.0	%

______________________________
(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 from or distributions to Mitsui & Co., Ltd. ("Mitsui") related to our joint venture, Fairway Methanol LLC ("Fairway").
(2)		Excludes required debt service and finance lease payments of $24 million and $63 million for the years ending December 31, 2019 and 2018, respectively.

Table 6
Cash Dividends Received - Unaudited
			Q1 '19				2018				Q4 '18				Q3 '18				Q2 '18				Q1 '18
			(In $ millions)
Dividends from equity method investments			70				221				62				44				39				76
Dividends from equity investments without readily determinable fair values			32				117				25				26				34				32
Total			102				338				87				70				73				108

Table 7
Net Debt - Reconciliation of a Non-GAAP Measure - Unaudited
			Q1 '19				2018				Q4 '18				Q3 '18				Q2 '18				Q1 '18
			(In $ millions)
Short-term borrowings and current installments of long-term debt - third party and affiliates			743				561				561				229				366				425
Long-term debt, net of unamortized deferred financing costs			2,933				2,970				2,970				3,196				3,228				3,343
Total debt			3,676				3,531				3,531				3,425				3,594				3,768
Cash and cash equivalents			(441	)			(439	)			(439	)			(703	)			(708	)			(490	)
Net debt			3,235				3,092				3,092				2,722				2,886				3,278

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:
			Q1 '19				2018				Q4 '18				Q3 '18				Q2 '18				Q1 '18				Income Statement Classification
			(In $ millions)
Plant/office closures			3				19				16				—				3				—				Cost of sales / Other charges (gains), net
Mergers and acquisitions			3				33				6				3				11				13				Cost of sales / SG&A
Actuarial (gain) loss on pension and postretirement plans			—				166				166				—				—				—				Cost of sales / SG&A / Non-operating pension and other postretirement employee benefit expense (income)
Restructuring			(1	)			9				4				2				3				—				SG&A / Other charges (gains), net / Non-operating pension and other postretirement employee benefit expense (income)
Other			2				1				—				—				1				—				Cost of sales / SG&A / Other charges (gains), net
Certain Items attributable to Celanese Corporation			7				228				192				5				18				13

Table 9
Return on Invested Capital (Adjusted) - Presentation of a Non-GAAP Measure - Unaudited
											2018
											(In $ millions, except percentages)
Net earnings (loss) attributable to Celanese Corporation											1,207
Adjusted EBIT (Table 1)											1,852
Adjusted effective tax rate (Table 3a)											14	%
Adjusted EBIT tax effected											1,593
			2018				2017				Average
			(In $ millions, except percentages)
Short-term borrowings and current installments of long-term debt - third parties and affiliates			561				326				444
Long-term debt, net of unamortized deferred financing costs			2,970				3,315				3,143
Celanese Corporation stockholders' equity			2,984				2,887				2,936
Invested capital											6,523
Return on invested capital (adjusted)											24.4	%
Net earnings (loss) attributable to Celanese Corporation as a percentage of invested capital											18.5	%

View source version on businesswire.com: https://www.businesswire.com/news/home/20190422005532/en/

Investor Relations
Chuck Kyrish
Phone: +1 972 443 4574
Chuck.Kyrish@celanese.com

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

Media - Europe
Jens Kurth
Phone: +49(0)69 45009 1574
J.Kurth@celanese.com

Source: Celanese Corporation