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Celanese Corporation (NYSE: CE), a global chemical and specialty materials company, today reported GAAP diluted earnings per share of $6.89 and adjusted earnings per share of $9.53 for 2019. Net sales for the full year were $6.3 billion, as price and volume declined by 7 percent and 3 percent, respectively, from 2018. Despite weak demand and broad industry destocking across 2019, all businesses executed controllable actions centered on capturing new business opportunities, executing productivity initiatives, and deploying high-return capital to deliver solid performance. The Company generated robust operating cash flow of $1.5 billion and free cash flow of $1.1 billion. Celanese returned a record $1.3 billion in cash to shareholders during 2019, including $300 million in dividends and $1.0 billion in share repurchases. During the year, the Company repurchased 7 percent of total shares outstanding. Based primarily on further controllable actions including productivity initiatives and capital deployment, the Company expects to reach 2020 adjusted earnings of approximately $11 per share despite no assumed meaningful improvement from 2019 market conditions.

Celanese also recorded fourth quarter GAAP diluted earnings per share of $0.35 and adjusted earnings per share of $1.99. The difference between GAAP and adjusted earnings per share for the quarter was due primarily to Certain Items including a pension mark to market adjustment, a reserve related to the European Commission investigation, and the incident at Clear Lake.

"Against significant challenges throughout 2019, underpinned by disappointing global demand, our teams demonstrated great resiliency in delivering the second strongest performance in Celanese history. In this environment, our heightened focus on the factors within our control, including a robust productivity program and high-return capital deployment, has allowed us to weather these challenges and remain positioned to deliver on our long-term growth ambitions in 2020 and beyond," said Lori Ryerkerk, chief executive officer.

 

Fourth Quarter 2019 and Full Year 2019 Financial Highlights:

 

 

Three Months Ended

 

December 31,
2019

 

September 30,
2019

 

December 31,
2018

 

(unaudited)

 

(In $ millions, except per share data)

Net Sales

 

 

 

 

 

Engineered Materials

539

 

 

591

 

 

622

 

Acetate Tow

148

 

 

158

 

 

161

 

Acetyl Chain

771

 

 

867

 

 

936

 

Intersegment Eliminations

(26

)

 

(30

)

 

(30

)

Total

1,432

 

 

1,586

 

 

1,689

 

 

 

Year Ended
December 31,

 

2019

 

2018

 

(unaudited)

 

(In $ millions, except per share data)

Net Sales

 

 

 

Engineered Materials

2,386

 

 

2,593

 

Acetate Tow

636

 

 

649

 

Acetyl Chain

3,392

 

 

4,042

 

Intersegment Eliminations

(117

)

 

(129

)

Total

6,297

 

 

7,155

 

 

 

Three Months Ended

 

December 31,
2019

 

September 30,
2019

 

December 31,
2018

 

(unaudited)

 

(In $ millions, except per share data)

Operating Profit (Loss)

 

 

 

 

 

Engineered Materials

88

 

 

111

 

 

95

 

Acetate Tow

22

 

 

34

 

 

19

 

Acetyl Chain

108

 

 

180

 

 

211

 

Other Activities

(150

)

 

(65

)

 

(66

)

Total

68

 

 

260

 

 

259

 

 

Year Ended
December 31,

 

2019

 

2018

 

(unaudited)

 

(In $ millions, except per share data)

Operating Profit (Loss)

 

 

 

Engineered Materials

446

 

 

460

 

Acetate Tow

52

 

 

130

 

Acetyl Chain

678

 

 

1,024

 

Other Activities

(342

)

 

(280

)

Total

834

 

 

1,334

 

 

Three Months Ended

 

December 31,
2019

 

September 30,
2019

 

December 31,
2018

 

(unaudited)

 

(In $ millions, except per share data)

Net Earnings (Loss)

45

 

 

265

 

 

101

 

 

 

 

 

 

 

Adjusted EBIT(1)

 

 

 

 

 

Engineered Materials

136

 

 

154

 

 

150

 

Acetate Tow

54

 

 

71

 

 

53

 

Acetyl Chain

144

 

 

191

 

 

215

 

Other Activities

(31

)

 

(40

)

 

(25

)

Total

303

 

 

376

 

 

393

 

 

 

 

 

 

 

Equity Earnings and Dividend Income, Other Income (Expense)

 

 

 

 

 

Engineered Materials

45

 

 

41

 

 

49

 

Acetate Tow

24

 

 

27

 

 

25

 

 

 

 

 

 

 

Operating EBITDA(1)

387

 

 

458

 

 

471

 

Diluted EPS - continuing operations

$

0.35

 

 

$

2.17

 

 

$

0.73

 

Diluted EPS - total

$

0.36

 

 

$

2.13

 

 

$

0.75

 

Adjusted EPS(1)

$

1.99

 

 

$

2.53

 

 

$

2.38

 

 

 

 

 

 

 

Net cash provided by (used in) investing activities

(168

)

 

(82

)

 

(98

)

Net cash provided by (used in) financing activities

(199

)

 

(299

)

 

(526

)

Net cash provided by (used in) operating activities

326

 

 

397

 

 

363

 

Free cash flow(1)

179

 

 

315

 

 

261

 

______________________________

(1)

 

See "Non-US GAAP Financial Measures" below.

 

 

Year Ended
December 31,

 

2019

 

2018

 

(unaudited)

 

(In $ millions, except per share data)

Net Earnings (Loss)

858

 

 

1,213

 

 

 

 

 

Adjusted EBIT(1)

 

 

 

Engineered Materials

621

 

 

694

 

Acetate Tow

268

 

 

273

 

Acetyl Chain

727

 

 

1,022

 

Other Activities

(140

)

 

(137

)

Total

1,476

 

 

1,852

 

 

 

 

 

Equity Earnings and Dividend Income, Other Income (Expense)

 

 

 

Engineered Materials

168

 

 

219

 

Acetate Tow

112

 

 

116

 

 

 

 

 

Operating EBITDA(1)

1,805

 

 

2,168

 

Diluted EPS - continuing operations

$

6.89

 

 

$

8.95

 

Diluted EPS - total

$

6.84

 

 

$

8.91

 

Adjusted EPS(1)

$

9.53

 

 

$

11.00

 

 

 

 

 

Net cash provided by (used in) investing activities

(493

)

 

(507

)

Net cash provided by (used in) financing activities

(935

)

 

(1,165

)

Net cash provided by (used in) operating activities

1,454

 

 

1,558

 

Free cash flow(1)

1,074

 

 

1,198

 

______________________________

(1)

 

See "Non-US GAAP Financial Measures" below.

Full Year Business Segment Overview

Engineered Materials

Engineered Materials generated net sales of $2.4 billion, down 8 percent over 2018 due to a 5 percent decline in volume and a 3 percent currency headwind. Continued success in execution of the project pipeline model to deliver over 4,000 wins in the year and targeted commercial actions offset the majority of volume and price headwinds in 2019, which resulted from broad demand softness, industry destocking, and a seasonally weaker than anticipated fourth quarter. The business delivered GAAP operating profit of $446 million and adjusted EBIT of $621 million. While GAAP operating profit of the business fell 3 percent year over year, adjusted EBIT fell 11 percent, primarily due to lower than expected affiliate earnings which declined 23 percent over the same period. Execution in the base business of engineered materials, excluding affiliates, offset most of the demand headwinds while expanding full year adjusted EBIT margins to 19 percent in the base business, 70 basis points higher than 2018.

Acetyl Chain

The Acetyl Chain delivered 2019 net sales of $3.4 billion, a decline of 16 percent over last year. Volume in 2019 was down 1 percent over the prior year as the business offset most of the impact of the outage at Clear Lake by flexing its global production network and sourcing capabilities. Price declined 13 percent off 2018 levels as global industry utilization fell due to demand softness and limited outage and curtailment activity, particularly in acetic acid. Despite significant pricing headwinds, the Acetyl Chain continued to generate elevated foundational earnings with GAAP operating profit of $678 million and adjusted EBIT of $727 million, at margins of 20 percent or higher. Throughout 2019, the Acetyl Chain pivoted downstream from acetic acid into VAM and emulsions, delivering 8 percent more tonnage down the acetyl value chain. Additionally, the business dynamically optimized the regional sales mix in 2019 to reduce sales exposure to Asia and increase volume sold in the Western Hemisphere where pricing fell less sharply. By exercising the full breadth of flexibility across its global network and integrated product chain, the business has delivered multiple years of sustained profitability by capturing the highest value commercial opportunities.

Acetate Tow

Acetate Tow recorded GAAP operating profit of $52 million and adjusted EBIT of $268 million for 2019. Full year net sales of $636 million reflected pricing that was flat year over year and volume that fell 2 percent due to continued gradual decline in secular demand. Despite declining demand, the business continues to display a stabilized earnings profile due to contributions from productivity initiatives. Dividends from affiliates were $112 million in 2019, consistent with the prior year.

Recent Highlights

  • Signed an agreement to acquire Elotex, a leading manufacturer of redispersible polymer powders, further extending the Acetyl Chain integrated product chain and expanding derivatization optionality within its global network.
  • Commissioned two new Engineered Materials compounding lines in Suzhou and Nanjing, China to support new business in the fastest growing region of the world.
  • Initiated preparations to consolidate Engineered Materials compounding operations at the Shelby, North Carolina site to other existing facilities by the middle of 2020. Completed 2019 site consolidations at Castel Goffredo, Italy and Lebanon, Tennessee as part of the ongoing strategic optimization of the Engineered Materials global footprint.
  • Announced a strategic expansion of the global emulsion polymers production network including low-capital expansion and debottlenecking projects in Nanjing, China and Geleen, Netherlands.
  • Delivered over 4,000 Engineered Materials project commercializations in 2019 with fourth quarter wins in targeted applications of medical and pharma, electric vehicles and 5G electronics. Examples include the center console on a highly anticipated electric vehicle currently in development and an antenna application with a leading global smartphone manufacturer.
  • Signed a comprehensive strategic cooperation and development agreement with Oriental Yuhong to further promote the sustainable development of waterproofing technologies based on vinyl emulsion technology.
  • Announced that the Acetyl Chain's ethylene-based VAM technology received the designation as a “Green Technology” in China for its low carbon emissions, low energy consumption, and low content of heavy components.

Fourth Quarter Business Segment Overview

Engineered Materials

Engineered Materials delivered fourth quarter net sales of $539 million, a 9 percent decline from the prior quarter due to a decline in sequential volume. Volume headwinds in the fourth quarter were more significant than anticipated primarily due to high seasonality in the Western Hemisphere that was not offset by any sequential revenue growth in Asia as in past years. Other unique dynamics further pressured volume in the quarter including reduced demand for products used in capital goods manufacturing and a slower than predicted ramp up following the resolution of the General Motors auto workers' strike. The business delivered fourth quarter GAAP operating profit of $88 million and adjusted EBIT of $136 million at margins of 16.3 percent and 25.2 percent, respectively. Pricing levels were maintained over the third quarter despite challenging demand dynamics as the segment preserved highest value business, resulting in higher margins than the same period last year. Affiliates contributed $45 million in earnings in the fourth quarter, a sequential improvement of $4 million.

Acetyl Chain

The Acetyl Chain recorded fourth quarter net sales of $771 million, driven by an 11 percent sequential decline in volume due primarily to normal winter seasonality and the impact of the Clear Lake incident. Fourth quarter GAAP operating profit of $108 million reflected an impact from the Clear Lake incident approaching $60 million. Adjusted EBIT of $144 million was impacted by the incident by approximately $20 million as the business worked to minimize lost volume and incremental sourcing costs. Repairs and restart of the Clear Lake carbon monoxide (CO) unit were completed in the middle of the fourth quarter and all production units on site are again operating at full rates. As fourth quarter industry pricing for acetic acid continued to deteriorate sequentially despite Clear Lake's limited supply to the industry, the business continued to pivot to VAM and emulsions where it placed 6 percent more tonnage downstream than the same period last year. By activating its global network in response to industry dynamics, the Acetyl Chain continued to deliver consistently elevated earnings performance in the fourth quarter, considering the unique impact of the Clear Lake incident and normal end of year seasonality.

Acetate Tow

Acetate Tow delivered GAAP operating profit of $22 million and adjusted EBIT of $54 million in the fourth quarter. Earnings in the quarter were consistent with the same period last year and down sequentially due to certain timing factors including affiliate dividends. Pricing remained stable year over year. Acetate Tow finalized the shutdown of its production facility at Ocotlán, Mexico in the fourth quarter contributing additional savings to support consistent earnings performance in 2020.

Cash Flow and Tax

Celanese generated 2019 operating cash flow of $1.5 billion and free cash flow of $1.1 billion. Capital expenditures in 2019 were $370 million, approximately $30 million higher than 2018 primarily due to the global acetic acid reconfiguration project. The Company returned a record $1.3 billion of cash to shareholders in 2019, including $1.0 billion in share repurchases and $300 million in cash dividends. Celanese completed $225 million in share repurchases in the fourth quarter with $1.2 billion remaining under the current share repurchase authorization as of year end. The effective US GAAP tax rate was 13 percent for 2019 compared to 19 percent for 2018, primarily resulting from a change in sourcing of US earnings between domestic and foreign sources, and new treasury guidance issued in the fourth quarter and the associated impact to projected foreign tax credit utilization and release of valuation allowances in the year. The tax rate for adjusted earnings per share was 13 percent for 2019, 1 percent lower year over year, due to the same factors impacting foreign tax credits.

Outlook

"As demand levels in the fourth quarter were softer than anticipated, we do not expect any meaningful improvement in the demand landscape across 2020 versus 2019. We are challenging our organization to offset significant incremental turnaround expenses in the year to reach 2020 adjusted earnings of $11 per share driven by factors within our control. Adjusted earnings per share in 2020 should be back half loaded as a result of cumulative returns from productivity and capital deployment as well as $70 to $80 million of turnaround expense in the Acetyl Chain and Engineered Materials occurring almost entirely in the first half. Our teams are hard at work executing on countless projects and initiatives at all levels of the organization that will be critical in delivering this growth target," said Lori Ryerkerk, chief executive officer.

The Company is unable to reconcile forecasted adjusted earnings per share growth to US GAAP diluted earnings per share without unreasonable efforts because a forecast of Certain Items, such as mark-to-market pension gains/losses, is not practical. The Company's prepared remarks related to the fourth quarter and full year results will be posted on its website at investors.celanese.com under Financial Information/Financial Document Library after market close on January 30, 2020. Information about Non-US GAAP measures is included in a Non-US GAAP Financial Measures and Supplemental Information document posted on our website. 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 2019 net sales of $6.3 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.
  • 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 30, 2020 and also available on our website at investors.celanese.com under Financial Information/Financial Document Library.

Results Unaudited

The results in this document, together with the adjustments made to present the results on a comparable basis, have not been audited and are based on internal financial data furnished to management. Quarterly results should not be taken as an indication of the results of operations to be reported for any subsequent period or for the full fiscal year.

Supplemental Information

Additional information about our prior period performance is included in our Quarterly Reports on Form 10-Q and in our Non-US GAAP Financial Measures and Supplemental Information document.

 

Consolidated Statements of Operations - Unaudited

 

 

Three Months Ended

 

December 31,
2019

 

September 30,
2019

 

December 31,
2018

 

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

Net sales

1,432

 

 

1,586

 

 

1,689

 

Cost of sales

(1,116

)

 

(1,172

)

 

(1,269

)

Gross profit

316

 

 

414

 

 

420

 

Selling, general and administrative expenses

(125

)

 

(120

)

 

(134

)

Amortization of intangible assets

(6

)

 

(6

)

 

(6

)

Research and development expenses

(17

)

 

(17

)

 

(18

)

Other (charges) gains, net

(102

)

 

(7

)

 

 

Foreign exchange gain (loss), net

2

 

 

(1

)

 

(2

)

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

 

 

(3

)

 

(1

)

Operating profit (loss)

68

 

 

260

 

 

259

 

Equity in net earnings (loss) of affiliates

48

 

 

45

 

 

53

 

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

(71

)

 

17

 

 

(139

)

Interest expense

(28

)

 

(27

)

 

(30

)

Refinancing expense

 

 

 

 

(1

)

Interest income

2

 

 

1

 

 

2

 

Dividend income - equity investments

24

 

 

27

 

 

25

 

Other income (expense), net

(2

)

 

 

 

5

 

Earnings (loss) from continuing operations before tax

41

 

 

323

 

 

174

 

Income tax (provision) benefit

3

 

 

(53

)

 

(76

)

Earnings (loss) from continuing operations

44

 

 

270

 

 

98

 

Earnings (loss) from operation of discontinued operations

1

 

 

(6

)

 

4

 

Income tax (provision) benefit from discontinued operations

 

 

1

 

 

(1

)

Earnings (loss) from discontinued operations

1

 

 

(5

)

 

3

 

Net earnings (loss)

45

 

 

265

 

 

101

 

Net (earnings) loss attributable to noncontrolling interests

(2

)

 

(2

)

 

(2

)

Net earnings (loss) attributable to Celanese Corporation

43

 

 

263

 

 

99

 

Amounts attributable to Celanese Corporation

 

 

 

 

 

Earnings (loss) from continuing operations

42

 

 

268

 

 

96

 

Earnings (loss) from discontinued operations

1

 

 

(5

)

 

3

 

Net earnings (loss)

43

 

 

263

 

 

99

 

Earnings (loss) per common share - basic

 

 

 

 

 

Continuing operations

0.35

 

 

2.18

 

 

0.73

 

Discontinued operations

0.01

 

 

(0.04

)

 

0.02

 

Net earnings (loss) - basic

0.36

 

 

2.14

 

 

0.75

 

Earnings (loss) per common share - diluted

 

 

 

 

 

Continuing operations

0.35

 

 

2.17

 

 

0.73

 

Discontinued operations

0.01

 

 

(0.04

)

 

0.02

 

Net earnings (loss) - diluted

0.36

 

 

2.13

 

 

0.75

 

Weighted average shares (in millions)

 

 

 

 

 

Basic

120.3

 

 

122.7

 

 

131.2

 

Diluted

120.9

 

 

123.3

 

 

132.1

 

 

Consolidated Statements of Operations - Unaudited

 

 

Year Ended December 31,

 

2019

 

2018

 

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

Net sales

6,297

 

 

7,155

 

Cost of sales

(4,691

)

 

(5,183

)

Gross profit

1,606

 

 

1,972

 

Selling, general and administrative expenses

(483

)

 

(546

)

Amortization of intangible assets

(24

)

 

(24

)

Research and development expenses

(67

)

 

(72

)

Other (charges) gains, net

(203

)

 

9

 

Foreign exchange gain (loss), net

7

 

 

 

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

(2

)

 

(5

)

Operating profit (loss)

834

 

 

1,334

 

Equity in net earnings (loss) of affiliates

182

 

 

233

 

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

(20

)

 

(62

)

Interest expense

(115

)

 

(125

)

Refinancing expense

(4

)

 

(1

)

Interest income

6

 

 

6

 

Dividend income - equity investments

113

 

 

117

 

Other income (expense), net

(8

)

 

8

 

Earnings (loss) from continuing operations before tax

988

 

 

1,510

 

Income tax (provision) benefit

(124

)

 

(292

)

Earnings (loss) from continuing operations

864

 

 

1,218

 

Earnings (loss) from operation of discontinued operations

(8

)

 

(5

)

Income tax (provision) benefit from discontinued operations

2

 

 

 

Earnings (loss) from discontinued operations

(6

)

 

(5

)

Net earnings (loss)

858

 

 

1,213

 

Net (earnings) loss attributable to noncontrolling interests

(6

)

 

(6

)

Net earnings (loss) attributable to Celanese Corporation

852

 

 

1,207

 

Amounts attributable to Celanese Corporation

 

 

 

Earnings (loss) from continuing operations

858

 

 

1,212

 

Earnings (loss) from discontinued operations

(6

)

 

(5

)

Net earnings (loss)

852

 

 

1,207

 

Earnings (loss) per common share - basic

 

 

 

Continuing operations

6.93

 

 

9.03

 

Discontinued operations

(0.05

)

 

(0.04

)

Net earnings (loss) - basic

6.88

 

 

8.99

 

Earnings (loss) per common share - diluted

 

 

 

Continuing operations

6.89

 

 

8.95

 

Discontinued operations

(0.05

)

 

(0.04

)

Net earnings (loss) - diluted

6.84

 

 

8.91

 

Weighted average shares (in millions)

 

 

 

Basic

123.9

 

 

134.3

 

Diluted

124.7

 

 

135.4

 

 

Consolidated Balance Sheets - Unaudited

 

 

As of December 31,

 

2019

 

2018

 

(In $ millions)

ASSETS

 

 

 

Current Assets

 

 

 

Cash and cash equivalents

463

 

 

439

 

Trade receivables - third party and affiliates, net

850

 

 

1,017

 

Non-trade receivables, net

331

 

 

301

 

Inventories

1,038

 

 

1,046

 

Marketable securities

40

 

 

31

 

Other assets

43

 

 

40

 

Total current assets

2,765

 

 

2,874

 

Investments in affiliates

975

 

 

979

 

Property, plant and equipment, net

3,713

 

 

3,719

 

Operating lease right-of-use assets

203

 

 

 

Deferred income taxes

96

 

 

84

 

Other assets

338

 

 

290

 

Goodwill

1,074

 

 

1,057

 

Intangible assets, net

312

 

 

310

 

Total assets

9,476

 

 

9,313

 

LIABILITIES AND EQUITY

 

 

 

Current Liabilities

 

 

 

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

496

 

 

561

 

Trade payables - third party and affiliates

780

 

 

819

 

Other liabilities

461

 

 

343

 

Income taxes payable

17

 

 

56

 

Total current liabilities

1,754

 

 

1,779

 

Long-term debt, net of unamortized deferred financing costs

3,409

 

 

2,970

 

Deferred income taxes

257

 

 

255

 

Uncertain tax positions

165

 

 

158

 

Benefit obligations

589

 

 

564

 

Operating lease liabilities

181

 

 

 

Other liabilities

223

 

 

208

 

Commitments and Contingencies

 

 

 

Stockholders' Equity

 

 

 

Treasury stock, at cost

(3,846

)

 

(2,849

)

Additional paid-in capital

254

 

 

233

 

Retained earnings

6,399

 

 

5,847

 

Accumulated other comprehensive income (loss), net

(300

)

 

(247

)

Total Celanese Corporation stockholders' equity

2,507

 

 

2,984

 

Noncontrolling interests

391

 

 

395

 

Total equity

2,898

 

 

3,379

 

Total liabilities and equity

9,476

 

 

9,313

 

 

Non-US GAAP Financial Measures and Supplemental Information

January 30, 2020

In this document, the terms the "Company," "we" and "our" refer to Celanese Corporation and its subsidiaries on a consolidated basis.

Purpose

The purpose of this document is to provide information of interest to investors, analysts and other parties including supplemental financial information and reconciliations and other information concerning our use of non-US GAAP financial measures. This document is updated quarterly.

Presentation

This document presents the Company's three business segments, Engineered Materials, Acetate Tow and Acetyl Chain.

Use of Non-US GAAP Financial Measures

From time to time, management may publicly disclose certain numerical "non-GAAP financial measures" in the course of our earnings releases, financial presentations, earnings conference calls, investor and analyst meetings and otherwise. For these purposes, the Securities and Exchange Commission ("SEC") defines a "non-GAAP financial measure" as a numerical measure of historical or future financial performance, financial position or cash flows that excludes amounts, or is subject to adjustments that effectively exclude amounts, included in the most directly comparable measure calculated and presented in accordance with US GAAP, and vice versa for measures that include amounts, or are subject to adjustments that effectively include amounts, that are excluded from the most directly comparable US GAAP measure so calculated and presented. For these purposes, "GAAP" refers to generally accepted accounting principles in the United States.

Non-GAAP financial measures disclosed by management are provided as additional information to investors, analysts and other parties because the Company believes them to be important supplemental measures for assessing our financial and operating results and as a means to evaluate our financial condition and period-to-period comparisons. These non-GAAP financial measures should be viewed as supplemental to, and should not be considered in isolation or as alternatives to, net earnings (loss), operating profit (loss), operating margin, cash flow from operating activities (together with cash flow from investing and financing activities), earnings per share or any other US GAAP financial measure. These non-GAAP financial measures should be considered within the context of our complete audited and unaudited financial results for the given period, which are available on the Financial Information/Financial Document Library page of our website, investors.celanese.com. The definition and method of calculation of the non-GAAP financial measures used herein may be different from other companies' methods for calculating measures with the same or similar titles. Investors, analysts and other parties should understand how another company calculates such non-GAAP financial measures before comparing the other company's non-GAAP financial measures to any of our own. These non-GAAP financial measures may not be indicative of the historical operating results of the Company nor are they intended to be predictive or projections of future results.

Pursuant to the requirements of SEC Regulation G, whenever we refer to a non-GAAP financial measure, we will also present in this document, in the presentation itself or on a Form 8-K in connection with the presentation on the Financial Information/Financial Document Library page of our website, investors.celanese.com, to the extent practicable, the most directly comparable financial measure calculated and presented in accordance with GAAP, along with a reconciliation of the differences between the non-GAAP financial measure we reference and such comparable GAAP financial measure.

This document includes definitions and reconciliations of non-GAAP financial measures used from time to time by the Company.

Specific Measures Used

This document provides information about the following non-GAAP measures: adjusted EBIT, adjusted EBIT margin, operating EBITDA, operating EBITDA margin, operating profit (loss) attributable to Celanese Corporation, adjusted earnings per share, net debt, free cash flow and return on invested capital (adjusted). The most directly comparable financial measure presented in accordance with US GAAP in our consolidated financial statements for adjusted EBIT and operating EBITDA is net earnings (loss) attributable to Celanese Corporation; for adjusted EBIT margin and operating EBITDA margin is operating margin; for operating profit (loss) attributable to Celanese Corporation is operating profit (loss); for adjusted earnings per share is earnings (loss) from continuing operations attributable to Celanese Corporation per common share-diluted; for net debt is total debt; for free cash flow is net cash provided by (used in) operations; and for return on invested capital (adjusted) is net earnings (loss) attributable to Celanese Corporation divided by the sum of the average of beginning and end of the year short- and long-term debt and Celanese Corporation stockholders' equity.

Definitions

  • Adjusted EBIT is a performance measure used by the Company and is defined by the Company as net earnings (loss) attributable to Celanese Corporation, plus (earnings) loss from discontinued operations, less interest income, plus interest expense, plus refinancing expense and taxes, and further adjusted for Certain Items (refer to Table 8). We believe that adjusted EBIT provides transparent and useful information to management, investors, analysts and other parties in evaluating and assessing our primary operating results from period-to-period after removing the impact of unusual, non-operational or restructuring-related activities that affect comparability. Our management recognizes that adjusted EBIT has inherent limitations because of the excluded items. Adjusted EBIT is one of the measures management uses for planning and budgeting, monitoring and evaluating financial and operating results and as a performance metric in the Company's incentive compensation plan. We do not provide reconciliations for adjusted EBIT on a forward-looking basis (including those contained in this document) when we are unable to provide a meaningful or accurate calculation or estimation of reconciling items and the information is not available without unreasonable effort. This is due to the inherent difficulty of forecasting the timing and amount of Certain Items, such as mark-to-market pension gains and losses, that have not yet occurred, are out of our control and/or cannot be reasonably predicted. For the same reasons, we are unable to address the probable significance of the unavailable information. Adjusted EBIT margin is defined by the Company as adjusted EBIT divided by net sales. Adjusted EBIT margin has the same uses and limitations as Adjusted EBIT.
  • Operating EBITDA is a performance measure used by the Company and is defined by the Company as net earnings (loss) attributable to Celanese Corporation, plus (earnings) loss from discontinued operations, less interest income, plus interest expense, plus refinancing expense, taxes and depreciation and amortization, and further adjusted for Certain Items, which Certain Items include accelerated depreciation and amortization expense. Operating EBITDA is equal to adjusted EBIT plus depreciation and amortization. We believe that Operating EBITDA provides transparent and useful information to investors, analysts and other parties in evaluating our operating performance relative to our peer companies. Operating EBITDA margin is defined by the Company as Operating EBITDA divided by net sales. Operating EBITDA margin has the same uses and limitations as Operating EBITDA.
  • Operating profit (loss) attributable to Celanese Corporation is defined by the Company as operating profit (loss), less earnings (loss) attributable to noncontrolling interests ("NCI"). We believe that operating profit (loss) attributable to Celanese Corporation provides transparent and useful information to management, investors, analysts and other parties in evaluating our core operational performance. Operating margin attributable to Celanese Corporation is defined by the Company as operating profit (loss) attributable to Celanese Corporation divided by net sales. Operating margin attributable to Celanese Corporation has the same uses and limitations as Operating profit (loss) attributable to Celanese Corporation.
  • Adjusted earnings per share is a performance measure used by the Company and is defined by the Company as earnings (loss) from continuing operations attributable to Celanese Corporation, adjusted for income tax (provision) benefit, Certain Items, and refinancing and related expenses, divided by the number of basic common shares and dilutive restricted stock units and stock options calculated using the treasury method. We believe that adjusted earnings per share provides transparent and useful information to management, investors, analysts and other parties in evaluating and assessing our primary operating results from period-to-period after removing the impact of the above stated items that affect comparability and as a performance metric in the Company's incentive compensation plan. We do not provide reconciliations for adjusted earnings per share on a forward-looking basis (including those contained in this document) when we are unable to provide a meaningful or accurate calculation or estimation of reconciling items and the information is not available without unreasonable effort. This is due to the inherent difficulty of forecasting the timing and amount of Certain Items, such as mark-to-market pension gains and losses, that have not yet occurred, are out of our control and/or cannot be reasonably predicted. For the same reasons, we are unable to address the probable significance of the unavailable information.

Note: The income tax expense (benefit) on Certain Items ("Non-GAAP adjustments") is determined using the applicable rates in the taxing jurisdictions in which the Non-GAAP adjustments occurred and includes both current and deferred income tax expense (benefit). The income tax rate used for adjusted earnings per share approximates the midpoint in a range of forecasted tax rates for the year. This range may include certain partial or full-year forecasted tax opportunities and related costs, where applicable, and specifically excludes changes in uncertain tax positions, discrete recognition of GAAP items on a quarterly basis, other pre-tax items adjusted out of our GAAP earnings for adjusted earnings per share purposes and changes in management's assessments regarding the ability to realize deferred tax assets for GAAP. In determining the adjusted earnings per share tax rate, we reflect the impact of foreign tax credits when utilized, or expected to be utilized, absent discrete events impacting the timing of foreign tax credit utilization. We analyze this rate quarterly and adjust it if there is a material change in the range of forecasted tax rates; an updated forecast would not necessarily result in a change to our tax rate used for adjusted earnings per share. The adjusted tax rate is an estimate and may differ from the actual tax rate used for GAAP reporting in any given reporting period. Table 3a summarizes the reconciliation of our estimated GAAP effective tax rate to the adjusted tax rate. The estimated GAAP rate excludes discrete recognition of GAAP items due to our inability to forecast such items. As part of the year-end reconciliation, we will update the reconciliation of the GAAP effective tax rate to the adjusted tax rate for actual results.

  • Free cash flow is a liquidity measure used by the Company and is defined by the Company as net cash provided by (used in) operations, less capital expenditures on property, plant and equipment, and adjusted for capital contributions from or distributions to Mitsui & Co., Ltd. ("Mitsui") related to our methanol joint venture, Fairway Methanol LLC ("Fairway"). We believe that free cash flow provides useful information to management, investors, analysts and other parties in evaluating the Company's liquidity and credit quality assessment because it provides an indication of the long-term cash generating ability of our business. Although we use free cash flow as a measure to assess the liquidity generated by our business, the use of free cash flow has important limitations, including that free cash flow does not reflect the cash requirements necessary to service our indebtedness, lease obligations, unconditional purchase obligations or pension and postretirement funding obligations.
  • Net debt is defined by the Company as total debt less cash and cash equivalents. We believe that net debt provides useful information to management, investors, analysts and other parties in evaluating changes to the Company's capital structure and credit quality assessment.
  • Return on invested capital (adjusted) is defined by the Company as adjusted EBIT, tax effected using the adjusted tax rate, divided by the sum of the average of beginning and end of the year short- and long-term debt and Celanese Corporation stockholders' equity. We believe that return on invested capital (adjusted) provides useful information to management, investors, analysts and other parties in order to assess our income generation from the point of view of our stockholders and creditors who provide us with capital in the form of equity and debt and whether capital invested in the Company yields competitive returns.

Supplemental Information

Supplemental Information we believe to be of interest to investors, analysts and other parties includes the following:

  • Net sales for each of our business segments and the percentage increase or decrease in net sales attributable to price, volume, currency and other factors for each of our business segments.
  • Cash dividends received from our equity investments.
  • For those consolidated ventures in which the Company owns or is exposed to less than 100% of the economics, the outside stockholders' interests are shown as NCI. Beginning in 2014, this includes Fairway for which the Company's ownership percentage 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

 

2019

 

Q4 '19

 

Q3 '19

 

Q2 '19

 

Q1 '19

 

2018

 

Q4 '18

 

Q3 '18

 

Q2 '18

 

Q1 '18

 

(In $ millions)

Net earnings (loss) attributable to Celanese Corporation

852

 

 

43

 

 

263

 

 

209

 

 

337

 

 

1,207

 

 

99

 

 

401

 

 

344

 

 

363

 

(Earnings) loss from discontinued operations

6

 

 

(1

)

 

5

 

 

1

 

 

1

 

 

5

 

 

(3

)

 

6

 

 

 

 

2

 

Interest income

(6

)

 

(2

)

 

(1

)

 

(2

)

 

(1

)

 

(6

)

 

(2

)

 

(2

)

 

 

 

(2

)

Interest expense

115

 

 

28

 

 

27

 

 

29

 

 

31

 

 

125

 

 

30

 

 

30

 

 

32

 

 

33

 

Refinancing expense

4

 

 

 

 

 

 

4

 

 

 

 

1

 

 

1

 

 

 

 

 

 

 

Income tax provision (benefit)

124

 

 

(3

)

 

53

 

 

28

 

 

46

 

 

292

 

 

76

 

 

54

 

 

97

 

 

65

 

Certain Items attributable to Celanese Corporation (Table 8)

381

 

 

238

 

 

29

 

 

107

 

 

7

 

 

228

 

 

192

 

 

5

 

 

18

 

 

13

 

Adjusted EBIT

1,476

 

 

303

 

 

376

 

 

376

 

 

421

 

 

1,852

 

 

393

 

 

494

 

 

491

 

 

474

 

Depreciation and amortization expense(1)

329

 

 

84

 

 

82

 

 

82

 

 

81

 

 

316

 

 

78

 

 

77

 

 

82

 

 

79

 

Operating EBITDA

1,805

 

 

387

 

 

458

 

 

458

 

 

502

 

 

2,168

 

 

471

 

 

571

 

 

573

 

 

553

 

 

 

2019

 

Q4 '19

 

Q3 '19

 

Q2 '19

 

Q1 '19

 

2018

 

Q4 '18

 

Q3 '18

 

Q2 '18

 

Q1 '18

 

(In $ millions)

Engineered Materials

4

 

 

2

 

 

1

 

 

 

 

1

 

 

1

 

 

 

 

 

 

1

 

 

 

Acetate Tow

9

 

 

2

 

 

5

 

 

2

 

 

 

 

19

 

 

5

 

 

11

 

 

3

 

 

 

Acetyl Chain

10

 

 

3

 

 

6

 

 

 

 

1

 

 

7

 

 

5

 

 

2

 

 

 

 

 

Other Activities(2)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Accelerated depreciation and amortization expense

23

 

 

7

 

 

12

 

 

2

 

 

2

 

 

27

 

 

10

 

 

13

 

 

4

 

 

 

Depreciation and amortization expense(1)

329

 

 

84

 

 

82

 

 

82

 

 

81

 

 

316

 

 

78

 

 

77

 

 

82

 

 

79

 

Total depreciation and amortization expense

352

 

 

91

 

 

94

 

 

84

 

 

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

2019

 

Q4 '19

 

Q3 '19

 

Q2 '19

 

Q1 '19

 

2018

 

Q4 '18

 

Q3 '18

 

Q2 '18

 

Q1 '18

(In $ millions, except percentages)

Operating Profit (Loss) / Operating Margin
Engineered Materials

446

 

18.7

%

88

 

16.3

%

111

 

18.8

%

103

 

17.4

%

144

 

21.7

%

460

 

17.7

%

95

 

15.3

%

124

 

19.3

%

114

 

17.2

%

127

 

19.1

%

Acetate Tow

52

 

8.2

%

22

 

14.9

%

34

 

21.5

%

(44

)

(26.8

)%

40

 

24.1

%

130

 

20.0

%

19

 

11.8

%

26

 

16.5

%

39

 

24.1

%

46

 

27.4

%

Acetyl Chain(1)

678

 

20.0

%

108

 

14.0

%

180

 

20.8

%

188

 

21.7

%

202

 

22.7

%

1,024

 

25.3

%

211

 

22.5

%

287

 

28.5

%

273

 

26.0

%

253

 

24.1

%

Other Activities(2)

(342

)

(150

)

(65

)

(61

)

(66

)

(280

)

(66

)

(63

)

(68

)

(83

)

Total

834

 

13.2

%

68

 

4.7

%

260

 

16.4

%

186

 

11.7

%

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)

6

 

2

 

2

 

1

 

1

 

6

 

2

 

1

 

1

 

2

 

Operating Profit (Loss) Attributable to Celanese Corporation

828

 

13.1

%

66

 

4.6

%

258

 

16.3

%

185

 

11.6

%

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

446

 

18.7

%

88

 

16.3

%

111

 

18.8

%

103

 

17.4

%

144

 

21.7

%

460

 

17.7

%

95

 

15.3

%

124

 

19.3

%

114

 

17.2

%

127

 

19.1

%

Acetate Tow

52

 

8.2

%

22

 

14.9

%

34

 

21.5

%

(44

)

(26.8

)%

40

 

24.1

%

130

 

20.0

%

19

 

11.8

%

26

 

16.5

%

39

 

24.1

%

46

 

27.4

%

Acetyl Chain(1)

672

 

19.8

%

106

 

13.7

%

178

 

20.5

%

187

 

21.6

%

201

 

22.6

%

1,018

 

25.2

%

209

 

22.3

%

286

 

28.4

%

272

 

25.9

%

251

 

23.9

%

Other Activities(2)

(342

)

(150

)

(65

)

(61

)

(66

)

(280

)

(66

)

(63

)

(68

)

(83

)

Total

828

 

13.1

%

66

 

4.6

%

258

 

16.3

%

185

 

11.6

%

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

168

 

45

 

41

 

36

 

46

 

219

 

(3)

 

49

 

62

 

54

 

54

 

Acetate Tow

112

 

24

 

27

 

29

 

32

 

116

 

25

 

26

 

33

 

32

 

Acetyl Chain

5

 

1

 

2

 

1

 

1

 

8

 

1

 

2

 

3

 

2

 

Other Activities(2)

2

 

2

 

1

 

(1

)

15

 

8

 

1

 

6

 

Total

287

 

70

 

72

 

67

 

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)

(20

)

(71

)

17

 

17

 

17

 

(62

)

(139

)

25

 

26

 

26

 

Total

(20

)

(71

)

17

 

17

 

17

 

(62

)

(139

)

25

 

26

 

26

 

Certain Items Attributable to Celanese Corporation (Table 8)
Engineered Materials

7

 

3

 

2

 

9

 

(7

)

15

 

6

 

1

 

7

 

1

 

Acetate Tow

104

 

8

 

10

 

86

 

27

 

9

 

13

 

5

 

Acetyl Chain

50

 

37

 

11

 

1

 

1

 

(4

)

5

 

(11

)

2

 

Other Activities(2)

220

 

190

 

6

 

11

 

13

 

190

 

172

 

2

 

4

 

12

 

Total

381

 

238

 

29

 

107

 

7

 

228

 

192

 

5

 

18

 

13

 

Adjusted EBIT / Adjusted EBIT Margin
Engineered Materials

621

 

26.0

%

136

 

25.2

%

154

 

26.1

%

148

 

25.0

%

183

 

27.6

%

694

 

26.8

%

150

 

24.1

%

187

 

29.1

%

175

 

26.4

%

182

 

27.4

%

Acetate Tow

268

 

42.1

%

54

 

36.5

%

71

 

44.9

%

71

 

43.3

%

72

 

43.4

%

273

 

42.1

%

53

 

32.9

%

65

 

41.1

%

77

 

47.5

%

78

 

46.4

%

Acetyl Chain

727

 

21.4

%

144

 

18.7

%

191

 

22.0

%

189

 

21.8

%

203

 

22.8

%

1,022

 

25.3

%

215

 

23.0

%

277

 

27.5

%

277

 

26.4

%

253

 

24.1

%

Other Activities(2)

(140

)

(31

)

(40

)

(32

)

(37

)

(137

)

(25

)

(35

)

(38

)

(39

)

Total

1,476

 

23.4

%

303

 

21.2

%

376

 

23.7

%

376

 

23.6

%

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.)

 

2019

 

Q4 '19

 

Q3 '19

 

Q2 '19

 

Q1 '19

 

2018

 

Q4 '18

 

Q3 '18

 

Q2 '18

 

Q1 '18

(In $ millions, except percentages)
Depreciation and Amortization Expense(1)
Engineered Materials

127

 

33

 

32

 

31

 

31

 

125

 

30

 

31

 

32

32

 

Acetate Tow

36

 

8

 

9

 

9

 

10

 

39

 

9

 

10

 

10

10

 

Acetyl Chain

151

 

39

 

37

 

38

 

37

 

141

 

36

 

34

 

36

35

 

Other Activities(2)

15

 

4

 

4

 

4

 

3

 

11

 

3

 

2

 

4

2

 

Total

329

 

84

 

82

 

82

 

81

 

316

 

78

 

77

 

82

79

 

Operating EBITDA / Operating EBITDA Margin

 

Engineered Materials

748

 

31.3

%

169

 

31.4

%

186

 

31.5

%

179

 

30.2

%

214

 

32.3

%

819

 

31.6

%

180

 

28.9

%

218

 

34.0

%

207

31.2

%

214

 

32.2

%

Acetate Tow

304

 

47.8

%

62

 

41.9

%

80

 

50.6

%

80

 

48.8

%

82

 

49.4

%

312

 

48.1

%

62

 

38.5

%

75

 

47.5

%

87

53.7

%

88

 

52.4

%

Acetyl Chain

878

 

25.9

%

183

 

23.7

%

228

 

26.3

%

227

 

26.2

%

240

 

27.0

%

1,163

 

28.8

%

251

 

26.8

%

311

 

30.9

%

313

29.8

%

288

 

27.4

%

Other Activities(2)

(125

)

(27

)

(36

)

(28

)

(34

)

(126

)

(22

)

(33

)

(34

)

(37

)

Total

1,805

 

28.7

%

387

 

27.0

%

458

 

28.9

%

458

 

28.8

%

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

2019

 

 

Q4 '19

 

Q3 '19

 

Q2 '19

 

Q1 '19

 

2018

 

Q4 '18

 

Q3 '18

 

Q2 '18

 

Q1 '18

 

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

858

 

6.89

42

 

0.35

268

 

2.17

210

 

1.67

338

 

2.64

1,212

 

8.95

96

 

0.73

407

 

3.00

344

 

2.52

365

 

2.68

Income tax provision (benefit)

124

 

(3

)

53

 

28

 

46

 

292

 

76

 

54

 

97

 

65

 

Earnings (loss) from continuing operations before tax

982

 

39

 

321

 

238

 

384

 

1,504

 

172

 

461

 

441

 

430

 

Certain Items attributable to Celanese Corporation (Table 8)

381

 

238

 

29

 

107

 

7

 

228

 

192

 

5

 

18

 

13

 

Refinancing and related expenses

4

 

4

 

1

 

1

 

Adjusted earnings (loss) from continuing operations before tax

1,367

 

277

 

350

 

349

 

391

 

1,733

 

365

 

466

 

459

 

443

 

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

(178

)

(36

)

(38

)

(49

)

(55

)

(243

)

(51

)

(65

)

(64

)

(62

)

Adjusted earnings (loss) from continuing operations(2)

1,189

 

9.53

241

 

1.99

312

 

2.53

300

 

2.38

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

123.9

 

120.3

 

122.7

 

125.3

 

127.5

 

134.3

 

131.2

 

134.5

 

135.6

 

135.9

 

Incremental shares attributable to equity awards

0.8

 

0.6

 

0.6

 

0.5

 

0.7

 

1.1

 

0.9

 

1

 

0.7

 

0.5

 

Total diluted shares

124.7

 

120.9

 

123.3

 

125.8

 

128.2

 

135.4

 

132.1

 

135.5

 

136.3

 

136.4

 

______________________________

(1)

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

 

2019

 

Q4 '19

 

Q3 '19

 

Q2 '19

 

Q1 '19

 

2018

 

Q4 '18

 

Q3 '18

 

Q2 '18

 

Q1 '18

 

(In percentages)

Adjusted effective tax rate

13

 

13

 

11

 

14

 

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)

Q4 '19 & 2019

 

16.7

 

 

6.5

 

Q4 '18 & 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

 

Actual

 

2019

 

2018

 

(In percentages)

US GAAP annual effective tax rate

13

 

 

19

 

Utilization of foreign tax credits

(3

)

 

 

Changes in valuation allowances, excluding impact of other charges and adjustments(1)

3

 

 

(5

)

Adjusted tax rate

13

 

 

14

 

______________________________
Note: As part of the year-end reconciliation, we updated the reconciliation of the GAAP effective tax rate for actual results.
(1)

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.

Table 4

Net Sales by Segment - Unaudited

 

2019

 

Q4 '19

 

Q3 '19

 

Q2 '19

 

Q1 '19

 

2018

 

Q4 '18

 

Q3 '18

 

Q2 '18

 

Q1 '18

 

(In $ millions)

Engineered Materials

2,386

 

 

539

 

 

591

 

 

593

 

 

663

 

 

2,593

 

 

622

 

 

642

 

 

664

 

 

665

 

Acetate Tow

636

 

 

148

 

 

158

 

 

164

 

 

166

 

 

649

 

 

161

 

 

158

 

 

162

 

 

168

 

Acetyl Chain

3,392

 

 

771

 

 

867

 

 

865

 

 

889

 

 

4,042

 

 

936

 

 

1,006

 

 

1,049

 

 

1,051

 

Intersegment eliminations(1)

(117

)

 

(26

)

 

(30

)

 

(30

)

 

(31

)

 

(129

)

 

(30

)

 

(35

)

 

(31

)

 

(33

)

Net sales

6,297

 

 

1,432

 

 

1,586

 

 

1,592

 

 

1,687

 

 

7,155

 

 

1,689

 

 

1,771

 

 

1,844

 

 

1,851

 

___________________________
(1)

Includes intersegment sales primarily related to the Acetyl Chain.

Table 4a

Factors Affecting Segment Net Sales Sequentially - Unaudited

Three Months Ended December 31, 2019 Compared to Three Months Ended September 30, 2019

 

Volume

 

Price

 

Currency

 

Other

 

Total

 

 

(In percentages)

 

Engineered Materials

(9

)

 

 

 

 

 

 

 

(9

)

 

Acetate Tow

(6

)

 

 

 

 

 

 

 

(6

)

 

Acetyl Chain

(11

)

 

 

 

 

 

 

 

(11

)

 

 

 

 

 

 

 

 

 

 

 

 

Total Company

(10

)

 

 

 

 

 

 

 

(10

)

 

Three Months Ended September 30, 2019 Compared to Three Months Ended June 30, 2019

 

Volume

 

Price

 

Currency

 

Other

 

Total

 

 

(In percentages)

 

Engineered Materials

2

 

 

(2

)

 

(1

)

 

 

 

(1

)

 

Acetate Tow

(2

)

 

(1

)

 

 

 

 

 

(3

)

 

Acetyl Chain

1

 

 

 

 

(1

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Company

2

 

 

(1

)

 

(1

)

 

 

 

 

 

Three Months Ended June 30, 2019 Compared to Three Months Ended March 31, 2019

 

Volume

 

Price

 

Currency

 

Other

 

Total

 

 

(In percentages)

 

Engineered Materials

(7

)

 

(3

)

 

(1

)

 

 

 

(11

)

 

Acetate Tow

(1

)

 

 

 

 

 

 

 

(1

)

 

Acetyl Chain

2

 

 

(4

)

 

(1

)

 

 

 

(3

)

 

 

 

 

 

 

 

 

 

 

 

 

Total Company

(2

)

 

(3

)

 

(1

)

 

 

 

(6

)

 

Three Months Ended March 31, 2019 Compared to Three Months Ended December 31, 2018

 

Volume

 

Price

 

Currency

 

Other

 

Total

 

 

(In percentages)

 

Engineered Materials

5

 

 

2

 

 

 

 

 

 

7

 

(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 December 31, 2019 Compared to Three Months Ended December 31, 2018

 

Volume

 

Price

 

Currency

 

Other

 

Total

 

(In percentages)

Engineered Materials

(9

)

 

(3

)

 

(1

)

 

 

 

(13

)

Acetate Tow

(8

)

 

 

 

 

 

 

 

(8

)

Acetyl Chain

(4

)

 

(13

)

 

(1

)

 

 

 

(18

)

 

 

 

 

 

 

 

 

 

 

Total Company

(6

)

 

(8

)

 

(1

)

 

 

 

(15

)

Three Months Ended September 30, 2019 Compared to Three Months Ended September 30, 2018

 

Volume

 

Price

 

Currency

 

Other

 

Total

 

(In percentages)

Engineered Materials

(4

)

 

(2

)

 

(2

)

 

 

 

(8

)

Acetate Tow

 

 

 

 

 

 

 

 

 

Acetyl Chain

6

 

 

(18

)

 

(2

)

 

 

 

(14

)

 

 

 

 

 

 

 

 

 

 

Total Company

2

 

 

(11

)

 

(2

)

 

1

 

 

(10

)

Three Months Ended June 30, 2019 Compared to Three Months Ended June 30, 2018

 

Volume

 

Price

 

Currency

 

Other

 

Total

 

(In percentages)

Engineered Materials

(8

)

 

 

 

(3

)

 

 

 

(11

)

Acetate Tow

1

 

 

1

 

 

(1

)

 

 

 

1

 

Acetyl Chain

(1

)

 

(14

)

 

(3

)

 

 

 

(18

)

 

 

 

 

 

 

 

 

 

 

Total Company

(3

)

 

(8

)

 

(3

)

 

 

 

(14

)

Three Months Ended March 31, 2019 Compared to Three Months Ended March 31, 2018

 

Volume

 

Price

 

Currency

 

Other

 

Total

 

(In percentages)

Engineered Materials

(3

)

 

7

 

 

(4

)

 

 

 

 

Acetate Tow

(1

)

 

 

 

 

 

 

 

(1

)

Acetyl Chain

(4

)

 

(8

)

 

(3

)

 

 

 

(15

)

 

 

 

 

 

 

 

 

 

 

Total Company

(3

)

 

(2

)

 

(4

)

 

 

 

(9

)

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, 2019 Compared to Year Ended December 31, 2018

 

Volume

 

Price

 

Currency

 

Other

 

Total

 

(In percentages)

Engineered Materials

(5

)

 

 

 

(3

)

 

 

 

(8

)

Acetate Tow

(2

)

 

 

 

 

 

 

 

(2

)

Acetyl Chain

(1

)

 

(13

)

 

(2

)

 

 

 

(16

)

 

 

 

 

 

 

 

 

 

 

Total Company

(3

)

 

(7

)

 

(2

)

 

 

 

(12

)

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

 

2019

 

Q4 '19

 

Q3 '19

 

Q2 '19

 

Q1 '19

 

2018

 

Q4 '18

 

Q3 '18

 

Q2 '18

 

Q1 '18

 

(In $ millions, except percentages)

Net cash provided by (used in) investing activities

(493

)

 

(168

)

 

(82

)

 

(66

)

 

(177

)

 

(507

)

 

(98

)

 

(78

)

 

(96

)

 

(235

)

Net cash provided by (used in) financing activities

(935

)

 

(199

)

 

(299

)

 

(307

)

 

(130

)

 

(1,165

)

 

(526

)

 

(383

)

 

(254

)

 

(2

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net cash provided by (used in) operating activities

1,454

 

 

326

 

 

397

 

 

424

 

 

307

 

 

1,558

 

 

363

 

 

467

 

 

585

 

 

143

 

Capital expenditures on property, plant and equipment

(370

)

 

(144

)

 

(82

)

 

(65

)

 

(79

)

 

(337

)

 

(93

)

 

(79

)

 

(79

)

 

(86

)

Capital (distributions to) contributions from NCI

(10

)

 

(3

)

 

 

 

(3

)

 

(4

)

 

(23

)

 

(9

)

 

(6

)

 

(6

)

 

(2

)

Free cash flow(1)(2)

1,074

 

 

179

 

 

315

 

 

356

 

 

224

 

 

1,198

 

 

261

 

 

382

 

 

500

 

 

55

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net sales

6,297

 

 

1,432

 

 

1,586

 

 

1,592

 

 

1,687

 

 

7,155

 

 

1,689

 

 

1,771

 

 

1,844

 

 

1,851

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Free cash flow as % of Net sales

17.1

%

 

12.5

%

 

19.9

%

 

22.4

%

 

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 ended December 31, 2019 and 2018, respectively.

Table 6

Cash Dividends Received - Unaudited

 

2019

 

Q4 '19

 

Q3 '19

 

Q2 '19

 

Q1 '19

 

2018

 

Q4 '18

 

Q3 '18

 

Q2 '18

 

Q1 '18

 

(In $ millions)

Dividends from equity method investments

168

 

42

 

 

15

 

 

41

 

 

70

 

 

221

 

62

 

 

44

 

 

39

 

 

76

 

Dividends from equity investments without readily determinable fair values

113

 

24

 

 

27

 

 

30

 

 

32

 

 

117

 

25

 

 

26

 

 

34

 

 

32

 

Total

281

 

66

 

 

42

 

 

71

 

 

102

 

 

338

 

87

 

 

70

 

 

73

 

 

108

 

Table 7

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

 

2019

 

 

Q4 '19

 

Q3 '19

 

Q2 '19

 

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

496

 

 

496

 

 

368

 

 

319

 

 

743

 

 

561

 

 

561

 

 

229

 

 

366

 

 

425

 

Long-term debt, net of unamortized deferred financing costs

3,409

 

 

3,409

 

 

3,359

 

 

3,444

 

 

2,933

 

 

2,970

 

 

2,970

 

 

3,196

 

 

3,228

 

 

3,343

 

Total debt

3,905

 

 

3,905

 

 

3,727

 

 

3,763

 

 

3,676

 

 

3,531

 

 

3,531

 

 

3,425

 

 

3,594

 

 

3,768

 

Cash and cash equivalents

(463

)

 

(463

)

 

(497

)

 

(491

)

 

(441

)

 

(439

)

 

(439

)

 

(703

)

 

(708

)

 

(490

)

Net debt

3,442

 

 

3,442

 

 

3,230

 

 

3,272

 

 

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:

 

2019

 

Q4 '19

 

Q3 '19

 

Q2 '19

 

Q1 '19

 

2018

 

Q4 '18

 

Q3 '18

 

Q2 '18

 

Q1 '18

 

Income Statement Classification

 

(In $ millions)

 

 

Plant/office closures

26

 

12

 

9

 

2

 

3

 

19

 

16

 

 

3

 

 

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

Asset impairments(1)

94

 

2

 

9

 

83

 

 

 

 

 

 

 

Cost of sales / Other (charges) gains, net

Clear Lake incident

34

 

32

 

2

 

 

 

 

 

 

 

 

Cost of sales

Mergers and acquisitions

12

 

3

 

2

 

4

 

3

 

33

 

6

 

3

 

11

 

13

 

Cost of sales / SG&A

Actuarial (gain) loss on pension and postretirement plans

88

 

88

 

 

 

 

166

 

166

 

 

 

 

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

Restructuring

27

 

6

 

7

 

15

 

(1)

 

9

 

4

 

2

 

3

 

 

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

European Commission investigation

89

 

89

 

 

 

 

 

 

 

 

 

Other (charges) gains, net

Commercial disputes

10

 

6

 

 

2

 

2

 

 

 

 

 

 

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

Other

1

 

 

 

1

 

 

1

 

 

 

1

 

 

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

Certain Items attributable to Celanese Corporation

381

 

238

 

29

 

107

 

7

 

228

 

192

 

5

 

18

 

13

 

 

______________________________
(1)

Includes $5 million of asset impairments in 2019 related to the Clear Lake incident.

Table 9

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

 

 

 

 

 

2019

 

 

 

 

 

2018

 

 

 

 

 

(In $ millions,
except percentages)

 

 

 

 

 

(In $ millions,
except percentages)

Net earnings (loss) attributable to Celanese Corporation

 

 

 

 

852

 

 

 

 

 

 

1,207

 

 

 

 

 

 

 

 

 

 

 

 

 

Adjusted EBIT (Table 1)

 

 

 

 

1,476

 

 

 

 

 

 

1,852

 

Adjusted effective tax rate (Table 3a)

 

 

 

 

13

%

 

 

 

 

 

14

%

Adjusted EBIT tax effected

 

 

 

 

1,284

 

 

 

 

 

 

1,593

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2019

 

2018

 

Average

 

2018

 

2017

 

Average

 

(In $ millions, except percentages)

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

496

 

561

 

529

 

 

561

 

326

 

444

 

Long-term debt, net of unamortized deferred financing costs

3,409

 

2,970

 

3,190

 

 

2,970

 

3,315

 

3,143

 

Celanese Corporation stockholders' equity

2,507

 

2,984

 

2,746

 

 

2,984

 

2,887

 

2,936

 

Invested capital

 

 

 

 

6,465

 

 

 

 

 

 

6,523

 

 

 

 

 

 

 

 

 

 

 

 

 

Return on invested capital (adjusted)

 

 

 

 

19.9

%

 

 

 

 

 

24.4

%

 

 

 

 

 

 

 

 

 

 

 

 

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

 

 

 

 

13.2

%

 

 

 

 

 

18.5

%

 

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