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|
|
Delaware
|
|
001-32410
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98-0420726
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(State or other jurisdiction
of incorporation)
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(Commission File
Number)
|
|
(IRS Employer
Identification No.)
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Exhibit
Number
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|
|
|
Description
|
|
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99.1
|
|
Press Release dated January 23, 2014*
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|
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99.2
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Slide Presentation dated January 23, 2014*
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99.3
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|
Prepared Remarks from M. Rohr and S. Sterin dated January 23, 2014*
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|
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CELANESE CORPORATION
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||
|
By:
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/s/ James R. Peacock III
|
|
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Name:
|
James R. Peacock III
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|
|
Title:
|
Vice President, Deputy General Counsel and Assistant Corporate Secretary
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|
|
|
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|
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Date:
|
January 23, 2014
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|
Exhibit
Number
|
|
|
|
Description
|
|
|
|
|
99.1
|
|
Press Release dated January 23, 2014*
|
|
|
|
99.2
|
|
Slide Presentation dated January 23, 2014*
|
|
|
|
99.3
|
|
Prepared Remarks from M. Rohr and S. Sterin dated January 23, 2014*
|
|
Celanese Corporation
|
|
222 West Las Colinas Blvd.
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|
Suite 900N
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|
Irving, Texas 75039
|
•
|
Adjusted earnings per share of
$1.04
, record fourth quarter primarily driven by Celanese-specific actions
|
•
|
Adjusted EBIT margin of
15.1 percent
|
•
|
Deployed
$62 million
of cash, repurchasing approximately
1.1 million
shares
|
•
|
Cash on hand consistent with prior quarter at approximately
$1 billion
|
•
|
GAAP earnings per share of
$4.16
, includes aggregate net gains of
$753 million
primarily related to the final disposition of the Kelsterbach site, settlement or curtailment of pension and other postretirement benefit plan obligations, net actuarial gains and losses, and exit costs and impairments for certain sites.
|
|
Three Months Ended
|
|
Year Ended
|
||||||||||||
|
December 31, 2013
|
|
September 30, 2013
|
|
December 31, 2013
|
|
December 31, 2012
|
||||||||
|
(unaudited)
|
||||||||||||||
|
(In $ millions, except per share data)
|
||||||||||||||
Net sales
|
1,616
|
|
|
1,636
|
|
|
6,510
|
|
|
6,418
|
|
||||
Operating profit (loss)
|
944
|
|
|
211
|
|
|
1,508
|
|
|
175
|
|
||||
Net earnings (loss)
|
654
|
|
|
172
|
|
|
1,101
|
|
|
372
|
|
||||
Adjusted EBIT / Total segment income
(1)
|
244
|
|
|
279
|
|
|
1,056
|
|
|
962
|
|
||||
Operating EBITDA
(1)
|
319
|
|
|
355
|
|
|
1,358
|
|
|
1,262
|
|
||||
Diluted EPS - continuing operations
|
$
|
4.16
|
|
|
$
|
1.07
|
|
|
$
|
6.91
|
|
|
$
|
2.35
|
|
Diluted EPS - total
|
$
|
4.15
|
|
|
$
|
1.08
|
|
|
$
|
6.91
|
|
|
$
|
2.33
|
|
Adjusted EPS
(2)
|
$
|
1.04
|
|
|
$
|
1.20
|
|
|
$
|
4.50
|
|
|
$
|
4.07
|
|
(1)
|
Non-U.S. GAAP measure. See
Table 1
for reconciliation.
|
(2)
|
Non-U.S. GAAP measure. See
Table 3
for reconciliation.
|
•
|
The company received a final greenhouse gas permit from the U.S. Environmental Protection Agency for the company's methanol project at its Clear Lake, Texas facility. Celanese has begun construction on its methanol plant.
|
•
|
The company ceased all manufacturing operations at its acetic anhydride plant in Roussillon and at its vinyl acetate monomer (VAM) unit in Tarragona at the end of 2013. Celanese expects savings from these closures to be in the range of $20 to $30 million in 2014.
|
•
|
Celanese announced the expansion of production capacity under its joint venture agreements with Polyplastics in Malaysia, Korea Engineering Plastics (KEP) in Korea and SABIC in Saudi Arabia.
|
Contacts:
|
|
|
|
|
Investor Relations
|
|
Media - U.S.
|
|
Media - Europe
|
Jon Puckett
|
|
Travis Jacobsen
|
|
Jens Kurth
|
Phone: +1 972 443 4965
|
|
Phone: +1 972 443 3750
|
|
Phone: +49(0)69 45009 1574
|
Jon.Puckett@celanese.com
|
|
William.Jacobsen@celanese.com
|
|
J.Kurth@celanese.com
|
•
|
Adjusted EBIT is defined by the Company as net earnings (loss) less interest income plus loss (earnings) from discontinued operations, interest expense and taxes, and further adjusted for certain items (formerly other charges and other adjustments). We believe that adjusted EBIT provides transparent and useful information to management, investors and analysts in evaluating and assessing our core 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 may provide guidance on adjusted EBIT but are unable to reconcile forecasted adjusted EBIT to a GAAP financial measure without unreasonable effort because a forecast of certain items is not practical. Adjusted EBIT by business segment may also be referred to by management as segment income.
|
•
|
Operating EBITDA is defined by the Company as net earnings (loss) less interest income plus loss (earnings) from discontinued operations, interest expense, taxes and depreciation and amortization, and further adjusted for certain items. Operating EBITDA is equal to adjusted EBIT plus depreciation and amortization, and has the same uses and limitations as adjusted EBIT described above.
|
•
|
Adjusted earnings per share is defined by the Company as earnings (loss) from continuing operations, adjusted for income tax (provision) benefit, certain items, refinancing and related expenses and noncontrolling interests, divided by the number of basic common shares, convertible preferred 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 and analysts in evaluating and assessing our core operating results from period-to-period after removing the impact of unusual, non-operational or restructuring-related activities that affect comparability. We may provide guidance on adjusted earnings per share but are unable to reconcile forecasted adjusted earnings per share to a GAAP financial measure without unreasonable effort because a forecast of certain items is not practical.
|
•
|
Adjusted free cash flow is defined by the Company as cash flow from operations less other productive asset purchases, operating cash flow from discontinued operations and certain cash flow adjustments. We believe that adjusted free cash flow provides useful information to management, investors and analysts in evaluating the Company’s liquidity and credit quality assessment. Although we use adjusted free cash flow as a financial measure to assess the performance of our business, the use of adjusted free cash flow has important limitations, including that adjusted 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 and analysts in evaluating changes to the Company's capital structure and credit quality assessment.
|
|
Three Months Ended
|
|||||||
|
December 31,
2013 |
|
September 30,
2013 |
|
December 31, 2012
|
|||
|
(In $ millions, except share and per share data)
|
|||||||
Net sales
|
1,616
|
|
|
1,636
|
|
|
1,501
|
|
Cost of sales
|
(1,249
|
)
|
|
(1,290
|
)
|
|
(1,257
|
)
|
Gross profit
|
367
|
|
|
346
|
|
|
244
|
|
Selling, general and administrative expenses
|
5
|
|
|
(97
|
)
|
|
(476
|
)
|
Amortization of intangible assets
|
(6
|
)
|
|
(6
|
)
|
|
(13
|
)
|
Research and development expenses
|
(12
|
)
|
|
(24
|
)
|
|
(31
|
)
|
Other (charges) gains, net
|
(147
|
)
|
|
(4
|
)
|
|
(13
|
)
|
Foreign exchange gain (loss), net
|
(1
|
)
|
|
(2
|
)
|
|
—
|
|
Gain (loss) on disposition of businesses and asset, net
|
738
|
|
|
(2
|
)
|
|
(1
|
)
|
Operating profit (loss)
|
944
|
|
|
211
|
|
|
(290
|
)
|
Equity in net earnings (loss) of affiliates
|
30
|
|
|
41
|
|
|
79
|
|
Interest expense
|
(42
|
)
|
|
(43
|
)
|
|
(51
|
)
|
Refinancing expense
|
—
|
|
|
(1
|
)
|
|
(3
|
)
|
Interest income
|
—
|
|
|
—
|
|
|
1
|
|
Dividend income - cost investments
|
24
|
|
|
22
|
|
|
—
|
|
Other income (expense), net
|
(1
|
)
|
|
(2
|
)
|
|
1
|
|
Earnings (loss) from continuing operations before tax
|
955
|
|
|
228
|
|
|
(263
|
)
|
Income tax (provision) benefit
|
(299
|
)
|
|
(57
|
)
|
|
96
|
|
Earnings (loss) from continuing operations
|
656
|
|
|
171
|
|
|
(167
|
)
|
Earnings (loss) from operation of discontinued operations
|
(3
|
)
|
|
1
|
|
|
(3
|
)
|
Gain (loss) on disposition of discontinued operations
|
—
|
|
|
—
|
|
|
—
|
|
Income tax (provision) benefit from discontinued operations
|
1
|
|
|
—
|
|
|
1
|
|
Earnings (loss) from discontinued operations
|
(2
|
)
|
|
1
|
|
|
(2
|
)
|
Net earnings (loss)
|
654
|
|
|
172
|
|
|
(169
|
)
|
Net (earnings) loss attributable to noncontrolling interests
|
—
|
|
|
—
|
|
|
—
|
|
Net earnings (loss) attributable to Celanese Corporation
|
654
|
|
|
172
|
|
|
(169
|
)
|
Amounts attributable to Celanese Corporation
|
|
|
|
|
|
|||
Earnings (loss) from continuing operations
|
656
|
|
|
171
|
|
|
(167
|
)
|
Earnings (loss) from discontinued operations
|
(2
|
)
|
|
1
|
|
|
(2
|
)
|
Net earnings (loss)
|
654
|
|
|
172
|
|
|
(169
|
)
|
Earnings (loss) per common share - basic
|
|
|
|
|
|
|||
Continuing operations
|
4.17
|
|
|
1.08
|
|
|
(1.05
|
)
|
Discontinued operations
|
(0.01
|
)
|
|
0.01
|
|
|
(0.01
|
)
|
Net earnings (loss) - basic
|
4.16
|
|
|
1.09
|
|
|
(1.06
|
)
|
Earnings (loss) per common share - diluted
|
|
|
|
|
|
|||
Continuing operations
|
4.16
|
|
|
1.07
|
|
|
(1.05
|
)
|
Discontinued operations
|
(0.01
|
)
|
|
0.01
|
|
|
(0.01
|
)
|
Net earnings (loss) - diluted
|
4.15
|
|
|
1.08
|
|
|
(1.06
|
)
|
Weighted average shares (in millions)
|
|
|
|
|
|
|||
Basic
|
157.4
|
|
|
158.5
|
|
|
159.5
|
|
Diluted
|
157.7
|
|
|
159.1
|
|
|
159.5
|
|
|
Year Ended December 31,
|
||||
|
2013
|
|
2012
|
||
|
(In $ millions, except share and per share data)
|
||||
Net sales
|
6,510
|
|
|
6,418
|
|
Cost of sales
|
(5,145
|
)
|
|
(5,237
|
)
|
Gross profit
|
1,365
|
|
|
1,181
|
|
Selling, general and administrative expenses
|
(311
|
)
|
|
(830
|
)
|
Amortization of intangible assets
|
(32
|
)
|
|
(51
|
)
|
Research and development expenses
|
(85
|
)
|
|
(104
|
)
|
Other (charges) gains, net
|
(158
|
)
|
|
(14
|
)
|
Foreign exchange gain (loss), net
|
(6
|
)
|
|
(4
|
)
|
Gain (loss) on disposition of businesses and asset, net
|
735
|
|
|
(3
|
)
|
Operating profit (loss)
|
1,508
|
|
|
175
|
|
Equity in net earnings (loss) of affiliates
|
180
|
|
|
242
|
|
Interest expense
|
(172
|
)
|
|
(185
|
)
|
Refinancing expense
|
(1
|
)
|
|
(3
|
)
|
Interest income
|
1
|
|
|
2
|
|
Dividend income - cost investments
|
93
|
|
|
85
|
|
Other income (expense), net
|
—
|
|
|
5
|
|
Earnings (loss) from continuing operations before tax
|
1,609
|
|
|
321
|
|
Income tax (provision) benefit
|
(508
|
)
|
|
55
|
|
Earnings (loss) from continuing operations
|
1,101
|
|
|
376
|
|
Earnings (loss) from operation of discontinued operations
|
—
|
|
|
(6
|
)
|
Gain (loss) on disposition of discontinued operations
|
—
|
|
|
—
|
|
Income tax (provision) benefit from discontinued operations
|
—
|
|
|
2
|
|
Earnings (loss) from discontinued operations
|
—
|
|
|
(4
|
)
|
Net earnings (loss)
|
1,101
|
|
|
372
|
|
Net (earnings) loss attributable to noncontrolling interests
|
—
|
|
|
—
|
|
Net earnings (loss) attributable to Celanese Corporation
|
1,101
|
|
|
372
|
|
Amounts attributable to Celanese Corporation
|
|
|
|
||
Earnings (loss) from continuing operations
|
1,101
|
|
|
376
|
|
Earnings (loss) from discontinued operations
|
—
|
|
|
(4
|
)
|
Net earnings (loss)
|
1,101
|
|
|
372
|
|
Earnings (loss) per common share - basic
|
|
|
|
||
Continuing operations
|
6.93
|
|
|
2.37
|
|
Discontinued operations
|
—
|
|
|
(0.02
|
)
|
Net earnings (loss) - basic
|
6.93
|
|
|
2.35
|
|
Earnings (loss) per common share - diluted
|
|
|
|
||
Continuing operations
|
6.91
|
|
|
2.35
|
|
Discontinued operations
|
—
|
|
|
(0.02
|
)
|
Net earnings (loss) - diluted
|
6.91
|
|
|
2.33
|
|
Weighted average shares (in millions)
|
|
|
|
||
Basic
|
158.8
|
|
|
158.4
|
|
Diluted
|
159.3
|
|
|
159.8
|
|
|
As of December 31, 2013
|
|
As of December 31, 2012
|
||
|
(In $ millions)
|
||||
ASSETS
|
|
|
|
||
Current Assets
|
|
|
|
||
Cash and cash equivalents
|
984
|
|
|
959
|
|
Trade receivables - third party and affiliates, net
|
867
|
|
|
827
|
|
Non-trade receivables, net
|
343
|
|
|
209
|
|
Inventories
|
804
|
|
|
711
|
|
Deferred income taxes
|
115
|
|
|
49
|
|
Marketable securities, at fair value
|
41
|
|
|
53
|
|
Other assets
|
28
|
|
|
31
|
|
Total current assets
|
3,182
|
|
|
2,839
|
|
Investments in affiliates
|
841
|
|
|
800
|
|
Property, plant and equipment, net
|
3,425
|
|
|
3,350
|
|
Deferred income taxes
|
289
|
|
|
606
|
|
Other assets
|
341
|
|
|
463
|
|
Goodwill
|
798
|
|
|
777
|
|
Intangible assets, net
|
142
|
|
|
165
|
|
Total assets
|
9,018
|
|
|
9,000
|
|
LIABILITIES AND EQUITY
|
|
|
|
||
Current Liabilities
|
|
|
|
||
Short-term borrowings and current installments of long-term debt - third party and affiliates
|
177
|
|
|
168
|
|
Trade payables - third party and affiliates
|
799
|
|
|
649
|
|
Other liabilities
|
541
|
|
|
475
|
|
Deferred income taxes
|
10
|
|
|
25
|
|
Income taxes payable
|
18
|
|
|
38
|
|
Total current liabilities
|
1,545
|
|
|
1,355
|
|
Long-term debt
|
2,887
|
|
|
2,930
|
|
Deferred income taxes
|
225
|
|
|
50
|
|
Uncertain tax positions
|
200
|
|
|
181
|
|
Benefit obligations
|
1,175
|
|
|
1,602
|
|
Other liabilities
|
287
|
|
|
1,152
|
|
Commitments and Contingencies
|
|
|
|
||
Stockholders' Equity
|
|
|
|
||
Preferred stock
|
—
|
|
|
—
|
|
Common stock
|
—
|
|
|
—
|
|
Treasury stock, at cost
|
(361
|
)
|
|
(905
|
)
|
Additional paid-in capital
|
53
|
|
|
731
|
|
Retained earnings
|
3,011
|
|
|
1,993
|
|
Accumulated other comprehensive income (loss), net
|
(4
|
)
|
|
(89
|
)
|
Total Celanese Corporation stockholders' equity
|
2,699
|
|
|
1,730
|
|
Noncontrolling interests
|
—
|
|
|
—
|
|
Total equity
|
2,699
|
|
|
1,730
|
|
Total liabilities and equity
|
9,018
|
|
|
9,000
|
|
|
Three Months Ended
|
|
Year Ended
|
||||||||
|
December 31,
2013 |
|
September 30,
2013 |
|
December 31,
2013 |
|
December 31,
2012 |
||||
|
(In $ millions)
|
||||||||||
Net earnings (loss)
|
654
|
|
|
172
|
|
|
1,101
|
|
|
372
|
|
(Earnings) loss from discontinued operations
|
2
|
|
|
(1
|
)
|
|
—
|
|
|
4
|
|
Interest income
|
—
|
|
|
—
|
|
|
(1
|
)
|
|
(2
|
)
|
Interest expense
|
42
|
|
|
43
|
|
|
172
|
|
|
185
|
|
Refinancing expense
|
—
|
|
|
1
|
|
|
1
|
|
|
3
|
|
Income tax provision (benefit)
|
299
|
|
|
57
|
|
|
508
|
|
|
(55
|
)
|
Certain items
(1)
|
(753
|
)
|
|
7
|
|
|
(725
|
)
|
|
455
|
|
Adjusted EBIT
|
244
|
|
|
279
|
|
|
1,056
|
|
|
962
|
|
Depreciation and amortization expense
(2)
|
75
|
|
|
76
|
|
|
302
|
|
|
300
|
|
Operating EBITDA
|
319
|
|
|
355
|
|
|
1,358
|
|
|
1,262
|
|
|
Three Months Ended
|
|
Year Ended
|
||||||||
|
December 31,
2013 |
|
September 30,
2013 |
|
December 31,
2013 |
|
December 31,
2012 |
||||
|
(In $ millions)
|
||||||||||
Advanced Engineered Materials
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Consumer Specialties
|
—
|
|
|
—
|
|
|
—
|
|
|
6
|
|
Industrial Specialties
|
3
|
|
|
—
|
|
|
3
|
|
|
2
|
|
Acetyl Intermediates
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Other Activities
(3)
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Accelerated depreciation and amortization expense
|
3
|
|
|
—
|
|
|
3
|
|
|
8
|
|
Depreciation and amortization expense
(2)
|
75
|
|
|
76
|
|
|
302
|
|
|
300
|
|
Total depreciation and amortization expense
|
78
|
|
|
76
|
|
|
305
|
|
|
308
|
|
(1)
|
See
Table 8
for details.
|
(2)
|
Excludes accelerated depreciation and amortization expense as detailed in the table above and included in Certain items above.
|
(3)
|
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, including interest cost, expected return on assets and net actuarial gains and losses.
|
|
Three Months Ended
|
||||||||||
|
December 31,
2013 |
|
September 30,
2013 |
||||||||
|
(In $ millions, except percentages)
|
||||||||||
Operating Profit (Loss) / Operating Margin
(1)
|
|
|
|
|
|
|
|
||||
Advanced Engineered Materials
|
781
|
|
|
240.3
|
%
|
|
48
|
|
|
13.9
|
%
|
Consumer Specialties
|
100
|
|
|
33.9
|
%
|
|
85
|
|
|
27.4
|
%
|
Industrial Specialties
|
7
|
|
|
2.6
|
%
|
|
24
|
|
|
8.0
|
%
|
Acetyl Intermediates
|
(44
|
)
|
|
(5.3
|
)%
|
|
67
|
|
|
8.4
|
%
|
Other Activities
(2)
|
100
|
|
|
|
|
(13
|
)
|
|
|
||
Total
|
944
|
|
|
58.4
|
%
|
|
211
|
|
|
12.9
|
%
|
Equity Earnings, Cost - Dividend Income and Other Income (Expense)
|
|
|
|
|
|
|
|
||||
Advanced Engineered Materials
|
33
|
|
|
|
|
31
|
|
|
|
||
Consumer Specialties
|
24
|
|
|
|
|
21
|
|
|
|
||
Industrial Specialties
|
—
|
|
|
|
|
—
|
|
|
|
||
Acetyl Intermediates
|
(4
|
)
|
|
|
|
3
|
|
|
|
||
Other Activities
(2)
|
—
|
|
|
|
|
6
|
|
|
|
||
Total
|
53
|
|
|
|
|
61
|
|
|
|
||
Certain Items
(3)
|
|
|
|
|
|
|
|
||||
Advanced Engineered Materials
|
(758
|
)
|
|
|
|
2
|
|
|
|
||
Consumer Specialties
|
(13
|
)
|
|
|
|
2
|
|
|
|
||
Industrial Specialties
|
6
|
|
|
|
|
1
|
|
|
|
||
Acetyl Intermediates
|
132
|
|
|
|
|
2
|
|
|
|
||
Other Activities
(2)
|
(120
|
)
|
|
|
|
—
|
|
|
|
||
Total
|
(753
|
)
|
|
|
|
7
|
|
|
|
||
Adjusted EBIT / Adjusted EBIT Margin
(1)
|
|
|
|
|
|
|
|
||||
Advanced Engineered Materials
|
56
|
|
|
17.2
|
%
|
|
81
|
|
|
23.4
|
%
|
Consumer Specialties
|
111
|
|
|
37.6
|
%
|
|
108
|
|
|
34.8
|
%
|
Industrial Specialties
|
13
|
|
|
4.8
|
%
|
|
25
|
|
|
8.4
|
%
|
Acetyl Intermediates
|
84
|
|
|
10.1
|
%
|
|
72
|
|
|
9.1
|
%
|
Other Activities
(2)
|
(20
|
)
|
|
|
|
(7
|
)
|
|
|
||
Total
|
244
|
|
|
15.1
|
%
|
|
279
|
|
|
17.1
|
%
|
Depreciation and Amortization Expense
(4)
|
|
|
|
|
|
|
|
||||
Advanced Engineered Materials
|
27
|
|
|
|
|
27
|
|
|
|
||
Consumer Specialties
|
11
|
|
|
|
|
10
|
|
|
|
||
Industrial Specialties
|
12
|
|
|
|
|
13
|
|
|
|
||
Acetyl Intermediates
|
21
|
|
|
|
|
22
|
|
|
|
||
Other Activities
(2)
|
4
|
|
|
|
|
4
|
|
|
|
||
Total
|
75
|
|
|
|
|
76
|
|
|
|
||
Operating EBITDA
|
|
|
|
|
|
|
|
||||
Advanced Engineered Materials
|
83
|
|
|
|
|
108
|
|
|
|
||
Consumer Specialties
|
122
|
|
|
|
|
118
|
|
|
|
||
Industrial Specialties
|
25
|
|
|
|
|
38
|
|
|
|
||
Acetyl Intermediates
|
105
|
|
|
|
|
94
|
|
|
|
||
Other Activities
(2)
|
(16
|
)
|
|
|
|
(3
|
)
|
|
|
||
Total
|
319
|
|
|
|
|
355
|
|
|
|
(1)
|
Defined as Operating profit (loss) and Adjusted EBIT, respectively, divided by Net sales. See
Table 4
for Net sales.
|
(2)
|
Other Activities includes corporate SG&A expenses, the results of captive insurance companies and certain components of net periodic benefit cost, including interest cost, expected return on assets and net actuarial gains and losses.
|
(3)
|
See
Table 8
for details.
|
(4)
|
Excludes accelerated depreciation and amortization expense. See
Table 1
for details.
|
|
Year Ended December 31,
|
||||||||||
|
2013
|
|
2012
|
||||||||
|
(In $ millions, except percentages)
|
||||||||||
Operating Profit (Loss) / Operating Margin
(1)
|
|
|
|
|
|
|
|
||||
Advanced Engineered Materials
|
904
|
|
|
66.9
|
%
|
|
95
|
|
|
7.5
|
%
|
Consumer Specialties
|
346
|
|
|
28.5
|
%
|
|
251
|
|
|
21.2
|
%
|
Industrial Specialties
|
64
|
|
|
5.5
|
%
|
|
86
|
|
|
7.3
|
%
|
Acetyl Intermediates
|
153
|
|
|
4.7
|
%
|
|
269
|
|
|
8.3
|
%
|
Other Activities
(2)
|
41
|
|
|
|
|
(526
|
)
|
|
|
||
Total
|
1,508
|
|
|
23.2
|
%
|
|
175
|
|
|
2.7
|
%
|
Equity Earnings, Cost - Dividend Income and Other Income (Expense)
|
|
|
|
|
|
|
|
||||
Advanced Engineered Materials
|
149
|
|
|
|
|
190
|
|
|
|
||
Consumer Specialties
|
95
|
|
|
|
|
90
|
|
|
|
||
Industrial Specialties
|
—
|
|
|
|
|
—
|
|
|
|
||
Acetyl Intermediates
|
5
|
|
|
|
|
13
|
|
|
|
||
Other Activities
(2)
|
24
|
|
|
|
|
39
|
|
|
|
||
Total
|
273
|
|
|
|
|
332
|
|
|
|
||
Certain Items
(3)
|
|
|
|
|
|
|
|
||||
Advanced Engineered Materials
|
(752
|
)
|
|
|
|
16
|
|
|
|
||
Consumer Specialties
|
(5
|
)
|
|
|
|
34
|
|
|
|
||
Industrial Specialties
|
9
|
|
|
|
|
2
|
|
|
|
||
Acetyl Intermediates
|
143
|
|
|
|
|
5
|
|
|
|
||
Other Activities
(2)
|
(120
|
)
|
|
|
|
398
|
|
|
|
||
Total
|
(725
|
)
|
|
|
|
455
|
|
|
|
||
Adjusted EBIT / Adjusted EBIT Margin
(1)
|
|
|
|
|
|
|
|
||||
Advanced Engineered Materials
|
301
|
|
|
22.3
|
%
|
|
301
|
|
|
23.9
|
%
|
Consumer Specialties
|
436
|
|
|
35.9
|
%
|
|
375
|
|
|
31.6
|
%
|
Industrial Specialties
|
73
|
|
|
6.3
|
%
|
|
88
|
|
|
7.4
|
%
|
Acetyl Intermediates
|
301
|
|
|
9.3
|
%
|
|
287
|
|
|
8.9
|
%
|
Other Activities
(2)
|
(55
|
)
|
|
|
|
(89
|
)
|
|
|
||
Total
|
1,056
|
|
|
16.2
|
%
|
|
962
|
|
|
15.0
|
%
|
Depreciation and Amortization Expense
(4)
|
|
|
|
|
|
|
|
||||
Advanced Engineered Materials
|
110
|
|
|
|
|
113
|
|
|
|
||
Consumer Specialties
|
41
|
|
|
|
|
39
|
|
|
|
||
Industrial Specialties
|
49
|
|
|
|
|
53
|
|
|
|
||
Acetyl Intermediates
|
86
|
|
|
|
|
80
|
|
|
|
||
Other Activities
(2)
|
16
|
|
|
|
|
15
|
|
|
|
||
Total
|
302
|
|
|
|
|
300
|
|
|
|
||
Operating EBITDA
|
|
|
|
|
|
|
|
||||
Advanced Engineered Materials
|
411
|
|
|
|
|
414
|
|
|
|
||
Consumer Specialties
|
477
|
|
|
|
|
414
|
|
|
|
||
Industrial Specialties
|
122
|
|
|
|
|
141
|
|
|
|
||
Acetyl Intermediates
|
387
|
|
|
|
|
367
|
|
|
|
||
Other Activities
(2)
|
(39
|
)
|
|
|
|
(74
|
)
|
|
|
||
Total
|
1,358
|
|
|
|
|
1,262
|
|
|
|
(1)
|
Defined as Operating profit (loss) and Adjusted EBIT, respectively, divided by Net sales. See
Table 4
for Net sales.
|
(2)
|
Other Activities includes corporate SG&A expenses, the results of captive insurance companies and certain components of net periodic benefit cost, including interest cost, expected return on assets and net actuarial gains and losses.
|
(3)
|
See
Table 8
for details.
|
(4)
|
Excludes accelerated depreciation and amortization expense. See
Table 1
for details.
|
|
Three Months Ended
|
||||||||||
|
December 31,
2013 |
|
September 30,
2013 |
||||||||
|
|
|
per
share
|
|
|
|
per
share
|
||||
|
(In $ millions, except per share data)
|
||||||||||
Earnings (loss) from continuing operations
|
656
|
|
|
4.16
|
|
|
171
|
|
|
1.07
|
|
Deduct: Income tax (provision) benefit
|
(299
|
)
|
|
|
|
(57
|
)
|
|
|
||
Earnings (loss) from continuing operations before tax
|
955
|
|
|
|
|
228
|
|
|
|
||
Certain items
(1)
|
(753
|
)
|
|
|
|
7
|
|
|
|
||
Refinancing and related expenses
|
—
|
|
|
|
|
1
|
|
|
|
||
Adjusted earnings (loss) from continuing operations before tax
|
202
|
|
|
|
|
236
|
|
|
|
||
Income tax (provision) benefit on adjusted earnings
(2)
|
(38
|
)
|
|
|
|
(45
|
)
|
|
|
||
Noncontrolling interests
|
—
|
|
|
|
|
—
|
|
|
|
||
Adjusted earnings (loss) from continuing operations
(3)
|
164
|
|
|
1.04
|
|
|
191
|
|
|
1.20
|
|
|
|
|
|
|
|
|
|
||||
|
Diluted shares (in millions)
(4)
|
||||||||||
Weighted average shares outstanding
|
157.4
|
|
|
|
|
158.5
|
|
|
|
||
Dilutive stock options
|
0.2
|
|
|
|
|
0.2
|
|
|
|
||
Dilutive restricted stock units
|
0.1
|
|
|
|
|
0.4
|
|
|
|
||
Total diluted shares
|
157.7
|
|
|
|
|
159.1
|
|
|
|
(1)
|
See
Table 8
for details.
|
(2)
|
The adjusted effective tax rate is
19%
for the three months ended
December 31, 2013
and
September 30, 2013
.
|
(3)
|
Three months ended December 31, 2013 excludes the immediate recognition of actuarial gains and losses and the impact of actual plan asset returns of 7.9% vs. expected plan asset returns of 8.0%
|
(4)
|
Potentially dilutive shares are included in the adjusted earnings per share calculation when adjusted earnings are positive
|
|
Year Ended December 31,
|
||||||||||
|
2013
|
|
2012
|
||||||||
|
|
|
per
share
|
|
|
|
per
share
|
||||
|
(In $ millions, except per share data)
|
||||||||||
Earnings (loss) from continuing operations
|
1,101
|
|
|
6.91
|
|
|
376
|
|
|
2.35
|
|
Deduct: Income tax (provision) benefit
|
(508
|
)
|
|
|
|
55
|
|
|
|
||
Earnings (loss) from continuing operations before tax
|
1,609
|
|
|
|
|
321
|
|
|
|
||
Certain items
(1)
|
(725
|
)
|
|
|
|
455
|
|
|
|
||
Refinancing and related expenses
|
1
|
|
|
|
|
8
|
|
|
|
||
Adjusted earnings (loss) from continuing operations before tax
|
885
|
|
|
|
|
784
|
|
|
|
||
Income tax (provision) benefit on adjusted earnings
(2)
|
(168
|
)
|
|
|
|
(133
|
)
|
|
|
||
Noncontrolling interests
|
—
|
|
|
|
|
—
|
|
|
|
||
Adjusted earnings (loss) from continuing operations
(3)
|
717
|
|
|
4.50
|
|
|
651
|
|
|
4.07
|
|
|
|
|
|
|
|
|
|
||||
|
Diluted shares (in millions)
(4)
|
||||||||||
Weighted average shares outstanding
|
158.8
|
|
|
|
|
158.4
|
|
|
|
||
Dilutive stock options
|
0.2
|
|
|
|
|
0.8
|
|
|
|
||
Dilutive restricted stock units
|
0.3
|
|
|
|
|
0.6
|
|
|
|
||
Total diluted shares
|
159.3
|
|
|
|
|
159.8
|
|
|
|
(1)
|
See
Table 8
for details.
|
(2)
|
The adjusted effective tax rate is
19%
for the year ended
December 31, 2013
and 17% for the year ended December 31, 2012.
|
(3)
|
December 31, 2013 excludes the immediate recognition of actuarial gains and losses and the impact of actual plan asset returns of 7.9% vs. expected plan asset returns of 8.0%. December 31, 2012 excludes the immediate recognition of actuarial gains and losses and the impact of actual plan asset returns of 13.1% vs. expected plan asset returns of 8.1%.
|
(4)
|
Potentially dilutive shares are included in the adjusted earnings per share calculation when adjusted earnings are positive.
|
|
Three Months Ended
|
|
Year Ended
|
||||||||
|
December 31,
2013 |
|
September 30,
2013 |
|
December 31,
2013 |
|
December 31,
2012 |
||||
|
(In $ millions)
|
||||||||||
Advanced Engineered Materials
|
325
|
|
|
346
|
|
|
1,352
|
|
|
1,261
|
|
Consumer Specialties
|
295
|
|
|
310
|
|
|
1,214
|
|
|
1,186
|
|
Industrial Specialties
|
273
|
|
|
299
|
|
|
1,155
|
|
|
1,184
|
|
Acetyl Intermediates
|
829
|
|
|
795
|
|
|
3,241
|
|
|
3,231
|
|
Other Activities
(1)
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Intersegment eliminations
|
(106
|
)
|
|
(114
|
)
|
|
(452
|
)
|
|
(444
|
)
|
Total
|
1,616
|
|
|
1,636
|
|
|
6,510
|
|
|
6,418
|
|
(1)
|
Other Activities includes corporate SG&A expenses, the results of captive insurance companies and certain components of net periodic benefit cost, including interest cost, expected return on assets and net actuarial gains and losses.
|
|
Volume
|
|
Price
|
|
Currency
|
|
Other
|
|
Total
|
|||
|
(In percentages)
|
|||||||||||
Advanced Engineered Materials
|
(4
|
)
|
|
(3
|
)
|
|
1
|
|
—
|
|
(6
|
)
|
Consumer Specialties
|
(5
|
)
|
|
—
|
|
|
—
|
|
—
|
|
(5
|
)
|
Industrial Specialties
|
(10
|
)
|
|
—
|
|
|
1
|
|
—
|
|
(9
|
)
|
Acetyl Intermediates
|
2
|
|
|
1
|
|
|
1
|
|
—
|
|
4
|
|
Total Company
|
(3
|
)
|
|
—
|
|
|
1
|
|
—
|
|
(2
|
)
|
|
Volume
|
|
Price
|
|
Currency
|
|
Other
|
|
Total
|
|||
|
(In percentages)
|
|||||||||||
Advanced Engineered Materials
|
5
|
|
|
1
|
|
|
1
|
|
—
|
|
7
|
|
Consumer Specialties
|
(4
|
)
|
|
6
|
|
|
—
|
|
—
|
|
2
|
|
Industrial Specialties
|
(1
|
)
|
|
(3
|
)
|
|
2
|
|
—
|
|
(2
|
)
|
Acetyl Intermediates
|
1
|
|
|
(2
|
)
|
|
1
|
|
—
|
|
—
|
|
Total Company
|
—
|
|
|
—
|
|
|
1
|
|
—
|
|
1
|
|
|
Three Months Ended
|
|
Year Ended
|
||||||||
|
December 31,
2013 |
|
September 30,
2013 |
|
December 31,
2013 |
|
December 31,
2012 |
||||
|
(In $ millions)
|
||||||||||
Net cash provided by (used in) operating activities
|
154
|
|
|
232
|
|
|
762
|
|
|
722
|
|
Adjustments to operating cash for discontinued operations
|
(1
|
)
|
|
—
|
|
|
4
|
|
|
(2
|
)
|
Net cash provided by (used in) operating activities from continuing operations
|
153
|
|
|
232
|
|
|
766
|
|
|
720
|
|
Capital expenditures on property, plant and equipment
|
(111
|
)
|
|
(110
|
)
|
|
(370
|
)
|
|
(361
|
)
|
Cash flow adjustments
(1)
|
(5
|
)
|
|
(5
|
)
|
|
(24
|
)
|
|
(20
|
)
|
Adjusted free cash flow
|
37
|
|
|
117
|
|
|
372
|
|
|
339
|
|
(1)
|
Primarily associated with purchases of other productive assets that are classified as 'investing activities' for GAAP purposes. Amount for 2012 also includes Kelsterbach plant relocation related cash expenses.
|
|
Three Months Ended
|
|
Year Ended
|
||||||||
|
December 31,
2013 |
|
September 30,
2013 |
|
December 31,
2013 |
|
December 31,
2012 |
||||
|
(In $ millions)
|
||||||||||
Dividends from equity investments
|
38
|
|
|
11
|
|
|
141
|
|
|
262
|
|
Dividends from cost investments
|
24
|
|
|
22
|
|
|
93
|
|
|
85
|
|
Total
|
62
|
|
|
33
|
|
|
234
|
|
|
347
|
|
|
As of December 31,
|
||||
|
2013
|
|
2012
|
||
|
(In $ millions)
|
||||
Short-term borrowings and current installments of long-term debt - third party and affiliates
|
177
|
|
|
168
|
|
Long-term debt
|
2,887
|
|
|
2,930
|
|
Total debt
|
3,064
|
|
|
3,098
|
|
Less: Cash and cash equivalents
|
984
|
|
|
959
|
|
Net debt
|
2,080
|
|
|
2,139
|
|
|
Three Months Ended
|
|
|
||||
|
December 31,
2013 |
|
September 30,
2013 |
|
Income Statement Classification
|
||
|
(In $ millions)
|
|
|||||
Employee termination benefits
|
20
|
|
|
—
|
|
|
Other charges (gains), net
|
Kelsterbach plant relocation
|
(733
|
)
|
|
2
|
|
|
Other charges (gains), net / (Gain) loss on disposition
|
Asset impairments
|
81
|
|
|
2
|
|
|
Other charges (gains), net / Other income (expense), net
|
Plant/office closures
|
40
|
|
|
1
|
|
|
Other charges (gains), net / Cost of sales / SG&A
|
Commercial disputes
|
7
|
|
|
—
|
|
|
Other charges (gains), net / Cost of sales
|
(Gain) loss on disposition of assets
|
1
|
|
|
1
|
|
|
(Gain) loss on disposition
|
InfraServ Hoechst restructuring
|
8
|
|
|
—
|
|
|
Equity in net (earnings) loss of affiliates
|
(Gain) loss on pension plan and medical plan changes
|
(71
|
)
|
|
—
|
|
|
Cost of sales / SG&A / R&D
|
Actuarial (gain) loss on pension and postretirement plans
|
(106
|
)
|
|
—
|
|
|
Cost of sales / SG&A / R&D
|
Other
|
—
|
|
|
1
|
|
|
Cost of sales / SG&A / (Gain) loss on disposition
|
Total
|
(753
|
)
|
|
7
|
|
|
|
|
Year Ended December 31,
|
|
|
||||
|
2013
|
|
2012
|
|
Income Statement Classification
|
||
|
(In $ millions)
|
|
|||||
Employee termination benefits
|
23
|
|
|
6
|
|
|
Other charges (gains), net
|
Kelsterbach plant relocation
|
(727
|
)
|
|
21
|
|
|
Other charges (gains), net / (Gain) loss on disposition
|
Plumbing actions
|
—
|
|
|
(5
|
)
|
|
Other charges (gains), net
|
Asset impairments
|
83
|
|
|
8
|
|
|
Other charges (gains), net / Other income (expense), net
|
Plant/office closures
|
43
|
|
|
21
|
|
|
Other charges (gains), net / Cost of sales / SG&A
|
Commercial disputes
|
12
|
|
|
(2
|
)
|
|
Other charges (gains), net / Cost of sales
|
Business optimization
|
—
|
|
|
9
|
|
|
SG&A
|
(Gain) loss on disposition of assets
|
2
|
|
|
1
|
|
|
(Gain) loss on disposition
|
Acetate production interruption costs
|
—
|
|
|
10
|
|
|
Cost of sales
|
InfraServ Hoechst restructuring
|
8
|
|
|
(22
|
)
|
|
Equity in net (earnings) loss of affiliates
|
(Gain) loss on pension plan and medical plan changes
|
(71
|
)
|
|
—
|
|
|
Cost of sales / SG&A / R&D
|
Actuarial (gain) loss on pension and postretirement plans
|
(106
|
)
|
|
389
|
|
|
Cost of sales / SG&A / R&D
|
Other
|
8
|
|
|
19
|
|
|
Various
|
Total
|
(725
|
)
|
|
455
|
|
|
|