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DELAWARE
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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)
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(IRS Employer
Identification No.)
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Exhibit
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Number
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Descriptions
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99.1
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Press Release dated July 21, 2011*
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99.2
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Slide Presentation dated July 21, 2011*
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CELANESE CORPORATION
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||
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By:
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/s/ James R. Peacock III
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Name:
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James R. Peacock III
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Title:
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Vice President, Deputy General Counsel and Assistant Corporate Secretary
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Exhibit
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Number
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Description
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99.1
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Press Release dated July 21, 2011*
|
|
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99.2
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Slide Presentation dated July 21, 2011*
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Celanese Corporation
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Investor Relations
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1601 West LBJ Freeway
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Corporate News Release
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Dallas, Texas 75234
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•
|
Net sales were
$1,753 million
, up
16%
from prior year period
|
•
|
Operating profit was
$209 million
versus
$156 million
in prior year period
|
•
|
Net earnings were
$203 million
versus
$160 million
in prior year period
|
•
|
Operating EBITDA was
$441 million
, up 33% from prior year period
|
•
|
Diluted EPS from continuing operations was
$1.29
versus
$1.03
in prior year period
|
•
|
Adjusted EPS was
$1.66
, up 48% from prior year period
|
|
Three Months Ended
June 30, |
|
Six Months Ended
June 30, |
||||||||||||||
(in $ millions, except per share data) - Unaudited
|
2011
|
|
2010
|
|
2011
|
|
2010
|
||||||||||
Net sales
|
1,753
|
|
|
1,517
|
|
|
3,342
|
|
|
2,905
|
|
||||||
Operating profit (loss)
|
209
|
|
|
156
|
|
|
397
|
|
|
142
|
|
||||||
Net earnings (loss) attributable to Celanese Corporation
|
203
|
|
|
160
|
|
|
345
|
|
|
174
|
|
||||||
Operating EBITDA
1
|
441
|
|
|
332
|
|
|
745
|
|
|
574
|
|
||||||
Diluted EPS - continuing operations
|
$
|
1.29
|
|
|
$
|
1.03
|
|
|
$
|
2.16
|
|
|
$
|
1.11
|
|
||
Diluted EPS - total
|
$
|
1.28
|
|
|
$
|
1.01
|
|
|
$
|
2.17
|
|
|
$
|
1.10
|
|
||
Adjusted EPS
2
|
$
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1.66
|
|
|
$
|
1.12
|
|
|
$
|
2.62
|
|
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$
|
1.76
|
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•
|
Published independent third-party analyses of Celanese TCX™, its proprietary technology for ethanol production. Under non-disclosure agreements to protect intellectual property rights and maintain confidentiality, Fluor Corporation and WorleyParsons evaluated the company's advanced ethanol technology that uses basic hydrocarbon feedstocks.
|
•
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Doubled the capacity of its vinyl acetate ethylene (VAE) unit in Nanjing, China. The expanded unit started production in the second quarter of 2011 and is expected to meet the increased global demand for innovative specialty solutions in vinyl-based emulsions.
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•
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Announced it will nearly double production at its Celstran
®
long-fiber reinforced thermoplastic (LFT) manufacturing unit in Nanjing, China by the end of the fourth quarter of 2011. The unit came online in 2008 with an initial nameplate capacity of 5,000 tons per year.
|
•
|
Successfully completed a public offering of $400 million in aggregate principal amount of senior unsecured notes at 5.875 percent due 2021. The company used the net proceeds from the offering, plus cash on hand, to retire $516 million of existing senior secured credit facility indebtedness that was set to mature in 2014.
|
•
|
Polyplastics Co., Ltd. (Polyplastics), one of the company's strategic equity affiliates, announced a 90,000 ton per year expansion to increase polyacetal production capacity in Malaysia that is expected to be operational in early 2014. The expansion is currently anticipated to be funded locally by Polyplastics.
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•
|
Announced plans to accelerate industrial ethanol production in China six to twelve months earlier than previously expected. In addition to its previously announced plans for one, and possibly two greenfield units, the company plans to modify and enhance its existing integrated acetyl facility at the Nanjing Chemical Industrial Park with its TCX
™
advanced technology, adding approximately 200,000 tons of ethanol production capacity by mid-2013.
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•
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Broke ground on the previously announced plans for a technology development unit for ethanol production at its facility in Clear Lake, Texas, which is now expected to be commissioned by mid-2012. The company also intends to construct a new research and development facility at the Clear Lake site to continue the advancement of its acetyl and TCX
™
technologies.
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Contacts:
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Investor Relations
|
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Media - U.S.
|
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Media - Europe
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Jon Puckett
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Jacqueline Terry
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Jens Kurth
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Phone: +1 972 443 4965
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Phone: +1 972 443 4417
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Phone: +49(0)69 45009 1574
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Telefax: +1 972 443 8519
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Telefax: +1 972 443 8519
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Telefax: +49(0) 45009 58800
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Jon.Puckett@celanese.com
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Jacqueline.Terry@celanese.com
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J.Kurth@celanese.com
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•
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Operating EBITDA is defined by the company as net earnings less interest income plus loss (earnings) from discontinued operations, interest expense, taxes, and depreciation and amortization, and further adjusted for Other Charges and Adjustments as described in Table 7. We present operating EBITDA because we consider it an important supplemental measure of our operations and financial performance. We believe that operating EBITDA is more reflective of our operations as it provides transparency to investors and enhances period-to-period comparability of our operations and financial performance. Operating EBITDA is one of the measures management uses for its planning and budgeting process to monitor and evaluate financial and operating results and for the company's incentive compensation plan. Operating EBITDA should not be considered as an alternative to net income determined in accordance with U.S. GAAP. We may provide guidance on operating EBITDA and are unable to reconcile forecasted operating EBITDA to a U.S. GAAP financial measure because a forecast of Other Charges and Adjustments is not practical.
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•
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Business operating EBITDA is defined by the company as net earnings less interest income plus loss (earnings) from discontinued operations, interest expense, taxes and depreciation and amortization, and further adjusted for Other Charges and Adjustments as described in Table 7, less equity in net earnings of affiliates, dividend income from cost investments and other (income) expense. This supplemental performance measure reflects the operating results of the company's operations without regard to the financial impact of its equity and cost investments.
|
•
|
Affiliate EBITDA is defined by the company as operating profit plus the depreciation and amortization of its equity affiliates. Proportional affiliate EBITDA is defined by the company as the proportional operating profit plus the proportional depreciation and amortization of its equity investments. The company has determined that it does not have sufficient ownership for operating control of these investments to consider their results on a consolidated basis. The company believes that investors should consider proportional affiliate EBITDA as an additional measure of operating results.
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•
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Adjusted earnings per share is a measure used by management to measure performance. It is defined by the company as net earnings (loss) available to common shareholders plus preferred dividends, adjusted for other charges and adjustments, and divided by the number of basic common shares, diluted preferred shares, and options valued using the treasury method. We may provide guidance on an adjusted earnings per share basis and are unable to reconcile forecasted adjusted earnings per share to a U.S. GAAP financial measure without unreasonable effort because a forecast of Other Items is not practical. We believe that the presentation of this non-U.S. GAAP measure provides useful information to management and investors regarding various financial and business trends relating to our financial condition and results of operations, and that when U.S. GAAP information is viewed in conjunction with non-U.S. GAAP information, investors are provided with a more meaningful understanding of our ongoing operating performance. Note: 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, where applicable, and specifically excludes changes in uncertain tax positions, discrete items and other material items adjusted out of our U.S. GAAP earnings for adjusted earnings per share purposes, and changes in management's assessments regarding the ability to realize deferred tax assets. We analyze this rate quarterly and adjust 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 tax rate used for U.S. GAAP reporting in any given reporting period. It is not practical to reconcile our prospective adjusted tax rate to the actual U.S. GAAP tax rate in any given future period.
|
•
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Net debt is defined by the company as total debt less cash and cash equivalents. We believe that the presentation of this non-U.S. GAAP measure provides useful information to management and investors regarding changes to the company's capital structure. Our management and credit analysts use net debt to evaluate the company's capital structure and assess credit quality. Proportional net debt is defined as our proportionate share of our affiliates' net debt.
|
|
Three Months Ended
June 30, |
|
Six Months Ended
June 30, |
||||||||
(in $ millions, except share and per share data)
|
2011
|
2010
|
|
2011
|
|
2010
|
|||||
Net sales
|
1,753
|
|
|
1,517
|
|
|
3,342
|
|
|
2,905
|
|
Cost of sales
|
(1,343
|
)
|
|
(1,214
|
)
|
|
(2,581
|
)
|
|
(2,384
|
)
|
Gross profit
|
410
|
|
|
303
|
|
|
761
|
|
|
521
|
|
Selling, general and administrative expenses
|
(140
|
)
|
|
(124
|
)
|
|
(268
|
)
|
|
(248
|
)
|
Amortization of intangible assets
|
(17
|
)
|
|
(15
|
)
|
|
(33
|
)
|
|
(30
|
)
|
Research and development expenses
|
(25
|
)
|
|
(17
|
)
|
|
(48
|
)
|
|
(35
|
)
|
Other (charges) gains, net
|
(18
|
)
|
|
(6
|
)
|
|
(15
|
)
|
|
(83
|
)
|
Foreign exchange gain (loss), net
|
(1
|
)
|
|
—
|
|
|
—
|
|
|
2
|
|
Gain (loss) on disposition of businesses and asset, net
|
—
|
|
|
15
|
|
|
—
|
|
|
15
|
|
Operating profit (loss)
|
209
|
|
|
156
|
|
|
397
|
|
|
142
|
|
Equity in net earnings (loss) of affiliates
|
46
|
|
|
45
|
|
|
89
|
|
|
94
|
|
Interest expense
|
(57
|
)
|
|
(49
|
)
|
|
(112
|
)
|
|
(98
|
)
|
Refinancing expense
|
(3
|
)
|
|
—
|
|
|
(3
|
)
|
|
—
|
|
Interest income
|
—
|
|
|
1
|
|
|
1
|
|
|
2
|
|
Dividend income - cost investments
|
79
|
|
|
72
|
|
|
79
|
|
|
72
|
|
Other income (expense), net
|
6
|
|
|
(1
|
)
|
|
9
|
|
|
5
|
|
Earnings (loss) from continuing operations before tax
|
280
|
|
|
224
|
|
|
460
|
|
|
217
|
|
Income tax (provision) benefit
|
(75
|
)
|
|
(61
|
)
|
|
(117
|
)
|
|
(41
|
)
|
Earnings (loss) from continuing operations
|
205
|
|
|
163
|
|
|
343
|
|
|
176
|
|
Earnings (loss) from operation of discontinued operations
|
(3
|
)
|
|
(5
|
)
|
|
3
|
|
|
(5
|
)
|
Gain (loss) on disposition of discontinued operations
|
—
|
|
|
—
|
|
|
—
|
|
|
2
|
|
Income tax (provision) benefit, discontinued operations
|
1
|
|
|
2
|
|
|
(1
|
)
|
|
1
|
|
Earnings (loss) from discontinued operations
|
(2
|
)
|
|
(3
|
)
|
|
2
|
|
|
(2
|
)
|
Net earnings (loss)
|
203
|
|
|
160
|
|
|
345
|
|
|
174
|
|
Net earnings (loss) attributable to noncontrolling interests
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Net earnings (loss) attributable to Celanese Corporation
|
203
|
|
|
160
|
|
|
345
|
|
|
174
|
|
Cumulative preferred stock dividends
|
—
|
|
|
—
|
|
|
—
|
|
|
(3
|
)
|
Net earnings (loss) available to common shareholders
|
203
|
|
|
160
|
|
|
345
|
|
|
171
|
|
Amounts attributable to Celanese Corporation
|
|
|
|
|
|
|
|
||||
Earnings (loss) per common share - basic
|
|
|
|
|
|
|
|
||||
Continuing operations
|
1.31
|
|
|
1.04
|
|
|
2.20
|
|
|
1.13
|
|
Discontinued operations
|
(0.01
|
)
|
|
(0.02
|
)
|
|
0.01
|
|
|
(0.01
|
)
|
Net earnings (loss) - basic
|
1.30
|
|
|
1.02
|
|
|
2.21
|
|
|
1.12
|
|
Earnings (loss) per common share - diluted
|
|
|
|
|
|
|
|
||||
Continuing operations
|
1.29
|
|
|
1.03
|
|
|
2.16
|
|
|
1.11
|
|
Discontinued operations
|
(0.01
|
)
|
|
(0.02
|
)
|
|
0.01
|
|
|
(0.01
|
)
|
Net earnings (loss) - diluted
|
1.28
|
|
|
1.01
|
|
|
2.17
|
|
|
1.10
|
|
Weighted average shares (in millions)
|
|
|
|
|
|
|
|
||||
Basic
|
156.3
|
|
|
156.3
|
|
|
156.1
|
|
|
153.3
|
|
Diluted
|
159.2
|
|
|
158.4
|
|
|
158.9
|
|
|
158.7
|
|
(in $ millions)
|
As of
June 30, 2011 |
|
As of
December 31, 2010 |
||
|
|||||
ASSETS
|
|
|
|
||
Current assets
|
|
|
|
||
Cash & cash equivalents
|
741
|
|
|
740
|
|
Trade receivables - third party and affiliates, net
|
1,027
|
|
|
827
|
|
Non-trade receivables, net
|
239
|
|
|
253
|
|
Inventories
|
779
|
|
|
610
|
|
Deferred income taxes
|
95
|
|
|
92
|
|
Marketable securities, at fair value
|
70
|
|
|
78
|
|
Assets held for sale
|
—
|
|
|
9
|
|
Other assets
|
63
|
|
|
59
|
|
Total current assets
|
3,014
|
|
|
2,668
|
|
Investments in affiliates
|
838
|
|
|
838
|
|
Property, plant and equipment, net
|
3,273
|
|
|
3,017
|
|
Deferred income taxes
|
434
|
|
|
443
|
|
Other assets
|
309
|
|
|
289
|
|
Goodwill
|
813
|
|
|
774
|
|
Intangible assets, net
|
238
|
|
|
252
|
|
Total assets
|
8,919
|
|
|
8,281
|
|
|
|||||
LIABILITIES AND SHAREHOLDERS' EQUITY
|
|
|
|
||
Current liabilities
|
|
|
|
||
Short-term borrowings and current installments of long-term debt - third party and affiliates
|
155
|
|
|
228
|
|
Trade payables - third party and affiliates
|
786
|
|
|
673
|
|
Other liabilities
|
575
|
|
|
596
|
|
Deferred income taxes
|
30
|
|
|
28
|
|
Income taxes payable
|
95
|
|
|
17
|
|
Total current liabilities
|
1,641
|
|
|
1,542
|
|
Long-term debt
|
2,893
|
|
|
2,990
|
|
Deferred income taxes
|
124
|
|
|
116
|
|
Uncertain tax positions
|
290
|
|
|
273
|
|
Benefit obligations
|
1,321
|
|
|
1,359
|
|
Other liabilities
|
1,277
|
|
|
1,075
|
|
Commitments and contingencies
|
|
|
|
||
Shareholders' equity
|
|
|
|
||
Preferred stock
|
—
|
|
|
—
|
|
Common stock
|
—
|
|
|
—
|
|
Treasury stock, at cost
|
(842
|
)
|
|
(829
|
)
|
Additional paid-in capital
|
601
|
|
|
574
|
|
Retained earnings
|
2,180
|
|
|
1,851
|
|
Accumulated other comprehensive income (loss), net
|
(566
|
)
|
|
(670
|
)
|
Total Celanese Corporation shareholders' equity
|
1,373
|
|
|
926
|
|
Noncontrolling interests
|
—
|
|
|
—
|
|
Total shareholders' equity
|
1,373
|
|
|
926
|
|
Total liabilities and shareholders' equity
|
8,919
|
|
|
8,281
|
|
|
Three Months Ended
June 30, |
|
Six Months Ended
June 30, |
||||||||
(in $ millions)
|
2011
|
|
2010
|
|
2011
|
|
2010
|
||||
Net Sales
|
|
|
|
|
|
|
|
||||
Advanced Engineered Materials
|
346
|
|
|
282
|
|
|
674
|
|
|
564
|
|
Consumer Specialties
|
291
|
|
|
291
|
|
|
557
|
|
|
529
|
|
Industrial Specialties
|
329
|
|
|
269
|
|
|
619
|
|
|
511
|
|
Acetyl Intermediates
|
914
|
|
|
782
|
|
|
1,727
|
|
|
1,506
|
|
Other Activities
1
|
—
|
|
|
1
|
|
|
1
|
|
|
1
|
|
Intersegment eliminations
|
(127
|
)
|
|
(108
|
)
|
|
(236
|
)
|
|
(206
|
)
|
Total
|
1,753
|
|
|
1,517
|
|
|
3,342
|
|
|
2,905
|
|
Operating Profit (Loss)
|
|
|
|
|
|
|
|
||||
Advanced Engineered Materials
|
27
|
|
|
40
|
|
|
65
|
|
|
88
|
|
Consumer Specialties
|
48
|
|
|
64
|
|
|
102
|
|
|
34
|
|
Industrial Specialties
|
28
|
|
|
16
|
|
|
53
|
|
|
28
|
|
Acetyl Intermediates
|
152
|
|
|
68
|
|
|
264
|
|
|
68
|
|
Other Activities
1
|
(46
|
)
|
|
(32
|
)
|
|
(87
|
)
|
|
(76
|
)
|
Total
|
209
|
|
|
156
|
|
|
397
|
|
|
142
|
|
Other Charges and Other Adjustments
2
|
|
|
|
|
|
|
|
||||
Advanced Engineered Materials
|
22
|
|
|
2
|
|
|
34
|
|
|
—
|
|
Consumer Specialties
|
10
|
|
|
3
|
|
|
15
|
|
|
83
|
|
Industrial Specialties
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Acetyl Intermediates
|
(2
|
)
|
|
2
|
|
|
(19
|
)
|
|
54
|
|
Other Activities
1
|
3
|
|
|
(10
|
)
|
|
7
|
|
|
(5
|
)
|
Total
|
33
|
|
|
(3
|
)
|
|
37
|
|
|
132
|
|
Depreciation and Amortization Expense
3
|
|
|
|
|
|
|
|
||||
Advanced Engineered Materials
|
19
|
|
|
17
|
|
|
38
|
|
|
34
|
|
Consumer Specialties
|
10
|
|
|
9
|
|
|
18
|
|
|
20
|
|
Industrial Specialties
|
12
|
|
|
10
|
|
|
22
|
|
|
20
|
|
Acetyl Intermediates
|
25
|
|
|
24
|
|
|
50
|
|
|
49
|
|
Other Activities
1
|
2
|
|
|
3
|
|
|
6
|
|
|
6
|
|
Total
|
68
|
|
|
63
|
|
|
134
|
|
|
129
|
|
Business Operating EBITDA
|
|
|
|
|
|
|
|
||||
Advanced Engineered Materials
|
68
|
|
|
59
|
|
|
137
|
|
|
122
|
|
Consumer Specialties
|
68
|
|
|
76
|
|
|
135
|
|
|
137
|
|
Industrial Specialties
|
40
|
|
|
26
|
|
|
75
|
|
|
48
|
|
Acetyl Intermediates
|
175
|
|
|
94
|
|
|
295
|
|
|
171
|
|
Other Activities
1
|
(41
|
)
|
|
(39
|
)
|
|
(74
|
)
|
|
(75
|
)
|
Total
|
310
|
|
|
216
|
|
|
568
|
|
|
403
|
|
Equity Earnings, Cost - Dividend Income and Other Income (Expense)
|
|
|
|
|
|
|
|
||||
Advanced Engineered Materials
|
39
|
|
|
39
|
|
|
74
|
|
|
83
|
|
Consumer Specialties
|
79
|
|
|
73
|
|
|
80
|
|
|
73
|
|
Industrial Specialties
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Acetyl Intermediates
|
2
|
|
|
2
|
|
|
4
|
|
|
3
|
|
Other Activities
1
|
11
|
|
|
2
|
|
|
19
|
|
|
12
|
|
Total
|
131
|
|
|
116
|
|
|
177
|
|
|
171
|
|
Operating EBITDA
|
|
|
|
|
|
|
|
||||
Advanced Engineered Materials
|
107
|
|
|
98
|
|
|
211
|
|
|
205
|
|
Consumer Specialties
|
147
|
|
|
149
|
|
|
215
|
|
|
210
|
|
Industrial Specialties
|
40
|
|
|
26
|
|
|
75
|
|
|
48
|
|
Acetyl Intermediates
|
177
|
|
|
96
|
|
|
299
|
|
|
174
|
|
Other Activities
1
|
(30
|
)
|
|
(37
|
)
|
|
(55
|
)
|
|
(63
|
)
|
Total
|
441
|
|
|
332
|
|
|
745
|
|
|
574
|
|
|
Three Months Ended
June 30, |
|
Six Months Ended
June 30, |
||||||||
(in $ millions)
|
2011
|
|
2010
|
|
2011
|
|
2010
|
||||
Net earnings (loss) attributable to Celanese Corporation
|
203
|
|
|
160
|
|
|
345
|
|
|
174
|
|
(Earnings) loss from discontinued operations
|
2
|
|
|
3
|
|
|
(2
|
)
|
|
2
|
|
Interest income
|
—
|
|
|
(1
|
)
|
|
(1
|
)
|
|
(2
|
)
|
Interest expense
|
57
|
|
|
49
|
|
|
112
|
|
|
98
|
|
Refinancing expense
|
3
|
|
|
—
|
|
|
3
|
|
|
—
|
|
Income tax provision (benefit)
|
75
|
|
|
61
|
|
|
117
|
|
|
41
|
|
Depreciation and amortization expense
2
|
68
|
|
|
63
|
|
|
134
|
|
|
129
|
|
Other charges (gains), net
1
|
18
|
|
|
6
|
|
|
15
|
|
|
83
|
|
Other adjustments
1
|
15
|
|
|
(9
|
)
|
|
22
|
|
|
49
|
|
Operating EBITDA
|
441
|
|
|
332
|
|
|
745
|
|
|
574
|
|
Detail by Segment
|
|
|
|
|
|
|
|
||||
Advanced Engineered Materials
|
107
|
|
|
98
|
|
|
211
|
|
|
205
|
|
Consumer Specialties
|
147
|
|
|
149
|
|
|
215
|
|
|
210
|
|
Industrial Specialties
|
40
|
|
|
26
|
|
|
75
|
|
|
48
|
|
Acetyl Intermediates
|
177
|
|
|
96
|
|
|
299
|
|
|
174
|
|
Other Activities
3
|
(30
|
)
|
|
(37
|
)
|
|
(55
|
)
|
|
(63
|
)
|
Operating EBITDA
|
441
|
|
|
332
|
|
|
745
|
|
|
574
|
|
|
Three Months Ended
June 30, |
|
Six Months Ended
June 30,
|
||||||||
(in $ millions)
|
2011
|
2010
|
|
2011
|
|
2010
|
|||||
Advanced Engineered Materials
|
1
|
|
|
1
|
|
|
3
|
|
|
4
|
|
Consumer Specialties
|
3
|
|
|
—
|
|
|
7
|
|
|
—
|
|
Industrial Specialties
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Acetyl Intermediates
|
—
|
|
|
—
|
|
|
—
|
|
|
20
|
|
Other Activities
3
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Accelerated depreciation and amortization expense
|
4
|
|
|
1
|
|
|
10
|
|
|
24
|
|
Depreciation and amortization expense
2
|
68
|
|
|
63
|
|
|
134
|
|
|
129
|
|
Total depreciation and amortization expense
|
72
|
|
|
64
|
|
|
144
|
|
|
153
|
|
|
Volume
|
Price
|
Currency
|
Other
|
Total
|
|||||||||
|
(In percentages)
|
|||||||||||||
Advanced Engineered Materials
|
1
|
|
|
9
|
|
|
7
|
|
|
6
|
|
(1)
|
23
|
|
Consumer Specialties
|
(6
|
)
|
|
5
|
|
|
1
|
|
|
—
|
|
|
—
|
|
Industrial Specialties
|
3
|
|
|
12
|
|
|
7
|
|
|
—
|
|
|
22
|
|
Acetyl Intermediates
|
(9
|
)
|
|
20
|
|
|
6
|
|
|
—
|
|
|
17
|
|
Total Company
|
(6
|
)
|
|
16
|
|
|
6
|
|
|
—
|
|
(3)
|
16
|
|
|
Volume
|
Price
|
Currency
|
Other
|
Total
|
|||||||||
|
(In percentages)
|
|||||||||||||
Advanced Engineered Materials
|
4
|
|
|
8
|
|
|
3
|
|
|
5
|
|
(1)
|
20
|
|
Consumer Specialties
|
1
|
|
|
4
|
|
|
1
|
|
|
(1
|
)
|
(2)
|
5
|
|
Industrial Specialties
|
5
|
|
|
12
|
|
|
4
|
|
|
—
|
|
|
21
|
|
Acetyl Intermediates
|
(5
|
)
|
|
17
|
|
|
3
|
|
|
—
|
|
|
15
|
|
Total Company
|
(1
|
)
|
|
13
|
|
|
3
|
|
|
—
|
|
(3)
|
15
|
|
|
Six Months Ended
June 30, |
||||
(in $ millions)
|
2011
|
|
2010
|
||
Net cash provided by operating activities
|
316
|
|
|
219
|
|
Net cash provided by (used in) investing activities
1
|
(133
|
)
|
|
(275
|
)
|
Net cash used in financing activities
|
(198
|
)
|
|
(78
|
)
|
Exchange rate effects on cash
|
16
|
|
|
(39
|
)
|
Cash and cash equivalents at beginning of period
|
740
|
|
|
1,254
|
|
Cash and cash equivalents at end of period
|
741
|
|
|
1,081
|
|
|
Three Months Ended
June 30, |
|
Six Months Ended
June 30, |
||||||||
(in $ millions)
|
2011
|
|
2010
|
|
2011
|
|
2010
|
||||
Dividends from equity investments
|
45
|
|
|
35
|
|
|
118
|
|
|
92
|
|
Dividends from cost investments
|
79
|
|
|
72
|
|
|
79
|
|
|
72
|
|
Total
|
124
|
|
|
107
|
|
|
197
|
|
|
164
|
|
(in $ millions)
|
As of
June 30, 2011 |
|
As of
December 31, 2010 |
||
Short-term borrowings and current installments of long-term debt - third party and affiliates
|
155
|
|
|
228
|
|
Long-term debt
|
2,893
|
|
|
2,990
|
|
Total debt
|
3,048
|
|
|
3,218
|
|
Less: Cash and cash equivalents
|
741
|
|
|
740
|
|
Net Debt
|
2,307
|
|
|
2,478
|
|
|
Three Months Ended
June 30, |
|
Six Months Ended
June 30, |
||||||||||||||||||||
(in $ millions, except share and per share data)
|
2011
|
|
2010
|
|
2011
|
|
2010
|
||||||||||||||||
|
|
|
per
share
|
|
|
per
share
|
|
|
|
per
share
|
|
|
|
per
share
|
|||||||||
Earnings (loss) from continuing operations
|
205
|
|
|
1.29
|
|
|
163
|
|
|
1.03
|
|
|
343
|
|
|
2.16
|
|
|
176
|
|
|
1.11
|
|
Deduct: Income tax (provision) benefit
|
(75
|
)
|
|
|
|
(61
|
)
|
|
|
|
(117
|
)
|
|
|
|
(41
|
)
|
|
|
||||
Earnings (loss) from continuing operations before tax
|
280
|
|
|
|
|
224
|
|
|
|
|
460
|
|
|
|
|
217
|
|
|
|
||||
Other charges and other adjustments
1
|
33
|
|
|
|
|
(3
|
)
|
|
|
|
37
|
|
|
|
|
132
|
|
|
|
||||
Refinancing expense
|
3
|
|
|
|
|
—
|
|
|
|
|
3
|
|
|
|
|
—
|
|
|
|
||||
Interest rate swap dedesignation
|
3
|
|
|
|
|
—
|
|
|
|
|
3
|
|
|
|
|
—
|
|
|
|
||||
Adjusted earnings (loss) from continuing operations before tax
|
319
|
|
|
|
|
221
|
|
|
|
|
503
|
|
|
|
|
349
|
|
|
|
||||
Income tax (provision) benefit on adjusted earnings
2
|
(54
|
)
|
|
|
|
(44
|
)
|
|
|
|
(86
|
)
|
|
|
|
(70
|
)
|
|
|
||||
Less: Noncontrolling interests
|
—
|
|
|
|
|
—
|
|
|
|
|
—
|
|
|
|
|
—
|
|
|
|
||||
Adjusted earnings (loss) from continuing operations
|
265
|
|
|
1.66
|
|
|
177
|
|
|
1.12
|
|
|
417
|
|
|
2.62
|
|
|
279
|
|
|
1.76
|
|
Diluted shares (in millions)
3
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Weighted average shares outstanding
|
|
|
156.3
|
|
|
|
|
156.3
|
|
|
|
|
156.1
|
|
|
|
|
153.3
|
|
||||
Assumed conversion of preferred stock
|
|
|
—
|
|
|
|
|
—
|
|
|
|
|
—
|
|
|
|
|
3.1
|
|
||||
Dilutive restricted stock units
|
|
|
0.9
|
|
|
|
|
0.3
|
|
|
|
|
0.8
|
|
|
|
|
0.4
|
|
||||
Dilutive stock options
|
|
|
2.0
|
|
|
|
|
1.8
|
|
|
|
|
2.0
|
|
|
|
|
1.9
|
|
||||
Total diluted shares
|
|
|
159.2
|
|
|
|
|
158.4
|
|
|
|
|
158.9
|
|
|
|
|
158.7
|
|
Other Charges:
|
|
|
|
|
|
|
|
|
||||
|
Three Months Ended
June 30, |
|
Six Months Ended
June 30, |
|
||||||||
(in $ millions)
|
2011
|
|
2010
|
|
2011
|
|
2010
|
|
||||
Employee termination benefits
|
9
|
|
|
4
|
|
|
13
|
|
|
9
|
|
|
Plant/office closures
|
—
|
|
|
—
|
|
|
—
|
|
|
6
|
|
|
Ticona Kelsterbach plant relocation
|
16
|
|
|
4
|
|
|
29
|
|
|
10
|
|
|
Plumbing actions
|
(4
|
)
|
|
(2
|
)
|
|
(4
|
)
|
|
(14
|
)
|
|
Asset impairments
|
—
|
|
|
—
|
|
|
—
|
|
|
72
|
|
|
Resolution of commercial disputes
|
(2
|
)
|
|
—
|
|
|
(22
|
)
|
|
—
|
|
|
Other
|
(1
|
)
|
|
—
|
|
|
(1
|
)
|
|
—
|
|
|
Total
|
18
|
|
|
6
|
|
|
15
|
|
|
83
|
|
|
|
|
|
|
|
|
|
|
|
||||
Other Adjustments:
1
|
|
|
|
|
|
|
|
|
||||
|
Three Months Ended
June 30, |
|
Six Months Ended
June 30, |
Income Statement
|
||||||||
(in $ millions)
|
2011
|
|
2010
|
|
2011
|
|
2010
|
Classification
|
||||
Business optimization
|
2
|
|
|
3
|
|
|
5
|
|
|
7
|
|
Cost of sales / SG&A
|
Ticona Kelsterbach plant relocation
|
5
|
|
|
(2
|
)
|
|
2
|
|
|
(2
|
)
|
Cost of sales
|
Plant closures
|
7
|
|
|
—
|
|
|
13
|
|
|
9
|
|
Cost of sales / SG&A
|
Contract termination
|
—
|
|
|
—
|
|
|
—
|
|
|
22
|
|
Cost of sales
|
(Gain) loss on disposition of assets
|
(1
|
)
|
|
(14
|
)
|
|
—
|
|
|
(14
|
)
|
(Gain) loss on disposition
|
Write-off of other productive assets
|
(1
|
)
|
|
—
|
|
|
(1
|
)
|
|
17
|
|
Cost of sales
|
Other
|
3
|
|
|
4
|
|
|
3
|
|
|
10
|
|
Various
|
Total
|
15
|
|
|
(9
|
)
|
|
22
|
|
|
49
|
|
|
Total other charges and other adjustments
|
33
|
|
|
(3
|
)
|
|
37
|
|
|
132
|
|
|
|
Three Months Ended
June 30, |
|
Six Months Ended
June 30, |
||||||||
(in $ millions)
|
2011
|
2010
|
|
2011
|
|
2010
|
|||||
Net Sales
|
|
|
|
|
|
|
|
||||
Ticona Affiliates - Asia
1
|
393
|
|
|
379
|
|
|
804
|
|
|
750
|
|
Ticona Affiliates - Middle East
2
|
252
|
|
|
245
|
|
|
517
|
|
|
502
|
|
Infraserv Affiliates
3
|
550
|
|
|
488
|
|
|
1,057
|
|
|
1,018
|
|
Total
|
1,195
|
|
|
1,112
|
|
|
2,378
|
|
|
2,270
|
|
Operating Profit
|
|
|
|
|
|
|
|
||||
Ticona Affiliates - Asia
1
|
52
|
|
|
63
|
|
|
95
|
|
|
128
|
|
Ticona Affiliates - Middle East
2
|
104
|
|
|
118
|
|
|
206
|
|
|
232
|
|
Infraserv Affiliates
3
|
34
|
|
|
27
|
|
|
67
|
|
|
47
|
|
Total
|
190
|
|
|
208
|
|
|
368
|
|
|
407
|
|
Depreciation and Amortization
|
|
|
|
|
|
|
|
||||
Ticona Affiliates - Asia
1
|
15
|
|
|
20
|
|
|
37
|
|
|
41
|
|
Ticona Affiliates - Middle East
2
|
18
|
|
|
10
|
|
|
30
|
|
|
16
|
|
Infraserv Affiliates
3
|
29
|
|
|
24
|
|
|
55
|
|
|
50
|
|
Total
|
62
|
|
|
54
|
|
|
122
|
|
|
107
|
|
Affiliate EBITDA
|
|
|
|
|
|
|
|
||||
Ticona Affiliates - Asia
1
|
67
|
|
|
83
|
|
|
132
|
|
|
169
|
|
Ticona Affiliates - Middle East
2
|
122
|
|
|
128
|
|
|
236
|
|
|
248
|
|
Infraserv Affiliates
3
|
63
|
|
|
51
|
|
|
122
|
|
|
97
|
|
Total
|
252
|
|
|
262
|
|
|
490
|
|
|
514
|
|
Net Income
|
|
|
|
|
|
|
|
||||
Ticona Affiliates - Asia
1
|
37
|
|
|
31
|
|
|
64
|
|
|
75
|
|
Ticona Affiliates - Middle East
2
|
93
|
|
|
104
|
|
|
183
|
|
|
208
|
|
Infraserv Affiliates
3
|
23
|
|
|
20
|
|
|
50
|
|
|
35
|
|
Total
|
153
|
|
|
155
|
|
|
297
|
|
|
318
|
|
Net Debt
|
|
|
|
|
|
|
|
||||
Ticona Affiliates - Asia
1
|
101
|
|
|
94
|
|
|
101
|
|
|
94
|
|
Ticona Affiliates - Middle East
2
|
(78
|
)
|
|
(89
|
)
|
|
(78
|
)
|
|
(89
|
)
|
Infraserv Affiliates
3
|
308
|
|
|
200
|
|
|
308
|
|
|
200
|
|
Total
|
331
|
|
|
205
|
|
|
331
|
|
|
205
|
|
|
Three Months Ended
June 30, |
|
Six Months Ended
June 30, |
||||||||
(in $ millions)
|
2011
|
2010
|
|
2011
|
|
2010
|
|||||
Proportional Net Sales
|
|
|
|
|
|
|
|
||||
Ticona Affiliates - Asia
1
|
182
|
|
|
176
|
|
|
372
|
|
|
347
|
|
Ticona Affiliates - Middle East
2
|
63
|
|
|
61
|
|
|
129
|
|
|
126
|
|
Infraserv Affiliates
3
|
182
|
|
|
160
|
|
|
348
|
|
|
334
|
|
Total
|
427
|
|
|
397
|
|
|
849
|
|
|
807
|
|
Proportional Operating Profit
|
|
|
|
|
|
|
|
||||
Ticona Affiliates - Asia
1
|
25
|
|
|
29
|
|
|
45
|
|
|
59
|
|
Ticona Affiliates - Middle East
2
|
25
|
|
|
30
|
|
|
51
|
|
|
58
|
|
Infraserv Affiliates
3
|
12
|
|
|
8
|
|
|
22
|
|
|
15
|
|
Total
|
62
|
|
|
67
|
|
|
118
|
|
|
132
|
|
Proportional Depreciation and Amortization
|
|
|
|
|
|
|
|
||||
Ticona Affiliates - Asia
1
|
7
|
|
|
9
|
|
|
17
|
|
|
19
|
|
Ticona Affiliates - Middle East
2
|
5
|
|
|
2
|
|
|
8
|
|
|
4
|
|
Infraserv Affiliates
3
|
9
|
|
|
8
|
|
|
18
|
|
|
16
|
|
Total
|
21
|
|
|
19
|
|
|
43
|
|
|
39
|
|
Proportional Affiliate EBITDA
|
|
|
|
|
|
|
|
||||
Ticona Affiliates - Asia
1
|
32
|
|
|
38
|
|
|
62
|
|
|
78
|
|
Ticona Affiliates - Middle East
2
|
30
|
|
|
32
|
|
|
59
|
|
|
62
|
|
Infraserv Affiliates
3
|
21
|
|
|
16
|
|
|
40
|
|
|
31
|
|
Total
|
83
|
|
|
86
|
|
|
161
|
|
|
171
|
|
Equity in Net Earnings of Affiliates (as reported in the Consolidated Statement of Operations)
|
|
|
|
|
|
|
|
||||
Ticona Affiliates - Asia
1
|
17
|
|
|
15
|
|
|
30
|
|
|
36
|
|
Ticona Affiliates - Middle East
2
|
22
|
|
|
24
|
|
|
43
|
|
|
47
|
|
Infraserv Affiliates
3
|
7
|
|
|
6
|
|
|
16
|
|
|
11
|
|
Total
|
46
|
|
|
45
|
|
|
89
|
|
|
94
|
|
Proportional Affiliate EBITDA in Excess of Equity in Net Earnings of Affiliates
|
|
|
|
|
|
|
|
||||
Ticona Affiliates - Asia
1
|
15
|
|
|
23
|
|
|
32
|
|
|
42
|
|
Ticona Affiliates - Middle East
2
|
8
|
|
|
8
|
|
|
16
|
|
|
15
|
|
Infraserv Affiliates
3
|
14
|
|
|
10
|
|
|
24
|
|
|
20
|
|
Total
|
37
|
|
|
41
|
|
|
72
|
|
|
77
|
|
Proportional Net Debt
|
|
|
|
|
|
|
|
||||
Ticona Affiliates - Asia
1
|
45
|
|
|
43
|
|
|
45
|
|
|
43
|
|
Ticona Affiliates - Middle East
2
|
(20
|
)
|
|
(22
|
)
|
|
(20
|
)
|
|
(22
|
)
|
Infraserv Affiliates
3
|
100
|
|
|
66
|
|
|
100
|
|
|
66
|
|
Total
|
125
|
|
|
87
|
|
|
125
|
|
|
87
|
|
in millions (except EPS)
|
2nd Qtr 2011
|
2nd Qtr 2010
|
||||
Net Sales
|
$
|
1,753
|
|
$
|
1,517
|
|
Proportional Net Sales of Affiliates
|
$
|
427
|
|
$
|
397
|
|
Total:
|
$
|
2,180
|
|
$
|
1,914
|
|
Operating Profit/(Loss)
|
$
|
209
|
|
$
|
156
|
|
Adjusted EPS
|
$
|
1.66
|
|
$
|
1.12
|
|
Operating EBITDA
|
$
|
441
|
|
$
|
332
|
|
Proportional Affiliate EBITDA in excess of Equity in net earnings of affiliates*
|
$
|
37
|
|
$
|
41
|
|
Total:
|
$
|
478
|
|
$
|
373
|
|
•
|
Doubled capacity of vinyl acetate ethylene (VAE) in Nanjing to meet increased global demand in innovative vinyl-based emulsions
|
•
|
Announced near doubling of Celstran
®
long-fiber reinforced thermoplastics (LFT) production capacity in Nanjing by the end of 2011
|
•
|
Announced plans to accelerate industrial ethanol production in China, adding 200,000 tons of ethanol in the Nanjing facility by mid-2013
|
•
|
Broke ground in Clear Lake, Texas for ethanol technology development unit; expected to be operational by mid-2012
|
•
|
Intend to construct a new research and development facility in Clear Lake to further advance TCX
™
breakthrough ethanol technology
|
•
|
Independent, third-party engineering firms, Fluor and WorleyParsons, validate Celanese’s TCX
™
advanced ethanol technology
|
•
|
Provides an additional measure of confidence for customers and investors
|
•
|
Validation details and new, comprehensive Q&A can be found at www.CelaneseTCX.com
|
in millions
|
2nd Qtr 2011
|
2nd Qtr 2010
|
||||
Net Sales
|
$
|
346
|
|
$
|
282
|
|
Operating EBITDA
|
$
|
107
|
|
$
|
98
|
|
Factors affectingchange in Net Sales
|
|
|
||||
Volume
|
1%
|
|
||||
Price
|
9%
|
|
||||
Currency
|
7%
|
|
||||
Other
|
6%
|
|
||||
Total
|
23%
|
|
in millions
|
2nd Qtr 2011
|
2nd Qtr 2010
|
||||
Net Sales
|
$
|
291
|
|
$
|
291
|
|
Operating EBITDA
|
$
|
147
|
|
$
|
149
|
|
Factors affecting change in Net Sales
|
|
|
||||
|
|
|
||||
Volume
|
(6)%
|
|
||||
Price
|
5%
|
|
||||
Currency
|
1%
|
|
||||
Other
|
—
|
|
||||
Total
|
—
|
|
in millions
|
2nd Qtr 2011
|
2nd Qtr 2010
|
||||
Net Sales
|
$
|
329
|
|
$
|
269
|
|
Operating EBITDA
|
$
|
40
|
|
$
|
26
|
|
Factors affecting change in Net Sales
|
|
|
||||
Volume
|
3%
|
|
||||
Price
|
12%
|
|
||||
Currency
|
7%
|
|
||||
Other
|
—
|
|
||||
Total
|
22%
|
|
in millions
|
2nd Qtr 2011
|
2nd Qtr 2010
|
||||
Net Sales
|
$
|
914
|
|
$
|
782
|
|
Operating EBITDA
|
$
|
177
|
|
$
|
96
|
|
Factors affecting change in Net Sales
|
|
|
||||
Volume
|
(9)%
|
|
||||
Price
|
20%
|
|
||||
Currency
|
6%
|
|
||||
Other
|
—
|
|
||||
Total
|
17%
|
|
Adjusted Free Cash Flow
|
|
|
$ in millions
|
2nd Qtr 2011
|
2nd Qtr 2010
|
Net cash provided by operating activities
|
$184
|
$164
|
Adjustments to operating cash for discontinued operations
|
$(4)
|
$(5)
|
Net cash provided by operating activities from continuing operations
|
$180
|
$159
|
Less: Capital expenditures
|
$(74)
|
$(34)
|
Add: Other charges and adjustments1
|
$(1)
|
$(5)
|
Adjusted Free Cash Flow2
|
$105
|
$120
|
Available Cash
|
$ in millions
|
||
Cash (as of 06/30/2011)
|
$
|
741
|
|
Operating Cash
|
~($100 - $200)
|
|
|
Cash Available for Strategic Purposes
|
~$600
|
|
|
2011E Adjusted Free Cash Outflows(off EBITDA Base)
|
$ in millions
|
||
Cash Taxes
|
$65 – $90
|
|
|
Capital Expenditures
|
$300 – $350
|
|
|
Reserve/Other
|
$100 – $120
|
|
|
Net Interest
|
$220 – $230
|
|
|
Pension
|
$120 – $140
|
|
|
Working Capital
|
$140 – $170
|
|
|
Adjusted Free Cash Outflows*
|
$945 – $1,100
|
|
Three Months Ended
|
|
|
|
|
|
|
||||
June 30,
|
|
|
|
|
|
|
||||
(in $ millions)
|
2011
|
2010
|
|
|
2011
|
|
2010
|
|
||
Net Sales
|
|
|
|
|
|
|
||||
Advanced Engineered Materials
|
346
|
|
282
|
|
|
Business Operating EBITDA
|
|
|
||
Consumer Specialties
|
291
|
|
291
|
|
|
Advanced Engineered Materials
|
68
|
|
59
|
|
Industrial Specialties
|
329
|
|
269
|
|
|
Consumer Specialties
|
68
|
|
76
|
|
Acetyl Intermediates
|
914
|
|
782
|
|
|
Industrial Specialties
|
40
|
|
26
|
|
Other Activities 1
|
—
|
|
1
|
|
|
Acetyl Intermediates
|
175
|
|
94
|
|
Intersegment eliminations
|
(127
|
)
|
(108
|
)
|
|
Other Activities 1
|
(41
|
)
|
(39
|
)
|
Total
|
1,753
|
|
1,517
|
|
|
Total
|
310
|
|
216
|
|
Operating Profit (Loss)
|
|
|
|
Equity Earnings, Cost - Dividend Income and Other Income (Expense)
|
|
|
||||
Advanced Engineered Materials
|
27
|
|
40
|
|
|
Advanced Engineered Materials
|
39
|
|
39
|
|
Consumer Specialties
|
48
|
|
64
|
|
|
Consumer Specialties
|
79
|
|
73
|
|
Industrial Specialties
|
28
|
|
16
|
|
|
Industrial Specialties
|
—
|
|
—
|
|
Acetyl Intermediates
|
152
|
|
68
|
|
|
Acetyl Intermediates
|
2
|
|
2
|
|
Other Activities 1
|
(46
|
)
|
(32
|
)
|
|
Other Activities 1
|
11
|
|
2
|
|
Total
|
209
|
|
156
|
|
|
Total
|
131
|
|
116
|
|
Other Charges and Other Adjustments 2
|
|
|
|
Operating EBITDA
|
|
|
||||
Advanced Engineered Materials
|
22
|
|
2
|
|
|
Advanced Engineered Materials
|
107
|
|
98
|
|
Consumer Specialties
|
10
|
|
3
|
|
|
Consumer Specialties
|
147
|
|
149
|
|
Industrial Specialties
|
—
|
|
—
|
|
|
Industrial Specialties
|
40
|
|
26
|
|
Acetyl Intermediates
|
(2
|
)
|
2
|
|
|
Acetyl Intermediates
|
177
|
|
96
|
|
Other Activities 1
|
3
|
|
(10
|
)
|
|
Other Activities 1
|
(30
|
)
|
(37
|
)
|
Total
|
33
|
|
(3
|
)
|
|
Total
|
441
|
|
332
|
|
Depreciation and Amortization Expense 3
|
|
|
|
|
|
|
||||
Advanced Engineered Materials
|
19
|
|
17
|
|
|
|
|
|
||
Consumer Specialties
|
10
|
|
9
|
|
|
|
|
|
||
Industrial Specialties
|
12
|
|
10
|
|
|
|
|
|
||
Acetyl Intermediates
|
25
|
|
24
|
|
|
|
|
|
||
Other Activities 1
|
2
|
|
3
|
|
|
|
|
|
||
Total
|
68
|
|
63
|
|
|
|
|
|
||
1 Other Activities includes corporate selling, general and administrative expenses and the results from captive insurance companies.
|
||||||||||
2 See Table 7 for details.
|
||||||||||
3 Excludes accelerated depreciation and amortization expense associated with plant closures included in Other Charges and Other Adjustments above. See Table 1A for details.
|
|
Three Months Ended June 30,
|
|||
(in $ millions)
|
2011
|
2010
|
||
Net earnings (loss) attributable to Celanese Corporation
|
203
|
|
160
|
|
(Earnings) loss from discontinued operations
|
2
|
|
3
|
|
Interest income
|
—
|
|
(1
|
)
|
Interest expense
|
57
|
|
49
|
|
Refinancing expense
|
3
|
|
—
|
|
Income tax provision (benefit)
|
75
|
|
61
|
|
Depreciation and amortization expense 2
|
68
|
|
63
|
|
Other charges (gains), net 1
|
18
|
|
6
|
|
Other adjustments 1
|
15
|
|
(9
|
)
|
Operating EBITDA
|
441
|
|
332
|
|
Detail by Segment
|
|
|
||
Advanced Engineered Materials
|
107
|
|
98
|
|
Consumer Specialties
|
147
|
|
149
|
|
Industrial Specialties
|
40
|
|
26
|
|
Acetyl Intermediates
|
177
|
|
96
|
|
Other Activities 3
|
(30
|
)
|
(37
|
)
|
Operating EBITDA
|
441
|
|
332
|
|
1 See Table 7 for details.
|
|
|
||
2 Excludes accelerated depreciation and amortization expense associated with plant closures as detailed in the table below and included in Other adjustments above.
|
||||
|
Three Months Ended June 30,
|
|||
(in $ millions)
|
2011
|
2010
|
||
Advanced Engineered Materials
|
1
|
|
1
|
|
Consumer Specialties
|
3
|
|
—
|
|
Industrial Specialties
|
—
|
|
—
|
|
Acetyl Intermediates
|
—
|
|
—
|
|
Other Activities 3
|
—
|
|
—
|
|
Accelerated depreciation and amortization expense
|
4
|
|
1
|
|
Depreciation and amortization expense 2
|
68
|
|
63
|
|
Total depreciation and amortization expense
|
72
|
|
64
|
|
3 Other Activities includes corporate selling, general and administrative expenses and the results from captive insurance companies.
|
|
Three Months Ended June 30,
|
|||||||
(in $ millions, except share and per share data)
|
2011
|
|
2010
|
|
||||
|
|
per share
|
|
per share
|
||||
Earnings (loss) from continuing operations
|
205
|
|
1.29
|
|
163
|
|
1.03
|
|
Deduct: Income tax (provision) benefit
|
(75
|
)
|
|
(61
|
)
|
|
||
Earnings (loss) from continuing operations before tax
|
280
|
|
|
224
|
|
|
||
Other charges and other adjustments 1
|
33
|
|
|
(3
|
)
|
|
||
Refinancing expense
|
3
|
|
|
—
|
|
|
||
Interest rate swap dedesignation
|
3
|
|
|
—
|
|
|
||
Adjusted earnings (loss) from continuing operations before tax
|
319
|
|
|
221
|
|
|
||
Income tax (provision) benefit on adjusted earnings 2
|
(54
|
)
|
|
(44
|
)
|
|
||
Less: Noncontrolling interests
|
—
|
|
|
—
|
|
|
||
Adjusted earnings (loss) from continuing operations
|
265
|
|
1.66
|
177
|
|
1.12
|
|
|
Diluted shares (in millions) 3
|
|
|
|
|
||||
Weighted average shares outstanding
|
|
156.3
|
|
|
156.3
|
|
||
Assumed conversion of preferred stock
|
|
—
|
|
|
—
|
|
||
Dilutive restricted stock units
|
|
0.9
|
|
|
0.3
|
|
||
Dilutive stock options
|
|
2.0
|
|
|
1.8
|
|
||
Total diluted shares
|
|
159.2
|
|
|
158.4
|
|
||
1 See Table 7 for details.
|
|
|
|
|
||||
2 The adjusted effective tax rate is 17% for the three and six months ended June 30, 2011 and 20% for the three and six months ended June 30, 2010.
|
||||||||
3 Potentially dilutive shares are included in the adjusted earnings per share calculation when adjusted earnings are positive.
|
Other Charges:
|
Three Months Ended June 30,
|
|
|||
(in $ millions)
|
2011
|
2010
|
|
||
Employee termination benefits
|
9
|
|
4
|
|
|
Plant/office closures
|
—
|
|
—
|
|
|
Ticona Kelsterbach plant relocation
|
16
|
|
4
|
|
|
Plumbing actions
|
(4
|
)
|
(2
|
)
|
|
Asset impairments
|
—
|
|
—
|
|
|
Resolution of commercial disputes
|
(2
|
)
|
—
|
|
|
Other
|
(1
|
)
|
—
|
|
|
Total
|
18
|
|
6
|
|
|
Other Adjustments: 1
|
Three Months Ended June 30,
|
|
|||
(in $ millions)
|
2011
|
2010
|
Income Statement Classification
|
||
Business optimization
|
2
|
|
3
|
|
Cost of sales / SG&A
|
Ticona Kelsterbach plant relocation
|
5
|
|
(2
|
)
|
Cost of sales
|
Plant closures
|
7
|
|
—
|
|
Cost of sales / SG&A
|
Contract termination
|
—
|
|
—
|
|
Cost of sales
|
(Gain) loss on disposition of assets
|
(1
|
)
|
(14
|
)
|
(Gain) loss on disposition
|
Write-off of other productive assets
|
(1
|
)
|
—
|
|
Cost of sales
|
Other
|
3
|
|
4
|
|
Various
|
Total
|
15
|
|
(9
|
)
|
|
Total other charges and other adjustments
|
33
|
|
(3
|
)
|
|
1 These items are included in net earnings but not included in other charges.
|
|
|
|
in millions
|
AEM
|
CS
|
IS
|
AI
|
Other
|
Total
|
Income Statement Classification
|
||||||
Employee termination benefits
|
4
|
|
3
|
|
—
|
|
1
|
|
1
|
|
9
|
|
|
Plant/office closures
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
|
Ticona Kelsterbach plant relocation
|
16
|
|
—
|
|
—
|
|
—
|
|
—
|
|
16
|
|
|
Plumbing actions
|
(4
|
)
|
—
|
|
—
|
|
—
|
|
—
|
|
(4
|
)
|
|
Asset impairments
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
|
Insurance recoveries
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
|
Resolution of commercial disputes
|
—
|
|
—
|
|
—
|
|
(2
|
)
|
—
|
|
(2
|
)
|
|
Other
|
—
|
|
—
|
|
—
|
|
(1
|
)
|
—
|
|
(1
|
)
|
|
Total other charges
|
16
|
|
3
|
|
—
|
|
(2
|
)
|
1
|
|
18
|
|
|
Business optimization
|
—
|
|
—
|
|
—
|
|
—
|
|
2
|
|
2
|
|
Cost of Sales / SG&A
|
Ticona Kelsterbach plant relocation
|
5
|
|
—
|
|
—
|
|
—
|
|
—
|
|
5
|
|
Cost of Sales
|
Plant closures
|
1
|
|
4
|
|
—
|
|
2
|
|
—
|
|
7
|
|
Cost of Sales / SG&A
|
Contract termination
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
Cost of Sales
|
(Gain)/loss on disposition of assets
|
—
|
|
—
|
|
—
|
|
(1
|
)
|
—
|
|
(1
|
)
|
(Gain) loss on disposition
|
Write-off of other productive assets
|
—
|
|
—
|
|
—
|
|
(1
|
)
|
—
|
|
(1
|
)
|
Cost of Sales
|
Other
|
—
|
|
3
|
|
—
|
|
—
|
|
—
|
|
3
|
|
Various 1
|
Total other adjustments
|
6
|
|
7
|
|
—
|
|
—
|
|
2
|
|
15
|
|
|
Total other charges and other adjustments
|
22
|
|
10
|
|
—
|
|
(2
|
)
|
3
|
|
33
|
|
|
1 The following summarizes the income statement classification of the other adjustments:
|
|
|
|
|
|
|
|
||||||
Cost of Sales
|
—
|
|
3
|
|
—
|
|
—
|
|
—
|
|
3
|
|
|
Selling, General & Administrative
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
|
Equity in net (earnings) loss of affiliates
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
|
Other income/expense, net
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
|
Total other
|
—
|
|
3
|
|
—
|
|
—
|
|
—
|
|
3
|
|
|
|
Three Months Ended June 30,
|
|
Six Months Ended June 30,
|
||||||
(in $ millions)
|
2011
|
2010
|
|
2011
|
2010
|
||||
Net Sales
|
|
|
|
|
|
||||
Ticona Affiliates - Asia 1
|
393
|
|
379
|
|
|
804
|
|
750
|
|
Ticona Affiliates - Middle East 2
|
252
|
|
245
|
|
|
517
|
|
502
|
|
Infraserv Affiliates 3
|
550
|
|
488
|
|
|
1,057
|
|
1,018
|
|
Total
|
1,195
|
|
1,112
|
|
|
2,378
|
|
2,270
|
|
Operating Profit
|
|
|
|
|
|
||||
Ticona Affiliates - Asia 1
|
52
|
|
63
|
|
|
95
|
|
128
|
|
Ticona Affiliates - Middle East 2
|
104
|
|
118
|
|
|
206
|
|
232
|
|
Infraserv Affiliates 3
|
34
|
|
27
|
|
|
67
|
|
47
|
|
Total
|
190
|
|
208
|
|
|
368
|
|
407
|
|
Depreciation and Amortization
|
|
|
|
|
|
||||
Ticona Affiliates - Asia 1
|
15
|
|
20
|
|
|
37
|
|
41
|
|
Ticona Affiliates - Middle East 2
|
18
|
|
10
|
|
|
30
|
|
16
|
|
Infraserv Affiliates 3
|
29
|
|
24
|
|
|
55
|
|
50
|
|
Total
|
62
|
|
54
|
|
|
122
|
|
107
|
|
Affiliate EBITDA
|
|
|
|
|
|
||||
Ticona Affiliates - Asia 1
|
67
|
|
83
|
|
|
132
|
|
169
|
|
Ticona Affiliates - Middle East 2
|
122
|
|
128
|
|
|
236
|
|
248
|
|
Infraserv Affiliates 3
|
63
|
|
51
|
|
|
122
|
|
97
|
|
Total
|
252
|
|
262
|
|
|
490
|
|
514
|
|
Net Income
|
|
|
|
|
|
||||
Ticona Affiliates - Asia 1
|
37
|
|
31
|
|
|
64
|
|
75
|
|
Ticona Affiliates - Middle East 2
|
93
|
|
104
|
|
|
183
|
|
208
|
|
Infraserv Affiliates 3
|
23
|
|
20
|
|
|
50
|
|
35
|
|
Total
|
153
|
|
155
|
|
|
297
|
|
318
|
|
Net Debt
|
|
|
|
|
|
||||
Ticona Affiliates - Asia 1
|
101
|
|
94
|
|
|
101
|
|
94
|
|
Ticona Affiliates - Middle East 2
|
(78
|
)
|
(89
|
)
|
|
(78
|
)
|
(89
|
)
|
Infraserv Affiliates 3
|
308
|
|
200
|
|
|
308
|
|
200
|
|
Total
|
331
|
|
205
|
|
|
331
|
|
205
|
|
1 Ticona Affiliates - Asia accounted for using the equity method includes Polyplastics (45%), Korean Engineering Plastics (50%), Fortron Industries (50%), Una SA (50%). Una SA was divested during the three months ended March 31, 2011.
|
|||||||||
2 Ticona Affiliates - Middle East accounted for using the equity method includes National Methanol Company (Ibn Sina) (25%).
|
|||||||||
3 Infraserv Affiliates accounted for using the equity method includes Infraserv Hoechst (32%), Infraserv Gendorf (39%) and Infraserv Knapsack (27%).
|