SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
Current Report
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): October 4, 2007
CELANESE CORPORATION
(Exact Name of Registrant as specified in its charter)
         
DELAWARE   001-32410   98-0420726
         
(State or other jurisdiction
of incorporation) 		  (Commission File
Number) 		  (IRS Employer
Identification No.)
1601 West LBJ Freeway, Dallas, Texas 75234-6034
(Address of Principal Executive Offices) (Zip Code)
Registrant’s telephone number, including area code: (972) 443-4000
Not Applicable
(Former name or former address, if changed since last report):
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):
o   Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
 
o   Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
 
o   Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
 
o   Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
 
 

 

 

Item 2.02. Results of Operations and Financial Condition
Item 7.01 Regulation FD Disclosure
     On December 13, 2006, the Company announced a realignment of its businesses to drive strategic growth, group businesses with similar dynamics and growth opportunities, and increase transparency. We will begin reporting our financial results in the new segments beginning with our third quarter 2007 results to be released later this month. In connection with this effort, we are providing quarterly historical financial data in the new reporting segments for fiscal years 2005 and 2006 and for the first two fiscal quarters of 2007. We are including (i) the slide presentation we intend to give to certain of our investors simultaneously with the release of this Current Report and (ii) the accompanying financial tables to provide more detail and to reconcile certain non-GAAP performance measures used in the slide presentation, as Exhibits 99.1 and 99.2, respectively, to this Current Report. The exhibits are incorporated herein solely for purposes of these furnished disclosures. The slide presentation and accompanying financial tables may also be accessed on our website at www.celanese.com through the “Investor” link.
Item 9.01 Financial Statements and Exhibits.
     (c) Exhibits
     
Exhibit Number   Description
 
   
99.1
  Selected Quarterly Resegmented Financial Data, including reconciliation of non-GAAP financial measures*
 
   
99.2
  Slide Presentation dated October 4, 2007*
 
*   The information in this Current Report, including the exhibits attached hereto, is being furnished and shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “ Exchange Act ”), or otherwise subject to the liabilities of such section. The information in this Current Report, including the exhibits, shall not be incorporated by reference into any filing under the Securities Act of 1933, as amended or the Exchange Act, regardless of any incorporation by reference language in any such filing. This Current Report will not be deemed an admission as to the materiality of any information in this Current Report that is required to be disclosed solely by Regulation FD.

 

 

SIGNATURES
     Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
         
  CELANESE CORPORATION
  		 
  By:   /s/ Steven M. Sterin    
  Name:   Steven M. Sterin   
  Title:   Senior Vice President and Chief Financial
Officer  		 
 
Date: October 4, 2007

 

 

Exhibit Index
     
Exhibit Number   Description
 
   
99.1
  Selected Quarterly Resegmented Financial Data, including reconciliation of non-GAAP financial measures*
 
   
99.2
  Slide Presentation dated October 4, 2007*
 
*   The information in this Current Report, including the exhibits attached hereto, is being furnished and shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “ Exchange Act ”), or otherwise subject to the liabilities of such section. The information in this Current Report, including the exhibits, shall not be incorporated by reference into any filing under the Securities Act of 1933, as amended or the Exchange Act, regardless of any incorporation by reference language in any such filing. This Current Report will not be deemed an admission as to the materiality of any information in this Current Report that is required to be disclosed solely by Regulation FD.

 

 

Exhibit 99.1
Segment Data and Reconciliation of Operating Profit (Loss) to Operating EBITDA — a Non-U.S. GAAP Measure — Unaudited
                                           
    Three Months Ended       Twelve Months Ended  
    March 31,     June 30,     September 30,     December 31,       December 31,  
(in $ millions)   2005     2005     2005     2005       2005  
       
Net Sales
                                         
Advanced Engineered Materials
    239       223       212       213         887  
Consumer Specialties
    212       219       208       200         839  
Industrial Specialties
    206       263       305       286         1,060  
Acetyl Intermediates
    690       707       731       783         2,911  
Other Activities 1
    12       8       6       6         32  
Intersegment eliminations
    (95 )     (99 )     (113 )     (153 )       (460 )
 
                               
Total
    1,264       1,321       1,349       1,335         5,269  
       
 
                                         
Operating Profit (Loss)
                                         
Advanced Engineered Materials
    39       5       18       (2 )       60  
Consumer Specialties
    24       27       21       56         128  
Industrial Specialties
    —       5       5       (14 )       (4 )
Acetyl Intermediates
    143       121       76       146         486  
Other Activities 1
    (83 )     (33 )     (38 )     (30 )       (184 )
 
                               
Total
    123       125       82       156         486  
       
 
                                         
Equity Earnings and Other Income/(Expense) 2
                                         
Advanced Engineered Materials
    12       16       15       11         54  
Consumer Specialties
    —       2       (2 )     3         3  
Industrial Specialties
    —       —       —       —         —  
Acetyl Intermediates
    12       (10 )     32       35         69  
Other Activities 1
    (8 )     18       (2 )     5         13  
 
                               
Total
    16       26       43       54         139  
       
 
                                         
Other Charges and Other Adjustments 3
                                         
Advanced Engineered Materials
    1       20       4       6         31  
Consumer Specialties
    1       —       10       (24 )       (13 )
Industrial Specialties
    —       2       8       1         11  
Acetyl Intermediates
    19       11       15       (30 )       15  
Other Activities 1
    45       (10 )     2       3         40  
 
                               
Total
    66       23       39       (44 )       84  
       
 
                                         
Depreciation and Amortization Expense
                                         
Advanced Engineered Materials
    15       14       13       18         60  
Consumer Specialties
    12       12       7       11         42  
Industrial Specialties
    12       11       7       17         47  
Acetyl Intermediates
    17       24       35       34         110  
Other Activities 1
    2       2       4       1         9  
 
                               
Total
    58       63       66       81         268  
       
 
                                         
Operating EBITDA*
                                         
Advanced Engineered Materials
    67       55       50       33         205  
Consumer Specialties
    37       41       36       46         160  
Industrial Specialties
    12       18       20       4         54  
Acetyl Intermediates
    191       146       158       185         680  
Other Activities 1
    (44 )     (23 )     (34 )     (21 )       (122 )
 
                               
Total
    263       237       230       247         977  
       
*Quarterly earnings for the discontinued Edmonton Methanol operations have been included in Other Charges and Other Adjustments.
    18       10       4       3         35  
 
                                         
Oxo Alcohol Divestiture
    22       28       22       9         81  
 
                               
Total Operating EBITDA — as reported
    285       265       252       256         1,058  
       
1   Other Activities primarily includes corporate selling, general and administrative expenses and the results from captive insurance companies.
 
2   Includes equity earnings from affiliates, dividends from cost investments and other income/(expense).
 
3   Excludes adjustments to minority interest, net interest, taxes, depreciation, amortization and discontinued operations.

 

Segment Data and Reconciliation of Operating Profit (Loss) to Operating EBITDA — a Non-U.S. GAAP Measure — Unaudited
                                           
    Three Months Ended       Twelve Months Ended  
    March 31,     June 30,     September 30,     December 31,       December 31,  
(in $ millions)   2006     2006     2006     2006       2006  
       
Net Sales
                                         
Advanced Engineered Materials
    231       230       230       224         915  
Consumer Specialties
    216       223       213       224         876  
Industrial Specialties
    311       326       335       309         1,281  
Acetyl Intermediates
    809       839       872       831         3,351  
Other Activities 1
    5       6       5       6         22  
Intersegment eliminations
    (152 )     (167 )     (184 )     (164 )       (667 )
 
                               
Total
    1,420       1,457       1,471       1,430         5,778  
       
 
                                         
Operating Profit (Loss)
                                         
Advanced Engineered Materials
    41       38       37       29         145  
Consumer Specialties
    42       47       35       41         165  
Industrial Specialties
    15       3       17       9         44  
Acetyl Intermediates
    103       120       126       107         456  
Other Activities 1
    (45 )     (56 )     (43 )     (46 )       (190 )
 
                               
Total
    156       152       172       140         620  
       
 
                                         
Equity Earnings and Other Income/(Expense) 2
                                         
Advanced Engineered Materials
    14       14       14       13         55  
Consumer Specialties
    —       22       —       2         24  
Industrial Specialties
    —       (1 )     —       —         (1 )
Acetyl Intermediates
    7       15       18       23         63  
Other Activities 1
    3       (3 )     10       12         22  
 
                               
Total
    24       47       42       50         163  
       
 
                                         
Other Charges and Other Adjustments 3
                                         
Advanced Engineered Materials
    (2 )     (2 )     —       (1 )       (5 )
Consumer Specialties
    —       —       —       —         -  
Industrial Specialties
    1       10       3       2         16  
Acetyl Intermediates
    12       14       10       16         52  
Other Activities 1
    13       15       3       (2 )       29  
 
                               
Total
    24       37       16       15         92  
       
 
                                         
Depreciation and Amortization Expense
                                         
Advanced Engineered Materials
    16       16       16       17         65  
Consumer Specialties
    11       9       9       10         39  
Industrial Specialties
    14       15       16       14         59  
Acetyl Intermediates
    23       32       23       23         101  
Other Activities 1
    1       2       2       —         5  
 
                               
Total
    65       74       66       64         269  
       
 
                                         
Operating EBITDA*
                                         
Advanced Engineered Materials
    69       66       67       58         260  
Consumer Specialties
    53       78       44       53         228  
Industrial Specialties
    30       27       36       25         118  
Acetyl Intermediates
    145       181       177       169         672  
Other Activities 1
    (28 )     (42 )     (28 )     (36 )       (134 )
 
                               
Total
    269       310       296       269         1,144  
       
*Quarterly earnings for the discontinued Edmonton Methanol operations have been included in Other Charges and Other Adjustments.
    14       12       10       16         52  
 
                                         
Oxo Alcohol Divestiture**
    —       —       26       39         65  
 
                               
Total Operating EBITDA — as reported
    269       310       322       308         1,209  
       
**   For comparative purposes. The Oxo Alcohol Divestiture was reflected as a discontinued operation for the three months ended March 31, 2006 and June 30, 2006 in conjunction with reporting the results for the first and second quarter of 2007.
 
1   Other Activities primarily includes corporate selling, general and administrative expenses and the results from captive insurance companies.
 
2   Includes equity earnings from affiliates, dividends from cost investments and other income/(expense).
 
3   Excludes adjustments to minority interest, net interest, taxes, depreciation, amortization and discontinued operations.

 

Segment Data and Reconciliation of Operating Profit (Loss) to Operating EBITDA — a Non-U.S. GAAP Measure — Unaudited
                           
    Three Months Ended       Six Months Ended  
    March 31,     June 30,       June 30,  
(in $ millions)   2007     2007       2007  
       
Net Sales
                         
Advanced Engineered Materials
    262       257         519  
Consumer Specialties
    269       281         550  
Industrial Specialties
    346       355         701  
Acetyl Intermediates
    839       834         1,673  
Other Activities 1
    1       (5 )       (4 )
Intersegment eliminations
    (162 )     (166 )       (328 )
 
                   
Total
    1,555       1,556         3,111  
       
 
                         
Operating Profit (Loss)
                         
Advanced Engineered Materials
    36       32         68  
Consumer Specialties
    48       48         96  
Industrial Specialties
    12       (1 )       11  
Acetyl Intermediates
    132       91         223  
Other Activities 1
    (22 )     (99 )       (121 )
 
                   
Total
    206       71         277  
       
 
                         
Equity Earnings and Other Income/(Expense) 2
                         
Advanced Engineered Materials
    14       16         30  
Consumer Specialties
    —       35         35  
Industrial Specialties
    —       —         -  
Acetyl Intermediates
    5       18         23  
Other Activities 1
    4       (2 )       2  
 
                   
Total
    23       67         90  
       
 
                         
Other Charges and Other Adjustments 3
                         
Advanced Engineered Materials
    —       5         5  
Consumer Specialties
    1       8         9  
Industrial Specialties
    —       19         19  
Acetyl Intermediates
    46       11         57  
Other Activities 1
    4       72         76  
 
                   
Total
    51       115         166  
       
 
                         
Depreciation and Amortization Expense
                         
Advanced Engineered Materials
    17       17         34  
Consumer Specialties
    11       13         24  
Industrial Specialties
    14       16         30  
Acetyl Intermediates
    24       26         50  
Other Activities 1
    2       1         3  
 
                   
Total
    68       73         141  
       
 
                         
Operating EBITDA*
                         
Advanced Engineered Materials
    67       70         137  
Consumer Specialties
    60       104         164  
Industrial Specialties
    26       34         60  
Acetyl Intermediates
    207       146         353  
Other Activities 1
    (12 )     (28 )       (40 )
 
                   
Total
    348       326         674  
       
*Quarterly earnings for the discontinued Edmonton Methanol operations have been included in Other Charges and Other Adjustments.
    33       (2 )       31  
       
1   Other Activities primarily includes corporate selling, general and administrative expenses and the results from captive insurance companies.
 
2   Includes equity earnings from affiliates, dividends from cost investments and other income/(expense).
 
3   Excludes adjustments to minority interest, net interest, taxes, depreciation, amortization and discontinued operations.

 

Exhibit 99.2
Celanese Resegmentation

 

Reconciliation and Use of Non-GAAP Measures to U.S. GAAP and Unaudited Results

 

Formaldehyde Anhydride and esters VAM Acetic Acid Differentiated Intermediates Specialty Products Raw Materials Building Block Celanese historical reporting segments Previous Segments Performance Products Chemical Products Acetate Products Technical Polymers Ticona Engineered Plastics Nutrinova Emulsions Acetate Engineered Plastics Nutrinova Emulsions Acetate Raw Materials Engineered Plastics Nutrinova Emulsions/PVOH Acetate

 

Acetyl Intermediates Formaldehyde VAM Acetic Acid Differentiated Intermediates Specialty Products Building Block Celanese resegmentation: Realigning the businesses to accelerate growth Raw Materials Advanced Engineered Materials (AEM) Industrial Specialties (IS) Anhydride and esters Consumer Specialties (CS) Engineered Plastics Emulsions/PVOH Nutrinova Acetate AT Plastics

 

New Celanese reporting segment highlights Advanced Engineered Materials Represents previously reported 'Technical Polymers Ticona' segment Consumer Specialties Combines previously reported 'Acetate Products' and 'Performance Products' segments Transfer Price adjustment consistent with Industrial Specialties (market-based) Industrial Specialties Combines Emulsions/PVOH and AT Plastics businesses which were previously reported in Chemical Products and Other segments, respectively Transfer Price adjustment consistent with Consumer Specialties (market-based) Acetyl Intermediates Represents previously reported Chemical Products segment excluding the Emulsions and PVOH businesses Transfer Price adjustment to Consumer and Industrial Specialties (market-based) Other Primarily represents Corporate activities and the results from Captive Insurance companies

 

Previous Reporting Segments 2005 Sales Walkforward 2005 Sales1 Advanced Engineered Materials Consumer Specialties Industrial Specialties Acetyl Intermediates Other Intersegment Eliminations Total Chemical Products 948 2,911 (324) 3,535 Technical Polymers Ticona 887 887 Acetate Products 659 659 Performance Products 180 180 Other 112 32 144 Intersegment Eliminations (136) (136) Total 887 839 1,060 2,911 32 (460) 5,269 New Reporting Segments 1Excludes Sales from the oxo alcohol and Edmonton methanol businesses which were discontinued in 2007.

 

2005 Operating EBITDA Walkforward 20051 Operating EBITDA Advanced Engineered Materials Consumer Specialties Industrial Specialties Acetyl Intermediates Other Total Chemical Products 10 45 680 735 Technical Polymers Ticona 205 205 Acetate Products 86 86 Performance Products 64 64 Other 9 (122) (113) Total 205 160 54 680 (122) 977 1Excludes Operating EBITDA from the oxo alcohol business which was discontinued in 2007. New Reporting Segments Previous Reporting Segments

 

Previous Reporting Segments 2006 Sales Walkforward 2006 Sales1 Advanced Engineered Materials Consumer Specialties Industrial Specialties Acetyl Intermediates Other Intersegment Eliminations Total Chemical Products 1,046 3,351 (533) 3,864 Technical Polymers Ticona 915 915 Acetate Products 700 700 Performance Products 176 176 Other 235 22 257 Intersegment Eliminations (134) (134) Total 915 876 1,281 3,351 22 (667) 5,778 New Reporting Segments 1Excludes Sales from the oxo alcohol and Edmonton methanol businesses which were discontinued in 2007.

 

2006 Operating EBITDA Walkforward 2006 Operating EBITDA1 Advanced Engineered Materials Consumer Specialties Industrial Specialties Acetyl Intermediates Other Total Chemical Products 9 95 672 776 Technical Polymers Ticona 260 260 Acetate Products 151 151 Performance Products 68 68 Other 23 (134) (111) Total 260 228 118 672 (134) 1,144 1Excludes Operating EBITDA from the oxo alcohol business which was discontinued in 2007. Previous Reporting Segments New Reporting Segments

 

Previous Reporting Segments YTD 2007 Sales Walkforward YTD 2007 Sales1 Advanced Engineered Materials Consumer Specialties Industrial Specialties Acetyl Intermediates Other Intersegment Eliminations Total Chemical Products 580 1,673 (249) 2,004 Technical Polymers Ticona 519 519 Acetate Products 458 458 Performance Products 92 92 Other 121 (4) 117 Intersegment Eliminations (79) (79) Total 519 550 701 1,673 (4) (328) 3,111 New Reporting Segments 1Excludes Sales from the oxo alcohol and Edmonton methanol businesses which were discontinued in 2007.

 

YTD 2007 Operating EBITDA Walkforward YTD 2007 Operating EBITDA1 Advanced Engineered Materials Consumer Specialties Industrial Specialties Acetyl Intermediates Other Total Chemical Products 6 49 353 408 Technical Polymers Ticona 137 137 Acetate Products 117 117 Performance Products 41 41 Other 11 (40) (29) Total 137 164 60 353 (40) 674 1Excludes Operating EBITDA from the oxo alcohol business which was discontinued in 2007. Previous Reporting Segments New Reporting Segments