Celanese Corporation (NYSE: CE), a global chemical and specialty
materials company, today reported first quarter 2024 U.S. GAAP
diluted earnings per share of $1.10 and adjusted earnings per share
of $2.08. The Company generated net sales of $2.6 billion in the
quarter, an increase of 2 percent from the prior quarter,
reflecting a sequential increase in volume of 2 percent and neutral
pricing. Celanese continued to execute against controllable actions
in a demand environment that is stabilizing but has not yet
returned to normalized levels. As a result, the Company largely
offset the sequential impacts of first quarter seasonality as well
as significantly higher expenses associated with the completion of
planned turnarounds. Celanese reported first quarter operating
profit of $210 million, adjusted EBIT of $407 million, and
operating EBITDA of $583 million at margins of 8, 16, and 22
percent, respectively.
The difference between U.S. GAAP diluted earnings per share and
adjusted earnings per share in the first quarter was primarily due
to Certain Items totaling $97 million.1
"Our first quarter results demonstrate our ability to execute in
a commercial environment that has stabilized but still shows
limited signs of meaningful recovery," said Lori Ryerkerk, chair
and chief executive officer. "We saw the realization of financial
benefits from actions that were completed last year, particularly
within the former M&M portfolio, and we continue to put in
place further initiatives to enhance the earnings power of
Celanese. I thank our teams for their dedication in executing our
plan, allowing us to exceed our previous earnings expectations for
the quarter."
_____________________________
1 Mainly driven by shutdown-related costs
and M&A-related costs
First Quarter 2024 Financial Highlights:
Three Months Ended
March 31, 2024
December 31,
2023
March 31, 2023
(unaudited)
(In $ millions, except per
share data)
Net Sales
Engineered Materials
1,378
1,406
1,630
Acetyl Chain
1,261
1,181
1,250
Intersegment Eliminations
(28
)
(18
)
(27
)
Total
2,611
2,569
2,853
Operating Profit (Loss)
Engineered Materials
89
122
112
Acetyl Chain
254
264
278
Other Activities
(133
)
(127
)
(139
)
Total
210
259
251
Net Earnings (Loss)
124
701
93
Adjusted EBIT(1)
Engineered Materials
201
199
215
Acetyl Chain
296
300
316
Other Activities
(90
)
(65
)
(107
)
Total
407
434
424
Equity Earnings and Dividend Income,
Other Income (Expense)
Engineered Materials
50
45
10
Acetyl Chain
36
33
34
Operating EBITDA(1)
583
608
596
Diluted EPS - continuing operations
$
1.10
$
6.43
$
0.86
Diluted EPS - total
$
1.10
$
6.37
$
0.83
Adjusted EPS(1)
$
2.08
$
2.24
$
2.01
Net cash provided by (used in) investing
activities
(151
)
(168
)
(178
)
Net cash provided by (used in) financing
activities
(259
)
(240
)
(69
)
Net cash provided by (used in) operating
activities
101
830
(96
)
Free cash flow(1)
(40
)
702
(261
)
____________________________
(1)
See "Non-US GAAP Financial Measures" below.
Recent Highlights:
- Completed the successful startup of a new 1.3 million ton Clear
Lake acetic acid expansion unit.
- Completed actions to enhance the flexibility of the Acetyl
Chain by building out downstream capabilities, including:
- The successful startup of a new vinyl acetate ethylene (VAE)
unit in Nanjing that increases VAE capacity by 70 kt to address
growing regional demand in Asia.
- The completion of global, low-capital debottlenecking projects
for downstream redispersible polymer powders (RDP) to improve the
flexibility in the Acetyl Chain and further address growing
demand.
- Announced the planned closure of all operations in Mechelen,
Belgium, a specialty compounding facility that was acquired as part
of the M&M acquisition. This action is consistent with the
Company's strategy to exit high cost facilities while driving
productivity in lower cost facilities.
- Elected Kim K.W. Rucker as the new lead independent director.
Ms. Rucker, former Executive Vice President, General Counsel and
Corporate Secretary for Andeavor (formerly Tesoro Corp.) and
experienced corporate director, has been a member of the Celanese
Board of Directors since 2018.
First Quarter Business Segment Overview
Acetyl Chain
The Acetyl Chain delivered first quarter net sales of $1.3
billion, a 7 percent increase from the prior quarter. Volume
increased by 5 percent sequentially due to a modest increase in
Asia demand and seasonal recovery in the Americas and Europe. First
quarter pricing across the Acetyl Chain increased by 1 percent
sequentially. In response to challenging commercial dynamics with
acetic acid in China, the business exercised its unique optionality
within its integrated value chain to capture margin through
downstream derivatives such as emulsions and RDP. The Acetyl Chain
delivered first quarter operating profit of $254 million, adjusted
EBIT of $296 million, and operating EBITDA of $353 million at
margins of 20, 23, and 28 percent, respectively. The business
completed a planned seven week methanol turnaround on time and
under budget. Additionally, the new acetic acid production unit at
Clear Lake supported the business to drive incremental earnings
across its network and partially offset the sequential increase in
methanol turnaround expenses. The Acetyl Chain continued to take
steps to support its foundational earnings by increasing downstream
optionality through the successful addition of capacity in VAE and
RDP.
Engineered Materials
Engineered Materials reported first quarter net sales of $1.4
billion, representing a sequential decrease of 2 percent. Net sales
reflected a sequential volume decrease of 1 percent and a
sequential pricing decrease of 1 percent. Volume was similar to the
previous quarter with slight improvements in both automotive and
distribution volumes partially offset by seasonal declines in
medical implants. Engineered Materials delivered first quarter
operating profit of $89 million, adjusted EBIT of $201 million, and
operating EBITDA of $303 million, at margins of 6, 15, and 22
percent, respectively. The sequential earnings performance was
mainly driven by realization of lower raw material costs flowing
through inventory as well as sales mix improvements. Both dynamics
were especially prominent in the nylon business, which delivered a
$26 million sequential increase in gross profit contribution and
the highest quarterly contribution from the former M&M product
portfolio since the completion of the acquisition. Engineered
Materials implemented further value enhancing initiatives to
continue driving margin expansion. Among these were the closure of
nylon 66 polymerization in Uentrop, Germany, the integration of the
former M&M business onto the upgraded SAP S/4HANA ERP system,
and the announcement of plans to cease all operations at the
specialty compounding site in Mechelen, Belgium which was acquired
as part of the M&M acquisition.
Cash Flow and Tax
Celanese reported first quarter operating cash flow of $101
million and free cash flow of $(40) million, representing increases
of $197 million and $221 million, respectively, when compared to
the same period of last year. First quarter results included a
sequential increase in working capital from typical seasonality,
net cash interest expense of $204 million due to timing of coupon
payments, and cash capital expenditures of $137 million driven by
project completion timing. Celanese returned $77 million in cash to
shareholders via dividends in the quarter.
The effective U.S. GAAP income tax rate was 21 percent for the
first quarter compared to 21 percent for the same quarter in 2023.
The U.S. GAAP effective rate for the current year was unfavorably
impacted by the tax effect of debt restructuring transactions, and
the U.S. GAAP rate for the prior period was unfavorably impacted by
increases in valuation allowances on U.S. foreign tax credit
carryforwards due to revised forecasts of foreign sourced income
and expenses during the carryforward period that did not re-occur
in the current period. The effective tax rate for adjusted earnings
was 9 percent based on expected jurisdictional earnings mix for the
full year and consideration of other non-recurring U.S. GAAP
items.
Outlook
"Given the current demand environment and muted seasonal
commercial lift, our focus will remain on what we can control to
sustainably lift the earnings of Celanese," said Lori Ryerkerk.
"Along with further improvement in the profitability of our
acquired product portfolio, we expect benefits from our Clear Lake
expansion, Uentrop closure, and SAP S/4HANA ERP integration to
contribute in the second quarter and accelerate across the year.
Because of these foundational value creation initiatives, I am
confident we will deliver a ramp in earnings performance in the
second quarter and into the second half of the year."
Based on the timing of major value creation projects and
reflective of the current commercial environment, the Company
anticipates second quarter adjusted earnings per share of $2.60 to
$3.00, inclusive of approximately $0.30 per share of M&M
transaction amortization.
Reconciliations of forecasted non-GAAP measures such as adjusted
earnings per share, adjusted EBIT or free cash flow to the
equivalent U.S. GAAP measures (diluted earnings per share, net
earnings (loss) attributable to Celanese Corporation and net cash
provided by (used in) operations, respectively), are not available
without unreasonable efforts because a forecast of Certain Items,
such as mark-to-market pension gains/losses, and other items is not
practical. For more information, see "Non-GAAP Financial Measures"
below.
The Company's prepared remarks related to the first quarter will
be posted on its website at investors.celanese.com under Financial
Information/Financial Document Library on May 8, 2024. Information
about Non-US GAAP measures is included in a Non-US GAAP Financial
Measures and Supplemental Information document posted on our
investor relations website under Financial Information/Non-GAAP
Financial Measures. See also "Non-GAAP Financial Measures"
below.
Celanese Corporation is a global leader in chemistry, producing
specialty material solutions used across most major industries and
consumer applications. Our businesses use our chemistry, technology
and commercial expertise to create value for our customers,
employees and shareholders. We support sustainability by
responsibly managing the materials we create and growing our
portfolio of sustainable products to meet customer and societal
demand. We strive to make a positive impact in our communities and
to foster inclusivity across our teams. Celanese Corporation is a
Fortune 500 company that employs approximately 12,400 employees
worldwide with 2023 net sales of $10.9 billion.
Forward-Looking Statements
This release may contain "forward-looking statements," which
include information concerning the Company's plans, objectives,
goals, strategies, future revenues, cash flow, financial
performance, synergies, capital expenditures, financing needs and
other information that is not historical information. All
forward-looking statements are based upon current expectations and
beliefs and various assumptions. There can be no assurance that the
Company will realize these expectations or that these beliefs will
prove correct. There are a number of risks and uncertainties that
could cause actual results to differ materially from the results
expressed or implied in the forward-looking statements contained in
this release. These risks and uncertainties include, among other
things: changes in general economic, business, political and
regulatory conditions in the countries or regions in which we
operate; the length and depth of product and industry business
cycles, particularly in the automotive, electrical, textiles,
electronics and construction industries; volatility or changes in
the price and availability of raw materials and energy,
particularly changes in the demand for, supply of, and market
prices of ethylene, methanol, natural gas, wood pulp and fuel oil
and the prices for electricity and other energy sources; the
ability to pass increases in raw material prices, logistics costs
and other costs on to customers or otherwise improve margins
through price increases; the possibility that we will not be able
to timely or effectively continue to integrate the Mobility &
Materials business (the "M&M Business") we acquired from DuPont
de Nemours, Inc. (the "M&M Acquisition") in order to realize
the anticipated benefits of the M&M Acquisition, including
synergies and growth opportunities, whether as a result of
difficulties arising from the operation of the M&M Business or
other unanticipated delays, costs, inefficiencies or liabilities;
increased commercial, legal or regulatory complexity of entering
into, or expanding our exposure to, certain end markets and
geographies; risks in the global economy and equity and credit
markets and their potential impact on our ability to pay down debt
in the future and/or refinance at suitable rates, in a timely
manner, or at all; risks and costs associated with increased
leverage from the M&M Acquisition, including increased interest
expense and potential reduction of business and strategic
flexibility; the ability to maintain plant utilization rates and to
implement planned capacity additions, expansions and maintenance;
the ability to reduce or maintain current levels of production
costs and to improve productivity by implementing technological
improvements to existing plants; increased price competition and
the introduction of competing products by other companies; the
ability to identify desirable potential acquisition or divestiture
opportunities and to complete such transactions, including
obtaining regulatory approvals, consistent with the Company's
strategy; market acceptance of our products and technology;
compliance and other costs and potential disruption or interruption
of production or operations due to accidents, interruptions in
sources of raw materials, transportation, logistics or supply chain
disruptions, cybersecurity incidents, terrorism or political
unrest, public health crises (including, but not limited to, the
COVID-19 pandemic), or other unforeseen events or delays in
construction or operation of facilities, including as a result of
geopolitical conditions, the direct or indirect consequences of
acts of war or conflict (such as the Russia-Ukraine conflict or the
Israel-Hamas conflict) or terrorist incidents or as a result of
weather, natural disasters, or other crises; the ability to obtain
governmental approvals and to construct facilities on terms and
schedules acceptable to the Company; changes in applicable tariffs,
duties and trade agreements, tax rates or legislation throughout
the world including, but not limited to, adjustments, changes in
estimates or interpretations or the resolution of tax examinations
or audits that may impact recorded or future tax impacts and
potential regulatory and legislative tax developments in the United
States and other jurisdictions; changes in the degree of
intellectual property and other legal protection afforded to our
products or technologies, or the theft of such intellectual
property; potential liability for remedial actions and increased
costs under existing or future environmental, health and safety
regulations, including those relating to climate change or other
sustainability matters; potential liability resulting from pending
or future claims or litigation, including investigations or
enforcement actions, or from changes in the laws, regulations or
policies of governments or other governmental activities in the
countries in which we operate; changes in currency exchange rates
and interest rates; our level of indebtedness, which could diminish
our ability to raise additional capital to fund operations or limit
our ability to react to changes in the economy or the chemicals
industry; tax rates and changes thereto; and various other factors
discussed from time to time in the Company's filings with the
Securities and Exchange Commission.
Any forward-looking statement speaks only as of the date on
which it is made, and the Company undertakes no obligation to
update any forward-looking statements to reflect events or
circumstances after the date on which it is made or to reflect the
occurrence of anticipated or unanticipated events or
circumstances.
Non-GAAP Financial Measures
Presentation
This document presents the Company's two business segments,
Engineered Materials and the Acetyl Chain.
Use of Non-US GAAP Financial Information
This release uses the following Non-US GAAP measures: adjusted
EBIT, adjusted EBIT margin, operating EBITDA, operating EBITDA
margin, adjusted earnings per share and free cash flow. These
measures are not recognized in accordance with US GAAP and should
not be viewed as an alternative to US GAAP measures of performance
or liquidity. The most directly comparable financial measure
presented in accordance with US GAAP in our consolidated financial
statements for adjusted EBIT and operating EBITDA is net earnings
(loss) attributable to Celanese Corporation; for adjusted EBIT
margin is operating margin; for operating EBITDA margin is
operating margin; for adjusted earnings per share is earnings
(loss) from continuing operations attributable to Celanese
Corporation per common share-diluted; and for free cash flow is net
cash provided by (used in) operations.
Definitions of Non-US GAAP Financial
Measures
- Adjusted EBIT is a performance measure used by the Company and
is defined by the Company as net earnings (loss) attributable to
Celanese Corporation, plus (earnings) loss from discontinued
operations, less interest income, plus interest expense, plus
refinancing expense and taxes, and further adjusted for Certain
Items (refer to Table 8 of our Non-US GAAP Financial Measures and
Supplemental Information document). We do not provide
reconciliations for adjusted EBIT on a forward-looking basis
(including those contained in this document) when we are unable to
provide a meaningful or accurate calculation or estimation of
reconciling items and the information is not available without
unreasonable effort. This is due to the inherent difficulty of
forecasting the timing and amount of Certain Items, such as
mark-to-market pension gains and losses, that have not yet
occurred, are out of our control and/or cannot be reasonably
predicted. For the same reasons, we are unable to address the
probable significance of the unavailable information. Adjusted EBIT
margin is defined by the Company as adjusted EBIT divided by net
sales.
- Operating EBITDA is a performance measure used by the Company
and is defined by the Company as net earnings (loss) attributable
to Celanese Corporation, plus (earnings) loss from discontinued
operations, less interest income, plus interest expense, plus
refinancing expense, taxes and depreciation and amortization, and
further adjusted for Certain Items, which Certain Items include
accelerated depreciation and amortization expense. Operating EBITDA
is equal to adjusted EBIT plus depreciation and amortization.
Operating EBITDA margin is defined by the Company as operating
EBITDA divided by net sales.
- Adjusted earnings per share is a performance measure used by
the Company and is defined by the Company as earnings (loss) from
continuing operations attributable to Celanese Corporation,
adjusted for income tax (provision) benefit, Certain Items, and
refinancing and related expenses, divided by the number of basic
common shares and dilutive restricted stock units and stock options
calculated using the treasury method. We do not provide
reconciliations for adjusted earnings per share on a
forward-looking basis (including those contained in this document)
when we are unable to provide a meaningful or accurate calculation
or estimation of reconciling items and the information is not
available without unreasonable effort. This is due to the inherent
difficulty of forecasting the timing and amount of Certain Items,
such as mark-to-market pension gains and losses, that have not yet
occurred, are out of our control and/or cannot be reasonably
predicted. For the same reasons, we are unable to address the
probable significance of the unavailable information. Note: The
income tax expense (benefit) on Certain Items ("Non-GAAP
adjustments") is determined using the applicable rates in the
taxing jurisdictions in which the Non-GAAP adjustments occurred and
includes both current and deferred income tax expense (benefit).
The income tax rate used for adjusted earnings per share
approximates the midpoint in a range of forecasted tax rates for
the year. This range may include certain partial or full-year
forecasted tax opportunities and related costs, where applicable,
and specifically excludes changes in uncertain tax positions,
discrete recognition of GAAP items on a quarterly basis, other
pre-tax items adjusted out of our GAAP earnings for adjusted
earnings per share purposes and changes in management's assessments
regarding the ability to realize deferred tax assets for GAAP. In
determining the adjusted earnings per share tax rate, we reflect
the impact of foreign tax credits when utilized, or expected to be
utilized, absent discrete events impacting the timing of foreign
tax credit utilization. We analyze this rate quarterly and adjust
it if there is a material change in the range of forecasted tax
rates; an updated forecast would not necessarily result in a change
to our tax rate used for adjusted earnings per share. The adjusted
tax rate is an estimate and may differ from the actual tax rate
used for GAAP reporting in any given reporting period. Table 3a of
our Non-US GAAP Financial Measures and Supplemental Information
document summarizes the reconciliation of our estimated GAAP
effective tax rate to the adjusted tax rate. The estimated GAAP
rate excludes discrete recognition of GAAP items due to our
inability to forecast such items. As part of the year-end
reconciliation, we will update the reconciliation of the GAAP
effective tax rate to the adjusted tax rate for actual
results.
- Free cash flow is a liquidity measure used by the Company and
is defined by the Company as net cash provided by (used in)
operations, less capital expenditures on property, plant and
equipment, and adjusted for contributions from or distributions to
our noncontrolling interest joint ventures. We do not provide
reconciliations for free cash flow on a forward-looking basis
(including those contained in this document) when we are unable to
provide a meaningful or accurate calculation or estimation of
reconciling items and the information is not available without
unreasonable effort. This is due to the inherent difficulty of
forecasting the timing and amount of items such as working capital
changes, fluctuations in foreign currency exchange rates, the
impact and timing of potential acquisitions and divestitures, and
other structural changes, that have not yet occurred, are out of
our control and/or cannot be reasonably predicted. For the same
reasons, we are unable to address the probable significance of the
unavailable information.
Reconciliation of Non-US GAAP Financial Measures
Reconciliations of the Non-US GAAP financial measures used in
this press release to the comparable US GAAP financial measure,
together with information about the purposes and uses of Non-US
GAAP financial measures, are included in our Non-US GAAP Financial
Measures and Supplemental Information document filed as an exhibit
to our Current Report on Form 8-K filed with the SEC on or about
May 8, 2024 and also available on our website at investors.celanese.com under Financial
Information/Financial Document Library.
Results Unaudited
The results in this document, together with the adjustments made
to present the results on a comparable basis, have not been audited
and are based on internal financial data furnished to management.
Quarterly results should not be taken as an indication of the
results of operations to be reported for any subsequent period or
for the full fiscal year.
Supplemental Information
Additional information about our prior period performance is
included in our Quarterly Reports on Form 10-Q and in our Non-US
GAAP Financial Measures and Supplemental Information document.
Consolidated Statements of Operations - Unaudited
Three Months Ended
March 31, 2024
December 31,
2023
March 31, 2023
(In $ millions, except share
and per share data)
Net sales
2,611
2,569
2,853
Cost of sales
(2,057
)
(1,956
)
(2,222
)
Gross profit
554
613
631
Selling, general and administrative
expenses
(265
)
(272
)
(285
)
Amortization of intangible assets
(41
)
(40
)
(41
)
Research and development expenses
(34
)
(32
)
(42
)
Other (charges) gains, net
(14
)
(18
)
(23
)
Foreign exchange gain (loss), net
11
11
6
Gain (loss) on disposition of businesses
and assets, net
(1
)
(3
)
5
Operating profit (loss)
210
259
251
Equity in net earnings (loss) of
affiliates
55
52
15
Non-operating pension and other
postretirement employee benefit (expense) income
2
(67
)
1
Interest expense
(169
)
(178
)
(182
)
Interest income
13
12
8
Dividend income - equity investments
34
31
34
Other income (expense), net
12
23
(6
)
Earnings (loss) from continuing operations
before tax
157
132
121
Income tax (provision) benefit
(33
)
575
(25
)
Earnings (loss) from continuing
operations
124
707
96
Earnings (loss) from operation of
discontinued operations
—
(8
)
(3
)
Income tax (provision) benefit from
discontinued operations
—
2
—
Earnings (loss) from discontinued
operations
—
(6
)
(3
)
Net earnings (loss)
124
701
93
Net (earnings) loss attributable to
noncontrolling interests
(3
)
(3
)
(2
)
Net earnings (loss) attributable to
Celanese Corporation
121
698
91
Amounts attributable to Celanese
Corporation
Earnings (loss) from continuing
operations
121
704
94
Earnings (loss) from discontinued
operations
—
(6
)
(3
)
Net earnings (loss)
121
698
91
Earnings (loss) per common share -
basic
Continuing operations
1.11
6.46
0.87
Discontinued operations
—
(0.05
)
(0.03
)
Net earnings (loss) - basic
1.11
6.41
0.84
Earnings (loss) per common share -
diluted
Continuing operations
1.10
6.43
0.86
Discontinued operations
—
(0.06
)
(0.03
)
Net earnings (loss) - diluted
1.10
6.37
0.83
Weighted average shares (in millions)
Basic
109.1
109.0
108.6
Diluted
109.5
109.5
109.2
Consolidated Balance Sheets - Unaudited
As of
March 31,
2024
As of
December 31,
2023
(In $ millions)
ASSETS
Current Assets
Cash and cash equivalents
1,483
1,805
Trade receivables - third party and
affiliates, net
1,289
1,243
Non-trade receivables, net
536
541
Inventories
2,354
2,357
Other assets
283
272
Total current assets
5,945
6,218
Investments in affiliates
1,238
1,220
Property, plant and equipment, net
5,471
5,584
Operating lease right-of-use assets
396
422
Deferred income taxes
1,618
1,677
Other assets
537
524
Goodwill
6,926
6,977
Intangible assets, net
3,902
3,975
Total assets
26,033
26,597
LIABILITIES AND EQUITY
Current Liabilities
Short-term borrowings and current
installments of long-term debt - third party and affiliates
2,439
1,383
Trade payables - third party and
affiliates
1,447
1,510
Other liabilities
1,011
1,154
Income taxes payable
28
25
Total current liabilities
4,925
4,072
Long-term debt, net of unamortized
deferred financing costs
11,018
12,301
Deferred income taxes
1,016
999
Uncertain tax positions
298
300
Benefit obligations
444
457
Operating lease liabilities
296
325
Other liabilities
505
591
Commitments and Contingencies
Shareholders' Equity
Treasury stock, at cost
(5,488
)
(5,488
)
Additional paid-in capital
383
394
Retained earnings
12,973
12,929
Accumulated other comprehensive income
(loss), net
(797
)
(744
)
Total Celanese Corporation shareholders'
equity
7,071
7,091
Noncontrolling interests
460
461
Total equity
7,531
7,552
Total liabilities and equity
26,033
26,597
Non-US GAAP Financial Measures and
Supplemental Information
May 8, 2024
In this document, the terms the "Company," "we" and "our" refer
to Celanese Corporation and its subsidiaries on a consolidated
basis.
Purpose
The purpose of this document is to provide information of
interest to investors, analysts and other parties including
supplemental financial information and reconciliations and other
information concerning our use of non-US GAAP financial measures.
This document is updated quarterly.
Presentation
This document presents the Company's two business segments,
Engineered Materials and the Acetyl Chain.
Use of Non-US GAAP Financial Measures
From time to time, management may publicly disclose certain
numerical "non-GAAP financial measures" in the course of our
earnings releases, financial presentations, earnings conference
calls, investor and analyst meetings and otherwise. For these
purposes, the Securities and Exchange Commission ("SEC") defines a
"non-GAAP financial measure" as a numerical measure of historical
or future financial performance, financial position or cash flows
that excludes amounts, or is subject to adjustments that
effectively exclude amounts, included in the most directly
comparable measure calculated and presented in accordance with US
GAAP, and vice versa for measures that include amounts, or are
subject to adjustments that effectively include amounts, that are
excluded from the most directly comparable US GAAP measure so
calculated and presented. For these purposes, "GAAP" refers to
generally accepted accounting principles in the United States.
Non-GAAP financial measures disclosed by management are provided
as additional information to investors, analysts and other parties
because the Company believes them to be important supplemental
measures for assessing our financial and operating results and as a
means to evaluate our financial condition and period-to-period
comparisons. These non-GAAP financial measures should be viewed as
supplemental to, and should not be considered in isolation or as
alternatives to, net earnings (loss), operating profit (loss),
operating margin, cash flow from operating activities (together
with cash flow from investing and financing activities), earnings
per share or any other US GAAP financial measure. These non-GAAP
financial measures should be considered within the context of our
complete audited and unaudited financial results for the given
period, which are available on the Financial Information/Financial
Document Library page of our website, investors.celanese.com. The
definition and method of calculation of the non-GAAP financial
measures used herein may be different from other companies' methods
for calculating measures with the same or similar titles.
Investors, analysts and other parties should understand how another
company calculates such non-GAAP financial measures before
comparing the other company's non-GAAP financial measures to any of
our own. These non-GAAP financial measures may not be indicative of
the historical operating results of the Company nor are they
intended to be predictive or projections of future results.
Pursuant to the requirements of SEC Regulation G, whenever we
refer to a non-GAAP financial measure, we will also present in this
document, in the presentation itself or on a Form 8-K in connection
with the presentation on the Financial Information/Financial
Document Library page of our website, investors.celanese.com, to
the extent practicable, the most directly comparable financial
measure calculated and presented in accordance with GAAP, along
with a reconciliation of the differences between the non-GAAP
financial measure we reference and such comparable GAAP financial
measure.
This document includes definitions and reconciliations of
non-GAAP financial measures used from time to time by the
Company.
Specific Measures Used
This document provides information about the following non-GAAP
measures: adjusted EBIT, adjusted EBIT margin, operating EBITDA,
operating EBITDA margin, operating profit (loss) attributable to
Celanese Corporation, adjusted earnings per share, net debt, free
cash flow and return on invested capital (adjusted). The most
directly comparable financial measure presented in accordance with
US GAAP in our consolidated financial statements for adjusted EBIT
and operating EBITDA is net earnings (loss) attributable to
Celanese Corporation; for adjusted EBIT margin and operating EBITDA
margin is operating margin; for operating profit (loss)
attributable to Celanese Corporation is operating profit (loss);
for adjusted earnings per share is earnings (loss) from continuing
operations attributable to Celanese Corporation per common
share-diluted; for net debt is total debt; for free cash flow is
net cash provided by (used in) operations; and for return on
invested capital (adjusted) is net earnings (loss) attributable to
Celanese Corporation divided by the sum of the average of beginning
and end of the year short- and long-term debt and Celanese
Corporation shareholders' equity.
Definitions
- Adjusted EBIT is a performance measure used by the Company and
is defined by the Company as net earnings (loss) attributable to
Celanese Corporation, plus (earnings) loss from discontinued
operations, less interest income, plus interest expense, plus
refinancing expense and taxes, and further adjusted for Certain
Items (refer to Table 8). We believe that adjusted EBIT provides
transparent and useful information to management, investors,
analysts and other parties in evaluating and assessing our primary
operating results from period-to-period after removing the impact
of unusual, non-operational or restructuring-related activities
that affect comparability. Our management recognizes that adjusted
EBIT has inherent limitations because of the excluded items.
Adjusted EBIT is one of the measures management uses for planning
and budgeting, monitoring and evaluating financial and operating
results and as a performance metric in the Company's incentive
compensation plan. We do not provide reconciliations for adjusted
EBIT on a forward-looking basis (including those contained in this
document) when we are unable to provide a meaningful or accurate
calculation or estimation of reconciling items and the information
is not available without unreasonable effort. This is due to the
inherent difficulty of forecasting the timing and amount of Certain
Items, such as mark-to-market pension gains and losses, that have
not yet occurred, are out of our control and/or cannot be
reasonably predicted. For the same reasons, we are unable to
address the probable significance of the unavailable information.
Adjusted EBIT margin is defined by the Company as adjusted EBIT
divided by net sales. Adjusted EBIT margin has the same uses and
limitations as Adjusted EBIT.
- Operating EBITDA is a performance measure used by the Company
and is defined by the Company as net earnings (loss) attributable
to Celanese Corporation, plus (earnings) loss from discontinued
operations, less interest income, plus interest expense, plus
refinancing expense, taxes and depreciation and amortization, and
further adjusted for Certain Items, which Certain Items include
accelerated depreciation and amortization expense. Operating EBITDA
is equal to adjusted EBIT plus depreciation and amortization. We
believe that Operating EBITDA provides transparent and useful
information to investors, analysts and other parties in evaluating
our operating performance relative to our peer companies. Operating
EBITDA margin is defined by the Company as Operating EBITDA divided
by net sales. Operating EBITDA margin has the same uses and
limitations as Operating EBITDA.
- Operating profit (loss) attributable to Celanese Corporation is
defined by the Company as operating profit (loss), less earnings
(loss) attributable to noncontrolling interests ("NCI"). We believe
that operating profit (loss) attributable to Celanese Corporation
provides transparent and useful information to management,
investors, analysts and other parties in evaluating our core
operational performance. Operating margin attributable to Celanese
Corporation is defined by the Company as operating profit (loss)
attributable to Celanese Corporation divided by net sales.
Operating margin attributable to Celanese Corporation has the same
uses and limitations as Operating profit (loss) attributable to
Celanese Corporation.
- Adjusted earnings per share is a performance measure used by
the Company and is defined by the Company as earnings (loss) from
continuing operations attributable to Celanese Corporation,
adjusted for income tax (provision) benefit, Certain Items, and
refinancing and related expenses, divided by the number of basic
common shares and dilutive restricted stock units and stock options
calculated using the treasury method. We believe that adjusted
earnings per share provides transparent and useful information to
management, investors, analysts and other parties in evaluating and
assessing our primary operating results from period-to-period after
removing the impact of the above stated items that affect
comparability and as a performance metric in the Company's
incentive compensation plan. We do not provide reconciliations for
adjusted earnings per share on a forward-looking basis (including
those contained in this document) when we are unable to provide a
meaningful or accurate calculation or estimation of reconciling
items and the information is not available without unreasonable
effort. This is due to the inherent difficulty of forecasting the
timing and amount of Certain Items, such as mark-to-market pension
gains and losses, that have not yet occurred, are out of our
control and/or cannot be reasonably predicted. For the same
reasons, we are unable to address the probable significance of the
unavailable information.
Note: The income tax expense (benefit) on Certain Items
("Non-GAAP adjustments") is determined using the applicable rates
in the taxing jurisdictions in which the Non-GAAP adjustments
occurred and includes both current and deferred income tax expense
(benefit). The income tax rate used for adjusted earnings per share
approximates the midpoint in a range of forecasted tax rates for
the year. This range may include certain partial or full-year
forecasted tax opportunities and related costs, where applicable,
and specifically excludes changes in uncertain tax positions,
discrete recognition of GAAP items on a quarterly basis, other
pre-tax items adjusted out of our GAAP earnings for adjusted
earnings per share purposes and changes in management's assessments
regarding the ability to realize deferred tax assets for GAAP. In
determining the adjusted earnings per share tax rate, we reflect
the impact of foreign tax credits when utilized, or expected to be
utilized, absent discrete events impacting the timing of foreign
tax credit utilization. We analyze this rate quarterly and adjust
it if there is a material change in the range of forecasted tax
rates; an updated forecast would not necessarily result in a change
to our tax rate used for adjusted earnings per share. The adjusted
tax rate is an estimate and may differ from the actual tax rate
used for GAAP reporting in any given reporting period. Table 3a
summarizes the reconciliation of our estimated GAAP effective tax
rate to the adjusted tax rate. The estimated GAAP rate excludes
discrete recognition of GAAP items due to our inability to forecast
such items. As part of the year-end reconciliation, we will update
the reconciliation of the GAAP effective tax rate to the adjusted
tax rate for actual results.
- Free cash flow is a liquidity measure used by the Company and
is defined by the Company as net cash provided by (used in)
operations, less capital expenditures on property, plant and
equipment, and adjusted for contributions from or distributions to
our NCI joint ventures. We believe that free cash flow provides
useful information to management, investors, analysts and other
parties in evaluating the Company's liquidity and credit quality
assessment because it provides an indication of the long-term cash
generating ability of our business. Although we use free cash flow
as a measure to assess the liquidity generated by our business, the
use of free cash flow has important limitations, including that
free cash flow does not reflect the cash requirements necessary to
service our indebtedness, lease obligations, unconditional purchase
obligations or pension and postretirement funding obligations. Free
cash flow is not a measure of cash available for discretionary
expenditures since the Company has certain debt service and finance
lease payments that are not deducted from that measure. We do not
provide reconciliations for free cash flow on a forward-looking
basis when we are unable to provide a meaningful or accurate
calculation or estimation of reconciling items and the information
is not available without unreasonable effort. This is due to the
inherent difficulty of forecasting the timing and amount of items
such as working capital changes, fluctuations in foreign currency
exchange rates, the impact and timing of potential acquisitions and
divestitures, and other structural changes, that have not yet
occurred, are out of our control and/or cannot be reasonably
predicted. For the same reasons, we are unable to address the
probable significance of the unavailable information.
- Net debt is defined by the Company as total debt less cash and
cash equivalents. We believe that net debt provides useful
information to management, investors, analysts and other parties in
evaluating changes to the Company's capital structure and credit
quality assessment.
- Return on invested capital (adjusted) is defined by the Company
as adjusted EBIT, tax effected using the adjusted tax rate, divided
by the sum of the average of beginning and end of the year short-
and long-term debt and Celanese Corporation shareholders' equity.
We believe that return on invested capital (adjusted) provides
useful information to management, investors, analysts and other
parties in order to assess our income generation from the point of
view of our shareholders and creditors who provide us with capital
in the form of equity and debt and whether capital invested in the
Company yields competitive returns.
Supplemental Information
Supplemental Information we believe to be of interest to
investors, analysts and other parties includes the following:
- Net sales for each of our business segments and the percentage
increase or decrease in net sales attributable to price, volume,
currency and other factors for each of our business segments.
- Cash dividends received from our equity investments.
- For those consolidated ventures in which the Company owns or is
exposed to less than 100% of the economics, the outside
shareholders' interests are shown as NCI. Amounts referred to as
"attributable to Celanese Corporation" are net of any applicable
NCI.
Results Unaudited
The results in this document, together with the adjustments made
to present the results on a comparable basis, have not been audited
and are based on internal financial data furnished to management.
Quarterly results should not be taken as an indication of the
results of operations to be reported for any subsequent period or
for the full fiscal year.
Table 1
Celanese Adjusted EBIT and Operating
EBITDA - Reconciliation of Non-GAAP Measures - Unaudited
Q1 '24
2023
Q4 '23
Q3 '23
Q2 '23
Q1 '23
(In $ millions)
Net earnings (loss) attributable to
Celanese Corporation
121
1,960
698
951
220
91
(Earnings) loss from discontinued
operations
—
9
6
1
(1
)
3
Interest income
(13
)
(39
)
(12
)
(12
)
(7
)
(8
)
Interest expense
169
720
178
178
182
182
Refinancing expense
—
7
—
7
—
—
Income tax provision (benefit)
33
(790
)
(575
)
(236
)
(4
)
25
Certain Items attributable to Celanese
Corporation (Table 8)
97
(114
)
139
(438
)
54
131
Adjusted EBIT
407
1,753
434
451
444
424
Depreciation and amortization
expense(1)
176
691
174
173
172
172
Operating EBITDA
583
2,444
608
624
616
596
Q1 '24
2023
Q4 '23
Q3 '23
Q2 '23
Q1 '23
(In $ millions)
Engineered Materials
45
15
15
—
—
—
Acetyl Chain
—
—
—
—
—
—
Other Activities(2)
—
—
—
—
—
—
Accelerated depreciation and
amortization expense
45
15
15
—
—
—
Depreciation and amortization
expense(1)
176
691
174
173
172
172
Total depreciation and amortization
expense
221
706
189
173
172
172
______________________________
(1)
Excludes accelerated depreciation and
amortization expense as detailed in the table above, which amounts
are included in Certain Items above.
(2)
Other Activities includes corporate
Selling, general and administrative ("SG&A") expenses, results
of captive insurance companies and certain components of net
periodic benefit cost (interest cost, expected return on plan
assets and net actuarial gains and losses).
Table 2 - Supplemental Segment Data and Reconciliation of
Segment Adjusted EBIT and Operating EBITDA - Non-GAAP Measures -
Unaudited
Q1 '24
2023
Q4 '23
Q3 '23
Q2 '23
Q1 '23
(In $ millions, except
percentages)
Operating Profit (Loss) / Operating
Margin
Engineered Materials
89
6.5
%
1,083
17.6
%
122
8.7
%
691
45.2
%
158
10.0
%
112
6.9
%
Acetyl Chain
254
20.1
%
1,109
22.7
%
264
22.4
%
272
22.3
%
295
23.9
%
278
22.2
%
Other Activities(1)
(133
)
(505
)
(127
)
(121
)
(118
)
(139
)
Total
210
8.0
%
1,687
15.4
%
259
10.1
%
842
30.9
%
335
12.0
%
251
8.8
%
Less: Net Earnings (Loss) Attributable to
NCI for Engineered Materials
(1
)
(3
)
1
(2
)
(2
)
—
Less: Net Earnings (Loss) Attributable to
NCI for Acetyl Chain
4
7
2
—
3
2
Operating Profit (Loss) Attributable to
Celanese Corporation
207
7.9
%
1,683
15.4
%
256
10.0
%
844
31.0
%
334
11.9
%
249
8.7
%
Operating Profit (Loss) / Operating
Margin Attributable to Celanese Corporation
Engineered Materials
90
6.5
%
1,086
17.7
%
121
8.6
%
693
45.4
%
160
10.1
%
112
6.9
%
Acetyl Chain
250
19.8
%
1,102
22.6
%
262
22.2
%
272
22.3
%
292
23.7
%
276
22.1
%
Other Activities(1)
(133
)
(505
)
(127
)
(121
)
(118
)
(139
)
Total
207
7.9
%
1,683
15.4
%
256
10.0
%
844
31.0
%
334
11.9
%
249
8.7
%
Equity Earnings and Dividend Income,
Other Income (Expense) Attributable to Celanese Corporation
Engineered Materials
50
87
45
12
20
10
Acetyl Chain
36
132
33
33
32
34
Other Activities(1)
15
34
28
1
6
(1
)
Total
101
253
106
46
58
43
Non-Operating Pension and Other
Post-Retirement Employee Benefit (Expense) Income Attributable to
Celanese Corporation
Engineered Materials
—
(1
)
(1
)
—
—
—
Acetyl Chain
—
—
—
—
—
—
Other Activities(1)
2
(68
)
(66
)
(1
)
(2
)
1
Total
2
(69
)
(67
)
(1
)
(2
)
1
Certain Items Attributable to Celanese
Corporation (Table 8)
Engineered Materials
61
(324
)
34
(476
)
25
93
Acetyl Chain
10
24
5
5
8
6
Other Activities(1)
26
186
100
33
21
32
Total
97
(114
)
139
(438
)
54
131
Adjusted EBIT / Adjusted EBIT
Margin
Engineered Materials
201
14.6
%
848
13.8
%
199
14.2
%
229
15.0
%
205
12.9
%
215
13.2
%
Acetyl Chain
296
23.5
%
1,258
25.8
%
300
25.4
%
310
25.4
%
332
26.9
%
316
25.3
%
Other Activities(1)
(90
)
(353
)
(65
)
(88
)
(93
)
(107
)
Total
407
15.6
%
1,753
16.0
%
434
16.9
%
451
16.6
%
444
15.9
%
424
14.9
%
___________________________
(1)
Other Activities includes corporate
SG&A expenses, results of captive insurance companies and
certain components of net periodic benefit cost (interest cost,
expected return on plan assets and net actuarial gains and
losses).
Table 2 - Supplemental Segment Data and Reconciliation of
Segment Adjusted EBIT and Operating EBITDA - Non-GAAP Measures -
Unaudited (cont.)
Q1 '24
2023
Q4 '23
Q3 '23
Q2 '23
Q1 '23
(In $ millions, except
percentages)
Depreciation and Amortization
Expense(1)
Engineered Materials
102
447
112
111
112
112
Acetyl Chain
57
217
54
55
54
54
Other Activities(2)
17
27
8
7
6
6
Total
176
691
174
173
172
172
Operating EBITDA / Operating EBITDA
Margin
Engineered Materials
303
22.0
%
1,295
21.1
%
311
22.1
%
340
22.3
%
317
20.0
%
327
20.1
%
Acetyl Chain
353
28.0
%
1,475
30.2
%
354
30.0
%
365
29.9
%
386
31.3
%
370
29.6
%
Other Activities(2)
(73
)
(326
)
(57
)
(81
)
(87
)
(101
)
Total
583
22.3
%
2,444
22.3
%
608
23.7
%
624
22.9
%
616
22.0
%
596
20.9
%
___________________________
(1)
Excludes accelerated depreciation and
amortization expense, which amounts are included in Certain Items
above. See Table 1 for details.
(2)
Other Activities includes corporate
SG&A expenses, results of captive insurance companies and
certain components of net periodic benefit cost (interest cost,
expected return on plan assets and net actuarial gains and
losses).
Table 3
Adjusted Earnings (Loss) per Share -
Reconciliation of a Non-GAAP Measure - Unaudited
Q1 '24
2023
Q4 '23
Q3 '23
Q2 '23
Q1 '23
per share
per share
per share
per share
per share
per share
(In $ millions, except per
share data)
Earnings (loss) from continuing operations
attributable to Celanese Corporation
121
1.10
1,969
18.00
704
6.43
952
8.70
219
2.00
94
0.86
Income tax provision (benefit)
33
(790
)
(575
)
(236
)
(4
)
25
Earnings (loss) from continuing operations
before tax
154
1,179
129
716
215
119
Certain Items attributable to Celanese
Corporation (Table 8)
97
(114
)
139
(438
)
54
131
Refinancing and related expenses
—
7
—
7
—
—
Adjusted earnings (loss) from continuing
operations before tax
251
1,072
268
285
269
250
Income tax (provision) benefit on adjusted
earnings(1)
(23
)
(96
)
(23
)
(11
)
(32
)
(30
)
Adjusted earnings (loss) from
continuing operations(2)
228
2.08
976
8.92
245
2.24
274
2.50
237
2.17
220
2.01
Diluted shares (in
millions)(3)
Weighted average shares outstanding
109.1
108.8
109.0
108.9
108.9
108.6
Incremental shares attributable to equity
awards
0.4
0.6
0.5
0.5
0.4
0.6
Total diluted shares
109.5
109.4
109.5
109.4
109.3
109.2
______________________________
(1)
Calculated using adjusted effective tax
rates (Table 3a) as follows:
Q1 '24
2023
Q4 '23
Q3 '23
Q2 '23
Q1 '23
Adjusted effective tax rate
9
9
9
4
12
12
(2)
Excludes the immediate recognition of
actuarial gains and losses and the impact of actual vs. expected
plan asset returns.
Actual Plan Asset
Returns
Expected Plan Asset
Returns
(In percentages)
2023
8.1
5.2
(3)
Potentially dilutive shares are included
in the adjusted earnings per share calculation when adjusted
earnings are positive.
Table 3a
Adjusted Tax Rate - Reconciliation of a
Non-GAAP Measure - Unaudited
Estimated
Actual
2024
2023
(In percentages)
US GAAP annual effective tax rate
22
(67
)
Discrete quarterly recognition of GAAP
items(1)
—
2
Tax impact of other charges and
adjustments(2)
(1
)
(3
)
Changes in valuation allowances, excluding
impact of other charges and adjustments(3)
(6
)
13
Other, includes effect of discrete current
year transactions(4)
(6
)
64
(5)
Adjusted tax rate
9
9
______________________________ Note: As part of the year-end
reconciliation, we will update the reconciliation of the GAAP
effective tax rate for actual results.
(1)
Such as changes in tax laws (including US
tax reform), deferred taxes on outside basis differences, changes
in uncertain tax positions and prior year audit adjustments.
(2)
Reflects the tax impact on pre-tax
adjustments presented in Certain Items (Table 8), which are
excluded from pre-tax income for adjusted earnings per share
purposes.
(3)
Reflects changes in valuation allowances
related to changes in judgment regarding the realizability of
deferred tax assets or current year operations, excluding other
charges and adjustments.
(4)
Includes tax impacts related to full-year
actual tax opportunities and related costs, as well as current year
realization of U.S. GAAP benefits deferred in prior years.
(5)
Includes the reversal of certain U.S. GAAP
deferred tax benefits related to non-recurring internal
restructuring transactions related to the M&M acquisition, to
centralize ownership of intellectual property with the business and
to facilitate future deployment of cash to service acquisition
indebtedness. Certain benefits of the internal restructuring will
be realized in future periods for adjusted earnings purposes.
Table 4
Net Sales by Segment -
Unaudited
Q1 '24
2023
Q4 '23
Q3 '23
Q2 '23
Q1 '23
(In $ millions)
Engineered Materials
1,378
6,149
1,406
1,528
1,585
1,630
Acetyl Chain
1,261
4,884
1,181
1,220
1,233
1,250
Intersegment eliminations(1)
(28
)
(93
)
(18
)
(25
)
(23
)
(27
)
Net sales
2,611
10,940
2,569
2,723
2,795
2,853
___________________________
(1)
Includes intersegment sales primarily
related to the Acetyl Chain.
Table 4a
Factors Affecting Segment Net Sales
Sequentially - Unaudited
Three Months Ended March 31, 2024
Compared to Three Months Ended December 31, 2023
Volume
Price
Currency
Total
(In percentages)
Engineered Materials
(1
)
(1
)
—
(2
)
Acetyl Chain
5
1
1
7
Total Company
2
—
—
2
Three Months Ended December 31, 2023
Compared to Three Months Ended September 30, 2023
Volume
Price
Currency
Total
(In percentages)
Engineered Materials
(5
)
(3
)
—
(8
)
Acetyl Chain
—
(3
)
—
(3
)
Total Company
(3
)
(3
)
—
(6
)
Three Months Ended September 30, 2023
Compared to Three Months Ended June 30, 2023
Volume
Price
Currency
Total
(In percentages)
Engineered Materials
(1
)
(3
)
—
(4
)
Acetyl Chain
3
(3
)
(1
)
(1
)
Total Company
1
(3
)
(1
)
(3
)
Three Months Ended June 30, 2023
Compared to Three Months Ended March 31, 2023
Volume
Price
Currency
Total
(In percentages)
Engineered Materials
2
(5
)
—
(3
)
Acetyl Chain
2
(3
)
—
(1
)
Total Company
2
(4
)
—
(2
)
Three Months Ended March 31, 2023
Compared to Three Months Ended December 31, 2022
Volume
Price
Currency
Total
(In percentages)
Engineered Materials
34
(4
)
2
32
Acetyl Chain
10
(2
)
2
10
Total Company
19
(4
)
2
17
Table 4b
Factors Affecting Segment Net Sales
Year Over Year - Unaudited
Three Months Ended March 31, 2024
Compared to Three Months Ended March 31, 2023
Volume
Price
Currency
Total
(In percentages)
Engineered Materials
(12
)
(2
)
(1
)
(15
)
Acetyl Chain
11
(10
)
—
1
Total Company
(2
)
(5
)
(1
)
(8
)
Three Months Ended December 31, 2023
Compared to Three Months Ended December 31, 2022
Volume
Price
Currency
Total
(In percentages)
Engineered Materials
21
(8
)
1
14
Acetyl Chain
14
(11
)
1
4
Total Company
18
(10
)
1
9
Three Months Ended September 30, 2023
Compared to Three Months Ended September 30, 2022
Volume
Price
Currency
Total
(In percentages)
Engineered Materials
75
(12
)
1
64
Acetyl Chain
4
(18
)
1
(13
)
Total Company
33
(16
)
1
18
Three Months Ended June 30, 2023
Compared to Three Months Ended June 30, 2022
Volume
Price
Currency
Total
(In percentages)
Engineered Materials
75
(8
)
—
67
Acetyl Chain
(2
)
(19
)
—
(21
)
Total Company
27
(15
)
—
12
Three Months Ended March 31, 2023
Compared to Three Months Ended March 31, 2022
Volume
Price
Currency
Total
(In percentages)
Engineered Materials
80
2
(3
)
79
Acetyl Chain
(9
)
(13
)
(2
)
(24
)
Total Company
23
(8
)
(3
)
12
Table 4c
Factors Affecting Segment Net Sales
Year Over Year - Unaudited
Year Ended December 31, 2023 Compared
to Year Ended December 31, 2022
Volume
Price
Currency
Total
(In percentages)
Engineered Materials
54
(1
)
—
53
Acetyl Chain
2
(17
)
—
(15
)
Total Company
23
(10
)
—
13
Table 5
Free Cash Flow - Reconciliation of a
Non-GAAP Measure - Unaudited
Q1 '24
2023
Q4 '23
Q3 '23
Q2 '23
Q1 '23
(In $ millions, except
percentages)
Net cash provided by (used in) investing
activities
(151
)
(134
)
(168
)
375
(163
)
(178
)
Net cash provided by (used in) financing
activities
(259
)
(1,456
)
(240
)
(700
)
(447
)
(69
)
Net cash provided by (used in) operating
activities
101
1,899
830
403
762
(96
)
Capital expenditures on property, plant
and equipment
(137
)
(568
)
(128
)
(131
)
(145
)
(164
)
Contributions from/(Distributions) to
NCI
(4
)
(11
)
—
(4
)
(6
)
(1
)
Free cash flow(1)
(40
)
1,320
702
268
611
(261
)
Net sales
2,611
10,940
2,569
2,723
2,795
2,853
Free cash flow as % of Net
sales
(1.5
)%
12.1
%
27.3
%
9.8
%
21.9
%
(9.1
)%
______________________________
(1)
Free cash flow is a liquidity measure used
by the Company and is defined by the Company as net cash provided
by (used in) operating activities, less capital expenditures on
property, plant and equipment, and adjusted for contributions from
or distributions to our NCI joint ventures.
Table 6
Cash Dividends Received -
Unaudited
Q1 '24
2023
Q4 '23
Q3 '23
Q2 '23
Q1 '23
(In $ millions)
Dividends from equity method
investments
27
157
85
7
25
40
Dividends from equity investments without
readily determinable fair values
34
126
31
30
31
34
Total
61
283
116
37
56
74
Table 7
Net Debt - Reconciliation of a Non-GAAP
Measure - Unaudited
Q1 '24
2023
Q4 '23
Q3 '23
Q2 '23
Q1 '23
(In $ millions)
Short-term borrowings and current
installments of long-term debt - third party and affiliates
2,439
1,383
1,383
1,408
1,507
1,386
Long-term debt, net of unamortized
deferred financing costs
11,018
12,301
12,301
12,291
12,889
13,396
Total debt
13,457
13,684
13,684
13,699
14,396
14,782
Cash and cash equivalents
(1,483
)
(1,805
)
(1,805
)
(1,357
)
(1,296
)
(1,167
)
Net debt
11,974
11,879
11,879
12,342
13,100
13,615
Table 8
Certain Items - Unaudited
The following Certain Items attributable
to Celanese Corporation are included in Net earnings (loss) and are
adjustments to non-GAAP measures:
Q1 '24
2023
Q4 '23
Q3 '23
Q2 '23
Q1 '23
Income Statement
Classification
(In $ millions)
Exit and shutdown costs
68
89
33
9
21
26
Cost of sales / SG&A / Other (charges)
gains, net / Gain (loss) on disposition of businesses and assets,
net / Non-operating pension and other postretirement employee
benefit (expense) income
Asset impairments
—
15
6
9
—
—
Cost of sales / Other (charges) gains,
net
Impact from plant incidents and natural
disasters(1)
7
6
—
—
—
6
Cost of sales
Mergers, acquisitions and dispositions
25
195
27
46
23
99
Cost of sales / SG&A
Actuarial (gain) loss on pension and
postretirement plans
—
69
69
—
—
—
Cost of sales / SG&A / Non-operating
pension and other postretirement employee benefit (expense)
income
Legal settlements and commercial
disputes
(8
)
12
4
2
6
—
Cost of sales / SG&A / Other (charges)
gains, net
(Gain) loss on disposition of businesses
and assets
—
(510
)
(3
)
(508
)
1
—
Gain (loss) on disposition of businesses
and assets, net
Other
5
10
3
4
3
—
Cost of sales / SG&A
Certain Items attributable to Celanese
Corporation
97
(114
)
139
(438
)
54
131
___________________________
(1)
Primarily associated with Winter Storms
Heather and Elliott in 2024 and 2023, respectively.
Table 9
Return on Invested Capital (Adjusted) -
Presentation of a Non-GAAP Measure - Unaudited
2023
(In $ millions, except
percentages)
Net earnings (loss) attributable to
Celanese Corporation
1,960
Adjusted EBIT (Table 1)
1,753
Adjusted effective tax rate (Table 3a)
9
%
Adjusted EBIT tax effected
1,595
2023
2022
Average
(In $ millions, except
percentages)
Short-term borrowings and current
installments of long-term debt - third parties and affiliates
1,383
1,306
1,345
Long-term debt, net of unamortized
deferred financing costs
12,301
13,373
12,837
Celanese Corporation shareholders'
equity
7,091
5,637
6,364
Invested capital
20,546
Return on invested capital
(adjusted)
7.8
%
Net earnings (loss) attributable to
Celanese Corporation as a percentage of invested capital
9.5
%
View source
version on businesswire.com: https://www.businesswire.com/news/home/20240507237002/en/
Investor Relations Bill Cunningham Phone: +1 484 905 1129
william.cunningham@celanese.com
Media - U.S. Brian Bianco Phone: +1 972 443 4400
media@celanese.com
Media - Europe Petra Czugler Phone: +49 69 45009 1206
petra.czugler@celanese.com
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