Celanese Corporation (NYSE: CE), a global chemical and specialty
materials company, today reported third quarter GAAP diluted
earnings per share of $4.67 and adjusted earnings per share of
$4.82. The Company reported record net sales of $2.3 billion for
the quarter with sequential pricing and volume increases of 3
percent and 1 percent, respectively. Engineered Materials, the
Acetyl Chain, and Acetate Tow all navigated growing sourcing and
logistics constraints, over $100 million in combined sequential
cost inflation, and external disruptions to operations to deliver
consolidated net earnings attributable to Celanese of $506 million
and adjusted EBIT of $648 million in the third quarter. The Company
continued to deploy excess cash generation across capital
allocation priorities, including capital expenditures, M&A, and
share repurchases, to translate current performance into future
earnings growth.
"I would like to thank our teams who throughout 2021 have
delivered the three highest quarterly adjusted earnings per share
performances in our history. Our recent performance is a testament
to the agility of Celanese and its people to respond to what was an
exceptionally volatile quarter with external challenges and
disruptions that negatively impacted all three of our businesses,"
said Lori Ryerkerk, chairman and chief executive officer.
Third Quarter 2021 Financial Highlights:
Three Months Ended
September 30,
2021
June 30, 2021
September 30,
2020
(unaudited)
(In $ millions, except per
share data)
Net Sales
Engineered Materials
684
682
526
Acetate Tow
128
138
129
Acetyl Chain
1,489
1,409
776
Intersegment Eliminations
(35
)
(31
)
(20
)
Total
2,266
2,198
1,411
Operating Profit (Loss)
Engineered Materials
91
123
84
Acetate Tow
12
24
30
Acetyl Chain
517
516
121
Other Activities
(84
)
(96
)
(51
)
Total
536
567
184
Net Earnings (Loss)
507
540
209
Adjusted EBIT(1)
Engineered Materials
137
161
116
Acetate Tow
46
62
59
Acetyl Chain
517
514
126
Other Activities
(52
)
(46
)
(11
)
Total
648
691
290
Equity Earnings and Dividend Income,
Other Income (Expense)
Engineered Materials
40
32
21
Acetate Tow
34
37
28
Operating EBITDA(1)
739
781
378
Diluted EPS - continuing operations
$
4.67
$
4.81
$
1.76
Diluted EPS - total
$
4.56
$
4.77
$
1.75
Adjusted EPS(1)
$
4.82
$
5.02
$
1.95
Net cash provided by (used in) investing
activities
(108
)
177
(78
)
Net cash provided by (used in) financing
activities
(228
)
(344
)
(290
)
Net cash provided by (used in) operating
activities
630
427
431
Free cash flow(1)
520
309
351
_____________________________
(1)
See "Non-US GAAP Financial Measures"
below.
Recent Highlights:
- Released the 2020/21 Sustainability Report that highlights
recent progress and future actions under a new strategic
sustainability framework, Elements of Opportunity. A new
Sustainability website is scheduled to be launched in
November.
- Announced in late September the temporary shut down of acetic
anhydride and vinyl acetate monomer production in Nanjing to comply
with recent government curtailment requirements to achieve dual
energy consumption targets in the Jiangsu Province. Those
requirements were adjusted and all production units at Nanjing are
currently operational. During the curtailment in the third quarter,
the Company pulled forward maintenance activity planned for the
fourth quarter.
- Announced the launch of Hostaform®RF, an Engineered Materials
solution tailored for growing rotomolding tank applications for
small fuel tanks, hydraulic reservoirs, and industrial bulk
containers.
- Closed the acquisition of certain technology and sales
agreements relating to the production of polyacetal (POM) products
from Grupa Azoty S.A. of Poland, following their decision to
discontinue POM manufacturing.
- Completed a series of transactions to spread out debt
maturities and reduce interest expense, consisting of a registered
public offering of $400 million of 1.400% Senior Notes due 2026
following the maturity in June 2021 of $400 million previously
outstanding 5.875% Senior Notes, a cash tender offer for €300
million of outstanding 1.125% Senior Notes due 2023, and a
registered public offering of €500 million of 0.625% Senior Notes
due 2028.
Third Quarter 2021 Business Segment Overview
Engineered Materials
Engineered Materials generated record net sales of $684 million
in the third quarter due to a 3 percent increase in sequential
pricing. Volume declined by 2 percent from the prior quarter as the
business nearly offset approximately 8 kt of lost production due to
sourcing constraints and further declines in automotive build rates
globally amid semiconductor shortages. Sourcing and inflationary
challenges broadened across the third quarter to span raw
materials, logistics, and energy. Supply challenges negatively
impacted Engineered Materials by an incremental $50 million over
the second quarter, inclusive of inflation and lost production. A
rapid surge in natural gas prices in Europe and the US accounted
for approximately $20 million of that negative impact. Amid this
environment, the commercial team's execution of price increases for
the third consecutive quarter drove resilient third quarter GAAP
operating profit of $91 million and adjusted EBIT of $137 million.
GAAP operating profit and adjusted EBIT margins were 13 percent and
20 percent, respectively. Affiliate earnings increased by $8
million during the third quarter, primarily due to improved
performance by Ibn Sina.
Acetyl Chain
The Acetyl Chain generated record net sales of $1.5 billion, a 6
percent increase from the prior quarter due to sequential expansion
in pricing and volume. Pricing increased 3 percent as the business
offset moderation in Chinese acetic acid pricing across the quarter
with commercial actions in the Western Hemisphere and in downstream
emulsions, redispersible powders, and EVA products. Volume
increased 3 percent sequentially as the Acetyl Chain flexed its
global production network and sourced the second highest-ever
volume of third-party acetyls to meet elevated customer demand
across regions. The Acetyl Chain successfully offset approximately
$50 million in sequential inflation to generate record GAAP
operating profit and adjusted EBIT of $517 million, respectively,
during the third quarter. The business also delivered operating
profit margin and adjusted EBIT margin of 35 percent each. During
external disruptions to Bay City and Nanjing production due to
Hurricane Nicholas precautions and energy curtailment,
respectively, the Acetyl Chain pulled forward turnaround and
maintenance activity that was previously planned for the fourth
quarter.
Acetate Tow
Acetate Tow generated net sales of $128 million during the third
quarter, which reflected a sequential volume decline of 8 percent
and stable pricing. The business was negatively impacted by
approximately $5 million from recently imposed US sanctions against
Belarus, which resulted in lost third quarter sales and a write-off
of currently uncollectible accounts. Higher costs for natural gas
and acetyls contributed to sequentially lower third quarter GAAP
operating profit of $12 million and adjusted EBIT of $46 million.
Dividends from affiliates in the quarter were $34 million.
Cash Flow and Tax
The Company reported record operating cash flow of $630 million
and record free cash flow of $520 million in the third quarter.
Capital expenditures in the quarter were $102 million. The Company
returned $376 million in cash to shareholders during the third
quarter, including $300 million of share repurchases and $76
million of dividends.
The effective US GAAP tax rate of 16 percent in the third
quarter was higher in comparison to 12 percent in the same quarter
of last year, primarily due to increased earnings in high tax
jurisdictions. The full year 2021 adjusted tax rate remains 15
percent versus 12 percent in the prior year, primarily due to
increased earnings in high tax jurisdictions.
Outlook
"Demand for our products remains strong across most end markets
as we enter the fourth quarter and we expect will offset any
typical winter seasonality," said Lori Ryerkerk, chairman and chief
executive officer. "Despite ongoing sourcing and logistics
headwinds, which will continue to be our limiting constraint in
meeting elevated demand, we expect to deliver fourth quarter
adjusted earnings of approximately $5.00 per share. Our teams have
been executing on opportunities to translate record performance
across 2021 into future growth. With the close of the Santoprene
acquisition expected in the fourth quarter, we expect to have
deployed over $2.7 billion this year to organic investments,
M&A, and share repurchases to drive future earnings per share
growth in addition to approximately $300 million in dividends.
These actions position us well amid a strong demand backdrop going
into next year to deliver 2022 adjusted earnings of at least $15.00
per share, well in excess of the 2022 outlook provided at Investor
Day in March."
A reconciliation of forecasted adjusted earnings per share to US
GAAP diluted earnings per share is not available without
unreasonable efforts because a forecast of Certain Items, such as
mark-to-market pension gains/losses, is not practical. For more
information, see "Non-GAAP Financial Measures" below.
The Company's prepared remarks related to the third quarter will
be posted on its website at investors.celanese.com under Financial
Information/Financial Document Library on October 21, 2021.
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 chemical leader in the
production of differentiated chemistry solutions and specialty
materials used in most major industries and consumer applications.
Our businesses use the full breadth of Celanese's global chemistry,
technology and commercial expertise to create value for our
customers, employees, shareholders and the corporation. As we
partner with our customers to solve their most critical business
needs, we strive to make a positive impact on our communities and
the world through The Celanese Foundation. Based in Dallas,
Celanese employs approximately 7,700 employees worldwide and had
2020 net sales of $5.7 billion. For more information about Celanese
Corporation and its product offerings, visit www.celanese.com.
Forward-Looking Statements
This release may contain "forward-looking statements," which
include information concerning the Company's plans, objectives,
goals, strategies, future revenues or performance, capital
expenditures, financing needs and other information that is not
historical information. All forward-looking statements are based
upon current expectations and beliefs and various assumptions.
There can be no assurance that the Company will realize these
expectations or that these beliefs will prove correct. There are a
number of risks and uncertainties that could cause actual results
to differ materially from the results expressed or implied in the
forward-looking statements contained in this release. These risks
and uncertainties include, among other things: the extent to which
the COVID-19 pandemic continues to adversely impact the economic
environment, market demand and our operations, as well as the pace
of any economic recovery; 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,
mobility, textiles, medical, electronics and construction
industries; changes in the price and availability of raw materials,
particularly changes in the demand for, supply of, and market
prices of ethylene, methanol, natural gas, wood pulp and fuel oil
and the prices for electricity and other energy sources; the
ability to pass increases in raw material prices on to customers or
otherwise improve margins through price increases; the ability to
maintain plant utilization rates and to implement planned capacity
additions and expansions as well as facility turnarounds; the
ability to reduce or maintain their current levels of production
costs and to improve productivity by implementing technological
improvements to existing plants; the ability to identify desirable
potential acquisition targets and to complete acquisition or
investment transactions consistent with the Company's strategy; the
ability to identify and execute on other attractive investment
opportunities towards which to deploy capital; increased price
competition and the introduction of competing products by other
companies; 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, cyber security incidents, terrorism or
political unrest, public health crises (including, but not limited
to, the COVID-19 pandemic); other unforeseen events or delays in
construction or operation of facilities, including as a result of
geopolitical conditions, the occurrence of acts of war or terrorist
incidents or as a result of weather or natural disasters or other
crises including public health crises; the ability to obtain
governmental approvals and to construct facilities on terms and
schedules acceptable to the Company; changes in the degree of
intellectual property and other legal protection afforded to our
products or technologies, or the theft of such intellectual
property; potential liability for remedial actions and increased
costs under existing or future environmental, health and safety
regulations, including those relating to climate change; potential
liability resulting from pending or future litigation, or from
changes in the laws, regulations or policies of governments or
other governmental activities in the countries in which we operate;
changes in currency exchange rates and interest rates; our level of
indebtedness, which could diminish our ability to raise additional
capital to fund operations or limit our ability to react to changes
in the economy or the chemicals industry; tax rates and changes
thereto; our ability to obtain regulatory approval for, and satisfy
closing conditions to, any transactions described herein; and
various other factors discussed from time to time in the Company's
filings with the Securities and Exchange Commission.
The extent to which COVID-19 will adversely impact our business,
financial condition and results of operations will depend on
numerous evolving factors, which are highly uncertain, rapidly
changing and cannot be predicted, including: the extent of any
resurgence in infections and the spread of the disease, and the
effectiveness of any vaccines; additional governmental, business
and individual actions to contain the spread of the outbreak,
including social distancing, work-at-home, stay-at-home and
shelter-in-place orders and shutdowns, travel restrictions and
quarantines; the extent to which these conditions depress economic
activity generally and demand for our products specifically and
affect the financial markets; the effect of the outbreak on our
customers, suppliers, supply chain and other business partners; our
ability during the outbreak to provide our products and services,
including the health and well-being of our employees; business
disruptions caused by actual or potential plant, workplace and
office closures; the risk that we could be exposed to liability,
negative publicity or reputational harm related to any incidents of
actual or perceived transmission of COVID-19 among employees at our
facilities; the ability of our customers to pay for our products
and services during and following the outbreak; the impact of the
outbreak on the financial markets and economic activity generally;
our ability to access usual sources of liquidity on reasonable
terms; and our ability to comply with the financial covenant in our
Credit Agreement if a material and prolonged economic downturn
results in increased indebtedness or substantially lower
EBITDA.
Any forward-looking statement speaks only as of the date on
which it is made, and the Company undertakes no obligation to
update any forward-looking statements to reflect events or
circumstances after the date on which it is made or to reflect the
occurrence of anticipated or unanticipated events or
circumstances.
Non-GAAP Financial Measures
Presentation
This document presents the Company's three business segments,
Engineered Materials, Acetate Tow and Acetyl Chain.
Use of Non-US GAAP Financial Information
This release uses the following Non-US GAAP measures: adjusted
EBIT, adjusted EBIT margin, operating EBITDA, adjusted earnings per
share and free cash flow. These measures are not recognized in
accordance with US GAAP and should not be viewed as an alternative
to US GAAP measures of performance or liquidity. The most directly
comparable financial measure presented in accordance with US GAAP
in our consolidated financial statements for adjusted EBIT and
operating EBITDA is net earnings (loss) attributable to Celanese
Corporation; for adjusted EBIT margin is operating margin; for
adjusted earnings per share is earnings (loss) from continuing
operations attributable to Celanese Corporation per common
share-diluted; and for free cash flow is net cash provided by (used
in) operations.
Definitions of Non-US GAAP Financial
Measures
- Adjusted EBIT is a performance measure used by the Company and
is defined by the Company as net earnings (loss) attributable to
Celanese Corporation, plus (earnings) loss from discontinued
operations, less interest income, plus interest expense, plus
refinancing expense and taxes, and further adjusted for Certain
Items (refer to Table 8 of our Non-US GAAP Financial Measures and
Supplemental Information document). We do not provide
reconciliations for adjusted EBIT on a forward-looking basis
(including those contained in this document) when we are unable to
provide a meaningful or accurate calculation or estimation of
reconciling items and the information is not available without
unreasonable effort. This is due to the inherent difficulty of
forecasting the timing and amount of Certain Items, such as
mark-to-market pension gains and losses, that have not yet
occurred, are out of our control and/or cannot be reasonably
predicted. For the same reasons, we are unable to address the
probable significance of the unavailable information. Adjusted EBIT
margin is defined by the Company as adjusted EBIT divided by net
sales.
- Operating EBITDA is a performance measure used by the Company
and is defined by the Company as net earnings (loss) attributable
to Celanese Corporation, plus (earnings) loss from discontinued
operations, less interest income, plus interest expense, plus
refinancing expense, taxes and depreciation and amortization, and
further adjusted for Certain Items, which Certain Items include
accelerated depreciation and amortization expense. Operating EBITDA
is equal to adjusted EBIT plus depreciation and amortization.
- Adjusted earnings per share is a performance measure used by
the Company and is defined by the Company as earnings (loss) from
continuing operations attributable to Celanese Corporation,
adjusted for income tax (provision) benefit, Certain Items, and
refinancing and related expenses, divided by the number of basic
common shares and dilutive restricted stock units and stock options
calculated using the treasury method. We do not provide
reconciliations for adjusted earnings per share on a
forward-looking basis (including those contained in this document)
when we are unable to provide a meaningful or accurate calculation
or estimation of reconciling items and the information is not
available without unreasonable effort. This is due to the inherent
difficulty of forecasting the timing and amount of Certain Items,
such as mark-to-market pension gains and losses, that have not yet
occurred, are out of our control and/or cannot be reasonably
predicted. For the same reasons, we are unable to address the
probable significance of the unavailable information. Note: The
income tax expense (benefit) on Certain Items ("Non-GAAP
adjustments") is determined using the applicable rates in the
taxing jurisdictions in which the Non-GAAP adjustments occurred and
includes both current and deferred income tax expense (benefit).
The income tax rate used for adjusted earnings per share
approximates the midpoint in a range of forecasted tax rates for
the year. This range may include certain partial or full-year
forecasted tax opportunities and related costs, where applicable,
and specifically excludes changes in uncertain tax positions,
discrete recognition of GAAP items on a quarterly basis, other
pre-tax items adjusted out of our GAAP earnings for adjusted
earnings per share purposes and changes in management's assessments
regarding the ability to realize deferred tax assets for GAAP. In
determining the adjusted earnings per share tax rate, we reflect
the impact of foreign tax credits when utilized, or expected to be
utilized, absent discrete events impacting the timing of foreign
tax credit utilization. We analyze this rate quarterly and adjust
it if there is a material change in the range of forecasted tax
rates; an updated forecast would not necessarily result in a change
to our tax rate used for adjusted earnings per share. The adjusted
tax rate is an estimate and may differ from the actual tax rate
used for GAAP reporting in any given reporting period. Table 3a of
our Non-US GAAP Financial Measures and Supplemental Information
document summarizes the reconciliation of our estimated GAAP
effective tax rate to the adjusted tax rate. The estimated GAAP
rate excludes discrete recognition of GAAP items due to our
inability to forecast such items. As part of the year-end
reconciliation, we will update the reconciliation of the GAAP
effective tax rate to the adjusted tax rate for actual
results.
- Free cash flow is a liquidity measure used by the Company and
is defined by the Company as cash flow from operations, less
capital expenditures on property, plant and equipment, and adjusted
for capital contributions from or distributions to Mitsui &
Co., Ltd. ("Mitsui") related to our methanol joint venture, Fairway
Methanol LLC ("Fairway").
Reconciliation of Non-US GAAP Financial
Measures
Reconciliations of the Non-US GAAP financial measures used in
this press release to the comparable US GAAP financial measure,
together with information about the purposes and uses of Non-US
GAAP financial measures, are included in our Non-US GAAP Financial
Measures and Supplemental Information document filed as an exhibit
to our Current Report on Form 8-K filed with the SEC on or about
October 21, 2021 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
September 30,
2021
June 30, 2021
September 30,
2020
(In $ millions, except share
and per share data)
Net sales
2,266
2,198
1,411
Cost of sales
(1,551
)
(1,437
)
(1,084
)
Gross profit
715
761
327
Selling, general and administrative
expenses
(165
)
(161
)
(106
)
Amortization of intangible assets
(6
)
(5
)
(6
)
Research and development expenses
(21
)
(22
)
(19
)
Other (charges) gains, net
—
(3
)
(10
)
Foreign exchange gain (loss), net
2
(3
)
(2
)
Gain (loss) on disposition of businesses
and assets, net
11
—
—
Operating profit (loss)
536
567
184
Equity in net earnings (loss) of
affiliates
44
37
25
Non-operating pension and other
postretirement employee benefit (expense) income
37
38
28
Interest expense
(21
)
(24
)
(28
)
Refinancing expense
(9
)
—
—
Interest income
2
4
1
Dividend income - equity investments
35
37
29
Other income (expense), net
(2
)
1
2
Earnings (loss) from continuing operations
before tax
622
660
241
Income tax (provision) benefit
(102
)
(116
)
(30
)
Earnings (loss) from continuing
operations
520
544
211
Earnings (loss) from operation of
discontinued operations
(17
)
(6
)
(2
)
Income tax (provision) benefit from
discontinued operations
4
2
—
Earnings (loss) from discontinued
operations
(13
)
(4
)
(2
)
Net earnings (loss)
507
540
209
Net (earnings) loss attributable to
noncontrolling interests
(1
)
(2
)
(2
)
Net earnings (loss) attributable to
Celanese Corporation
506
538
207
Amounts attributable to Celanese
Corporation
Earnings (loss) from continuing
operations
519
542
209
Earnings (loss) from discontinued
operations
(13
)
(4
)
(2
)
Net earnings (loss)
506
538
207
Earnings (loss) per common share -
basic
Continuing operations
4.70
4.83
1.77
Discontinued operations
(0.12
)
(0.04
)
(0.02
)
Net earnings (loss) - basic
4.58
4.79
1.75
Earnings (loss) per common share -
diluted
Continuing operations
4.67
4.81
1.76
Discontinued operations
(0.11
)
(0.04
)
(0.01
)
Net earnings (loss) - diluted
4.56
4.77
1.75
Weighted average shares (in millions)
Basic
110.5
112.3
118.0
Diluted
111.0
112.8
118.6
Consolidated Balance Sheets - Unaudited
As of September
30,
As of December
31,
2021
2020
(In $ millions)
ASSETS
Current Assets
Cash and cash equivalents
1,340
955
Trade receivables - third party and
affiliates, net
1,172
792
Non-trade receivables, net
566
450
Inventories
1,159
978
Marketable securities
28
533
Other assets
90
55
Total current assets
4,355
3,763
Investments in affiliates
842
820
Property, plant and equipment, net
3,924
3,939
Operating lease right-of-use assets
231
232
Deferred income taxes
254
259
Other assets
543
411
Goodwill
1,131
1,166
Intangible assets, net
303
319
Total assets
11,583
10,909
LIABILITIES AND EQUITY
Current Liabilities
Short-term borrowings and current
installments of long-term debt - third party and affiliates
103
496
Trade payables - third party and
affiliates
1,042
797
Other liabilities
529
680
Income taxes payable
138
—
Total current liabilities
1,812
1,973
Long-term debt, net of unamortized
deferred financing costs
3,724
3,227
Deferred income taxes
537
509
Uncertain tax positions
272
240
Benefit obligations
592
643
Operating lease liabilities
197
208
Other liabilities
178
214
Commitments and Contingencies
Stockholders' Equity
Treasury stock, at cost
(5,293
)
(4,494
)
Additional paid-in capital
313
257
Retained earnings
9,227
8,091
Accumulated other comprehensive income
(loss), net
(328
)
(328
)
Total Celanese Corporation stockholders'
equity
3,919
3,526
Noncontrolling interests
352
369
Total equity
4,271
3,895
Total liabilities and equity
11,583
10,909
Non-US GAAP Financial
Measures and Supplemental Information
October 21, 2021
In this document, the terms the "Company," "we" and "our" refer
to Celanese Corporation and its subsidiaries on a consolidated
basis.
Purpose
The purpose of this document is to provide information of
interest to investors, analysts and other parties including
supplemental financial information and reconciliations and other
information concerning our use of non-US GAAP financial measures.
This document is updated quarterly.
Presentation
This document presents the Company's three business segments,
Engineered Materials, Acetate Tow and Acetyl Chain.
Use of Non-US GAAP Financial Measures
From time to time, management may publicly disclose certain
numerical "non-GAAP financial measures" in the course of our
earnings releases, financial presentations, earnings conference
calls, investor and analyst meetings and otherwise. For these
purposes, the Securities and Exchange Commission ("SEC") defines a
"non-GAAP financial measure" as a numerical measure of historical
or future financial performance, financial position or cash flows
that excludes amounts, or is subject to adjustments that
effectively exclude amounts, included in the most directly
comparable measure calculated and presented in accordance with US
GAAP, and vice versa for measures that include amounts, or are
subject to adjustments that effectively include amounts, that are
excluded from the most directly comparable US GAAP measure so
calculated and presented. For these purposes, "GAAP" refers to
generally accepted accounting principles in the United States.
Non-GAAP financial measures disclosed by management are provided
as additional information to investors, analysts and other parties
because the Company believes them to be important supplemental
measures for assessing our financial and operating results and as a
means to evaluate our financial condition and period-to-period
comparisons. These non-GAAP financial measures should be viewed as
supplemental to, and should not be considered in isolation or as
alternatives to, net earnings (loss), operating profit (loss),
operating margin, cash flow from operating activities (together
with cash flow from investing and financing activities), earnings
per share or any other US GAAP financial measure. These non-GAAP
financial measures should be considered within the context of our
complete audited and unaudited financial results for the given
period, which are available on the Financial Information/Financial
Document Library page of our website, investors.celanese.com. The
definition and method of calculation of the non-GAAP financial
measures used herein may be different from other companies' methods
for calculating measures with the same or similar titles.
Investors, analysts and other parties should understand how another
company calculates such non-GAAP financial measures before
comparing the other company's non-GAAP financial measures to any of
our own. These non-GAAP financial measures may not be indicative of
the historical operating results of the Company nor are they
intended to be predictive or projections of future results.
Pursuant to the requirements of SEC Regulation G, whenever we
refer to a non-GAAP financial measure, we will also present in this
document, in the presentation itself or on a Form 8-K in connection
with the presentation on the Financial Information/Financial
Document Library page of our website, investors.celanese.com, to
the extent practicable, the most directly comparable financial
measure calculated and presented in accordance with GAAP, along
with a reconciliation of the differences between the non-GAAP
financial measure we reference and such comparable GAAP financial
measure.
This document includes definitions and reconciliations of
non-GAAP financial measures used from time to time by the
Company.
Specific Measures Used
This document provides information about the following non-GAAP
measures: adjusted EBIT, adjusted EBIT margin, operating EBITDA,
operating EBITDA margin, operating profit (loss) attributable to
Celanese Corporation, adjusted earnings per share, net debt, free
cash flow and return on invested capital (adjusted). The most
directly comparable financial measure presented in accordance with
US GAAP in our consolidated financial statements for adjusted EBIT
and operating EBITDA is net earnings (loss) attributable to
Celanese Corporation; for adjusted EBIT margin and operating EBITDA
margin is operating margin; for operating profit (loss)
attributable to Celanese Corporation is operating profit (loss);
for adjusted earnings per share is earnings (loss) from continuing
operations attributable to Celanese Corporation per common
share-diluted; for net debt is total debt; for free cash flow is
net cash provided by (used in) operations; and for return on
invested capital (adjusted) is net earnings (loss) attributable to
Celanese Corporation divided by the sum of the average of beginning
and end of the year short- and long-term debt and Celanese
Corporation stockholders' equity.
Definitions
- Adjusted EBIT is a performance measure used by the Company and
is defined by the Company as net earnings (loss) attributable to
Celanese Corporation, plus (earnings) loss from discontinued
operations, less interest income, plus interest expense, plus
refinancing expense and taxes, and further adjusted for Certain
Items (refer to Table 8). We believe that adjusted EBIT provides
transparent and useful information to management, investors,
analysts and other parties in evaluating and assessing our primary
operating results from period-to-period after removing the impact
of unusual, non-operational or restructuring-related activities
that affect comparability. Our management recognizes that adjusted
EBIT has inherent limitations because of the excluded items.
Adjusted EBIT is one of the measures management uses for planning
and budgeting, monitoring and evaluating financial and operating
results and as a performance metric in the Company's incentive
compensation plan. We do not provide reconciliations for adjusted
EBIT on a forward-looking basis (including those contained in this
document) when we are unable to provide a meaningful or accurate
calculation or estimation of reconciling items and the information
is not available without unreasonable effort. This is due to the
inherent difficulty of forecasting the timing and amount of Certain
Items, such as mark-to-market pension gains and losses, that have
not yet occurred, are out of our control and/or cannot be
reasonably predicted. For the same reasons, we are unable to
address the probable significance of the unavailable information.
Adjusted EBIT margin is defined by the Company as adjusted EBIT
divided by net sales. Adjusted EBIT margin has the same uses and
limitations as Adjusted EBIT.
- Operating EBITDA is a performance measure used by the Company
and is defined by the Company as net earnings (loss) attributable
to Celanese Corporation, plus (earnings) loss from discontinued
operations, less interest income, plus interest expense, plus
refinancing expense, taxes and depreciation and amortization, and
further adjusted for Certain Items, which Certain Items include
accelerated depreciation and amortization expense. Operating EBITDA
is equal to adjusted EBIT plus depreciation and amortization. We
believe that Operating EBITDA provides transparent and useful
information to investors, analysts and other parties in evaluating
our operating performance relative to our peer companies. Operating
EBITDA margin is defined by the Company as Operating EBITDA divided
by net sales. Operating EBITDA margin has the same uses and
limitations as Operating EBITDA.
- Operating profit (loss) attributable to Celanese Corporation is
defined by the Company as operating profit (loss), less earnings
(loss) attributable to noncontrolling interests ("NCI"). We believe
that operating profit (loss) attributable to Celanese Corporation
provides transparent and useful information to management,
investors, analysts and other parties in evaluating our core
operational performance. Operating margin attributable to Celanese
Corporation is defined by the Company as operating profit (loss)
attributable to Celanese Corporation divided by net sales.
Operating margin attributable to Celanese Corporation has the same
uses and limitations as Operating profit (loss) attributable to
Celanese Corporation.
- Adjusted earnings per share is a performance measure used by
the Company and is defined by the Company as earnings (loss) from
continuing operations attributable to Celanese Corporation,
adjusted for income tax (provision) benefit, Certain Items, and
refinancing and related expenses, divided by the number of basic
common shares and dilutive restricted stock units and stock options
calculated using the treasury method. We believe that adjusted
earnings per share provides transparent and useful information to
management, investors, analysts and other parties in evaluating and
assessing our primary operating results from period-to-period after
removing the impact of the above stated items that affect
comparability and as a performance metric in the Company's
incentive compensation plan. We do not provide reconciliations for
adjusted earnings per share on a forward-looking basis (including
those contained in this document) when we are unable to provide a
meaningful or accurate calculation or estimation of reconciling
items and the information is not available without unreasonable
effort. This is due to the inherent difficulty of forecasting the
timing and amount of Certain Items, such as mark-to-market pension
gains and losses, that have not yet occurred, are out of our
control and/or cannot be reasonably predicted. For the same
reasons, we are unable to address the probable significance of the
unavailable information. Note: The income tax expense (benefit) on
Certain Items ("Non-GAAP adjustments") is determined using the
applicable rates in the taxing jurisdictions in which the Non-GAAP
adjustments occurred and includes both current and deferred income
tax expense (benefit). The income tax rate used for adjusted
earnings per share approximates the midpoint in a range of
forecasted tax rates for the year. This range may include certain
partial or full-year forecasted tax opportunities and related
costs, where applicable, and specifically excludes changes in
uncertain tax positions, discrete recognition of GAAP items on a
quarterly basis, other pre-tax items adjusted out of our GAAP
earnings for adjusted earnings per share purposes and changes in
management's assessments regarding the ability to realize deferred
tax assets for GAAP. In determining the adjusted earnings per share
tax rate, we reflect the impact of foreign tax credits when
utilized, or expected to be utilized, absent discrete events
impacting the timing of foreign tax credit utilization. We analyze
this rate quarterly and adjust it if there is a material change in
the range of forecasted tax rates; an updated forecast would not
necessarily result in a change to our tax rate used for adjusted
earnings per share. The adjusted tax rate is an estimate and may
differ from the actual tax rate used for GAAP reporting in any
given reporting period. Table 3a summarizes the reconciliation of
our estimated GAAP effective tax rate to the adjusted tax rate. The
estimated GAAP rate excludes discrete recognition of GAAP items due
to our inability to forecast such items. As part of the year-end
reconciliation, we will update the reconciliation of the GAAP
effective tax rate to the adjusted tax rate for actual
results.
- Free cash flow is a liquidity measure used by the Company and
is defined by the Company as net cash provided by (used in)
operations, less capital expenditures on property, plant and
equipment, and adjusted for capital contributions from or
distributions to Mitsui & Co., Ltd. ("Mitsui") related to our
methanol joint venture, Fairway Methanol LLC ("Fairway"). We
believe that free cash flow provides useful information to
management, investors, analysts and other parties in evaluating the
Company's liquidity and credit quality assessment because it
provides an indication of the long-term cash generating ability of
our business. Although we use free cash flow as a measure to assess
the liquidity generated by our business, the use of free cash flow
has important limitations, including that free cash flow does not
reflect the cash requirements necessary to service our
indebtedness, lease obligations, unconditional purchase obligations
or pension and postretirement funding obligations.
- Net debt is defined by the Company as total debt less cash and
cash equivalents. We believe that net debt provides useful
information to management, investors, analysts and other parties in
evaluating changes to the Company's capital structure and credit
quality assessment.
- Return on invested capital (adjusted) is defined by the Company
as adjusted EBIT, tax effected using the adjusted tax rate, divided
by the sum of the average of beginning and end of the year short-
and long-term debt and Celanese Corporation stockholders' equity.
We believe that return on invested capital (adjusted) provides
useful information to management, investors, analysts and other
parties in order to assess our income generation from the point of
view of our stockholders and creditors who provide us with capital
in the form of equity and debt and whether capital invested in the
Company yields competitive returns.
Supplemental Information
Supplemental Information we believe to be of interest to
investors, analysts and other parties includes the following:
- Net sales for each of our business segments and the percentage
increase or decrease in net sales attributable to price, volume,
currency and other factors for each of our business segments.
- Cash dividends received from our equity investments.
- For those consolidated ventures in which the Company owns or is
exposed to less than 100% of the economics, the outside
stockholders' interests are shown as NCI. Beginning in 2014, this
includes Fairway for which the Company's ownership percentage is
50%. Amounts referred to as "attributable to Celanese Corporation"
are net of any applicable NCI.
Results Unaudited
The results in this document, together with the adjustments made
to present the results on a comparable basis, have not been audited
and are based on internal financial data furnished to management.
Quarterly results should not be taken as an indication of the
results of operations to be reported for any subsequent period or
for the full fiscal year.
Table 1
Adjusted EBIT and Operating EBITDA - Reconciliation of
Non-GAAP Measures - Unaudited
Q3 '21
Q2 '21
Q1 '21
2020
Q4 '20
Q3 '20
Q2 '20
Q1 '20
(In $ millions)
Net earnings (loss) attributable to
Celanese Corporation
506
538
322
1,985
1,453
207
107
218
(Earnings) loss from discontinued
operations
13
4
1
12
—
2
3
7
Interest income
(2
)
(4
)
(1
)
(6
)
(2
)
(1
)
(1
)
(2
)
Interest expense
21
24
25
109
26
28
27
28
Refinancing expense
9
—
—
—
—
—
—
—
Income tax provision (benefit)
102
116
85
247
117
30
35
65
Certain Items attributable to Celanese
Corporation (Table 8)
(1
)
13
50
(1,216
)
(1,294
)
24
28
26
Adjusted EBIT
648
691
482
1,131
300
290
199
342
Depreciation and amortization
expense(1)
91
90
88
344
87
88
86
83
Operating EBITDA
739
781
570
1,475
387
378
285
425
Q3 '21
Q2 '21
Q1 '21
2020
Q4 '20
Q3 '20
Q2 '20
Q1 '20
(In $ millions)
Engineered Materials
2
1
2
5
2
1
—
2
Acetate Tow
—
—
—
—
—
—
—
—
Acetyl Chain
—
—
—
1
—
—
1
—
Other Activities(2)
—
—
—
—
—
—
—
—
Accelerated depreciation and
amortization expense
2
1
2
6
2
1
1
2
Depreciation and amortization
expense(1)
91
90
88
344
87
88
86
83
Total depreciation and amortization
expense
93
91
90
350
89
89
87
85
______________________________ (1)
Excludes accelerated depreciation and
amortization expense as detailed in the table above, which amounts
are included in Certain Items above.
(2)
Other Activities includes corporate
Selling, general and administrative ("SG&A") expenses, the
results of captive insurance companies and certain components of
net periodic benefit cost (interest cost, expected return on plan
assets and net actuarial gains and losses).
Table 2 - Supplemental Segment Data and Reconciliation of
Segment Adjusted EBIT and Operating EBITDA - Non-GAAP Measures -
Unaudited
Q3 '21
Q2 '21
Q1 '21
2020
Q4 '20
Q3 '20
Q2 '20
Q1 '20
(In $ millions, except
percentages)
Operating Profit (Loss) / Operating
Margin
Engineered Materials
91
13.3
%
123
18.0
%
130
20.2
%
235
11.3
%
62
10.8
%
84
16.0
%
(13
)
(3.1
)%
102
18.1
%
Acetate Tow
12
9.4
%
24
17.4
%
16
13.4
%
118
22.7
%
30
22.4
%
30
23.3
%
31
24.4
%
27
20.9
%
Acetyl Chain(1)
517
34.7
%
516
36.6
%
251
23.8
%
563
17.9
%
186
20.4
%
121
15.6
%
121
18.3
%
135
16.9
%
Other Activities(2)
(84
)
(96
)
(71
)
(252
)
(75
)
(51
)
(56
)
(70
)
Total
536
23.7
%
567
25.8
%
326
18.1
%
664
11.7
%
203
12.8
%
184
13.0
%
83
7.0
%
194
13.3
%
Less: Net Earnings (Loss) Attributable to
NCI(1)
1
2
1
7
1
2
2
2
Operating Profit (Loss) Attributable to
Celanese Corporation
535
23.6
%
565
25.7
%
325
18.1
%
657
11.6
%
202
12.7
%
182
12.9
%
81
6.8
%
192
13.2
%
Operating Profit (Loss) / Operating
Margin Attributable to Celanese Corporation
Engineered Materials
91
13.3
%
123
18.0
%
130
20.2
%
235
11.3
%
62
10.8
%
84
16.0
%
(13
)
(3.1
)%
102
18.1
%
Acetate Tow
12
9.4
%
24
17.4
%
16
13.4
%
118
22.7
%
30
22.4
%
30
23.3
%
31
24.4
%
27
20.9
%
Acetyl Chain(1)
516
34.7
%
514
36.5
%
250
23.7
%
556
17.7
%
185
20.3
%
119
15.3
%
119
18.0
%
133
16.6
%
Other Activities(2)
(84
)
(96
)
(71
)
(252
)
(75
)
(51
)
(56
)
(70
)
Total
535
23.6
%
565
25.7
%
325
18.1
%
657
11.6
%
202
12.7
%
182
12.9
%
81
6.8
%
192
13.2
%
Equity Earnings and Dividend Income,
Other Income (Expense) Attributable to Celanese Corporation
Engineered Materials
40
32
25
115
15
21
26
53
Acetate Tow
34
37
41
126
29
28
32
37
Acetyl Chain
2
2
2
5
2
2
—
1
Other Activities(2)
1
4
1
19
4
5
5
5
Total
77
75
69
265
50
56
63
96
Non-Operating Pension and Other
Post-Retirement Employee Benefit (Expense) Income Attributable to
Celanese Corporation
Engineered Materials
—
—
—
1
1
—
—
—
Acetate Tow
—
—
—
—
—
—
—
—
Acetyl Chain
—
—
—
—
—
—
—
—
Other Activities(2)
37
38
38
16
(67
)
28
27
28
Total
37
38
38
17
(66
)
28
27
28
Gain (Loss) On Sale of Investments in
Affiliates
Engineered Materials
—
—
—
1,408
1,408
—
—
—
Acetate Tow
—
—
—
—
—
—
—
—
Acetyl Chain
—
—
—
—
—
—
—
—
Other Activities(2)
—
—
—
—
—
—
—
—
Total
—
—
—
1,408
1,408
—
—
—
Certain Items Attributable to Celanese
Corporation (Table 8)
Engineered Materials
6
6
5
(1,356
)
(1,404
)
11
27
10
Acetate Tow
—
1
4
5
—
1
1
3
Acetyl Chain
(1
)
(2
)
30
7
—
5
(3
)
5
Other Activities(2)
(6
)
8
11
128
110
7
3
8
Total
(1
)
13
50
(1,216
)
(1,294
)
24
28
26
______________________________ (1)
Net earnings (loss) attributable to NCI is
included within the Acetyl Chain segment.
(2)
Other Activities includes corporate
SG&A expenses, the results of captive insurance companies and
certain components of net periodic benefit cost (interest cost,
expected return on plan assets and net actuarial gains and
losses).
Table 2 - Supplemental Segment Data and Reconciliation of
Segment Adjusted EBIT and Operating EBITDA - Non-GAAP Measures -
Unaudited (cont.)
Q3 '21
Q2 '21
Q1 '21
2020
Q4 '20
Q3 '20
Q2 '20
Q1 '20
(In $ millions, except
percentages)
Adjusted EBIT / Adjusted EBIT
Margin
Engineered Materials
137
20.0
%
161
23.6
%
160
24.8
%
403
19.4
%
82
14.3
%
116
22.1
%
40
9.5
%
165
29.3
%
Acetate Tow
46
35.9
%
62
44.9
%
61
51.3
%
249
48.0
%
59
44.0
%
59
45.7
%
64
50.4
%
67
51.9
%
Acetyl Chain
517
34.7
%
514
36.5
%
282
26.7
%
568
18.0
%
187
20.5
%
126
16.2
%
116
17.5
%
139
17.4
%
Other Activities(2)
(52
)
(46
)
(21
)
(89
)
(28
)
(11
)
(21
)
(29
)
Total
648
28.6
%
691
31.4
%
482
26.8
%
1,131
20.0
%
300
18.9
%
290
20.6
%
199
16.7
%
342
23.4
%
Depreciation and Amortization
Expense(1)
Engineered Materials
33
34
33
129
32
33
32
32
Acetate Tow
10
9
10
36
10
9
9
8
Acetyl Chain
44
43
41
162
41
41
41
39
Other Activities(2)
4
4
4
17
4
5
4
4
Total
91
90
88
344
87
88
86
83
Operating EBITDA / Operating EBITDA
Margin
Engineered Materials
170
24.9
%
195
28.6
%
193
29.9
%
532
25.6
%
114
19.9
%
149
28.3
%
72
17.1
%
197
35.0
%
Acetate Tow
56
43.8
%
71
51.4
%
71
59.7
%
285
54.9
%
69
51.5
%
68
52.7
%
73
57.5
%
75
58.1
%
Acetyl Chain
561
37.7
%
557
39.5
%
323
30.6
%
730
23.2
%
228
25.1
%
167
21.5
%
157
23.7
%
178
22.3
%
Other Activities(2)
(48
)
(42
)
(17
)
(72
)
(24
)
(6
)
(17
)
(25
)
Total
739
32.6
%
781
35.5
%
570
31.7
%
1,475
26.1
%
387
24.3
%
378
26.8
%
285
23.9
%
425
29.1
%
______________________________ (1)
Excludes accelerated depreciation and
amortization expense, which amounts are included in Certain Items
above. See Table 1 for details.
(2)
Other Activities includes corporate
SG&A expenses, the results of captive insurance companies and
certain components of net periodic benefit cost (interest cost,
expected return on plan assets and net actuarial gains and
losses).
Table 3
Adjusted Earnings (Loss) per Share - Reconciliation of a
Non-GAAP Measure - Unaudited
Q3 '21
Q2 '21
Q1 '21
2020
Q4 '20
Q3 '20
Q2 '20
Q1 '20
per share
per share
per share
per share
per share
per share
per share
per share
(In $ millions, except per
share data)
Earnings (loss) from continuing operations
attributable to Celanese Corporation
519
4.67
542
4.81
323
2.83
1,997
16.85
1,453
12.50
209
1.76
110
0.93
225
1.88
Income tax provision (benefit)
102
116
85
247
117
30
35
65
Earnings (loss) from continuing operations
before tax
621
658
408
2,244
1,570
239
145
290
Certain Items attributable to Celanese
Corporation (Table 8)
(1
)
13
50
(1,216
)
(1,294
)
24
28
26
Refinancing and related expenses
9
—
—
—
—
—
—
—
Adjusted earnings (loss) from continuing
operations before tax
629
671
458
1,028
276
263
173
316
Income tax (provision) benefit on adjusted
earnings(1)
(94
)
(105
)
(64
)
(123
)
(33
)
(32
)
(18
)
(41
)
Adjusted earnings (loss) from
continuing operations(2)
535
4.82
566
5.02
394
3.46
905
7.64
243
2.09
231
1.95
155
1.30
275
2.29
Diluted shares (in
millions)(3)
Weighted average shares outstanding
110.5
112.3
113.5
117.8
115.7
118.0
118.3
119.3
Incremental shares attributable to equity
awards
0.5
0.5
0.5
0.7
0.6
0.6
0.5
0.6
Total diluted shares
111.0
112.8
114.0
118.5
116.3
118.6
118.8
119.9
______________________________
(1)
Calculated using adjusted
effective tax rates (Table 3a) as follows:
Q3 '21
Q2 '21
Q1 '21
2020
Q4 '20
Q3 '20
Q2 '20
Q1 '20
(In percentages)
Adjusted effective tax rate
15
16
14
12
12
12
10
13
(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)
2020
12.4
6.5
(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
2021
2020
(In percentages)
US GAAP annual effective tax rate
18
11
Discrete quarterly recognition of GAAP
items(1)
—
12
Tax impact of other charges and
adjustments(2)
(1
)
(9
)
Utilization of foreign tax credits
(2
)
(3
)
Changes in valuation allowances, excluding
impact of other charges and adjustments(3)
—
—
Other(4)
—
1
Adjusted tax rate
15
12
______________________________ 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)
Tax impacts related to full-year
forecasted tax opportunities and related costs.
Table 4
Net Sales by Segment - Unaudited
Q3 '21
Q2 '21
Q1 '21
2020
Q4 '20
Q3 '20
Q2 '20
Q1 '20
(In $ millions)
Engineered Materials
684
682
645
2,081
572
526
420
563
Acetate Tow
128
138
119
519
134
129
127
129
Acetyl Chain
1,489
1,409
1,056
3,147
910
776
662
799
Other Activities
—
—
—
—
—
—
—
—
Intersegment eliminations(1)
(35
)
(31
)
(22
)
(92
)
(25
)
(20
)
(16
)
(31
)
Net sales
2,266
2,198
1,798
5,655
1,591
1,411
1,193
1,460
___________________________
(1)
Includes intersegment sales
primarily related to the Acetyl Chain.
Table 4a
Factors Affecting Segment Net Sales Sequentially -
Unaudited
Three Months Ended September 30, 2021 Compared to Three
Months Ended June 30, 2021
Volume
Price
Currency
Other
Total
(In percentages)
Engineered Materials
(2
)
3
(1
)
—
—
Acetate Tow
(8
)
—
—
—
(8
)
Acetyl Chain
3
3
—
—
6
Total Company
1
3
(1
)
—
3
Three Months Ended June 30, 2021 Compared to Three Months
Ended March 31, 2021
Volume
Price
Currency
Other
Total
(In percentages)
Engineered Materials
(1
)
7
—
—
6
Acetate Tow
16
—
—
—
16
Acetyl Chain
7
27
—
—
34
Total Company
4
18
—
—
22
Three Months Ended March 30, 2021 Compared to Three Months
Ended December 31, 2020
Volume
Price
Currency
Other
Total
(In percentages)
Engineered Materials
6
6
1
—
13
Acetate Tow
(10
)
(1
)
—
—
(11
)
Acetyl Chain
(7
)
23
—
—
16
Total Company
(3
)
15
1
—
13
Three Months Ended December 31, 2020 Compared to Three Months
Ended September 30, 2020
Volume
Price
Currency
Other
Total
(In percentages)
Engineered Materials
7
—
2
—
9
Acetate Tow
4
(1
)
—
—
3
Acetyl Chain
6
10
1
—
17
Total Company
7
5
1
—
13
Three Months Ended September 30, 2020 Compared to Three
Months Ended June 30, 2020
Volume
Price
Currency
Other
Total
(In percentages)
Engineered Materials
27
(6
)
4
—
25
Acetate Tow
1
1
1
—
3
Acetyl Chain
18
(2
)
1
—
17
Total Company
20
(3
)
2
(1
)
18
Three Months Ended June 30, 2020 Compared to Three Months
Ended March 31, 2020
Volume
Price
Currency
Other
Total
(In percentages)
Engineered Materials
(25
)
—
—
—
(25
)
Acetate Tow
(3
)
1
—
—
(2
)
Acetyl Chain
(6
)
(11
)
—
—
(17
)
(1)
Total Company
(13
)
(6
)
—
1
(18
)
Three Months March 31, 2020 Compared to Three Months Ended
December 31, 2019
Volume
Price
Currency
Other
Total
(In percentages)
Engineered Materials
4
—
—
—
4
Acetate Tow
(9
)
(4
)
—
—
(13
)
Acetyl Chain
5
(1
)
—
—
4
Total Company
3
(1
)
—
—
2
________________________
(1)
2020 includes the effect of the
acquisition of the Elotex® brand.
Table 4b
Factors Affecting Segment Net Sales Year Over Year -
Unaudited
Three Months Ended September 30, 2021 Compared to Three
Months Ended September 30, 2020
Volume
Price
Currency
Other
Total
(In percentages)
Engineered Materials
11
17
2
—
30
Acetate Tow
—
(2
)
—
1
(1
)
Acetyl Chain
11
80
1
—
92
Total Company
10
50
1
—
61
Three Months Ended June 30, 2021 Compared to Three Months
Ended June 30, 2020
Volume
Price
Currency
Other
Total
(In percentages)
Engineered Materials
43
11
8
—
62
Acetate Tow
10
(1
)
—
—
9
Acetyl Chain
27
83
3
—
113
Total Company
31
50
4
(1
)
84
Three Months Ended March 31, 2021 Compared to Three Months
Ended March 31, 2020
Volume
Price
Currency
Other
Total
(In percentages)
Engineered Materials
7
2
6
—
15
Acetate Tow
(8
)
—
—
—
(8
)
Acetyl Chain
5
25
2
—
32
Total Company
5
14
4
—
23
Three Months Ended December 31, 2020 Compared to Three Months
Ended December 31, 2019
Volume
Price
Currency
Other
Total
(In percentages)
Engineered Materials
6
(4
)
4
—
6
Acetate Tow
(7
)
(3
)
1
—
(9
)
Acetyl Chain
19
(3
)
2
—
18
Total Company
12
(4
)
3
—
11
Three Months Ended September 30, 2020 Compared to Three
Months Ended September 30, 2019
Volume
Price
Currency
Other
Total
(In percentages)
Engineered Materials
(10
)
(3
)
2
—
(11
)
Acetate Tow
(15
)
(3
)
—
—
(18
)
Acetyl Chain
(1
)
(11
)
1
—
(11
)
Total Company
(6
)
(7
)
1
1
(11
)
Three Months Ended June 30, 2020 Compared to Three Months
Ended June 30, 2019
Volume
Price
Currency
Other
Total
(In percentages)
Engineered Materials
(27
)
(1
)
(1
)
—
(29
)
Acetate Tow
(18
)
(5
)
—
—
(23
)
Acetyl Chain
(14
)
(8
)
(1
)
—
(23
)
Total Company
(20
)
(5
)
(1
)
1
(25
)
Three Months March 31, 2020 Compared to Three Months Ended
March 31, 2019
Volume
Price
Currency
Other
Total
(In percentages)
Engineered Materials
(9
)
(5
)
(1
)
—
(15
)
Acetate Tow
(17
)
(5
)
—
—
(22
)
Acetyl Chain
(3
)
(7
)
(1
)
1
(10
)
Total Company
(7
)
(6
)
(1
)
1
(13
)
Table 4c
Factors Affecting Segment Net Sales Year Over Year -
Unaudited
Year Ended December 31, 2020 Compared to Year Ended December
31, 2019
Volume
Price
Currency
Other
Total
(In percentages)
Engineered Materials
(11
)
(3
)
1
—
(13
)
Acetate Tow
(14
)
(4
)
—
—
(18
)
Acetyl Chain
—
(8
)
1
—
(7
)
Total Company
(5
)
(6
)
—
1
(10
)
Table 5
Free Cash Flow - Reconciliation of a Non-GAAP Measure -
Unaudited
Q3 '21
Q2 '21
Q1 '21
2020
Q4 '20
Q3 '20
Q2 '20
Q1 '20
(In $ millions, except
percentages)
Net cash provided by (used in) investing
activities
(108
)
177
98
592
979
(78
)
(181
)
(128
)
Net cash provided by (used in) financing
activities
(228
)
(344
)
(371
)
(1,471
)
(933
)
(290
)
(232
)
(16
)
Net cash provided by (used in) operating
activities
630
427
116
1,343
274
431
379
259
Capital expenditures on property, plant
and equipment
(102
)
(110
)
(92
)
(364
)
(85
)
(72
)
(88
)
(119
)
Distributions to NCI
(8
)
(8
)
(5
)
(29
)
(8
)
(8
)
(8
)
(5
)
Free cash flow(1)(2)
520
309
19
950
181
351
283
135
Net sales
2,266
2,198
1,798
5,655
1,591
1,411
1,193
1,460
Free cash flow as % of Net
sales
22.9
%
14.1
%
1.1
%
16.8
%
11.4
%
24.9
%
23.7
%
9.2
%
______________________________
(1)
Free cash flow is a liquidity measure used
by the Company and is defined by the Company as net cash provided
by (used in) operating activities, less capital expenditures on
property, plant and equipment, and adjusted for capital
contributions or distributions to Mitsui related to our joint
venture, Fairway.
(2)
Excludes required debt service and finance
lease payments of $30 million and $26 million for the years ended
December 31, 2021 and 2020, respectively.
Table 6
Cash Dividends Received - Unaudited
Q3 '21
Q2 '21
Q1 '21
2020
Q4 '20
Q3 '20
Q2 '20
Q1 '20
(In $ millions)
Dividends from equity method
investments
8
18
35
147
36
6
59
46
Dividends from equity investments without
readily determinable fair values
35
37
42
126
28
29
32
37
Total
43
55
77
273
64
35
91
83
Table 7
Net Debt - Reconciliation of a Non-GAAP Measure -
Unaudited
Q3 '21
Q2 '21
Q1 '21
2020
Q4 '20
Q3 '20
Q2 '20
Q1 '20
(In $ millions)
Short-term borrowings and current
installments of long-term debt - third party and affiliates
103
500
497
496
496
958
1,045
749
Long-term debt, net of unamortized
deferred financing costs
3,724
3,156
3,135
3,227
3,227
3,140
2,989
3,356
Total debt
3,827
3,656
3,632
3,723
3,723
4,098
4,034
4,105
Cash and cash equivalents
(1,340
)
(1,054
)
(791
)
(955
)
(955
)
(615
)
(539
)
(570
)
Net debt
2,487
2,602
2,841
2,768
2,768
3,483
3,495
3,535
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:
Q3 '21
Q2 '21
Q1 '21
2020
Q4 '20
Q3 '20
Q2 '20
Q1 '20
Income Statement
Classification
(In $ millions)
Plant/office closures
4
3
(5
)
10
7
4
(4
)
3
Cost of sales / SG&A / Other (charges)
gains, net / Gain (loss) on disposition of businesses and assets,
net
Asset impairments
—
1
1
31
—
2
25
4
Cost of sales / Other (charges) gains,
net
Clear Lake incident
—
—
—
4
—
—
—
4
Cost of sales
COVID-19
—
—
—
5
2
1
1
1
Cost of sales / SG&A
Mergers, acquisitions and dispositions
4
6
—
22
5
7
3
7
Cost of sales / SG&A
Impact from natural disasters(1)
—
—
41
—
—
—
—
—
Cost of sales
Actuarial (gain) loss on pension and
postretirement plans
—
—
—
95
95
—
—
—
Cost of sales / SG&A / Non-operating
pension and other postretirement employee benefit (expense)
income
Restructuring
3
2
3
25
5
11
2
7
SG&A / Other (charges) gains, net /
Non-operating pension and other postretirement employee benefit
(expense) income
European Commission investigation
—
—
—
2
—
—
2
—
Other (charges) gains, net
Commercial disputes
2
1
9
(1
)
—
—
(1
)
—
Cost of sales / SG&A / Other (charges)
gains, net
(Gain) loss on sale of investments in
affiliates
—
—
—
(1,408
)
(1,408
)
—
—
—
Gain (loss) on sale of investments in
affiliates
(Gain) loss on sale of assets(2)
(14
)
—
—
—
—
—
—
—
Gain (loss) on disposition of businesses
and assets, net
Other
—
—
1
(1
)
—
(1
)
—
—
SG&A / Gain (loss) on disposition of
businesses and assets, net
Certain Items attributable to Celanese
Corporation
(1
)
13
50
(1,216
)
(1,294
)
24
28
26
___________________________
(1)
Primarily associated with Winter Storm
Uri.
(2)
Primarily associated with the sale of our
Spondon site.
Table 9
Return on Invested Capital (Adjusted) - Presentation of a
Non-GAAP Measure - Unaudited
2020
(In $ millions, except
percentages)
Net earnings (loss) attributable to
Celanese Corporation
1,985
Adjusted EBIT (Table 1)
1,131
Adjusted effective tax rate (Table 3a)
12
%
Adjusted EBIT tax effected
995
2020
2019
Average
(In $ millions, except
percentages)
Short-term borrowings and current
installments of long-term debt - third parties and affiliates
496
496
496
Long-term debt, net of unamortized
deferred financing costs
3,227
3,409
3,318
Celanese Corporation stockholders'
equity
3,526
2,507
3,017
Invested capital
6,831
Return on invested capital
(adjusted)
14.6
%
Net earnings (loss) attributable to
Celanese Corporation as a percentage of invested capital
29.1
%
View source
version on businesswire.com: https://www.businesswire.com/news/home/20211021006046/en/
Investor Relations Brandon Ayache Phone: +1 972 443 8509
brandon.ayache@celanese.com
Media - U.S. Travis Jacobsen Phone: +1 972 443 3750
william.jacobsen@celanese.com
Media - Europe Petra Czugler Phone: +49 69 45009 1206
petra.czugler@celanese.com
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