Celanese Corporation (NYSE: CE), a global chemical and specialty
materials company, today reported record GAAP diluted earnings per
share of $17.06 and record adjusted earnings per share of $18.12
for full year 2021. The Company reported 2021 net sales of $8.5
billion, 51 percent higher than the previous year. Higher net sales
were driven by pricing and volume increases over the prior year of
39 percent and 10 percent, respectively. Celanese successfully
offset $1.1 billion in raw material, energy, and logistics cost
inflation over 2020 to deliver consolidated operating profit of
$1.9 billion and adjusted EBIT of $2.5 billion for the year, both
records. The Company generated record operating cash flow of $1.8
billion and record free cash flow of $1.3 billion. As part of its
strategic plan to drive earnings per share growth, the Company
deployed $2.6 billion to organic investments, M&A, and share
repurchases in 2021. In addition, during 2021 the Company returned
$304 million in cash to shareholders via dividends.
Celanese also reported fourth quarter GAAP diluted earnings per
share of $4.83 and adjusted earnings per share of $4.91. The
Company generated operating cash flow of $584 million and free cash
flow of $415 million in the quarter.
"I thank our teams for the commitment and agility they
demonstrated in what was an exceptionally volatile year. They
successfully navigated a series of external challenges including
Winter Storm Uri, supply chain and logistics disruptions, China
production curtailments, and the resurgence of multiple COVID-19
variants to deliver record 2021 adjusted earnings per share that
exceeded our prior record performance by a remarkable 65 percent,"
said Lori Ryerkerk, chairman and chief executive officer.
Fourth Quarter 2021 Financial Highlights:
Three Months Ended
December 31,
2021
September 30,
2021
December 31,
2020
(unaudited)
(In $ millions, except per
share data)
Net Sales
Engineered Materials
707
684
572
Acetate Tow
129
128
134
Acetyl Chain
1,476
1,489
910
Intersegment Eliminations
(37
)
(35
)
(25
)
Total
2,275
2,266
1,591
Operating Profit (Loss)
Engineered Materials
67
91
62
Acetate Tow
4
12
30
Acetyl Chain
535
517
186
Other Activities
(89
)
(84
)
(75
)
Total
517
536
203
Net Earnings (Loss)
526
507
1,454
Adjusted EBIT(1)
Engineered Materials
113
137
82
Acetate Tow
38
46
59
Acetyl Chain
536
517
187
Other Activities
(35
)
(52
)
(28
)
Total
652
648
300
Equity Earnings and Dividend Income,
Other Income (Expense)
Engineered Materials
30
40
15
Acetate Tow
34
34
29
Operating EBITDA(1)
745
739
387
Diluted EPS - continuing operations
$
4.83
$
4.67
$
12.50
Diluted EPS - total
$
4.79
$
4.56
$
12.50
Adjusted EPS(1)
$
4.91
$
4.82
$
2.09
Net cash provided by (used in) investing
activities
(1,286
)
(108
)
979
Net cash provided by (used in) financing
activities
(99
)
(228
)
(933
)
Net cash provided by (used in) operating
activities
584
630
274
Free cash flow(1)
415
520
181
Year Ended December
31,
2021
2020
(unaudited)
(In $ millions, except per
share data)
Net Sales
Engineered Materials
2,718
2,081
Acetate Tow
514
519
Acetyl Chain
5,430
3,147
Intersegment Eliminations
(125
)
(92
)
Total
8,537
5,655
Operating Profit (Loss)
Engineered Materials
411
235
Acetate Tow
56
118
Acetyl Chain
1,819
563
Other Activities
(340
)
(252
)
Total
1,946
664
Net Earnings (Loss)
1,896
1,992
Adjusted EBIT(1)
Engineered Materials
571
403
Acetate Tow
207
249
Acetyl Chain
1,849
568
Other Activities
(154
)
(89
)
Total
2,473
1,131
Equity Earnings and Dividend Income,
Other Income (Expense)
Engineered Materials
127
115
Acetate Tow
146
126
Operating EBITDA(1)
2,835
1,475
Diluted EPS - continuing operations
$
17.06
$
16.85
Diluted EPS - total
$
16.86
$
16.75
Adjusted EPS(1)
$
18.12
$
7.64
Net cash provided by (used in) investing
activities
(1,119
)
592
Net cash provided by (used in) financing
activities
(1,042
)
(1,471
)
Net cash provided by (used in) operating
activities
1,757
1,343
Free cash flow(1)
1,263
950
______________________________
(1)
See "Non-US GAAP Financial Measures"
below.
Full Year Business Segment Overview
Engineered Materials
Engineered Materials reported record net sales of $2.7 billion
in 2021, an increase of 31 percent over the prior year. Net sales
growth was driven by volume and price which increased from 2020 by
15 percent and 12 percent, respectively. The business delivered
volume growth to meet elevated 2021 demand despite significant
sourcing and supply chain constraints that resulted in 18 kt of
lost production across the year. Full year GAAP operating profit of
$411 million and adjusted EBIT of $571 million, increased from the
prior year by $176 million and $168 million, respectively. As a
result of commercial initiatives across the year, the business
nearly offset approximately $300 million in year over year raw
material, energy, and logistics cost inflation. Affiliate earnings
of $126 million increased $11 million over the prior year driven by
improved performance across all affiliates.
Acetyl Chain
In 2021, the Acetyl Chain generated record net sales of $5.4
billion, an increase of 14 percent over the previous annual record.
Pricing increased over the prior year by 62 percent due to strong
demand, tightened industry conditions, and Acetyl Chain commercial
actions. Pricing expansion more than offset over $700 million in
raw material, energy, and logistics cost inflation in 2021 from the
prior year. Despite challenges to production including Winter Storm
Uri, China energy curtailments, and supply chain disruptions, the
Acetyl Chain delivered 9 percent higher volume over the prior year
by utilizing its global production network and industry sourcing.
The Acetyl Chain generated record GAAP operating profit of $1.8
billion and record adjusted EBIT of $1.8 billion at margins of 33
percent and 34 percent, respectively.
Acetate Tow
Acetate Tow reported net sales of $514 million, a 1 percent
decline from 2020 due to a 1 percent pricing decline. GAAP
operating profit was $56 million and adjusted EBIT was $207 million
for the year and reflected the impact of significantly elevated
acetyls and natural gas costs. Dividends from affiliates in 2021
were $146 million, an increase of $20 million over the prior year
due to strong affiliate performance.
Recent Highlights:
- Completed the acquisition of the Santopreneâ„¢ TPV elastomers
business of Exxon Mobil Corporation for $1.15 billion,
strengthening the existing elastomers portfolio and bringing a
wider range of functionalized solutions into targeted growth
areas.
- Completed a new GUR® ultra-high molecular weight polyethylene
(UHMW-PE) production line at Bishop, Texas, adding 15 kt of
manufacturing capacity.
- Honored by The Women's Forum of New York for female
representation on the Celanese Board of Directors.
- Announced a joint collaboration with Mitsubishi Chemical
Advanced Materials to further develop mechanical recycling
solutions for both post-industrial and post-consumer sources of
polyoxymethylene (POM).
Fourth Quarter 2021 Business Segment Overview
Engineered Materials
Engineered Materials generated record net sales of $707 million
in the fourth quarter due to a sequential price increase of 5
percent that offset a volume decrease of 1 percent. As a result of
four consecutive quarters of pricing expansion, fourth quarter 2021
pricing reflected a 20 percent increase over the same quarter last
year. The business continued to offset the majority of raw
material, energy, and logistics cost inflation which drove higher
costs of approximately $60 million sequentially. Fourth quarter
GAAP operating profit of $67 million and adjusted EBIT of $113
million both declined by $24 million from the prior quarter as a
result of accelerated inflation in European natural gas prices and
persistent supply chain disruptions which constrained production of
the business and its affiliates. Affiliates earnings declined by $9
million sequentially, largely due to supply chain disruptions.
Acetyl Chain
The Acetyl Chain generated net sales of $1.5 billion in the
fourth quarter due to a 10 percent sequential expansion in pricing
that offset a 10 percent reduction in volume. Amid ongoing
moderation in acetic acid and VAM industry pricing in China, the
business shifted more volume to the Western Hemisphere. Higher
pricing in the fourth quarter more than offset approximately $60
million in raw material, energy, and logistics cost inflation from
the prior quarter. Fourth quarter GAAP operating profit was $535
million and adjusted EBIT was $536 million at margins of 36
percent. The Acetyl Chain limited the fourth quarter volume impact
of significant external production disruptions, including
approximately 80 kt of lost production due to supplier constraints,
by flexing its global production network and sourcing from the
industry.
Acetate Tow
Acetate Tow generated net sales of $129 million during the
fourth quarter, which reflected a sequential price increase of 1
percent and stable volume. Fourth quarter GAAP operating profit of
$4 million and adjusted EBIT of $38 million both declined by $8
million sequentially due to higher energy, acetyls, and logistics
costs. Dividends from affiliates in the quarter were $34 million,
consistent with the prior quarter.
Cash Flow and Tax
The Company generated record operating cash flow of $1.8 billion
and record free cash flow of $1.3 billion in 2021. Capital
expenditures in the year were $467 million as the Company
progressed on several key projects including the 1.3 million ton
acetic acid expansion in Clear Lake, Texas. The Company returned
$1.3 billion in cash to shareholders during 2021, including $1.0
billion of share repurchases and $304 million of dividends.
The effective U.S. GAAP tax rate was 15 percent for 2021
compared to 11 percent for 2020. The lower effective tax rate for
2020 was due to non-recurring tax benefits related to certain
divestiture and reorganization transactions. The full year adjusted
tax rate was 15 percent for 2021 versus 12 percent in the prior
year due to increased earnings in high tax jurisdictions.
Outlook
"The early 2022 order book reflects continued strong demand for
our products across most end markets," said Lori Ryerkerk. "While
we continue to closely monitor the impact of COVID-19 variants on
demand conditions, the persistent inflationary and volatile supply
chain backdrop remains our greatest challenge. Our record 2021
performance demonstrates the ability of our employees and business
models to preserve our profitability amid inflation. We anticipate
that sequential margin expansion in the first quarter in our
downstream businesses, led by Engineered Materials, will help to
offset anticipated moderation in Acetyl Chain pricing conditions
and drive expected first quarter adjusted earnings of $4.30 to
$4.60 per share. With a strong start to the year, we remain
confident in our ability to achieve adjusted earnings of at least
$15.00 per share in 2022."
A reconciliation of forecasted adjusted earnings per share to
U.S. 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 fourth quarter
will be posted on its website at investors.celanese.com under
Financial Information/Financial Document Library on January 27,
2022. 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 8,500 employees worldwide and had
2021 net sales of $8.5 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: changes in general
economic, business, political and regulatory conditions in the
countries or regions in which we operate; volatility or 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 length and depth of
product and industry business cycles, particularly in the
automotive, electrical, mobility, textiles, medical, electronics
and construction industries; 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; 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,
transportation or logistics disruptions, 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 or variants
thereof, and the effectiveness of vaccines or other medical
treatments; additional governmental, business and individual
actions to contain the spread of COVID-19, 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 or
transportation and shipping disruptions; 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
January 27, 2022 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
December 31,
2021
September 30,
2021
December 31,
2020
(In $ millions, except share
and per share data)
Net sales
2,275
2,266
1,591
Cost of sales
(1,554
)
(1,551
)
(1,215
)
Gross profit
721
715
376
Selling, general and administrative
expenses
(170
)
(165
)
(137
)
Amortization of intangible assets
(8
)
(6
)
(5
)
Research and development expenses
(23
)
(21
)
(20
)
Other (charges) gains, net
—
—
(2
)
Foreign exchange gain (loss), net
—
2
(3
)
Gain (loss) on disposition of businesses
and assets, net
(3
)
11
(6
)
Operating profit (loss)
517
536
203
Equity in net earnings (loss) of
affiliates
36
44
21
Non-operating pension and other
postretirement employee benefit (expense) income
(7
)
37
(66
)
Interest expense
(21
)
(21
)
(26
)
Refinancing expense
—
(9
)
—
Interest income
1
2
2
Dividend income - equity investments
33
35
28
Gain (loss) on sale of investments in
affiliates
—
—
1,408
Other income (expense), net
(2
)
(2
)
1
Earnings (loss) from continuing operations
before tax
557
622
1,571
Income tax (provision) benefit
(27
)
(102
)
(117
)
Earnings (loss) from continuing
operations
530
520
1,454
Earnings (loss) from operation of
discontinued operations
(3
)
(17
)
(1
)
Income tax (provision) benefit from
discontinued operations
(1
)
4
1
Earnings (loss) from discontinued
operations
(4
)
(13
)
—
Net earnings (loss)
526
507
1,454
Net (earnings) loss attributable to
noncontrolling interests
(2
)
(1
)
(1
)
Net earnings (loss) attributable to
Celanese Corporation
524
506
1,453
Amounts attributable to Celanese
Corporation
Earnings (loss) from continuing
operations
528
519
1,453
Earnings (loss) from discontinued
operations
(4
)
(13
)
—
Net earnings (loss)
524
506
1,453
Earnings (loss) per common share -
basic
Continuing operations
4.86
4.70
12.56
Discontinued operations
(0.04
)
(0.12
)
—
Net earnings (loss) - basic
4.82
4.58
12.56
Earnings (loss) per common share -
diluted
Continuing operations
4.83
4.67
12.50
Discontinued operations
(0.04
)
(0.11
)
—
Net earnings (loss) - diluted
4.79
4.56
12.50
Weighted average shares (in millions)
Basic
108.6
110.5
115.7
Diluted
109.4
111.0
116.3
Consolidated Statements of Operations -
Unaudited
Year Ended December
31,
2021
2020
(In $ millions, except share
and per share data)
Net sales
8,537
5,655
Cost of sales
(5,855
)
(4,362
)
Gross profit
2,682
1,293
Selling, general and administrative
expenses
(633
)
(482
)
Amortization of intangible assets
(25
)
(22
)
Research and development expenses
(86
)
(74
)
Other (charges) gains, net
3
(39
)
Foreign exchange gain (loss), net
2
(5
)
Gain (loss) on disposition of businesses
and assets, net
3
(7
)
Operating profit (loss)
1,946
664
Equity in net earnings (loss) of
affiliates
146
134
Non-operating pension and other
postretirement employee benefit (expense) income
106
17
Interest expense
(91
)
(109
)
Refinancing expense
(9
)
—
Interest income
8
6
Dividend income - equity investments
147
126
Gain (loss) on sale of investments in
affiliates
—
1,408
Other income (expense), net
(5
)
5
Earnings (loss) from continuing operations
before tax
2,248
2,251
Income tax (provision) benefit
(330
)
(247
)
Earnings (loss) from continuing
operations
1,918
2,004
Earnings (loss) from operation of
discontinued operations
(27
)
(14
)
Income tax (provision) benefit from
discontinued operations
5
2
Earnings (loss) from discontinued
operations
(22
)
(12
)
Net earnings (loss)
1,896
1,992
Net (earnings) loss attributable to
noncontrolling interests
(6
)
(7
)
Net earnings (loss) attributable to
Celanese Corporation
1,890
1,985
Amounts attributable to Celanese
Corporation
Earnings (loss) from continuing
operations
1,912
1,997
Earnings (loss) from discontinued
operations
(22
)
(12
)
Net earnings (loss)
1,890
1,985
Earnings (loss) per common share -
basic
Continuing operations
17.19
16.95
Discontinued operations
(0.20
)
(0.10
)
Net earnings (loss) - basic
16.99
16.85
Earnings (loss) per common share -
diluted
Continuing operations
17.06
16.85
Discontinued operations
(0.20
)
(0.10
)
Net earnings (loss) - diluted
16.86
16.75
Weighted average shares (in millions)
Basic
111.2
117.8
Diluted
112.1
118.5
Consolidated Balance Sheets -
Unaudited
As of
December 31,
2021
As of
December 31,
2020
(In $ millions)
ASSETS
Current Assets
Cash and cash equivalents
536
955
Trade receivables - third party and
affiliates, net
1,161
792
Non-trade receivables, net
506
450
Inventories
1,524
978
Marketable securities
10
533
Other assets
70
55
Total current assets
3,807
3,763
Investments in affiliates
823
820
Property, plant and equipment, net
4,193
3,939
Operating lease right-of-use assets
236
232
Deferred income taxes
248
259
Other assets
521
411
Goodwill
1,412
1,166
Intangible assets, net
735
319
Total assets
11,975
10,909
LIABILITIES AND EQUITY
Current Liabilities
Short-term borrowings and current
installments of long-term debt - third party and affiliates
791
496
Trade payables - third party and
affiliates
1,160
797
Other liabilities
473
680
Income taxes payable
81
—
Total current liabilities
2,505
1,973
Long-term debt, net of unamortized
deferred financing costs
3,176
3,227
Deferred income taxes
555
509
Uncertain tax positions
280
240
Benefit obligations
558
643
Operating lease liabilities
200
208
Other liabilities
164
214
Commitments and Contingencies
Stockholders' Equity
Treasury stock, at cost
(5,492
)
(4,494
)
Additional paid-in capital
333
257
Retained earnings
9,677
8,091
Accumulated other comprehensive income
(loss), net
(329
)
(328
)
Total Celanese Corporation stockholders'
equity
4,189
3,526
Noncontrolling interests
348
369
Total equity
4,537
3,895
Total liabilities and equity
11,975
10,909
Non-US GAAP Financial
Measures and Supplemental Information
January 27, 2022
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
2021
Q4 '21
Q3 '21
Q2 '21
Q1 '21
2020
Q4 '20
Q3 '20
Q2 '20
Q1 '20
(In $ millions)
Net earnings (loss) attributable to
Celanese Corporation
1,890
524
506
538
322
1,985
1,453
207
107
218
(Earnings) loss from discontinued
operations
22
4
13
4
1
12
—
2
3
7
Interest income
(8
)
(1
)
(2
)
(4
)
(1
)
(6
)
(2
)
(1
)
(1
)
(2
)
Interest expense
91
21
21
24
25
109
26
28
27
28
Refinancing expense
9
—
9
—
—
—
—
—
—
—
Income tax provision (benefit)
330
27
102
116
85
247
117
30
35
65
Certain Items attributable to Celanese
Corporation (Table 8)
139
77
(1
)
13
50
(1,216
)
(1,294
)
24
28
26
Adjusted EBIT
2,473
652
648
691
482
1,131
300
290
199
342
Depreciation and amortization
expense(1)
362
93
91
90
88
344
87
88
86
83
Operating EBITDA
2,835
745
739
781
570
1,475
387
378
285
425
2021
Q4 '21
Q3 '21
Q2 '21
Q1 '21
2020
Q4 '20
Q3 '20
Q2 '20
Q1 '20
(In $ millions)
Engineered Materials
9
4
2
1
2
5
2
1
—
2
Acetate Tow
—
—
—
—
—
—
—
—
—
—
Acetyl Chain
—
—
—
—
—
1
—
—
1
—
Other Activities(2)
—
—
—
—
—
—
—
—
—
—
Accelerated depreciation and
amortization expense
9
4
2
1
2
6
2
1
1
2
Depreciation and amortization
expense(1)
362
93
91
90
88
344
87
88
86
83
Total depreciation and amortization
expense
371
97
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
2021
Q4 '21
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
411
15.1
%
67
9.5
%
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
56
10.9
%
4
3.1
%
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)
1,819
33.5
%
535
36.2
%
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)
(340
)
(89
)
(84
)
(96
)
(71
)
(252
)
(75
)
(51
)
(56
)
(70
)
Total
1,946
22.8
%
517
22.7
%
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)
6
2
1
2
1
7
1
2
2
2
Operating Profit (Loss) Attributable to
Celanese Corporation
1,940
22.7
%
515
22.6
%
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
411
15.1
%
67
9.5
%
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
56
10.9
%
4
3.1
%
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)
1,813
33.4
%
533
36.1
%
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)
(340
)
(89
)
(84
)
(96
)
(71
)
(252
)
(75
)
(51
)
(56
)
(70
)
Total
1,940
22.7
%
515
22.6
%
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
127
30
40
32
25
115
15
21
26
53
Acetate Tow
146
34
34
37
41
126
29
28
32
37
Acetyl Chain
8
2
2
2
2
5
2
2
—
1
Other Activities(2)
7
1
1
4
1
19
4
5
5
5
Total
288
67
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)
106
(7
)
37
38
38
16
(67
)
28
27
28
Total
106
(7
)
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
33
16
6
6
5
(1,356
)
(1,404
)
11
27
10
Acetate Tow
5
—
—
1
4
5
—
1
1
3
Acetyl Chain
28
1
(1
)
(2
)
30
7
—
5
(3
)
5
Other Activities(2)
73
60
(6
)
8
11
128
110
7
3
8
Total
139
77
(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.)
2021
Q4 '21
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
571
21.0
%
113
16.0
%
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
207
40.3
%
38
29.5
%
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
1,849
34.1
%
536
36.3
%
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)
(154
)
(35
)
(52
)
(46
)
(21
)
(89
)
(28
)
(11
)
(21
)
(29
)
Total
2,473
29.0
%
652
28.7
%
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
135
35
33
34
33
129
32
33
32
32
Acetate Tow
39
10
10
9
10
36
10
9
9
8
Acetyl Chain
171
43
44
43
41
162
41
41
41
39
Other Activities(2)
17
5
4
4
4
17
4
5
4
4
Total
362
93
91
90
88
344
87
88
86
83
Operating EBITDA / Operating EBITDA
Margin
Engineered Materials
706
26.0
%
148
20.9
%
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
246
47.9
%
48
37.2
%
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
2,020
37.2
%
579
39.2
%
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)
(137
)
(30
)
(48
)
(42
)
(17
)
(72
)
(24
)
(6
)
(17
)
(25
)
Total
2,835
33.2
%
745
32.7
%
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
2021
Q4 '21
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
per share
per share
(In $ millions, except per
share data)
Earnings (loss) from continuing operations
attributable to Celanese Corporation
1,912
17.06
528
4.83
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)
330
27
102
116
85
247
117
30
35
65
Earnings (loss) from continuing operations
before tax
2,242
555
621
658
408
2,244
1,570
239
145
290
Certain Items attributable to Celanese
Corporation (Table 8)
139
77
(1
)
13
50
(1,216
)
(1,294
)
24
28
26
Refinancing and related expenses
9
—
9
—
—
—
—
—
—
—
Adjusted earnings (loss) from continuing
operations before tax
2,390
632
629
671
458
1,028
276
263
173
316
Income tax (provision) benefit on adjusted
earnings(1)
(359
)
(95
)
(94
)
(105
)
(64
)
(123
)
(33
)
(32
)
(18
)
(41
)
Adjusted earnings (loss) from
continuing operations(2)
2,031
18.12
537
4.91
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
111.2
108.6
110.5
112.3
113.5
117.8
115.7
118.0
118.3
119.3
Incremental shares attributable to equity
awards
0.9
0.8
0.5
0.5
0.5
0.7
0.6
0.6
0.5
0.6
Total diluted shares
112.1
109.4
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:
2021
Q4 '21
Q3 '21
Q2 '21
Q1 '21
2020
Q4 '20
Q3 '20
Q2 '20
Q1 '20
Adjusted effective tax rate
15
15
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)
Q4 '21 & 2021
1.1
6.3
Q4 '20 & 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
Actual
2021
2020
(In percentages)
US GAAP annual effective tax rate
15
11
Discrete quarterly recognition of GAAP
items(1)
(2
)
12
Tax impact of other charges and
adjustments(2)
(1
)
(9
)
Utilization of foreign tax credits
(1
)
(3
)
Changes in valuation allowances, excluding
impact of other charges and adjustments(3)
3
—
Other(4)
1
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
2021
Q4 '21
Q3 '21
Q2 '21
Q1 '21
2020
Q4 '20
Q3 '20
Q2 '20
Q1 '20
(In $ millions)
Engineered Materials
2,718
707
684
682
645
2,081
572
526
420
563
Acetate Tow
514
129
128
138
119
519
134
129
127
129
Acetyl Chain
5,430
1,476
1,489
1,409
1,056
3,147
910
776
662
799
Other Activities
—
—
—
—
—
—
—
—
—
—
Intersegment eliminations(1)
(125
)
(37
)
(35
)
(31
)
(22
)
(92
)
(25
)
(20
)
(16
)
(31
)
Net sales
8,537
2,275
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 December 31, 2021
Compared to Three Months Ended September 30, 2021
Volume
Price
Currency
Other
Total
(In percentages)
Engineered Materials
(1
)
5
(1
)
—
3
(1)
Acetate Tow
—
1
—
—
1
Acetyl Chain
(10
)
10
(1
)
—
(1
)
Total Company
(7
)
8
(1
)
—
—
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 31, 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
)
(2)
Total Company
(13
)
(6
)
—
1
(18
)
Three Months Ended 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) 2021 includes the effect of the acquisition of
the Santopreneâ„¢ thermoplastic vulcanizates elastomers
business.
(2)
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 December 31, 2021
Compared to Three Months Ended December 31, 2020
Volume
Price
Currency
Other
Total
(In percentages)
Engineered Materials
5
20
(1
)
—
24
Acetate Tow
(3
)
(1
)
—
—
(4
)
Acetyl Chain
(6
)
68
—
—
62
Total Company
(2
)
46
(1
)
—
43
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 Ended 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, 2021 Compared
to Year Ended December 31, 2020
Volume
Price
Currency
Other
Total
(In percentages)
Engineered Materials
15
12
4
—
31
Acetate Tow
—
(1
)
—
—
(1
)
Acetyl Chain
9
62
2
—
73
Total Company
10
39
2
—
51
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
2021
Q4 '21
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
(1,119
)
(1,286
)
(108
)
177
98
592
979
(78
)
(181
)
(128
)
Net cash provided by (used in) financing
activities
(1,042
)
(99
)
(228
)
(344
)
(371
)
(1,471
)
(933
)
(290
)
(232
)
(16
)
Net cash provided by (used in) operating
activities
1,757
584
630
427
116
1,343
274
431
379
259
Capital expenditures on property, plant
and equipment
(467
)
(163
)
(102
)
(110
)
(92
)
(364
)
(85
)
(72
)
(88
)
(119
)
Distributions to NCI
(27
)
(6
)
(8
)
(8
)
(5
)
(29
)
(8
)
(8
)
(8
)
(5
)
Free cash flow(1)(2)
1,263
415
520
309
19
950
181
351
283
135
Net sales
8,537
2,275
2,266
2,198
1,798
5,655
1,591
1,411
1,193
1,460
Free cash flow as % of Net
sales
14.8
%
18.2
%
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
2021
Q4 '21
Q3 '21
Q2 '21
Q1 '21
2020
Q4 '20
Q3 '20
Q2 '20
Q1 '20
(In $ millions)
Dividends from equity method
investments
112
51
8
18
35
147
36
6
59
46
Dividends from equity investments without
readily determinable fair values
147
33
35
37
42
126
28
29
32
37
Total
259
84
43
55
77
273
64
35
91
83
Table 7
Net Debt - Reconciliation of a
Non-GAAP Measure - Unaudited
2021
Q4 '21
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
791
791
103
500
497
496
496
958
1,045
749
Long-term debt, net of unamortized
deferred financing costs
3,176
3,176
3,724
3,156
3,135
3,227
3,227
3,140
2,989
3,356
Total debt
3,967
3,967
3,827
3,656
3,632
3,723
3,723
4,098
4,034
4,105
Cash and cash equivalents
(536
)
(536
)
(1,340
)
(1,054
)
(791
)
(955
)
(955
)
(615
)
(539
)
(570
)
Net debt
3,431
3,431
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:
2021
Q4 '21
Q3 '21
Q2 '21
Q1 '21
2020
Q4 '20
Q3 '20
Q2 '20
Q1 '20
Income Statement
Classification
(In $ millions)
Plant/office closures
7
5
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
2
—
—
1
1
31
—
2
25
4
Cost of sales / Other (charges) gains,
net
Clear Lake incident
—
—
—
—
—
4
—
—
—
4
Cost of sales
COVID-19
1
1
—
—
—
5
2
1
1
1
Cost of sales / SG&A
Mergers, acquisitions and dispositions
29
19
4
6
—
22
5
7
3
7
Cost of sales / SG&A
Impact from natural disasters(1)
41
—
—
—
41
—
—
—
—
—
Cost of sales
Actuarial (gain) loss on pension and
postretirement plans
43
43
—
—
—
95
95
—
—
—
Cost of sales / SG&A / Non-operating
pension and other postretirement employee benefit (expense)
income
Restructuring
11
3
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
16
4
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)
(12
)
2
(14
)
—
—
—
—
—
—
—
Gain (loss) on disposition of businesses
and assets, net
Other
1
—
—
—
1
(1
)
—
(1
)
—
—
SG&A / Gain (loss) on disposition of
businesses and assets, net
Certain Items attributable to Celanese
Corporation
139
77
(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
2021
2020
(In $ millions, except
percentages)
(In $ millions, except
percentages)
Net earnings (loss) attributable to
Celanese Corporation
1,890
1,985
Adjusted EBIT (Table 1)
2,473
1,131
Adjusted effective tax rate (Table 3a)
15
%
12
%
Adjusted EBIT tax effected
2,102
995
2021
2020
Average
2020
2019
Average
(In $ millions, except
percentages)
Short-term borrowings and current
installments of long-term debt - third parties and affiliates
791
496
644
496
496
496
Long-term debt, net of unamortized
deferred financing costs
3,176
3,227
3,202
3,227
3,409
3,318
Celanese Corporation stockholders'
equity
4,189
3,526
3,858
3,526
2,507
3,017
Invested capital
7,704
6,831
Return on invested capital
(adjusted)
27.3
%
14.6
%
Net earnings (loss) attributable to
Celanese Corporation as a percentage of invested capital
24.5
%
29.1
%
View source
version on businesswire.com: https://www.businesswire.com/news/home/20220126005922/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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