Celanese Corporation (NYSE: CE), a global chemical and specialty
materials company, today reported GAAP diluted earnings per share
of $4.61 and adjusted earnings per share of $5.54 for the first
quarter of 2022. The Company reported record quarterly net sales of
$2.5 billion, a 12 percent increase over the previous record set in
the fourth quarter of 2021. Net sales growth was driven by
sequential volume and price expansion of 12 percent and 1 percent,
respectively. Celanese successfully mitigated continued cost
inflation as well as sourcing and logistics constraints to deliver
first quarter consolidated operating profit of $531 million and
adjusted EBIT of $713 million, both records. In February, the
Company announced a definitive agreement to acquire a majority of
the Mobility & Materials ("M&M") business of DuPont for
$11.0 billion, which will establish Celanese as the preeminent
global specialty materials company and is expected to drive a
doubling of annual free cash flow generation, inclusive of run-rate
synergies.
"I thank our teams for delivering record adjusted earnings per
share in the first quarter, exceeding our prior record by 10
percent, and for establishing tremendous momentum at the start of
2022," said Lori Ryerkerk, chairman and chief executive officer.
"We are squarely focused on continuing this momentum in our
business performance and preparing ourselves for the close of the
M&M acquisition which will usher in the next phase of
shareholder value creation at Celanese."
First Quarter 2022 Financial Highlights:
Three Months Ended
March 31, 2022
December 31,
2021
March 31, 2021
(unaudited)
(In $ millions, except per
share data)
Net Sales
Engineered Materials
910
707
645
Acetate Tow
125
129
119
Acetyl Chain
1,538
1,476
1,056
Intersegment Eliminations
(35
)
(37
)
(22
)
Total
2,538
2,275
1,798
Operating Profit (Loss)
Engineered Materials
124
67
130
Acetate Tow
4
4
16
Acetyl Chain
499
535
251
Other Activities
(96
)
(89
)
(71
)
Total
531
517
326
Net Earnings (Loss)
504
526
323
Adjusted EBIT(1)
Engineered Materials
211
113
160
Acetate Tow
40
38
61
Acetyl Chain
503
536
282
Other Activities
(41
)
(35
)
(21
)
Total
713
652
482
Equity Earnings and Dividend Income,
Other Income (Expense)
Engineered Materials
49
30
25
Acetate Tow
36
34
41
Operating EBITDA(1)
813
745
570
Diluted EPS - continuing operations
$
4.61
$
4.83
$
2.83
Diluted EPS - total
$
4.61
$
4.79
$
2.82
Adjusted EPS(1)
$
5.54
$
4.91
$
3.46
Net cash provided by (used in) investing
activities
(149
)
(1,286
)
98
Net cash provided by (used in) financing
activities
(95
)
(99
)
(371
)
Net cash provided by (used in) operating
activities
316
584
116
Free cash flow(1)
175
415
19
______________________________
(1) See "Non-US GAAP Financial Measures"
below.
Recent Highlights:
- Announced the signing of a definitive agreement to acquire a
majority of the M&M business for $11.0 billion in cash,
including a broad portfolio of engineered thermoplastics and
elastomers, industry-renowned brands and intellectual property,
global production assets, and a world-class organization.
- Completed the restructuring of the Korea Engineering Plastics
Co. (KEPCO) joint venture to a manufacturing entity. Celanese will
market approximately 70 kt of POM offtake, consistent with its 50
percent ownership stake.
- Lori Ryerkerk was awarded The Chemists' Club Kavaler Award
2022, voted on by chemical industry peers to recognize exceptional
performance of innovators and disruptors of the status quo in the
sector.
- Elected Rahul Ghai to the Company's Board of Directors in
February. Mr. Ghai currently serves as Executive Vice President and
Chief Financial Officer of Otis Worldwide Corporation.
- Elected Michael Koenig to the Company's Board of Directors in
February. Mr. Koenig serves as Chief Executive Officer and a member
of the board of directors of Nobian Industrial Chemicals B.V.
- Received a third investment grade credit rating for the Company
as Fitch Ratings assigned a first-time credit rating on Celanese of
BBB- with a Stable Outlook.
First Quarter 2022 Business Segment Overview
Engineered Materials
Engineered Materials generated record net sales of $910 million
in the first quarter due to a sequential volume increase of 23
percent and price increase of 7 percent. Approximately one-third of
the sequential volume increase was delivered by legacy products,
excluding Santoprene, as the business produced to meet elevated
demand led by automotive. With five consecutive quarters of pricing
expansion, Engineered Materials maintained a full pass-through of
total cost inflation spanning raw materials, energy, and logistics.
First quarter GAAP operating profit of $124 million and adjusted
EBIT of $211 million increased over the prior quarter by $57
million and $98 million, respectively. Affiliate earnings
contributed an additional $19 million sequentially, due to strong
performance of the KEPCO and Infraserv affiliates.
Acetyl Chain
The Acetyl Chain generated record net sales of $1.5 billion in
the first quarter due to an 8 percent sequential expansion in
volume that offset a 3 percent decline in pricing. Sequential
moderation in China acetic acid pricing was largely offset as the
business shifted volume to the Western Hemisphere and captured
higher pricing downstream in VAM, emulsions, redispersible powders
(RDP), and ethylene vinyl acetate (EVA). In the quarter, the Acetyl
Chain manufacturing team successfully completed three major
turnarounds at the Clear Lake facility in methanol, acetic acid,
and VAM. The Acetyl Chain offset production impacts by flexing its
global footprint and sourcing from the industry to deliver first
quarter GAAP operating profit of $499 million and adjusted EBIT of
$503 million at margins of 32 percent and 33 percent, respectively.
Across the last four quarters the Acetyl Chain has delivered over
$2 billion in GAAP operating profit and adjusted EBIT.
Acetate Tow
Acetate Tow generated net sales of $125 million during the first
quarter, which reflected a sequential price increase of 3 percent
and a volume decrease of 6 percent. First quarter GAAP operating
profit of $4 million and adjusted EBIT of $40 million were
consistent with business expectations. Dividends from affiliates in
the quarter were $36 million, consistent with the prior
quarter.
Cash Flow and Tax
The Company generated operating cash flow of $316 million and
free cash flow of $175 million in the first quarter. Capital
expenditures in the quarter were $137 million as the Company
progressed on several key projects across the Engineered Materials
and Acetyl Chain businesses. During the first quarter, Celanese
returned $73 million in cash to shareholders via dividends.
The effective U.S. GAAP tax rate was 18 percent for the first
quarter compared to 21 percent for the same quarter of 2021. The
lower effective tax rate was due to non-recurring impacts of
uncertain tax positions mainly due to lending terms related to
internal treasury operations in the three months ended March 31,
2021. During the first quarter, the Company decreased the full year
adjusted tax rate from 15 percent to 13 percent, primarily due to
changes in jurisdictional earnings mix.
Outlook
"Our team continues to demonstrate the capability of our
Engineered Materials and Acetyl Chain business models to deliver
robust performance despite persistent cost inflation and various
external disruptions to our supply chain" said Lori Ryerkerk.
"While we have successfully mitigated the vast majority of these
disruptions, we are closely monitoring developing challenges
including COVID-19 lockdowns across China and worsening reliability
of global maritime logistics. As pricing in upstream products
within the Acetyl Chain continues to moderate, we expect that
strength in downstream Acetyl Chain products as well as continued
robust performance in Engineered Materials will drive second
quarter adjusted earnings of approximately $4.50 per share. With
this strong start to the year, we now expect 2022 adjusted earnings
per share to approach our 2021 adjusted earnings per share
performance."
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 first quarter will
be posted on its website at investors.celanese.com under Financial
Information/Financial Document Library on April 28, 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 resurgences or
variants of COVID-19 may adversely impact the economic environment,
market demand, our operations, availability and cost of
transportation and materials, the labor supply and pace of 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
and integrate acquisition or investment transactions consistent
with the Company's strategy; the ability to obtain regulatory
approval for, and satisfy closing conditions to, the M&M
acquisition, the timing of closing thereof, and the ability to
realize the anticipated benefits of the transaction; 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 (such as the Russia-Ukraine conflict) 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.
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
April 28, 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
March 31, 2022
December 31,
2021
March 31, 2021
(In $ millions, except share
and per share data)
Net sales
2,538
2,275
1,798
Cost of sales
(1,793
)
(1,554
)
(1,313
)
Gross profit
745
721
485
Selling, general and administrative
expenses
(174
)
(170
)
(137
)
Amortization of intangible assets
(11
)
(8
)
(6
)
Research and development expenses
(24
)
(23
)
(20
)
Other (charges) gains, net
(1
)
—
6
Foreign exchange gain (loss), net
(1
)
—
3
Gain (loss) on disposition of businesses
and assets, net
(3
)
(3
)
(5
)
Operating profit (loss)
531
517
326
Equity in net earnings (loss) of
affiliates
56
36
29
Non-operating pension and other
postretirement employee benefit (expense) income
24
(7
)
38
Interest expense
(35
)
(21
)
(25
)
Interest income
1
1
1
Dividend income - equity investments
37
33
42
Other income (expense), net
2
(2
)
(2
)
Earnings (loss) from continuing operations
before tax
616
557
409
Income tax (provision) benefit
(112
)
(27
)
(85
)
Earnings (loss) from continuing
operations
504
530
324
Earnings (loss) from operation of
discontinued operations
—
(3
)
(1
)
Income tax (provision) benefit from
discontinued operations
—
(1
)
—
Earnings (loss) from discontinued
operations
—
(4
)
(1
)
Net earnings (loss)
504
526
323
Net (earnings) loss attributable to
noncontrolling interests
(2
)
(2
)
(1
)
Net earnings (loss) attributable to
Celanese Corporation
502
524
322
Amounts attributable to Celanese
Corporation
Earnings (loss) from continuing
operations
502
528
323
Earnings (loss) from discontinued
operations
—
(4
)
(1
)
Net earnings (loss)
502
524
322
Earnings (loss) per common share -
basic
Continuing operations
4.64
4.86
2.85
Discontinued operations
—
(0.04
)
(0.01
)
Net earnings (loss) - basic
4.64
4.82
2.84
Earnings (loss) per common share -
diluted
Continuing operations
4.61
4.83
2.83
Discontinued operations
—
(0.04
)
(0.01
)
Net earnings (loss) - diluted
4.61
4.79
2.82
Weighted average shares (in millions)
Basic
108.2
108.6
113.5
Diluted
108.9
109.4
114.0
Consolidated Balance Sheets - Unaudited
As of March 31, 2022
As of December 31,
2021
(In $ millions)
ASSETS
Current Assets
Cash and cash equivalents
605
536
Trade receivables - third party and
affiliates, net
1,390
1,161
Non-trade receivables, net
523
506
Inventories
1,549
1,524
Marketable securities
9
10
Other assets
124
70
Total current assets
4,200
3,807
Investments in affiliates
847
823
Property, plant and equipment, net
4,188
4,193
Operating lease right-of-use assets
267
236
Deferred income taxes
244
248
Other assets
569
521
Goodwill
1,396
1,412
Intangible assets, net
715
735
Total assets
12,426
11,975
LIABILITIES AND EQUITY
Current Liabilities
Short-term borrowings and current
installments of long-term debt - third party and affiliates
860
791
Trade payables - third party and
affiliates
1,169
1,160
Other liabilities
419
473
Income taxes payable
106
81
Total current liabilities
2,554
2,505
Long-term debt, net of unamortized
deferred financing costs
3,132
3,176
Deferred income taxes
563
555
Uncertain tax positions
296
280
Benefit obligations
543
558
Operating lease liabilities
223
200
Other liabilities
162
164
Commitments and Contingencies
Stockholders' Equity
Treasury stock, at cost
(5,492
)
(5,492
)
Additional paid-in capital
326
333
Retained earnings
10,106
9,677
Accumulated other comprehensive income
(loss), net
(333
)
(329
)
Total Celanese Corporation stockholders'
equity
4,607
4,189
Noncontrolling interests
346
348
Total equity
4,953
4,537
Total liabilities and equity
12,426
11,975
Non-US GAAP Financial
Measures and Supplemental Information
April 28, 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
Q1 '22
2021
Q4 '21
Q3 '21
Q2 '21
Q1 '21
(In $ millions)
Net earnings (loss) attributable to
Celanese Corporation
502
1,890
524
506
538
322
(Earnings) loss from discontinued
operations
—
22
4
13
4
1
Interest income
(1
)
(8
)
(1
)
(2
)
(4
)
(1
)
Interest expense
35
91
21
21
24
25
Refinancing expense
—
9
—
9
—
—
Income tax provision (benefit)
112
330
27
102
116
85
Certain Items attributable to Celanese
Corporation (Table 8)
65
139
77
(1
)
13
50
Adjusted EBIT
713
2,473
652
648
691
482
Depreciation and amortization
expense(1)
100
362
93
91
90
88
Operating EBITDA
813
2,835
745
739
781
570
Q1 '22
2021
Q4 '21
Q3 '21
Q2 '21
Q1 '21
(In $ millions)
Engineered Materials
4
9
4
2
1
2
Acetate Tow
—
—
—
—
—
—
Acetyl Chain
2
—
—
—
—
—
Other Activities(2)
—
—
—
—
—
—
Accelerated depreciation and
amortization expense
6
9
4
2
1
2
Depreciation and amortization
expense(1)
100
362
93
91
90
88
Total depreciation and amortization
expense
106
371
97
93
91
90
______________________________
(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
Q1 '22
2021
Q4 '21
Q3 '21
Q2 '21
Q1 '21
(In $ millions, except
percentages)
Operating Profit (Loss) / Operating
Margin
Engineered Materials
124
13.6
%
411
15.1
%
67
9.5
%
91
13.3
%
123
18.0
%
130
20.2
%
Acetate Tow
4
3.2
%
56
10.9
%
4
3.1
%
12
9.4
%
24
17.4
%
16
13.4
%
Acetyl Chain(1)
499
32.4
%
1,819
33.5
%
535
36.2
%
517
34.7
%
516
36.6
%
251
23.8
%
Other Activities(2)
(96
)
(340
)
(89
)
(84
)
(96
)
(71
)
Total
531
20.9
%
1,946
22.8
%
517
22.7
%
536
23.7
%
567
25.8
%
326
18.1
%
Less: Net Earnings (Loss) Attributable to
NCI(1)
2
6
2
1
2
1
Operating Profit (Loss) Attributable to
Celanese Corporation
529
20.8
%
1,940
22.7
%
515
22.6
%
535
23.6
%
565
25.7
%
325
18.1
%
Operating Profit (Loss) / Operating
Margin Attributable to Celanese Corporation
Engineered Materials
124
13.6
%
411
15.1
%
67
9.5
%
91
13.3
%
123
18.0
%
130
20.2
%
Acetate Tow
4
3.2
%
56
10.9
%
4
3.1
%
12
9.4
%
24
17.4
%
16
13.4
%
Acetyl Chain(1)
497
32.3
%
1,813
33.4
%
533
36.1
%
516
34.7
%
514
36.5
%
250
23.7
%
Other Activities(2)
(96
)
(340
)
(89
)
(84
)
(96
)
(71
)
Total
529
20.8
%
1,940
22.7
%
515
22.6
%
535
23.6
%
565
25.7
%
325
18.1
%
Equity Earnings and Dividend Income,
Other Income (Expense) Attributable to Celanese Corporation
Engineered Materials
49
127
30
40
(3)
32
25
Acetate Tow
36
146
34
34
37
41
Acetyl Chain
4
8
2
2
2
2
Other Activities(2)
6
7
1
1
4
1
Total
95
288
67
77
75
69
Non-Operating Pension and Other
Post-Retirement Employee Benefit (Expense) Income Attributable to
Celanese Corporation
Engineered Materials
—
—
—
—
—
—
Acetate Tow
—
—
—
—
—
—
Acetyl Chain
—
—
—
—
—
—
Other Activities(2)
24
106
(7
)
37
38
38
Total
24
106
(7
)
37
38
38
Certain Items Attributable to Celanese
Corporation (Table 8)
Engineered Materials
38
33
16
6
6
5
Acetate Tow
—
5
—
—
1
4
Acetyl Chain
2
28
1
(1
)
(2
)
30
Other Activities(2)
25
73
60
(6
)
8
11
Total
65
139
77
(1
)
13
50
___________________________
(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).
(3)
Includes $39 million of Equity in net
earnings (loss) of affiliates and $1 million of Other income.
Table 2 - Supplemental Segment Data and
Reconciliation of Segment Adjusted EBIT and Operating EBITDA -
Non-GAAP Measures - Unaudited (cont.)
Q1 '22
2021
Q4 '21
Q3 '21
Q2 '21
Q1 '21
(In $ millions, except
percentages)
Adjusted EBIT / Adjusted EBIT
Margin
Engineered Materials
211
23.2
%
571
21.0
%
113
16.0
%
137
20.0
%
161
23.6
%
160
24.8
%
Acetate Tow
40
32.0
%
207
40.3
%
38
29.5
%
46
35.9
%
62
44.9
%
61
51.3
%
Acetyl Chain
503
32.7
%
1,849
34.1
%
536
36.3
%
517
34.7
%
514
36.5
%
282
26.7
%
Other Activities(2)
(41
)
(154
)
(35
)
(52
)
(46
)
(21
)
Total
713
28.1
%
2,473
29.0
%
652
28.7
%
648
28.6
%
691
31.4
%
482
26.8
%
Depreciation and Amortization
Expense(1)
Engineered Materials
42
135
35
33
34
33
Acetate Tow
11
39
10
10
9
10
Acetyl Chain
43
171
43
44
43
41
Other Activities(2)
4
17
5
4
4
4
Total
100
362
93
91
90
88
Operating EBITDA / Operating EBITDA
Margin
Engineered Materials
253
27.8
%
706
26.0
%
148
20.9
%
170
24.9
%
195
28.6
%
193
29.9
%
Acetate Tow
51
40.8
%
246
47.9
%
48
37.2
%
56
43.8
%
71
51.4
%
71
59.7
%
Acetyl Chain
546
35.5
%
2,020
37.2
%
579
39.2
%
561
37.7
%
557
39.5
%
323
30.6
%
Other Activities(2)
(37
)
(137
)
(30
)
(48
)
(42
)
(17
)
Total
813
32.0
%
2,835
33.2
%
745
32.7
%
739
32.6
%
781
35.5
%
570
31.7
%
___________________________
(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
Q1 '22
2021
Q4 '21
Q3 '21
Q2 '21
Q1 '21
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
502
4.61
1,912
17.06
528
4.83
519
4.67
542
4.81
323
2.83
Income tax provision (benefit)
112
330
27
102
116
85
Earnings (loss) from continuing operations
before tax
614
2,242
555
621
658
408
Certain Items attributable to Celanese
Corporation (Table 8)
65
139
77
(1
)
13
50
Refinancing and related expenses(1)
14
9
—
9
—
—
Adjusted earnings (loss) from continuing
operations before tax
693
2,390
632
629
671
458
Income tax (provision) benefit on adjusted
earnings(2)
(90
)
(359
)
(95
)
(94
)
(105
)
(64
)
Adjusted earnings (loss) from
continuing operations(3)
603
5.54
2,031
18.12
537
4.91
535
4.82
566
5.02
394
3.46
Diluted shares (in
millions)(4)
Weighted average shares outstanding
108.2
111.2
108.6
110.5
112.3
113.5
Incremental shares attributable to equity
awards
0.7
0.9
0.8
0.5
0.5
0.5
Total diluted shares
108.9
112.1
109.4
111.0
112.8
114.0
______________________________
(1)
Includes $14 million of interest expense
for fees related to a bridge facility commitment letter for our
acquisition of a majority of the Mobility & Materials business
of DuPont de Nemours, Inc.
(2)
Calculated using adjusted effective tax
rates (Table 3a) as follows:
Q1 '22
2021
Q4 '21
Q3 '21
Q2 '21
Q1 '21
Adjusted effective tax rate
13
15
15
15
16
14
(3)
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)
2021
1.1
6.3
(4)
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
2022
2021
(In percentages)
US GAAP annual effective tax rate
17
15
Discrete quarterly recognition of GAAP
items(1)
(1
)
(2
)
Tax impact of other charges and
adjustments(2)
(3
)
(1
)
Utilization of foreign tax credits
—
(1
)
Changes in valuation allowances, excluding
impact of other charges and adjustments(3)
—
3
Other(4)
—
1
Adjusted tax rate
13
15
______________________________
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
Q1 '22
2021
Q4 '21
Q3 '21
Q2 '21
Q1 '21
(In $ millions)
Engineered Materials
910
2,718
707
684
682
645
Acetate Tow
125
514
129
128
138
119
Acetyl Chain
1,538
5,430
1,476
1,489
1,409
1,056
Other Activities
—
—
—
—
—
—
Intersegment eliminations(1)
(35
)
(125
)
(37
)
(35
)
(31
)
(22
)
Net sales
2,538
8,537
2,275
2,266
2,198
1,798
___________________________
(1)
Includes intersegment sales primarily
related to the Acetyl Chain.
Table 4a
Factors Affecting Segment Net Sales
Sequentially - Unaudited
Three Months Ended March 31, 2022
Compared to Three Months Ended December 31, 2021
Volume
Price
Currency
Other
Total
(In percentages)
Engineered Materials
23
7
(1
)
—
29
Acetate Tow
(6
)
3
—
—
(3
)
Acetyl Chain
8
(3
)
(1
)
—
4
Total Company
12
1
(1
)
—
12
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
________________________
(1)
2021 includes the effect of the
acquisition of the Santopreneâ„¢ thermoplastic vulcanizates
elastomers business.
Table 4b
Factors Affecting Segment Net Sales
Year Over Year - Unaudited
Three Months Ended March 31, 2022
Compared to Three Months Ended March 31, 2021
Volume
Price
Currency
Other
Total
(In percentages)
Engineered Materials
20
25
(4
)
—
41
Acetate Tow
1
4
—
—
5
Acetyl Chain
8
39
(1
)
—
46
Total Company
12
32
(2
)
(1
)
41
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
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
Table 5
Free Cash Flow - Reconciliation of a
Non-GAAP Measure - Unaudited
Q1 '22
2021
Q4 '21
Q3 '21
Q2 '21
Q1 '21
(In $ millions, except
percentages)
Net cash provided by (used in) investing
activities
(149
)
(1,119
)
(1,286
)
(108
)
177
98
Net cash provided by (used in) financing
activities
(95
)
(1,042
)
(99
)
(228
)
(344
)
(371
)
Net cash provided by (used in) operating
activities
316
1,757
584
630
427
116
Capital expenditures on property, plant
and equipment
(137
)
(467
)
(163
)
(102
)
(110
)
(92
)
Distributions to NCI
(4
)
(27
)
(6
)
(8
)
(8
)
(5
)
Free cash flow(1)(2)
175
1,263
415
520
309
19
Net sales
2,538
8,537
2,275
2,266
2,198
1,798
Free cash flow as % of Net
sales
6.9
%
14.8
%
18.2
%
22.9
%
14.1
%
1.1
%
______________________________
(1)
Free cash flow is a liquidity measure used
by the Company and is defined by the Company as net cash provided
by (used in) operating activities, less capital expenditures on
property, plant and equipment, and adjusted for capital
contributions or distributions to Mitsui related to our joint
venture, Fairway.
(2)
Excludes required debt service and finance
lease payments of $25 million and $30 million for the years ended
December 31, 2022 and 2021, respectively.
Table 6
Cash Dividends Received -
Unaudited
Q1 '22
2021
Q4 '21
Q3 '21
Q2 '21
Q1 '21
(In $ millions)
Dividends from equity method
investments
26
112
51
8
18
35
Dividends from equity investments without
readily determinable fair values
37
147
33
35
37
42
Total
63
259
84
43
55
77
Table 7
Net Debt - Reconciliation of a Non-GAAP
Measure - Unaudited
Q1 '22
2021
Q4 '21
Q3 '21
Q2 '21
Q1 '21
(In $ millions)
Short-term borrowings and current
installments of long-term debt - third party and affiliates
860
791
791
103
500
497
Long-term debt, net of unamortized
deferred financing costs
3,132
3,176
3,176
3,724
3,156
3,135
Total debt
3,992
3,967
3,967
3,827
3,656
3,632
Cash and cash equivalents
(605
)
(536
)
(536
)
(1,340
)
(1,054
)
(791
)
Net debt
3,387
3,431
3,431
2,487
2,602
2,841
Table 8
Certain Items - Unaudited
The following Certain Items attributable
to Celanese Corporation are included in Net earnings (loss) and are
adjustments to non-GAAP measures:
Q1 '22
2021
Q4 '21
Q3 '21
Q2 '21
Q1 '21
Income Statement
Classification
(In $ millions)
Exit and shutdown costs
7
18
8
7
5
(2
)
Cost of sales / SG&A / Other (charges)
gains, net / Gain (loss) on disposition of businesses and assets,
net / Non-operating pension and other postretirement employee
benefit (expense) income
Asset impairments
—
2
—
—
1
1
Cost of sales / Other (charges) gains,
net
Impact from plant incidents and natural
disasters(1)
—
41
—
—
—
41
Cost of sales
Mergers, acquisitions and dispositions
56
29
19
4
6
—
Cost of sales / SG&A
Actuarial (gain) loss on pension and
postretirement plans
—
43
43
—
—
—
Cost of sales / SG&A / Non-operating
pension and other postretirement employee benefit (expense)
income
Legal settlements and commercial
disputes
2
16
4
2
1
9
Cost of sales / SG&A / Other (charges)
gains, net
Other
—
(10
)
3
(14
)(2)
—
1
Cost of sales / SG&A / Gain (loss) on
disposition of businesses and assets, net
Certain Items attributable to Celanese
Corporation
65
139
77
(1
)
13
50
___________________________
(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
(In $ millions, except
percentages)
Net earnings (loss) attributable to
Celanese Corporation
1,890
Adjusted EBIT (Table 1)
2,473
Adjusted effective tax rate (Table 3a)
15
%
Adjusted EBIT tax effected
2,102
2021
2020
Average
(In $ millions, except
percentages)
Short-term borrowings and current
installments of long-term debt - third parties and affiliates
791
496
644
Long-term debt, net of unamortized
deferred financing costs
3,176
3,227
3,202
Celanese Corporation stockholders'
equity
4,189
3,526
3,858
Invested capital
7,704
Return on invested capital
(adjusted)
27.3
%
Net earnings (loss) attributable to
Celanese Corporation as a percentage of invested capital
24.5
%
View source
version on businesswire.com: https://www.businesswire.com/news/home/20220427005831/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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