Celanese Corporation (NYSE: CE), a global chemical and specialty
materials company, today reported first quarter 2023 GAAP diluted
earnings per share of $0.86 and adjusted earnings per share of
$2.01. The Company generated net sales of $2.9 billion in the
quarter, an increase of 22 percent over the prior quarter. Net
sales reflected a sequential volume increase of 19 percent over the
prior quarter that was partially offset by a pricing decrease of 4
percent. Volume increased due to an additional month of sales from
the Mobility & Materials (M&M) acquisition as well as
demand recovery in Europe and Asia as the quarter progressed. The
Company exercised its commercial flexibility and global supply
chain to capture improved demand and to offset the impact of
sequentially lower variable margin across many products, due to
moderation in input costs that was more than offset by pricing
declines. As a result of sequentially higher contributions from
Engineered Materials and the Acetyl Chain, the Company reported
first quarter consolidated operating profit of $251 million,
adjusted EBIT of $424 million, and operating EBITDA of $596
million. In the first full quarter under its ownership, Celanese
delivered a significant sequential increase in the M&M earnings
contribution due primarily to higher sequential volume and
approximately $10 million in savings in the quarter from cost
synergies.
The difference between GAAP diluted earnings per share and
adjusted earnings per share in the first quarter was primarily due
to $99 million in M&A-related costs, predominantly related to
the M&M acquisition, and $26 million in exit and shutdown
costs.
"Our team delivered a clear upward inflection in our combined
Engineered Materials and Acetyl Chain earnings to start 2023 with
sequential increases in operating profit and operating EBITDA of 70
percent and 34 percent, respectively," said Lori Ryerkerk, chair
and chief executive officer. "We successfully executed on our
controllable actions across the quarter to drive synergies,
productivity, and base business improvement, particularly in
M&M. Additionally, we captured a significant share of elevated
demand in March, which allowed us to exceed our original earnings
expectations for the quarter."
First Quarter 2023 Financial Highlights:
Three Months Ended
March 31, 2023
December 31,
2022
March 31, 2022
(unaudited)
(In $ millions, except per
share data)
Net Sales
Engineered Materials
1,630
1,237
910
Acetyl Chain
1,250
1,135
1,652
Intersegment Eliminations
(27
)
(24
)
(24
)
Total
2,853
2,348
2,538
Operating Profit (Loss)
Engineered Materials
112
25
124
Acetyl Chain
278
204
503
Other Activities
(139
)
(173
)
(96
)
Total
251
56
531
Net Earnings (Loss)
93
769
504
Adjusted EBIT(1)
Engineered Materials
215
138
211
Acetyl Chain
316
242
543
Other Activities
(107
)
(78
)
(41
)
Total
424
302
713
Equity Earnings and Dividend Income,
Other Income (Expense)
Engineered Materials
10
35
49
Acetyl Chain
34
30
40
Operating EBITDA(1)
596
453
813
Diluted EPS - continuing operations
$
0.86
$
7.03
$
4.61
Diluted EPS - total
$
0.83
$
7.03
$
4.61
Adjusted EPS(1)
$
2.01
$
1.44
$
5.54
Net cash provided by (used in) investing
activities
(178
)
(10,713
)
(149
)
Net cash provided by (used in) financing
activities
(69
)
1,944
(95
)
Net cash provided by (used in) operating
activities
(96
)
541
316
Free cash flow(1)
(261
)
395
175
____________________________
(1)
See "Non-US GAAP Financial Measures"
below.
Recent Highlights:
- Announced the signing of a term sheet to form a standalone Food
Ingredients joint venture (JV) in which Celanese will contribute
its Food Ingredients business and Mitsui will acquire a 70 percent
stake. The transaction is expected to close in the second half and
cash proceeds will be used to pay down debt.
- Expanded the portfolio of Celanese sustainable products to
include bio-based acetic acid, VAM, amines, acetate esters, and
anhydrides designed to help customers in developing more
sustainable product offerings. These products will be designated as
ECO-B, consistent with bio-based products previously introduced in
Engineered Materials.
- Completed the mechanical construction of the new 1.3 million
ton acetic acid production unit at Clear Lake, Texas. The
commissioning and start-up processes are expected to be complete in
the third quarter.
- Announced initiatives to advance the development of Celanese's
VitalDose® EVA drug delivery platform including a research
agreement with Johns Hopkins University on sustained drug delivery
to the suprachoroidal space in the eye and a collaboration with
Alessa Therapeutics for the advancement of oncology
treatments.
First Quarter 2023 Business Segment Overview
Acetyl Chain
The Acetyl Chain delivered first quarter net sales of $1.3
billion, a 10 percent increase from the prior quarter due to a 10
percent increase in volume. While demand for acetyls in Europe and
Asia improved significantly over the prior quarter, volume in the
first quarter lagged the same quarter of last year by 9 percent and
was insufficient to support pricing expansion. Sequential pricing
across the business decreased by 2 percent as pricing moderation
across most products was partially offset by a reset in the pricing
for acetate flake and tow as part of the strategic overhaul of
those products. In response to challenging pricing dynamics,
particularly in China, the business exercised its unique product
and geographic optionality and supply chain capabilities to capture
demand recovery. As a result of these actions, the business
delivered improved earnings performance and offset sequential
contraction in the pricing spread over raw materials across most
products. The Acetyl Chain delivered first quarter operating profit
of $278 million, adjusted EBIT of $316 million, and operating
EBITDA of $370 million at margins of 22, 25, and 30 percent,
respectively. An approximately $75 million sequential increase in
each of these profitability metrics resulted in first quarter
earnings consistent with the foundational earnings power of this
business, despite demand and pricing dynamics for many products and
regions that remained challenging. The Acetyl Chain continues to
take steps to elevate its foundational earnings, including the
mechanical completion of the new acetic acid production unit at
Clear Lake, which is expected to lift earnings by an additional
approximately $100 million annually starting in 2024.
Engineered Materials
Engineered Materials reported first quarter net sales of $1.6
billion, a 32 percent increase from the prior quarter. Volume
expanded by 34 percent due to an additional month of M&M
contributions and sequential growth across most end-markets, with
the exception of medical implants. Sequential volume in auto
outperformed the change in industry build rates across all three
regions due to contributions from project pipeline model wins
realized in 2022. Pricing decreased by 4 percent due to a change in
product mix, a decrease in raw material and energy costs, and
challenging competitive dynamics in Europe. Engineered Materials
delivered first quarter operating profit of $112 million, adjusted
EBIT of $215 million, and operating EBITDA of $327 million at
margins of 7, 13, and 20 percent, respectively. The M&M
contribution to EM earnings increased sequentially through volume
recovery and approximately $10 million in synergies delivered
across the quarter. Affiliate earnings were $11 million for the
quarter, a sequential decrease of $20 million.
Cash Flow and Tax
Celanese reported first quarter operating cash flow of $(96)
million and free cash flow of $(261) million which included an
increase in working capital due to strong March sales, cash
interest expense of $281 million, and cash capital expenditures of
$164 million. The Company anticipates a significant increase in
second quarter free cash flow due to improved business performance
as well as the timing of these cash items. Celanese returned $76
million in cash to shareholders via dividends in the quarter.
The effective U.S. GAAP income tax rate was 21 percent for the
first quarter compared to 18 percent for the same quarter in 2022.
The higher effective rate was primarily due to increases in
valuation allowances on U.S. foreign tax credit carryforwards due
to revised forecasts of foreign sourced income and expenses during
the carryforward period, partially offset by increased earnings in
low-taxed jurisdictions. The effective tax rate for adjusted
earnings was 12 percent based on expected jurisdictional earnings
mix for the full year and consideration of other non-recurring U.S.
GAAP items.
Outlook
"While first quarter demand meaningfully recovered from
exceptionally poor conditions in the fourth quarter, we still saw
first quarter volume, when excluding M&M contributions, that
was significantly lower year over year," said Lori Ryerkerk. "So
far across April and May, underlying demand improvement over March
has been immaterial and not yet substantive enough to support any
pricing expansion. In this environment, our teams are working to
opportunistically deliver modestly higher volume in the second
quarter, due primarily to a stronger start than the prior quarter,
and to preserve our pricing spreads over raw materials. We expect
that sequential earnings growth in our businesses, largely due to
controllable actions, will deliver second quarter adjusted earnings
per share of approximately $2.50, inclusive of approximately $0.30
per share of M&M transaction amortization. We see potential to
exceed $2.50 in earnings per share if demand recovers substantively
enough to support material pricing recovery within the quarter,
particularly in the Acetyl Chain."
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 May 9, 2023. 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 13,300 employees worldwide and had
2022 net sales of $9.7 billion. For more information about Celanese
Corporation and its product offerings, visit www.celanese.com.
Forward-Looking Statements
This release may contain "forward-looking statements," which
include information concerning the Company's plans, objectives,
goals, strategies, future revenues, cash flow, financial
performance, synergies, capital expenditures, financing needs and
other information that is not historical information. All
forward-looking statements are based upon current expectations and
beliefs and various assumptions. There can be no assurance that the
Company will realize these expectations or that these beliefs will
prove correct. There are a number of risks and uncertainties that
could cause actual results to differ materially from the results
expressed or implied in the forward-looking statements contained in
this release. These risks and uncertainties include, among other
things: changes in general economic, business, political and
regulatory conditions in the countries or regions in which we
operate; volatility or changes in the price and availability of raw
materials and energy, particularly changes in the demand for,
supply of, and market prices of ethylene, methanol, natural gas,
wood pulp and fuel oil and the prices for electricity and other
energy sources; the length and depth of product and industry
business cycles, particularly in the automotive, electrical,
mobility, textiles, medical, electronics and construction
industries; the ability to pass increases in raw material prices,
logistics costs and other costs on to customers or otherwise
improve margins through price increases; the accuracy or inaccuracy
of our beliefs or assumptions regarding anticipated benefits of the
acquisition (the "M&M Acquisition") by us of the majority of
the Mobility & Materials business (the "M&M Business") of
DuPont de Nemours, Inc.; the possibility that we will not be able
to realize all of the anticipated improvements in the M&M
Business's financial performance — including optimizing pricing,
currency mix and inventory — or realize all of the anticipated
benefits of the M&M Acquisition, including synergies and growth
opportunities, within the anticipated timeframe, or at all, whether
as a result of difficulties arising from the operation or
integration of the M&M Business or other unanticipated delays,
costs, inefficiencies or liabilities; increased commercial, legal
or regulatory complexity of entering into, or expanding our
exposure to, certain end markets and geographies; risks in the
global economy and equity and credit markets and their potential
impact on our ability to pay down debt in the future and/or
refinance at suitable rates, in a timely manner, or at all;
diversion of management's attention from ongoing business
operations and opportunities and other disruption caused by the
M&M Acquisition and the integration processes and their impact
on our existing business and relationships; risks and costs
associated with increased leverage from the M&M Acquisition,
including increased interest expense and potential reduction of
business and strategic flexibility; the ability to maintain plant
utilization rates and to implement planned capacity additions,
expansions and maintenance; the ability to reduce or maintain their
current levels of production costs and to improve productivity by
implementing technological improvements to existing plants;
increased price competition and the introduction of competing
products by other companies; the ability to identify desirable
potential acquisition or divestiture opportunities and to complete
such transactions, including obtaining regulatory approvals,
consistent with the Company's strategy; market acceptance of our
products and technology; compliance and other costs and potential
disruption or interruption of production or operations due to
accidents, interruptions in sources of raw materials,
transportation, logistics or supply chain disruptions,
cybersecurity incidents, terrorism or political unrest, public
health crises (including, but not limited to, the COVID-19
pandemic), or other unforeseen events or delays in construction or
operation of facilities, including as a result of geopolitical
conditions, the occurrence of acts of war (such as the
Russia-Ukraine conflict) or terrorist incidents or as a result of
weather, natural disasters, or other crises; the ability to obtain
governmental approvals and to construct facilities on terms and
schedules acceptable to the Company; changes in applicable tariffs,
duties and trade agreements, tax rates or legislation throughout
the world including, but not limited to, adjustments, changes in
estimates or interpretations or the resolution of tax examinations
or audits that may impact recorded or future tax impacts and
potential regulatory and legislative tax developments in the United
States and other jurisdictions; changes in the degree of
intellectual property and other legal protection afforded to our
products or technologies, or the theft of such intellectual
property; potential liability for remedial actions and increased
costs under existing or future environmental, health and safety
regulations, including those relating to climate change or other
sustainability matters; potential liability resulting from pending
or future claims or litigation, including investigations or
enforcement actions, or from changes in the laws, regulations or
policies of governments or other governmental activities in the
countries in which we operate; changes in currency exchange rates
and interest rates; our level of indebtedness, which could diminish
our ability to raise additional capital to fund operations or limit
our ability to react to changes in the economy or the chemicals
industry; tax rates and changes thereto; our ability to obtain
regulatory approval for, and satisfy closing conditions to, any
transactions described herein that have not closed; and various
other factors discussed from time to time in the Company's filings
with the Securities and Exchange Commission.
Any forward-looking statement speaks only as of the date on
which it is made, and the Company undertakes no obligation to
update any forward-looking statements to reflect events or
circumstances after the date on which it is made or to reflect the
occurrence of anticipated or unanticipated events or
circumstances.
Non-GAAP Financial Measures
Presentation
This document presents the Company's two business segments,
Engineered Materials and the Acetyl Chain.
Use of Non-US GAAP Financial Information
This release uses the following Non-US GAAP measures: adjusted
EBIT, adjusted EBIT margin, operating EBITDA, operating EBITDA
margin, adjusted earnings per share and free cash flow. These
measures are not recognized in accordance with US GAAP and should
not be viewed as an alternative to US GAAP measures of performance
or liquidity. The most directly comparable financial measure
presented in accordance with US GAAP in our consolidated financial
statements for adjusted EBIT and operating EBITDA is net earnings
(loss) attributable to Celanese Corporation; for adjusted EBIT
margin is operating margin; for operating EBITDA margin is
operating margin; for adjusted earnings per share is earnings
(loss) from continuing operations attributable to Celanese
Corporation per common share-diluted; and for free cash flow is net
cash provided by (used in) operations.
Definitions of Non-US GAAP Financial
Measures
- Adjusted EBIT is a performance measure used by the Company and
is defined by the Company as net earnings (loss) attributable to
Celanese Corporation, plus (earnings) loss from discontinued
operations, less interest income, plus interest expense, plus
refinancing expense and taxes, and further adjusted for Certain
Items (refer to Table 8 of our Non-US GAAP Financial Measures and
Supplemental Information document). We do not provide
reconciliations for adjusted EBIT on a forward-looking basis
(including those contained in this document) when we are unable to
provide a meaningful or accurate calculation or estimation of
reconciling items and the information is not available without
unreasonable effort. This is due to the inherent difficulty of
forecasting the timing and amount of Certain Items, such as
mark-to-market pension gains and losses, that have not yet
occurred, are out of our control and/or cannot be reasonably
predicted. For the same reasons, we are unable to address the
probable significance of the unavailable information. Adjusted EBIT
margin is defined by the Company as adjusted EBIT divided by net
sales.
- Operating EBITDA is a performance measure used by the Company
and is defined by the Company as net earnings (loss) attributable
to Celanese Corporation, plus (earnings) loss from discontinued
operations, less interest income, plus interest expense, plus
refinancing expense, taxes and depreciation and amortization, and
further adjusted for Certain Items, which Certain Items include
accelerated depreciation and amortization expense. Operating EBITDA
is equal to adjusted EBIT plus depreciation and amortization.
Operating EBITDA margin is defined by the Company as operating
EBITDA divided by net sales.
- Adjusted earnings per share is a performance measure used by
the Company and is defined by the Company as earnings (loss) from
continuing operations attributable to Celanese Corporation,
adjusted for income tax (provision) benefit, Certain Items, and
refinancing and related expenses, divided by the number of basic
common shares and dilutive restricted stock units and stock options
calculated using the treasury method. We do not provide
reconciliations for adjusted earnings per share on a
forward-looking basis (including those contained in this document)
when we are unable to provide a meaningful or accurate calculation
or estimation of reconciling items and the information is not
available without unreasonable effort. This is due to the inherent
difficulty of forecasting the timing and amount of Certain Items,
such as mark-to-market pension gains and losses, that have not yet
occurred, are out of our control and/or cannot be reasonably
predicted. For the same reasons, we are unable to address the
probable significance of the unavailable information. Note: The
income tax expense (benefit) on Certain Items ("Non-GAAP
adjustments") is determined using the applicable rates in the
taxing jurisdictions in which the Non-GAAP adjustments occurred and
includes both current and deferred income tax expense (benefit).
The income tax rate used for adjusted earnings per share
approximates the midpoint in a range of forecasted tax rates for
the year. This range may include certain partial or full-year
forecasted tax opportunities and related costs, where applicable,
and specifically excludes changes in uncertain tax positions,
discrete recognition of GAAP items on a quarterly basis, other
pre-tax items adjusted out of our GAAP earnings for adjusted
earnings per share purposes and changes in management's assessments
regarding the ability to realize deferred tax assets for GAAP. In
determining the adjusted earnings per share tax rate, we reflect
the impact of foreign tax credits when utilized, or expected to be
utilized, absent discrete events impacting the timing of foreign
tax credit utilization. We analyze this rate quarterly and adjust
it if there is a material change in the range of forecasted tax
rates; an updated forecast would not necessarily result in a change
to our tax rate used for adjusted earnings per share. The adjusted
tax rate is an estimate and may differ from the actual tax rate
used for GAAP reporting in any given reporting period. Table 3a of
our Non-US GAAP Financial Measures and Supplemental Information
document summarizes the reconciliation of our estimated GAAP
effective tax rate to the adjusted tax rate. The estimated GAAP
rate excludes discrete recognition of GAAP items due to our
inability to forecast such items. As part of the year-end
reconciliation, we will update the reconciliation of the GAAP
effective tax rate to the adjusted tax rate for actual
results.
- Free cash flow is a liquidity measure used by the Company and
is defined by the Company as 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
May 9, 2023 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, 2023
December 31,
2022
March 31, 2022
(In $ millions, except share
and per share data)
Net sales
2,853
2,348
2,538
Cost of sales
(2,222
)
(1,964
)
(1,793
)
Gross profit
631
384
745
Selling, general and administrative
expenses
(285
)
(269
)
(174
)
Amortization of intangible assets
(41
)
(30
)
(11
)
Research and development expenses
(42
)
(37
)
(24
)
Other (charges) gains, net
(23
)
7
(1
)
Foreign exchange gain (loss), net
6
3
(1
)
Gain (loss) on disposition of businesses
and assets, net
5
(2
)
(3
)
Operating profit (loss)
251
56
531
Equity in net earnings (loss) of
affiliates
15
31
56
Non-operating pension and other
postretirement employee benefit (expense) income
1
(57
)
24
Interest expense
(182
)
(168
)
(35
)
Interest income
8
33
1
Dividend income - equity investments
34
30
37
Other income (expense), net
(6
)
5
2
Earnings (loss) from continuing operations
before tax
121
(70
)
616
Income tax (provision) benefit
(25
)
840
(112
)
Earnings (loss) from continuing
operations
96
770
504
Earnings (loss) from operation of
discontinued operations
(3
)
(1
)
—
Income tax (provision) benefit from
discontinued operations
—
—
—
Earnings (loss) from discontinued
operations
(3
)
(1
)
—
Net earnings (loss)
93
769
504
Net (earnings) loss attributable to
noncontrolling interests
(2
)
(2
)
(2
)
Net earnings (loss) attributable to
Celanese Corporation
91
767
502
Amounts attributable to Celanese
Corporation
Earnings (loss) from continuing
operations
94
768
502
Earnings (loss) from discontinued
operations
(3
)
(1
)
—
Net earnings (loss)
91
767
502
Earnings (loss) per common share -
basic
Continuing operations
0.87
7.08
4.64
Discontinued operations
(0.03
)
(0.01
)
—
Net earnings (loss) - basic
0.84
7.07
4.64
Earnings (loss) per common share -
diluted
Continuing operations
0.86
7.03
4.61
Discontinued operations
(0.03
)
—
—
Net earnings (loss) - diluted
0.83
7.03
4.61
Weighted average shares (in millions)
Basic
108.6
108.5
108.2
Diluted
109.2
109.2
108.9
Consolidated Balance Sheets - Unaudited
As of March 31,
2023
As of December 31,
2022
(In $ millions)
ASSETS
Current Assets
Cash and cash equivalents
1,167
1,508
Trade receivables - third party and
affiliates, net
1,606
1,379
Non-trade receivables, net
707
675
Inventories
2,749
2,808
Other assets
219
241
Total current assets
6,448
6,611
Investments in affiliates
1,049
1,062
Property, plant and equipment, net
5,588
5,584
Operating lease right-of-use assets
414
413
Deferred income taxes
813
808
Other assets
553
547
Goodwill
7,139
7,142
Intangible assets, net
4,086
4,105
Total assets
26,090
26,272
LIABILITIES AND EQUITY
Current Liabilities
Short-term borrowings and current
installments of long-term debt - third party and affiliates
1,386
1,306
Trade payables - third party and
affiliates
1,445
1,518
Other liabilities
1,014
1,201
Income taxes payable
6
43
Total current liabilities
3,851
4,068
Long-term debt, net of unamortized
deferred financing costs
13,396
13,373
Deferred income taxes
1,223
1,242
Uncertain tax positions
295
322
Benefit obligations
411
411
Operating lease liabilities
359
364
Other liabilities
425
387
Commitments and Contingencies
Stockholders' Equity
Treasury stock, at cost
(5,491
)
(5,491
)
Additional paid-in capital
365
372
Retained earnings
11,289
11,274
Accumulated other comprehensive income
(loss), net
(502
)
(518
)
Total Celanese Corporation stockholders'
equity
5,661
5,637
Noncontrolling interests
469
468
Total equity
6,130
6,105
Total liabilities and equity
26,090
26,272
Non-US GAAP Financial
Measures and Supplemental Information
May 9, 2023
In this document, the terms the "Company," "we" and "our" refer
to Celanese Corporation and its subsidiaries on a consolidated
basis.
Purpose
The purpose of this document is to provide information of
interest to investors, analysts and other parties including
supplemental financial information and reconciliations and other
information concerning our use of non-US GAAP financial measures.
This document is updated quarterly.
Presentation
This document presents the Company's two business segments,
Engineered Materials and the Acetyl Chain.
Use of Non-US GAAP Financial Measures
From time to time, management may publicly disclose certain
numerical "non-GAAP financial measures" in the course of our
earnings releases, financial presentations, earnings conference
calls, investor and analyst meetings and otherwise. For these
purposes, the Securities and Exchange Commission ("SEC") defines a
"non-GAAP financial measure" as a numerical measure of historical
or future financial performance, financial position or cash flows
that excludes amounts, or is subject to adjustments that
effectively exclude amounts, included in the most directly
comparable measure calculated and presented in accordance with US
GAAP, and vice versa for measures that include amounts, or are
subject to adjustments that effectively include amounts, that are
excluded from the most directly comparable US GAAP measure so
calculated and presented. For these purposes, "GAAP" refers to
generally accepted accounting principles in the United States.
Non-GAAP financial measures disclosed by management are provided
as additional information to investors, analysts and other parties
because the Company believes them to be important supplemental
measures for assessing our financial and operating results and as a
means to evaluate our financial condition and period-to-period
comparisons. These non-GAAP financial measures should be viewed as
supplemental to, and should not be considered in isolation or as
alternatives to, net earnings (loss), operating profit (loss),
operating margin, cash flow from operating activities (together
with cash flow from investing and financing activities), earnings
per share or any other US GAAP financial measure. These non-GAAP
financial measures should be considered within the context of our
complete audited and unaudited financial results for the given
period, which are available on the Financial Information/Financial
Document Library page of our website, investors.celanese.com. The
definition and method of calculation of the non-GAAP financial
measures used herein may be different from other companies' methods
for calculating measures with the same or similar titles.
Investors, analysts and other parties should understand how another
company calculates such non-GAAP financial measures before
comparing the other company's non-GAAP financial measures to any of
our own. These non-GAAP financial measures may not be indicative of
the historical operating results of the Company nor are they
intended to be predictive or projections of future results.
Pursuant to the requirements of SEC Regulation G, whenever we
refer to a non-GAAP financial measure, we will also present in this
document, in the presentation itself or on a Form 8-K in connection
with the presentation on the Financial Information/Financial
Document Library page of our website, investors.celanese.com, to
the extent practicable, the most directly comparable financial
measure calculated and presented in accordance with GAAP, along
with a reconciliation of the differences between the non-GAAP
financial measure we reference and such comparable GAAP financial
measure.
This document includes definitions and reconciliations of
non-GAAP financial measures used from time to time by the
Company.
Specific Measures Used
This document provides information about the following non-GAAP
measures: adjusted EBIT, adjusted EBIT margin, operating EBITDA,
operating EBITDA margin, operating profit (loss) attributable to
Celanese Corporation, adjusted earnings per share, net debt, free
cash flow and return on invested capital (adjusted). The most
directly comparable financial measure presented in accordance with
US GAAP in our consolidated financial statements for adjusted EBIT
and operating EBITDA is net earnings (loss) attributable to
Celanese Corporation; for adjusted EBIT margin and operating EBITDA
margin is operating margin; for operating profit (loss)
attributable to Celanese Corporation is operating profit (loss);
for adjusted earnings per share is earnings (loss) from continuing
operations attributable to Celanese Corporation per common
share-diluted; for net debt is total debt; for free cash flow is
net cash provided by (used in) operations; and for return on
invested capital (adjusted) is net earnings (loss) attributable to
Celanese Corporation divided by the sum of the average of beginning
and end of the year short- and long-term debt and Celanese
Corporation 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 contributions from or distributions to
our NCI joint ventures. We believe that free cash flow provides
useful information to management, investors, analysts and other
parties in evaluating the Company's liquidity and credit quality
assessment because it provides an indication of the long-term cash
generating ability of our business. Although we use free cash flow
as a measure to assess the liquidity generated by our business, the
use of free cash flow has important limitations, including that
free cash flow does not reflect the cash requirements necessary to
service our indebtedness, lease obligations, unconditional purchase
obligations or pension and postretirement funding obligations. Free
cash flow is not a measure of cash available for discretionary
expenditures since the Company has certain debt service and finance
lease payments that are not deducted from that measure.
- 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. Amounts referred to as
"attributable to Celanese Corporation" are net of any applicable
NCI.
Results Unaudited
The results in this document, together with the adjustments made
to present the results on a comparable basis, have not been audited
and are based on internal financial data furnished to management.
Quarterly results should not be taken as an indication of the
results of operations to be reported for any subsequent period or
for the full fiscal year.
Table 1
Celanese Adjusted EBIT and Operating
EBITDA - Reconciliation of Non-GAAP Measures - Unaudited
Q1 '23
2022
Q4 '22
Q3 '22
Q2 '22
Q1 '22
(In $ millions)
Net earnings (loss) attributable to
Celanese Corporation
91
1,894
767
191
434
502
(Earnings) loss from discontinued
operations
3
8
1
1
6
—
Interest income
(8
)
(69
)
(33
)
(34
)
(1
)
(1
)
Interest expense
182
405
168
154
48
35
Income tax provision (benefit)
25
(489
)
(840
)
127
112
112
Certain Items attributable to Celanese
Corporation (Table 8)
131
422
239
71
47
65
Adjusted EBIT
424
2,171
302
510
646
713
Depreciation and amortization
expense(1)
172
446
151
97
98
100
Operating EBITDA
596
2,617
453
607
744
813
Q1 '23
2022
Q4 '22
Q3 '22
Q2 '22
Q1 '22
(In $ millions)
Engineered Materials
—
13
2
3
4
4
Acetyl Chain
—
2
—
—
—
2
Other Activities(2)
—
1
—
—
1
—
Accelerated depreciation and
amortization expense
—
16
2
3
5
6
Depreciation and amortization
expense(1)
172
446
151
97
98
100
Total depreciation and
amortization expense
172
462
153
100
103
106
______________________________
(1)
Excludes accelerated depreciation and
amortization expense as detailed in the table above, which amounts
are included in Certain Items above.
(2)
Other Activities includes corporate
Selling, general and administrative ("SG&A") expenses, results
of captive insurance companies and certain components of net
periodic benefit cost (interest cost, expected return on plan
assets and net actuarial gains and losses).
Table 1a
M&M Adjusted EBIT and Operating
EBITDA - Reconciliation of Non-GAAP Measures - Unaudited
Q1 '23
Q4 '22
(In $ millions)
Net earnings (loss) attributable to
M&M
(48
)
(69
)
(3)
Income tax provision (benefit)
13
6
Certain Items(1)
86
72
Adjusted EBIT
51
9
Depreciation and amortization expense
68
47
Operating EBITDA(2)
119
56
(4)
______________________________
(1)
Amount is included within total Certain
Items shown in Table 8.
(2)
Excludes $(23) million and $(17) million
of Operating EBITDA included in Other Activities for the three
months ended March 31, 2023 and December 31, 2022,
respectively.
(3)
Excludes $30 million of Net loss for the
month ended October 31, 2022, prior to our acquisition of the
majority of the Mobility & Materials business ("M&M
Business") of DuPont de Nemours, Inc.
(4)
Excludes $22 million of Operating
EBITDA for the month ended October 31, 2022, prior to our
acquisition of the M&M Business.
Table 2 - Supplemental Segment Data and Reconciliation of
Segment Adjusted EBIT and Operating EBITDA - Non-GAAP Measures –
Unaudited
Q1 '23
2022
Q4 '22
Q3 '22
Q2 '22
Q1 '22
(In $ millions, except
percentages)
Operating Profit (Loss) / Operating
Margin
Engineered Materials(1)
112
6.9
%
429
10.7
%
25
2.0
%
114
12.3
%
166
17.5
%
124
13.6
%
Acetyl Chain(1)
278
22.2
%
1,447
25.2
%
204
18.0
%
312
22.3
%
428
27.5
%
503
30.4
%
Other Activities(2)
(139
)
(498
)
(173
)
(118
)
(111
)
(96
)
Total
251
8.8
%
1,378
14.2
%
56
2.4
%
308
13.4
%
483
19.4
%
531
20.9
%
Less: Net Earnings (Loss) Attributable to
NCI(1)
2
8
2
2
2
2
Operating Profit (Loss) Attributable to
Celanese Corporation
249
8.7
%
1,370
14.2
%
54
2.3
%
306
13.3
%
481
19.3
%
529
20.8
%
Operating Profit (Loss) / Operating
Margin Attributable to Celanese Corporation
Engineered Materials(1)
112
6.9
%
429
10.7
%
25
2.0
%
114
12.3
%
166
17.5
%
124
13.6
%
Acetyl Chain(1)
276
22.1
%
1,439
25.1
%
202
17.8
%
310
22.2
%
426
27.3
%
501
30.3
%
Other Activities(2)
(139
)
(498
)
(173
)
(118
)
(111
)
(96
)
Total
249
8.7
%
1,370
14.2
%
54
2.3
%
306
13.3
%
481
19.3
%
529
20.8
%
Equity Earnings and Dividend Income,
Other Income (Expense) Attributable to Celanese Corporation
Engineered Materials
10
207
35
70
53
49
Acetyl Chain
34
143
30
34
39
40
Other Activities(2)
(1
)
12
1
4
1
6
Total
43
362
66
108
93
95
Non-Operating Pension and Other
Post-Retirement Employee Benefit (Expense) Income Attributable to
Celanese Corporation
Engineered Materials
—
—
—
—
—
—
Acetyl Chain
—
—
—
—
—
—
Other Activities(2)
1
17
(57
)
25
25
24
Total
1
17
(57
)
25
25
24
Certain Items Attributable to Celanese
Corporation (Table 8)
Engineered Materials
93
143
78
22
5
38
Acetyl Chain
6
27
10
5
10
2
Other Activities(2)
32
252
151
44
32
25
Total
131
422
239
71
47
65
Adjusted EBIT / Adjusted EBIT
Margin
Engineered Materials
215
13.2
%
779
19.4
%
138
11.2
%
206
22.2
%
224
23.6
%
211
23.2
%
Acetyl Chain
316
25.3
%
1,609
28.0
%
242
21.3
%
349
25.0
%
475
30.5
%
543
32.9
%
Other Activities(2)
(107
)
(217
)
(78
)
(45
)
(53
)
(41
)
Total
424
14.9
%
2,171
22.4
%
302
12.9
%
510
22.2
%
646
26.0
%
713
28.1
%
___________________________
(1)
Net earnings (loss) attributable to NCI is
included within the Engineered Materials and the Acetyl Chain
segments.
(2)
Other Activities includes corporate
SG&A expenses, results of captive insurance companies and
certain components of net periodic benefit cost (interest cost,
expected return on plan assets and net actuarial gains and
losses).
Table 2 - Supplemental Segment Data and
Reconciliation of Segment Adjusted EBIT and Operating EBITDA -
Non-GAAP Measures - Unaudited (cont.)
Q1 '23
2022
Q4 '22
Q3 '22
Q2 '22
Q1 '22
(In $ millions, except
percentages)
Depreciation and Amortization
Expense(1)
Engineered Materials
112
213
90
40
41
42
Acetyl Chain
54
211
52
53
52
54
Other Activities(2)
6
22
9
4
5
4
Total
172
446
151
97
98
100
Operating EBITDA / Operating EBITDA
Margin
Engineered Materials
327
20.1
%
992
24.7
%
228
18.4
%
246
26.5
%
265
28.0
%
253
27.8
%
Acetyl Chain
370
29.6
%
1,820
31.7
%
294
25.9
%
402
28.8
%
527
33.8
%
597
36.1
%
Other Activities(2)
(101
)
(195
)
(69
)
(41
)
(48
)
(37
)
Total
596
20.9
%
2,617
27.1
%
453
19.3
%
607
26.4
%
744
29.9
%
813
32.0
%
___________________________
(1)
Excludes accelerated depreciation and
amortization expense, which amounts are included in Certain Items
above. See Table 1 for details.
(2)
Other Activities includes corporate
SG&A expenses, results of captive insurance companies and
certain components of net periodic benefit cost (interest cost,
expected return on plan assets and net actuarial gains and
losses).
Table 3
Adjusted Earnings (Loss) per Share -
Reconciliation of a Non-GAAP Measure - Unaudited
Q1 '23
2022
Q4 '22
Q3 '22
Q2 '22
Q1 '22
per
per
per
per
per
per
share
share
share
share
share
share
(In $ millions, except per
share data)
Earnings (loss) from continuing operations
attributable to Celanese Corporation
94
0.86
1,902
17.41
768
7.03
192
1.76
440
4.03
502
4.61
Income tax provision (benefit)
25
(489
)
(840
)
127
112
112
Earnings (loss) from continuing operations
before tax
119
1,413
(72
)
319
552
614
Certain Items attributable to Celanese
Corporation (Table 8)
131
422
239
71
47
65
Refinancing and related expenses
—
158
(1)
14
(1)
104
(1)
26
(1)
14
(1)
Adjusted earnings (loss) from continuing
operations before tax
250
1,993
181
494
625
693
Income tax (provision) benefit on adjusted
earnings(2)
(30
)
(259
)
(24
)
(64
)
(81
)
(90
)
Adjusted earnings (loss) from
continuing operations(3)
220
2.01
1,734
15.88
157
1.44
430
3.94
544
4.99
603
5.54
Diluted shares (in
millions)(4)
Weighted average shares outstanding
108.6
108.4
108.5
108.4
108.4
108.2
Incremental shares attributable to equity
awards
0.6
0.8
0.7
0.7
0.7
0.7
Total diluted shares
109.2
109.2
109.2
109.1
109.1
108.9
______________________________
(1)
Includes net interest expense and certain
fees related to debt issued as part of our acquisition of the
M&M Business.
(2)
Calculated using adjusted effective tax
rates (Table 3a) as follows:
Q1 '23
2022
Q4 '22
Q3 '22
Q2 '22
Q1 '22
Adjusted effective tax rate
12
13
13
13
13
13
(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)
2022
(18.4
)
5.4
(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
2023
2022
(In percentages)
US GAAP annual effective tax rate
16
(34
)
Discrete quarterly recognition of GAAP
items(1)
(1
)
(6
)
Tax impact of other charges and
adjustments(2)
(3
)
9
Utilization of foreign tax credits
—
—
Changes in valuation allowances, excluding
impact of other charges and adjustments(3)
—
(1
)
Other, includes effect of discrete current
year transactions(4)
—
45
(5)
Adjusted tax rate
12
13
______________________________
Note: As part of the year-end
reconciliation, we will update the reconciliation of the GAAP
effective tax rate for actual results.
(1)
Such as changes in tax laws (including US
tax reform), deferred taxes on outside basis differences, changes
in uncertain tax positions and prior year audit adjustments.
(2)
Reflects the tax impact on pre-tax
adjustments presented in Certain Items (Table 8), which are
excluded from pre-tax income for adjusted earnings per share
purposes.
(3)
Reflects changes in valuation allowances
related to changes in judgment regarding the realizability of
deferred tax assets or current year operations, excluding other
charges and adjustments.
(4)
Includes tax impacts related to full-year
forecasted tax opportunities and related costs.
(5)
Includes the reversal of certain U.S. GAAP
deferred tax benefits in 2022 related to non-recurring internal
restructuring transactions related to the M&M acquisition, to
centralize ownership of intellectual property with the business and
to facilitate future deployment of cash to service acquisition
indebtedness. Certain benefits of the internal restructuring will
be realized in future periods for adjusted earnings purposes.
Table 4
Net Sales by Segment - Unaudited
Q1 '23
2022
Q4 '22
Q3 '22
Q2 '22
Q1 '22
(In $ millions)
Engineered Materials
1,630
4,024
1,237
929
948
910
Acetyl Chain
1,250
5,743
1,135
1,397
1,559
1,652
Intersegment eliminations(1)
(27
)
(94
)
(24
)
(25
)
(21
)
(24
)
Net sales
2,853
9,673
2,348
2,301
2,486
2,538
___________________________
(1)
Includes intersegment sales primarily
related to the Acetyl Chain.
Table 4a Factors Affecting Segment Net Sales Sequentially
- Unaudited
Three Months Ended March 31, 2023
Compared to Three Months Ended December 31, 2022
Volume
Price
Currency
Total
(In percentages)
Engineered Materials
34
(4
)
2
32
Acetyl Chain
10
(2
)
2
10
Total Company
19
(4
)
2
17
Three Months Ended December 31, 2022 Compared to Three Months
Ended September 30, 2022
Volume
Price
Currency
Total
(In percentages)
Engineered Materials
34
(1
)
—
33
(1)
Acetyl Chain
(9
)
(10
)
—
(19
)
Total Company
8
(6
)
—
2
Three Months Ended September 30, 2022
Compared to Three Months Ended June 30, 2022
Volume
Price
Currency
Total
(In percentages)
Engineered Materials
(1
)
2
(3
)
(2
)
Acetyl Chain
(3
)
(5
)
(2
)
(10
)
Total Company
(2
)
(3
)
(2
)
(7
)
Three Months Ended June 30, 2022
Compared to Three Months Ended March 31, 2022
Volume
Price
Currency
Total
(In percentages)
Engineered Materials
1
6
(3
)
4
Acetyl Chain
(6
)
2
(2
)
(6
)
Total Company
(2
)
2
(2
)
(2
)
Three Months Ended March 31, 2022
Compared to Three Months Ended December 31, 2021
Volume
Price
Currency
Total
(In percentages)
Engineered Materials
23
7
(1
)
29
Acetyl Chain
7
(3
)
—
4
Total Company
12
1
(1
)
12
________________________
(1)
2022 includes the effect of the
acquisition of the majority of the M&M Business.
Table 4b
Factors Affecting Segment Net Sales
Year Over Year - Unaudited
Three Months Ended March 31, 2023
Compared to Three Months Ended March 31, 2022
Volume
Price
Currency
Total
(In percentages)
Engineered Materials
80
2
(3
)
79
Acetyl Chain
(9
)
(13
)
(2
)
(24
)
Total Company
23
(8
)
(3
)
12
Three Months Ended December 31, 2022
Compared to Three Months Ended December 31, 2021
Volume
Price
Currency
Total
(In percentages)
Engineered Materials
67
17
(9
)
75
Acetyl Chain
(12
)
(14
)
(3
)
(29
)
Total Company
13
(5
)
(5
)
3
Three Months Ended September 30, 2022
Compared to Three Months Ended September 30, 2021
Volume
Price
Currency
Total
(In percentages)
Engineered Materials
23
25
(12
)
36
Acetyl Chain
(10
)
2
(5
)
(13
)
Total Company
(2
)
9
(5
)
2
Three Months Ended June 30, 2022
Compared to Three Months Ended June 30, 2021
Volume
Price
Currency
Total
(In percentages)
Engineered Materials
24
24
(9
)
39
Acetyl Chain
(5
)
11
(4
)
2
Total Company
3
14
(4
)
13
Three Months Ended March 31, 2022
Compared to Three Months Ended March 31, 2021
Volume
Price
Currency
Total
(In percentages)
Engineered Materials
20
25
(4
)
41
Acetyl Chain
7
38
(3
)
42
Total Company
12
32
(3
)
41
Table 4c
Factors Affecting Segment Net Sales
Year Over Year - Unaudited
Year Ended December 31, 2022 Compared
to Year Ended December 31, 2021
Volume
Price
Currency
Total
(In percentages)
Engineered Materials
33
23
(8
)
48
Acetyl Chain
(6
)
6
(3
)
(3
)
Total Company
6
11
(4
)
13
Table 5
Free Cash Flow - Reconciliation of a
Non-GAAP Measure - Unaudited
Q1 '23
2022
Q4 '22
Q3 '22
Q2 '22
Q1 '22
(In $ millions, except
percentages)
Net cash provided by (used in) investing
activities
(178
)
(11,141
)
(10,713
)
(143
)
(136
)
(149
)
Net cash provided by (used in) financing
activities
(69
)
10,290
1,944
8,600
(159
)
(95
)
Net cash provided by (used in) operating
activities
(96
)
1,819
541
467
495
316
Capital expenditures on property, plant
and equipment
(164
)
(543
)
(143
)
(139
)
(124
)
(137
)
Contributions from/(Distributions) to
NCI
(1
)
(13
)
(3
)
(3
)
(3
)
(4
)
Free cash flow(1)
(261
)
1,263
395
325
368
175
Net sales
2,853
9,673
2,348
2,301
2,486
2,538
Free cash flow as % of Net
sales
(9.1
)%
13.1
%
16.8
%
14.1
%
14.8
%
6.9
%
______________________________
(1)
Free cash flow is a liquidity measure used
by the Company and is defined by the Company as net cash provided
by (used in) operating activities, less capital expenditures on
property, plant and equipment, and adjusted for contributions from
or distributions to our NCI joint ventures.
Table 6
Cash Dividends Received -
Unaudited
Q1 '23
2022
Q4 '22
Q3 '22
Q2 '22
Q1 '22
(In $ millions)
Dividends from equity method
investments
40
217
82
27
82
26
Dividends from equity investments without
readily determinable fair values
34
133
30
30
36
37
Total
74
350
112
57
118
63
Table 7
Net Debt - Reconciliation of a Non-GAAP
Measure - Unaudited
Q1 '23
2022
Q4 '22
Q3 '22
Q2 '22
Q1 '22
(In $ millions)
Short-term borrowings and current
installments of long-term debt - third party and affiliates
1,386
1,306
1,306
977
809
860
Long-term debt, net of unamortized
deferred financing costs
13,396
13,373
13,373
11,360
3,022
3,132
Total debt
14,782
14,679
14,679
12,337
3,831
3,992
Cash and cash equivalents
(1,167
)
(1,508
)
(1,508
)
(9,671
)
(783
)
(605
)
Net debt
13,615
13,171
13,171
2,666
3,048
3,387
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 '23
2022
Q4 '22
Q3 '22
Q2 '22
Q1 '22
Income Statement
Classification
(In $ millions)
Exit and shutdown costs
26
52
2
14
29
7
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
—
13
2
12
(1
)
—
Cost of sales / Other (charges) gains,
net
Impact from plant incidents and natural
disasters(1)
6
17
17
—
—
—
Cost of sales
Mergers, acquisitions and dispositions
99
267
138
44
29
56
Cost of sales / SG&A
Actuarial (gain) loss on pension and
postretirement plans
—
80
80
—
—
—
Cost of sales / SG&A / Non-operating
pension and other postretirement employee benefit (expense)
income
Legal settlements and commercial
disputes
—
3
—
1
—
2
Cost of sales / SG&A / Other (charges)
gains, net
Other
—
(10
)
—
—
(10
)
—
Cost of sales / SG&A / Gain (loss) on
disposition of businesses and assets, net
Certain Items attributable to Celanese
Corporation
131
422
239
71
47
65
___________________________
(1)
Primarily associated with Winter Storm
Elliott.
Table 9
Return on Invested Capital (Adjusted) -
Presentation of a Non-GAAP Measure - Unaudited
2022
(In $ millions, except
percentages)
Net earnings (loss) attributable to
Celanese Corporation
1,894
Adjusted EBIT (Table 1)
2,171
Adjusted effective tax rate (Table 3a)
13
%
Adjusted EBIT tax effected
1,889
2022
2021
Average
(In $ millions, except
percentages)
Short-term borrowings and current
installments of long-term debt - third parties and affiliates
1,306
791
1,049
Long-term debt, net of unamortized
deferred financing costs
13,373
3,176
8,275
Celanese Corporation stockholders'
equity
5,637
4,189
4,913
Invested capital
14,237
Return on invested capital
(adjusted)
13.3
%
Net earnings (loss) attributable to
Celanese Corporation as a percentage of invested capital
13.3
%
View source
version on businesswire.com: https://www.businesswire.com/news/home/20230508005513/en/
Investor Relations Brandon Ayache Phone: +1 972 443 8509
brandon.ayache@celanese.com
Media - U.S. Brian Bianco Phone: +1 972 443 4400
media@celanese.com
Media - Europe Petra Czugler Phone: +49 69 45009 1206
petra.czugler@celanese.com
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