Celanese Corporation (NYSE: CE), a global chemical and specialty
materials company, today reported full year 2024 U.S. GAAP diluted
loss per share of $13.86 and adjusted earnings per share of $8.37.
The Company generated net sales of $10.3 billion in 2024, a 6
percent decrease from the previous year consisting of a 4 percent
decline in price and a 1 percent decline in volume, with a small
currency impact. Persistently weak global demand in critical
end-markets like automotive, paints, coatings, construction and
industrial caused headwinds throughout the year. Celanese took
actions, including reducing fixed and variable costs and delivered
2024 consolidated operating loss of $697 million, adjusted EBIT of
$1.6 billion, and operating EBITDA of $2.4 billion at margins of
(7), 16, and 23 percent, respectively.
The difference between U.S. GAAP diluted loss per share and
adjusted earnings per share in 2024 was primarily due to Certain
Items totaling $2.0 billion with the majority of the cost related
to non-cash asset impairment charges.
Celanese reported fourth quarter net sales of $2.4 billion,
representing a 10 percent sequential decline due to decreases of 7
percent in volume, 2 percent in price, and 1 percent in currency.
The fourth quarter was negatively impacted by amplified sequential
seasonality in the Acetyl Chain, as well as severe Western
Hemisphere automotive and industrial destocking in Engineered
Materials. The Company took actions to reduce costs, align
production to available demand, and release working capital through
inventory drawdown to mitigate the impact of the challenging demand
environment. For the fourth quarter, Celanese reported an operating
loss of $1.4 billion, adjusted EBIT of $333 million, and operating
EBITDA of $517 million at margins of (59), 14, and 22 percent,
respectively.
Celanese is taking actions intended to deliver stable earnings
growth and generate cash to deleverage the balance sheet in the
current demand environment, including the following:
- Announced the completion of all actions required to exceed the
targeted $75 million in cost reductions within 2025, primarily in
selling, general, and administrative (SG&A), that the Company
previously announced in the third quarter earnings release. The
focus of these reductions was better aligning the Company's cost
structure with the demand environment, while maintaining the
ability to scale as demand recovers.
- Announced the intention to cease production and execute the
closure of the Company's Luxembourg Mylar Specialty Films
manufacturing operations, a 50/50 joint venture owned by Celanese
and Teijin. This action is in keeping with the Company's core
principle of exiting higher cost facilities and focusing on
productivity through debottlenecking at lower cost facilities.
Additionally, Celanese continues to evolve its project pipeline
model to respond to business conditions and sharpen the focus on
growth. The average value of projects won in high growth
applications like electric vehicles, battery energy storage,
medical, and consumer athletic wear has increased by 24 percent
compared to last year, although achieving full value of many
projects is delayed due to the challenging demand environment.
"The fourth quarter results developed largely as we expected,
despite further demand deterioration that gave no sign of easing,"
said Scott Richardson, president and chief executive officer. "With
little indication of near-term recovery, it is our job to drive
productivity and earnings growth at Celanese even if fundamental
demand remains flat or declines further. As we move forward, we are
focused on three strategic priorities: intensifying cost reduction,
driving growth through our AC optionality model and EM pipeline
model, and increasing cash flow to deleverage the balance sheet. We
continue to take actions to reduce costs and accelerate growth, and
we expect to take additional actions to deliver on our priorities
based on evolving business conditions."
Recent Highlights:
- Appointed Scott Richardson, formerly the Company's Chief
Operating Officer, as President and Chief Executive Officer as of
January 1, 2025. Mr. Richardson succeeded Lori Ryerkerk, who
stepped down as Chair of the Board, President, and CEO. Mr.
Richardson, who also joined the Company's Board of Directors, has
over two decades of experience at Celanese in a number of other key
management roles within the company, including Chief Financial
Officer and leadership positions overseeing Celanese’s Engineered
Materials and Acetyl Chain businesses.
- Elected Ed Galante, an independent director on Celanese’s Board
since 2013, as Chair of the Board to succeed Ms. Ryerkerk. Prior to
joining the Company's Board of Directors in 2012, Mr. Galante
served as Senior Vice President and Member of the Management
Committee of Exxon Mobil Corporation, an international oil and gas
company, and Executive Vice President of ExxonMobil Chemical
Company. Prior to that, he held various management positions of
increasing responsibility over more than 30 years with Exxon Mobil
and its predecessor companies.
- Elected Chris Kuehn to the Company's Board of Directors on
January 1, 2025. Mr. Kuehn is the Executive Vice President and
Chief Financial Officer of Trane Technologies plc (Trane), a global
climate innovator that designs, manufactures, sells, and services
solutions for heating, ventilation and air conditioning, transport
refrigeration, and custom refrigeration.
- Elected Scott Sutton to the Company's Board of Directors,
effective March 1, 2025. Mr. Sutton is a proven leader with nearly
35 years of experience in the chemicals industry, most recently
serving as the former President, Chief Executive Officer and
Chairman of Olin Corporation. Prior to that, Mr. Sutton served as
President and Chief Executive Officer of Prince International
Corporation and as Chief Operating Officer of Celanese from 2017
until 2019. Mr. Sutton and Mr. Richardson will co-chair the newly
formed Finance and Business Review Committee of the Board.
- Appointed Todd Elliot as Senior Vice President (SVP) to lead
the Engineered Materials business, effective February 3, 2025. Mr.
Elliott succeeded Tom Kelly, who is serving in a transition role
through March 10, 2025. Mr. Elliott returned to Celanese after
previously retiring from the Company as SVP and head of the Acetyl
Chain business. In addition to his role as head of the Acetyl
Chain, Mr. Elliott oversaw the Acetate Tow business, the company’s
European regional center, and commercial operations of the
Engineered Materials business. While head of global sales for
Engineered Materials, Mr. Elliott was instrumental in launching the
customer project pipeline model that has been foundational for the
Company’s focus on value creation.
Fourth Quarter 2024 Financial
Highlights:
Three Months Ended
December 31,
2024
September 30,
2024
December 31,
2023
(unaudited)
(In $ millions, except per
share data)
Net Sales
Engineered Materials
1,281
1,481
1,406
Acetyl Chain
1,110
1,190
1,181
Intersegment Eliminations
(21
)
(23
)
(18
)
Total
2,370
2,648
2,569
Operating Profit (Loss)
Engineered Materials
(1,508
)
102
122
Acetyl Chain
216
239
264
Other Activities
(113
)
(93
)
(127
)
Total
(1,405
)
248
259
Net Earnings (Loss)
(1,911
)
120
701
Adjusted EBIT(1)
Engineered Materials
156
237
199
Acetyl Chain
253
276
300
Other Activities
(76
)
(56
)
(65
)
Total
333
457
434
Equity Earnings and Dividend Income,
Other Income (Expense)
Engineered Materials
33
46
45
Acetyl Chain
35
34
33
Operating EBITDA(1)
517
644
608
Diluted EPS - continuing operations
$
(17.45
)
$
1.08
$
6.43
Diluted EPS - total
$
(17.50
)
$
1.06
$
6.37
Adjusted EPS(1)
$
1.45
$
2.44
$
2.24
Net cash provided by (used in) investing
activities
(128
)
(100
)
(168
)
Net cash provided by (used in) financing
activities
(189
)
(376
)
(240
)
Net cash provided by (used in) operating
activities
494
79
830
Free cash flow(1)
381
(16
)
702
____________________________
(1)
See "Non-US GAAP Financial Measures"
below.
Year Ended December
31,
2024
2023
(unaudited)
(In $ millions, except per
share data)
Net Sales
Engineered Materials
5,607
6,149
Acetyl Chain
4,763
4,884
Intersegment Eliminations
(90
)
(93
)
Total
10,280
10,940
Operating Profit (Loss)
Engineered Materials
(1,179
)
1,083
Acetyl Chain
951
1,109
Other Activities
(469
)
(505
)
Total
(697
)
1,687
Net Earnings (Loss)
(1,514
)
1,964
Adjusted EBIT(1)
Engineered Materials
859
848
Acetyl Chain
1,102
1,258
Other Activities
(313
)
(353
)
Total
1,648
1,753
Equity Earnings and Dividend Income,
Other Income (Expense)
Engineered Materials
178
87
Acetyl Chain
138
132
Operating EBITDA(1)
2,376
2,444
Diluted EPS - continuing operations
$
(13.86
)
$
18.00
Diluted EPS - total
$
(13.93
)
$
17.92
Adjusted EPS(1)
$
8.37
$
8.92
Net cash provided by (used in) investing
activities
(470
)
(134
)
Net cash provided by (used in) financing
activities
(1,313
)
(1,456
)
Net cash provided by (used in) operating
activities
966
1,899
Free cash flow(1)
498
1,320
____________________________
(1)
See "Non-US GAAP Financial Measures"
below.
Full Year 2024 and Fourth Quarter Business Segment
Overview
Acetyl Chain
The Acetyl Chain delivered 2024 net sales of $4.8 billion, a 2
percent decrease from the prior year, driven by a 6 percent decline
in price and a 4 percent increase in volume. The business faced
continued Western Hemisphere demand weakness, particularly in
Europe, as well as continued sluggish demand in Asia that was
compounded by supply increases in China. The business delivered
full year operating profit of $951 million, adjusted EBIT of $1.1
billion, and operating EBITDA of $1.3 billion at margins of 20, 23,
and 28 percent, respectively. In an environment with continual
challenges across the year due to weak demand in paints, coating,
and construction applications, the Acetyl Chain focused on
delivering stable earnings by leveraging optionality across the
business's global footprint and integrated value chain. This
approach supported a new record for sales volume in the
redispersible powders product line. Additionally, despite the
significant production losses in the second quarter of 2024
attributable to the largest unplanned supply disruption in over 15
years, the Company delivered a record in annual acetic acid
production at the Clear Lake site.
The Acetyl Chain reported fourth quarter net sales of $1.1
billion, which was a 7 percent sequential decline driven by a 4
percent decrease in volume and a 2 percent decrease in price, with
a small currency impact. The results reflected an already weak
demand environment in the Western Hemisphere that was amplified by
softer than normal year-end seasonality. The Acetyl Chain was able
to partially offset these headwinds by temporarily idling
production at certain units to drive cost savings and better align
manufacturing to demand.
Engineered Materials
Engineered Materials reported full year 2024 net sales of $5.6
billion, representing a decrease of 9 percent compared to the
previous year, consisting of a 5 percent decline in volume and a 3
percent decline in price, with a small currency impact. The
business faced a demand environment that was anemic throughout the
year, and significantly deteriorated in the second half due to the
rapid slowdown of commercial activity in both automotive and
industrial segments, particularly in the Western Hemisphere. The
European automotive sector was especially affected, with industry
automotive builds declining by 7 percent in the second half of 2024
when compared to the first half, while falling 3 percent for the
full year when compared to 2023. The intensifying competitive
dynamics, especially in standard grade applications, offset the
significant year-over year improvements made to the Engineered
Materials cost position enabled by lower raw material costs and
extensive manufacturing fixed cost reduction. Engineered Materials
reported full year 2024 operating loss of $1.2 billion, adjusted
EBIT of $859 million, and operating EBITDA of $1.3 billion, with
margins of (21), 15, and 23 percent, respectively. The business
took actions to temper the impacts of the tepid demand environment
by focusing on cost reductions, evidenced by the lower fixed cost
base through manufacturing footprint reductions at such high cost
locations as Uentrop, Germany and Mechelen, Belgium. Engineered
Materials also continued driving growth programs through the
project pipeline model, especially in high growth areas like
electric vehicles, where the value of projects won increased by 30
percent compared to 2023. The advancement of the project pipeline
model remains central to the Engineered Materials growth strategy
and has partially offset the current demand headwinds while
establishing a strong foundation for growth as end-markets
recover.
Engineered Materials reported fourth quarter net sales of $1.3
billion, driven by a 10 percent sequential decline in volume and a
3 percent sequential decline in price with a small currency impact.
The demand environment was impacted by sharp sequential downturns
in the automotive and industrial businesses caused by severe
destocking in response to the abrupt demand pullbacks experienced
by Western Hemisphere OEMs and supplier tiers in the third quarter.
Engineered Materials reported fourth quarter operating loss of $1.5
billion, adjusted EBIT of $156 million, and operating EBITDA of
$270 million at margins of (118), 12, and 21 percent, respectively.
The business focused on driving lower costs as well as curtailing
production to enable a release of working capital by sequentially
reducing inventory by over $200 million.
Cash Flow and Tax
Celanese reported 2024 operating cash flow of $966 million and
free cash flow of $498 million, which included cash capital
expenditures of $435 million. Full year operating cash flow results
included $131 million working capital use of cash which was
impacted by demand trends in the second half of the year and timing
of footprint rationalization actions. In 2024, Celanese returned
$307 million in cash to shareholders and has retired a total of
$1.0 billion in bonds as part of its deleveraging plan.
The tax rate for U.S. GAAP purposes was negative 51 percent for
the full year 2024 due to a book goodwill impairment charge of $1.5
billion for the Engineered Materials reporting unit that did not
provide tax benefit as well as an increase to valuation allowances
on local country non-US tax credits due to a decline in forecasted
future earnings as considered in the goodwill impairment analysis.
The effective tax rate for adjusted earnings was 9 percent for 2024
as the goodwill charge is non-deductible for tax purposes and the
benefits of the noted tax credits will be realized only if they are
utilized to offset income in future periods for adjusted earnings
purposes.
Outlook
Celanese expects the sequential demand and pricing challenges
experienced in the fourth quarter to be largely unchanged in the
first quarter, with continued weakness in core end-markets like
automotive, construction, paints, coatings, and industrial.
Celanese expects additional headwinds in the first quarter from
seasonality in both the acetate tow and the medical implants
businesses, as well as a planned outage at the Bishop, Texas
facility. Additionally, the Company expects a delay until the
second quarter of dividend income from the acetate joint venture in
China due to a recent change in Chinese law that will adjust the
payments to three times a year instead of quarterly. The Company
anticipates approximately $100 million headwinds from these factors
and expects them to be contained to the first quarter.
"While we do not expect significant changes in the overall
demand landscape in the first quarter, we continue to drive actions
to mitigate these headwinds," said Scott Richardson. "Including the
impact of non-recurring costs, we anticipate first quarter earnings
per share to be $0.25 to $0.50. The one-time factors impacting the
first quarter, along with some modest improvement in volumes, give
us visibility to meaningful sequential improvement in the second
quarter, and we anticipate second quarter earnings per share to be
approximately $1.00 per share higher than the first quarter before
benefits from any other business improvement actions we are
taking."
"Over my twenty years with Celanese, we have been through
periods similar to what we are experiencing now. We will again
respond by delivering productivity every day, prudently allocating
capital, and driving growth through our pipeline model to
reestablish Celanese as a top quartile company for total
shareholder return."
Reconciliations of forecasted non-GAAP measures such as adjusted
earnings per share, adjusted EBIT, operating EBITDA or free cash
flow to the equivalent U.S. GAAP measures (diluted earnings per
share, net earnings (loss) attributable to Celanese Corporation and
net cash provided by (used in) operations, respectively), are not
available without unreasonable efforts because a forecast of
Certain Items, such as mark-to-market pension gains/losses, and
other items is not practical. For more information, see "Non-GAAP
Financial Measures" below.
The Company's prepared remarks related to the fourth quarter
will be posted on its website at investors.celanese.com under
Financial Information/Financial Document Library on February 18,
2025. Information about Non-US GAAP measures is included in a
Non-US GAAP Financial Measures and Supplemental Information
document posted on our investor relations website under Financial
Information/Non-GAAP Financial Measures. See also "Non-GAAP
Financial Measures" below.
Celanese Corporation is a global leader in chemistry, producing
specialty material solutions used across most major industries and
consumer applications. Our businesses use our chemistry, technology
and commercial expertise to create value for our customers,
employees and shareholders. We support sustainability by
responsibly managing the materials we create and growing our
portfolio of sustainable products to meet customer and societal
demand. We strive to make a positive impact in our communities and
to foster inclusivity across our teams. Celanese Corporation is a
Fortune 500 company that employs approximately 12,200 employees
worldwide with 2024 net sales of $10.3 billion.
Forward-Looking Statements
This release may contain "forward-looking statements," which
include information concerning the Company's plans, objectives,
goals, strategies, future revenues, cash flow, financial
performance, synergies, capital expenditures, deleveraging efforts,
dividend policy, financing needs and other information that is not
historical information. All forward-looking statements are based
upon current expectations and beliefs and various assumptions.
There can be no assurance that the Company will realize these
expectations or that these beliefs will prove correct. There are a
number of risks and uncertainties that could cause actual results
to differ materially from the results expressed or implied in the
forward-looking statements contained in this release. These risks
and uncertainties include, among other things: changes in general
economic, business, political and regulatory conditions in the
countries or regions in which we operate; the length and depth of
product and industry business cycles, particularly in the
automotive, electrical, textiles, electronics and construction
industries; volatility or changes in the price and availability of
raw materials and energy, particularly changes in the demand for,
supply of, and market prices of ethylene, methanol, natural gas,
carbon monoxide, wood pulp, hexamethylene diamine, Polyamide 66
("PA66"), polybutylene terephthalate, ethanol, natural gas and fuel
oil, and the prices for electricity and other energy sources; the
ability to pass increases in raw materials prices, logistics costs
and other costs on to customers or otherwise improve margins
through price increases; the possibility that we will not be able
to realize the anticipated benefits of the Mobility & Materials
business (the "M&M Business") we acquired from DuPont de
Nemours, Inc. (the "M&M Acquisition"), including synergies and
growth opportunities, whether as a result of difficulties arising
from the operation of the M&M Business or other unanticipated
delays, costs, inefficiencies or liabilities; additional
impairments of goodwill or intangible assets; increased commercial,
legal or regulatory complexity of entering into, or expanding our
exposure to, certain end markets and geographies; risks in the
global economy and equity and credit markets and their potential
impact on our ability to pay down debt in the future and/or
refinance at suitable rates, in a timely manner, or at all; risks
and costs associated with increased leverage from the M&M
Acquisition, including increased interest expense and potential
reduction of business and strategic flexibility; the ability to
maintain plant utilization rates and to implement planned capacity
additions, expansions and maintenance; the ability to reduce or
maintain current levels of production costs and to improve
productivity by implementing technological improvements to existing
plants; increased price competition and the introduction of
competing products by other companies; the ability to identify
desirable potential acquisition or divestiture opportunities and to
complete such transactions, including obtaining regulatory
approvals, consistent with the Company's strategy; market
acceptance of our products and technology; compliance and other
costs and potential disruption or interruption of production or
operations due to accidents, interruptions in sources of raw
materials, transportation, logistics or supply chain disruptions,
cybersecurity incidents, terrorism or political unrest, public
health crises, or other unforeseen events or delays in construction
or operation of facilities, including as a result of geopolitical
conditions, the direct or indirect consequences of acts of war or
conflict (such as the Russia-Ukraine conflict or conflicts in the
Middle East) 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, anti-dumping and
countervailing duties, 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; 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, and the success of our deleveraging efforts, as well as
any changes to our credit ratings; changes in currency exchange
rates and interest rates; tax rates and changes thereto; and
various other factors discussed from time to time in the Company's
filings with the Securities and Exchange Commission.
Any forward-looking statement speaks only as of the date on
which it is made, and the Company undertakes no obligation to
update any forward-looking statements to reflect events or
circumstances after the date on which it is made or to reflect the
occurrence of anticipated or unanticipated events or
circumstances.
Non-GAAP Financial Measures
Presentation
This document presents the Company's two business segments,
Engineered Materials and the Acetyl Chain.
Use of Non-US GAAP Financial Information
This release uses the following Non-US GAAP measures: adjusted
EBIT, adjusted EBIT margin, operating EBITDA, operating EBITDA
margin, adjusted earnings per share and free cash flow. These
measures are not recognized in accordance with US GAAP and should
not be viewed as an alternative to US GAAP measures of performance
or liquidity. The most directly comparable financial measure
presented in accordance with US GAAP in our consolidated financial
statements for adjusted EBIT and operating EBITDA is net earnings
(loss) attributable to Celanese Corporation; for adjusted EBIT
margin is operating margin; for operating EBITDA margin is
operating margin; for adjusted earnings per share is earnings
(loss) from continuing operations attributable to Celanese
Corporation per common share-diluted; and for free cash flow is net
cash provided by (used in) operations.
Definitions of Non-US GAAP Financial Measures
- Adjusted EBIT is a performance measure used by the Company and
is defined by the Company as net earnings (loss) attributable to
Celanese Corporation, plus (earnings) loss from discontinued
operations, less interest income, plus interest expense, plus
refinancing expense and taxes, and further adjusted for Certain
Items (refer to Table 8 of our Non-US GAAP Financial Measures and
Supplemental Information document). We do not provide
reconciliations for adjusted EBIT on a forward-looking basis
(including those contained in this document) when we are unable to
provide a meaningful or accurate calculation or estimation of
reconciling items and the information is not available without
unreasonable effort. This is due to the inherent difficulty of
forecasting the timing and amount of Certain Items, such as
mark-to-market pension gains and losses, that have not yet
occurred, are out of our control and/or cannot be reasonably
predicted. For the same reasons, we are unable to address the
probable significance of the unavailable information. Adjusted EBIT
margin is defined by the Company as adjusted EBIT divided by net
sales.
- Operating EBITDA is a performance measure used by the Company
and is defined by the Company as net earnings (loss) attributable
to Celanese Corporation, plus (earnings) loss from discontinued
operations, less interest income, plus interest expense, plus
refinancing expense, taxes and depreciation and amortization, and
further adjusted for Certain Items, which Certain Items include
accelerated depreciation and amortization expense. Operating EBITDA
is equal to adjusted EBIT plus depreciation and amortization. We do
not provide reconciliations for operating EBITDA 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. Operating
EBITDA margin is defined by the Company as operating EBITDA divided
by net sales.
- Adjusted earnings per share is a performance measure used by
the Company and is defined by the Company as earnings (loss) from
continuing operations attributable to Celanese Corporation,
adjusted for income tax (provision) benefit, Certain Items, and
refinancing and related expenses, divided by the number of basic
common shares and dilutive restricted stock units and stock options
calculated using the treasury method. We do not provide
reconciliations for adjusted earnings per share on a
forward-looking basis (including those contained in this document)
when we are unable to provide a meaningful or accurate calculation
or estimation of reconciling items and the information is not
available without unreasonable effort. This is due to the inherent
difficulty of forecasting the timing and amount of Certain Items,
such as mark-to-market pension gains and losses, that have not yet
occurred, are out of our control and/or cannot be reasonably
predicted. For the same reasons, we are unable to address the
probable significance of the unavailable information. Note: The
income tax expense (benefit) on Certain Items ("Non-GAAP
adjustments") is determined using the applicable rates in the
taxing jurisdictions in which the Non-GAAP adjustments occurred and
includes both current and deferred income tax expense (benefit).
The income tax rate used for adjusted earnings per share
approximates the midpoint in a range of forecasted tax rates for
the year. This range may include certain partial or full-year
forecasted tax opportunities and related costs, where applicable,
and specifically excludes changes in uncertain tax positions,
discrete recognition of GAAP items on a quarterly basis, other
pre-tax items adjusted out of our GAAP earnings for adjusted
earnings per share purposes and changes in management's assessments
regarding the ability to realize deferred tax assets for GAAP. In
determining the adjusted earnings per share tax rate, we reflect
the impact of foreign tax credits when utilized, or expected to be
utilized, absent discrete events impacting the timing of foreign
tax credit utilization. We analyze this rate quarterly and adjust
it if there is a material change in the range of forecasted tax
rates; an updated forecast would not necessarily result in a change
to our tax rate used for adjusted earnings per share. The adjusted
tax rate is an estimate and may differ from the actual tax rate
used for GAAP reporting in any given reporting period. Table 3a of
our Non-US GAAP Financial Measures and Supplemental Information
document summarizes the reconciliation of our estimated GAAP
effective tax rate to the adjusted tax rate. The estimated GAAP
rate excludes discrete recognition of GAAP items due to our
inability to forecast such items. As part of the year-end
reconciliation, we will update the reconciliation of the GAAP
effective tax rate to the adjusted tax rate for actual
results.
- Free cash flow is a liquidity measure used by the Company and
is defined by the Company as net cash provided by (used in)
operations, less capital expenditures on property, plant and
equipment, and adjusted for contributions from or distributions to
our noncontrolling interest joint ventures. We do not provide
reconciliations for free cash flow on a forward-looking basis
(including those contained in this document) when we are unable to
provide a meaningful or accurate calculation or estimation of
reconciling items and the information is not available without
unreasonable effort. This is due to the inherent difficulty of
forecasting the timing and amount of items such as working capital
changes, fluctuations in foreign currency exchange rates, the
impact and timing of potential acquisitions and divestitures, and
other structural changes, that have not yet occurred, are out of
our control and/or cannot be reasonably predicted. For the same
reasons, we are unable to address the probable significance of the
unavailable information.
Reconciliation of Non-US GAAP Financial
Measures
Reconciliations of the Non-US GAAP financial measures used in
this press release to the comparable US GAAP financial measure,
together with information about the purposes and uses of Non-US
GAAP financial measures, are included in our Non-US GAAP Financial
Measures and Supplemental Information document filed as an exhibit
to our Current Report on Form 8-K filed with the SEC on or about
February 18, 2025 and also available on our website at
investors.celanese.com under Financial Information/Financial
Document Library.
Results Unaudited
The results in this document, together with the adjustments made
to present the results on a comparable basis, have not been audited
and are based on internal financial data furnished to management.
Quarterly results should not be taken as an indication of the
results of operations to be reported for any subsequent period or
for the full fiscal year.
Supplemental Information
Additional information about our prior period performance is
included in our Quarterly Reports on Form 10-Q and in our Non-US
GAAP Financial Measures and Supplemental Information document.
Consolidated Statements of Operations -
Unaudited
Three Months Ended
December 31,
2024
September 30,
2024
December 31,
2023
(In $ millions, except share
and per share data)
Net sales
2,370
2,648
2,569
Cost of sales
(1,831
)
(2,026
)
(1,956
)
Gross profit
539
622
613
Selling, general and administrative
expenses
(262
)
(248
)
(272
)
Amortization of intangible assets
(40
)
(40
)
(40
)
Research and development expenses
(31
)
(32
)
(32
)
Other (charges) gains, net
(1,621
)
(61
)
(18
)
Foreign exchange gain (loss), net
12
10
11
Gain (loss) on disposition of businesses
and assets, net
(2
)
(3
)
(3
)
Operating profit (loss)
(1,405
)
248
259
Equity in net earnings (loss) of
affiliates
39
51
52
Non-operating pension and other
postretirement employee benefit (expense) income
(27
)
3
(67
)
Interest expense
(164
)
(169
)
(178
)
Refinancing expense
—
—
—
Interest income
5
5
12
Dividend income - equity investments
33
30
31
Other income (expense), net
—
15
23
Earnings (loss) from continuing operations
before tax
(1,519
)
183
132
Income tax (provision) benefit
(387
)
(61
)
575
Earnings (loss) from continuing
operations
(1,906
)
122
707
Earnings (loss) from operation of
discontinued operations
(6
)
(3
)
(8
)
Income tax (provision) benefit from
discontinued operations
1
1
2
Earnings (loss) from discontinued
operations
(5
)
(2
)
(6
)
Net earnings (loss)
(1,911
)
120
701
Net (earnings) loss attributable to
noncontrolling interests
(3
)
(4
)
(3
)
Net earnings (loss) attributable to
Celanese Corporation
(1,914
)
116
698
Amounts attributable to Celanese
Corporation
Earnings (loss) from continuing
operations
(1,909
)
118
704
Earnings (loss) from discontinued
operations
(5
)
(2
)
(6
)
Net earnings (loss)
(1,914
)
116
698
Earnings (loss) per common share -
basic
Continuing operations
(17.45
)
1.08
6.46
Discontinued operations
(0.05
)
(0.02
)
(0.05
)
Net earnings (loss) - basic
(17.50
)
1.06
6.41
Earnings (loss) per common share -
diluted
Continuing operations
(17.45
)
1.08
6.43
Discontinued operations
(0.05
)
(0.02
)
(0.06
)
Net earnings (loss) - diluted
(17.50
)
1.06
6.37
Weighted average shares (in millions)
Basic
109.4
109.3
109.0
Diluted
109.4
109.5
109.5
Consolidated Statements of Operations -
Unaudited
Year Ended December
31,
2024
2023
(In $ millions, except share
and per share data)
Net sales.
10,280
10,940
Cost of sales
(7,924
)
(8,337
)
Gross profit
2,356
2,603
Selling, general and administrative
expenses
(1,030
)
(1,075
)
Amortization of intangible assets
(159
)
(164
)
Research and development expenses
(130
)
(146
)
Other (charges) gains, net
(1,744
)
(68
)
Foreign exchange gain (loss), net
24
32
Gain (loss) on disposition of businesses
and assets, net
(14
)
505
Operating profit (loss)
(697
)
1,687
Equity in net earnings (loss) of
affiliates
196
102
Non-operating pension and other
postretirement employee benefit (expense) income
(20
)
(69
)
Interest expense
(676
)
(720
)
Refinancing expense
—
(7
)
Interest income
33
39
Dividend income - equity investments
128
126
Other income (expense), net
40
25
Earnings (loss) from continuing operations
before tax
(996
)
1,183
Income tax (provision) benefit
(510
)
790
Earnings (loss) from continuing
operations
(1,506
)
1,973
Earnings (loss) from operation of
discontinued operations
(10
)
(12
)
Income tax (provision) benefit from
discontinued operations
2
3
Earnings (loss) from discontinued
operations
(8
)
(9
)
Net earnings (loss)
(1,514
)
1,964
Net (earnings) loss attributable to
noncontrolling interests
(8
)
(4
)
Net earnings (loss) attributable to
Celanese Corporation
(1,522
)
1,960
Amounts attributable to Celanese
Corporation
Earnings (loss) from continuing
operations
(1,514
)
1,969
Earnings (loss) from discontinued
operations
(8
)
(9
)
Net earnings (loss)
(1,522
)
1,960
Earnings (loss) per common share -
basic
Continuing operations
(13.86
)
18.09
Discontinued operations
(0.07
)
(0.08
)
Net earnings (loss) - basic
(13.93
)
18.01
Earnings (loss) per common share -
diluted
Continuing operations
(13.86
)
18.00
Discontinued operations
(0.07
)
(0.08
)
Net earnings (loss) - diluted
(13.93
)
17.92
Weighted average shares (in millions)
Basic
109.3
108.8
Diluted
109.3
109.4
Consolidated Balance Sheets -
Unaudited
As of
December 31,
2024
As of
December 31,
2023
(In $ millions)
ASSETS
Current Assets
Cash and cash equivalents
962
1,805
Trade receivables - third party and
affiliates, net
1,121
1,243
Non-trade receivables, net
493
541
Inventories
2,284
2,357
Other assets
285
272
Total current assets
5,145
6,218
Investments in affiliates
1,217
1,220
Property, plant and equipment, net
5,273
5,584
Operating lease right-of-use assets
388
422
Deferred income taxes
1,251
1,677
Other assets
555
524
Goodwill
5,387
6,977
Intangible assets, net
3,641
3,975
Total assets
22,857
26,597
LIABILITIES AND EQUITY
Current Liabilities
Short-term borrowings and current
installments of long-term debt - third party and affiliates
1,501
1,383
Trade payables - third party and
affiliates
1,228
1,510
Other liabilities
1,120
1,154
Income taxes payable
4
25
Total current liabilities
3,853
4,072
Long-term debt, net of unamortized
deferred financing costs
11,078
12,301
Deferred income taxes
933
999
Uncertain tax positions
286
300
Benefit obligations
396
457
Operating lease liabilities
294
325
Other liabilities
408
591
Commitments and Contingencies
Shareholders' Equity
Treasury stock, at cost
(5,486
)
(5,488
)
Additional paid-in capital
409
394
Retained earnings
11,100
12,929
Accumulated other comprehensive income
(loss), net
(848
)
(744
)
Total Celanese Corporation shareholders'
equity
5,175
7,091
Noncontrolling interests
434
461
Total equity
5,609
7,552
Total liabilities and equity
22,857
26,597
Celanese Corporation (NYSE: CE):
Non-US GAAP Financial
Measures and Supplemental Information
February 18, 2025
In this document, the terms the "Company," "we" and "our" refer
to Celanese Corporation and its subsidiaries on a consolidated
basis.
Purpose
The purpose of this document is to provide information of
interest to investors, analysts and other parties including
supplemental financial information and reconciliations and other
information concerning our use of non-US GAAP financial measures.
This document is updated quarterly.
Presentation
This document presents the Company's two business segments,
Engineered Materials and the Acetyl Chain.
Use of Non-US GAAP Financial Measures
From time to time, management may publicly disclose certain
numerical "non-GAAP financial measures" in the course of our
earnings releases, financial presentations, earnings conference
calls, investor and analyst meetings and otherwise. For these
purposes, the Securities and Exchange Commission ("SEC") defines a
"non-GAAP financial measure" as a numerical measure of historical
or future financial performance, financial position or cash flows
that excludes amounts, or is subject to adjustments that
effectively exclude amounts, included in the most directly
comparable measure calculated and presented in accordance with US
GAAP, and vice versa for measures that include amounts, or are
subject to adjustments that effectively include amounts, that are
excluded from the most directly comparable US GAAP measure so
calculated and presented. For these purposes, "GAAP" refers to
generally accepted accounting principles in the United States.
Non-GAAP financial measures disclosed by management are provided
as additional information to investors, analysts and other parties
because the Company believes them to be important supplemental
measures for assessing our financial and operating results and as a
means to evaluate our financial condition and period-to-period
comparisons. These non-GAAP financial measures should be viewed as
supplemental to, and should not be considered in isolation or as
alternatives to, net earnings (loss), operating profit (loss),
operating margin, cash flow from operating activities (together
with cash flow from investing and financing activities), earnings
per share or any other US GAAP financial measure. These non-GAAP
financial measures should be considered within the context of our
complete audited and unaudited financial results for the given
period, which are available on the Financial Information/Financial
Document Library page of our website, investors.celanese.com. The
definition and method of calculation of the non-GAAP financial
measures used herein may be different from other companies' methods
for calculating measures with the same or similar titles.
Investors, analysts and other parties should understand how another
company calculates such non-GAAP financial measures before
comparing the other company's non-GAAP financial measures to any of
our own. These non-GAAP financial measures may not be indicative of
the historical operating results of the Company nor are they
intended to be predictive or projections of future results.
Pursuant to the requirements of SEC Regulation G, whenever we
refer to a non-GAAP financial measure, we will also present in this
document, in the presentation itself or on a Form 8-K in connection
with the presentation on the Financial Information/Financial
Document Library page of our website, investors.celanese.com, to
the extent practicable, the most directly comparable financial
measure calculated and presented in accordance with GAAP, along
with a reconciliation of the differences between the non-GAAP
financial measure we reference and such comparable GAAP financial
measure.
This document includes definitions and reconciliations of
non-GAAP financial measures used from time to time by the
Company.
Specific Measures Used
This document provides information about the following non-GAAP
measures: adjusted EBIT, adjusted EBIT margin, operating EBITDA,
operating EBITDA margin, operating profit (loss) attributable to
Celanese Corporation, adjusted earnings per share, net debt, free
cash flow and return on invested capital (adjusted). The most
directly comparable financial measure presented in accordance with
US GAAP in our consolidated financial statements for adjusted EBIT
and operating EBITDA is net earnings (loss) attributable to
Celanese Corporation; for adjusted EBIT margin and operating EBITDA
margin is operating margin; for operating profit (loss)
attributable to Celanese Corporation is operating profit (loss);
for adjusted earnings per share is earnings (loss) from continuing
operations attributable to Celanese Corporation per common
share-diluted; for net debt is total debt; for free cash flow is
net cash provided by (used in) operations; and for return on
invested capital (adjusted) is net earnings (loss) attributable to
Celanese Corporation divided by the sum of the average of beginning
and end of the year short- and long-term debt and Celanese
Corporation shareholders' equity.
Definitions
- Adjusted EBIT is a performance measure used by the Company and
is defined by the Company as net earnings (loss) attributable to
Celanese Corporation, plus (earnings) loss from discontinued
operations, less interest income, plus interest expense, plus
refinancing expense and taxes, and further adjusted for Certain
Items (refer to Table 8). We believe that adjusted EBIT provides
transparent and useful information to management, investors,
analysts and other parties in evaluating and assessing our primary
operating results from period-to-period after removing the impact
of unusual, non-operational or restructuring-related activities
that affect comparability. Our management recognizes that adjusted
EBIT has inherent limitations because of the excluded items.
Adjusted EBIT is one of the measures management uses for planning
and budgeting, monitoring and evaluating financial and operating
results and as a performance metric in the Company's incentive
compensation plan. We do not provide reconciliations for adjusted
EBIT on a forward-looking basis (including those contained in this
document) when we are unable to provide a meaningful or accurate
calculation or estimation of reconciling items and the information
is not available without unreasonable effort. This is due to the
inherent difficulty of forecasting the timing and amount of Certain
Items, such as mark-to-market pension gains and losses, that have
not yet occurred, are out of our control and/or cannot be
reasonably predicted. For the same reasons, we are unable to
address the probable significance of the unavailable information.
Adjusted EBIT margin is defined by the Company as adjusted EBIT
divided by net sales. Adjusted EBIT margin has the same uses and
limitations as adjusted EBIT.
- Operating EBITDA is a performance measure used by the Company
and is defined by the Company as net earnings (loss) attributable
to Celanese Corporation, plus (earnings) loss from discontinued
operations, less interest income, plus interest expense, plus
refinancing expense, taxes and depreciation and amortization, and
further adjusted for Certain Items, which Certain Items include
accelerated depreciation and amortization expense. Operating EBITDA
is equal to adjusted EBIT plus depreciation and amortization. We
believe that operating EBITDA provides transparent and useful
information to investors, analysts and other parties in evaluating
our operating performance relative to our peer companies. We do not
provide reconciliations for operating EBITDA 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. Operating
EBITDA margin is defined by the Company as operating EBITDA divided
by net sales. Operating EBITDA margin has the same uses and
limitations as operating EBITDA.
- Operating profit (loss) attributable to Celanese Corporation is
defined by the Company as operating profit (loss), less earnings
(loss) attributable to noncontrolling interests ("NCI"). We believe
that operating profit (loss) attributable to Celanese Corporation
provides transparent and useful information to management,
investors, analysts and other parties in evaluating our core
operational performance. Operating margin attributable to Celanese
Corporation is defined by the Company as operating profit (loss)
attributable to Celanese Corporation divided by net sales.
Operating margin attributable to Celanese Corporation has the same
uses and limitations as operating profit (loss) attributable to
Celanese Corporation.
- Adjusted earnings per share is a performance measure used by
the Company and is defined by the Company as earnings (loss) from
continuing operations attributable to Celanese Corporation,
adjusted for income tax (provision) benefit, Certain Items, and
refinancing and related expenses, divided by the number of basic
common shares and dilutive restricted stock units and stock options
calculated using the treasury method. We believe that adjusted
earnings per share provides transparent and useful information to
management, investors, analysts and other parties in evaluating and
assessing our primary operating results from period-to-period after
removing the impact of the above stated items that affect
comparability and as a performance metric in the Company's
incentive compensation plan. We do not provide reconciliations for
adjusted earnings per share on a forward-looking basis (including
those contained in this document) when we are unable to provide a
meaningful or accurate calculation or estimation of reconciling
items and the information is not available without unreasonable
effort. This is due to the inherent difficulty of forecasting the
timing and amount of Certain Items, such as mark-to-market pension
gains and losses, that have not yet occurred, are out of our
control and/or cannot be reasonably predicted. For the same
reasons, we are unable to address the probable significance of the
unavailable information. Note: The income tax expense (benefit) on
Certain Items ("Non-GAAP adjustments") is determined using the
applicable rates in the taxing jurisdictions in which the Non-GAAP
adjustments occurred and includes both current and deferred income
tax expense (benefit). The income tax rate used for adjusted
earnings per share approximates the midpoint in a range of
forecasted tax rates for the year. This range may include certain
partial or full-year forecasted tax opportunities and related
costs, where applicable, and specifically excludes changes in
uncertain tax positions, discrete recognition of GAAP items on a
quarterly basis, other pre-tax items adjusted out of our GAAP
earnings for adjusted earnings per share purposes and changes in
management's assessments regarding the ability to realize deferred
tax assets for GAAP. In determining the adjusted earnings per share
tax rate, we reflect the impact of foreign tax credits when
utilized, or expected to be utilized, absent discrete events
impacting the timing of foreign tax credit utilization. We analyze
this rate quarterly and adjust it if there is a material change in
the range of forecasted tax rates; an updated forecast would not
necessarily result in a change to our tax rate used for adjusted
earnings per share. The adjusted tax rate is an estimate and may
differ from the actual tax rate used for GAAP reporting in any
given reporting period. Table 3a summarizes the reconciliation of
our estimated GAAP effective tax rate to the adjusted tax rate. The
estimated GAAP rate excludes discrete recognition of GAAP items due
to our inability to forecast such items. As part of the year-end
reconciliation, we will update the reconciliation of the GAAP
effective tax rate to the adjusted tax rate for actual
results.
- Free cash flow is a liquidity measure used by the Company and
is defined by the Company as net cash provided by (used in)
operations, less capital expenditures on property, plant and
equipment, and adjusted for contributions from or distributions to
our NCI joint ventures. We believe that free cash flow provides
useful information to management, investors, analysts and other
parties in evaluating the Company's liquidity and credit quality
assessment because it provides an indication of the long-term cash
generating ability of our business. Although we use free cash flow
as a measure to assess the liquidity generated by our business, the
use of free cash flow has important limitations, including that
free cash flow does not reflect the cash requirements necessary to
service our indebtedness, lease obligations, unconditional purchase
obligations or pension and postretirement funding obligations. Free
cash flow is not a measure of cash available for discretionary
expenditures since the Company has certain debt service and finance
lease payments that are not deducted from that measure. We do not
provide reconciliations for free cash flow on a forward-looking
basis when we are unable to provide a meaningful or accurate
calculation or estimation of reconciling items and the information
is not available without unreasonable effort. This is due to the
inherent difficulty of forecasting the timing and amount of items
such as working capital changes, fluctuations in foreign currency
exchange rates, the impact and timing of potential acquisitions and
divestitures, and other structural changes, that have not yet
occurred, are out of our control and/or cannot be reasonably
predicted. For the same reasons, we are unable to address the
probable significance of the unavailable information.
- Net debt is defined by the Company as total debt less cash and
cash equivalents. We believe that net debt provides useful
information to management, investors, analysts and other parties in
evaluating changes to the Company's capital structure and credit
quality assessment.
- Return on invested capital (adjusted) is defined by the Company
as adjusted EBIT, tax effected using the adjusted tax rate, divided
by the sum of the average of beginning and end of the year short-
and long-term debt and Celanese Corporation shareholders' equity.
We believe that return on invested capital (adjusted) provides
useful information to management, investors, analysts and other
parties in order to assess our income generation from the point of
view of our shareholders and creditors who provide us with capital
in the form of equity and debt and whether capital invested in the
Company yields competitive returns.
Supplemental Information
Supplemental Information we believe to be of interest to
investors, analysts and other parties includes the following:
- Net sales for each of our business segments and the percentage
increase or decrease in net sales attributable to price, volume,
currency and other factors for each of our business segments.
- Cash dividends received from our equity investments.
- For those consolidated ventures in which the Company owns or is
exposed to less than 100% of the economics, the outside
shareholders' interests are shown as NCI. Amounts referred to as
"attributable to Celanese Corporation" are net of any applicable
NCI.
Results Unaudited
The results in this document, together with the adjustments made
to present the results on a comparable basis, have not been audited
and are based on internal financial data furnished to management.
Quarterly results should not be taken as an indication of the
results of operations to be reported for any subsequent period or
for the full fiscal year.
Table 1 Celanese Adjusted EBIT and Operating EBITDA -
Reconciliation of Non-GAAP Measures - Unaudited
2024
Q4 '24
Q3 '24
Q2 '24
Q1 '24
2023
Q4 '23
Q3 '23
Q2 '23
Q1 '23
(In $ millions)
Net earnings (loss) attributable to
Celanese Corporation
(1,522
)
(1,914
)
116
155
121
1,960
698
951
220
91
(Earnings) loss from discontinued
operations
8
5
2
1
—
9
6
1
(1
)
3
Interest income
(33
)
(5
)
(5
)
(10
)
(13
)
(39
)
(12
)
(12
)
(7
)
(8
)
Interest expense
676
164
169
174
169
720
178
178
182
182
Refinancing expense
—
—
—
—
—
7
—
7
—
—
Income tax provision (benefit)
510
387
61
29
33
(790
)
(575
)
(236
)
(4
)
25
Certain Items attributable to Celanese
Corporation (Table 8)
2,009
1,696
114
102
97
(114
)
139
(438
)
54
131
Adjusted EBIT
1,648
333
457
451
407
1,753
434
451
444
424
Depreciation and amortization
expense(1)
728
184
187
181
176
691
174
173
172
172
Operating EBITDA
2,376
517
644
632
583
2,444
608
624
616
596
2024
Q4 '24
Q3 '24
Q2 '24
Q1 '24
2023
Q4 '23
Q3 '23
Q2 '23
Q1 '23
(In $ millions)
Engineered Materials
73
1
16
11
45
15
15
—
—
—
Acetyl Chain
—
—
—
—
—
—
—
—
—
—
Other Activities(2)
—
—
—
—
—
—
—
—
—
—
Accelerated depreciation and
amortization expense
73
1
16
11
45
15
15
—
—
—
Depreciation and amortization
expense(1)
728
184
187
181
176
691
174
173
172
172
Total depreciation and amortization
expense
801
185
203
192
221
706
189
173
172
172
_________________________________
(1)
Excludes accelerated depreciation
and amortization expense as detailed in the table above, which
amounts are included in Certain Items above.
(2)
Other Activities includes
corporate Selling, general and administrative ("SG&A")
expenses, results of captive insurance companies and certain
components of net periodic benefit cost (interest cost, expected
return on plan assets and net actuarial gains and losses).
Table 2 - Supplemental Segment Data and Reconciliation of
Segment Adjusted EBIT and Operating EBITDA - Non-GAAP Measures -
Unaudited
2024
Q4 '24
Q3 '24
Q2 '24
Q1 '24
2023
Q4 '23
Q3 '23
Q2 '23
Q1 '23
(In $ millions, except
percentages)
Operating Profit (Loss) / Operating
Margin
Engineered Materials
(1,179
)
(21.0
)%
(1,508
)
(117.7
)%
102
6.9
%
138
9.4
%
89
6.5
%
1,083
17.6
%
122
8.7
%
691
45.2
%
158
10.0
%
112
6.9
%
Acetyl Chain
951
20.0
%
216
19.5
%
239
20.1
%
242
20.1
%
254
20.1
%
1,109
22.7
%
264
22.4
%
272
22.3
%
295
23.9
%
278
22.2
%
Other Activities(1)
(469
)
(113
)
(93
)
(130
)
(133
)
(505
)
(127
)
(121
)
(118
)
(139
)
Total
(697
)
(6.8
)%
(1,405
)
(59.3
)%
248
9.4
%
250
9.4
%
210
8.0
%
1,687
15.4
%
259
10.1
%
842
30.9
%
335
12.0
%
251
8.8
%
Less: Net Earnings (Loss) Attributable to
NCI for Engineered Materials
(1
)
2
2
(4
)
(1
)
(3
)
1
(2
)
(2
)
—
Less: Net Earnings (Loss) Attributable to
NCI for Acetyl Chain
9
1
2
2
4
7
2
—
3
2
Operating Profit (Loss) Attributable to
Celanese Corporation
(705
)
(6.9
)%
(1,408
)
(59.4
)%
244
9.2
%
252
9.5
%
207
7.9
%
1,683
15.4
%
256
10.0
%
844
31.0
%
334
11.9
%
249
8.7
%
Operating Profit (Loss) / Operating
Margin Attributable to Celanese Corporation
Engineered Materials
(1,178
)
(21.0
)%
(1,510
)
(117.9
)%
100
6.8
%
142
9.7
%
90
6.5
%
1,086
17.7
%
121
8.6
%
693
45.4
%
160
10.1
%
112
6.9
%
Acetyl Chain
942
19.8
%
215
19.4
%
237
19.9
%
240
20.0
%
250
19.8
%
1,102
22.6
%
262
22.2
%
272
22.3
%
292
23.7
%
276
22.1
%
Other Activities(1)
(469
)
(113
)
(93
)
(130
)
(133
)
(505
)
(127
)
(121
)
(118
)
(139
)
Total
(705
)
(6.9
)%
(1,408
)
(59.4
)%
244
9.2
%
252
9.5
%
207
7.9
%
1,683
15.4
%
256
10.0
%
844
31.0
%
334
11.9
%
249
8.7
%
Equity Earnings and Dividend Income,
Other Income (Expense) Attributable to Celanese Corporation
Engineered Materials
178
33
46
49
50
87
45
12
20
10
Acetyl Chain
138
35
34
33
36
132
33
33
32
34
Other Activities(1)
48
4
16
13
15
34
28
1
6
(1
)
Total
364
72
96
95
101
253
106
46
58
43
Non-Operating Pension and Other
Post-Retirement Employee Benefit (Expense) Income Attributable to
Celanese Corporation
Engineered Materials
8
8
—
—
—
(1
)
(1
)
—
—
—
Acetyl Chain
—
—
—
—
—
—
—
—
—
—
Other Activities(1)
(28
)
(35
)
3
2
2
(68
)
(66
)
(1
)
(2
)
1
Total
(20
)
(27
)
3
2
2
(69
)
(67
)
(1
)
(2
)
1
Certain Items Attributable to Celanese
Corporation (Table 8)
Engineered Materials
1,851
1,625
91
74
61
(324
)
34
(476
)
25
93
Acetyl Chain
22
3
5
4
10
24
5
5
8
6
Other Activities(1)
136
68
18
24
26
186
100
33
21
32
Total
2,009
1,696
114
102
97
(114
)
139
(438
)
54
131
Adjusted EBIT / Adjusted EBIT
Margin
Engineered Materials
859
15.3
%
156
12.2
%
237
16.0
%
265
18.1
%
201
14.6
%
848
13.8
%
199
14.2
%
229
15.0
%
205
12.9
%
215
13.2
%
Acetyl Chain
1,102
23.1
%
253
22.8
%
276
23.2
%
277
23.0
%
296
23.5
%
1,258
25.8
%
300
25.4
%
310
25.4
%
332
26.9
%
316
25.3
%
Other Activities(1)
(313
)
(76
)
(56
)
(91
)
(90
)
(353
)
(65
)
(88
)
(93
)
(107
)
Total
1,648
16.0
%
333
14.1
%
457
17.3
%
451
17.0
%
407
15.6
%
1,753
16.0
%
434
16.9
%
451
16.6
%
444
15.9
%
424
14.9
%
___________________________
(1)
Other Activities includes
corporate SG&A expenses, results of captive insurance companies
and certain components of net periodic benefit cost (interest cost,
expected return on plan assets and net actuarial gains and
losses).
Table 2 - Supplemental Segment Data and
Reconciliation of Segment Adjusted EBIT and Operating EBITDA -
Non-GAAP Measures - Unaudited (cont.)
2024
Q4 '24
Q3 '24
Q2 '24
Q1 '24
2023
Q4 '23
Q3 '23
Q2 '23
Q1 '23
(In $ millions, except
percentages)
Depreciation and Amortization
Expense(1)
Engineered Materials
437
114
111
110
102
447
112
111
112
112
Acetyl Chain
244
63
63
61
57
217
54
55
54
54
Other Activities(2)
47
7
13
10
17
27
8
7
6
6
Total
728
184
187
181
176
691
174
173
172
172
Operating EBITDA / Operating EBITDA
Margin
Engineered Materials
1,296
23.1
%
270
21.1
%
348
23.5
%
375
25.6
%
303
22.0
%
1,295
21.1
%
311
22.1
%
340
22.3
%
317
20.0
%
327
20.1
%
Acetyl Chain
1,346
28.3
%
316
28.5
%
339
28.5
%
338
28.1
%
353
28.0
%
1,475
30.2
%
354
30.0
%
365
29.9
%
386
31.3
%
370
29.6
%
Other Activities(2)
(266
)
(69
)
(43
)
(81
)
(73
)
(326
)
(57
)
(81
)
(87
)
(101
)
Total
2,376
23.1
%
517
21.8
%
644
24.3
%
632
23.8
%
583
22.3
%
2,444
22.3
%
608
23.7
%
624
22.9
%
616
22.0
%
596
20.9
%
___________________________
(1)
Excludes accelerated depreciation
and amortization expense, which amounts are included in Certain
Items above. See Table 1 for details.
(2)
Other Activities includes
corporate SG&A expenses, results of captive insurance companies
and certain components of net periodic benefit cost (interest cost,
expected return on plan assets and net actuarial gains and
losses).
Table 3 Adjusted Earnings (Loss) per Share -
Reconciliation of a Non-GAAP Measure - Unaudited
2024
Q4 '24
Q3 '24
Q2 '24
Q1 '24
2023
Q4 '23
Q3 '23
Q2 '23
Q1 '23
per share
per share
per share
per share
per share
per share
per share
per share
per share
per share
(In $ millions, except per
share data)
Earnings (loss) from continuing operations
attributable to Celanese Corporation
(1,514
)
(13.86
)
(1,909
)
(17.45
)
118
1.08
156
1.42
121
1.10
1,969
18.00
704
6.43
952
8.70
219
2.00
94
0.86
Income tax provision (benefit)
510
387
61
29
33
(790
)
(575
)
(236
)
(4
)
25
Earnings (loss) from continuing operations
before tax
(1,004
)
(1,522
)
179
185
154
1,179
129
716
215
119
Certain Items attributable to Celanese
Corporation (Table 8)
2,009
1,696
114
102
97
(114
)
139
(438
)
54
131
Refinancing and related expenses
—
—
—
—
—
7
—
7
—
—
Adjusted earnings (loss) from continuing
operations before tax
1,005
174
293
287
251
1,072
268
285
269
250
Income tax (provision) benefit on adjusted
earnings(1)
(90
)
(15
)
(26
)
(26
)
(23
)
(96
)
(23
)
(11
)
(32
)
(30
)
Adjusted earnings (loss) from
continuing operations(2)
915
8.37
159
1.45
267
2.44
261
2.38
228
2.08
976
8.92
245
2.24
274
2.50
237
2.17
220
2.01
Diluted shares (in
millions)(3)
Weighted average shares outstanding
109.3
109.4
109.3
109.3
109.1
108.8
109.0
108.9
108.9
108.6
Incremental shares attributable to equity
awards
—
—
0.2
0.2
0.4
0.6
0.5
0.5
0.4
0.6
Total diluted shares
109.3
109.4
109.5
109.5
109.5
109.4
109.5
109.4
109.3
109.2
___________________________
(1)
Calculated using adjusted
effective tax rates (Table 3a) as follows:
2024
Q4 '24
Q3 '24
Q2 '24
Q1 '24
2023
Q4 '23
Q3 '23
Q2 '23
Q1 '23
Adjusted effective tax rate
9
9
9
9
9
9
9
4
12
12
(2)
Excludes the immediate recognition of
actuarial gains and losses and the impact of actual vs. expected
plan asset returns.
Actual Plan Asset
Returns
Expected Plan Asset
Returns
(In percentages)
Q4 '24 & 2024
2.5
5.3
Q4 '23 & 2023
8.1
5.2
(3)
Potentially dilutive shares are included
in the adjusted earnings per share calculation when adjusted
earnings are positive.
Table 3a Adjusted Tax Rate - Reconciliation of a
Non-GAAP Measure - Unaudited
2024
2023
(In percentages)
US GAAP annual effective tax rate
(51
)
(67
)
Discrete quarterly recognition of GAAP
items(1)
1
2
Tax impact of other charges and
adjustments(2)
98
(3
)
Changes in valuation allowances, excluding
impact of other charges and adjustments(3)
(40
)
13
Other, includes effect of discrete current
year transactions(4)
1
64
(5)
Adjusted tax rate
9
9
______________________________ Note: As part of the year-end
reconciliation, we updated the reconciliation of the GAAP effective
tax rate for actual results.
(1)
Such as changes in tax laws
(including US tax reform), deferred taxes on outside basis
differences, changes in uncertain tax positions and prior year
audit adjustments.
(2)
Reflects the tax impact on
pre-tax adjustments presented in Certain Items (Table 8), which are
excluded from pre-tax income for adjusted earnings per share
purposes.
(3)
Reflects changes in valuation
allowances related to changes in judgment regarding the
realizability of deferred tax assets or current year operations,
excluding other charges and adjustments.
(4)
Includes tax impacts related to
full-year actual tax opportunities and related costs, as well as
current year realization of U.S. GAAP benefits deferred in prior
years.
(5)
Includes the reversal of certain
U.S. GAAP deferred tax benefits related to non-recurring internal
restructuring transactions related to the M&M acquisition, to
centralize ownership of intellectual property with the business and
to facilitate future deployment of cash to service acquisition
indebtedness. Certain benefits of the internal restructuring will
be realized in future periods for adjusted earnings purposes.
Table 4 Net Sales by Segment - Unaudited
2024
Q4 '24
Q3 '24
Q2 '24
Q1 '24
2023
Q4 '23
Q3 '23
Q2 '23
Q1 '23
(In $ millions)
Engineered Materials
5,607
1,281
1,481
1,467
1,378
6,149
1,406
1,528
1,585
1,630
Acetyl Chain
4,763
1,110
1,190
1,202
1,261
4,884
1,181
1,220
1,233
1,250
Intersegment eliminations(1)
(90
)
(21
)
(23
)
(18
)
(28
)
(93
)
(18
)
(25
)
(23
)
(27
)
Net sales
10,280
2,370
2,648
2,651
2,611
10,940
2,569
2,723
2,795
2,853
___________________________
(1)
Includes intersegment sales primarily
related to the Acetyl Chain.
Table 4a Factors Affecting Segment Net Sales
Sequentially - Unaudited
Three Months Ended December 31, 2024 Compared to Three Months
Ended September 30, 2024
Volume
Price
Currency
Total
(In percentages)
Engineered Materials
(10
)
(3
)
(1
)
(14
)
Acetyl Chain
(4
)
(2
)
(1
)
(7
)
Total Company
(7
)
(2
)
(1
)
(10
)
Three Months Ended September 30, 2024 Compared to Three
Months Ended June 30, 2024
Volume
Price
Currency
Total
(In percentages)
Engineered Materials
—
—
1
1
Acetyl Chain
—
(2
)
1
(1
)
Total Company
—
(1
)
1
—
Three Months Ended June 30, 2024 Compared to Three Months
Ended March 31, 2024
Volume
Price
Currency
Total
(In percentages)
Engineered Materials
7
—
(1
)
6
Acetyl Chain
(1
)
(4
)
—
(5
)
Total Company
4
(2
)
—
2
Three Months Ended March 31, 2024 Compared to Three Months
Ended December 31, 2023
Volume
Price
Currency
Total
(In percentages)
Engineered Materials
(1
)
(1
)
—
(2
)
Acetyl Chain
5
1
1
7
Total Company
2
—
—
2
___________________________
(1)
Includes the effect of the formation of
the Nutrinova joint venture.
Three Months Ended December 31, 2023 Compared to Three Months
Ended September 30, 2023
Volume
Price
Currency
Total
(In percentages)
Engineered Materials
(5
)
(3
)
—
(8
)
(1)
Acetyl Chain
—
(3
)
—
(3
)
Total Company
(3
)
(3
)
—
(6
)
Three Months Ended September 30, 2023 Compared to Three
Months Ended June 30, 2023
Volume
Price
Currency
Total
(In percentages)
Engineered Materials
(1
)
(3
)
—
(4
)
Acetyl Chain
3
(3
)
(1
)
(1
)
Total Company
1
(3
)
(1
)
(3
)
Three Months Ended June 30, 2023 Compared to Three Months
Ended March 31, 2023
Volume
Price
Currency
Total
(In percentages)
Engineered Materials
2
(5
)
—
(3
)
Acetyl Chain
2
(3
)
—
(1
)
Total Company
2
(4
)
—
(2
)
Three Months Ended March 31, 2023 Compared to Three Months
Ended December 31, 2022
Volume
Price
Currency
Total
(In percentages)
Engineered Materials
34
(4
)
2
32
Acetyl Chain
10
(2
)
2
10
Total Company
19
(4
)
2
17
Table 4b Factors Affecting Segment Net Sales Year Over
Year - Unaudited
Three Months Ended December 31, 2024 Compared to Three Months
Ended December 31, 2023
Volume
Price
Currency
Total
(In percentages)
Engineered Materials
(6
)
(3
)
—
(9
)
Acetyl Chain
(2
)
(4
)
—
(6
)
Total Company
(4
)
(4
)
—
(8
)
Three Months Ended September 30, 2024 Compared to Three
Months Ended September 30, 2023
Volume
Price
Currency
Total
(In percentages)
Engineered Materials
(1
)
(2
)
—
(3
)
Acetyl Chain
1
(3
)
—
(2
)
Total Company
—
(3
)
—
(3
)
Three Months Ended June 30, 2024 Compared to Three Months
Ended June 30, 2023
Volume
Price
Currency
Total
(In percentages)
Engineered Materials
(2
)
(4
)
(1
)
(7
)
Acetyl Chain
4
(6
)
(1
)
(3
)
Total Company
1
(5
)
(1
)
(5
)
Three Months Ended March 31, 2024 Compared to Three Months
Ended March 31, 2023
Volume
Price
Currency
Total
(In percentages)
Engineered Materials
(12
)
(2
)
(1
)
(15
)
Acetyl Chain
11
(10
)
—
1
Total Company
(2
)
(5
)
(1
)
(8
)
Three Months Ended December 31, 2023 Compared to Three Months
Ended December 31, 2022
Volume
Price
Currency
Total
(In percentages)
Engineered Materials
21
(8
)
1
14
Acetyl Chain
14
(11
)
1
4
Total Company
18
(10
)
1
9
Three Months Ended September 30, 2023 Compared to Three
Months Ended September 30, 2022
Volume
Price
Currency
Total
(In percentages)
Engineered Materials
75
(12
)
1
64
Acetyl Chain
4
(18
)
1
(13
)
Total Company
33
(16
)
1
18
Three Months Ended June 30, 2023 Compared to Three Months
Ended June 30, 2022
Volume
Price
Currency
Total
(In percentages)
Engineered Materials
75
(8
)
—
67
Acetyl Chain
(2
)
(19
)
—
(21
)
Total Company
27
(15
)
—
12
Three Months Ended March 31, 2023 Compared to Three Months
Ended March 31, 2022
Volume
Price
Currency
Total
(In percentages)
Engineered Materials
80
2
(3
)
79
Acetyl Chain
(9
)
(13
)
(2
)
(24
)
Total Company
23
(8
)
(3
)
12
Table 4c Factors Affecting Segment Net Sales Year Over
Year - Unaudited
Year Ended December 31, 2024 Compared to Year Ended December
31, 2023
Volume
Price
Currency
Total
(In percentages)
Engineered Materials
(5
)
(3
)
(1
)
(9
)
Acetyl Chain
4
(6
)
—
(2
)
Total Company
(1
)
(4
)
(1
)
(6
)
Year Ended December 31, 2023 Compared to Year Ended December
31, 2022
Volume
Price
Currency
Total
(In percentages)
Engineered Materials
54
(1
)
—
53
Acetyl Chain
2
(17
)
—
(15
)
Total Company
23
(10
)
—
13
Table 5 Free Cash Flow - Reconciliation of a Non-GAAP
Measure - Unaudited
2024
Q4 '24
Q3 '24
Q2 '24
Q1 '24
2023
Q4 '23
Q3 '23
Q2 '23
Q1 '23
(In $ millions, except
percentages)
Net cash provided by (used in) investing
activities
(470
)
(128
)
(100
)
(91
)
(151
)
(134
)
(168
)
375
(163
)
(178
)
Net cash provided by (used in) financing
activities
(1,313
)
(189
)
(376
)
(489
)
(259
)
(1,456
)
(240
)
(700
)
(447
)
(69
)
Net cash provided by (used in) operating
activities
966
494
79
292
101
1,899
830
403
762
(96
)
Capital expenditures on property, plant
and equipment
(435
)
(105
)
(88
)
(105
)
(137
)
(568
)
(128
)
(131
)
(145
)
(164
)
Contributions from/(Distributions) to
NCI
(33
)
(8
)
(7
)
(14
)
(4
)
(11
)
—
(4
)
(6
)
(1
)
Free cash flow(1)
498
381
(16
)
173
(40
)
1,320
702
268
611
(261
)
Net sales
10,280
2,370
2,648
2,651
2,611
10,940
2,569
2,723
2,795
2,853
Free cash flow as % of Net
sales
4.8
%
16.1
%
(0.6
)%
6.5
%
(1.5
)%
12.1
%
27.3
%
9.8
%
21.9
%
(9.1
)%
___________________________
(1)
Free cash flow is a liquidity
measure used by the Company and is defined by the Company as net
cash provided by (used in) operating activities, less capital
expenditures on property, plant and equipment, and adjusted for
contributions from or distributions to our NCI joint ventures.
Table 6 Cash Dividends Received - Unaudited
2024
Q4 '24
Q3 '24
Q2 '24
Q1 '24
2023
Q4 '23
Q3 '23
Q2 '23
Q1 '23
(In $ millions)
Dividends from equity method
investments
160
38
26
69
27
157
85
7
25
40
Dividends from equity investments without
readily determinable fair values
128
33
30
31
34
126
31
30
31
34
Total
288
71
56
100
61
283
116
37
56
74
Table 7 Net Debt - Reconciliation of a Non-GAAP
Measure - Unaudited
2024
Q4 '24
Q3 '24
Q2 '24
Q1 '24
2023
Q4 '23
Q3 '23
Q2 '23
Q1 '23
(In $ millions)
Short-term borrowings and current
installments of long-term debt - third party and affiliates
1,501
1,501
1,607
1,977
2,439
1,383
1,383
1,408
1,507
1,386
Long-term debt, net of unamortized
deferred financing costs
11,078
11,078
11,324
11,058
11,018
12,301
12,301
12,291
12,889
13,396
Total debt
12,579
12,579
12,931
13,035
13,457
13,684
13,684
13,699
14,396
14,782
Cash and cash equivalents
(962
)
(962
)
(813
)
(1,185
)
(1,483
)
(1,805
)
(1,805
)
(1,357
)
(1,296
)
(1,167
)
Net debt
11,617
11,617
12,118
11,850
11,974
11,879
11,879
12,342
13,100
13,615
Table 8 Certain Items - Unaudited
The following Certain Items attributable to Celanese Corporation
are included in Net earnings (loss) and are adjustments to non-GAAP
measures:
2024
Q4 '24
Q3 '24
Q2 '24
Q1 '24
2023
Q4 '23
Q3 '23
Q2 '23
Q1 '23
Income Statement
Classification
(In $ millions)
Exit and shutdown costs
236
47
52
69
68
89
33
9
21
26
Cost of sales / SG&A / Other (charges)
gains, net / Gain (loss) on disposition of businesses and assets,
net / Non-operating pension and other postretirement employee
benefit (expense) income
Asset impairments
1,638
1,601
(1)
34
(2)
3
—
15
6
9
—
—
Cost of sales / Other (charges) gains,
net
Impact from plant incidents and natural
disasters
13
3
3
—
7
6
—
—
—
6
Cost of sales
Mergers, acquisitions and dispositions
80
12
17
26
25
195
27
46
23
99
Cost of sales / SG&A
Actuarial (gain) loss on pension and
postretirement plans
27
27
—
—
—
69
69
—
—
—
Cost of sales / SG&A / Non-operating
pension and other postretirement employee benefit (expense)
income
Legal settlements and commercial
disputes
8
6
7
3
(8)
12
4
2
6
—
Cost of sales / SG&A / Other (charges)
gains, net
(Gain) loss on disposition of businesses
and assets
2
—
1
1
—
(510
)
(3
)
(508
)
1
—
Gain (loss) on disposition of businesses
and assets, net
Other
5
—
—
—
5
10
3
4
3
—
Cost of sales / SG&A
Certain Items attributable to Celanese
Corporation
2,009
1,696
114
102
97
(114
)
139
(438
)
54
131
___________________________
(1)
Related to impairment of goodwill
and certain trade names, primarily Zytel®, arising from the our
interim goodwill and indefinite-lived intangible assets impairment
tests.
(2)
Related to impairment of certain
tradenames, primarily Zytel®, in connection with our annual
goodwill and indefinite-lived intangible asset impairment
tests.
Table 9 Return on Invested Capital (Adjusted) -
Presentation of a Non-GAAP Measure - Unaudited
2024
2023
(In $ millions, except
percentages)
(In $ millions, except
percentages)
Net earnings (loss) attributable to
Celanese Corporation
(1,522
)
1,960
Adjusted EBIT (Table 1)
1,648
1,753
Adjusted effective tax rate (Table 3a)
9
%
9
%
Adjusted EBIT tax effected
1,500
1,595
2024
2023
Average
2023
2022
Average
(In $ millions, except
percentages)
Short-term borrowings and current
installments of long-term debt - third parties and affiliates
1,501
1,383
1,442
1,383
1,306
1,345
Long-term debt, net of unamortized
deferred financing costs
11,078
12,301
11,690
12,301
13,373
12,837
Celanese Corporation shareholders'
equity
5,175
7,091
6,133
7,091
5,637
6,364
Invested capital
19,265
20,546
Return on invested capital
(adjusted)
7.8
%
7.8
%
Net earnings (loss) attributable to
Celanese Corporation as a percentage of invested capital
(7.9
)%
9.5
%
View source
version on businesswire.com: https://www.businesswire.com/news/home/20250214151975/en/
Investor Relations Bill Cunningham Phone: +1 302 772 5231
william.cunningham@celanese.com
Media - U.S. Jamaison Schuler 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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