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Actionable news in CE: CELANESE CORPORATION,

Celanese: 222 West Las Colinas Blvd Suite 900N

The following excerpt is from the company's SEC filing.

Irving, Texas 75039

Celanese Corporation Reports Record Quarterly Adjusted Earnings Per Share of

Raises 2016 Outlook Range to

8-10 Percent

Growth in Adjusted Earnings Per Share


April 18, 2016

Celanese Corporation (NYSE: CE), a global technology and specialty materials company, today reported


adjusted earnings per share of

. We were able to generate these strong results in a challenging environment by leveraging the strength of our core operating models and through our commitment to productivity. In Materials Solutions, we continued our momentum of closing new projects that add meaningful value to our customers by combining chemistry with our applications expertise. In the Acetyl Chain, we leveraged our integrated value chain to capture opportunities and maximize value in a challenging and dynamic market environment.



Record adjusted earnings per share of

, an increase of

6 percent

over the prior year

Adjusted EBIT of

$358 million

and margin of

25.5 percent

, both record performances

Record core income and margin performance in Materials Solutions

Free cash flow of

$217 million

, the highest ever first quarter performance

Received U.S. Environmental Protection Agency’s prestigious 2016 ENERGY STAR Partner of the Year Award, which recognizes industrial companies that perform at a superior level of energy management across their organizations

Expanded engineered materials product portfolio with the addition of Nylon 6 and Nylon 6/6 using differentiated technology developed by Celanese

Announced expansion of vinyl acetate ethylene (VAE) portfolio in Nanjing, China, with the addition of Celvolit

149HV. This new offering is available for most general adhesive applications, is formaldehyde-free and provides high viscosity along with excellent heat resistance and adhesion performance

Launched Ateva


ethylene vinyl acetate (EVA) to meet the growing need for stronger, more flexible extrusion coating materials for food packaging and other applications

Three Months Ended

March 31,

December 31,


(In $ millions)

Net Sales

Advanced Engineered Materials

Consumer Specialties

Total Materials Solutions

Industrial Specialties

Acetyl Intermediates


Total Acetyl Chain

Other Activities

Intersegment eliminations

(In $ millions, except per share data)

Operating Profit (Loss) Attributable to Celanese Corporation

Net earnings (loss)

Adjusted EBIT / Total segment income

Operating EBITDA

Diluted EPS - continuing operations

Diluted EPS - total

Adjusted EPS


See "Non-US GAAP Financial Measures" below.

"I am pleased to report strong first quarter performance, with record adjusted earnings of

46 percent

increase versus the prior quarter and a

increase versus the prior year. Segment income was a record at

40 percent

sequentially and

2 percent

year over year, driven by record core income in Materials Solutions and resilient performance across the Acetyl Chain. Segment income margin for the quarter was our highest ever at

basis points sequentially and

basis points year over year driven by record margin performance in Materials Solutions, strong performance in the Acetyl Chain, and benefits of recent broad-based productivity initiatives," said Mark Rohr, chairman and chief executive officer. "Our businesses continue their pace of consistent, strong cash generation with free cash flow of

$217 million

in the first quarter. We improved our balance sheet in the quarter, repaying

$405 million

in short-term borrowings, and finished the quarter with over

$700 million

of cash on hand. Our balance sheet stands in great position to execute our M&A and capital deployment strategies," said Rohr.

Quarter Business Segment Overview

Materials Solutions generated record core income of

$226 million

and expanded margin by

basis points year over year to

38.0 percent

, its highest performance ever. Engineered Materials (Advanced Engineered Materials excluding affiliates) adjusted EBIT increased by

year over year, driven by success of our operating model. Advanced Engineered Materials volumes grew

versus the prior year quarter, as we worked closely with our customers to develop innovative solutions that address their critical needs. During the quarter, we continued the momentum of our opportunity pipeline, launching over 300 new projects. Affiliate earnings declined

$12 million

versus the prior year, driven by lower prices for MTBE which impacted the Ibn Sina joint venture.

Segment income in Consumer Specialties was

$106 million

15 percent

higher than the prior year. Volumes increased

17 percent

versus the prior year, as the first quarter of 2015 was impacted by significant destocking in acetate tow. Pricing was down

9 percent

year over year due to low industry utilization rates in tow, but was more than offset by volume, productivity gains and lower energy costs.

Core income in the Acetyl Chain was

$148 million

with strong margin performance of

17.6 percent

. Core income decreased

11 percent

year over year, as the first quarter of 2015 benefited from the initial sharp decline in raw materials and stronger overall demand trends in China versus what we have seen this year. Benefits from productivity initiatives and lower energy costs partially offset these year over year headwinds during the quarter. Industrial Specialties generated a record margin of

13.0 percent

, driven by strong demand for our emulsion polymers and the benefits of recent footprint rationalization initiatives.

Cash Flow

The company generated operating cash flow of

$287 million

and free cash flow of

, both first quarter records, driven by strong underlying earnings performance. Capital expenditures were

$70 million

during the quarter. We deleveraged our balance sheet, paying down

of short-term borrowings, and we finished the quarter with

$716 million