Actionable news
All posts from Actionable news
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 Third Quarter Adjusted Earnings Per Share of

Begins Methanol Production at Clear Lake Facility;

Raises Adjusted Earnings Outlook Range to

$5.90 to $6.10


October 19, 2015

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


adjusted earnings per share of

. The company's strong earnings result reflected continued focus on opportunities to serve key markets while also driving efficiency throughout our complementary cores. During the quarter, the company also made progress on a number of strategic initiatives while also setting several performance records. Highlights for the quarter follow.

Quarter highlights:

The company completed construction and began methanol production at its 1.3 million ton production unit in Clear Lake, Texas, a joint venture between Celanese and Mitsui & Co., Ltd., of Tokyo, Japan, in October 2015

Adjusted EBIT margin was a third quarter record at

21.6 percent

basis points higher than the prior year quarter and

basis points below the prior quarter

Materials Solutions delivered record performance with adjusted EBIT of

$211 million

and core income margin of

36.8 percent

The company deployed

$420 million

to repurchase

6.6 million

shares of common stock and reduced its outstanding share count by

4.3 percent

The company also announced its plans to repurchase

$1 billion

of its shares over the next

two years

, based on confidence in its ability to generate strong free cash flow

Three Months Ended

September 30,

June 30,


(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 incredibly proud of the team at Clear Lake for their commitment and tireless efforts to complete construction and begin production at the methanol unit. This strategic investment provides us with certain supply of a critical raw material, allowing us to capture the economic benefit of abundant low cost U.S. natural gas," said Mark Rohr, chairman and chief executive officer. "By leveraging existing infrastructure and executing an aggressive project plan, we completed the methanol unit and reached full operating rates in only 21 months at a capital cost of under

per ton, an impressive accomplishment and testament to our ability to execute on our strategic goals."

"I am also pleased to report third quarter adjusted earnings of

per share. Segment income margin was a third quarter record at

basis point increase over the prior year on record margin in Materials Solutions and productivity actions across the company. This more than offset lower margin in the Acetyl Chain due to higher methanol costs prior to start up of the Clear Lake methanol unit. Free cash flow was

$101 million

for the quarter, and we returned a record $467 million of cash to our shareholders through

$420 million

in share repurchases and

$47 million

in dividends," said Rohr.

Quarter Business Segment Overview

Core income in Materials Solutions was

on net sales of

$573 million

. Core income margin was

basis points year-over-year and

basis points sequentially.

Advanced Engineered Materials generated record segment income of

$106 million

$326 million

32.5 percent

basis points higher than the prior year and

basis points higher than the previous quarter. Earnings in the base engineered materials business, excluding affiliates, were a third quarter record at

$63 million

43 percent

11 percent

lower than the prior quarter on normal seasonality. Volume declined

versus the prior quarter as the businesses maintained pricing discipline and commercial selectivity, prioritizing and commercializing its most profitable projects. Pricing was down

sequentially. Success in this business continues to be driven by our ability to work closely with customers and develop innovative solutions that leverage our broad and differentiated polymer portfolio. During the quarter, the business completed and launched over 200 projects, including both new products and new applications. Affiliate earnings were

$43 million

, consistent with the prior year and

39 percent

higher sequentially.

Consumer Specialties

Third quarter segment income in Consumer Specialties was

$105 million

, consistent with the prior quarter, on net sales of

$247 million

. Segment income margin was a record at

42.5 percent

basis points higher than the prior quarter primarily due to continued productivity initiatives, primarily energy. Third quarter volume and pricing were consistent with second quarter levels. Dividends from the cellulose derivatives ventures were

$25 million

Core income in the Acetyl Chain was

$112 million

$872 million

12.8 percent

, down

basis points from the prior quarter primarily due to higher U.S. methanol costs. The higher methanol costs were driven by the expiration of an advantaged long-term supply contract at the end of the second quarter. Sequentially, volume declined by

and price decreased

2 percent

primarily due to normal seasonality in emulsion polymers and continued muted demand in China.

Cash Flow

The company generated operating cash flow of

$173 million

and free cash flow of

quarter. Operating cash flow was lower sequentially, due to the timing of cash tax payments and receipt of affiliate dividends versus the prior quarter. Net capital expenditures were

$72 million

in the quarter.

The company repurchased

shares during the quarter, deploying

in cash. The company also announced a new