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Celanese Corporation Reports Full Year 2023 and Fourth Quarter Earnings

Celanese Corporation (NYSE: CE), a global chemical and specialty materials company, today reported full year 2023 GAAP diluted earnings per share of $18.00 and adjusted earnings per share of $8.92. The Company generated net sales of $10.9 billion in 2023, an increase of 13 percent from the prior year, due to an increase in volume of 23 percent reflecting the Mobility & Materials (M&M) acquisition, partially offset by a decrease in price of 10 percent. Full year 2023 volume decreased by 2 percent, excluding M&M, due to challenging demand and competitive dynamics across most of the year. Celanese took actions to reduce costs and align production and inventory levels with demand to report 2023 consolidated operating profit of $1.7 billion, adjusted EBIT of $1.8 billion, and operating EBITDA of $2.4 billion, at margins of 15, 16, and 22 percent, respectively.

The difference between GAAP diluted earnings per share and adjusted earnings per share in 2023 was due to Certain Items totaling $114 million1 and a recorded income tax benefit of $790 million, primarily due to restructuring related to acquired operations.

Celanese took actions in 2023 to maximize cash generation and execute its deleveraging plan. As a result, the Company:

  • Reduced working capital balances by $579 million, driven by a $451 million reduction in inventory balances in 2023;
  • Generated record operating cash flow of $1.9 billion and record free cash flow of $1.3 billion in 2023; and
  • Reduced debt by $995 million and increased cash by $297 million, resulting in a $1.3 billion reduction in net debt across 2023.

Celanese also reported fourth quarter GAAP diluted earnings per share of $6.43 and adjusted earnings per share of $2.24. The Company generated fourth quarter operating cash flow of $830 million and free cash flow of $702 million, both quarterly records.

"In a challenging backdrop across the entirety of 2023, our team decisively executed on hundreds of actions to reduce our costs, secure alternative volumes, align our production and inventory levels with demand, and maximize our cash generation," said Lori Ryerkerk, chair and chief executive officer. "With a focus on what we can control, we delivered record cash generation, exceeded our full year net debt reduction objective, and enhanced the competitiveness of our businesses going into 2024."

____________________________

1 Including the gain from the formation of the Nutrinova joint venture (JV), partially offset by M&A-related costs, and shutdown costs

Fourth Quarter 2023 Financial Highlights:

 

Three Months Ended

 

December 31,

2023

 

September 30,

2023

 

December 31,

2022

 

(unaudited)

 

(In $ millions, except per share data)

Net Sales

 

 

 

 

 

Engineered Materials

 

1,406

 

 

 

1,528

 

 

 

1,237

 

Acetyl Chain

 

1,181

 

 

 

1,220

 

 

 

1,135

 

Intersegment Eliminations

 

(18

)

 

 

(25

)

 

 

(24

)

Total

 

2,569

 

 

 

2,723

 

 

 

2,348

 

 

 

 

 

 

 

Operating Profit (Loss)

 

 

 

 

 

Engineered Materials

 

122

 

 

 

691

 

 

 

25

 

Acetyl Chain

 

264

 

 

 

272

 

 

 

204

 

Other Activities

 

(127

)

 

 

(121

)

 

 

(173

)

Total

 

259

 

 

 

842

 

 

 

56

 

 

 

 

 

 

 

Net Earnings (Loss)

 

701

 

 

 

949

 

 

 

769

 

 

 

 

 

 

 

Adjusted EBIT(1)

 

 

 

 

 

Engineered Materials

 

199

 

 

 

229

 

 

 

138

 

Acetyl Chain

 

300

 

 

 

310

 

 

 

242

 

Other Activities

 

(65

)

 

 

(88

)

 

 

(78

)

Total

 

434

 

 

 

451

 

 

 

302

 

 

 

 

 

 

 

Equity Earnings and Dividend Income, Other Income (Expense)

 

 

 

 

 

Engineered Materials

 

45

 

 

 

12

 

 

 

35

 

Acetyl Chain

 

33

 

 

 

33

 

 

 

30

 

 

 

 

 

 

 

Operating EBITDA(1)

 

608

 

 

 

624

 

 

 

453

 

Diluted EPS - continuing operations

$

6.43

 

 

$

8.70

 

 

$

7.03

 

Diluted EPS - total

$

6.37

 

 

$

8.69

 

 

$

7.03

 

Adjusted EPS(1)

$

2.24

 

 

$

2.50

 

 

$

1.44

 

 

 

 

 

 

 

Net cash provided by (used in) investing activities

 

(168

)

 

 

375

 

 

 

(10,713

)

Net cash provided by (used in) financing activities

 

(240

)

 

 

(700

)

 

 

1,944

 

Net cash provided by (used in) operating activities

 

830

 

 

 

403

 

 

 

541

 

Free cash flow(1)

 

702

 

 

 

268

 

 

 

395

 

 

Year Ended December 31,

 

2023

 

2022

 

(unaudited)

 

(In $ millions, except per share data)

Net Sales

 

 

 

Engineered Materials

 

6,149

 

 

 

4,024

 

Acetyl Chain

 

4,884

 

 

 

5,743

 

Intersegment Eliminations

 

(93

)

 

 

(94

)

Total

 

10,940

 

 

 

9,673

 

 

 

 

 

Operating Profit (Loss)

 

 

 

Engineered Materials

 

1,083

 

 

 

429

 

Acetyl Chain

 

1,109

 

 

 

1,447

 

Other Activities

 

(505

)

 

 

(498

)

Total

 

1,687

 

 

 

1,378

 

 

 

 

 

Net Earnings (Loss)

 

1,964

 

 

 

1,902

 

 

 

 

 

Adjusted EBIT(1)

 

 

 

Engineered Materials

 

848

 

 

 

779

 

Acetyl Chain

 

1,258

 

 

 

1,609

 

Other Activities

 

(353

)

 

 

(217

)

Total

 

1,753

 

 

 

2,171

 

 

 

 

 

Equity Earnings and Dividend Income, Other Income (Expense)

 

 

 

Engineered Materials

 

87

 

 

 

207

 

Acetyl Chain

 

132

 

 

 

143

 

 

 

 

 

Operating EBITDA(1)

 

2,444

 

 

 

2,617

 

Diluted EPS - continuing operations

$

18.00

 

 

$

17.41

 

Diluted EPS - total

$

17.92

 

 

$

17.34

 

Adjusted EPS(1)

$

8.92

 

 

$

15.88

 

 

 

 

 

Net cash provided by (used in) investing activities

 

(134

)

 

 

(11,141

)

Net cash provided by (used in) financing activities

 

(1,456

)

 

 

10,290

 

Net cash provided by (used in) operating activities

 

1,899

 

 

 

1,819

 

Free cash flow(1)

 

1,320

 

 

 

1,263

 

____________________________

(1)

See "Non-US GAAP Financial Measures" below.

Recent Highlights:

  • Commissioned the carbon capture and utilization (CCU) methanol expansion at the Clear Lake, Texas site, which is expected to capture 180 kt of CO2 industrial emissions and produce 130 kt of low-carbon methanol per year.
  • Completed the transition of M&M to the upgraded Celanese SAP S/4HANA ERP system as the final step to fold the entire organization onto one consolidated ERP system.
  • Completed the planned closure of the Company's nylon 66 (PA66) and certain high-performance nylon (HPN) polymerization units in Uentrop, Germany. Polymerization costs at Uentrop were the highest in the Celanese global nylon network due to energy and raw material costs in the region.
  • Announced a collaboration with Under Armour and development of NEOLAST™, a new fiber for performance stretch fabrics that is a recyclable alternative to spandex.
  • Elected Ganesh Moorthy to the Company's Board of Directors in October. Mr. Moorthy is President, Chief Executive Officer, and a member of the Board of Directors of Microchip Technology Incorporated.

Full Year 2023 and Fourth Quarter Business Segment Overview

Acetyl Chain

The Acetyl Chain reported 2023 net sales of $4.9 billion, a 15 percent decrease from the prior year. Net sales reflected a 17 percent decrease in pricing partially offset by a 2 percent increase in volume. The decrease in pricing resulted in an approximately $1 billion headwind, driven by weak demand across many end-markets and a challenging competitive environment. In response, the business exercised its commercial flexibility across the year to capture opportunistic volumes during periods of high spot demand and industry production outages in China. The Acetyl Chain demonstrated additional optionality by pivoting downstream to sell incremental volume into acetate tow and redispersible powders to capture stronger demand and margins. The business flexed its global network to align production with demand by idling its highest cost facilities. Based on these actions, the Acetyl Chain was able to offset the majority of pricing headwinds to deliver foundational earnings in 2023. The Acetyl Chain generated GAAP operating profit of $1.1 billion, adjusted EBIT of $1.3 billion, and operating EBITDA of $1.5 billion, at margins of 23, 26, and 30 percent, respectively.

The Acetyl Chain delivered fourth quarter net sales of $1.2 billion due to a 3 percent sequential decrease in pricing and consistent volume. The business faced unanticipated operational disruptions in the quarter including unscheduled maintenance and supplier disruptions that resulted in over 50 kt of lost production at its most cost-advantaged facilities. To avoid any impact to its customers, the Acetyl Chain incurred additional costs from flexing production to higher cost plants in its network and sourcing volume from third parties. Despite these challenges, the Acetyl Chain delivered its second highest-ever earnings for a fourth quarter with GAAP operating profit of $264 million, adjusted EBIT of $300 million, and operating EBITDA of $354 million, at margins of 22, 25, and 30 percent, respectively. The business delivered fourth quarter performance consistent with its foundational earnings power of $1.3 billion in annual adjusted EBIT, a level of earnings which is expected to increase by approximately $100 million annually after completion of the Clear Lake acetic acid expansion.

Engineered Materials

Engineered Materials delivered net sales of $6.1 billion in 2023, a 53 percent increase from the prior year as a result of the M&M acquisition that closed in the fourth quarter of 2022. The business faced challenging demand and competitive conditions throughout the year, which resulted in volume and pricing decreases. Excluding the addition of M&M, Engineered Materials volume decreased by 8 percent from the prior year. The impact of demand weakness and prolonged destocking in many end-markets was partially offset by growth in automotive and medical markets and alternative volume secured in other markets. A deflationary raw material environment, weak demand, and heightened competitive dynamics resulted in negative impacts to pricing. The business responded to these challenges by aligning inventory and production levels to demand, lowering inventory balances by $384 million across the year, and accelerating M&M synergy actions. Engineered Materials delivered 2023 GAAP operating profit of $1.1 billion, adjusted EBIT of $848 million, and operating EBITDA of $1.3 billion, at margins of 18, 14, and 21 percent, respectively.

Engineered Materials reported fourth quarter net sales of $1.4 billion, representing a sequential decrease of 8 percent. Net sales reflected a volume decrease of 5 percent and a pricing decrease of 3 percent. Pricing decreased due to continued challenging competitive dynamics and product mix headwinds in the Americas and Europe. Volume was impacted, particularly in the acquired M&M product lines, by year-end destocking in automotive and distribution in the Western Hemisphere that was partially offset by improvement in Asia. Engineered Materials reported fourth quarter GAAP operating profit of $122 million, adjusted EBIT of $199 million, and operating EBITDA of $311 million at margins of 9, 14, and 22 percent, respectively. The formation of the Nutrinova JV resulted in a $13 million sequential decrease in consolidated Engineered Materials earnings.

Cash Flow and Tax

Celanese reported 2023 operating cash flow of $1.9 billion and free cash flow of $1.3 billion which included capital expenditures of $568 million. Celanese returned $305 million in cash to shareholders via dividends in 2023.

The tax rate for U.S. GAAP purposes was a benefit of 67 percent for full year 2023 due to deferred tax benefits of non-recurring internal reorganization transactions to integrate acquired business operations and to centralize ownership of intellectual property with the business, the integration of the European headquarters and principal operations to Switzerland, the release of valuation allowances on U.S. foreign tax credit carryforwards, and excess of U.S. GAAP book gains over tax gains related to the formation of the Nutrinova JV. The effective tax rate for adjusted earnings was 9 percent for 2023 as certain benefits of the internal restructuring will be realized in future periods.

Outlook

"Early signs of demand improvement in certain products and end-markets are insufficient to improve the overall sequential backdrop we see early in 2024 and we remain focused on what we can control to sustainably lift the earnings power of Celanese," said Lori Ryerkerk. "We expect to complete several major value creation projects in the first quarter which, along with future projects, will support a significant ramp in our earnings performance across the year. We expect to deliver a significant year over year increase in our earnings per share supported by M&M synergy capture, the Clear Lake acetic acid and methanol expansions, lower interest expense due to deleveraging, and recognition of lower costs flowing through our inventory."

Reflective of sequential volume and pricing conditions that are not expected to materially improve to start 2024, the timing of major value creation projects, and significant first quarter costs related to planned outages, the Company anticipates first quarter adjusted earnings per share of $1.75 to $2.00, inclusive of approximately $0.30 per share of M&M transaction amortization.

Reconciliations of forecasted non-GAAP measures such as adjusted earnings per share, adjusted EBIT 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 20, 2024. 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 12,400 employees worldwide and had 2023 net sales of $10.9 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; 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, wood pulp and fuel oil and the prices for electricity and other energy sources; 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 possibility that we will not be able to timely or effectively continue to integrate the Mobility & Materials business (the "M&M Business") we acquired from DuPont de Nemours, Inc. (the "M&M Acquisition") in order to realize the anticipated benefits of 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; 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 (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 direct or indirect consequences of acts of war or conflict (such as the Russia-Ukraine conflict or the Israel-Hamas 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; 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 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 20, 2024 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,

2023

 

September 30,

2023

 

December 31,

2022

 

(In $ millions, except share and per share data)

Net sales

2,569

 

 

2,723

 

 

2,348

 

Cost of sales

(1,956

)

 

(2,050

)

 

(1,964

)

Gross profit

613

 

 

673

 

 

384

 

Selling, general and administrative expenses

(272

)

 

(244

)

 

(269

)

Amortization of intangible assets

(40

)

 

(41

)

 

(30

)

Research and development expenses

(32

)

 

(32

)

 

(37

)

Other (charges) gains, net

(18

)

 

(17

)

 

7

 

Foreign exchange gain (loss), net

11

 

 

 

 

3

 

Gain (loss) on disposition of businesses and assets, net

(3

)

 

503

 

 

(2

)

Operating profit (loss)

259

 

 

842

 

 

56

 

Equity in net earnings (loss) of affiliates

52

 

 

12

 

 

31

 

Non-operating pension and other postretirement employee benefit (expense) income

(67

)

 

(1

)

 

(57

)

Interest expense

(178

)

 

(178

)

 

(168

)

Refinancing expense

 

 

(7

)

 

 

Interest income

12

 

 

12

 

 

33

 

Dividend income - equity investments

31

 

 

30

 

 

30

 

Other income (expense), net

23

 

 

4

 

 

5

 

Earnings (loss) from continuing operations before tax

132

 

 

714

 

 

(70

)

Income tax (provision) benefit

575

 

 

236

 

 

840

 

Earnings (loss) from continuing operations

707

 

 

950

 

 

770

 

Earnings (loss) from operation of discontinued operations

(8

)

 

(1

)

 

(1

)

Income tax (provision) benefit from discontinued operations

2

 

 

 

 

 

Earnings (loss) from discontinued operations

(6

)

 

(1

)

 

(1

)

Net earnings (loss)

701

 

 

949

 

 

769

 

Net (earnings) loss attributable to noncontrolling interests

(3

)

 

2

 

 

(2

)

Net earnings (loss) attributable to Celanese Corporation

698

 

 

951

 

 

767

 

Amounts attributable to Celanese Corporation

 

 

 

 

 

Earnings (loss) from continuing operations

704

 

 

952

 

 

768

 

Earnings (loss) from discontinued operations

(6

)

 

(1

)

 

(1

)

Net earnings (loss)

698

 

 

951

 

 

767

 

Earnings (loss) per common share - basic

 

 

 

 

 

Continuing operations

6.46

 

 

8.74

 

 

7.08

 

Discontinued operations

(0.05

)

 

(0.01

)

 

(0.01

)

Net earnings (loss) - basic

6.41

 

 

8.73

 

 

7.07

 

Earnings (loss) per common share - diluted

 

 

 

 

 

Continuing operations

6.43

 

 

8.70

 

 

7.03

 

Discontinued operations

(0.06

)

 

(0.01

)

 

 

Net earnings (loss) - diluted

6.37

 

 

8.69

 

 

7.03

 

Weighted average shares (in millions)

 

 

 

 

 

Basic

109.0

 

 

108.9

 

 

108.5

 

Diluted

109.5

 

 

109.4

 

 

109.2

 

Consolidated Statements of Operations - Unaudited

 

 

Year Ended December 31,

 

2023

 

2022

 

(In $ millions, except share and per share data)

Net sales

10,940

 

 

9,673

 

Cost of sales

(8,337

)

 

(7,293

)

Gross profit

2,603

 

 

2,380

 

Selling, general and administrative expenses

(1,075

)

 

(824

)

Amortization of intangible assets

(164

)

 

(62

)

Research and development expenses

(146

)

 

(112

)

Other (charges) gains, net

(68

)

 

(8

)

Foreign exchange gain (loss), net

32

 

 

(1

)

Gain (loss) on disposition of businesses and assets, net

505

 

 

5

 

Operating profit (loss)

1,687

 

 

1,378

 

Equity in net earnings (loss) of affiliates

102

 

 

220

 

Non-operating pension and other postretirement employee benefit (expense) income

(69

)

 

17

 

Interest expense

(720

)

 

(405

)

Refinancing expense

(7

)

 

 

Interest income

39

 

 

69

 

Dividend income - equity investments

126

 

 

133

 

Other income (expense), net

25

 

 

9

 

Earnings (loss) from continuing operations before tax

1,183

 

 

1,421

 

Income tax (provision) benefit

790

 

 

489

 

Earnings (loss) from continuing operations

1,973

 

 

1,910

 

Earnings (loss) from operation of discontinued operations

(12

)

 

(9

)

Income tax (provision) benefit from discontinued operations

3

 

 

1

 

Earnings (loss) from discontinued operations

(9

)

 

(8

)

Net earnings (loss)

1,964

 

 

1,902

 

Net (earnings) loss attributable to noncontrolling interests

(4

)

 

(8

)

Net earnings (loss) attributable to Celanese Corporation

1,960

 

 

1,894

 

Amounts attributable to Celanese Corporation

 

 

 

Earnings (loss) from continuing operations

1,969

 

 

1,902

 

Earnings (loss) from discontinued operations

(9

)

 

(8

)

Net earnings (loss)

1,960

 

 

1,894

 

Earnings (loss) per common share - basic

 

 

 

Continuing operations

18.09

 

 

17.55

 

Discontinued operations

(0.08

)

 

(0.07

)

Net earnings (loss) - basic

18.01

 

 

17.48

 

Earnings (loss) per common share - diluted

 

 

 

Continuing operations

18.00

 

 

17.41

 

Discontinued operations

(0.08

)

 

(0.07

)

Net earnings (loss) - diluted

17.92

 

 

17.34

 

Weighted average shares (in millions)

 

 

 

Basic

108.8

 

 

108.4

 

Diluted

109.4

 

 

109.2

 

Consolidated Balance Sheets - Unaudited

 

As of

December 31,

2023

 

As of

December 31,

2022

 

 

(In $ millions)

ASSETS

 

 

 

Current Assets

 

 

 

Cash and cash equivalents

1,805

 

 

1,508

 

Trade receivables - third party and affiliates, net

1,243

 

 

1,379

 

Non-trade receivables, net

541

 

 

675

 

Inventories

2,357

 

 

2,808

 

Other assets

272

 

 

241

 

Total current assets

6,218

 

 

6,611

 

Investments in affiliates

1,220

 

 

1,062

 

Property, plant and equipment, net

5,584

 

 

5,584

 

Operating lease right-of-use assets

422

 

 

413

 

Deferred income taxes

1,677

 

 

808

 

Other assets

524

 

 

547

 

Goodwill

6,977

 

 

7,142

 

Intangible assets, net

3,975

 

 

4,105

 

Total assets

26,597

 

 

26,272

 

LIABILITIES AND EQUITY

 

 

 

Current Liabilities

 

 

 

Short-term borrowings and current installments of long-term debt - third party and affiliates

1,383

 

 

1,306

 

Trade payables - third party and affiliates

1,510

 

 

1,518

 

Other liabilities

1,154

 

 

1,201

 

Income taxes payable

25

 

 

43

 

Total current liabilities

4,072

 

 

4,068

 

Long-term debt, net of unamortized deferred financing costs

12,301

 

 

13,373

 

Deferred income taxes

999

 

 

1,242

 

Uncertain tax positions

300

 

 

322

 

Benefit obligations

457

 

 

411

 

Operating lease liabilities

325

 

 

364

 

Other liabilities

591

 

 

387

 

Commitments and Contingencies

 

 

 

Stockholders' Equity

 

 

 

Treasury stock, at cost

(5,488

)

 

(5,491

)

Additional paid-in capital

394

 

 

372

 

Retained earnings

12,929

 

 

11,274

 

Accumulated other comprehensive income (loss), net

(744

)

 

(518

)

Total Celanese Corporation stockholders' equity

7,091

 

 

5,637

 

Noncontrolling interests

461

 

 

468

 

Total equity

7,552

 

 

6,105

 

Total liabilities and equity

26,597

 

 

26,272

 

Non-US GAAP Financial Measures and Supplemental Information

February 20, 2024

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. 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 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

 

 

2023

Q4 '23

Q3 '23

Q2 '23

Q1 '23

2022

Q4 '22

Q3 '22

Q2 '22

Q1 '22

 

(In $ millions)

Net earnings (loss) attributable to Celanese Corporation

1,960

 

698

 

951

 

220

 

91

 

1,894

 

767

 

191

 

434

 

502

 

(Earnings) loss from discontinued operations

9

 

6

 

1

 

(1

)

3

 

8

 

1

 

1

 

6

 

 

Interest income

(39

)

(12

)

(12

)

(7

)

(8

)

(69

)

(33

)

(34

)

(1

)

(1

)

Interest expense

720

 

178

 

178

 

182

 

182

 

405

 

168

 

154

 

48

 

35

 

Refinancing expense

7

 

 

7

 

 

 

 

 

 

 

 

Income tax provision (benefit)

(790

)

(575

)

(236

)

(4

)

25

 

(489

)

(840

)

127

 

112

 

112

 

Certain Items attributable to Celanese Corporation (Table 8)

(114

)

139

 

(438

)

54

 

131

 

422

 

239

 

71

 

47

 

65

 

Adjusted EBIT

1,753

 

434

 

451

 

444

 

424

 

2,171

 

302

 

510

 

646

 

713

 

Depreciation and amortization expense(1)

691

 

174

 

173

 

172

 

172

 

446

 

151

 

97

 

98

 

100

 

Operating EBITDA

2,444

 

608

 

624

 

616

 

596

 

2,617

 

453

 

607

 

744

 

813

 

 

2023

 

Q4 '23

Q3 '23

Q2 '23

Q1 '23

2022

 

Q4 '22

Q3 '22

Q2 '22

Q1 '22

 

(In $ millions)

Engineered Materials

15

15

13

2

3

4

4

Acetyl Chain

 

 

 

 

 

2

 

 

 

 

2

 

Other Activities(2)

 

 

 

 

 

1

 

 

 

1

 

 

Accelerated depreciation and amortization expense

15

 

15

 

 

 

 

16

 

2

 

3

 

5

 

6

 

Depreciation and amortization expense(1)

691

 

174

 

173

 

172

 

172

 

446

 

151

 

97

 

98

 

100

 

Total depreciation and amortization expense

706

 

189

 

173

 

172

 

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

 

 

2023

 

Q4 '23

 

Q3 '23

 

Q2 '23

 

Q1 '23

 

Q4 '22

 

(In $ millions)

Net earnings (loss) attributable to M&M

24

(22

)

47

47

 

(48

)

(69

)

(3)

Income tax provision (benefit)

65

 

43

 

10

 

(1

)

13

 

6

 

Certain Items(1)

151

 

30

 

17

 

18

 

86

 

72

 

Adjusted EBIT

240

 

51

 

74

 

64

 

51

 

9

 

Depreciation and amortization expense

275

 

69

 

70

 

68

 

68

 

47

 

Operating EBITDA(2)

515

 

120

 

144

 

132

 

119

 

56

 

(4)

______________________________

(1)

Amount is included within total Certain Items shown in Table 8.

(2)

Excludes $(22) million, $(19) million, $(23) million, $(23) million and $(17) million of Operating EBITDA included in Other Activities for the three months ended December 31, 2023, September 30, 2023, June 30, 2023, 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

 

 

2023

Q4 '23

Q3 '23

Q2 '23

Q1 '23

2022

Q4 '22

Q3 '22

Q2 '22

Q1 '22

 

(In $ millions, except percentages)

Operating Profit (Loss) / Operating Margin

 

 

 

 

 

 

 

 

 

 

Engineered Materials

1,083

 

17.6

%

122

 

8.7

%

691

 

45.2

%

158

 

10.0

%

112

 

6.9

%

429

 

10.7

%

25

 

2.0

%

114

 

12.3

%

166

 

17.5

%

124

 

13.6

%

Acetyl Chain

1,109

 

22.7

%

264

 

22.4

%

272

 

22.3

%

295

 

23.9

%

278

 

22.2

%

1,447

 

25.2

%

204

 

18.0

%

312

 

22.3

%

428

 

27.5

%

503

 

30.4

%

Other Activities(1)

(505

)

 

(127

)

 

(121

)

 

(118

)

 

(139

)

 

(498

)

 

(173

)

 

(118

)

 

(111

)

 

(96

)

 

Total

1,687

 

15.4

%

259

 

10.1

%

842

 

30.9

%

335

 

12.0

%

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 for Engineered Materials

(3

)

 

1

 

 

(2

)

 

(2

)

 

 

 

 

 

 

 

 

 

 

 

 

 

Less: Net Earnings (Loss) Attributable to NCI for Acetyl Chain

7

 

 

2

 

 

 

 

3

 

 

2

 

 

8

 

 

2

 

 

2

 

 

2

 

 

2

 

 

Operating Profit (Loss) Attributable to Celanese Corporation

1,683

 

15.4

%

256

 

10.0

%

844

 

31.0

%

334

 

11.9

%

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

1,086

 

17.7

%

121

 

8.6

%

693

 

45.4

%

160

 

10.1

%

112

 

6.9

%

429

 

10.7

%

25

 

2.0

%

114

 

12.3

%

166

 

17.5

%

124

 

13.6

%

Acetyl Chain

1,102

 

22.6

%

262

 

22.2

%

272

 

22.3

%

292

 

23.7

%

276

 

22.1

%

1,439

 

25.1

%

202

 

17.8

%

310

 

22.2

%

426

 

27.3

%

501

 

30.3

%

Other Activities(1)

(505

)

 

(127

)

 

(121

)

 

(118

)

 

(139

)

 

(498

)

 

(173

)

 

(118

)

 

(111

)

 

(96

)

 

Total

1,683

 

15.4

%

256

 

10.0

%

844

 

31.0

%

334

 

11.9

%

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

87

 

 

45

 

 

12

 

 

20

 

 

10

 

 

207

 

 

35

 

 

70

 

 

53

 

 

49

 

 

Acetyl Chain

132

 

 

33

 

 

33

 

 

32

 

 

34

 

 

143

 

 

30

 

 

34

 

 

39

 

 

40

 

 

Other Activities(1)

34

 

 

28

 

 

1

 

 

6

 

 

(1

)

 

12

 

 

1

 

 

4

 

 

1

 

 

6

 

 

Total

253

 

 

106

 

 

46

 

 

58

 

 

43

 

 

362

 

 

66

 

 

108

 

 

93

 

 

95

 

 

Non-Operating Pension and Other Post-Retirement Employee Benefit (Expense) Income Attributable to Celanese Corporation

 

 

 

 

 

 

 

 

 

 

Engineered Materials

(1

)

 

(1

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Acetyl Chain

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other Activities(1)

(68

)

 

(66

)

 

(1

)

 

(2

)

 

1

 

 

17

 

 

(57

)

 

25

 

 

25

 

 

24

 

 

Total

(69

)

 

(67

)

 

(1

)

 

(2

)

 

1

 

 

17

 

 

(57

)

 

25

 

 

25

 

 

24

 

 

Certain Items Attributable to Celanese Corporation (Table 8)

 

 

 

 

 

 

 

 

 

 

Engineered Materials

(324

)

 

34

 

 

(476

)

 

25

 

 

93

 

 

143

 

 

78

 

 

22

 

 

5

 

 

38

 

 

Acetyl Chain

24

 

 

5

 

 

5

 

 

8

 

 

6

 

 

27

 

 

10

 

 

5

 

 

10

 

 

2

 

 

Other Activities(1)

186

 

 

100

 

 

33

 

 

21

 

 

32

 

 

252

 

 

151

 

 

44

 

 

32

 

 

25

 

 

Total

(114

)

 

139

 

 

(438

)

 

54

 

 

131

 

 

422

 

 

239

 

 

71

 

 

47

 

 

65

 

 

Adjusted EBIT / Adjusted EBIT Margin

 

 

 

 

 

 

 

 

 

 

Engineered Materials

848

 

13.8

%

199

 

14.2

%

229

 

15.0

%

205

 

12.9

%

215

 

13.2

%

779

 

19.4

%

138

 

11.2

%

206

 

22.2

%

224

 

23.6

%

211

 

23.2

%

Acetyl Chain

1,258

 

25.8

%

300

 

25.4

%

310

 

25.4

%

332

 

26.9

%

316

 

25.3

%

1,609

 

28.0

%

242

 

21.3

%

349

 

25.0

%

475

 

30.5

%

543

 

32.9

%

Other Activities(1)

(353

)

 

(65

)

 

(88

)

 

(93

)

 

(107

)

 

(217

)

 

(78

)

 

(45

)

 

(53

)

 

(41

)

 

Total

1,753

 

16.0

%

434

 

16.9

%

451

 

16.6

%

444

 

15.9

%

424

 

14.9

%

2,171

 

22.4

%

302

 

12.9

%

510

 

22.2

%

646

 

26.0

%

713

 

28.1

%

___________________________

(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.)

 

 

2023

Q4 '23

Q3 '23

Q2 '23

Q1 '23

2022

Q4 '22

Q3 '22

Q2 '22

Q1 '22

 

(In $ millions, except percentages)

Depreciation and Amortization Expense(1)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Engineered Materials

447

 

 

112

 

 

111

 

 

112

 

 

112

 

 

213

 

 

90

 

 

40

 

 

41

 

 

42

 

 

Acetyl Chain

217

 

 

54

 

 

55

 

 

54

 

 

54

 

 

211

 

 

52

 

 

53

 

 

52

 

 

54

 

 

Other Activities(2)

27

 

 

8

 

 

7

 

 

6

 

 

6

 

 

22

 

 

9

 

 

4

 

 

5

 

 

4

 

 

Total

691

 

 

174

 

 

173

 

 

172

 

 

172

 

 

446

 

 

151

 

 

97

 

 

98

 

 

100

 

 

Operating EBITDA / Operating EBITDA Margin

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Engineered Materials

1,295

 

21.1

%

311

 

22.1

%

340

 

22.3

%

317

 

20.0

%

327

 

20.1

%

992

 

24.7

%

228

 

18.4

%

246

 

26.5

%

265

 

28.0

%

253

 

27.8

%

Acetyl Chain

1,475

 

30.2

%

354

 

30.0

%

365

 

29.9

%

386

 

31.3

%

370

 

29.6

%

1,820

 

31.7

%

294

 

25.9

%

402

 

28.8

%

527

 

33.8

%

597

 

36.1

%

Other Activities(2)

(326

)

 

(57

)

 

(81

)

 

(87

)

 

(101

)

 

(195

)

 

(69

)

 

(41

)

 

(48

)

 

(37

)

 

Total

2,444

 

22.3

%

608

 

23.7

%

624

 

22.9

%

616

 

22.0

%

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

 

 

2023

Q4 '23

Q3 '23

Q2 '23

Q1 '23

2022

Q4 '22

Q3 '22

Q2 '22

Q1 '22

 

 

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

1,969

 

18.00

704

 

6.43

952

 

8.70

219

 

2.00

94

 

0.86

1,902

 

17.41

768

 

7.03

192

 

1.76

440

 

4.03

502

 

4.61

Income tax provision (benefit)

(790

)

 

(575

)

 

(236

)

 

(4

)

 

25

 

 

(489

)

 

(840

)

 

127

 

 

112

 

 

112

 

 

Earnings (loss) from continuing operations before tax

1,179

 

 

129

 

 

716

 

 

215

 

 

119

 

 

1,413

 

 

(72

)

 

319

 

 

552

 

 

614

 

 

Certain Items attributable to Celanese Corporation (Table 8)

(114

)

 

139

 

 

(438

)

 

54

 

 

131

 

 

422

 

 

239

 

 

71

 

 

47

 

 

65

 

 

Refinancing and related expenses

7

 

 

 

 

7

 

 

 

 

 

 

158

 

(1)

14

 

(1)

104

 

(1)

26

 

(1)

14

 

(1)

Adjusted earnings (loss) from continuing operations before tax

1,072

 

 

268

 

 

285

 

 

269

 

 

250

 

 

1,993

 

 

181

 

 

494

 

 

625

 

 

693

 

 

Income tax (provision) benefit on adjusted earnings(2)

(96

)

 

(23

)

 

(11

)

 

(32

)

 

(30

)

 

(259

)

 

(24

)

 

(64

)

 

(81

)

 

(90

)

 

Adjusted earnings (loss) from continuing operations(3)

976

 

8.92

245

 

2.24

274

 

2.50

237

 

2.17

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

108.8

 

 

109.0

 

 

108.9

 

 

108.9

 

 

108.6

 

 

108.4

 

 

108.5

 

 

108.4

 

 

108.4

 

 

108.2

 

 

Incremental shares attributable to equity awards

0.6

 

 

0.5

 

 

0.5

 

 

0.4

 

 

0.6

 

 

0.8

 

 

0.7

 

 

0.7

 

 

0.7

 

 

0.7

 

 

Total diluted shares

109.4

 

 

109.5

 

 

109.4

 

 

109.3

 

 

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:

 

2023

Q4 '23

Q3 '23

Q2 '23

Q1 '23

2022

Q4 '22

Q3 '22

Q2 '22

Q1 '22

 

 

Adjusted effective tax rate

9

9

4

12

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)

Q4 '23 & 2023

 

8.1

 

 

5.2

Q4 '22 & 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

 

Actual

 

2023

 

2022

 

(In percentages)

US GAAP annual effective tax rate

(67

)

 

(34

)

Discrete quarterly recognition of GAAP items(1)

2

 

 

(6

)

Tax impact of other charges and adjustments(2)

(3

)

 

9

 

Changes in valuation allowances, excluding impact of other charges and adjustments(3)

13

 

 

(1

)

Other, includes effect of discrete current year transactions(4)(5)

64

 

 

45

 

Adjusted tax rate

9

 

 

13

 

______________________________

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.

(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

 

 

2023

 

Q4 '23

 

Q3 '23

 

Q2 '23

 

Q1 '23

 

2022

 

Q4 '22

 

Q3 '22

 

Q2 '22

 

Q1 '22

 

(In $ millions)

Engineered Materials

6,149

 

 

1,406

 

 

1,528

 

 

1,585

 

 

1,630

 

 

4,024

 

 

1,237

 

 

929

 

 

948

 

 

910

 

Acetyl Chain

4,884

 

 

1,181

 

 

1,220

 

 

1,233

 

 

1,250

 

 

5,743

 

 

1,135

 

 

1,397

 

 

1,559

 

 

1,652

 

Intersegment eliminations(1)

(93

)

 

(18

)

 

(25

)

 

(23

)

 

(27

)

 

(94

)

 

(24

)

 

(25

)

 

(21

)

 

(24

)

Net sales

10,940

 

 

2,569

 

 

2,723

 

 

2,795

 

 

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 December 31, 2023 Compared to Three Months Ended September 30, 2023

 

 

Volume

 

Price

 

Currency

 

Total

 

 

(In percentages)

 

Engineered Materials

(5

)

 

(3

)

 

 

(8

)

 

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

 

 

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 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

 

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, 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

 

 

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

 

 

2023

 

Q4 '23

 

Q3 '23

 

Q2 '23

 

Q1 '23

 

2022

 

Q4 '22

 

Q3 '22

 

Q2 '22

 

Q1 '22

 

(In $ millions, except percentages)

Net cash provided by (used in) investing activities

(134

)

 

(168

)

 

375

 

 

(163

)

 

(178

)

 

(11,141

)

 

(10,713

)

 

(143

)

 

(136

)

 

(149

)

Net cash provided by (used in) financing activities

(1,456

)

 

(240

)

 

(700

)

 

(447

)

 

(69

)

 

10,290

 

 

1,944

 

 

8,600

 

 

(159

)

 

(95

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net cash provided by (used in) operating activities

1,899

 

 

830

 

 

403

 

 

762

 

 

(96

)

 

1,819

 

 

541

 

 

467

 

 

495

 

 

316

 

Capital expenditures on property, plant and equipment

(568

)

 

(128

)

 

(131

)

 

(145

)

 

(164

)

 

(543

)

 

(143

)

 

(139

)

 

(124

)

 

(137

)

Contributions from/(Distributions) to NCI

(11

)

 

 

 

(4

)

 

(6

)

 

(1

)

 

(13

)

 

(3

)

 

(3

)

 

(3

)

 

(4

)

Free cash flow(1)

1,320

 

 

702

 

 

268

 

 

611

 

 

(261

)

 

1,263

 

 

395

 

 

325

 

 

368

 

 

175

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net sales

10,940

 

 

2,569

 

 

2,723

 

 

2,795

 

 

2,853

 

 

9,673

 

 

2,348

 

 

2,301

 

 

2,486

 

 

2,538

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Free cash flow as % of Net sales

12.1

%

 

27.3

%

 

9.8

%

 

21.9

%

 

(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

 

 

2023

 

 

Q4 '23

 

Q3 '23

 

Q2 '23

 

Q1 '23

 

2022

 

 

Q4 '22

 

Q3 '22

 

Q2 '22

 

Q1 '22

 

(In $ millions)

Dividends from equity method investments

157

 

85

 

7

 

25

 

40

 

217

 

82

 

27

 

82

 

26

Dividends from equity investments without readily determinable fair values

126

 

 

31

 

 

30

 

 

31

 

 

34

 

 

133

 

 

30

 

 

30

 

 

36

 

 

37

 

Total

283

 

 

116

 

 

37

 

 

56

 

 

74

 

 

350

 

 

112

 

 

57

 

 

118

 

 

63

 

Table 7

Net Debt - Reconciliation of a Non-GAAP Measure - Unaudited

 

 

2023

 

Q4 '23

 

Q3 '23

 

Q2 '23

 

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

1,383

 

 

1,383

 

 

1,408

 

 

1,507

 

 

1,386

 

 

1,306

 

 

1,306

 

 

977

 

 

809

 

 

860

 

Long-term debt, net of unamortized deferred financing costs

12,301

 

 

12,301

 

 

12,291

 

 

12,889

 

 

13,396

 

 

13,373

 

 

13,373

 

 

11,360

 

 

3,022

 

 

3,132

 

Total debt

13,684

 

 

13,684

 

 

13,699

 

 

14,396

 

 

14,782

 

 

14,679

 

 

14,679

 

 

12,337

 

 

3,831

 

 

3,992

 

Cash and cash equivalents

(1,805

)

 

(1,805

)

 

(1,357

)

 

(1,296

)

 

(1,167

)

 

(1,508

)

 

(1,508

)

 

(9,671

)

 

(783

)

 

(605

)

Net debt

11,879

 

 

11,879

 

 

12,342

 

 

13,100

 

 

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:

 

 

2023

 

Q4 '23

 

Q3 '23

 

Q2 '23

 

Q1 '23

 

2022

 

Q4 '22

 

Q3 '22

 

Q2 '22

 

Q1 '22

 

Income Statement Classification

 

(In $ millions)

 

 

Exit and shutdown costs

89

 

 

33

 

 

9

 

 

21

 

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

15

 

 

6

 

 

9

 

 

 

 

 

 

 

13

 

 

2

 

 

12

 

 

(1

)

 

 

 

Cost of sales / Other (charges) gains, net

Impact from plant incidents and natural disasters(1)

6

 

 

 

 

 

 

 

 

6

 

 

 

17

 

 

17

 

 

 

 

 

 

 

 

Cost of sales

Mergers, acquisitions and dispositions

195

 

 

27

 

 

46

 

 

23

 

 

99

 

 

 

267

 

 

138

 

 

44

 

 

29

 

 

56

 

 

Cost of sales / SG&A

Actuarial (gain) loss on pension and postretirement plans

69

 

 

69

 

 

 

 

 

 

 

 

 

80

 

 

80

 

 

 

 

 

 

 

 

Cost of sales / SG&A / Non-operating pension and other postretirement employee benefit (expense) income

Legal settlements and commercial disputes

12

 

 

4

 

 

2

 

 

6

 

 

 

 

 

3

 

 

 

 

1

 

 

 

 

2

 

 

Cost of sales / SG&A / Other (charges) gains, net

(Gain) loss on disposition of businesses and assets

(510

)

 

(3

)

 

(508

)

 

1

 

 

 

 

 

(13

)

 

(1

)

 

 

 

(12

)

 

 

 

Gain (loss) on disposition of businesses and assets, net

Other

10

 

 

3

 

 

4

 

 

3

 

 

 

 

 

3

 

 

1

 

 

 

 

2

 

 

 

 

Cost of sales / SG&A

Certain Items attributable to Celanese Corporation

(114

)

 

139

 

 

(438

)

 

54

 

 

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

 

 

 

 

 

 

2023

 

 

 

 

 

 

2022

 

 

 

 

 

 

(In $ millions, except

percentages)

 

 

 

 

 

(In $ millions, except

percentages)

Net earnings (loss) attributable to Celanese Corporation

 

 

 

 

1,960

 

 

 

 

 

 

1,894

 

 

 

 

 

 

 

 

 

 

 

 

 

Adjusted EBIT (Table 1)

 

 

 

 

1,753

 

 

 

 

 

 

2,171

 

Adjusted effective tax rate (Table 3a)

 

 

 

 

9

%

 

 

 

 

 

13

%

Adjusted EBIT tax effected

 

 

 

 

1,595

 

 

 

 

 

 

1,889

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2023

 

2022

 

Average

 

2022

 

2021

 

Average

 

(In $ millions, except percentages)

Short-term borrowings and current installments of long-term debt - third parties and affiliates

1,383