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Business Wire 22-Apr-2019 4:45 PM
Celanese Corporation (NYSE:CE), a global chemical and specialty materials company, today reported first quarter GAAP diluted earnings per share of $2.64 and adjusted earnings per share of $2.62 on net sales of $1.7 billion. Despite a challenging business environment, the Company delivered sequential growth in operating profit and adjusted EBIT due to the resiliency of the Engineered Materials and Acetyl Chain commercial models and continued stability in Acetate Tow. In the quarter, Celanese generated operating cash flow of $307 million and free cash flow of $224 million, both first quarter records. The Company reaffirmed its full year 2019 guidance for both adjusted EPS and free cash flow. Celanese continues to strategically invest in high return organic projects with recently announced incremental expansions in both Engineered Materials and the Acetyl Chain.
First Quarter 2019 Financial Highlights:
Three Months Ended | ||||||||||||
March 31, 2019 | December 31, 2018 | March 31, 2018 | ||||||||||
(unaudited) | ||||||||||||
(In $ millions) | ||||||||||||
Operating Profit (Loss) | ||||||||||||
Engineered Materials | 144 | 95 | 127 | |||||||||
Acetate Tow | 40 | 19 | 46 | |||||||||
Acetyl Chain | 202 | 211 | 253 | |||||||||
Other Activities | (66 | ) | (66 | ) | (83 | ) | ||||||
Total | 320 | 259 | 343 | |||||||||
Three Months Ended | |||||||||||||||
March 31, 2019 | December 31, 2018 | March 31, 2018 | |||||||||||||
(unaudited) | |||||||||||||||
(In $ millions, except per share data) | |||||||||||||||
Net Earnings (Loss) | 338 | 101 | 365 | ||||||||||||
Adjusted EBIT(1)(2) | |||||||||||||||
Engineered Materials | 183 | 150 | 182 | ||||||||||||
Acetate Tow | 72 | 53 | 78 | ||||||||||||
Acetyl Chain | 203 | 215 | 253 | ||||||||||||
Other Activities | (37 | ) | (25 | ) | (39 | ) | |||||||||
Total | 421 | 393 | 474 | ||||||||||||
Equity Earnings and Dividend Income, Other Income (Expense) | |||||||||||||||
Engineered Materials | 46 | 49 | 54 | ||||||||||||
Acetate Tow | 32 | 25 | 32 | ||||||||||||
Operating EBITDA(1) | 502 | 471 | 553 | ||||||||||||
Diluted EPS - continuing operations | $ | 2.64 | $ | 0.73 | $ | 2.68 | |||||||||
Diluted EPS - total | $ | 2.63 | $ | 0.75 | $ | 2.66 | |||||||||
Adjusted EPS(1) | $ | 2.62 | $ | 2.38 | $ | 2.79 | |||||||||
Net cash provided by (used in) investing activities | (177 | ) | (98 | ) | (235 | ) | |||||||||
Net cash provided by (used in) financing activities | (130 | ) | (526 | ) | (2 | ) | |||||||||
Net cash provided by (used in) operating activities | 307 | 363 | 143 | ||||||||||||
Free cash flow(1) | 224 | 261 | 55 |
______________________________ | ||
(1) |
See "Non-US GAAP Financial Measures" below. | |
(2) |
The Company's discussion of adjusted earnings includes use of the term "segment income". This non-GAAP term is defined below and reconciled in our Non-US GAAP Financial Measures and Supplemental Information document referenced below. | |
First Quarter 2019 Highlights:
First Quarter 2019 Business Segment Overview
Engineered Materials (EM)
Engineered Materials generated first quarter net sales of $663 million, an increase of 7 percent over the fourth quarter of 2018 on higher volume and pricing. GAAP operating profit of $144 million and segment income of $183 million were both first quarter records as the business continued to lift average pricing in the quarter. The business delivered first quarter operating profit margin of 21.7 percent and adjusted EBIT margin of 27.6 percent, increases of 640 basis points and 350 basis points, respectively, over the prior quarter. Although volumes were down 3 percent year over year, margins increased both sequentially and year over year as the business expanded pricing and upgraded the sales mix. The EM base business, excluding affiliates, contributed record adjusted EBIT that more than offset continued underlying demand weakness and affiliate performance. As a result, the overall business grew GAAP operating profit and segment income on a sequential and year over year basis.
Acetyl Chain
The Acetyl Chain recorded net sales of $889 million in the first quarter, as sequential volume growth of 5 percent partially offset a decline in industry pricing. GAAP operating profit was $202 million and segment income was $203 million, the fifth consecutive quarter each has surpassed $200 million. GAAP operating and segment income margins of approximately 23.0 percent, amid lower industry utilization and pricing, further confirm the elevated foundational earnings of the business. The Acetyl Chain utilized the newly expanded VAM capacity at Clear Lake and flexed its global supply network and integrated chain to grow volume and upgrade the sales mix sequentially. The Acetyl Chain continues to expand its ability to activate the global network to deliver performance in excess of underlying market conditions.
Acetate Tow
Acetate Tow reported GAAP operating profit of $40 million and segment income of $72 million in the first quarter, improvements over the fourth quarter of 2018 and reflective of anticipated run-rate quarterly performance levels. Price and volume in the first quarter increased slightly over the fourth quarter of 2018 and were stable compared to the same quarter last year. Dividends from affiliates were $32 million in the first quarter, in line with the prior year but higher sequentially due to the timing of dividend payments from the Chinese joint ventures.
Cash Flow and Tax
The Company delivered a first quarter record performance in operating cash flow and free cash flow of $307 million and $224 million, respectively, driven by strong business results and efficient management of working capital. Capital expenditures in the quarter were $79 million, including productivity and expansion projects in Engineered Materials and the Acetyl Chain, and on track to total $350 to $400 million for the year. For the quarter, a total of $270 million in cash was returned to shareholders, including $70 million in dividends and $200 million in share repurchases. The effective US GAAP tax rate was 12 percent in the first quarter compared to 15 percent in the same quarter of last year, primarily due to valuation allowance adjustments on deferred tax assets. The tax rate for adjusted EPS was 14 percent in the quarter, unchanged year over year.
Outlook
"Challenging global business conditions persisted into the new year, and our strong first quarter performance solidly underscores the capability of our businesses to deliver in any environment," said Mark Rohr, chairman and chief executive officer. "Engineered Materials executed the project pipeline model to deliver earnings growth, both sequential and year over year, that was distinctly elevated beyond underlying market conditions. In the Acetyl Chain, another quarter of fundamentally strong earnings displayed the power to create incremental value by flexing our global network. Looking forward, we are not forecasting a significant improvement in demand in the current quarter, and therefore expect second quarter performance similar to first quarter. Based on an expectation that underlying fundamentals will begin to improve later this year, we have confidence in reaffirming our expectation for 2019 adjusted earnings of approximately $10.50 per share. We continue to strategically invest in our businesses and further expand our capability to drive consistent growth and value creation for our shareholders."
We are unable to reconcile forecasted adjusted earnings per share growth to US GAAP diluted earnings per share without unreasonable efforts because a forecast of Certain Items, such as mark-to-market pension gains/losses, is not practical.
The Company's earnings presentation and prepared remarks related to the first quarter results will be posted on its website at investors.celanese.com under News & Events/Presentations after market close on April 22, 2019. Information about Non-US GAAP measures is included in a Non-US GAAP Financial Measures and Supplemental Information document posted on our website and available at the link below. See "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 7,700 employees worldwide and had 2018 net sales of $7.2 billion. For more information about Celanese Corporation and its product offerings, visit www.celanese.com or our blog at www.celaneseblog.com.
Forward-Looking Statements
This release may contain "forward-looking statements," which include information concerning the Company's plans, objectives, goals, strategies, future revenues or performance, 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; changes in the price and availability of raw materials, 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 on to customers or otherwise improve margins through price increases; the ability to maintain plant utilization rates and to implement planned capacity additions and expansions; the ability to reduce or maintain their current levels of production costs and to improve productivity by implementing technological improvements to existing plants; increased price competition and the introduction of competing products by other companies; market acceptance of our technology; the ability to obtain governmental approvals and to construct facilities on terms and schedules acceptable to the Company; changes in the degree of intellectual property and other legal protection afforded to our products or technologies, or the theft of such intellectual property; compliance and other costs and potential disruption or interruption of production or operations due to accidents, interruptions in sources of raw materials, cyber security incidents, terrorism or political unrest or other unforeseen events or delays in construction or operation of facilities, including as a result of geopolitical conditions, the occurrence of acts of war or terrorist incidents or as a result of weather or natural disasters; potential liability for remedial actions and increased costs under existing or future environmental regulations, including those relating to climate change; potential liability resulting from pending or future litigation, 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; 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 three business segments, Engineered Materials, Acetate Tow and 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, 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 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
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 April 22, 2019 and also available on our website at investors.celanese.com under Financial Information/Non-GAAP Financial Measures, or at this link: http://investors.celanese.com/interactive/lookandfeel/4103411/Non-GAAP.PDF.
Results Unaudited
The results in this document, together with the adjustments made to present the results on a comparable basis, have not been audited and are based on internal financial data furnished to management. Quarterly results should not be taken as an indication of the results of operations to be reported for any subsequent period or for the full fiscal year.
Supplemental Information
Additional information about our prior period performance is included in our Quarterly Reports on Form 10-Q and in our Non-US GAAP Financial Measures and Supplemental Information document.
Consolidated Statements of Operations - Unaudited
Three Months Ended | ||||||||||||
March 31, 2019 | December 31, 2018 | March 31, 2018 | ||||||||||
(In $ millions, except share and per share data) | ||||||||||||
Net sales | 1,687 | 1,689 | 1,851 | |||||||||
Cost of sales | (1,234 | ) | (1,269 | ) | (1,336 | ) | ||||||
Gross profit | 453 | 420 | 515 | |||||||||
Selling, general and administrative expenses | (120 | ) | (134 | ) | (147 | ) | ||||||
Amortization of intangible assets | (6 | ) | (6 | ) | (6 | ) | ||||||
Research and development expenses | (16 | ) | (18 | ) | (18 | ) | ||||||
Other (charges) gains, net | 4 | — | — | |||||||||
Foreign exchange gain (loss), net | 5 | (2 | ) | (1 | ) | |||||||
Gain (loss) on disposition of businesses and assets, net | — | (1 | ) | — | ||||||||
Operating profit (loss) | 320 | 259 | 343 | |||||||||
Equity in net earnings (loss) of affiliates | 50 | 53 | 58 | |||||||||
Non-operating pension and other postretirement employee benefit (expense) income | 17 | (139 | ) | 26 | ||||||||
Interest expense | (31 | ) | (30 | ) | (33 | ) | ||||||
Refinancing expense | — | (1 | ) | — | ||||||||
Interest income | 1 | 2 | 2 | |||||||||
Dividend income - equity investments | 32 | 25 | 32 | |||||||||
Other income (expense), net | (4 | ) | 5 | 4 | ||||||||
Earnings (loss) from continuing operations before tax | 385 | 174 | 432 | |||||||||
Income tax (provision) benefit | (46 | ) | (76 | ) | (65 | ) | ||||||
Earnings (loss) from continuing operations | 339 | 98 | 367 | |||||||||
Earnings (loss) from operation of discontinued operations | (1 | ) | 4 | (2 | ) | |||||||
Income tax (provision) benefit from discontinued operations | — | (1 | ) | — | ||||||||
Earnings (loss) from discontinued operations | (1 | ) | 3 | (2 | ) | |||||||
Net earnings (loss) | 338 | 101 | 365 | |||||||||
Net (earnings) loss attributable to noncontrolling interests | (1 | ) | (2 | ) | (2 | ) | ||||||
Net earnings (loss) attributable to Celanese Corporation | 337 | 99 | 363 | |||||||||
Amounts attributable to Celanese Corporation | ||||||||||||
Earnings (loss) from continuing operations | 338 | 96 | 365 | |||||||||
Earnings (loss) from discontinued operations | (1 | ) | 3 | (2 | ) | |||||||
Net earnings (loss) | 337 | 99 | 363 | |||||||||
Earnings (loss) per common share - basic | ||||||||||||
Continuing operations | 2.65 | 0.73 | 2.69 | |||||||||
Discontinued operations | (0.01 | ) | 0.02 | (0.02 | ) | |||||||
Net earnings (loss) - basic | 2.64 | 0.75 | 2.67 | |||||||||
Earnings (loss) per common share - diluted | ||||||||||||
Continuing operations | 2.64 | 0.73 | 2.68 | |||||||||
Discontinued operations | (0.01 | ) | 0.02 | (0.02 | ) | |||||||
Net earnings (loss) - diluted | 2.63 | 0.75 | 2.66 | |||||||||
Weighted average shares (in millions) | ||||||||||||
Basic | 127.5 | 131.2 | 135.9 | |||||||||
Diluted | 128.2 | 132.1 | 136.4 | |||||||||
Consolidated Balance Sheets - Unaudited
As ofMarch 31,2019 |
As ofDecember 31,2018 |
|||||||
(In $ millions) | ||||||||
ASSETS | ||||||||
Current Assets | ||||||||
Cash and cash equivalents | 441 | 439 | ||||||
Trade receivables - third party and affiliates, net | 1,015 | 1,017 | ||||||
Non-trade receivables, net | 343 | 301 | ||||||
Inventories | 1,009 | 1,046 | ||||||
Marketable securities, at fair value | 29 | 31 | ||||||
Other assets | 47 | 40 | ||||||
Total current assets | 2,884 | 2,874 | ||||||
Investments in affiliates | 950 | 979 | ||||||
Property, plant and equipment, net | 3,721 | 3,719 | ||||||
Operating lease right-of-use assets | 210 | — | ||||||
Deferred income taxes | 93 | 84 | ||||||
Other assets | 309 | 290 | ||||||
Goodwill | 1,075 | 1,057 | ||||||
Intangible assets, net | 332 | 310 | ||||||
Total assets | 9,574 | 9,313 | ||||||
LIABILITIES AND EQUITY | ||||||||
Current Liabilities | ||||||||
Short-term borrowings and current installments of long-term debt - third party and affiliates | 743 | 561 | ||||||
Trade payables - third party and affiliates | 699 | 819 | ||||||
Other liabilities | 311 | 343 | ||||||
Income taxes payable | 69 | 56 | ||||||
Total current liabilities | 1,822 | 1,779 | ||||||
Long-term debt, net of unamortized deferred financing costs | 2,933 | 2,970 | ||||||
Deferred income taxes | 273 | 255 | ||||||
Uncertain tax positions | 162 | 158 | ||||||
Benefit obligations | 550 | 564 | ||||||
Operating lease liabilities | 193 | — | ||||||
Other liabilities | 202 | 208 | ||||||
Commitments and Contingencies | ||||||||
Stockholders' Equity | ||||||||
Treasury stock, at cost | (3,048 | ) | (2,849 | ) | ||||
Additional paid-in capital | 224 | 233 | ||||||
Retained earnings | 6,114 | 5,847 | ||||||
Accumulated other comprehensive income (loss), net | (243 | ) | (247 | ) | ||||
Total Celanese Corporation stockholders' equity | 3,047 | 2,984 | ||||||
Noncontrolling interests | 392 | 395 | ||||||
Total equity | 3,439 | 3,379 | ||||||
Total liabilities and equity | 9,574 | 9,313 | ||||||
Non-US GAAP Financial Measures and Supplemental Information
April 22, 2019
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 three business segments, Engineered Materials, Acetate Tow and 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/Documents 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/Non-GAAP Financial Measures 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
Supplemental Information
Supplemental Information we believe to be of interest to investors, analysts and other parties includes the following:
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 | ||||||||||||||||||||||||
Adjusted EBIT and Operating EBITDA - Reconciliation of Non-GAAP Measures - Unaudited | ||||||||||||||||||||||||
Q1 '19 | 2018 | Q4 '18 | Q3 '18 | Q2 '18 | Q1 '18 | |||||||||||||||||||
(In $ millions) | ||||||||||||||||||||||||
Net earnings (loss) attributable to Celanese Corporation | 337 | 1,207 | 99 | 401 |
344 |
|
363 | |||||||||||||||||
(Earnings) loss from discontinued operations | 1 | 5 | (3 | ) | 6 | — | 2 | |||||||||||||||||
Interest income | (1 | ) | (6 | ) | (2 | ) | (2 | ) | — | (2 | ) | |||||||||||||
Interest expense | 31 | 125 | 30 | 30 | 32 | 33 | ||||||||||||||||||
Refinancing expense | — | 1 | 1 | — | — | — | ||||||||||||||||||
Income tax provision (benefit) | 46 | 292 | 76 | 54 | 97 | 65 | ||||||||||||||||||
Certain Items attributable to Celanese Corporation (Table 8) |
7 | 228 | 192 | 5 | 18 | 13 | ||||||||||||||||||
Adjusted EBIT | 421 | 1,852 | 393 | 494 | 491 | 474 | ||||||||||||||||||
Depreciation and amortization expense(1) |
81 |
316 |
78 |
77 |
82 |
79 |
||||||||||||||||||
Operating EBITDA | 502 | 2,168 | 471 | 571 | 573 | 553 | ||||||||||||||||||
Q1 '19 | 2018 | Q4 '18 | Q3 '18 | Q2 '18 | Q1 '18 | |||||||||||||||||||
(In $ millions) | ||||||||||||||||||||||||
Engineered Materials | 1 | 1 | — | — | 1 | — | ||||||||||||||||||
Acetate Tow | — | 19 | 5 | 11 | 3 | — | ||||||||||||||||||
Acetyl Chain | 1 | 7 | 5 | 2 | — | — | ||||||||||||||||||
Other Activities(2) | — | — | — | — | — | — | ||||||||||||||||||
Accelerated depreciation and amortization expense | 2 | 27 | 10 | 13 | 4 | — | ||||||||||||||||||
Depreciation and amortization expense(1) | 81 | 316 | 78 | 77 | 82 | 79 | ||||||||||||||||||
Total depreciation and amortization expense | 83 | 343 | 88 | 90 | 86 | 79 |
______________________________ |
||
(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, the 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 |
||||||||||||||||||||||||||||||||||||||||||||||||
Q1 '19 | 2018 | Q4 '18 | Q3 '18 | Q2 '18 | Q1 '18 | |||||||||||||||||||||||||||||||||||||||||||
(In $ millions, except percentages) | ||||||||||||||||||||||||||||||||||||||||||||||||
Operating Profit (Loss) / Operating Margin | ||||||||||||||||||||||||||||||||||||||||||||||||
Engineered Materials | 144 | 21.7 | % | 460 | 17.7 | % | 95 | 15.3 | % | 124 | 19.3 | % | 114 | 17.2 | % | 127 | 19.1 | % | ||||||||||||||||||||||||||||||
Acetate Tow | 40 | 24.1 | % | 130 | 20.0 | % | 19 | 11.8 | % | 26 | 16.5 | % | 39 | 24.1 | % | 46 | 27.4 | % | ||||||||||||||||||||||||||||||
Acetyl Chain(1) | 202 | 22.7 | % | 1,024 | 25.3 | % | 211 | 22.5 | % | 287 | 28.5 | % | 273 | 26.0 | % | 253 | 24.1 | % | ||||||||||||||||||||||||||||||
Other Activities(2) | (66 | ) | (280 | ) | (66 | ) | (63 | ) | (68 | ) | (83 | ) | ||||||||||||||||||||||||||||||||||||
Total | 320 | 19.0 | % | 1,334 | 18.6 | % | 259 | 15.3 | % | 374 | 21.1 | % | 358 | 19.4 | % | 343 | 18.5 | % | ||||||||||||||||||||||||||||||
Less: Net Earnings (Loss) Attributable to NCI(1) | 1 | 6 | 2 | 1 | 1 | 2 | ||||||||||||||||||||||||||||||||||||||||||
Operating Profit (Loss) Attributable to Celanese Corporation | 319 | 18.9 | % | 1,328 | 18.6 | % | 257 | 15.2 | % | 373 | 21.1 | % | 357 | 19.4 | % | 341 | 18.4 | % | ||||||||||||||||||||||||||||||
Operating Profit (Loss) / Operating Margin Attributable to Celanese Corporation | ||||||||||||||||||||||||||||||||||||||||||||||||
Engineered Materials | 144 | 21.7 | % | 460 | 17.7 | % | 95 | 15.3 | % | 124 | 19.3 | % | 114 | 17.2 | % | 127 | 19.1 | % | ||||||||||||||||||||||||||||||
Acetate Tow | 40 | 24.1 | % | 130 | 20.0 | % | 19 | 11.8 | % | 26 | 16.5 | % | 39 | 24.1 | % | 46 | 27.4 | % | ||||||||||||||||||||||||||||||
Acetyl Chain(1) | 201 | 22.6 | % | 1,018 | 25.2 | % | 209 | 22.3 | % | 286 | 28.4 | % | 272 | 25.9 | % | 251 | 23.9 | % | ||||||||||||||||||||||||||||||
Other Activities(2) | (66 | ) | (280 | ) | (66 | ) | (63 | ) | (68 | ) | (83 | ) | ||||||||||||||||||||||||||||||||||||
Total | 319 | 18.9 | % | 1,328 | 18.6 | % | 257 | 15.2 | % | 373 | 21.1 | % | 357 | 19.4 | % | 341 | 18.4 | % | ||||||||||||||||||||||||||||||
Equity Earnings and Dividend Income, Other Income (Expense) Attributable to Celanese Corporation | ||||||||||||||||||||||||||||||||||||||||||||||||
Engineered Materials | 46 | 219 |
(3) |
49 | 62 | 54 | 54 | |||||||||||||||||||||||||||||||||||||||||
Acetate Tow | 32 | 116 | 25 | 26 | 33 | 32 | ||||||||||||||||||||||||||||||||||||||||||
Acetyl Chain | 1 | 8 | 1 | 2 | 3 | 2 | ||||||||||||||||||||||||||||||||||||||||||
Other Activities(2) | (1 | ) | 15 | 8 | 1 | — | 6 | |||||||||||||||||||||||||||||||||||||||||
Total | 78 | 358 | 83 | 91 | 90 | 94 | ||||||||||||||||||||||||||||||||||||||||||
Non-Operating Pension and Other Post-Retirement Employee Benefit (Expense) Income Attributable to Celanese Corporation | ||||||||||||||||||||||||||||||||||||||||||||||||
Engineered Materials | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||
Acetate Tow | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||
Acetyl Chain | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||
Other Activities(2) | 17 | (62 | ) | (139 | ) | 25 | 26 | 26 | ||||||||||||||||||||||||||||||||||||||||
Total | 17 | (62 | ) | (139 | ) | 25 | 26 | 26 | ||||||||||||||||||||||||||||||||||||||||
Certain Items Attributable to Celanese Corporation (Table 8) | ||||||||||||||||||||||||||||||||||||||||||||||||
Engineered Materials | (7 | ) | 15 | 6 | 1 | 7 | 1 | |||||||||||||||||||||||||||||||||||||||||
Acetate Tow | — | 27 | 9 | 13 | 5 | — | ||||||||||||||||||||||||||||||||||||||||||
Acetyl Chain | 1 | (4 | ) | 5 | (11 | ) | 2 | — | ||||||||||||||||||||||||||||||||||||||||
Other Activities(2) | 13 | 190 | 172 | 2 | 4 | 12 | ||||||||||||||||||||||||||||||||||||||||||
Total | 7 | 228 | 192 | 5 | 18 | 13 | ||||||||||||||||||||||||||||||||||||||||||
Adjusted EBIT / Adjusted EBIT Margin | ||||||||||||||||||||||||||||||||||||||||||||||||
Engineered Materials | 183 | 27.6 | % | 694 | 26.8 | % | 150 | 24.1 | % | 187 | 29.1 | % | 175 | 26.4 | % | 182 | 27.4 | % | ||||||||||||||||||||||||||||||
Acetate Tow | 72 | 43.4 | % | 273 | 42.1 | % | 53 | 32.9 | % | 65 | 41.1 | % | 77 | 47.5 | % | 78 | 46.4 | % | ||||||||||||||||||||||||||||||
Acetyl Chain | 203 | 22.8 | % | 1,022 | 25.3 | % | 215 | 23.0 | % | 277 | 27.5 | % | 277 | 26.4 | % | 253 | 24.1 | % | ||||||||||||||||||||||||||||||
Other Activities(2) | (37 | ) | (137 | ) | (25 | ) | (35 | ) | (38 | ) | (39 | ) | ||||||||||||||||||||||||||||||||||||
Total | 421 | 25.0 | % | 1,852 | 25.9 | % | 393 | 23.3 | % | 494 | 27.9 | % | 491 | 26.6 | % | 474 | 25.6 | % |
___________________________ |
||
(1) |
Net earnings (loss) attributable to NCI is included within the Acetyl Chain segment. | |
(2) |
Other Activities includes corporate SG&A expenses, the 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). | |
(3) |
Includes $218 million of Equity in net earnings (loss) of affiliates and $1 million of Other income. |
Table 2 - Supplemental Segment Data and Reconciliation of Segment Adjusted EBIT and Operating EBITDA - Non-GAAP Measures - Unaudited (cont.) |
||||||||||||||||||||||||||||||||||||||||||||||||
Q1 '19 | 2018 | Q4 '18 | Q3 '18 | Q2 '18 | Q1 '18 | |||||||||||||||||||||||||||||||||||||||||||
(In $ millions, except percentages) | ||||||||||||||||||||||||||||||||||||||||||||||||
Depreciation and Amortization Expense(1) | ||||||||||||||||||||||||||||||||||||||||||||||||
Engineered Materials | 31 | 125 | 30 | 31 | 32 | 32 | ||||||||||||||||||||||||||||||||||||||||||
Acetate Tow | 10 | 39 | 9 | 10 | 10 | 10 | ||||||||||||||||||||||||||||||||||||||||||
Acetyl Chain | 37 | 141 | 36 | 34 | 36 | 35 | ||||||||||||||||||||||||||||||||||||||||||
Other Activities(2) | 3 | 11 | 3 | 2 | 4 | 2 | ||||||||||||||||||||||||||||||||||||||||||
Total | 81 | 316 | 78 | 77 | 82 | 79 | ||||||||||||||||||||||||||||||||||||||||||
Operating EBITDA / Operating EBITDA Margin | ||||||||||||||||||||||||||||||||||||||||||||||||
Engineered Materials | 214 | 32.3 | % | 819 | 31.6 | % | 180 | 28.9 | % | 218 | 34.0 | % | 207 | 31.2 | % | 214 | 32.2 | % | ||||||||||||||||||||||||||||||
Acetate Tow | 82 | 49.4 | % | 312 | 48.1 | % | 62 | 38.5 | % | 75 | 47.5 | % | 87 | 53.7 | % | 88 | 52.4 | % | ||||||||||||||||||||||||||||||
Acetyl Chain | 240 | 27.0 | % | 1,163 | 28.8 | % | 251 | 26.8 | % | 311 | 30.9 | % | 313 | 29.8 | % | 288 | 27.4 | % | ||||||||||||||||||||||||||||||
Other Activities(2) | (34 | ) | (126 | ) | (22 | ) | (33 | ) | (34 | ) | (37 | ) | ||||||||||||||||||||||||||||||||||||
Total | 502 | 29.8 | % | 2,168 | 30.3 | % | 471 | 27.9 | % | 571 | 32.2 | % | 573 | 31.1 | % | 553 | 29.9 | % |
___________________________ | ||
(1) |
Excludes accelerated depreciation and amortization expense, which amounts are included in Certain Items above. See Table 1 for details. | |
(2) |
Other Activities includes corporate SG&A expenses, the results of captive insurance companies and certain components of net periodic benefit cost (interest cost, expected return on plan assets and net actuarial gains and losses). |
Table 3 | ||||||||||||||||||||||||||||||||||||||||||
Adjusted Earnings (Loss) per Share - Reconciliation of a Non-GAAP Measure - Unaudited | ||||||||||||||||||||||||||||||||||||||||||
Q1 '19 | 2018 | Q4 '18 | Q3 '18 | Q2 '18 | Q1 '18 | |||||||||||||||||||||||||||||||||||||
per | per | per | per | per | per | |||||||||||||||||||||||||||||||||||||
share | share | share | share | share | share | |||||||||||||||||||||||||||||||||||||
(In $ millions, except per share data) | ||||||||||||||||||||||||||||||||||||||||||
Earnings (loss) from continuing operations attributable to Celanese Corporation | 338 | 2.64 | 1,212 | 8.95 | 96 | 0.73 | 407 | 3.00 | 344 | 2.52 | 365 | 2.68 | ||||||||||||||||||||||||||||||
Income tax provision (benefit) | 46 | 292 | 76 | 54 | 97 | 65 | ||||||||||||||||||||||||||||||||||||
Earnings (loss) from continuing operations before tax | 384 | 1,504 | 172 | 461 | 441 | 430 | ||||||||||||||||||||||||||||||||||||
Certain Items attributable to Celanese Corporation (Table 8) |
7 |
|
228 |
|
192 |
|
5 |
|
18 |
|
13 |
|
||||||||||||||||||||||||||||||
Refinancing and related expenses | — | 1 | 1 | — | — | — | ||||||||||||||||||||||||||||||||||||
Adjusted earnings (loss) from continuing operations before tax | 391 | 1,733 | 365 | 466 | 459 | 443 | ||||||||||||||||||||||||||||||||||||
Income tax (provision) benefit on adjusted earnings(1) | (55 | ) | (243 | ) | (51 | ) | (65 | ) | (64 | ) | (62 | ) | ||||||||||||||||||||||||||||||
Adjusted earnings (loss) from continuing operations(2) | 336 | 2.62 | 1,490 | 11.00 | 314 | 2.38 | 401 | 2.96 | 395 | 2.90 | 381 | 2.79 | ||||||||||||||||||||||||||||||
Diluted shares (in millions)(3) | ||||||||||||||||||||||||||||||||||||||||||
Weighted average shares outstanding | 127.5 | 134.3 | 131.2 | 134.5 | 135.6 | 135.9 | ||||||||||||||||||||||||||||||||||||
Incremental shares attributable to equity awards | 0.7 | 1.1 | 0.9 | 1.0 | 0.7 | 0.5 | ||||||||||||||||||||||||||||||||||||
Total diluted shares | 128.2 | 135.4 | 132.1 | 135.5 | 136.3 | 136.4 |
______________________________ | ||
(1) |
Calculated using adjusted effective tax rates (Table 3a) as follows: |
Q1 '19 | 2018 | Q4 '18 | Q3 '18 | Q2 '18 | Q1 '18 | |||||||||||||||||||||||||||||
(In percentages) | ||||||||||||||||||||||||||||||||||
Adjusted effective tax rate | 14 | 14 | 14 | 14 | 14 | 14 |
(2) |
Excludes the immediate recognition of actuarial gains and losses and the impact of actual vs. expected plan asset returns. |
Actual PlanAsset Returns |
Expected PlanAsset Returns |
||||||||
(In percentages) | |||||||||
2018 | (3.9 | ) | 6.7 |
(3) |
Potentially dilutive shares are included in the adjusted earnings per share calculation when adjusted earnings are positive. |
Table 3a |
||||||||
Adjusted Tax Rate - Reconciliation of a Non-GAAP Measure - Unaudited | ||||||||
Estimated | Actual | |||||||
2019 | 2018 | |||||||
(In percentages) | ||||||||
US GAAP annual effective tax rate | 14 | 19 | ||||||
Discrete quarterly recognition of GAAP items(1) | 1 | — | ||||||
Tax impact of other charges and adjustments(2) | 1 | — | ||||||
Utilization of foreign tax credits | (2 | ) | — | |||||
Changes in valuation allowances, excluding impact of other charges and adjustments(3) | 1 | (5 | ) | |||||
Other(4) | (1 | ) | — | |||||
Adjusted tax rate | 14 | 14 |
______________________________ | ||
Note: As part of the year-end reconciliation, we will update the reconciliation of the GAAP effective tax rate for actual results. |
||
(1) |
Such as changes in tax laws (including US tax reform), deferred taxes on outside basis differences, changes in uncertain tax positions and prior year audit adjustments. | |
(2) |
Reflects the tax impact on pre-tax adjustments presented in Certain Items (Table 8), which are excluded from pre-tax income for adjusted earnings per share purposes. | |
(3) |
Reflects changes in valuation allowances related to changes in judgment regarding the realizability of deferred tax assets or current year operations, excluding other charges and adjustments. | |
(4) |
Tax impacts related to full-year forecasted tax opportunities and related costs. |
Table 4 | ||||||||||||||||||||||||
Net Sales by Segment - Unaudited | ||||||||||||||||||||||||
Q1 '19 | 2018 | Q4 '18 | Q3 '18 | Q2 '18 | Q1 '18 | |||||||||||||||||||
(In $ millions) | ||||||||||||||||||||||||
Engineered Materials | 663 | 2,593 | 622 | 642 | 664 | 665 | ||||||||||||||||||
Acetate Tow | 166 | 649 | 161 | 158 | 162 | 168 | ||||||||||||||||||
Acetyl Chain | 889 | 4,042 | 936 | 1,006 | 1,049 | 1,051 | ||||||||||||||||||
Other Activities(1) | — | — | — | — | — | — | ||||||||||||||||||
Intersegment eliminations(2) | (31 | ) | (129 | ) | (30 | ) | (35 | ) | (31 | ) | (33 | ) | ||||||||||||
Net sales | 1,687 | 7,155 | 1,689 | 1,771 | 1,844 | 1,851 |
___________________________ | ||
(1) |
Other Activities includes corporate SG&A expenses, the 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). | |
(2) |
Includes intersegment sales primarily related to the Acetyl Chain. |
Table 4a | ||||||||||||||||||||||
Factors Affecting Segment Net Sales Sequentially - Unaudited | ||||||||||||||||||||||
Three Months Ended March 31, 2019 Compared to Three Months Ended December 31, 2018 | ||||||||||||||||||||||
Volume | Price | Currency | Other | Total | ||||||||||||||||||
(In percentages) | ||||||||||||||||||||||
Engineered Materials | 5 | 2 | — | — | 7 | (1) | ||||||||||||||||
Acetate Tow | 1 | 2 | — | — | 3 | |||||||||||||||||
Acetyl Chain | 5 | (10 | ) | — | — | (5 | ) | |||||||||||||||
Total Company | 5 | (5 | ) | — | — | — |
Three Months Ended December 31, 2018 Compared to Three Months Ended September 30, 2018 |
||||||||||||||||||||
Volume | Price | Currency | Other | Total | ||||||||||||||||
(In percentages) | ||||||||||||||||||||
Engineered Materials | (4 | ) | 2 | (1 | ) | — | (3 | ) | ||||||||||||
Acetate Tow | 2 | (1 | ) | — | — | 1 | ||||||||||||||
Acetyl Chain | (3 | ) | (4 | ) | (1 | ) | 1 | (7 | ) | |||||||||||
Total Company | (3 | ) | (2 | ) | (1 | ) | 1 | (5 | ) |
Three Months Ended September 30, 2018 Compared to Three Months Ended June 30, 2018 |
||||||||||||||||||||
Volume | Price | Currency | Other | Total | ||||||||||||||||
(In percentages) | ||||||||||||||||||||
Engineered Materials | (2 | ) | — | (1 | ) | — | (3 | ) | ||||||||||||
Acetate Tow | (2 | ) | — | — | — | (2 | ) | |||||||||||||
Acetyl Chain | (4 | ) | 2 | (2 | ) | — | (4 | ) | ||||||||||||
Total Company | (3 | ) | 1 | (2 | ) | — | (4 | ) |
Three Months Ended June 30, 2018 Compared to Three Months Ended March 31, 2018 |
||||||||||||||||||||
Volume | Price | Currency | Other | Total | ||||||||||||||||
(In percentages) | ||||||||||||||||||||
Engineered Materials | (1 | ) | 3 | (2 | ) | — | — | |||||||||||||
Acetate Tow | (3 | ) | — | (1 | ) | — | (4 | ) | ||||||||||||
Acetyl Chain | (2 | ) | 4 | (1 | ) | (1 | ) | — | ||||||||||||
Total Company | (2 | ) | 3 | (1 | ) | — | — |
Three Months Ended March 31, 2018 Compared to Three Months Ended December 31, 2017 |
||||||||||||||||||||||
Volume | Price | Currency | Other | Total | ||||||||||||||||||
(In percentages) | ||||||||||||||||||||||
Engineered Materials | 10 | 3 | 2 | — | 15 | (2) | ||||||||||||||||
Acetate Tow | 8 | — | — | — | 8 | |||||||||||||||||
Acetyl Chain | 8 | 9 | 3 | (2 | ) | 18 | ||||||||||||||||
Total Company | 9 | 6 | 2 | (1 | ) | 16 |
_________________________ | ||
(1) |
2019 includes the effect of the acquisition of Next Polymers Ltd. | |
(2) |
2018 includes the effect of the acquisition of Omni Plastics, L.L.C. |
Table 4b | ||||||||||||||||||||
Factors Affecting Segment Net Sales Year Over Year - Unaudited | ||||||||||||||||||||
Three Months Ended March 31, 2019 Compared to Three Months Ended March 31, 2018 | ||||||||||||||||||||
Volume | Price | Currency | Other | Total | ||||||||||||||||
(In percentages) | ||||||||||||||||||||
Engineered Materials | (3 | ) | 7 | (4 | ) | — | — | |||||||||||||
Acetate Tow | (1 | ) | — | — | — | (1 | ) | |||||||||||||
Acetyl Chain | (4 | ) | (8 | ) | (3 | ) | — | (15 | ) | |||||||||||
Total Company | (3 | ) | (2 | ) | (4 | ) | — | (9 | ) |
Three Months Ended December 31, 2018 Compared to Three Months Ended December 31, 2017 |
||||||||||||||||||||
Volume | Price | Currency | Other | Total | ||||||||||||||||
(In percentages) | ||||||||||||||||||||
Engineered Materials | 2 | 7 | (2 | ) | — |
7 |
|
|||||||||||||
Acetate Tow | 5 | (2 | ) | — | — | 3 | ||||||||||||||
Acetyl Chain | (2 | ) | 10 | (2 | ) | (1 | ) | 5 | ||||||||||||
Total Company | — | 8 | (2 | ) | — | 6 |
Three Months Ended September 30, 2018 Compared to Three Months Ended September 30, 2017 |
||||||||||||||||||||
Volume | Price | Currency | Other | Total | ||||||||||||||||
(In percentages) | ||||||||||||||||||||
Engineered Materials | 7 | 6 | (1 | ) | — |
12 |
|
|||||||||||||
Acetate Tow | 5 | (3 | ) | — | (1 | ) | 1 | |||||||||||||
Acetyl Chain | (3 | ) | 22 | — | (2 | ) | 17 | |||||||||||||
Total Company | 1 | 14 | (1 | ) | (1 | ) | 13 |
Three Months Ended June 30, 2018 Compared to Three Months Ended June 30, 2017 |
||||||||||||||||||||
Volume | Price | Currency | Other | Total | ||||||||||||||||
(In percentages) | ||||||||||||||||||||
Engineered Materials | 11 | 7 | 4 | — | 22 | |||||||||||||||
Acetate Tow | 1 | (2 | ) | — | — | (1 | ) | |||||||||||||
Acetyl Chain | 6 | 19 | 5 | (3 | ) | 27 | ||||||||||||||
Total Company | 7 | 13 | 4 | (2 | ) | 22 |
Three Months Ended March 31, 2018 Compared to Three Months Ended March 31, 2017 |
||||||||||||||||||||
Volume | Price | Currency | Other | Total | ||||||||||||||||
(In percentages) | ||||||||||||||||||||
Engineered Materials | 19 | 3 | 7 | — | 29 | |||||||||||||||
Acetate Tow | (9 | ) | (4 | ) | 1 | — | (12 | ) | ||||||||||||
Acetyl Chain | 3 | 25 | 7 | (3 | ) | 32 | ||||||||||||||
Total Company | 7 | 14 | 6 | (1 | ) | 26 |
Table 4c | ||||||||||||||||||||
Factors Affecting Segment Net Sales Year Over Year - Unaudited | ||||||||||||||||||||
Year Ended December 31, 2018 Compared to Year Ended December 31, 2017 | ||||||||||||||||||||
Volume | Price | Currency | Other | Total | ||||||||||||||||
(In percentages) | ||||||||||||||||||||
Engineered Materials | 9 | 6 | 2 | — | 17 | |||||||||||||||
Acetate Tow | — | (3 | ) | — | — | (3 | ) | |||||||||||||
Acetyl Chain | 1 | 19 | 2 | (2 | ) | 20 | ||||||||||||||
Total Company | 4 | 12 | 2 | (1 | ) | 17 |
Table 5 | ||||||||||||||||||||||||
Free Cash Flow - Reconciliation of a Non-GAAP Measure - Unaudited | ||||||||||||||||||||||||
Q1 '19 | 2018 | Q4 '18 | Q3 '18 | Q2 '18 | Q1 '18 | |||||||||||||||||||
(In $ millions, except percentages) |
||||||||||||||||||||||||
Net cash provided by (used in) investing activities | (177 | ) | (507 | ) | (98 | ) | (78 | ) | (96 | ) | (235 | ) | ||||||||||||
Net cash provided by (used in) financing activities | (130 | ) | (1,165 | ) | (526 | ) | (383 | ) | (254 | ) | (2 | ) | ||||||||||||
Net cash provided by (used in) operating activities | 307 | 1,558 | 363 | 467 | 585 | 143 | ||||||||||||||||||
Capital expenditures on property, plant and equipment | (79 | ) | (337 | ) | (93 | ) | (79 | ) | (79 | ) | (86 | ) | ||||||||||||
Capital (distributions to) contributions from NCI | (4 | ) | (23 | ) | (9 | ) | (6 | ) | (6 | ) | (2 | ) | ||||||||||||
Free cash flow(1)(2) | 224 | 1,198 | 261 | 382 | 500 | 55 | ||||||||||||||||||
Net sales | 1,687 | 7,155 | 1,689 | 1,771 | 1,844 | 1,851 | ||||||||||||||||||
Free cash flow as % of Net sales | 13.3 | % | 16.7 | % | 15.5 | % | 21.6 | % | 27.1 | % | 3.0 | % |
______________________________ | ||
(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 capital contributions from or distributions to Mitsui & Co., Ltd. ("Mitsui") related to our joint venture, Fairway Methanol LLC ("Fairway"). | |
(2) |
Excludes required debt service and finance lease payments of $24 million and $63 million for the years ending December 31, 2019 and 2018, respectively. |
Table 6 | ||||||||||||||||||||||||
Cash Dividends Received - Unaudited | ||||||||||||||||||||||||
Q1 '19 | 2018 | Q4 '18 | Q3 '18 | Q2 '18 | Q1 '18 | |||||||||||||||||||
(In $ millions) | ||||||||||||||||||||||||
Dividends from equity method investments | 70 | 221 | 62 | 44 | 39 |
76 |
|
|||||||||||||||||
Dividends from equity investments without readily determinable fair values | 32 | 117 | 25 | 26 | 34 | 32 | ||||||||||||||||||
Total | 102 | 338 | 87 | 70 | 73 | 108 |
Table 7 | ||||||||||||||||||||||||
Net Debt - Reconciliation of a Non-GAAP Measure - Unaudited | ||||||||||||||||||||||||
Q1 '19 | 2018 | Q4 '18 | Q3 '18 | Q2 '18 | Q1 '18 | |||||||||||||||||||
(In $ millions) | ||||||||||||||||||||||||
Short-term borrowings and current installments of long-term debt - third party and affiliates | 743 | 561 | 561 | 229 | 366 | 425 | ||||||||||||||||||
Long-term debt, net of unamortized deferred financing costs | 2,933 | 2,970 | 2,970 | 3,196 | 3,228 | 3,343 | ||||||||||||||||||
Total debt | 3,676 | 3,531 | 3,531 | 3,425 | 3,594 | 3,768 | ||||||||||||||||||
Cash and cash equivalents | (441 | ) | (439 | ) | (439 | ) | (703 | ) | (708 | ) | (490 | ) | ||||||||||||
Net debt | 3,235 | 3,092 | 3,092 | 2,722 | 2,886 | 3,278 |
Table 8 | |||||||||||||||||||||||||||
Certain Items - Unaudited | |||||||||||||||||||||||||||
The following Certain Items attributable to Celanese Corporation are included in Net earnings (loss) and are adjustments to non-GAAP measures: |
|||||||||||||||||||||||||||
Q1 '19 | 2018 | Q4 '18 | Q3 '18 | Q2 '18 | Q1 '18 | Income Statement Classification | |||||||||||||||||||||
(In $ millions) | |||||||||||||||||||||||||||
Plant/office closures | 3 | 19 | 16 | — | 3 | — | Cost of sales / Other charges (gains), net | ||||||||||||||||||||
Mergers and acquisitions | 3 | 33 | 6 | 3 | 11 | 13 | Cost of sales / SG&A | ||||||||||||||||||||
Actuarial (gain) loss on pension and postretirement plans | — | 166 | 166 | — | — | — | Cost of sales / SG&A / Non-operating pension and other postretirement employee benefit expense (income) | ||||||||||||||||||||
Restructuring | (1 | ) | 9 | 4 | 2 | 3 | — | SG&A / Other charges (gains), net / Non-operating pension and other postretirement employee benefit expense (income) | |||||||||||||||||||
Other | 2 | 1 | — | — | 1 | — | Cost of sales / SG&A / Other charges (gains), net | ||||||||||||||||||||
Certain Items attributable to Celanese Corporation | 7 | 228 | 192 | 5 | 18 | 13 |
Table 9 | ||||||||||||
Return on Invested Capital (Adjusted) - Presentation of a Non-GAAP Measure - Unaudited | ||||||||||||
2018 | ||||||||||||
(In $ millions,except percentages) |
||||||||||||
Net earnings (loss) attributable to Celanese Corporation | 1,207 | |||||||||||
Adjusted EBIT (Table 1) |
1,852 | |||||||||||
Adjusted effective tax rate (Table 3a) | 14 | % | ||||||||||
Adjusted EBIT tax effected | 1,593 | |||||||||||
2018 | 2017 | Average | ||||||||||
(In $ millions, except percentages) | ||||||||||||
Short-term borrowings and current installments of long-term debt - third parties and affiliates | 561 | 326 | 444 | |||||||||
Long-term debt, net of unamortized deferred financing costs | 2,970 | 3,315 | 3,143 | |||||||||
Celanese Corporation stockholders' equity | 2,984 | 2,887 | 2,936 | |||||||||
Invested capital | 6,523 | |||||||||||
Return on invested capital (adjusted) | 24.4 | % | ||||||||||
Net earnings (loss) attributable to Celanese Corporation as a percentage of invested capital | 18.5 | % | ||||||||||
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