EX-99.1 2 q320128-kex991.htm EARNINGS RELEASE Q3 2012 8-K EX99.1


Exhibit 99.1
 
Celanese Corporation
 
222 West Las Colinas Blvd.
 
Suite 900N
 
Irving, Texas 75039
Celanese Corporation Reports Third Quarter 2012 Results
Dallas, October 22, 2012: Celanese Corporation (NYSE: CE), a global technology and specialty materials company, today reported third quarter 2012 adjusted earnings per share of $0.93. This compares with $1.27 in the prior year period. Increased volumes and expanded operating margins in the company's portfolio of businesses focused on customer-oriented solutions, which includes Advanced Engineered Materials, and Consumer and Industrial Specialties, were offset by lower margins in Acetyl Intermediates due to continued soft demand and lower pricing across acetyl products and derivatives. Diluted earnings per share from continuing operations for the quarter were $0.74 compared with $1.05 last year.
 
 
 
Three Months Ended
 
Nine Months Ended
 
September 30,
 
September 30,
(in $ millions, except per share data) - Unaudited
2012
 
2011
 
2012
 
2011
Net sales
1,609

 
1,807

 
4,917

 
5,149

Operating profit (loss)
163

 
196

 
425

 
593

Net earnings (loss) attributable to Celanese Corporation
117

 
167

 
510

 
512

Operating EBITDA 1
298

 
374

 
955

 
1,119

Diluted EPS - continuing operations
$
0.74

 
$
1.05

 
$
3.21

 
$
3.21

Diluted EPS - total
$
0.73

 
$
1.05

 
$
3.20

 
$
3.22

Adjusted EPS 2
$
0.93

 
$
1.27

 
$
3.13

 
$
3.89

1 Non-U.S. GAAP measure. See reconciliation in Table 1A.
2 Non-U.S. GAAP measure. See reconciliation in Table 6.
"Celanese delivered on its commitments with a solid quarter amid a challenging economic environment. Our customer-oriented solution businesses generated strong results, reflecting the value we provide to our customers, but demand for acetyl products and derivatives remained at trough-like conditions. The Advanced Engineered Materials and Consumer Specialties businesses each expanded operating EBITDA margins sequentially and year-over-year, excluding affiliate earnings," said Mark Rohr, chairman and chief executive officer. "Celanese's strong operating cash flow in the third quarter enabled the company to improve its net debt position by $124 million from the prior quarter. We will continue to pursue our balanced capital deployment strategy to optimize value for our shareholders."
Operating profit for the quarter was $163 million compared with $196 million in the prior year on expanded operating margins in the company's customer-oriented solution businesses which were offset by lower margins in Acetyl Intermediates. The tax rate and diluted share count for adjusted earnings per share in the third quarter were 17 percent and 160.1 million, respectively. Net earnings were $117 million in the third quarter of 2012 compared with the prior year results of $167 million.

1



Net sales in the third quarter were $1,609 million compared to $1,807 million in the prior year. The company's portfolio of customer-oriented solution businesses delivered increased year-over-year volumes, but the lower sales in the quarter were primarily driven by lower pricing in its Acetyl Intermediates and Industrial Specialties businesses, as well as unfavorable currency impacts across the company.
Recent Highlights
Started up the company's technology development unit for ethanol production at its facility in Clear Lake, Texas. The unit will support the company's continuing development of TCX® ethanol process technology for customers in both industrial-grade and fuel ethanol.
Announced the company's new CelFXTM matrix technology for filter media. CelFXTM provides a flexible additive platform for innovation that allows our customers increased filter design flexibility, improved constituent reduction and supports a broad choice for enhancement additives.
Increased the company's share repurchase authorization to $400 million. As of September 30, 2012, the company had $136 million remaining under its previous authorization.
Third Quarter Business Segment Overview
Advanced Engineered Materials
Advanced Engineered Materials delivered sustained results despite the impact of weaker economic conditions in Europe. Net sales were $322 million compared with $332 million in the prior year period. Pricing was up by 3 percent, reflecting the value of its innovative, customer-oriented solutions. Net sales, however, were negatively impacted by unfavorable currency. Stronger volumes in the Americas and Asia were more than offset by softer European demand across the majority of its product lines. Operating EBITDA was $109 million compared with $112 million in the prior year period as the higher pricing was offset by lower equity earnings and currency impacts. Equity earnings from the company's affiliates were $45 million compared with $52 million in the prior year period, driven by lower methyl tertiary-butyl ether (MTBE) pricing in the company's Ibn Sina affiliate. Operating profit in the third quarter of 2012 was $43 million compared with $14 million in the same period last year, primarily due to other charges and other adjustments in the third quarter of 2011 related to the company's startup and expansion of its polyacetal (POM) facility in Frankfurt Hoechst Industrial Park, Germany.
Consumer Specialties
Consumer Specialties delivered improved year-over-year performance reflecting the value-added applications it provides to its global customer base. Net sales increased to $314 million compared with $298 million in the same period last year, primarily driven by 6 percent higher year-over-year pricing on continued strong global demand. Operating EBITDA was $87 million compared with $78 million in the same period last year as operating EBITDA margins expanded on the higher pricing. Operating profit in the quarter increased to $70 million from $66 million last year.
Industrial Specialties
Industrial Specialties' net sales in the third quarter of 2012 were $297 million compared with $332 million in the prior year period. Volumes increased by 2 percent year-over-year, primarily due to increased demand in North America and Asia, partially offset by lower European volumes. However, pricing in the quarter was lower than the prior year period due to weaker demand in its Ethylene Vinyl Acetate (EVA) applications and lower raw material costs. Third quarter results were also negatively

2



impacted by the Euro. Operating EBITDA was $36 million compared with $43 million in the prior year period as record results in Emulsions this quarter were more than offset by lower demand for EVA applications. Operating profit in the third quarter of 2012 was $23 million compared with $30 million in the prior year period.
Acetyl Intermediates
Acetyl Intermediates' net sales in the third quarter of 2012 were $785 million compared with $975 million in the same period last year, primarily due to lower pricing and demand across the acetyl chain, as well as negative currency impacts. The lower pricing in the period reflects continued weak economic conditions in Europe and Asia which contributed to softer global demand for acetyl products. Additionally, temporarily elevated industry utilization in the third quarter of 2011 due to planned and unplanned outages of acetyl producers resulted in higher industry pricing in the prior year period. Operating EBITDA in the third quarter of 2012 was $91 million compared with $168 million in the same period last year, primarily due to the lower pricing which was partially offset by lower raw material costs. Operating profit in the current period was $62 million compared with $128 million in the same period last year.
Taxes
The tax rate for adjusted earnings per share was 17 percent in the third quarter of 2012 and the third quarter of 2011. The effective tax rate for continuing operations for the third quarter of 2012 was 31 percent compared with 17 percent in the same period last year. The higher effective tax rate in the third quarter of 2012 was primarily due to changes in uncertain tax positions. Net cash taxes paid were $54 million in the first nine months of 2012 which were comparable with $48 million in the first nine months of 2011.
Strategic Investments
Earnings from equity investments, which are reflected in the company's earnings and operating EBITDA, were $50 million in the third quarter of 2012, a $7 million decrease from the prior year period primarily due to lower MTBE pricing in the company's Ibn Sina affiliate. The cash flow impact of equity investments was $37 million, a $10 million decrease from the prior year period, also related to the company's Ibn Sina affiliate.
Cash Flow
During the first nine months of 2012, the company generated $661 million in cash from operating activities, an $180 million increase from the same period last year, primarily driven by lower trade working capital versus the prior year period. Cash used in investing activities during the first nine months of 2012 was $397 million compared with $296 million in the same period last year. The 2012 results include the company's acquisition of two product lines from Ashland Inc. and investments in other productive assets. In 2011, we received the final payment of $158 million associated with the relocation of our POM operations in Germany, partially offset by lower related capital expenditures in the current period. Net cash used in financing activities during the first nine months of 2012 was $21 million compared with $224 million in the prior year period. During the second quarter of 2011, the company used a net of $116 million to prepay a portion of one of its term loan facilities. Net debt at the end of the third quarter of 2012 was $2,052 million, a $283 million decrease from the end of 2011.


3



Outlook
"We expect the challenging global economic environment will continue into 2013. Despite this and normal seasonality, we expect fourth quarter 2012 adjusted earnings will be modestly higher than the prior year, reflecting the progress we are making on actions that are within our control. For 2013, we expect earnings growth will be driven by Celanese-specific initiatives and be consistent with our long-term growth objectives of 12 to 14 percent," said Rohr. "We will continue to focus on technology platforms that expand the company's addressable opportunities and invest in technology innovation that enhances our growth prospects."
The company's earnings presentation and prepared remarks related to the third quarter results will be posted on its website at www.celanese.com in the investor section after market close on October 22.
Contacts:
 
 
 
 
Investor Relations
 
Media - U.S.
 
Media - Europe
Jon Puckett
 
Linda Beheler
 
Jens Kurth
Phone: +1 972 443 4965
 
Phone: +1 972 443 4924
 
Phone: +49(0)69 45009 1574
Telefax: +1 972 443 8519
 
Telefax: +1 972 443 8519
 
Telefax: +49(0) 45009 58800
Jon.Puckett@celanese.com
 
Linda.Beheler@celanese.com
 
J.Kurth@celanese.com
Celanese Corporation is a global technology leader in the production of specialty materials and chemical products that are used in most major industries and consumer applications. Our products, essential to everyday living, are manufactured in North America, Europe and Asia. Known for operational excellence, sustainability and premier safety performance, Celanese delivers value to customers around the globe with best-in-class technologies. Based in Dallas, Texas, the company employs approximately 7,600 employees worldwide and had 2011 net sales of $6.8 billion, with approximately 73% generated outside of North America. For more information about Celanese Corporation and its global product offerings, visit www.celanese.com or the company's 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. When used in this release, the words “outlook,” “forecast,” “estimates,” “expects,” “anticipates,” “projects,” “plans,” “intends,” “believes,” “may,” “can,” “could,” “might,” “will” and variations of such words or similar expressions are intended to identify forward-looking statements. 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, 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 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 technology, or the theft of such intellectual property; compliance and other costs and potential disruption or interruption of production or operations due to accidents, 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, including 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.

4



Reconciliation of Non-U.S. GAAP Measures to U.S. GAAP
This release reflects the following performance measures: operating EBITDA, business operating EBITDA, affiliate EBITDA and proportional affiliate EBITDA, adjusted earnings per share and net debt as non-U.S. GAAP measures. These measurements are not recognized in accordance with U.S. GAAP and should not be viewed as an alternative to U.S. GAAP measures of performance. The most directly comparable financial measure presented in accordance with U.S. GAAP in our consolidated financial statements for operating EBITDA and business operating EBITDA is net income; for proportional affiliate EBITDA is equity in net earnings of affiliates; for affiliate EBITDA is operating profit; for adjusted earnings per share is earnings per common share-diluted; and for net debt is total debt.
Use of Non-U.S. GAAP Financial Information

Operating EBITDA is defined by the company as net earnings less interest income plus loss (earnings) from discontinued operations, interest expense, taxes, and depreciation and amortization, and further adjusted for Other Charges and Adjustments as described in Table 7. We present operating EBITDA because we consider it an important supplemental measure of our operations and financial performance. We believe that operating EBITDA is more reflective of our operations as it provides transparency to investors and enhances period-to-period comparability of our operations and financial performance. Operating EBITDA is one of the measures management uses for its planning and budgeting process to monitor and evaluate financial and operating results and for the company's incentive compensation plan. Operating EBITDA should not be considered as an alternative to net income determined in accordance with U.S. GAAP. We may provide guidance on operating EBITDA and are unable to reconcile forecasted operating EBITDA to a U.S. GAAP financial measure because a forecast of Other Charges and Adjustments is not practical.
Business operating EBITDA is defined by the company as net earnings less interest income plus loss (earnings) from discontinued operations, interest expense, taxes and depreciation and amortization, and further adjusted for Other Charges and Adjustments as described in Table 7, less equity in net earnings of affiliates, dividend income from cost investments and other (income) expense. This supplemental performance measure reflects the operating results of the company's operations without regard to the financial impact of its equity and cost investments.
Affiliate EBITDA is defined by the company as operating profit plus the depreciation and amortization of its equity affiliates. Proportional affiliate EBITDA, a measure used by management to measure performance of its equity investments, is defined by the company as the proportional operating profit plus the proportional depreciation and amortization of its equity investments. The company has determined that it does not have sufficient ownership for operating control of these investments to consider their results on a consolidated basis. The company believes that investors should consider proportional affiliate EBITDA as an additional measure of operating results.
Adjusted earnings per share is a measure used by management to measure performance. It is defined by the company as net earnings (loss) available to common shareholders plus preferred dividends, adjusted for other charges and adjustments, and divided by the number of basic common shares, diluted preferred shares, and options valued using the treasury method. We may provide guidance on an adjusted earnings per share basis and are unable to reconcile forecasted adjusted earnings per share to a U.S. GAAP financial measure without unreasonable effort because a forecast of Other Items is not practical. We believe that the presentation of this non-U.S. GAAP measure provides useful information to management and investors regarding various financial and business trends relating to our financial condition and results of operations, and that when U.S. GAAP information is viewed in conjunction with non-U.S. GAAP information, investors are provided with a more meaningful understanding of our ongoing operating performance. Note: 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, where applicable, and specifically excludes changes in uncertain tax positions, discrete items and other material items adjusted out of our U.S. GAAP earnings for adjusted earnings per share purposes, and changes in management's assessments regarding the ability to realize deferred tax assets. We analyze this rate quarterly and adjust 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 tax rate used for U.S. GAAP reporting in any given reporting period. It is not practical to reconcile our prospective adjusted tax rate to the actual U.S. GAAP tax rate in any given future period.
Net debt is defined by the company as total debt less cash and cash equivalents. We believe that the presentation of this non-U.S. GAAP measure provides useful information to management and investors regarding changes to the company's capital structure. Our management and credit analysts use net debt to evaluate the company's capital structure and assess credit quality. Proportional net debt is defined as our proportionate share of our affiliates' net debt.
Results Unaudited
The results presented in this release, 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.




5



Consolidated Statements of Operations - Unaudited
 
Three Months Ended
 
Nine Months Ended
 
September 30,
 
September 30,
(in $ millions, except share and per share data)
2012
 
2011
 
2012
 
2011
Net sales
1,609

 
1,807

 
4,917

 
5,149

Cost of sales
(1,285
)
 
(1,406
)
 
(3,992
)
 
(3,987
)
Gross profit
324

 
401

 
925

 
1,162

Selling, general and administrative expenses
(121
)
 
(140
)
 
(379
)
 
(408
)
Amortization of intangible assets
(12
)
 
(17
)
 
(38
)
 
(50
)
Research and development expenses
(24
)
 
(24
)
 
(76
)
 
(72
)
Other (charges) gains, net
2

 
(24
)
 
(1
)
 
(39
)
Foreign exchange gain (loss), net
(4
)
 
1

 
(4
)
 
1

Gain (loss) on disposition of businesses and asset, net
(2
)
 
(1
)
 
(2
)
 
(1
)
Operating profit (loss)
163

 
196

 
425

 
593

Equity in net earnings (loss) of affiliates
50

 
57

 
163

 
146

Interest expense
(44
)
 
(54
)
 
(134
)
 
(166
)
Refinancing expense

 

 

 
(3
)
Interest income

 
1

 
1

 
2

Dividend income - cost investments
1

 
1

 
85

 
80

Other income (expense), net
3

 

 
4

 
9

Earnings (loss) from continuing operations before tax
173

 
201

 
544

 
661

Income tax (provision) benefit
(54
)
 
(34
)
 
(32
)
 
(151
)
Earnings (loss) from continuing operations
119

 
167

 
512

 
510

Earnings (loss) from operation of discontinued operations
(3
)
 

 
(3
)
 
3

Gain (loss) on disposition of discontinued operations

 

 

 

Income tax (provision) benefit, discontinued operations
1

 

 
1

 
(1
)
Earnings (loss) from discontinued operations
(2
)
 

 
(2
)
 
2

Net earnings (loss)
117

 
167

 
510

 
512

Net earnings (loss) attributable to noncontrolling interests

 

 

 

Net earnings (loss) attributable to Celanese Corporation
117

 
167

 
510

 
512

Cumulative preferred stock dividends

 

 

 

Net earnings (loss) available to common shareholders
117

 
167

 
510

 
512

Amounts attributable to Celanese Corporation
 
 
 
 
 
 
 
Earnings (loss) per common share - basic
 
 
 
 
 
 
 
Continuing operations
0.75

 
1.07

 
3.24

 
3.27

Discontinued operations
(0.01
)
 

 
(0.01
)
 
0.01

Net earnings (loss) - basic
0.74

 
1.07

 
3.23

 
3.28

Earnings (loss) per common share - diluted
 
 
 
 
 
 
 
Continuing operations
0.74

 
1.05

 
3.21

 
3.21

Discontinued operations
(0.01
)
 

 
(0.01
)
 
0.01

Net earnings (loss) - diluted
0.73

 
1.05

 
3.20

 
3.22

Weighted average shares (in millions)
 
 
 
 
 
 
 
Basic
159.1

 
156.2

 
157.9

 
156.1

Diluted
160.1

 
159.0

 
159.6

 
159.0




6



Consolidated Balance Sheets - Unaudited
(in $ millions)
As of
 
As of
September 30,
2012
 
December 31,
2011
ASSETS
 
 
 
Current assets
 
 
 
Cash & cash equivalents
928

 
682

Trade receivables - third party and affiliates, net
932

 
871

Non-trade receivables, net
188

 
235

Inventories
711

 
712

Deferred income taxes
106

 
104

Marketable securities, at fair value
56

 
64

Other assets
47

 
35

Total current assets
2,968

 
2,703

Investments in affiliates
775

 
824

Property, plant and equipment, net
3,295

 
3,269

Deferred income taxes
539

 
421

Other assets
446

 
344

Goodwill
768

 
760

Intangible assets, net
174

 
197

Total assets
8,965

 
8,518

LIABILITIES AND EQUITY
 
 
 
Current liabilities
 
 
 
Short-term borrowings and current installments of long-term debt - third party and affiliates
141

 
144

Trade payables - third party and affiliates
685

 
673

Other liabilities
507

 
539

Deferred income taxes
19

 
17

Income taxes payable
43

 
12

Total current liabilities
1,395

 
1,385

Long-term debt
2,839

 
2,873

Deferred income taxes
131

 
92

Uncertain tax positions
189

 
182

Benefit obligations
1,354

 
1,492

Other liabilities
1,142

 
1,153

Commitments and contingencies
 
 
 
Stockholders' equity
 
 
 
Preferred stock

 

Common stock

 

Treasury stock, at cost
(897
)
 
(860
)
Additional paid-in capital
731

 
627

Retained earnings
2,903

 
2,424

Accumulated other comprehensive income (loss), net
(822
)
 
(850
)
Total Celanese Corporation stockholders' equity
1,915

 
1,341

Noncontrolling interests

 

Total equity
1,915

 
1,341

Total liabilities and equity
8,965

 
8,518


7



Table 1
Business Segment Data and Reconciliation of Operating Profit (Loss) to Operating EBITDA -
a Non-U.S. GAAP Measure - Unaudited
 
Three Months Ended
 
Nine Months Ended
 
June 30,
 
September 30,
 
September 30,
(in $ millions)
2012
 
2012
 
2011
 
2012
 
2011
Net Sales
 
 
 
 
 
 
 
 
 
Advanced Engineered Materials
323

 
322

 
332

 
962

 
1,006

Consumer Specialties
327

 
314

 
298

 
905

 
855

Industrial Specialties
327

 
297

 
332

 
933

 
951

Acetyl Intermediates
821

 
785

 
975

 
2,458

 
2,702

Other Activities 1

 

 

 

 
1

Intersegment eliminations
(123
)
 
(109
)
 
(130
)
 
(341
)
 
(366
)
Total
1,675

 
1,609

 
1,807

 
4,917

 
5,149

Operating Profit (Loss)
 
 
 
 
 
 
 
 
 
Advanced Engineered Materials
21

 
43

 
14

 
85

 
79

Consumer Specialties
75

 
70

 
66

 
184

 
168

Industrial Specialties
34

 
23

 
30

 
76

 
83

Acetyl Intermediates
77

 
62

 
128

 
199

 
392

Other Activities 1
(43
)
 
(35
)
 
(42
)
 
(119
)
 
(129
)
Total
164

 
163

 
196

 
425

 
593

Other Charges and Other Adjustments 2
 
 
 
 
 
 
 
 
 
Advanced Engineered Materials
10

 
(8
)
 
18

 
5

 
52

Consumer Specialties
(1
)
 
7

 
3

 
23

 
18

Industrial Specialties

 

 

 
2

 

Acetyl Intermediates
1

 
7

 
12

 
10

 
(7
)
Other Activities 1
9

 

 
10

 
17

 
17

Total
19

 
6

 
43

 
57

 
80

Depreciation and Amortization Expense 3
 
 
 
 
 
 
 
 
 
Advanced Engineered Materials
28

 
29

 
27

 
84

 
65

Consumer Specialties
10

 
10

 
9

 
29

 
27

Industrial Specialties
13

 
13

 
12

 
39

 
34

Acetyl Intermediates
19

 
20

 
25

 
59

 
75

Other Activities 1
4

 
3

 
4

 
10

 
10

Total
74

 
75

 
77

 
221


211

Business Operating EBITDA
 
 
 
 
 
 
 
 
 
Advanced Engineered Materials
59

 
64

 
59

 
174

 
196

Consumer Specialties
84

 
87

 
78

 
236

 
213

Industrial Specialties
47

 
36

 
42

 
117

 
117

Acetyl Intermediates
97

 
89

 
165

 
268

 
460

Other Activities 1
(30
)
 
(32
)
 
(28
)
 
(92
)
 
(102
)
Total
257

 
244

 
316

 
703

 
884

Equity Earnings, Cost - Dividend Income and Other Income (Expense)
 
 
 
 
 
 
 
 
 
Advanced Engineered Materials
55

 
45

 
53

 
143

 
127

Consumer Specialties
84

 

 

 
85

 
80

Industrial Specialties

 

 
1

 

 
1

Acetyl Intermediates
2

 
2

 
3

 
5

 
7

Other Activities 1
4

 
7

 
1

 
19

 
20

Total
145

 
54

 
58

 
252

 
235

Operating EBITDA
 
 
 
 
 
 
 
 
 
Advanced Engineered Materials
114

 
109

 
112

 
317

 
323

Consumer Specialties
168

 
87

 
78

 
321

 
293

Industrial Specialties
47

 
36

 
43

 
117

 
118

Acetyl Intermediates
99

 
91

 
168

 
273

 
467

Other Activities 1
(26
)
 
(25
)
 
(27
)
 
(73
)
 
(82
)
Total
402

 
298

 
374

 
955

 
1,119

1 Other Activities includes corporate selling, general and administrative expenses and the results from captive insurance companies.
2 See Table 7 for details.
3 Excludes accelerated depreciation and amortization expense included in Other Charges and Other Adjustments above. See Table 1A for details.

8



Table 1A
Reconciliation of Consolidated Net Earnings (Loss) to Operating EBITDA -
a Non-U.S. GAAP Measure - Unaudited
 
Three Months Ended
 
Nine Months Ended
 
June 30,
 
September 30,
 
September 30,
(in $ millions)
2012
 
2012
 
2011
 
2012
 
2011
Net earnings (loss) attributable to Celanese Corporation
210

 
117

 
167

 
510

 
512

(Earnings) loss from discontinued operations

 
2

 

 
2

 
(2
)
Interest income

 

 
(1
)
 
(1
)
 
(2
)
Interest expense
45

 
44

 
54

 
134

 
166

Refinancing expense

 

 

 

 
3

Income tax provision (benefit)
54

 
54

 
34

 
32

 
151

Depreciation and amortization expense 2
74

 
75

 
77

 
221

 
211

Other charges (gains), net 1
3

 
(2
)
 
24

 
1

 
39

Other adjustments 1
16

 
8

 
19

 
56

 
41

Operating EBITDA
402

 
298

 
374

 
955

 
1,119

Detail by Business Segment
 
 
 
 
 
 
 
 
 
Advanced Engineered Materials
114

 
109

 
112

 
317

 
323

Consumer Specialties
168

 
87

 
78

 
321

 
293

Industrial Specialties
47

 
36

 
43

 
117

 
118

Acetyl Intermediates
99

 
91

 
168

 
273

 
467

Other Activities 3
(26
)
 
(25
)
 
(27
)
 
(73
)
 
(82
)
Operating EBITDA
402

 
298

 
374

 
955

 
1,119

1 See Table 7 for details.
2 Excludes accelerated depreciation and amortization expense as detailed in the table below and included in Other adjustments above.
3 Other Activities includes corporate selling, general and administrative expenses and the results from captive insurance companies.
 
Three Months Ended
 
Nine Months Ended
 
June 30,
 
September 30,
 
September 30,
(in $ millions)
2012
 
2012
 
2011
 
2012
 
2011
Advanced Engineered Materials

 

 

 

 
3

Consumer Specialties
1

 
3

 

 
4

 
7

Industrial Specialties

 

 

 
2

 

Acetyl Intermediates

 

 

 

 

Other Activities 3

 

 

 

 

Accelerated depreciation and amortization expense
1

 
3

 

 
6

 
10

Depreciation and amortization expense 2
74

 
75

 
77

 
221

 
211

Total depreciation and amortization expense
75

 
78

 
77

 
227

 
221




 


9



Table 2
Factors Affecting Business Segment Net Sales - Unaudited

Three Months Ended September 30, 2012 Compared to Three Months Ended September 30, 2011
 
Volume
 
Price
 
Currency
 
Other
 
Total
 
(In percentages)
Advanced Engineered Materials
(1
)
 
3

 
(5
)
 
 
(3
)
Consumer Specialties

 
6

 
(1
)
 
 
5

Industrial Specialties
2

 
(8
)
 
(5
)
 
 
(11
)
Acetyl Intermediates
(5
)
 
(11
)
 
(3
)
 
 
(19
)
Total Company
(2
)
 
(6
)
 
(4
)
 
1
 
(11
)

Nine Months Ended September 30, 2012 Compared to Nine Months Ended September 30, 2011

 
Volume
 
Price
 
Currency
 
Other
 
Total
 
(In percentages)
Advanced Engineered Materials
(3
)
 
3

 
(4
)
 
 
(4
)
Consumer Specialties

 
7

 
(1
)
 
 
6

Industrial Specialties
4

 
(2
)
 
(4
)
 
 
(2
)
Acetyl Intermediates
2

 
(8
)
 
(3
)
 
 
(9
)
Total Company
1

 
(3
)
 
(3
)
 
 
(5
)

Table 3
Cash Flow Information - Unaudited
 
Nine Months Ended
 
September 30,
(in $ millions)
2012
 
2011
Net cash provided by operating activities
661

 
481

Net cash (used in) investing activities 1
(397
)
 
(296
)
Net cash (used in) financing activities
(21
)
 
(224
)
Exchange rate effects on cash and cash equivalents
3

 
3

Cash and cash equivalents at beginning of period
682

 
740

Cash and cash equivalents at end of period
928

 
704

1 2012 and 2011 include $43 million and $174 million, respectively, of capital expenditures related to the relocation of our Kelsterbach, Germany POM operations. 2011 includes $158 million of cash proceeds related to the settlement with the Frankfurt, Germany Airport to move our POM operations from Kelsterbach, Germany.

Table 4
Cash Dividends Received - Unaudited
 
Three Months Ended
 
Nine Months Ended
 
September 30,
 
September 30,
(in $ millions)
2012
 
2011
 
2012
 
2011
Dividends from equity investments
37

 
47

 
222

 
165

Dividends from cost investments
1

 
1

 
85

 
80

Total
38

 
48

 
307

 
245


10



Table 5
Net Debt - Reconciliation of a Non-U.S. GAAP Measure - Unaudited
 
As of
 
As of
 
As of
(in $ millions)
June 30,
2012
 
September 30,
2012
 
December 31,
2011
Short-term borrowings and current installments of long-term debt - third party and affiliates
131

 
141

 
144

Long-term debt
2,845

 
2,839

 
2,873

Total debt
2,976

 
2,980

 
3,017

Less: Cash and cash equivalents
800

 
928

 
682

Net debt
2,176

 
2,052

 
2,335


Table 6
Adjusted Earnings (Loss) Per Share - Reconciliation of a Non-U.S. GAAP Measure - Unaudited
 
Three Months Ended
 
Nine Months Ended
 
September 30,
 
September 30,
(in $ millions, except share and per share data)
2012
 
2011
 
2012
 
2011
 
 
 
per
share
 
 
 
per
share
 
 
 
per
share
 
 
 
per
share
Earnings (loss) from continuing operations
119

 
0.74

 
167

 
1.05

 
512

 
3.21

 
510

 
3.21

Deduct: Income tax (provision) benefit
(54
)
 
 
 
(34
)
 
 
 
(32
)
 
 
 
(151
)
 
 
Earnings (loss) from continuing operations before tax
173

 
 
 
201

 
 
 
544

 
 
 
661

 
 
Other charges and other adjustments 1
6

 
 
 
43

 
 
 
57

 
 
 
80

 
 
Refinancing - related expenses

 
 
 
(1
)
 
 
 

 
 
 
5

 
 
Adjusted earnings (loss) from continuing operations before tax
179

 
 
 
243

 
 
 
601

 
 
 
746

 
 
Income tax (provision) benefit on adjusted earnings 2
(30
)
 
 
 
(41
)
 
 
 
(102
)
 
 
 
(127
)
 
 
Less: Noncontrolling interests

 
 
 

 
 
 

 
 
 

 
 
Adjusted earnings (loss) from continuing operations
149

 
0.93

 
202

 
1.27

 
499

 
3.13

 
619

 
3.89

Diluted shares (in millions) 3
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Weighted average shares outstanding
 
 
159.1

 
 
 
156.2

 
 
 
157.9

 
 
 
156.1

Dilutive stock options
 
 
0.3

 
 
 
1.9

 
 
 
1.1

 
 
 
2.0

Dilutive restricted stock units
 
 
0.7

 
 
 
0.9

 
 
 
0.6

 
 
 
0.9

Total diluted shares
 
 
160.1

 
 
 
159.0

 
 
 
159.6

 
 
 
159.0

1 See Table 7 for details.
2 The adjusted effective tax rate is 17% and 17% for the three and nine months ended September 30, 2012 and 2011, respectively.
3 Potentially dilutive shares are included in the adjusted earnings per share calculation when adjusted earnings are positive.



 


11



Table 7
Other Charges and Other Adjustments - Reconciliation of a Non-U.S. GAAP Measure - Unaudited
Other Charges (Gains), net:
 
 
 
 
 
 
 
 
 
 
 
Three Months Ended
 
Nine Months Ended
 
 
June 30,
 
September 30,
 
September 30,
 
(in $ millions)
2012
 
2012

2011
 
2012
 
2011
 
Employee termination benefits
1

 
1

 
5

 
2

 
18

 
Kelsterbach plant relocation
2

 
3

 
14

 
5

 
43

 
Plumbing actions

 
(4
)
 
(2
)
 
(4
)
 
(6
)
 
Commercial disputes

 
(2
)
 
7

 
(2
)
 
(15
)
 
Other

 

 

 

 
(1
)
 
Total
3

 
(2
)
 
24

 
1

 
39

 
 
 
 
 
 
 
 
 
 
 
 
Other Adjustments: 1
 
 
 
 
 
 
 
 
 
 
 
Three Months Ended
 
Nine Months Ended
 
 
June 30,
 
September 30,
 
September 30,
Income Statement
(in $ millions)
2012
 
2012
 
2011
 
2012
 
2011
Classification
Business optimization
3

 

 
2

 
8

 
7

Cost of sales / SG&A
Kelsterbach plant relocation
8

 
(7
)
 
5

 
4

 
7

Cost of sales
Plant closures
2

 
10

 
2

 
16

 
15

Cost of sales / SG&A
(Gain) loss on disposition of assets

 
1

 
(1
)
 
1

 
(1
)
(Gain) loss on disposition
Write-off of other productive assets

 

 

 

 
(1
)
Cost of sales
Commercial disputes

 

 
7

 

 
7

Cost of sales
Acetate production interruption costs

 

 

 
10

 

Cost of sales
Other
3

 
4

 
4

 
17

 
7

Various
Total
16

 
8

 
19

 
56

 
41

 
Total other charges and other adjustments
19

 
6

 
43

 
57

 
80

 
1 These items are included in net earnings but not included in other charges (gains), net.


 

12



Table 8
Equity Affiliate Results and Reconciliation of Operating Profit to Affiliate EBITDA -
a Non-U.S. GAAP Measure - Total - Unaudited
 
Three Months Ended
 
Nine Months Ended
 
September 30,
 
September 30,
(in $ millions)
2012
 
2011
 
2012
 
2011
Net Sales
 
 
 
 
 
 
 
Affiliates - Asia 1
431

 
428

 
1,295

 
1,232

Affiliates - Middle East 2
281

 
334

 
965

 
851

Infraserv Affiliates 3
457

 
540

 
1,402

 
1,597

Total
1,169

 
1,302

 
3,662

 
3,680

Operating Profit
 
 
 
 
 
 
 
Affiliates - Asia 1
55

 
56

 
158

 
151

Affiliates - Middle East 2
134

 
163

 
470

 
369

Infraserv Affiliates 3
31

 
33

 
91

 
100

Total
220

 
252

 
719

 
620

Depreciation and Amortization
 
 
 
 
 
 
 
Affiliates - Asia 1
19

 
20

 
57

 
57

Affiliates - Middle East 2
9

 
8

 
32

 
38

Infraserv Affiliates 3
25

 
29

 
78

 
84

Total
53

 
57

 
167

 
179

Affiliate EBITDA
 
 
 
 
 
 
 
Affiliates - Asia 1
74

 
76

 
215

 
208

Affiliates - Middle East 2
143

 
171

 
502

 
407

Infraserv Affiliates 3
56

 
62

 
169

 
184

Total
273

 
309

 
886

 
799

Net Income
 
 
 
 
 
 
 
Affiliates - Asia 1
37

 
39

 
105

 
103

Affiliates - Middle East 2
120

 
145

 
420

 
328

Infraserv Affiliates 3
17

 
16

 
65

 
66

Total
174

 
200

 
590

 
497

Net Debt
 
 
 
 
 
 
 
Affiliates - Asia 1
378

 
134

 
378

 
134

Affiliates - Middle East 2
(94
)
 
(115
)
 
(94
)
 
(115
)
Infraserv Affiliates 3
287

 
239

 
287

 
239

Total
571

 
258

 
571

 
258

1 Affiliates - Asia accounted for using the equity method includes Polyplastics (45%), Korean Engineering Plastics (50%), Fortron Industries (50%), Una SA (2012 - 0%, 2011 - 50%). Una SA was divested during the Three Months Ended March 31, 2011.
2 Affiliates - Middle East accounted for using the equity method includes National Methanol Company (Ibn Sina) (25%).
3 Infraserv Affiliates accounted for using the equity method includes Infraserv Hoechst (32%), Infraserv Gendorf (39%) and Infraserv Knapsack (27%).


13




Table 8 (continued)
Equity Affiliate Results and Reconciliation of Proportional Operating Profit to Proportional Affiliate EBITDA - a Non-U.S. GAAP Measure - Celanese Proportional Share - Unaudited
 
Three Months Ended
 
Nine Months Ended
 
September 30,
 
September 30,
(in $ millions)
2012
 
2011
 
2012
 
2011
Proportional Net Sales
 
 
 
 
 
 
 
Affiliates - Asia 1
199

 
198

 
597

 
570

Affiliates - Middle East 2
70

 
84

 
241

 
213

Infraserv Affiliates 3
150

 
178

 
460

 
526

Total
419

 
460

 
1,298

 
1,309

Proportional Operating Profit
 
 
 
 
 
 
 
Affiliates - Asia 1
26

 
26

 
74

 
71

Affiliates - Middle East 2
34

 
41

 
118

 
92

Infraserv Affiliates 3
10

 
10

 
30

 
32

Total
70

 
77

 
222

 
195

Proportional Depreciation and Amortization
 
 
 
 
 
 
 
Affiliates - Asia 1
8

 
9

 
26

 
26

Affiliates - Middle East 2
2

 
2

 
8

 
10

Infraserv Affiliates 3
8

 
10

 
25

 
28

Total
18

 
21

 
59

 
64

Proportional Affiliate EBITDA
 
 
 
 
 
 
 
Affiliates - Asia 1
34

 
35

 
100

 
97

Affiliates - Middle East 2
36

 
43

 
126

 
102

Infraserv Affiliates 3
18

 
20

 
55

 
60

Total
88

 
98

 
281

 
259

Equity in Net Earnings of Affiliates (as reported in the Consolidated Statement of Operations)
 
 
 
 
 
 
 
Affiliates - Asia 1
18

 
18

 
50

 
48

Affiliates - Middle East 2
27

 
34

 
93

 
77

Infraserv Affiliates 3
5

 
5

 
20

 
21

Total
50

 
57

 
163

 
146

Proportional Affiliate EBITDA in Excess of Equity in Net Earnings of Affiliates
 
 
 
 
 
 
 
Affiliates - Asia 1
16

 
17

 
50

 
49

Affiliates - Middle East 2
9

 
9

 
33

 
25

Infraserv Affiliates 3
13

 
15

 
35

 
39

Total
38

 
41

 
118

 
113

Proportional Net Debt
 
 
 
 
 
 
 
Affiliates - Asia 1
171

 
60

 
171

 
60

Affiliates - Middle East 2
(24
)
 
(29
)
 
(24
)
 
(29
)
Infraserv Affiliates 3
94

 
79

 
94

 
79

Total
241

 
110

 
241

 
110

1
Affiliates - Asia accounted for using the equity method includes Polyplastics (45%), Korean Engineering Plastics (50%), Fortron Industries (50%), Una SA (2012 - 0%, 2011 - 50%). Una SA was divested during the Three Months Ended March 31, 2011.
2
Affiliates - Middle East accounted for using the equity method includes National Methanol Company (Ibn Sina) (25%).
3 
Infraserv Affiliates accounted for using the equity method includes Infraserv Hoechst (32%), Infraserv Gendorf (39%) and Infraserv Knapsack (27%).
 


14