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Genesis Energy, L.P. Announces the Expiration of Its Tender Offer for Any and All of Aggregate Principal Amount of Its 6.750% Senior Notes Due 2022

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Genesis Energy, L.P. (NYSE: GEL) today announced that its previously announced cash tender offer to purchase any and all of the outstanding aggregate principal amount of the 6.750% senior unsecured notes due 2022 that we co-issued with our subsidiary, Genesis Energy Finance Corporation (the Notes) expired at 5:00 p.m., New York City time, on January 15, 2020 (the Expiration Time). As of the Expiration Time, $527,925,000 aggregate principal amount of the outstanding Notes (70.39%) were validly tendered, which excludes $3,303,000 aggregate principal amount of the outstanding Notes that remain subject to guaranteed delivery procedures. The settlement date for the Notes is expected to be January 16, 2019.

Pursuant to the terms of the tender offer, Notes not tendered in the tender offer will remain outstanding. We intend to call such outstanding Notes for redemption in accordance with the terms and conditions of the indenture governing the Notes.

Persons with questions regarding the tender offer should contact the dealer manager, BMO Capital Markets by telephone at (833) 418-0762 (U.S. toll-free) or (212) 702-1840, or the information agent and tender agent, D. F. King & Co., Inc., by telephone at (877) 536-1556 (toll-free) or, for banks and brokers, at (212) 269-5550 (Banks and Brokers Only) or in writing at D. F. King & Co., Inc., 48 Wall Street, 22nd Floor, New York, New York 10005, Attention: Andrew Beck, or by email at [email protected].

Genesis Energy, L.P. is a diversified midstream energy master limited partnership headquartered in Houston, Texas. Genesis operations include offshore pipeline transportation, sodium minerals and sulfur services, marine transportation and onshore facilities and transportation. Genesis operations are primarily located in the Gulf Coast region of the United States, Wyoming and the Gulf of Mexico.

This press release includes forward-looking statements as defined under federal law. Although we believe that our expectations are based upon reasonable assumptions, no assurance can be given that our goals will be achieved, including statements related to the tender offer and redemption. Actual results may vary materially. We undertake no obligation to publicly update or revise any forward-looking statement.

Genesis Energy, L.P.

Ryan Sims

SVP – Finance and Corporate Development

(713) 860-2521

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EQUITY ALERT: Rosen Law Firm Files Securities Class Action Lawsuit Against First American Financial Corp. – FAF

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Rosen Law Firm, a global investor rights law firm, announces it has filed a class action lawsuit on behalf of purchasers of the securities of First American Financial Corp. (NYSE: FAF), between February 17, 2017 and October 22, 2020, inclusive (the Class Period). The lawsuit seeks to recover damages for First American investors under the federal securities laws.

To join the First American class action, go to http://www.rosenlegal.com/cases-register-1662.html or call Phillip Kim, Esq. toll-free at 866-767-3653 or email [email protected] or [email protected] for information on the class action.

According to the lawsuit, defendants throughout the Class Period made false and/or misleading statements and/or failed to disclose that: (1) the Company failed to implement basic security standards to protect its customers sensitive personal information and data; (2) the Company faced a heightened risk of cybersecurity failure due to its automation and efficiency initiatives; and (3) as a result, defendants public statements were materially false and misleading at all relevant times. According to the suit, these true details were disclosed by a market research firm.

A class action lawsuit has already been filed. If you wish to serve as lead plaintiff, you must move the Court no later than December 24, 2020. A lead plaintiff is a representative party acting on behalf of other class members in directing the litigation. If you wish to join the litigation, go to http://www.rosenlegal.com/cases-register-1662.html or to discuss your rights or interests regarding this class action, please contact Phillip Kim, Esq. of Rosen Law Firm toll free at 866-767-3653 or via e-mail at [email protected] or [email protected].

NO CLASS HAS YET BEEN CERTIFIED IN THE ABOVE ACTION. UNTIL A CLASS IS CERTIFIED, YOU ARE NOT REPRESENTED BY COUNSEL UNLESS YOU RETAIN ONE. YOU MAY RETAIN COUNSEL OF YOUR CHOICE. YOU MAY ALSO REMAIN AN ABSENT CLASS MEMBER AND DO NOTHING AT THIS POINT. AN INVESTORS ABILITY TO SHARE IN ANY POTENTIAL FUTURE RECOVERY IS NOT DEPENDENT UPON SERVING AS LEAD PLAINTIFF.

Follow us for updates on LinkedIn: https://www.linkedin.com/company/the-rosen-law-firm or on Twitter: https://twitter.com/rosen_firm or on Facebook: https://www.facebook.com/rosenlawfirm.

Rosen Law Firm represents investors throughout the globe, concentrating its practice in securities class actions and shareholder derivative litigation. Rosen Law Firm was Ranked No. 1 by ISS Securities Class Action Services for number of securities class action settlements in 2017. The firm has been ranked in the top 3 each year since 2013. Rosen Law Firm has achieved the largest ever securities class action settlement against a Chinese Company. Rosen Law Firms attorneys are ranked and recognized by numerous independent and respected sources. Rosen Law Firm has secured hundreds of millions of dollars for investors. Attorney Advertising. Prior results do not guarantee a similar outcome.

Laurence Rosen, Esq.

Phillip Kim, Esq.

The Rosen Law Firm, P.A.

275 Madison Avenue, 40th Floor

New York, NY 10016

Tel: (212) 686-1060

Toll Free: (866) 767-3653

Fax: (212) 202-3827

[email protected]

[email protected]

[email protected]

www.rosenlegal.com

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Celanese Corporation Reports Third Quarter 2020 Earnings; Highlights Strong Demand Recovery

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Celanese Corporation (NYSE: CE), a global chemical and specialty materials company, today reported third quarter GAAP diluted earnings per share of $1.76 and adjusted earnings per share of $1.95. The Company recorded net sales of $1.4 billion driven by 20 percent volume recovery over the prior quarter. Third quarter operating profit was $184 million and adjusted EBIT was $290 million, sequential increases of $101 million and $91 million, respectively. Engineered Materials leveraged its customer project model, and the Acetyl Chain exercised the flexibility of its global network to maximize sequential growth on demand recovery. Celanese generated operating cash flow of $431 million and free cash flow of $351 million in the quarter. Cash returned to shareholders in the third quarter totaled $184 million, consisting of $111 million in share repurchases and $73 million in dividends. The recently closed Polyplastics transaction unlocked cash proceeds of approximately $1.6 billion and further improves the Company’s ability to opportunistically invest in organic growth, acquisitions, and share repurchases.

“Our financial results are again a reflection of the commitment of our employees to the success of Celanese in any environment. They have taken decisive actions throughout this year to respond to the difficult realities of COVID-19 and continue to navigate persistent challenges to better serve and support our customers each day. With the recovery we have seen to date, I am pleased to share that all of our production facilities across the globe are again fully staffed and operating to meet demand. We continue to closely monitor business conditions and will remain nimble and purposeful in preparing ourselves for continued recovery and growth in the future. We are encouraged by robust demand recovery for our products across all regions in the third quarter,” said Lori Ryerkerk, chairman and chief executive officer.

Third Quarter 2020 Financial Highlights:

 

Three Months Ended

 

September 30,

2020

 

June 30,

2020

 

September 30,

2019

 

(unaudited)

 

(In $ millions, except per share data)

Net Sales

 

 

 

 

 

Engineered Materials

526

 

 

420

 

 

591

 

Acetate Tow

129

 

 

127

 

 

158

 

Acetyl Chain

776

 

 

662

 

 

867

 

Intersegment Eliminations

(20

)

 

(16

)

 

(30

)

Total

1,411

 

 

1,193

 

 

1,586

 

 

 

 

 

 

 

Operating Profit (Loss)

 

 

 

 

 

Engineered Materials

84

 

 

(13

)

 

111

 

Acetate Tow

30

 

 

31

 

 

34

 

Acetyl Chain

121

 

 

121

 

 

180

 

Other Activities

(51

)

 

(56

)

 

(65

)

Total

184

 

 

83

 

 

260

 

 

 

 

 

 

 

Net Earnings (Loss)

209

 

 

109

 

 

265

 

 

 

 

 

 

 

Adjusted EBIT(1)

 

 

 

 

 

Engineered Materials

116

 

 

40

 

 

154

 

Acetate Tow

59

 

 

64

 

 

71

 

Acetyl Chain

126

 

 

116

 

 

191

 

Other Activities

(11

)

 

(21

)

 

(40

)

Total

290

 

 

199

 

 

376

 

Equity Earnings and Dividend Income, Other Income (Expense)

 

 

 

 

 

Engineered Materials

21

 

 

26

 

 

41

 

Acetate Tow

28

 

 

32

 

 

27

 

 

 

 

 

 

 

Operating EBITDA(1)

378

 

 

285

 

 

458

 

Diluted EPS – continuing operations

$

1.76

 

 

$

0.93

 

 

$

2.17

 

Diluted EPS – total

$

1.75

 

 

$

0.90

 

 

$

2.13

 

Adjusted EPS(1)

$

1.95

 

 

$

1.30

 

 

$

2.53

 

Net cash provided by (used in) investing activities

(78

)

 

(181

)

 

(82

)

Net cash provided by (used in) financing activities

(290

)

 

(232

)

 

(299

)

Net cash provided by (used in) operating activities

431

 

 

379

 

 

397

 

Free cash flow(1)

351

 

 

283

 

 

315

 

______________________________
(1)

See “Non-US GAAP Financial Measures” below.

 
 

Third Quarter 2020 Highlights:

  • Completed in early October the previously announced sale of the 45 percent equity investment in the Polyplastics joint venture to Daicel for approximately $1.6 billion. Proceeds are expected to be redeployed to higher return investments.
  • Repurchased $111 million in shares in the third quarter in anticipation of the completion of the Polyplastics transaction. An additional approximately $400 million in share repurchases in connection with the Polyplastics transaction are expected to be completed during the fourth quarter of 2020, for a total of approximately $500 million.
  • Announced a project to expand GUR UHMW-PE capacity by approximately 15 kt at the Bishop, Texas facility to meet growing demand including Celanese lithium-ion battery solutions. After completion in early 2022, total capacity will exceed 50 kt per year.
  • Launched BlueRidge„¢ cellulosic pellets, produced using cellulose from sustainably forested trees and acetic acid, as an alternative for conventional plastics in single-use consumer applications.
  • Delivered robust operating cash flow of $431 million and free cash flow of $351 million amid demand recovery.
  • Paid off bilateral term loans taken in the first quarter of 2020, totaling $300 million. The loans provided excess liquidity throughout the middle of 2020.
  • Elected Deborah J. Kissire to the Company’s Board of Directors in October. Ms. Kissire is a retired partner from Ernst & Young LLP.

Third Quarter 2020 Business Segment Overview

Engineered Materials

Engineered Materials reported net sales of $526 million in the third quarter, resulting from a sequential volume increase of 27 percent that offset a price decrease of 6 percent due to mix. Volume expansion was driven by strong demand recovery for durable goods across all regions. Automotive volumes in the third quarter grew 81 percent over the prior quarter, slightly lower than the same quarter of last year. Additional growth in consumer appliance and industrial end-markets, along with continued resiliency in electronics, more than offset sequential volume deterioration in medical resulting from the deferral of certain elective procedures and destocking along that value chain. Engineered Materials generated GAAP operating income of $84 million and adjusted EBIT of $116 million, respective increases of $97 million and $76 million over the prior quarter. The business recorded third quarter operating profit margin of 16 percent and adjusted EBIT margin of 22 percent. Continued execution in the base business of Engineered Materials more than offset a $5 million sequential decline in affiliate earnings due primarily to weaker Ibn Sina performance.

Acetyl Chain

The Acetyl Chain generated third quarter net sales of $776 million, due to an 18 percent volume increase partially offset by a 2 percent price decrease from the prior quarter. Pricing for acetic acid and VAM remained depressed as the positive impact of demand recovery on industry utilization was largely offset by significantly improved industry supply. The Acetyl Chain continued to utilize its derivatization optionality to emulsions and redispersible powders where sequential margins improved modestly. The Acetyl Chain generated GAAP operating profit of $121 million and adjusted EBIT of $126 million, both at margins of 16 percent. The business successfully offset the impact of $25 million in raw material inflation at the end of the third quarter to deliver earnings growth over the prior quarter. The team also brought forward a catalyst change at the Clear Lake VAM facility and activated the global network to execute swaps and source material to ensure customer supply security and limit the third quarter adjusted EBIT impact of that turnaround to approximately $10 million.

Acetate Tow

Acetate Tow recorded net sales of $129 million due to volume and price expansion of 1 percent over the prior quarter. Third quarter GAAP operating profit was $30 million and adjusted EBIT was $59 million. Dividends from affiliates in the third quarter were $28 million, $4 million lower sequentially due to the timing of dividend payments.

Cash Flow and Tax

The Company generated third quarter operating cash flow and free cash flow of $431 million and $351 million, respectively. Capital expenditures in the quarter were $72 million. The effective US GAAP tax rate was 12 percent in the third quarter compared to 16 percent in the same quarter of last year, primarily due to a tax benefit recorded in the quarter for excess tax basis in an equity affiliate. The tax rate for adjusted earnings per share was 12 percent in the third quarter, compared to 11 percent in the same quarter last year, primarily due to the utilization of tax attribute carryforwards and the year over year earnings profile.

Outlook

“Across most of our end markets, global demand during the third quarter progressed well along the path of recovery,” continued Ryerkerk. “We are monitoring the current resurgence of COVID-19 across various locations for any impact to our businesses. At this stage, the October and November order books are shaping consistently with the third quarter and show no indications of demand retraction. We expect continued momentum in the fourth quarter to partially offset various sequential headwinds including normal December seasonality and a major turnaround at our Frankfurt POM facility. Including all these factors, we expect full year 2020 adjusted earnings of approximately $7.00 to $7.10 per share. Looking to 2021, we remain confident that underlying demand will reach pre-COVID levels at some point in the year. While uncertainty remains, we continue to be focused on controllable actions to drive strong growth next year, including productivity, production planning, and disciplined capital deployment.”

The Company is 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. For more information, see “Non-GAAP Financial Measures” below.

The Company’s prepared remarks related to the third quarter will be posted on its website at investors.celanese.com under Financial Information/Financial Document Library on October 25, 2020. 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 7,700 employees worldwide and had 2019 net sales of $6.3 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 as well as facility turnarounds; the ability to reduce or maintain their current levels of production costs and to improve productivity by implementing technological improvements to existing plants; the ability to identify desirable potential acquisition targets and to consummate acquisition or investment transactions consistent with the Company’s strategy; 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 tariffs, tax rates or legislation; 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, 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 occurrence of acts of war or terrorist incidents or as a result of weather or natural disasters or other crises including public health crises; 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.

The extent to which COVID-19 will adversely impact our business, financial condition and results of operations will depend on numerous evolving factors, which are highly uncertain, rapidly changing and cannot be predicted, including: the duration, scope, severity and geographic spread of the outbreak; governmental, business and individual actions that have been and continue to be taken in response to the outbreak, including social distancing, work-at-home, stay-at-home and shelter-in-place orders and shutdowns, travel restrictions and quarantines; the effect of the outbreak on our customers, suppliers, supply chain and other business partners; our ability during the outbreak to provide our products and services, including the health and well-being of our employees; business disruptions caused by actual or potential plant, workplace and office closures, and an increased reliance on employees working from home, disruptions to or delays in ongoing laboratory and product testing, experiments and operations, staffing shortages, travel limitations, employee health issues, cyber security and data accessibility, or communication or mass transit disruptions, any of which could adversely impact our business operations or delay necessary interactions with local regulators, manufacturing sites and other important agencies and contractors; the ability of our customers to pay for our products and services during and following the outbreak; the impact of the outbreak on the financial markets and economic activity generally; our ability to access usual sources of liquidity on reasonable terms; and our ability to comply with the financial covenant in our Credit Agreement if a material and prolonged economic downturn results in increased indebtedness or substantially lower EBITDA.

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

  • 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.
  • 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 cash flow from operations, less capital expenditures on property, plant and equipment, and adjusted for capital contributions from or distributions to Mitsui & Co., Ltd. (“Mitsui”) related to our methanol joint venture, Fairway Methanol LLC (“Fairway”).

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 October 26, 2020 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

 

September 30,

2020

 

June 30,

2020

 

September 30,

2019

 

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

Net sales

1,411

 

 

1,193

 

 

1,586

 

Cost of sales

(1,084

)

 

(951

)

 

(1,172

)

Gross profit

327

 

 

242

 

 

414

 

Selling, general and administrative expenses

(106

)

 

(114

)

 

(120

)

Amortization of intangible assets

(6

)

 

(6

)

 

(6

)

Research and development expenses

(19

)

 

(18

)

 

(17

)

Other (charges) gains, net

(10

)

 

(21

)

 

(7

)

Foreign exchange gain (loss), net

(2

)

 

1

 

 

(1

)

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

 

 

(1

)

 

(3

)

Operating profit (loss)

184

 

 

83

 

 

260

 

Equity in net earnings (loss) of affiliates

25

 

 

31

 

 

45

 

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

28

 

 

27

 

 

17

 

Interest expense

(28

)

 

(27

)

 

(27

)

Interest income

1

 

 

1

 

 

1

 

Dividend income – equity investments

29

 

 

32

 

 

27

 

Other income (expense), net

2

 

 

 

 

 

Earnings (loss) from continuing operations before tax

241

 

 

147

 

 

323

 

Income tax (provision) benefit

(30

)

 

(35

)

 

(53

)

Earnings (loss) from continuing operations

211

 

 

112

 

 

270

 

Earnings (loss) from operation of discontinued operations

(2

)

 

(4

)

 

(6

)

Income tax (provision) benefit from discontinued operations

 

 

1

 

 

1

 

Earnings (loss) from discontinued operations

(2

)

 

(3

)

 

(5

)

Net earnings (loss)

209

 

 

109

 

 

265

 

Net (earnings) loss attributable to noncontrolling interests

(2

)

 

(2

)

 

(2

)

Net earnings (loss) attributable to Celanese Corporation

207

 

 

107

 

 

263

 

Amounts attributable to Celanese Corporation

 

 

 

 

 

Earnings (loss) from continuing operations

209

 

 

110

 

 

268

 

Earnings (loss) from discontinued operations

(2

)

 

(3

)

 

(5

)

Net earnings (loss)

207

 

 

107

 

 

263

 

Earnings (loss) per common share – basic

 

 

 

 

 

Continuing operations

1.77

 

 

0.93

 

 

2.18

 

Discontinued operations

(0.02

)

 

(0.03

)

 

(0.04

)

Net earnings (loss) – basic

1.75

 

 

0.90

 

 

2.14

 

Earnings (loss) per common share – diluted

 

 

 

 

 

Continuing operations

1.76

 

 

0.93

 

 

2.17

 

Discontinued operations

(0.01

)

 

(0.03

)

 

(0.04

)

Net earnings (loss) – diluted

1.75

 

 

0.90

 

 

2.13

 

Weighted average shares (in millions)

 

 

 

 

 

Basic

118.0

 

 

118.3

 

 

122.7

 

Diluted

118.6

 

 

118.8

 

 

123.3

 

 
 
 

Consolidated Balance Sheets – Unaudited

 

As of

September 30,

2020

 

As of

December 31,

2019

 

(In $ millions)

ASSETS

 

 

 

Current Assets

 

 

 

Cash and cash equivalents

615

 

 

463

 

Trade receivables – third party and affiliates, net

716

 

 

850

 

Non-trade receivables, net

347

 

 

331

 

Inventories

1,001

 

 

1,038

 

Marketable securities

35

 

 

40

 

Other assets

57

 

 

43

 

Total current assets

2,771

 

 

2,765

 

Investments in affiliates

993

 

 

975

 

Property, plant and equipment, net

3,851

 

 

3,713

 

Operating lease right-of-use assets

210

 

 

203

 

Deferred income taxes

87

 

 

96

 

Other assets

412

 

 

338

 

Goodwill

1,128

 

 

1,074

 

Intangible assets, net

317

 

 

312

 

Total assets

9,769

 

 

9,476

 

LIABILITIES AND EQUITY

 

 

 

Current Liabilities

 

 

 

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

958

 

 

496

 

Trade payables – third party and affiliates

699

 

 

780

 

Other liabilities

632

 

 

461

 

Income taxes payable

120

 

 

17

 

Total current liabilities

2,409

 

 

1,754

 

Long-term debt, net of unamortized deferred financing costs

3,140

 

 

3,409

 

Deferred income taxes

164

 

 

257

 

Uncertain tax positions

200

 

 

165

 

Benefit obligations

584

 

 

589

 

Operating lease liabilities

191

 

 

181

 

Other liabilities

197

 

 

223

 

Commitments and Contingencies

 

 

 

Stockholders’ Equity

 

 

 

Treasury stock, at cost

(4,106

)

 

(3,846

)

Additional paid-in capital

248

 

 

254

 

Retained earnings

6,710

 

 

6,399

 

Accumulated other comprehensive income (loss), net

(344

)

 

(300

)

Total Celanese Corporation stockholders’ equity

2,508

 

 

2,507

 

Noncontrolling interests

376

 

 

391

 

Total equity

2,884

 

 

2,898

 

Total liabilities and equity

9,769

 

 

9,476

 

 
 
 
 

Non-US GAAP Financial Measures and Supplemental Information

October 25, 2020

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/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 capital contributions from or distributions to Mitsui & Co., Ltd. (“Mitsui”) related to our methanol joint venture, Fairway Methanol LLC (“Fairway”). 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.
  • 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. Beginning in 2014, this includes Fairway for which the Company’s ownership percentage is 50%. 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

Adjusted EBIT and Operating EBITDA – Reconciliation of Non-GAAP Measures – Unaudited

 

Q3 ’20

 

Q2 ’20

 

Q1 ’20

 

2019

 

Q4 ’19

 

Q3 ’19

 

Q2 ’19

 

Q1 ’19

 

(In $ millions)

Net earnings (loss) attributable to Celanese Corporation

207

 

 

107

 

 

218

 

 

852

 

 

43

 

 

263

 

 

209

 

 

337

 

(Earnings) loss from discontinued operations

2

 

 

3

 

 

7

 

 

6

 

 

(1

)

 

5

 

 

1

 

 

1

 

Interest income

(1

)

 

(1

)

 

(2

)

 

(6

)

 

(2

)

 

(1

)

 

(2

)

 

(1

)

Interest expense

28

 

 

27

 

 

28

 

 

115

 

 

28

 

 

27

 

 

29

 

 

31

 

Refinancing expense

 

 

 

 

 

 

4

 

 

 

 

 

 

4

 

 

 

Income tax provision (benefit)

30

 

 

35

 

 

65

 

 

124

 

 

(3

)

 

53

 

 

28

 

 

46

 

Certain Items attributable to Celanese Corporation (Table 8)

24

 

 

28

 

 

26

 

 

381

 

 

238

 

 

29

 

 

107

 

 

7

 

Adjusted EBIT

290

 

 

199

 

 

342

 

 

1,476

 

 

303

 

 

376

 

 

376

 

 

421

 

Depreciation and amortization expense(1)

88

 

 

86

 

 

83

 

 

329

 

 

84

 

 

82

 

 

82

 

 

81

 

Operating EBITDA

378

 

 

285

 

 

425

 

 

1,805

 

 

387

 

 

458

 

 

458

 

 

502

 

 

 

Q3 ’20

 

Q2 ’20

 

Q1 ’20

 

2019

 

Q4 ’19

 

Q3 ’19

 

Q2 ’19

 

Q1 ’19

 

(In $ millions)

Engineered Materials

1

 

 

 

 

2

 

 

4

 

 

2

 

 

1

 

 

 

 

1

 

Acetate Tow

 

 

 

 

 

 

9

 

 

2

 

 

5

 

 

2

 

 

 

Acetyl Chain

 

 

1

 

 

 

 

10

 

 

3

 

 

6

 

 

 

 

1

 

Other Activities(2)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Accelerated depreciation and amortization expense

1

 

 

1

 

 

2

 

 

23

 

 

7

 

 

12

 

 

2

 

 

2

 

Depreciation and amortization expense(1)

88

 

 

86

 

 

83

 

 

329

 

 

84

 

 

82

 

 

82

 

 

81

 

Total depreciation and amortization expense

89

 

 

87

 

 

85

 

 

352

 

 

91

 

 

94

 

 

84

 

 

83

 

____________________

(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

Q3 ’20

 

Q2 ’20

 

Q1 ’20

 

2019

 

Q4 ’19

 

Q3 ’19

 

Q2 ’19

 

Q1 ’19

 

(In $ millions, except percentages)

Operating Profit (Loss) / Operating Margin

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Engineered Materials

84

 

 

16.0

%

 

(13

)

 

(3.1

)%

 

102

 

 

18.1

%

 

446

 

 

18.7

%

 

88

 

 

16.3

%

 

111

 

 

18.8

%

 

103

 

 

17.4

%

 

144

 

 

21.7

%

Acetate Tow

30

 

 

23.3

%

 

31

 

 

24.4

%

 

27

 

 

20.9

%

 

52

 

 

8.2

%

 

22

 

 

14.9

%

 

34

 

 

21.5

%

 

(44

)

 

(26.8

)%

 

40

 

 

24.1

%

Acetyl Chain(1)

121

 

 

15.6

%

 

121

 

 

18.3

%

 

135

 

 

16.9

%

 

678

 

 

20.0

%

 

108

 

 

14.0

%

 

180

 

 

20.8

%

 

188

 

 

21.7

%

 

202

 

 

22.7

%

Other Activities(2)

(51

)

 

 

 

(56

)

 

 

 

(70

)

 

 

 

(342

)

 

 

 

(150

)

 

 

 

(65

)

 

 

 

(61

)

 

 

 

(66

)

 

 

Total

184

 

 

13.0

%

 

83

 

 

7.0

%

 

194

 

 

13.3

%

 

834

 

 

13.2

%

 

68

 

 

4.7

%

 

260

 

 

16.4

%

 

186

 

 

11.7

%

 

320

 

 

19.0

%

Less: Net Earnings (Loss) Attributable to NCI(1)

2

 

 

 

 

2

 

 

 

 

2

 

 

 

 

6

 

 

 

 

2

 

 

 

 

2

 

 

 

 

1

 

 

 

 

1

 

 

 

Operating Profit (Loss) Attributable to Celanese Corporation

182

 

 

12.9

%

 

81

 

 

6.8

%

 

192

 

 

13.2

%

 

828

 

 

13.1

%

 

66

 

 

4.6

%

 

258

 

 

16.3

%

 

185

 

 

11.6

%

 

319

 

 

18.9

%

Operating Profit (Loss) / Operating Margin Attributable to Celanese Corporation

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Engineered Materials

84

 

 

16.0

%

 

(13

)

 

(3.1

)%

 

102

 

 

18.1

%

 

446

 

 

18.7

%

 

88

 

 

16.3

%

 

111

 

 

18.8

%

 

103

 

 

17.4

%

 

144

 

 

21.7

%

Acetate Tow

30

 

 

23.3

%

 

31

 

 

24.4

%

 

27

 

 

20.9

%

 

52

 

 

8.2

%

 

22

 

 

14.9

%

 

34

 

 

21.5

%

 

(44

)

 

(26.8

)%

 

40

 

 

24.1

%

Acetyl Chain(1)

119

 

 

15.3

%

 

119

 

 

18.0

%

 

133

 

 

16.6

%

 

672

 

 

19.8

%

 

106

 

 

13.7

%

 

178

 

 

20.5

%

 

187

 

 

21.6

%

 

201

 

 

22.6

%

Other Activities(2)

(51

)

 

 

 

(56

)

 

 

 

(70

)

 

 

 

(342

)

 

 

 

(150

)

 

 

 

(65

)

 

 

 

(61

)

 

 

 

(66

)

 

 

Total

182

 

 

12.9

%

 

81

 

 

6.8

%

 

192

 

 

13.2

%

 

828

 

 

13.1

%

 

66

 

 

4.6

%

 

258

 

 

16.3

%

 

185

 

 

11.6

%

 

319

 

 

18.9

%

Equity Earnings and Dividend Income, Other Income (Expense) Attributable to Celanese Corporation

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Engineered Materials

21

 

 

 

 

26

 

 

 

 

53

 

 

 

 

168

 

 

 

 

45

 

 

 

 

41

 

 

 

 

36

 

 

 

 

46

 

 

 

Acetate Tow

28

 

 

 

 

32

 

 

 

 

37

 

 

 

 

112

 

 

 

 

24

 

 

 

 

27

 

 

 

 

29

 

 

 

 

32

 

 

 

Acetyl Chain

2

 

 

 

 

 

 

 

 

1

 

 

 

 

5

 

 

 

 

1

 

 

 

 

2

 

 

 

 

1

 

 

 

 

1

 

 

 

Other Activities(2)

5

 

 

 

 

5

 

 

 

 

5

 

 

 

 

2

 

 

 

 

 

 

 

 

2

 

 

 

 

1

 

 

 

 

(1

)

 

 

Total

56

 

 

 

 

63

 

 

 

 

96

 

 

 

 

287

 

 

 

 

70

 

 

 

 

72

 

 

 

 

67

 

 

 

 

78

 

 

 

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

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Engineered Materials

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Acetate Tow

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Acetyl Chain

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other Activities(2)

28

 

 

 

 

27

 

 

 

 

28

 

 

 

 

(20

)

 

 

 

(71

)

 

 

 

17

 

 

 

 

17

 

 

 

 

17

 

 

 

Total

28

 

 

 

 

27

 

 

 

 

28

 

 

 

 

(20

)

 

 

 

(71

)

 

 

 

17

 

 

 

 

17

 

 

 

 

17

 

 

 

Certain Items Attributable to Celanese Corporation (Table 8)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Engineered Materials

11

 

 

 

 

27

 

 

 

 

10

 

 

 

 

7

 

 

 

 

3

 

 

 

 

2

 

 

 

 

9

 

 

 

 

(7

)

 

 

Acetate Tow

1

 

 

 

 

1

 

 

 

 

3

 

 

 

 

104

 

 

 

 

8

 

 

 

 

10

 

 

 

 

86

 

 

 

 

 

 

 

Acetyl Chain

5

 

 

 

 

(3

)

 

 

 

5

 

 

 

 

50

 

 

 

 

37

 

 

 

 

11

 

 

 

 

1

 

 

 

 

1

 

 

 

Other Activities(2)

7

 

 

 

 

3

 

 

 

 

8

 

 

 

 

220

 

 

 

 

190

 

 

 

 

6

 

 

 

 

11

 

 

 

 

13

 

 

 

Total

24

 

 

 

 

28

 

 

 

 

26

 

 

 

 

381

 

 

 

 

238

 

 

 

 

29

 

 

 

 

107

 

 

 

 

7

 

 

 

Adjusted EBIT / Adjusted EBIT Margin

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Engineered Materials

116

 

 

22.1

%

 

40

 

 

9.5

%

 

165

 

 

29.3

%

 

621

 

 

26.0

%

 

136

 

 

25.2

%

 

154

 

 

26.1

%

 

148

 

 

25.0

%

 

183

 

 

27.6

%

Acetate Tow

59

 

 

45.7

%

 

64

 

 

50.4

%

 

67

 

 

51.9

%

 

268

 

 

42.1

%

 

54

 

 

36.5

%

 

71

 

 

44.9

%

 

71

 

 

43.3

%

 

72

 

 

43.4

%

Acetyl Chain

126

 

 

16.2

%

 

116

 

 

17.5

%

 

139

 

 

17.4

%

 

727

 

 

21.4

%

 

144

 

 

18.7

%

 

191

 

 

22.0

%

 

189

 

 

21.8

%

 

203

 

 

22.8

%

Other Activities(2)

(11

)

 

 

 

(21

)

 

 

 

(29

)

 

 

 

(140

)

 

 

 

(31

)

 

 

 

(40

)

 

 

 

(32

)

 

 

 

(37

)

 

 

Total

290

 

 

20.6

%

 

199

 

 

16.7

%

 

342

 

 

23.4

%

 

1,476

 

 

23.4

%

 

303

 

 

21.2

%

 

376

 

 

23.7

%

 

376

 

 

23.6

%

 

421

 

 

25.0

%

___________________

(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).

 

Table 2 – Supplemental Segment Data and Reconciliation of Segment Adjusted EBIT and Operating EBITDA – Non-GAAP Measures – Unaudited (cont.)

Q3 ’20

 

Q2 ’20

 

Q1 ’20

 

2019

 

Q4 ’19

 

Q3 ’19

 

Q2 ’19

 

Q1 ’19

 

(In $ millions, except percentages)

Depreciation and Amortization Expense(1)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Engineered Materials

33

 

 

 

 

32

 

 

 

 

32

 

 

 

 

127

 

 

 

 

33

 

 

 

 

32

 

 

 

 

31

 

 

 

 

31

 

 

 

Acetate Tow

9

 

 

 

 

9

 

 

 

 

8

 

 

 

 

36

 

 

 

 

8

 

 

 

 

9

 

 

 

 

9

 

 

 

 

10

 

 

 

Acetyl Chain

41

 

 

 

 

41

 

 

 

 

39

 

 

 

 

151

 

 

 

 

39

 

 

 

 

37

 

 

 

 

38

 

 

 

 

37

 

 

 

Other Activities(2)

5

 

 

 

 

4

 

 

 

 

4

 

 

 

 

15

 

 

 

 

4

 

 

 

 

4

 

 

 

 

4

 

 

 

 

3

 

 

 

Total

88

 

 

 

 

86

 

 

 

 

83

 

 

 

 

329

 

 

 

 

84

 

 

 

 

82

 

 

 

 

82

 

 

 

 

81

 

 

 

Operating EBITDA / Operating EBITDA Margin

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Engineered Materials

149

 

 

28.3

%

 

72

 

 

17.1

%

 

197

 

 

35.0

%

 

748

 

 

31.3

%

 

169

 

 

31.4

%

 

186

 

 

31.5

%

 

179

 

 

30.2

%

 

214

 

 

32.3

%

Acetate Tow

68

 

 

52.7

%

 

73

 

 

57.5

%

 

75

 

 

58.1

%

 

304

 

 

47.8

%

 

62

 

 

41.9

%

 

80

 

 

50.6

%

 

80

 

 

48.8

%

 

82

 

 

49.4

%

Acetyl Chain

167

 

 

21.5

%

 

157

 

 

23.7

%

 

178

 

 

22.3

%

 

878

 

 

25.9

%

 

183

 

 

23.7

%

 

228

 

 

26.3

%

 

227

 

 

26.2

%

 

240

 

 

27.0

%

Other Activities(2)

(6

)

 

 

 

(17

)

 

 

 

(25

)

 

 

 

(125

)

 

 

 

(27

)

 

 

 

(36

)

 

 

 

(28

)

 

 

 

(34

)

 

 

Total

378

 

 

26.8

%

 

285

 

 

23.9

%

 

425

 

 

29.1

%

 

1,805

 

 

28.7

%

 

387

 

 

27.0

%

 

458

 

 

28.9

%

 

458

 

 

28.8

%

 

502

 

 

29.8

%

___________________________

(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

 

 

Q3 ’20

 

Q2 ’20

 

Q1 ’20

 

2019

 

Q4 ’19

 

Q3 ’19

 

Q2 ’19

 

Q1 ’19

 

 

 

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

209

 

 

1.76

 

110

 

 

0.93

 

225

 

 

1.88

 

858

 

 

6.89

 

42

 

 

0.35

 

268

 

 

2.17

 

210

 

 

1.67

 

338

 

 

2.64

Income tax provision (benefit)

30

 

 

 

 

35

 

 

 

 

65

 

 

 

 

124

 

 

 

 

(3

)

 

 

 

53

 

 

 

 

28

 

 

 

 

46

 

 

 

Earnings (loss) from continuing operations before tax

239

 

 

 

 

145

 

 

 

 

290

 

 

 

 

982

 

 

 

 

39

 

 

 

 

321

 

 

 

 

238

 

 

 

 

384

 

 

 

Certain Items attributable to Celanese Corporation (Table 8)

24

 

 

 

 

28

 

 

 

 

26

 

 

 

 

381

 

 

 

 

238

 

 

 

 

29

 

 

 

 

107

 

 

 

 

7

 

 

 

Refinancing and related expenses

 

 

 

 

 

 

 

 

 

 

 

 

4

 

 

 

 

 

 

 

 

 

 

 

 

4

 

 

 

 

 

 

 

Adjusted earnings (loss) from continuing operations before tax

263

 

 

 

 

173

 

 

 

 

316

 

 

 

 

1,367

 

 

 

 

277

 

 

 

 

350

 

 

 

 

349

 

 

 

 

391

 

 

 

Income tax (provision) benefit on adjusted earnings(1)

(32

)

 

 

 

(18

)

 

 

 

(41

)

 

 

 

(178

)

 

 

 

(36

)

 

 

 

(38

)

 

 

 

(49

)

 

 

 

(55

)

 

 

Adjusted earnings (loss) from continuing operations(2)

231

 

 

1.95

 

155

 

 

1.30

 

275

 

 

2.29

 

1,189

 

 

9.53

 

241

 

 

1.99

 

312

 

 

2.53

 

300

 

 

2.38

 

336

 

 

2.62

 

Diluted shares (in millions)(3)

Weighted average shares outstanding

118.0

 

 

 

 

118.3

 

 

 

 

119.3

 

 

 

 

123.9

 

 

 

 

120.3

 

 

 

 

122.7

 

 

 

 

125.3

 

 

 

 

127.5

 

 

 

Incremental shares attributable to equity awards

0.6

 

 

 

 

0.5

 

 

 

 

0.6

 

 

 

 

0.8

 

 

 

 

0.6

 

 

 

 

0.6

 

 

 

 

0.5

 

 

 

 

0.7

 

 

 

Total diluted shares

118.6

 

 

 

 

118.8

 

 

 

 

119.9

 

 

 

 

124.7

 

 

 

 

120.9

 

 

 

 

123.3

 

 

 

 

125.8

 

 

 

 

128.2

 

 

 

____________________

(1)

Calculated using adjusted effective tax rates (Table 3a) as follows:

 

Q3 ’20

 

Q2 ’20

 

Q1 ’20

 

2019

 

Q4 ’19

 

Q3 ’19

 

Q2 ’19

 

Q1 ’19

 

(In percentages)

Adjusted effective tax rate

12

 

 

 

 

10

 

 

 

 

13

 

 

 

 

13

 

 

 

 

13

 

 

 

 

11

 

 

 

 

14

 

 

 

 

14

 

 

 

(2)

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)

2019

 

16.7

 

6.5

(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

 

2020

 

2019

 

(In percentages)

US GAAP annual effective tax rate

18

 

 

13

 

Discrete quarterly recognition of GAAP items(1)

(5

)

 

 

Tax impact of other charges and adjustments(2)

(1

)

 

 

Utilization of foreign tax credits

(2

)

 

(3

)

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

1

 

 

3

 

Other(4)

1

 

 

 

Adjusted tax rate

12

 

 

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)

Tax impacts related to full-year forecasted tax opportunities and related costs.

 

Table 4

Net Sales by Segment – Unaudited

 

 

Q3 ’20

 

Q2 ’20

 

Q1 ’20

 

2019

 

Q4 ’19

 

Q3 ’19

 

Q2 ’19

 

Q1 ’19

 

(In $ millions)

Engineered Materials

526

 

 

420

 

 

563

 

 

2,386

 

 

539

 

 

591

 

 

593

 

 

663

 

Acetate Tow

129

 

 

127

 

 

129

 

 

636

 

 

148

 

 

158

 

 

164

 

 

166

 

Acetyl Chain

776

 

 

662

 

 

799

 

 

3,392

 

 

771

 

 

867

 

 

865

 

 

889

 

Intersegment eliminations(1)

(20

)

 

(16

)

 

(31

)

 

(117

)

 

(26

)

 

(30

)

 

(30

)

 

(31

)

Net sales

1,411

 

 

1,193

 

 

1,460

 

 

6,297

 

 

1,432

 

 

1,586

 

 

1,592

 

 

1,687

 

____________________

(1)

Includes intersegment sales primarily related to the Acetyl Chain.

 

Table 4a

Factors Affecting Segment Net Sales Sequentially – Unaudited

 

Three Months Ended September 30, 2020 Compared to Three Months Ended June 30, 2020

 

 

Volume

 

Price

 

Currency

 

Other

 

Total

 

 

(In percentages)

 

Engineered Materials

27

 

(6

)

 

4

 

 

 

25

 

Acetate Tow

1

 

1

 

 

1

 

 

 

3

 

Acetyl Chain

18

 

(2

)

 

1

 

 

 

17

 

 

 

 

 

 

 

 

 

 

 

 

Total Company

20

 

(3

)

 

2

 

(1

)

 

18

 

 

Three Months Ended June 30, 2020 Compared to Three Months Ended March 31, 2020

 

 

Volume

 

Price

 

Currency

 

Other

 

Total

 

(In percentages)

Engineered Materials

(25

)

 

 

 

 

 

(25

)

Acetate Tow

(3

)

 

1

 

 

 

 

(2

)

Acetyl Chain

(6

)

 

(11

)

 

 

 

(17

)(1)

 

 

 

 

 

 

 

 

 

 

Total Company

(13

)

 

(6

)

 

 

1

 

(18

)

 

Three Months Ended March 31, 2020 Compared to Three Months Ended December 31, 2019

 

 

Volume

Price

Currency

Other

Total

 

(In percentages)

Engineered Materials

4

 

 

4

 

Acetate Tow

(9

)

(4

)

(13

)

Acetyl Chain

5

 

(1

)

4

 

 

 

 

 

 

 

Total Company

3

 

(1

)

2

 

 

Three Months Ended December 31, 2019 Compared to Three Months Ended September 30, 2019

 

 

Volume

 

Price

 

Currency

 

Other

 

Total

 

(In percentages)

Engineered Materials

(9

)

 

 

 

 

(9

)

Acetate Tow

(6

)

 

 

 

 

(6

)

Acetyl Chain

(11

)

 

 

 

 

(11

)

 

 

 

 

 

 

 

 

 

 

Total Company

(10

)

 

 

 

 

(10

)

 

Three Months Ended September 30, 2019 Compared to Three Months Ended June 30, 2019

 

 

Volume

 

Price

 

Currency

 

Other

 

Total

 

(In percentages)

Engineered Materials

2

 

 

(2

)

 

(1

)

 

 

(1

)

Acetate Tow

(2

)

 

(1

)

 

 

 

 

(3

)

Acetyl Chain

1

 

 

 

 

(1

)

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Company

2

 

 

(1

)

 

(1

)

 

 

 

 

Three Months Ended June 30, 2019 Compared to Three Months Ended March 31, 2019

 

 

Volume

 

Price

 

Currency

 

Other

 

Total

 

(In percentages)

Engineered Materials

(7

)

 

(3

)

 

(1

)

 

 

(11

)

Acetate Tow

(1

)

 

 

 

 

 

 

(1

)

Acetyl Chain

2

 

 

(4

)

 

(1

)

 

 

(3

)

 

 

 

 

 

 

 

 

 

 

Total Company

(2

)

 

(3

)

 

(1

)

 

 

(6

)

 

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

(2)

Acetate Tow

1

 

2

 

 

 

 

3

 

Acetyl Chain

5

 

(10

)

 

 

 

(5

)

 

 

 

 

 

 

 

 

 

 

Total Company

5

 

(5

)

 

 

 

 

____________________

(1)

2020 includes the effect of the acquisition of the Elotex brand.

(2)

2019 includes the effect of the acquisition of Next Polymers Ltd.

 

Table 4b

Factors Affecting Segment Net Sales Year Over Year – Unaudited

 

Three Months Ended September 30, 2020 Compared to Three Months Ended September 30, 2019

 

 

Volume

 

Price

 

Currency

 

Other

 

Total

 

(In percentages)

Engineered Materials

(10

)

 

(3

)

 

2

 

 

(11

)

Acetate Tow

(15

)

 

(3

)

 

 

 

(18

)

Acetyl Chain

(1

)

 

(11

)

 

1

 

 

(11

)

 

 

 

 

 

 

 

 

 

 

Total Company

(6

)

 

(7

)

 

1

 

1

 

(11

)

 

Three Months Ended June 30, 2020 Compared to Three Months Ended June 30, 2019

 

 

Volume

 

Price

 

Currency

 

Other

 

Total

 

(In percentages)

Engineered Materials

(27

)

 

(1

)

 

(1

)

 

 

(29

)

Acetate Tow

(18

)

 

(5

)

 

 

 

 

(23

)

Acetyl Chain

(14

)

 

(8

)

 

(1

)

 

 

(23

)

 

 

 

 

 

 

 

 

 

 

Total Company

(20

)

 

(5

)

 

(1

)

 

1

 

(25

)

Three Months Ended March 31, 2020 Compared to Three Months Ended March 31, 2019

 

 

Volume

 

Price

 

Currency

 

Other

 

Total

 

(In percentages)

Engineered Materials

(9

)

 

(5

)

 

(1

)

 

 

(15

)

Acetate Tow

(17

)

 

(5

)

 

 

 

 

(22

)

Acetyl Chain

(3

)

 

(7

)

 

(1

)

 

1

 

(10

)

 

 

 

 

 

 

 

 

 

 

Total Company

(7

)

 

(6

)

 

(1

)

 

1

 

(13

)

 

Three Months Ended December 31, 2019 Compared to Three Months Ended December 31, 2018

 

 

Volume

 

Price

 

Currency

 

Other

 

Total

 

(In percentages)

Engineered Materials

(9

)

 

(3

)

 

(1

)

 

 

(13

)

Acetate Tow

(8

)

 

 

 

 

 

 

(8

)

Acetyl Chain

(4

)

 

(13

)

 

(1

)

 

 

(18

)

 

 

 

 

 

 

 

 

 

 

Total Company

(6

)

 

(8

)

 

(1

)

 

 

(15

)

 

Three Months Ended September 30, 2019 Compared to Three Months Ended September 30, 2018

 

 

Volume

 

Price

 

Currency

 

Other

 

Total

 

(In percentages)

Engineered Materials

(4

)

 

(2

)

 

(2

)

 

 

(8

)

Acetate Tow

 

 

 

 

 

 

 

 

Acetyl Chain

6

 

 

(18

)

 

(2

)

 

 

(14

)

 

 

 

 

 

 

 

 

 

 

Total Company

2

 

 

(11

)

 

(2

)

 

1

 

(10

)

 

Three Months Ended June 30, 2019 Compared to Three Months Ended June 30, 2018

 

 

Volume

 

Price

 

Currency

 

Other

 

Total

 

(In percentages)

Engineered Materials

(8

)

 

 

 

(3

)

 

 

(11

)

Acetate Tow

1

 

 

1

 

 

(1

)

 

 

1

 

Acetyl Chain

(1

)

 

(14

)

 

(3

)

 

 

(18

)

 

 

 

 

 

 

 

 

 

 

Total Company

(3

)

 

(8

)

 

(3

)

 

 

(14

)

 

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

)

 

Table 4c

Factors Affecting Segment Net Sales Year Over Year – Unaudited

 

Year Ended December 31, 2019 Compared to Year Ended December 31, 2018

 

 

Volume

 

Price

 

Currency

 

Other

 

Total

 

(In percentages)

Engineered Materials

(5

)

 

 

 

(3

)

 

 

(8

)

Acetate Tow

(2

)

 

 

 

 

 

 

(2

)

Acetyl Chain

(1

)

 

(13

)

 

(2

)

 

 

(16

)

 

 

 

 

 

 

 

 

 

 

Total Company

(3

)

 

(7

)

 

(2

)

 

 

(12

)

 

Table 5

Free Cash Flow – Reconciliation of a Non-GAAP Measure – Unaudited

 

 

Q3 ’20

 

Q2 ’20

 

Q1 ’20

 

2019

 

Q4 ’19

 

Q3 ’19

 

Q2 ’19

 

Q1 ’19

 

(In $ millions, except percentages)

Net cash provided by (used in) investing activities

(78

)

 

(181

)

 

(128

)

 

(493

)

 

(168

)

 

(82

)

 

(66

)

 

(177

)

Net cash provided by (used in) financing activities

(290

)

 

(232

)

 

(16

)

 

(935

)

 

(199

)

 

(299

)

 

(307

)

 

(130

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net cash provided by (used in) operating activities

431

 

 

379

 

 

259

 

 

1,454

 

 

326

 

 

397

 

 

424

 

 

307

 

Capital expenditures on property, plant and equipment

(72

)

 

(88

)

 

(119

)

 

(370

)

 

(144

)

 

(82

)

 

(65

)

 

(79

)

Distributions to NCI

(8

)

 

(8

)

 

(5

)

 

(10

)

 

(3

)

 

 

 

(3

)

 

(4

)

Free cash flow(1)(2)

351

 

 

283

 

 

135

 

 

1,074

 

 

179

 

 

315

 

 

356

 

 

224

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net sales

1,411

 

 

1,193

 

 

1,460

 

 

6,297

 

 

1,432

 

 

1,586

 

 

1,592

 

 

1,687

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Free cash flow as % of Net sales

24.9

%

 

23.7

%

 

9.2

%

 

17.1

%

 

12.5

%

 

19.9

%

 

22.4

%

 

13.3

%

______________________________

(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 or distributions to Mitsui related to our joint venture, Fairway.

(2)

Excludes required debt service and finance lease payments of $26 million and $24 million for the years ended December 31, 2020 and 2019, respectively.

 

Table 6

Cash Dividends Received – Unaudited

 

 

Q3 ’20

 

Q2 ’20

 

Q1 ’20

 

2019

 

Q4 ’19

 

Q3 ’19

 

Q2 ’19

 

Q1 ’19

 

(In $ millions)

Dividends from equity method investments

6

 

 

59

 

 

46

 

 

168

 

 

42

 

 

15

 

 

41

 

 

70

 

Dividends from equity investments without readily determinable fair values

29

 

 

32

 

 

37

 

 

113

 

 

24

 

 

27

 

 

30

 

 

32

 

Total

35

 

 

91

 

 

83

 

 

281

 

 

66

 

 

42

 

 

71

 

 

102

 

 

Table 7

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

 

 

Q3 ’20

 

Q2 ’20

 

Q1 ’20

 

2019

 

Q4 ’19

 

Q3 ’19

 

Q2 ’19

 

Q1 ’19

 

(In $ millions)

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

958

 

 

1,045

 

 

749

 

 

496

 

 

496

 

 

368

 

 

319

 

 

743

 

Long-term debt, net of unamortized deferred financing costs

3,140

 

 

2,989

 

 

3,356

 

 

3,409

 

 

3,409

 

 

3,359

 

 

3,444

 

 

2,933

 

Total debt

4,098

 

 

4,034

 

 

4,105

 

 

3,905

 

 

3,905

 

 

3,727

 

 

3,763

 

 

3,676

 

Cash and cash equivalents

(615

)

 

(539

)

 

(570

)

 

(463

)

 

(463

)

 

(497

)

 

(491

)

 

(441

)

Net debt

3,483

 

 

3,495

 

 

3,535

 

 

3,442

 

 

3,442

 

 

3,230

 

 

3,272

 

 

3,235

 

 

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:

 

 

Q3 ’20

 

Q2 ’20

 

Q1 ’20

 

2019

Q4 ’19

 

Q3 ’19

 

Q2 ’19

 

Q1 ’19

 

Income Statement Classification

 

(In $ millions)

 

 

Plant/office closures

4

 

 

(4

)

 

3

 

26

 

12

 

9

 

2

 

 

3

 

 

Cost of sales / SG&A / Other (charges) gains, net / Gain (loss) on disposition of businesses and assets, net

Asset impairments

2

 

 

25

 

 

4

 

94

(1)

2

 

9

 

83

 

 

 

 

Cost of sales / Other (charges) gains, net

Clear Lake incident

 

 

 

 

4

 

34

 

32

 

2

 

 

 

 

 

Cost of sales

COVID-19

1

 

 

1

 

 

1

 

 

 

 

 

 

 

 

Cost of sales / SG&A

Mergers, acquisitions and dispositions

7

 

 

3

 

 

7

 

12

 

3

 

2

 

4

 

 

3

 

 

Cost of sales / SG&A

Actuarial (gain) loss on pension and postretirement plans

 

 

 

 

 

88

 

88

 

 

 

 

 

 

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

Restructuring

11

 

 

2

 

 

7

 

27

 

6

 

7

 

15

 

 

(1

)

 

SG&A / Other (charges) gains, net / Non-operating pension and other postretirement employee benefit (expense) income

European Commission investigation

 

 

2

 

 

 

89

 

89

 

 

 

 

 

 

Other (charges) gains, net

Commercial disputes

 

 

(1

)

 

 

10

 

6

 

 

2

 

 

2

 

 

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

Other

(1

)

 

 

 

 

1

 

 

 

1

 

 

 

 

SG&A / Gain (loss) on disposition of businesses and assets, net

Certain Items attributable to Celanese Corporation

24

 

 

28

 

 

26

 

381

 

238

 

29

 

107

 

 

7

 

 

 

____________________

(1)

Includes $5 million of asset impairments in 2019 related to the Clear Lake incident.

 

Table 9

Return on Invested Capital (Adjusted) – Presentation of a Non-GAAP Measure – Unaudited

 

 

 

 

 

2019

 

 

 

 

 

(In $ millions, except percentages)

Net earnings (loss) attributable to Celanese Corporation

 

 

 

 

852

 

 

 

 

 

 

 

Adjusted EBIT(Table 1)

 

 

 

 

1,476

 

Adjusted effective tax rate (Table 3a)

 

 

 

 

13

%

Adjusted EBIT tax effected

 

 

 

 

1,284

 

 

 

 

 

 

 

 

2019

 

2018

 

Average

 

(In $ millions, except percentages)

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

496

 

561

 

529

 

Long-term debt, net of unamortized deferred financing costs

3,409

 

2,970

 

3,190

 

Celanese Corporation stockholders’ equity

2,507

 

2,984

 

2,746

 

Invested capital

 

 

 

 

6,465

 

 

 

 

 

 

 

Return on invested capital (adjusted)

 

 

 

 

19.9

%

 

 

 

 

 

 

Net earnings (loss) attributable to Celanese Corporation as a percentage of invested capital

 

 

 

 

13.2

%

 

Investor Relations

Brandon Ayache

Phone: +1 972 443 8509

[email protected]

Media – U.S.

Travis Jacobsen

Phone: +1 972 443 3750

[email protected]

Media – Europe

Petra Czugler

Phone: +49 174 762 8784

[email protected]

Continue Reading

News

Due to Highest Winds and Driest Conditions of the Season, PG&E Will Turn Off Power for Safety to Approximately 361,000 Customers in Targeted Parts of 36 Counties and 17 Tribal Communities

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Pacific Gas and Electric Company (PG&E) will de-energize certain electrical lines for safety starting this morning (Sunday, Oct. 25) as part of a Public Safety Power Shutoff (PSPS). PG&E is calling a PSPS due to a significant, offshore wind event starting Sunday that is forecast to have the driest humidity levels and the strongest winds of the wildfire season thus far, that together create high risk of catastrophic wildfires.

The PSPS event will affect approximately 361,000 customers in targeted portions of 36 counties, including: Alameda, Alpine, Amador, Butte, Calaveras, Colusa, Contra Costa, El Dorado, Fresno, Glenn, Humboldt, Kern, Lake, Madera, Marin, Mariposa, Mendocino, Napa, Nevada, Placer, Plumas, San Joaquin, San Mateo, Santa Clara, Santa Cruz, Shasta, Sierra, Siskiyou, Solano, Sonoma, Stanislaus, Tehama, Trinity, Tuolumne, Yolo and Yuba. Some customers in 17 tribal communities will also be affected.

Some customers previously notified about the potential PSPS will not have their power turned off during this event. This is due to a combination of favorable changes in the weather forecast. Approximately 105,000 customers will not be turned off for this reason. Additionally, another 84,000 will remain energized through the event due to islanding, temporary generation, and other methods.

Affected Counties and Customers

Below is a list of customers who could potentially be affected by this PSPS event.

  • Alameda County: 16,329 customers, 795 Medical Baseline customers
  • Alpine County: 575 customers, 6 Medical Baseline customers
  • Amador County: 10,398 customers, 805 Medical Baseline customers
  • Butte County: 13,066 customers, 1,160 Medical Baseline customers
  • Calaveras County: 15,694 customers, 729 Medical Baseline customers
  • Colusa County: 565 customers, 32 Medical Baseline customers
  • Contra Costa County: 17,966 customers, 883 Medical Baseline customers
  • El Dorado County: 38,462 customers, 2,681 Medical Baseline customers
  • Fresno County: 4,712 customers, 408 Medical Baseline customers
  • Glenn County: 377 customers, 18 Medical Baseline customers
  • Humboldt County: 7,143 customers, 239 Medical Baseline customers
  • Kern County: 627 customers, 32 Medical Baseline customers
  • Lake County: 21,621 customers, 1,572 Medical Baseline customers
  • Madera County: 10,792 customers, 858 Medical Baseline customers
  • Marin County: 13,809 customers, 443 Medical Baseline customers
  • Mariposa County: 703 customers, 14 Medical Baseline customers
  • Mendocino County: 648 customers, 14 Medical Baseline customers
  • Napa County: 11,026 customers, 393 Medical Baseline customers
  • Nevada County: 40,246 customers, 2,445 Medical Baseline customers
  • Placer County: 17,017 customers, 1,060 Medical Baseline customers
  • Plumas County: 3,168 customers, 167 Medical Baseline customers
  • San Joaquin County: 10 customers, 0 Medical Baseline customers
  • San Mateo County: 3,671 customers, 93 Medical Baseline customers
  • Santa Clara County: 4,182 customers, 205 Medical Baseline customers
  • Santa Cruz County: 13,872 customers, 955 Medical Baseline customers
  • Shasta County: 24,746 customers, 1,967 Medical Baseline customers
  • Sierra County: 1,101 customers, 24 Medical Baseline customers
  • Siskiyou County: 57 customers, 0 Medical Baseline customers
  • Solano County: 1,597 customers, 96 Medical Baseline customers
  • Sonoma County: 23,464 customers, 1,164 Medical Baseline customers
  • Stanislaus County: 35 customers, 0 Medical Baseline customers
  • Tehama County: 6,470 customers, 544 Medical Baseline customers
  • Trinity County: 1,376 customers, 74 Medical Baseline customers
  • Tuolumne County: 30,327 customers, 2,220 Medical Baseline customers
  • Yolo County: 165 customers, 4 Medical Baseline customers
  • Yuba County: 4,666 customers, 365 Medical Baseline customers
  • Total*: 360,687 customers, 22,465 Medical Baseline customers

*The following Tribal Community counts are included within the County level detail above.

  • Big Sandy Rancheria Tribal Community: 61 customers, 2 Medical Baseline customers
  • Cold Springs Rancheria of Mono Indians Tribal Community: 54 customers, 5 Medical Baseline customers
  • Cortina Rancheria Tribal Community: 8 customers, 1 Medical Baseline customers
  • Dry Creek Rancheria Tribal Community: 8 customers, 0 Medical Baseline customers
  • Grindstone Rancheria Tribal Community: 49 customers, 3 Medical Baseline customers
  • Hoopa Valley Tribe Tribal Community: 1062 customers, 56 Medical Baseline customers
  • Jackson Rancheria Tribal Community: 28 customers, 0 Medical Baseline customers
  • Karuk Tribe Tribal Community: 42 customers, 0 Medical Baseline customers
  • Middletown Rancheria Tribal Community: 33 customers, 0 Medical Baseline customers
  • North Fork Rancheria Tribal Community: 25 customers, 3 Medical Baseline customers
  • Pit River Tribes Tribal Community: 8 customers, 0 Medical Baseline customers
  • Robinson Rancheria Tribal Community: 96 customers, 4 Medical Baseline customers
  • Shingle Springs Rancheria Tribal Community: 49 customers, 2 Medical Baseline customers
  • Stewarts Point Rancheria (Kashaya Pomo) Tribal Community: 22 customers, 2 Medical Baseline customers
  • Tuolumne Rancheria Tribal Community: 112 customers, 6 Medical Baseline customers
  • Upper Lake Rancheria Tribal Community: 28 customers, 2 Medical Baseline customers
  • Yurok Tribe Tribal Community: 87 customers, 4 Medical Baseline customers

Timeline for Safety Shutoffs

The de-energization will begin around 10 a.m. Sunday morning, beginning with customers in the Northern Sierra region. Shutoffs will continue through Monday into late evening.

Weather is expected to subside Monday morning for the majority of customers, and by Tuesday morning for the remainder. Once it does and it is safe to do so, PG&E will patrol the de-energized lines to determine if they were damaged during the wind event and repair any damage found. PG&E will then safely restore power in stages and as quickly as possible, with the goal of restoring power to nearly all customers within 12 daylight hours after severe weather has passed.

Resource for customers

Customer notifications

Customer notificationsvia text, email and automated phone callbegan Friday, Oct. 23, approximately two days prior to the potential shutoff. Additional notifications one day prior to the event took place Saturday, Oct. 24. Customers enrolled in the companys Medical Baseline program who do not verify that they have received these important safety communications will be individually visited by a PG&E employee with a knock on their door when possible with a focus on customers who rely on electricity for critical life-sustaining equipment.

Community Resource Centers

To support our customers during this PSPS, PG&E will open 106 Community Resource Centers (CRCs). For customers with power turning off Sunday morning, CRCs will be open from 8 a.m. until 10 p.m. today. All CRCs will operate from 8 a.m. to 10 p.m. throughout the event. These temporary CRCs will be open to customers when power is out at their homes and will provide ADA-accessible restrooms, hand-washing stations, medical-equipment charging, WiFi; bottled water, grab-and-go bags and non-perishable snacks.

PG&E updates its CRC locations regularly. To find CRC locations, visit pge.com/crc.

In response to the COVID-19 pandemic, all CRCs will follow important health and safety protocols including:

  • Facial coverings and maintaining a physical distance of at least six feet from those who are not part of the same household will be required at all CRCs.
  • Temperature checks will be administered before entering CRCs that are located indoors.
  • CRC staff will be trained in COVID-19 precautions and will regularly sanitize surfaces and use Plexiglass barriers at check-in.
  • All CRCs will follow county and state requirements regarding COVID-19, including limits on the number of customers permitted indoors at any time.

Besides these health protocols, customers visiting a CRC in 2020 will experience further changes, including a different look and feel. In addition to using existing indoor facilities, PG&E is planning to open CRCs at outdoor, open-air sites in some locations and use large commercial vans as CRCs in other locations. CRC locations will depend on a number of factors, including input from local and tribal leaders.

Online Resources for Customers

  • Customers can look up their address online to find out if their location is being monitored for the potential safety shutoff at www.pge.com/pspsupdates.
  • PG&Es emergency website pge.com/pspsupdates is now available in 13 languages. Currently, the website is available in English, Spanish, Chinese, Tagalog, Russian, Vietnamese, Korean, Farsi, Arabic, Hmong, Khmer, Punjabi and Japanese. Customers will have the opportunity to choose their language of preference for viewing the information when visiting the website. In addition, PG&Es contact center has translation services available in over 200 languages. Customers who need in-language support over the phone can contact us by calling 1-833-208-4167.
  • For additional language support services including how to set language preference, select options for obtaining translated notifications, and receive other translated resources on PSPS, customers can visit pge.com/pspslanguagehelp. This website is also available in 13 languages as listed above.
  • Customers are encouraged to update their contact information and indicate their preferred language for notifications by visiting pge.com/mywildfirealerts or by calling 1-800-743-5000. PG&Es contact center has translation services available in over 200 languages.
  • Tenants and non-account holders can sign up to receive PSPS ZIP Code Alerts for any area where you do not have a PG&E account by visiting pge.com/pspszipcodealerts.
  • PG&E has launched a new tool at its online Safety Action Center at safetyactioncenter.pge.com to help customers prepare. By using the “Make Your Own Emergency Plan” tool and answering a few short questions, visitors to the website can compile and organize the important information needed for a personalized family emergency plan.

About PG&E

Pacific Gas and Electric Company, a subsidiary of PG&E Corporation (NYSE:PCG), is one of the largest combined natural gas and electric energy companies in the United States. Based in San Francisco, with more than 20,000 employees, the company delivers some of the nation’s cleanest energy to 16 million people in Northern and Central California. For more information, visit pge.com and pge.com/news.

Media Relations

415.973.5930

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Editorial & Advertiser disclosureOur website provides you with information, news, press releases, Opinion and advertorials on various financial products and services. This is not to be considered as financial advice and should be considered only for information purposes. We cannot guarantee the accuracy or applicability of any information provided with respect to your individual or personal circumstances. Please seek Professional advice from a qualified professional before making any financial decisions. We link to various third party websites, affiliate sales networks, and may link to our advertising partners websites. Though we are tied up with various advertising and affiliate networks, this does not affect our analysis or opinion. When you view or click on certain links available on our articles, our partners may compensate us for displaying the content to you, or make a purchase or fill a form. This will not incur any additional charges to you. To make things simpler for you to identity or distinguish sponsored articles or links, you may consider all articles or links hosted on our site as a partner endorsed link.
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