Celanese Corporation

01/27/2022 | Press release | Distributed by Public on 01/27/2022 15:27

Celanese Corporation Reports Full Year 2021 and Fourth Quarter Earnings; Reaffirms Full Year 2022 Outlook

Thu, January 27 2022

DALLAS--(BUSINESS WIRE)-- Celanese Corporation (NYSE: CE), a global chemical and specialty materials company, today reported record GAAP diluted earnings per share of $17.06 and record adjusted earnings per share of $18.12 for full year 2021. The Company reported 2021 net sales of $8.5 billion, 51 percent higher than the previous year. Higher net sales were driven by pricing and volume increases over the prior year of 39 percent and 10 percent, respectively. Celanese successfully offset $1.1 billion in raw material, energy, and logistics cost inflation over 2020 to deliver consolidated operating profit of $1.9 billion and adjusted EBIT of $2.5 billion for the year, both records. The Company generated record operating cash flow of $1.8 billion and record free cash flow of $1.3 billion. As part of its strategic plan to drive earnings per share growth, the Company deployed $2.6 billion to organic investments, M&A, and share repurchases in 2021. In addition, during 2021 the Company returned $304 million in cash to shareholders via dividends.

Celanese also reported fourth quarter GAAP diluted earnings per share of $4.83 and adjusted earnings per share of $4.91. The Company generated operating cash flow of $584 million and free cash flow of $415 million in the quarter.

"I thank our teams for the commitment and agility they demonstrated in what was an exceptionally volatile year. They successfully navigated a series of external challenges including Winter Storm Uri, supply chain and logistics disruptions, China production curtailments, and the resurgence of multiple COVID-19 variants to deliver record 2021 adjusted earnings per share that exceeded our prior record performance by a remarkable 65 percent," said Lori Ryerkerk, chairman and chief executive officer.

Fourth Quarter 2021 Financial Highlights:

Three Months Ended

December 31,
2021

September 30,
2021

December 31,
2020

(unaudited)

(In $ millions, except per share data)

Net Sales

Engineered Materials

707

684

572

Acetate Tow

129

128

134

Acetyl Chain

1,476

1,489

910

Intersegment Eliminations

(37

)

(35

)

(25

)

Total

2,275

2,266

1,591

Operating Profit (Loss)

Engineered Materials

67

91

62

Acetate Tow

4

12

30

Acetyl Chain

535

517

186

Other Activities

(89

)

(84

)

(75

)

Total

517

536

203

Net Earnings (Loss)

526

507

1,454

Adjusted EBIT(1)

Engineered Materials

113

137

82

Acetate Tow

38

46

59

Acetyl Chain

536

517

187

Other Activities

(35

)

(52

)

(28

)

Total

652

648

300

Equity Earnings and Dividend Income, Other Income (Expense)

Engineered Materials

30

40

15

Acetate Tow

34

34

29

Operating EBITDA(1)

745

739

387

Diluted EPS - continuing operations

$

4.83

$

4.67

$

12.50

Diluted EPS - total

$

4.79

$

4.56

$

12.50

Adjusted EPS(1)

$

4.91

$

4.82

$

2.09

Net cash provided by (used in) investing activities

(1,286

)

(108

)

979

Net cash provided by (used in) financing activities

(99

)

(228

)

(933

)

Net cash provided by (used in) operating activities

584

630

274

Free cash flow(1)

415

520

181

Year Ended December 31,

2021

2020

(unaudited)

(In $ millions, except per share data)

Net Sales

Engineered Materials

2,718

2,081

Acetate Tow

514

519

Acetyl Chain

5,430

3,147

Intersegment Eliminations

(125

)

(92

)

Total

8,537

5,655

Operating Profit (Loss)

Engineered Materials

411

235

Acetate Tow

56

118

Acetyl Chain

1,819

563

Other Activities

(340

)

(252

)

Total

1,946

664

Net Earnings (Loss)

1,896

1,992

Adjusted EBIT(1)

Engineered Materials

571

403

Acetate Tow

207

249

Acetyl Chain

1,849

568

Other Activities

(154

)

(89

)

Total

2,473

1,131

Equity Earnings and Dividend Income, Other Income (Expense)

Engineered Materials

127

115

Acetate Tow

146

126

Operating EBITDA(1)

2,835

1,475

Diluted EPS - continuing operations

$

17.06

$

16.85

Diluted EPS - total

$

16.86

$

16.75

Adjusted EPS(1)

$

18.12

$

7.64

Net cash provided by (used in) investing activities

(1,119

)

592

Net cash provided by (used in) financing activities

(1,042

)

(1,471

)

Net cash provided by (used in) operating activities

1,757

1,343

Free cash flow(1)

1,263

950

______________________________

(1)

See "Non-US GAAP Financial Measures" below.

Full Year Business Segment Overview

Engineered Materials

Engineered Materials reported record net sales of $2.7 billion in 2021, an increase of 31 percent over the prior year. Net sales growth was driven by volume and price which increased from 2020 by 15 percent and 12 percent, respectively. The business delivered volume growth to meet elevated 2021 demand despite significant sourcing and supply chain constraints that resulted in 18 kt of lost production across the year. Full year GAAP operating profit of $411 million and adjusted EBIT of $571 million, increased from the prior year by $176 million and $168 million, respectively. As a result of commercial initiatives across the year, the business nearly offset approximately $300 million in year over year raw material, energy, and logistics cost inflation. Affiliate earnings of $126 million increased $11 million over the prior year driven by improved performance across all affiliates.

Acetyl Chain

In 2021, the Acetyl Chain generated record net sales of $5.4 billion, an increase of 14 percent over the previous annual record. Pricing increased over the prior year by 62 percent due to strong demand, tightened industry conditions, and Acetyl Chain commercial actions. Pricing expansion more than offset over $700 million in raw material, energy, and logistics cost inflation in 2021 from the prior year. Despite challenges to production including Winter Storm Uri, China energy curtailments, and supply chain disruptions, the Acetyl Chain delivered 9 percent higher volume over the prior year by utilizing its global production network and industry sourcing. The Acetyl Chain generated record GAAP operating profit of $1.8 billion and record adjusted EBIT of $1.8 billion at margins of 33 percent and 34 percent, respectively.

Acetate Tow

Acetate Tow reported net sales of $514 million, a 1 percent decline from 2020 due to a 1 percent pricing decline. GAAP operating profit was $56 million and adjusted EBIT was $207 million for the year and reflected the impact of significantly elevated acetyls and natural gas costs. Dividends from affiliates in 2021 were $146 million, an increase of $20 million over the prior year due to strong affiliate performance.

Recent Highlights:

  • Completed the acquisition of the Santoprene™ TPV elastomers business of Exxon Mobil Corporation for $1.15 billion, strengthening the existing elastomers portfolio and bringing a wider range of functionalized solutions into targeted growth areas.
  • Completed a new GUR® ultra-high molecular weight polyethylene (UHMW-PE) production line at Bishop, Texas, adding 15 kt of manufacturing capacity.
  • Honored by The Women's Forum of New York for female representation on the Celanese Board of Directors.
  • Announced a joint collaboration with Mitsubishi Chemical Advanced Materials to further develop mechanical recycling solutions for both post-industrial and post-consumer sources of polyoxymethylene (POM).

Fourth Quarter 2021 Business Segment Overview

Engineered Materials

Engineered Materials generated record net sales of $707 million in the fourth quarter due to a sequential price increase of 5 percent that offset a volume decrease of 1 percent. As a result of four consecutive quarters of pricing expansion, fourth quarter 2021 pricing reflected a 20 percent increase over the same quarter last year. The business continued to offset the majority of raw material, energy, and logistics cost inflation which drove higher costs of approximately $60 million sequentially. Fourth quarter GAAP operating profit of $67 million and adjusted EBIT of $113 million both declined by $24 million from the prior quarter as a result of accelerated inflation in European natural gas prices and persistent supply chain disruptions which constrained production of the business and its affiliates. Affiliates earnings declined by $9 million sequentially, largely due to supply chain disruptions.

Acetyl Chain

The Acetyl Chain generated net sales of $1.5 billion in the fourth quarter due to a 10 percent sequential expansion in pricing that offset a 10 percent reduction in volume. Amid ongoing moderation in acetic acid and VAM industry pricing in China, the business shifted more volume to the Western Hemisphere. Higher pricing in the fourth quarter more than offset approximately $60 million in raw material, energy, and logistics cost inflation from the prior quarter. Fourth quarter GAAP operating profit was $535 million and adjusted EBIT was $536 million at margins of 36 percent. The Acetyl Chain limited the fourth quarter volume impact of significant external production disruptions, including approximately 80 kt of lost production due to supplier constraints, by flexing its global production network and sourcing from the industry.

Acetate Tow

Acetate Tow generated net sales of $129 million during the fourth quarter, which reflected a sequential price increase of 1 percent and stable volume. Fourth quarter GAAP operating profit of $4 million and adjusted EBIT of $38 million both declined by $8 million sequentially due to higher energy, acetyls, and logistics costs. Dividends from affiliates in the quarter were $34 million, consistent with the prior quarter.

Cash Flow and Tax

The Company generated record operating cash flow of $1.8 billion and record free cash flow of $1.3 billion in 2021. Capital expenditures in the year were $467 million as the Company progressed on several key projects including the 1.3 million ton acetic acid expansion in Clear Lake, Texas. The Company returned $1.3 billion in cash to shareholders during 2021, including $1.0 billion of share repurchases and $304 million of dividends.

The effective U.S. GAAP tax rate was 15 percent for 2021 compared to 11 percent for 2020. The lower effective tax rate for 2020 was due to non-recurring tax benefits related to certain divestiture and reorganization transactions. The full year adjusted tax rate was 15 percent for 2021 versus 12 percent in the prior year due to increased earnings in high tax jurisdictions.

Outlook

"The early 2022 order book reflects continued strong demand for our products across most end markets," said Lori Ryerkerk. "While we continue to closely monitor the impact of COVID-19 variants on demand conditions, the persistent inflationary and volatile supply chain backdrop remains our greatest challenge. Our record 2021 performance demonstrates the ability of our employees and business models to preserve our profitability amid inflation. We anticipate that sequential margin expansion in the first quarter in our downstream businesses, led by Engineered Materials, will help to offset anticipated moderation in Acetyl Chain pricing conditions and drive expected first quarter adjusted earnings of $4.30 to $4.60 per share. With a strong start to the year, we remain confident in our ability to achieve adjusted earnings of at least $15.00 per share in 2022."

A reconciliation of forecasted adjusted earnings per share to U.S. GAAP diluted earnings per share is not available 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 fourth quarter will be posted on its website at investors.celanese.com under Financial Information/Financial Document Library on January 27, 2022. 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 8,500 employees worldwide and had 2021 net sales of $8.5 billion. For more information about Celanese Corporation and its product offerings, visit www.celanese.com.

Forward-Looking Statements

This release may contain "forward-looking statements," which include information concerning the Company's plans, objectives, goals, strategies, future revenues 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; volatility or 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 length and depth of product and industry business cycles, particularly in the automotive, electrical, mobility, textiles, medical, electronics and construction industries; the extent to which the COVID-19 pandemic continues to adversely impact the economic environment, market demand and our operations, as well as the pace of any economic recovery; 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 complete acquisition or investment transactions consistent with the Company's strategy; the ability to identify and execute on other attractive investment opportunities towards which to deploy capital; increased price competition and the introduction of competing products by other companies; market acceptance of our products and technology; compliance and other costs and potential disruption or interruption of production or operations due to accidents, interruptions in sources of raw materials, transportation or logistics disruptions, cyber security incidents, terrorism or political unrest, public health crises (including, but not limited to, the COVID-19 pandemic); 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; the ability to obtain governmental approvals and to construct facilities on terms and schedules acceptable to the Company; changes in the degree of intellectual property and other legal protection afforded to our products or technologies, or the theft of such intellectual property; potential liability for remedial actions and increased costs under existing or future environmental, health and safety 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; tax rates and changes thereto; our ability to obtain regulatory approval for, and satisfy closing conditions to, any transactions described herein; 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 extent of any resurgence in infections and the spread of the disease or variants thereof, and the effectiveness of vaccines or other medical treatments; additional governmental, business and individual actions to contain the spread of COVID-19, including social distancing, work-at-home, stay-at-home and shelter-in-place orders and shutdowns, travel restrictions and quarantines; the extent to which these conditions depress economic activity generally and demand for our products specifically and affect the financial markets; 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 or transportation and shipping disruptions; the risk that we could be exposed to liability, negative publicity or reputational harm related to any incidents of actual or perceived transmission of COVID-19 among employees at our facilities; 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 January 27, 2022 and also available on our website at investors.celanese.com under Financial Information/Financial Document Library.

Results Unaudited

The results in this document, together with the adjustments made to present the results on a comparable basis, have not been audited and are based on internal financial data furnished to management. Quarterly results should not be taken as an indication of the results of operations to be reported for any subsequent period or for the full fiscal year.

Supplemental Information

Additional information about our prior period performance is included in our Quarterly Reports on Form 10-Q and in our Non-US GAAP Financial Measures and Supplemental Information document.

Consolidated Statements of Operations - Unaudited

Three Months Ended

December 31,
2021

September 30,
2021

December 31,
2020

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

Net sales

2,275

2,266

1,591

Cost of sales

(1,554

)

(1,551

)

(1,215

)

Gross profit

721

715

376

Selling, general and administrative expenses

(170

)

(165

)

(137

)

Amortization of intangible assets

(8

)

(6

)

(5

)

Research and development expenses

(23

)

(21

)

(20

)

Other (charges) gains, net

-

-

(2

)

Foreign exchange gain (loss), net

-

2

(3

)

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

(3

)

11

(6

)

Operating profit (loss)

517

536

203

Equity in net earnings (loss) of affiliates

36

44

21

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

(7

)

37

(66

)

Interest expense

(21

)

(21

)

(26

)

Refinancing expense

-

(9

)

-

Interest income

1

2

2

Dividend income - equity investments

33

35

28

Gain (loss) on sale of investments in affiliates

-

-

1,408

Other income (expense), net

(2

)

(2

)

1

Earnings (loss) from continuing operations before tax

557

622

1,571

Income tax (provision) benefit

(27

)

(102

)

(117

)

Earnings (loss) from continuing operations

530

520

1,454

Earnings (loss) from operation of discontinued operations

(3

)

(17

)

(1

)

Income tax (provision) benefit from discontinued operations

(1

)

4

1

Earnings (loss) from discontinued operations

(4

)

(13

)

-

Net earnings (loss)

526

507

1,454

Net (earnings) loss attributable to noncontrolling interests

(2

)

(1

)

(1

)

Net earnings (loss) attributable to Celanese Corporation

524

506

1,453

Amounts attributable to Celanese Corporation

Earnings (loss) from continuing operations

528

519

1,453

Earnings (loss) from discontinued operations

(4

)

(13

)

-

Net earnings (loss)

524

506

1,453

Earnings (loss) per common share - basic

Continuing operations

4.86

4.70

12.56

Discontinued operations

(0.04

)

(0.12

)

-

Net earnings (loss) - basic

4.82

4.58

12.56

Earnings (loss) per common share - diluted

Continuing operations

4.83

4.67

12.50

Discontinued operations

(0.04

)

(0.11

)

-

Net earnings (loss) - diluted

4.79

4.56

12.50

Weighted average shares (in millions)

Basic

108.6

110.5

115.7

Diluted

109.4

111.0

116.3

Consolidated Statements of Operations - Unaudited

Year Ended December 31,

2021

2020

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

Net sales

8,537

5,655

Cost of sales

(5,855

)

(4,362

)

Gross profit

2,682

1,293

Selling, general and administrative expenses

(633

)

(482

)

Amortization of intangible assets

(25

)

(22

)

Research and development expenses

(86

)

(74

)

Other (charges) gains, net

3

(39

)

Foreign exchange gain (loss), net

2

(5

)

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

3

(7

)

Operating profit (loss)

1,946

664

Equity in net earnings (loss) of affiliates

146

134

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

106

17

Interest expense

(91

)

(109

)

Refinancing expense

(9

)

-

Interest income

8

6

Dividend income - equity investments

147

126

Gain (loss) on sale of investments in affiliates

-

1,408

Other income (expense), net

(5

)

5

Earnings (loss) from continuing operations before tax

2,248

2,251

Income tax (provision) benefit

(330

)

(247

)

Earnings (loss) from continuing operations

1,918

2,004

Earnings (loss) from operation of discontinued operations

(27

)

(14

)

Income tax (provision) benefit from discontinued operations

5

2

Earnings (loss) from discontinued operations

(22

)

(12

)

Net earnings (loss)

1,896

1,992

Net (earnings) loss attributable to noncontrolling interests

(6

)

(7

)

Net earnings (loss) attributable to Celanese Corporation

1,890

1,985

Amounts attributable to Celanese Corporation

Earnings (loss) from continuing operations

1,912

1,997

Earnings (loss) from discontinued operations

(22

)

(12

)

Net earnings (loss)

1,890

1,985

Earnings (loss) per common share - basic

Continuing operations

17.19

16.95

Discontinued operations

(0.20

)

(0.10

)

Net earnings (loss) - basic

16.99

16.85

Earnings (loss) per common share - diluted

Continuing operations

17.06

16.85

Discontinued operations

(0.20

)

(0.10

)

Net earnings (loss) - diluted

16.86

16.75

Weighted average shares (in millions)

Basic

111.2

117.8

Diluted

112.1

118.5

Consolidated Balance Sheets - Unaudited

As of

December 31,

2021

As of

December 31,

2020

(In $ millions)

ASSETS

Current Assets

Cash and cash equivalents

536

955

Trade receivables - third party and affiliates, net

1,161

792

Non-trade receivables, net

506

450

Inventories

1,524

978

Marketable securities

10

533

Other assets

70

55

Total current assets

3,807

3,763

Investments in affiliates

823

820

Property, plant and equipment, net

4,193

3,939

Operating lease right-of-use assets

236

232

Deferred income taxes

248

259

Other assets

521

411

Goodwill

1,412

1,166

Intangible assets, net

735

319

Total assets

11,975

10,909

LIABILITIES AND EQUITY

Current Liabilities

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

791

496

Trade payables - third party and affiliates

1,160

797

Other liabilities

473

680

Income taxes payable

81

-

Total current liabilities

2,505

1,973

Long-term debt, net of unamortized deferred financing costs

3,176

3,227

Deferred income taxes

555

509

Uncertain tax positions

280

240

Benefit obligations

558

643

Operating lease liabilities

200

208

Other liabilities

164

214

Commitments and Contingencies

Stockholders' Equity

Treasury stock, at cost

(5,492

)

(4,494

)

Additional paid-in capital

333

257

Retained earnings

9,677

8,091

Accumulated other comprehensive income (loss), net

(329

)

(328

)

Total Celanese Corporation stockholders' equity

4,189

3,526

Noncontrolling interests

348

369

Total equity

4,537

3,895

Total liabilities and equity

11,975

10,909

Non-US GAAP Financial Measures and Supplemental Information

January 27, 2022

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

2021

Q4 '21

Q3 '21

Q2 '21

Q1 '21

2020

Q4 '20

Q3 '20

Q2 '20

Q1 '20

(In $ millions)

Net earnings (loss) attributable to Celanese Corporation

1,890

524

506

538

322

1,985

1,453

207

107

218

(Earnings) loss from discontinued operations

22

4

13

4

1

12

-

2

3

7

Interest income

(8

)

(1

)

(2

)

(4

)

(1

)

(6

)

(2

)

(1

)

(1

)

(2

)

Interest expense

91

21

21

24

25

109

26

28

27

28

Refinancing expense

9

-

9

-

-

-

-

-

-

-

Income tax provision (benefit)

330

27

102

116

85

247

117

30

35

65

Certain Items attributable to Celanese Corporation (Table 8)

139

77

(1

)

13

50

(1,216

)

(1,294

)

24

28

26

Adjusted EBIT

2,473

652

648

691

482

1,131

300

290

199

342

Depreciation and amortization expense(1)

362

93

91

90

88

344

87

88

86

83

Operating EBITDA

2,835

745

739

781

570

1,475

387

378

285

425

2021

Q4 '21

Q3 '21

Q2 '21

Q1 '21

2020

Q4 '20

Q3 '20

Q2 '20

Q1 '20

(In $ millions)

Engineered Materials

9

4

2

1

2

5

2

1

-

2

Acetate Tow

-

-

-

-

-

-

-

-

-

-

Acetyl Chain

-

-

-

-

-

1

-

-

1

-

Other Activities(2)

-

-

-

-

-

-

-

-

-

-

Accelerated depreciation and amortization expense

9

4

2

1

2

6

2

1

1

2

Depreciation and amortization expense(1)

362

93

91

90

88

344

87

88

86

83

Total depreciation and amortization expense

371

97

93

91

90

350

89

89

87

85

______________________________

(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

2021

Q4 '21

Q3 '21

Q2 '21

Q1 '21

2020

Q4 '20

Q3 '20

Q2 '20

Q1 '20

(In $ millions, except percentages)

Operating Profit (Loss) / Operating Margin

Engineered Materials

411

15.1

%

67

9.5

%

91

13.3

%

123

18.0

%

130

20.2

%

235

11.3

%

62

10.8

%

84

16.0

%

(13

)

(3.1

)%

102

18.1

%

Acetate Tow

56

10.9

%

4

3.1

%

12

9.4

%

24

17.4

%

16

13.4

%

118

22.7

%

30

22.4

%

30

23.3

%

31

24.4

%

27

20.9

%

Acetyl Chain(1)

1,819

33.5

%

535

36.2

%

517

34.7

%

516

36.6

%

251

23.8

%

563

17.9

%

186

20.4

%

121

15.6

%

121

18.3

%

135

16.9

%

Other Activities(2)

(340

)

(89

)

(84

)

(96

)

(71

)

(252

)

(75

)

(51

)

(56

)

(70

)

Total

1,946

22.8

%

517

22.7

%

536

23.7

%

567

25.8

%

326

18.1

%

664

11.7

%

203

12.8

%

184

13.0

%

83

7.0

%

194

13.3

%

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

6

2

1

2

1

7

1

2

2

2

Operating Profit (Loss) Attributable to Celanese Corporation

1,940

22.7

%

515

22.6

%

535

23.6

%

565

25.7

%

325

18.1

%

657

11.6

%

202

12.7

%

182

12.9

%

81

6.8

%

192

13.2

%

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

Engineered Materials

411

15.1

%

67

9.5

%

91

13.3

%

123

18.0

%

130

20.2

%

235

11.3

%

62

10.8

%

84

16.0

%

(13

)

(3.1

)%

102

18.1

%

Acetate Tow

56

10.9

%

4

3.1

%

12

9.4

%

24

17.4

%

16

13.4

%

118

22.7

%

30

22.4

%

30

23.3

%

31

24.4

%

27

20.9

%

Acetyl Chain(1)

1,813

33.4

%

533

36.1

%

516

34.7

%

514

36.5

%

250

23.7

%

556

17.7

%

185

20.3

%

119

15.3

%

119

18.0

%

133

16.6

%

Other Activities(2)

(340

)

(89

)

(84

)

(96

)

(71

)

(252

)

(75

)

(51

)

(56

)

(70

)

Total

1,940

22.7

%

515

22.6

%

535

23.6

%

565

25.7

%

325

18.1

%

657

11.6

%

202

12.7

%

182

12.9

%

81

6.8

%

192

13.2

%

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

Engineered Materials

127

30

40

32

25

115

15

21

26

53

Acetate Tow

146

34

34

37

41

126

29

28

32

37

Acetyl Chain

8

2

2

2

2

5

2

2

-

1

Other Activities(2)

7

1

1

4

1

19

4

5

5

5

Total

288

67

77

75

69

265

50

56

63

96

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

Engineered Materials

-

-

-

-

-

1

1

-

-

-

Acetate Tow

-

-

-

-

-

-

-

-

-

-

Acetyl Chain

-

-

-

-

-

-

-

-

-

-

Other Activities(2)

106

(7

)

37

38

38

16

(67

)

28

27

28

Total

106

(7

)

37

38

38

17

(66

)

28

27

28

Gain (Loss) On Sale of Investments in Affiliates

Engineered Materials

-

-

-

-

-

1,408

1,408

-

-

-

Acetate Tow

-

-

-

-

-

-

-

-

-

-

Acetyl Chain

-

-

-

-

-

-

-

-

-

-

Other Activities(2)

-

-

-

-

-

-

-

-

-

-

Total

-

-

-

-

-

1,408

1,408

-

-

-

Certain Items Attributable to Celanese Corporation(Table 8)

Engineered Materials

33

16

6

6

5

(1,356

)

(1,404

)

11

27

10

Acetate Tow

5

-

-

1

4

5

-

1

1

3

Acetyl Chain

28

1

(1

)

(2

)

30

7

-

5

(3

)

5

Other Activities(2)

73

60

(6

)

8

11

128

110

7

3

8

Total

139

77

(1

)

13

50

(1,216

)

(1,294

)

24

28

26

______________________________

(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.)

2021

Q4 '21

Q3 '21

Q2 '21

Q1 '21

2020

Q4 '20

Q3 '20

Q2 '20

Q1 '20

(In $ millions, except percentages)

Adjusted EBIT / Adjusted EBIT Margin

Engineered Materials

571

21.0

%

113

16.0

%

137

20.0

%

161

23.6

%

160

24.8

%

403

19.4

%

82

14.3

%

116

22.1

%

40

9.5

%

165

29.3

%

Acetate Tow

207

40.3

%

38

29.5

%

46

35.9

%

62

44.9

%

61

51.3

%

249

48.0

%

59

44.0

%

59

45.7

%

64

50.4

%

67

51.9

%

Acetyl Chain

1,849

34.1

%

536

36.3

%

517

34.7

%

514

36.5

%

282

26.7

%

568

18.0

%

187

20.5

%

126

16.2

%

116

17.5

%

139

17.4

%

Other Activities(2)

(154

)

(35

)

(52

)

(46

)

(21

)

(89

)

(28

)

(11

)

(21

)

(29

)

Total

2,473

29.0

%

652

28.7

%

648

28.6

%

691

31.4

%

482

26.8

%

1,131

20.0

%

300

18.9

%

290

20.6

%

199

16.7

%

342

23.4

%

Depreciation and Amortization Expense(1)

Engineered Materials

135

35

33

34

33

129

32

33

32

32

Acetate Tow

39

10

10

9

10

36

10

9

9

8

Acetyl Chain

171

43

44

43

41

162

41

41

41

39

Other Activities(2)

17

5

4

4

4

17

4

5

4

4

Total

362

93

91

90

88

344

87

88

86

83

Operating EBITDA / Operating EBITDA Margin

Engineered Materials

706

26.0

%

148

20.9

%

170

24.9

%

195

28.6

%

193

29.9

%

532

25.6

%

114

19.9

%

149

28.3

%

72

17.1

%

197

35.0

%

Acetate Tow

246

47.9

%

48

37.2

%

56

43.8

%

71

51.4

%

71

59.7

%

285

54.9

%

69

51.5

%

68

52.7

%

73

57.5

%

75

58.1

%

Acetyl Chain

2,020

37.2

%

579

39.2

%

561

37.7

%

557

39.5

%

323

30.6

%

730

23.2

%

228

25.1

%

167

21.5

%

157

23.7

%

178

22.3

%

Other Activities(2)

(137

)

(30

)

(48

)

(42

)

(17

)

(72

)

(24

)

(6

)

(17

)

(25

)

Total

2,835

33.2

%

745

32.7

%

739

32.6

%

781

35.5

%

570

31.7

%

1,475

26.1

%

387

24.3

%

378

26.8

%

285

23.9

%

425

29.1

%

______________________________

(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

2021

Q4 '21

Q3 '21

Q2 '21

Q1 '21

2020

Q4 '20

Q3 '20

Q2 '20

Q1 '20

per
share

per
share

per
share

per
share

per
share

per
share

per
share

per
share

per
share

per
share

(In $ millions, except per share data)

Earnings (loss) from continuing operations attributable to Celanese Corporation

1,912

17.06

528

4.83

519

4.67

542

4.81

323

2.83

1,997

16.85

1,453

12.50

209

1.76

110

0.93

225

1.88

Income tax provision (benefit)

330

27

102

116

85

247

117

30

35

65

Earnings (loss) from continuing operations before tax

2,242

555

621

658

408

2,244

1,570

239

145

290

Certain Items attributable to Celanese Corporation(Table 8)

139

77

(1

)

13

50

(1,216

)

(1,294

)

24

28

26

Refinancing and related expenses

9

-

9

-

-

-

-

-

-

-

Adjusted earnings (loss) from continuing operations before tax

2,390

632

629

671

458

1,028

276

263

173

316

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

(359

)

(95

)

(94

)

(105

)

(64

)

(123

)

(33

)

(32

)

(18

)

(41

)

Adjusted earnings (loss) from continuing operations(2)

2,031

18.12

537

4.91

535

4.82

566

5.02

394

3.46

905

7.64

243

2.09

231

1.95

155

1.30

275

2.29

Diluted shares (in millions)(3)

Weighted average shares outstanding

111.2

108.6

110.5

112.3

113.5

117.8

115.7

118.0

118.3

119.3

Incremental shares attributable to equity awards

0.9

0.8

0.5

0.5

0.5

0.7

0.6

0.6

0.5

0.6

Total diluted shares

112.1

109.4

111.0

112.8

114.0

118.5

116.3

118.6

118.8

119.9

______________________________

(1)

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

2021

Q4 '21

Q3 '21

Q2 '21

Q1 '21

2020

Q4 '20

Q3 '20

Q2 '20

Q1 '20

Adjusted effective tax rate

15

15

15

16

14

12

12

12

10

13

(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)

Q4 '21 & 2021

1.1

6.3

Q4 '20 & 2020

12.4

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

Actual

2021

2020

(In percentages)

US GAAP annual effective tax rate

15

11

Discrete quarterly recognition of GAAP items(1)

(2

)

12

Tax impact of other charges and adjustments(2)

(1

)

(9

)

Utilization of foreign tax credits

(1

)

(3

)

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

3

-

Other(4)

1

1

Adjusted tax rate

15

12

______________________________

Note: As part of the year-end reconciliation, we will update the reconciliation of the GAAP effective tax rate for actual results.

(1)

Such as changes in tax laws (including US tax reform), deferred taxes on outside basis differences, changes in uncertain tax positions and prior year audit adjustments.

(2)

Reflects the tax impact on pre-tax adjustments presented in Certain Items (Table 8), which are excluded from pre-tax income for adjusted earnings per share purposes.

(3)

Reflects changes in valuation allowances related to changes in judgment regarding the realizability of deferred tax assets or current year operations, excluding other charges and adjustments.

(4)

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

Table 4

Net Sales by Segment - Unaudited

2021

Q4 '21

Q3 '21

Q2 '21

Q1 '21

2020

Q4 '20

Q3 '20

Q2 '20

Q1 '20

(In $ millions)

Engineered Materials

2,718

707

684

682

645

2,081

572

526

420

563

Acetate Tow

514

129

128

138

119

519

134

129

127

129

Acetyl Chain

5,430

1,476

1,489

1,409

1,056

3,147

910

776

662

799

Other Activities

-

-

-

-

-

-

-

-

-

-

Intersegment eliminations(1)

(125

)

(37

)

(35

)

(31

)

(22

)

(92

)

(25

)

(20

)

(16

)

(31

)

Net sales

8,537

2,275

2,266

2,198

1,798

5,655

1,591

1,411

1,193

1,460

______________________________

(1)

Includes intersegment sales primarily related to the Acetyl Chain.

Table 4a

Factors Affecting Segment Net Sales Sequentially - Unaudited

Three Months Ended December 31, 2021 Compared to Three Months Ended September 30, 2021

Volume

Price

Currency

Other

Total

(In percentages)

Engineered Materials

(1

)

5

(1

)

-

3

(1)

Acetate Tow

-

1

-

-

1

Acetyl Chain

(10

)

10

(1

)

-

(1

)

Total Company

(7

)

8

(1

)

-

-

Three Months Ended September 30, 2021 Compared to Three Months Ended June 30, 2021

Volume

Price

Currency

Other

Total

(In percentages)

Engineered Materials

(2

)

3

(1

)

-

-

Acetate Tow

(8

)

-

-

-

(8

)

Acetyl Chain

3

3

-

-

6

Total Company

1

3

(1

)

-

3

Three Months Ended June 30, 2021 Compared to Three Months Ended March 31, 2021

Volume

Price

Currency

Other

Total

(In percentages)

Engineered Materials

(1

)

7

-

-

6

Acetate Tow

16

-

-

-

16

Acetyl Chain

7

27

-

-

34

Total Company

4

18

-

-

22

Three Months Ended March 31, 2021 Compared to Three Months Ended December 31, 2020

Volume

Price

Currency

Other

Total

(In percentages)

Engineered Materials

6

6

1

-

13

Acetate Tow

(10

)

(1

)

-

-

(11

)

Acetyl Chain

(7

)

23

-

-

16

Total Company

(3

)

15

1

-

13

Three Months Ended December 31, 2020 Compared to Three Months Ended September 30, 2020

Volume

Price

Currency

Other

Total

(In percentages)

Engineered Materials

7

-

2

-

9

Acetate Tow

4

(1

)

-

-

3

Acetyl Chain

6

10

1

-

17

Total Company

7

5

1

-

13

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

)

(2)

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

______________________________

(1) 2021 includes the effect of the acquisition of the Santoprene™ thermoplastic vulcanizates elastomers business.

(2)

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

Table 4b

Factors Affecting Segment Net Sales Year Over Year - Unaudited

Three Months Ended December 31, 2021 Compared to Three Months Ended December 31, 2020

Volume

Price

Currency

Other

Total

(In percentages)

Engineered Materials

5

20

(1

)

-

24

Acetate Tow

(3

)

(1

)

-

-

(4

)

Acetyl Chain

(6

)

68

-

-

62

Total Company

(2

)

46

(1

)

-

43

Three Months Ended September 30, 2021 Compared to Three Months Ended September 30, 2020

Volume

Price

Currency

Other

Total

(In percentages)

Engineered Materials

11

17

2

-

30

Acetate Tow

-

(2

)

-

1

(1

)

Acetyl Chain

11

80

1

-

92

Total Company

10

50

1

-

61

Three Months Ended June 30, 2021 Compared to Three Months Ended June 30, 2020

Volume

Price

Currency

Other

Total

(In percentages)

Engineered Materials

43

11

8

-

62

Acetate Tow

10

(1

)

-

-

9

Acetyl Chain

27

83

3

-

113

Total Company

31

50

4

(1

)

84

Three Months Ended March 31, 2021 Compared to Three Months Ended March 31, 2020

Volume

Price

Currency

Other

Total

(In percentages)

Engineered Materials

7

2

6

-

15

Acetate Tow

(8

)

-

-

-

(8

)

Acetyl Chain

5

25

2

-

32

Total Company

5

14

4

-

23

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

Volume

Price

Currency

Other

Total

(In percentages)

Engineered Materials

6

(4

)

4

-

6

Acetate Tow

(7

)

(3

)

1

-

(9

)

Acetyl Chain

19

(3

)

2

-

18

Total Company

12

(4

)

3

-

11

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

)

Table 4c

Factors Affecting Segment Net Sales Year Over Year - Unaudited

Year Ended December 31, 2021 Compared to Year Ended December 31, 2020

Volume

Price

Currency

Other

Total

(In percentages)

Engineered Materials

15

12

4

-

31

Acetate Tow

-

(1

)

-

-

(1

)

Acetyl Chain

9

62

2

-

73

Total Company

10

39

2

-

51

Year Ended December 31, 2020 Compared to Year Ended December 31, 2019

Volume

Price

Currency

Other

Total

(In percentages)

Engineered Materials

(11

)

(3

)

1

-

(13

)

Acetate Tow

(14

)

(4

)

-

-

(18

)

Acetyl Chain

-

(8

)

1

-

(7

)

Total Company

(5

)

(6

)

-

1

(10

)

Table 5

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

2021

Q4 '21

Q3 '21

Q2 '21

Q1 '21

2020

Q4 '20

Q3 '20

Q2 '20

Q1 '20

(In $ millions, except percentages)

Net cash provided by (used in) investing activities

(1,119

)

(1,286

)

(108

)

177

98

592

979

(78

)

(181

)

(128

)

Net cash provided by (used in) financing activities

(1,042

)

(99

)

(228

)

(344

)

(371

)

(1,471

)

(933

)

(290

)

(232

)

(16

)

Net cash provided by (used in) operating activities

1,757

584

630

427

116

1,343

274

431

379

259

Capital expenditures on property, plant and equipment

(467

)

(163

)

(102

)

(110

)

(92

)

(364

)

(85

)

(72

)

(88

)

(119

)

Distributions to NCI

(27

)

(6

)

(8

)

(8

)

(5

)

(29

)

(8

)

(8

)

(8

)

(5

)

Free cash flow(1)(2)

1,263

415

520

309

19

950

181

351

283

135

Net sales

8,537

2,275

2,266

2,198

1,798

5,655

1,591

1,411

1,193

1,460

Free cash flow as % of Net sales

14.8

%

18.2

%

22.9

%

14.1

%

1.1

%

16.8

%

11.4

%

24.9

%

23.7

%

9.2

%

______________________________

(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 $30 million and $26 million for the years ended December 31, 2021 and 2020, respectively.

Table 6

Cash Dividends Received - Unaudited

2021

Q4 '21

Q3 '21

Q2 '21

Q1 '21

2020

Q4 '20

Q3 '20

Q2 '20

Q1 '20

(In $ millions)

Dividends from equity method investments

112

51

8

18

35

147

36

6

59

46

Dividends from equity investments without readily determinable fair values

147

33

35

37

42

126

28

29

32

37

Total

259

84

43

55

77

273

64

35

91

83

Table 7

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

2021

Q4 '21

Q3 '21

Q2 '21

Q1 '21

2020

Q4 '20

Q3 '20

Q2 '20

Q1 '20

(In $ millions)

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

791

791

103

500

497

496

496

958

1,045

749

Long-term debt, net of unamortized deferred financing costs

3,176

3,176

3,724

3,156

3,135

3,227

3,227

3,140

2,989

3,356

Total debt

3,967

3,967

3,827

3,656

3,632

3,723

3,723

4,098

4,034

4,105

Cash and cash equivalents

(536

)

(536

)

(1,340

)

(1,054

)

(791

)

(955

)

(955

)

(615

)

(539

)

(570

)

Net debt

3,431

3,431

2,487

2,602

2,841

2,768

2,768

3,483

3,495

3,535

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:

2021

Q4 '21

Q3 '21

Q2 '21

Q1 '21

2020

Q4 '20

Q3 '20

Q2 '20

Q1 '20

Income Statement Classification

(In $ millions)

Plant/office closures

7

5

4

3

(5

)

10

7

4

(4

)

3

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

Asset impairments

2

-

-

1

1

31

-

2

25

4

Cost of sales / Other (charges) gains, net

Clear Lake incident

-

-

-

-

-

4

-

-

-

4

Cost of sales

COVID-19

1

1

-

-

-

5

2

1

1

1

Cost of sales / SG&A

Mergers, acquisitions and dispositions

29

19

4

6

-

22

5

7

3

7

Cost of sales / SG&A

Impact from natural disasters(1)

41

-

-

-

41

-

-

-

-

-

Cost of sales

Actuarial (gain) loss on pension and postretirement plans

43

43

-

-

-

95

95

-

-

-

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

Restructuring

11

3

3

2

3

25

5

11

2

7

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

European Commission investigation

-

-

-

-

-

2

-

-

2

-

Other (charges) gains, net

Commercial disputes

16

4

2

1

9

(1

)

-

-

(1

)

-

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

(Gain) loss on sale of investments in affiliates

-

-

-

-

-

(1,408

)

(1,408

)

-

-

-

Gain (loss) on sale of investments in affiliates

(Gain) loss on sale of assets(2)

(12

)

2

(14

)

-

-

-

-

-

-

-

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

Other

1

-

-

-

1

(1

)

-

(1

)

-

-

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

Certain Items attributable to Celanese Corporation

139

77

(1

)

13

50

(1,216

)

(1,294

)

24

28

26

______________________________

(1)

Primarily associated with Winter Storm Uri.

(2)

Primarily associated with the sale of our Spondon site.

Table 9

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

2021

2020

(In $ millions, except
percentages)

(In $ millions, except
percentages)

Net earnings (loss) attributable to Celanese Corporation

1,890

1,985

Adjusted EBIT (Table 1)

2,473

1,131

Adjusted effective tax rate (Table 3a)

15

%

12

%

Adjusted EBIT tax effected

2,102

995

2021

2020

Average

2020

2019

Average

(In $ millions, except percentages)

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

791

496

644

496

496

496

Long-term debt, net of unamortized deferred financing costs

3,176

3,227

3,202

3,227

3,409

3,318

Celanese Corporation stockholders' equity

4,189

3,526

3,858

3,526

2,507

3,017

Invested capital

7,704

6,831

Return on invested capital (adjusted)

27.3

%

14.6

%

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

24.5

%

29.1

%

View source version on businesswire.com: https://www.businesswire.com/news/home/20220126005922/en/

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 69 45009 1206
[email protected]

Source: Celanese Corporation