Celanese Corporation Reports Second Quarter Earnings; Maintains 2016 Outlook
Celanese Corporation (NYSE: CE), a global technology and specialty
materials company, today reported second quarter 2016 GAAP diluted
earnings per share of $1.50 and adjusted earnings per share of $1.59.
During the quarter, we delivered year-over-year earnings per share
growth despite significant turnaround activity and heightened
macroeconomic uncertainty. Our success is driven by our ability to drive
differentiated results through the strength of our models and focus on
productivity. In our Materials Solutions business, we combine the
broadest materials portfolio with our applications expertise to develop
innovative solutions for our customers in our engineered materials
opportunity pipeline. In the Acetyl Chain, we leverage our global
footprint to capture opportunities along our integrated value chain to
maximize profitability.
Second Quarter 2016 Financial Highlights:
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Three Months Ended
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June 30, 2016
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March 31, 2016
|
|
|
June 30, 2015
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|
|
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(unaudited)
|
|
|
|
(In $ millions)
|
Operating Profit (Loss)
|
|
|
|
|
|
|
|
|
|
Advanced Engineered Materials
|
|
|
82
|
|
|
|
88
|
|
|
|
67
|
|
Consumer Specialties
|
|
|
80
|
|
|
|
78
|
|
|
|
77
|
|
Total Materials Solutions
|
|
|
162
|
|
|
|
166
|
|
|
|
144
|
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Industrial Specialties
|
|
|
29
|
|
|
|
31
|
|
|
|
28
|
|
Acetyl Intermediates
|
|
|
77
|
|
|
|
114
|
|
|
|
54
|
|
Eliminations
|
|
|
1
|
|
|
|
—
|
|
|
|
—
|
|
Total Acetyl Chain
|
|
|
107
|
|
|
|
145
|
|
|
|
82
|
|
Other Activities
|
|
|
(26
|
)
|
|
|
(24
|
)
|
|
|
(38
|
)
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Total
|
|
|
243
|
|
|
|
287
|
|
|
|
188
|
|
|
|
|
|
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Three Months Ended
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June 30, 2016
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March 31, 2016
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June 30, 2015
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|
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(unaudited)
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|
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|
(In $ millions, except per share data)
|
Adjusted EBIT(1)(2)
|
|
|
|
|
|
|
|
|
|
Advanced Engineered Materials
|
|
|
|
111
|
|
|
|
|
120
|
|
|
|
|
102
|
|
Consumer Specialties
|
|
|
|
108
|
|
|
|
|
106
|
|
|
|
|
105
|
|
Total Materials Solutions
|
|
|
|
219
|
|
|
|
|
226
|
|
|
|
|
207
|
|
Industrial Specialties
|
|
|
|
30
|
|
|
|
|
33
|
|
|
|
|
30
|
|
Acetyl Intermediates
|
|
|
|
80
|
|
|
|
|
115
|
|
|
|
|
107
|
|
Eliminations
|
|
|
|
1
|
|
|
|
|
—
|
|
|
|
|
—
|
|
Total Acetyl Chain
|
|
|
|
111
|
|
|
|
|
148
|
|
|
|
|
137
|
|
Other Activities
|
|
|
|
(18
|
)
|
|
|
|
(16
|
)
|
|
|
|
(19
|
)
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Total
|
|
|
|
312
|
|
|
|
|
358
|
|
|
|
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325
|
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|
|
|
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Equity Earnings, Cost-Dividend Income, Other Income (Expense)
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Advanced Engineered Materials
|
|
|
|
27
|
|
|
|
|
31
|
|
|
|
|
31
|
|
Consumer Specialties
|
|
|
|
28
|
|
|
|
|
28
|
|
|
|
|
27
|
|
Total Materials Solutions
|
|
|
|
55
|
|
|
|
|
59
|
|
|
|
|
58
|
|
|
|
|
|
|
|
|
|
|
|
Net earnings (loss)
|
|
|
|
223
|
|
|
|
|
259
|
|
|
|
|
201
|
|
Operating EBITDA(1)
|
|
|
|
385
|
|
|
|
|
431
|
|
|
|
|
391
|
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Diluted EPS - continuing operations
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$
|
1.50
|
|
|
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$
|
1.73
|
|
|
|
$
|
1.34
|
|
Diluted EPS - total
|
|
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$
|
1.50
|
|
|
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$
|
1.73
|
|
|
|
$
|
1.33
|
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Adjusted EPS(1)
|
|
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$
|
1.59
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|
|
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$
|
1.83
|
|
|
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$
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1.58
|
|
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|
|
|
|
|
|
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Net cash provided by (used in) investing activities
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|
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(63
|
)
|
|
|
|
(75
|
)
|
|
|
|
(181
|
)
|
Net cash provided by (used in) financing activities
|
|
|
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(259
|
)
|
|
|
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(473
|
)
|
|
|
|
18
|
|
Net cash provided by (used in) operating activities
|
|
|
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349
|
|
|
|
|
287
|
|
|
|
|
283
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|
Free cash flow(1)
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|
|
|
285
|
|
|
|
|
217
|
|
|
|
|
193
|
|
______________________________
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(1)
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See "Non-US GAAP Financial Measures" below.
|
(2)
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The company's discussion of adjusted earnings includes use of terms
such as "segment income" and "core income". Those non-GAAP terms are
defined below and reconciled in our Non-US GAAP Financial Measures
and Supplemental Information document below.
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Second Quarter 2016 Highlights:
-
Successfully completed the first ever major turnaround at our POM
facility in Industrial Park Hoechst, Germany, the largest POM facility
in the world. The turnaround was completed on time, safely and
cost-effectively, minimizing the impact on our customers. The success
of this project exemplifies the expertise and dedication of our
talented operations team.
-
Launched 335 new projects through our engineered materials opportunity
pipeline, our best quarterly performance ever. In the first half of
2016 we launched 647 new projects, keeping us on track to deliver
1,200 new project launches in 2016, an increase of 20 percent over the
prior year.
-
Increased annual dividend by 20 percent from $1.20 to $1.44 per share,
reflecting continued strong cash generation, a commitment to
consistently growing our dividend and a high degree of confidence in
our underlying businesses.
-
Received a credit rating upgrade to Investment Grade by both Standard
& Poor's and Moody's Investors Service. Ratings were upgraded to BBB-
and Baa3, respectively.
-
Refinanced our secured credit facility into a new unsecured credit
facility consisting of a $500 million unsecured term loan and a $1
billion unsecured revolver.
"I am pleased to report strong earnings performance in the second
quarter, despite heavy turnaround activity in both the Materials
Solutions and Acetyl Chain cores. Our operations organization safely
executed these planned turnarounds at multiple locations in an extremely
efficient manner, to ensure a high level of reliability for our
customers. We are encouraged by our results, as we continue to deliver
value in a lower global demand environment marked by uncertainty and
weak raw material prices. We generated impressive operating cash flow
and free cash flow driven by year-over-year growth in Materials
Solutions, resilient performance by the Acetyl Chain and disciplined
working capital management. We deployed $200 million of cash in the
quarter to repurchase 2.8 million shares, and we also increased our
dividend by 20 percent to a rate of $1.44 per share on an annual basis.
Our credit rating was upgraded to Investment Grade by Moody's and
Standard & Poor's, validating our strong underlying business performance
and the strength of our balance sheet," said Mark Rohr, chairman and
chief executive officer.
Second Quarter Business Segment Overview
Materials Solutions
The Materials Solutions core grew profitability over the prior year,
overcoming the impact of turnarounds as well as headwinds from tow
pricing and affiliate earnings. In engineered materials (Advanced
Engineered Materials excluding affiliates) we delivered outstanding
results, increasing volumes by 8 percent versus the prior year driven by
our commercial efforts and the strength of our opportunity pipeline. We
had tremendous success in our POM product line, selling record volumes
despite increases in global capacity. Higher volume and lower raw
material costs more than offset a decline in pricing. We successfully
launched a record 335 new projects in the quarter as we continued to
extend our opportunity pipeline with a focus on high-value applications.
Affiliate results in the quarter were impacted mainly by planned
turnarounds and lower prices for MTBE at the Ibn Sina joint venture.
In the tow industry, we continue to see low utilization rates resulting
in lower pricing year-over-year. However, our continued efforts to drive
productivity, as well as lower raw material and energy costs offset the
impact of price declines.
Acetyl Chain
In the Acetyl Chain, we continued to drive differentiated results by
leveraging our global platform and the optionality inherent in our
integrated portfolio. Quarterly results were negatively impacted by
scheduled turnaround activity at various sites during the quarter.
Acetic acid pricing was weaker versus the prior year, principally driven
by China and year-over-year declines in methanol pricing. These
headwinds more than offset the benefits of productivity initiatives.
Cash Flow
The company recorded operating cash flow of $349 million, the second
highest quarterly performance in our history, and we generated record
free cash flow of $285 million. These results were driven by growth in
the Materials Solutions core and disciplined working capital management.
Capital expenditures in the quarter were $58 million. During the
quarter, we returned $254 million to our shareholders, including
$200 million to repurchase 2.8 million shares and $54 million of
dividends.
Outlook
"Our financial results this quarter give us further confidence in the
effectiveness of our strategy and our value creation models in this
constantly evolving macro environment. Materials Solutions offers the
best package of global presence, product portfolio and applications
expertise in the industry, complemented by a rigorous pipeline process.
This enables us to unlock value for customers and in turn drive earnings
growth in this business in a sustainable manner. In the Acetyl Chain,
our leading position as an integrated producer provides us with
unparalleled choices that allow us to be agile in the global
marketplace," said Mark Rohr, chairman and chief executive officer.
"Recent events have added further uncertainty to expectations for
economic growth, and raw materials prices still struggle to recover.
However, based on our business plans, the strength of our commercial
models and our focus on productivity and operational excellence, we
continue to believe that we can deliver adjusted earnings per share
growth in the range of 8-10 percent in 2016," said Rohr.
We are unable to reconcile forecasted adjusted earnings per share growth
to US GAAP diluted earnings per share without unreasonable efforts
because a forecast of Certain Items, such as mark-to-market pension
gains/losses, is not practical. The company's earnings presentation and
prepared remarks related to the second quarter results will be posted on
its website at www.celanese.com
under Investor Relations/Events and Presentations after market close on
July 25, 2016. Information about Non-US GAAP measures is included in a
Non-US GAAP Financial Measures and Supplemental Information document
posted on our website and available at the link below. See "Non-GAAP
Financial Measures" below.
Celanese Corporation is a global technology leader in the production
of differentiated chemistry solutions and specialty materials used in
most major industries and consumer applications. Our two complementary
business cores, Acetyl Chain and Materials Solutions, use the full
breadth of Celanese’s global chemistry, technology and business
expertise to create value for our customers 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 7,000 employees worldwide and had 2015 net sales of $5.7
billion. For more information about Celanese Corporation and its product
offerings, visit www.celanese.com
or our blog at www.celaneseblog.com.
Forward-Looking Statements
This release may contain "forward-looking statements," which include
information concerning the company's plans, objectives, goals,
strategies, future revenues or performance, capital expenditures,
financing needs and other information that is not historical
information. All forward-looking statements are based upon current
expectations and beliefs and various assumptions. There can be no
assurance that the company will realize these expectations or that these
beliefs will prove correct. There are a number of risks and
uncertainties that could cause actual results to differ materially from
the results expressed or implied in the forward-looking statements
contained in this release. These risks and uncertainties include, among
other things: changes in general economic, business, political and
regulatory conditions in the countries or regions in which we operate;
the length and depth of product and industry business cycles,
particularly in the automotive, electrical, textiles, electronics and
construction industries; changes in the price and availability of raw
materials, particularly changes in the demand for, supply of, and market
prices of ethylene, methanol, natural gas, wood pulp and fuel oil and
the prices for electricity and other energy sources; the ability to pass
increases in raw material prices on to customers or otherwise improve
margins through price increases; the ability to maintain plant
utilization rates and to implement planned capacity additions and
expansions; the ability to reduce or maintain their current levels of
production costs and to improve productivity by implementing
technological improvements to existing plants; increased price
competition and the introduction of competing products by other
companies; market acceptance of our technology; the ability to obtain
governmental approvals and to construct facilities on terms and
schedules acceptable to the company; changes in the degree of
intellectual property and other legal protection afforded to our
products or technologies, or the theft of such intellectual property;
compliance and other costs and potential disruption or interruption of
production or operations due to accidents, interruptions in sources of
raw materials, cyber security incidents, terrorism or political unrest
or other unforeseen events or delays in construction or operation of
facilities, including as a result of geopolitical conditions, the
occurrence of acts of war or terrorist incidents or as a result of
weather or natural disasters; potential liability for remedial actions
and increased costs under existing or future environmental regulations,
including those relating to climate change; potential liability
resulting from pending or future litigation, or from changes in the
laws, regulations or policies of governments or other governmental
activities in the countries in which we operate; changes in currency
exchange rates and interest rates; our level of indebtedness, which
could diminish our ability to raise additional capital to fund
operations or limit our ability to react to changes in the economy or
the chemicals industry; and various other factors discussed from time to
time in the company's filings with the Securities and Exchange
Commission. Any forward-looking statement speaks only as of the date on
which it is made, and the company undertakes no obligation to update any
forward-looking statements to reflect events or circumstances after the
date on which it is made or to reflect the occurrence of anticipated or
unanticipated events or circumstances.
Non-GAAP Financial Measures
Presentation
This document presents the Company's business segments in two
subtotals, reflecting our two cores, the Acetyl Chain and Materials
Solutions, based on similarities among customers, business models and
technical processes. As described in the Company's annual report on Form
10-K and quarterly reports on Form 10-Q, the Acetyl Chain includes the
Company's Acetyl Intermediates segment and the Industrial Specialties
segment. Materials Solutions includes the Company's Advanced Engineered
Materials segment and the Consumer Specialties segment. For comparative
purposes, the historical financial information included herein has been
presented to reflect the Acetyl Chain and Materials Solutions subtotals.
There has been no change to the composition of the Company's business
segments.
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 may provide guidance on adjusted EBIT but are unable to reconcile
forecasted adjusted EBIT to a US GAAP financial measure without
unreasonable efforts because a forecast of Certain Items, such as
mark-to-market pension gains and losses, which may be significant, is
not practical. Adjusted EBIT margin is defined by the Company as
adjusted EBIT divided by net sales.
-
Adjusted EBIT by business segment may also be referred to by
management as segment income. Adjusted EBIT by core (i.e. Acetyl Chain
and/or Materials Solutions) may also be referred to by management as
core income. Adjusted EBIT margin by business segment may also be
referred to by management as segment income margin. Adjusted EBIT
margin by core may also be referred to by management as core income
margin.
-
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. 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 may provide guidance on adjusted earnings per
share but are unable to reconcile forecasted adjusted earnings per
share to a US GAAP financial measure without unreasonable efforts
because a forecast of Certain Items, such as mark-to-market pension
gains and losses, which may be significant, is not practical.
Note:
The income tax rate used for adjusted earnings per share approximates
the midpoint in a range of forecasted tax rates for the year. This
range may include certain partial or full-year forecasted tax
opportunities 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 performance 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 July 25, 2016 and also
available on our website at www.celanese.com
under Financial Information, Non-GAAP Financial Measures, or at this
link: http://investors.celanese.com/interactive/lookandfeel/4103411/Non-GAAP.PDF.
Results Unaudited
The results in this document, together with the adjustments made to
present the results on a comparable basis, have not been audited and are
based on internal financial data furnished to management. Quarterly
results should not be taken as an indication of the results of
operations to be reported for any subsequent period or for the full
fiscal year.
Supplemental Information
Additional information about our prior period performance is included
in our Quarterly Reports on Form 10-Q and in our Non-US GAAP Financial
Measures and Supplemental Information document.
|
|
Consolidated Statements of Operations - Unaudited
|
|
|
|
|
Three Months Ended
|
|
|
|
June 30, 2016
|
|
|
March 31, 2016
|
|
|
June 30, 2015
|
|
|
|
(In $ millions, except share and per share data)
|
Net sales
|
|
|
1,351
|
|
|
|
1,404
|
|
|
|
1,477
|
|
Cost of sales
|
|
|
(1,013
|
)
|
|
|
(1,014
|
)
|
|
|
(1,102
|
)
|
Gross profit
|
|
|
338
|
|
|
|
390
|
|
|
|
375
|
|
Selling, general and administrative expenses
|
|
|
(71
|
)
|
|
|
(80
|
)
|
|
|
(106
|
)
|
Amortization of intangible assets
|
|
|
(2
|
)
|
|
|
(2
|
)
|
|
|
(3
|
)
|
Research and development expenses
|
|
|
(19
|
)
|
|
|
(19
|
)
|
|
|
(59
|
)
|
Other (charges) gains, net
|
|
|
(4
|
)
|
|
|
(5
|
)
|
|
|
(10
|
)
|
Foreign exchange gain (loss), net
|
|
|
(1
|
)
|
|
|
3
|
|
|
|
(3
|
)
|
Gain (loss) on disposition of businesses and asset, net
|
|
|
2
|
|
|
|
—
|
|
|
|
(6
|
)
|
Operating profit (loss)
|
|
|
243
|
|
|
|
287
|
|
|
|
188
|
|
Equity in net earnings (loss) of affiliates
|
|
|
35
|
|
|
|
38
|
|
|
|
40
|
|
Interest expense
|
|
|
(30
|
)
|
|
|
(33
|
)
|
|
|
(30
|
)
|
Refinancing expense
|
|
|
—
|
|
|
|
(2
|
)
|
|
|
—
|
|
Interest income
|
|
|
—
|
|
|
|
1
|
|
|
|
1
|
|
Dividend income - cost investments
|
|
|
29
|
|
|
|
27
|
|
|
|
26
|
|
Other income (expense), net
|
|
|
(2
|
)
|
|
|
—
|
|
|
|
2
|
|
Earnings (loss) from continuing operations before tax
|
|
|
275
|
|
|
|
318
|
|
|
|
227
|
|
Income tax (provision) benefit
|
|
|
(52
|
)
|
|
|
(60
|
)
|
|
|
(24
|
)
|
Earnings (loss) from continuing operations
|
|
|
223
|
|
|
|
258
|
|
|
|
203
|
|
Earnings (loss) from operation of discontinued operations
|
|
|
—
|
|
|
|
1
|
|
|
|
(3
|
)
|
Income tax (provision) benefit from discontinued operations
|
|
|
—
|
|
|
|
—
|
|
|
|
1
|
|
Earnings (loss) from discontinued operations
|
|
|
—
|
|
|
|
1
|
|
|
|
(2
|
)
|
Net earnings (loss)
|
|
|
223
|
|
|
|
259
|
|
|
|
201
|
|
Net (earnings) loss attributable to noncontrolling interests
|
|
|
(2
|
)
|
|
|
(2
|
)
|
|
|
4
|
|
Net earnings (loss) attributable to Celanese Corporation
|
|
|
221
|
|
|
|
257
|
|
|
|
205
|
|
Amounts attributable to Celanese Corporation
|
|
|
|
|
|
|
|
|
|
Earnings (loss) from continuing operations
|
|
|
221
|
|
|
|
256
|
|
|
|
207
|
|
Earnings (loss) from discontinued operations
|
|
|
—
|
|
|
|
1
|
|
|
|
(2
|
)
|
Net earnings (loss)
|
|
|
221
|
|
|
|
257
|
|
|
|
205
|
|
Earnings (loss) per common share - basic
|
|
|
|
|
|
|
|
|
|
Continuing operations
|
|
|
1.51
|
|
|
|
1.74
|
|
|
|
1.35
|
|
Discontinued operations
|
|
|
—
|
|
|
|
—
|
|
|
|
(0.01
|
)
|
Net earnings (loss) - basic
|
|
|
1.51
|
|
|
|
1.74
|
|
|
|
1.34
|
|
Earnings (loss) per common share - diluted
|
|
|
|
|
|
|
|
|
|
Continuing operations
|
|
|
1.50
|
|
|
|
1.73
|
|
|
|
1.34
|
|
Discontinued operations
|
|
|
—
|
|
|
|
—
|
|
|
|
(0.01
|
)
|
Net earnings (loss) - diluted
|
|
|
1.50
|
|
|
|
1.73
|
|
|
|
1.33
|
|
Weighted average shares (in millions)
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
146.5
|
|
|
|
147.4
|
|
|
|
153.5
|
|
Diluted
|
|
|
147.1
|
|
|
|
148.1
|
|
|
|
154.0
|
|
|
|
Consolidated Balance Sheets - Unaudited
|
|
|
|
|
As of June 30, 2016
|
|
|
As of December 31, 2015
|
|
|
|
(In $ millions)
|
ASSETS
|
|
|
|
|
|
|
Current Assets
|
|
|
|
|
|
|
Cash and cash equivalents
|
|
|
735
|
|
|
|
967
|
|
Trade receivables - third party and affiliates, net
|
|
|
792
|
|
|
|
706
|
|
Non-trade receivables, net
|
|
|
217
|
|
|
|
285
|
|
Inventories
|
|
|
636
|
|
|
|
682
|
|
Deferred income taxes
|
|
|
—
|
|
|
|
68
|
|
Marketable securities, at fair value
|
|
|
35
|
|
|
|
30
|
|
Other assets
|
|
|
41
|
|
|
|
49
|
|
Total current assets
|
|
|
2,456
|
|
|
|
2,787
|
|
Investments in affiliates
|
|
|
842
|
|
|
|
838
|
|
Property, plant and equipment, net
|
|
|
3,588
|
|
|
|
3,609
|
|
Deferred income taxes
|
|
|
237
|
|
|
|
222
|
|
Other assets
|
|
|
293
|
|
|
|
300
|
|
Goodwill
|
|
|
711
|
|
|
|
705
|
|
Intangible assets, net
|
|
|
121
|
|
|
|
125
|
|
Total assets
|
|
|
8,248
|
|
|
|
8,586
|
|
LIABILITIES AND EQUITY
|
|
|
|
|
|
|
Current Liabilities
|
|
|
|
|
|
|
Short-term borrowings and current installments of long-term debt -
third party and affiliates
|
|
|
119
|
|
|
|
513
|
|
Trade payables - third party and affiliates
|
|
|
551
|
|
|
|
587
|
|
Other liabilities
|
|
|
301
|
|
|
|
330
|
|
Deferred income taxes
|
|
|
—
|
|
|
|
30
|
|
Income taxes payable
|
|
|
116
|
|
|
|
90
|
|
Total current liabilities
|
|
|
1,087
|
|
|
|
1,550
|
|
Long-term debt, net of unamortized deferred financing costs
|
|
|
2,464
|
|
|
|
2,468
|
|
Deferred income taxes
|
|
|
116
|
|
|
|
136
|
|
Uncertain tax positions
|
|
|
154
|
|
|
|
167
|
|
Benefit obligations
|
|
|
1,147
|
|
|
|
1,189
|
|
Other liabilities
|
|
|
229
|
|
|
|
247
|
|
Commitments and Contingencies
|
|
|
|
|
|
|
Stockholders' Equity
|
|
|
|
|
|
|
Preferred stock
|
|
|
—
|
|
|
|
—
|
|
Common stock
|
|
|
—
|
|
|
|
—
|
|
Treasury stock, at cost
|
|
|
(1,231
|
)
|
|
|
(1,031
|
)
|
Additional paid-in capital
|
|
|
133
|
|
|
|
136
|
|
Retained earnings
|
|
|
4,001
|
|
|
|
3,621
|
|
Accumulated other comprehensive income (loss), net
|
|
|
(301
|
)
|
|
|
(348
|
)
|
Total Celanese Corporation stockholders' equity
|
|
|
2,602
|
|
|
|
2,378
|
|
Noncontrolling interests
|
|
|
449
|
|
|
|
451
|
|
Total equity
|
|
|
3,051
|
|
|
|
2,829
|
|
Total liabilities and equity
|
|
|
8,248
|
|
|
|
8,586
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-US GAAP Financial Measures and Supplemental
Information
July 25, 2016
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 business segments in two
subtotals, reflecting our two cores, the Acetyl Chain and Materials
Solutions, based on similarities among customers, business models and
technical processes. As described in the Company's annual report on Form
10-K and quarterly reports on Form 10-Q, the Acetyl Chain includes the
Company's Acetyl Intermediates segment and the Industrial Specialties
segment. Materials Solutions includes the Company's Advanced Engineered
Materials segment and the Consumer Specialties segment. For comparative
purposes, the historical financial information included herein has been
presented to reflect the Acetyl Chain and Materials Solutions subtotals.
There has been no change to the composition of the Company's business
segments.
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 Investor Relations/Financial
Information/SEC Filings page of our website, www.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 Investor Relations/Financial Information/Non-GAAP
Financial Measures page of our website, www.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 may provide guidance on
adjusted EBIT but are unable to reconcile forecasted adjusted EBIT to
a US GAAP financial measure without unreasonable efforts because a
forecast of Certain Items, such as mark-to-market pension gains and
losses, which may be significant, is not practical. 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.
-
Adjusted EBIT by business segment may also be referred to by
management as segment income. Adjusted EBIT by core (i.e. Acetyl Chain
and/or Materials Solutions) may also be referred to by management as
core income. Adjusted EBIT margin by business segment may also be
referred to by management as segment income margin. Adjusted EBIT
margin by core may also be referred to by management as core income
margin.
-
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. 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. We may provide guidance on
adjusted earnings per share but are unable to reconcile forecasted
adjusted earnings per share to a GAAP financial measure without
unreasonable efforts because a forecast of Certain Items, such as
mark-to-market pension gains and losses, which may be significant, is
not practical.
Note: The income tax rate used for
adjusted earnings per share approximates the midpoint in a range of
forecasted tax rates for the year. This range may include certain
partial or full-year forecasted tax opportunities 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 performance 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 performance of 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. In addition, achievement of certain predetermined
targets relating to return on invested capital (adjusted) is one of
the factors we consider in determining the amount of performance-based
compensation received by our management.
Supplemental Information
Supplemental Information we believe to be of interest to investors,
analysts and other parties includes the following:
-
Net sales for Materials Solutions, the Acetyl Chain and each of our
business segments and the percentage increase or decrease in net sales
attributable to price, volume, currency and other factors for
Materials Solutions, the Acetyl Chain and each of our business
segments.
-
Cash dividends received from our equity and cost 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
|
|
|
|
|
Q2 '16
|
|
|
Q1 '16
|
|
|
|
2015
|
|
|
|
|
Q4 '15
|
|
|
Q3 '15
|
|
|
Q2 '15
|
|
|
Q1 '15
|
|
|
|
(In $ millions)
|
Net earnings (loss) attributable to Celanese Corporation
|
|
|
221
|
|
|
257
|
|
|
|
|
304
|
|
|
|
|
(298
|
)
|
|
|
161
|
|
|
205
|
|
|
|
236
|
(Earnings) loss from discontinued operations
|
|
|
—
|
|
|
(1
|
)
|
|
|
|
2
|
|
|
|
|
—
|
|
|
|
—
|
|
|
2
|
|
|
|
—
|
Interest income
|
|
|
—
|
|
|
(1
|
)
|
|
|
|
(1
|
)
|
|
|
|
—
|
|
|
|
—
|
|
|
(1
|
)
|
|
|
—
|
Interest expense
|
|
|
30
|
|
|
33
|
|
|
|
|
119
|
|
|
|
|
33
|
|
|
|
29
|
|
|
30
|
|
|
|
27
|
Refinancing expense
|
|
|
—
|
|
|
2
|
|
|
|
|
—
|
|
|
|
|
—
|
|
|
|
—
|
|
|
—
|
|
|
|
—
|
Income tax provision (benefit)
|
|
|
52
|
|
|
60
|
|
|
|
|
201
|
|
|
|
|
31
|
|
|
|
74
|
|
|
24
|
|
|
|
72
|
Certain Items attributable to Celanese Corporation(1)
|
|
|
9
|
|
|
8
|
|
|
|
|
611
|
|
|
|
|
490
|
|
|
|
41
|
|
|
65
|
|
|
|
15
|
Adjusted EBIT
|
|
|
312
|
|
|
358
|
|
|
|
|
1,236
|
|
|
|
|
256
|
|
|
|
305
|
|
|
325
|
|
|
|
350
|
Depreciation and amortization expense(2)
|
|
|
73
|
|
|
73
|
|
|
|
|
279
|
|
|
|
|
76
|
|
|
|
70
|
|
|
66
|
|
|
|
67
|
Operating EBITDA
|
|
|
385
|
|
|
431
|
|
|
|
|
1,515
|
|
|
|
|
332
|
|
|
|
375
|
|
|
391
|
|
|
|
417
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Q2 '16
|
|
|
Q1 '16
|
|
|
|
2015
|
|
|
|
|
Q4 '15
|
|
|
Q3 '15
|
|
|
Q2 '15
|
|
|
Q1 '15
|
|
|
|
(In $ millions)
|
Advanced Engineered Materials
|
|
|
—
|
|
|
—
|
|
|
|
|
—
|
|
|
|
|
—
|
|
|
|
—
|
|
|
—
|
|
|
|
—
|
Consumer Specialties
|
|
|
—
|
|
|
—
|
|
|
|
|
10
|
|
|
|
|
10
|
|
|
|
—
|
|
|
—
|
|
|
|
—
|
Industrial Specialties
|
|
|
—
|
|
|
—
|
|
|
|
|
28
|
|
|
|
|
18
|
|
|
|
10
|
|
|
—
|
|
|
|
—
|
Acetyl Intermediates
|
|
|
—
|
|
|
—
|
|
|
|
|
40
|
|
|
|
|
1
|
|
|
|
—
|
|
|
39
|
|
|
|
—
|
Other Activities(3)
|
|
|
—
|
|
|
—
|
|
|
|
|
—
|
|
|
|
|
—
|
|
|
|
—
|
|
|
—
|
|
|
|
—
|
Accelerated depreciation and amortization expense
|
|
|
—
|
|
|
—
|
|
|
|
|
78
|
|
|
|
|
29
|
|
|
|
10
|
|
|
39
|
|
|
|
—
|
Depreciation and amortization expense(2)
|
|
|
73
|
|
|
73
|
|
|
|
|
279
|
|
|
|
|
76
|
|
|
|
70
|
|
|
66
|
|
|
|
67
|
Total depreciation and amortization expense
|
|
|
73
|
|
|
73
|
|
|
|
|
357
|
|
|
|
|
105
|
|
|
|
80
|
|
|
105
|
|
|
|
67
|
______________________________
|
(1)
|
|
See Certain Items presentation (Table 8) for details.
|
(2)
|
|
Excludes accelerated depreciation and amortization expense as
detailed in the table above and included in Certain Items above.
|
(3)
|
|
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
|
|
|
|
|
Q2 '16
|
|
|
Q1 '16
|
|
|
|
2015
|
|
|
|
|
Q4 '15
|
|
|
Q3 '15
|
|
|
Q2 '15
|
|
|
Q1 '15
|
|
|
|
(In $ millions, except percentages)
|
Operating Profit (Loss) / Operating Margin
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Materials Solutions
|
|
|
162
|
|
|
27.0
|
%
|
|
|
166
|
|
|
27.9
|
%
|
|
|
|
497
|
|
|
21.7
|
%
|
|
|
|
97
|
|
|
17.4
|
%
|
|
|
135
|
|
|
23.6
|
%
|
|
|
144
|
|
|
24.2
|
%
|
|
|
121
|
|
|
21.2
|
%
|
Acetyl Chain(1)
|
|
|
107
|
|
|
13.7
|
%
|
|
|
145
|
|
|
17.3
|
%
|
|
|
|
69
|
|
|
2.0
|
%
|
|
|
|
(246
|
)
|
|
(30.3
|
)%
|
|
|
73
|
|
|
8.4
|
%
|
|
|
82
|
|
|
9.0
|
%
|
|
|
160
|
|
|
17.6
|
%
|
Other Activities(2)
|
|
|
(26
|
)
|
|
|
|
|
(24
|
)
|
|
|
|
|
|
(240
|
)
|
|
|
|
|
|
(156
|
)
|
|
|
|
|
(22
|
)
|
|
|
|
|
(38
|
)
|
|
|
|
|
(24
|
)
|
|
|
Total
|
|
|
243
|
|
|
18.0
|
%
|
|
|
287
|
|
|
20.4
|
%
|
|
|
|
326
|
|
|
5.7
|
%
|
|
|
|
(305
|
)
|
|
(22.9
|
)%
|
|
|
186
|
|
|
13.2
|
%
|
|
|
188
|
|
|
12.7
|
%
|
|
|
257
|
|
|
17.7
|
%
|
Less: Net Earnings (Loss) Attributable to NCI(1)
|
|
|
2
|
|
|
|
|
|
2
|
|
|
|
|
|
|
(19
|
)
|
|
|
|
|
|
(3
|
)
|
|
|
|
|
(10
|
)
|
|
|
|
|
(4
|
)
|
|
|
|
|
(2
|
)
|
|
|
Operating Profit (Loss) Attributable to Celanese Corporation
|
|
|
241
|
|
|
17.8
|
%
|
|
|
285
|
|
|
20.3
|
%
|
|
|
|
345
|
|
|
6.1
|
%
|
|
|
|
(302
|
)
|
|
(22.6
|
)%
|
|
|
196
|
|
|
13.9
|
%
|
|
|
192
|
|
|
13.0
|
%
|
|
|
259
|
|
|
17.9
|
%
|
Operating Profit (Loss) / Operating Margin Attributable to
Celanese Corporation
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Advanced Engineered Materials
|
|
|
82
|
|
|
22.5
|
%
|
|
|
88
|
|
|
25.1
|
%
|
|
|
|
235
|
|
|
17.7
|
%
|
|
|
|
51
|
|
|
16.4
|
%
|
|
|
58
|
|
|
17.8
|
%
|
|
|
67
|
|
|
19.4
|
%
|
|
|
59
|
|
|
17.2
|
%
|
Consumer Specialties
|
|
|
80
|
|
|
34.0
|
%
|
|
|
78
|
|
|
32.0
|
%
|
|
|
|
262
|
|
|
27.0
|
%
|
|
|
|
46
|
|
|
18.7
|
%
|
|
|
77
|
|
|
31.2
|
%
|
|
|
77
|
|
|
30.9
|
%
|
|
|
62
|
|
|
27.3
|
%
|
Total Materials Solutions
|
|
|
162
|
|
|
27.0
|
%
|
|
|
166
|
|
|
27.9
|
%
|
|
|
|
497
|
|
|
21.7
|
%
|
|
|
|
97
|
|
|
17.4
|
%
|
|
|
135
|
|
|
23.6
|
%
|
|
|
144
|
|
|
24.2
|
%
|
|
|
121
|
|
|
21.2
|
%
|
Industrial Specialties
|
|
|
29
|
|
|
11.1
|
%
|
|
|
31
|
|
|
12.3
|
%
|
|
|
|
72
|
|
|
6.7
|
%
|
|
|
|
(4
|
)
|
|
(1.7
|
)%
|
|
|
19
|
|
|
6.9
|
%
|
|
|
28
|
|
|
9.8
|
%
|
|
|
29
|
|
|
10.3
|
%
|
Acetyl Intermediates(1)
|
|
|
75
|
|
|
12.7
|
%
|
|
|
112
|
|
|
16.9
|
%
|
|
|
|
16
|
|
|
0.6
|
%
|
|
|
|
(239
|
)
|
|
(37.1
|
)%
|
|
|
64
|
|
|
9.4
|
%
|
|
|
58
|
|
|
8.2
|
%
|
|
|
133
|
|
|
18.7
|
%
|
Eliminations
|
|
|
1
|
|
|
|
|
|
—
|
|
|
|
|
|
|
—
|
|
|
|
|
|
|
—
|
|
|
|
|
|
—
|
|
|
|
|
|
—
|
|
|
|
|
|
—
|
|
|
|
Total Acetyl Chain
|
|
|
105
|
|
|
13.5
|
%
|
|
|
143
|
|
|
17.0
|
%
|
|
|
|
88
|
|
|
2.5
|
%
|
|
|
|
(243
|
)
|
|
(29.9
|
)%
|
|
|
83
|
|
|
9.5
|
%
|
|
|
86
|
|
|
9.4
|
%
|
|
|
162
|
|
|
17.8
|
%
|
Other Activities(2)
|
|
|
(26
|
)
|
|
|
|
|
(24
|
)
|
|
|
|
|
|
(240
|
)
|
|
|
|
|
|
(156
|
)
|
|
|
|
|
(22
|
)
|
|
|
|
|
(38
|
)
|
|
|
|
|
(24
|
)
|
|
|
Total
|
|
|
241
|
|
|
17.8
|
%
|
|
|
285
|
|
|
20.3
|
%
|
|
|
|
345
|
|
|
6.1
|
%
|
|
|
|
(302
|
)
|
|
(22.6
|
)%
|
|
|
196
|
|
|
13.9
|
%
|
|
|
192
|
|
|
13.0
|
%
|
|
|
259
|
|
|
17.9
|
%
|
Equity Earnings, Cost-Dividend Income, Other Income (Expense)
Attributable to Celanese Corporation
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Advanced Engineered Materials
|
|
|
27
|
|
|
|
|
|
31
|
|
|
|
|
|
|
151
|
|
|
|
|
|
|
33
|
|
|
|
|
|
44
|
|
|
|
|
|
31
|
|
|
|
|
|
43
|
|
|
|
Consumer Specialties
|
|
|
28
|
|
|
|
|
|
28
|
|
|
|
|
|
|
108
|
|
|
|
|
|
|
27
|
|
|
|
|
|
26
|
|
|
|
|
|
27
|
|
|
|
|
|
28
|
|
|
|
Total Materials Solutions
|
|
|
55
|
|
|
|
|
|
59
|
|
|
|
|
|
|
259
|
|
|
|
|
|
|
60
|
|
|
|
|
|
70
|
|
|
|
|
|
58
|
|
|
|
|
|
71
|
|
|
|
Industrial Specialties
|
|
|
—
|
|
|
|
|
|
—
|
|
|
|
|
|
|
—
|
|
|
|
|
|
|
—
|
|
|
|
|
|
—
|
|
|
|
|
|
—
|
|
|
|
|
|
—
|
|
|
|
Acetyl Intermediates
|
|
|
2
|
|
|
|
|
|
2
|
|
|
|
|
|
|
7
|
|
|
|
|
|
|
3
|
|
|
|
|
|
2
|
|
|
|
|
|
1
|
|
|
|
|
|
1
|
|
|
|
Total Acetyl Chain
|
|
|
2
|
|
|
|
|
|
2
|
|
|
|
|
|
|
7
|
|
|
|
|
|
|
3
|
|
|
|
|
|
2
|
|
|
|
|
|
1
|
|
|
|
|
|
1
|
|
|
|
Other Activities(2)
|
|
|
5
|
|
|
|
|
|
4
|
|
|
|
|
|
|
14
|
|
|
|
|
|
|
5
|
|
|
|
|
|
(4
|
)
|
|
|
|
|
9
|
|
|
|
|
|
4
|
|
|
|
Total
|
|
|
62
|
|
|
|
|
|
65
|
|
|
|
|
|
|
280
|
|
|
|
|
|
|
68
|
|
|
|
|
|
68
|
|
|
|
|
|
68
|
|
|
|
|
|
76
|
|
|
|
Certain Items Attributable to Celanese Corporation(3)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Advanced Engineered Materials
|
|
|
2
|
|
|
|
|
|
1
|
|
|
|
|
|
|
11
|
|
|
|
|
|
|
1
|
|
|
|
|
|
4
|
|
|
|
|
|
4
|
|
|
|
|
|
2
|
|
|
|
Consumer Specialties
|
|
|
—
|
|
|
|
|
|
—
|
|
|
|
|
|
|
41
|
|
|
|
|
|
|
36
|
|
|
|
|
|
2
|
|
|
|
|
|
1
|
|
|
|
|
|
2
|
|
|
|
Total Materials Solutions
|
|
|
2
|
|
|
|
|
|
1
|
|
|
|
|
|
|
52
|
|
|
|
|
|
|
37
|
|
|
|
|
|
6
|
|
|
|
|
|
5
|
|
|
|
|
|
4
|
|
|
|
Industrial Specialties
|
|
|
1
|
|
|
|
|
|
2
|
|
|
|
|
|
|
38
|
|
|
|
|
|
|
26
|
|
|
|
|
|
9
|
|
|
|
|
|
2
|
|
|
|
|
|
1
|
|
|
|
Acetyl Intermediates
|
|
|
3
|
|
|
|
|
|
1
|
|
|
|
|
|
|
365
|
|
|
|
|
|
|
296
|
|
|
|
|
|
18
|
|
|
|
|
|
48
|
|
|
|
|
|
3
|
|
|
|
Total Acetyl Chain
|
|
|
4
|
|
|
|
|
|
3
|
|
|
|
|
|
|
403
|
|
|
|
|
|
|
322
|
|
|
|
|
|
27
|
|
|
|
|
|
50
|
|
|
|
|
|
4
|
|
|
|
Other Activities(2)
|
|
|
3
|
|
|
|
|
|
4
|
|
|
|
|
|
|
156
|
|
|
|
|
|
|
131
|
|
|
|
|
|
8
|
|
|
|
|
|
10
|
|
|
|
|
|
7
|
|
|
|
Total
|
|
|
9
|
|
|
|
|
|
8
|
|
|
|
|
|
|
611
|
|
|
|
|
|
|
490
|
|
|
|
|
|
41
|
|
|
|
|
|
65
|
|
|
|
|
|
15
|
|
|
|
Adjusted EBIT / Adjusted EBIT Margin
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Advanced Engineered Materials
|
|
|
111
|
|
|
30.4
|
%
|
|
|
120
|
|
|
34.3
|
%
|
|
|
|
397
|
|
|
29.9
|
%
|
|
|
|
85
|
|
|
27.3
|
%
|
|
|
106
|
|
|
32.5
|
%
|
|
|
102
|
|
|
29.5
|
%
|
|
|
104
|
|
|
30.3
|
%
|
Consumer Specialties
|
|
|
108
|
|
|
46.0
|
%
|
|
|
106
|
|
|
43.4
|
%
|
|
|
|
411
|
|
|
42.4
|
%
|
|
|
|
109
|
|
|
44.3
|
%
|
|
|
105
|
|
|
42.5
|
%
|
|
|
105
|
|
|
42.2
|
%
|
|
|
92
|
|
|
40.5
|
%
|
Total Materials Solutions
|
|
|
219
|
|
|
36.5
|
%
|
|
|
226
|
|
|
38.0
|
%
|
|
|
|
808
|
|
|
35.2
|
%
|
|
|
|
194
|
|
|
34.8
|
%
|
|
|
211
|
|
|
36.8
|
%
|
|
|
207
|
|
|
34.8
|
%
|
|
|
196
|
|
|
34.4
|
%
|
Industrial Specialties
|
|
|
30
|
|
|
11.5
|
%
|
|
|
33
|
|
|
13.0
|
%
|
|
|
|
110
|
|
|
10.2
|
%
|
|
|
|
22
|
|
|
9.2
|
%
|
|
|
28
|
|
|
10.2
|
%
|
|
|
30
|
|
|
10.5
|
%
|
|
|
30
|
|
|
10.6
|
%
|
Acetyl Intermediates
|
|
|
80
|
|
|
13.5
|
%
|
|
|
115
|
|
|
17.3
|
%
|
|
|
|
388
|
|
|
14.1
|
%
|
|
|
|
60
|
|
|
9.3
|
%
|
|
|
84
|
|
|
12.4
|
%
|
|
|
107
|
|
|
15.1
|
%
|
|
|
137
|
|
|
19.2
|
%
|
Eliminations
|
|
|
1
|
|
|
|
|
|
—
|
|
|
|
|
|
|
—
|
|
|
|
|
|
|
—
|
|
|
|
|
|
—
|
|
|
|
|
|
—
|
|
|
|
|
|
—
|
|
|
|
Total Acetyl Chain
|
|
|
111
|
|
|
14.2
|
%
|
|
|
148
|
|
|
17.6
|
%
|
|
|
|
498
|
|
|
14.2
|
%
|
|
|
|
82
|
|
|
10.1
|
%
|
|
|
112
|
|
|
12.8
|
%
|
|
|
137
|
|
|
15.0
|
%
|
|
|
167
|
|
|
18.4
|
%
|
Other Activities(2)
|
|
|
(18
|
)
|
|
|
|
|
(16
|
)
|
|
|
|
|
|
(70
|
)
|
|
|
|
|
|
(20
|
)
|
|
|
|
|
(18
|
)
|
|
|
|
|
(19
|
)
|
|
|
|
|
(13
|
)
|
|
|
Total
|
|
|
312
|
|
|
23.1
|
%
|
|
|
358
|
|
|
25.5
|
%
|
|
|
|
1,236
|
|
|
21.8
|
%
|
|
|
|
256
|
|
|
19.2
|
%
|
|
|
305
|
|
|
21.6
|
%
|
|
|
325
|
|
|
22.0
|
%
|
|
|
350
|
|
|
24.1
|
%
|
___________________________
|
(1)
|
|
Net earnings (loss) attributable to NCI is included within the
Acetyl Intermediates segment.
|
(2)
|
|
Other Activities includes corporate SG&A expenses, the results of
captive insurance companies and certain components of net periodic
benefit cost (interest cost, expected return on plan assets and net
actuarial gains and losses).
|
(3)
|
|
See Certain Items presentation (Table 8) for details.
|
|
|
Table 2 - Supplemental Segment Data and Reconciliation of
Segment Adjusted EBIT and Operating EBITDA - Non-GAAP Measures -
Unaudited (cont.)
|
|
|
|
|
Q2 '16
|
|
|
Q1 '16
|
|
|
|
2015
|
|
|
|
|
Q4 '15
|
|
|
Q3 '15
|
|
|
Q2 '15
|
|
|
Q1 '15
|
|
|
|
(In $ millions, except percentages)
|
Depreciation and Amortization Expense(1)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Advanced Engineered Materials
|
|
|
25
|
|
|
|
|
|
24
|
|
|
|
|
|
|
99
|
|
|
|
|
|
|
24
|
|
|
|
|
|
26
|
|
|
|
|
|
24
|
|
|
|
|
|
25
|
|
|
|
Consumer Specialties
|
|
|
11
|
|
|
|
|
|
11
|
|
|
|
|
|
|
50
|
|
|
|
|
|
|
12
|
|
|
|
|
|
15
|
|
|
|
|
|
12
|
|
|
|
|
|
11
|
|
|
|
Total Materials Solutions
|
|
|
36
|
|
|
|
|
|
35
|
|
|
|
|
|
|
149
|
|
|
|
|
|
|
36
|
|
|
|
|
|
41
|
|
|
|
|
|
36
|
|
|
|
|
|
36
|
|
|
|
Industrial Specialties
|
|
|
8
|
|
|
|
|
|
8
|
|
|
|
|
|
|
36
|
|
|
|
|
|
|
7
|
|
|
|
|
|
10
|
|
|
|
|
|
9
|
|
|
|
|
|
10
|
|
|
|
Acetyl Intermediates
|
|
|
27
|
|
|
|
|
|
27
|
|
|
|
|
|
|
83
|
|
|
|
|
|
|
29
|
|
|
|
|
|
17
|
|
|
|
|
|
18
|
|
|
|
|
|
19
|
|
|
|
Total Acetyl Chain
|
|
|
35
|
|
|
|
|
|
35
|
|
|
|
|
|
|
119
|
|
|
|
|
|
|
36
|
|
|
|
|
|
27
|
|
|
|
|
|
27
|
|
|
|
|
|
29
|
|
|
|
Other Activities(2)
|
|
|
2
|
|
|
|
|
|
3
|
|
|
|
|
|
|
11
|
|
|
|
|
|
|
4
|
|
|
|
|
|
2
|
|
|
|
|
|
3
|
|
|
|
|
|
2
|
|
|
|
Total
|
|
|
73
|
|
|
|
|
|
73
|
|
|
|
|
|
|
279
|
|
|
|
|
|
|
76
|
|
|
|
|
|
70
|
|
|
|
|
|
66
|
|
|
|
|
|
67
|
|
|
|
Operating EBITDA / Operating EBITDA Margin
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Advanced Engineered Materials
|
|
|
136
|
|
|
37.3
|
%
|
|
|
144
|
|
|
41.1
|
%
|
|
|
|
496
|
|
|
37.4
|
%
|
|
|
|
109
|
|
|
35.0
|
%
|
|
|
132
|
|
|
40.5
|
%
|
|
|
126
|
|
|
36.4
|
%
|
|
|
129
|
|
|
37.6
|
%
|
Consumer Specialties
|
|
|
119
|
|
|
50.6
|
%
|
|
|
117
|
|
|
48.0
|
%
|
|
|
|
461
|
|
|
47.6
|
%
|
|
|
|
121
|
|
|
49.2
|
%
|
|
|
120
|
|
|
48.6
|
%
|
|
|
117
|
|
|
47.0
|
%
|
|
|
103
|
|
|
45.4
|
%
|
Total Materials Solutions
|
|
|
255
|
|
|
42.5
|
%
|
|
|
261
|
|
|
43.9
|
%
|
|
|
|
957
|
|
|
41.7
|
%
|
|
|
|
230
|
|
|
41.3
|
%
|
|
|
252
|
|
|
44.0
|
%
|
|
|
243
|
|
|
40.8
|
%
|
|
|
232
|
|
|
40.7
|
%
|
Industrial Specialties
|
|
|
38
|
|
|
14.5
|
%
|
|
|
41
|
|
|
16.2
|
%
|
|
|
|
146
|
|
|
13.5
|
%
|
|
|
|
29
|
|
|
12.1
|
%
|
|
|
38
|
|
|
13.9
|
%
|
|
|
39
|
|
|
13.6
|
%
|
|
|
40
|
|
|
14.2
|
%
|
Acetyl Intermediates
|
|
|
107
|
|
|
18.1
|
%
|
|
|
142
|
|
|
21.4
|
%
|
|
|
|
471
|
|
|
17.2
|
%
|
|
|
|
89
|
|
|
13.8
|
%
|
|
|
101
|
|
|
14.9
|
%
|
|
|
125
|
|
|
17.7
|
%
|
|
|
156
|
|
|
21.9
|
%
|
Eliminations
|
|
|
1
|
|
|
|
|
|
—
|
|
|
|
|
|
|
—
|
|
|
|
|
|
|
—
|
|
|
|
|
|
—
|
|
|
|
|
|
—
|
|
|
|
|
|
—
|
|
|
|
Total Acetyl Chain
|
|
|
146
|
|
|
18.7
|
%
|
|
|
183
|
|
|
21.8
|
%
|
|
|
|
617
|
|
|
17.6
|
%
|
|
|
|
118
|
|
|
14.5
|
%
|
|
|
139
|
|
|
15.9
|
%
|
|
|
164
|
|
|
18.0
|
%
|
|
|
196
|
|
|
21.6
|
%
|
Other Activities(2)
|
|
|
(16
|
)
|
|
|
|
|
(13
|
)
|
|
|
|
|
|
(59
|
)
|
|
|
|
|
|
(16
|
)
|
|
|
|
|
(16
|
)
|
|
|
|
|
(16
|
)
|
|
|
|
|
(11
|
)
|
|
|
Total
|
|
|
385
|
|
|
28.5
|
%
|
|
|
431
|
|
|
30.7
|
%
|
|
|
|
1,515
|
|
|
26.7
|
%
|
|
|
|
332
|
|
|
24.9
|
%
|
|
|
375
|
|
|
26.5
|
%
|
|
|
391
|
|
|
26.5
|
%
|
|
|
417
|
|
|
28.8
|
%
|
___________________________
|
(1)
|
|
Excludes accelerated depreciation and amortization expense 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
|
|
|
|
|
Q2 '16
|
|
|
Q1 '16
|
|
|
2015
|
|
|
Q4 '15
|
|
|
Q3 '15
|
|
|
Q2 '15
|
|
|
Q1 '15
|
|
|
|
|
|
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
|
|
|
221
|
|
|
1.50
|
|
|
256
|
|
|
1.73
|
|
|
306
|
|
|
2.01
|
|
|
(298
|
)
|
|
(2.03
|
)
|
|
|
161
|
|
|
1.07
|
|
|
207
|
|
|
1.34
|
|
|
236
|
|
|
1.53
|
Income tax provision (benefit)
|
|
|
52
|
|
|
|
|
|
60
|
|
|
|
|
|
201
|
|
|
|
|
|
31
|
|
|
|
|
|
74
|
|
|
|
|
|
24
|
|
|
|
|
|
72
|
|
|
|
Earnings (loss) from continuing operations before tax
|
|
|
273
|
|
|
|
|
|
316
|
|
|
|
|
|
507
|
|
|
|
|
|
(267
|
)
|
|
|
|
|
235
|
|
|
|
|
|
231
|
|
|
|
|
|
308
|
|
|
|
Certain Items attributable to Celanese Corporation(1)
|
|
|
9
|
|
|
|
|
|
8
|
|
|
|
|
|
611
|
|
|
|
|
|
490
|
|
|
|
|
|
41
|
|
|
|
|
|
65
|
|
|
|
|
|
15
|
|
|
|
Refinancing and related expenses
|
|
|
—
|
|
|
|
|
|
2
|
|
|
|
|
|
—
|
|
|
|
|
|
—
|
|
|
|
|
|
—
|
|
|
|
|
|
—
|
|
|
|
|
|
—
|
|
|
|
Adjusted earnings (loss) from continuing operations before tax
|
|
|
282
|
|
|
|
|
|
326
|
|
|
|
|
|
1,118
|
|
|
|
|
|
223
|
|
|
|
|
|
276
|
|
|
|
|
|
296
|
|
|
|
|
|
323
|
|
|
|
Income tax (provision) benefit on adjusted earnings(2)
|
|
|
(48
|
)
|
|
|
|
|
(55
|
)
|
|
|
|
|
(201
|
)
|
|
|
|
|
(40
|
)
|
|
|
|
|
(50
|
)
|
|
|
|
|
(53
|
)
|
|
|
|
|
(58
|
)
|
|
|
Adjusted earnings (loss) from continuing operations(3)
|
|
|
234
|
|
|
1.59
|
|
|
271
|
|
|
1.83
|
|
|
917
|
|
|
6.02
|
|
|
183
|
|
|
1.25
|
|
|
|
226
|
|
|
1.50
|
|
|
243
|
|
|
1.58
|
|
|
265
|
|
|
1.72
|
|
|
|
|
|
|
|
Diluted shares (in millions)(4)
|
Weighted average shares outstanding
|
|
|
146.5
|
|
|
|
|
|
147.4
|
|
|
|
|
|
150.8
|
|
|
|
|
|
146.9
|
|
|
|
|
|
149.8
|
|
|
|
|
|
153.5
|
|
|
|
|
|
153.2
|
|
|
|
Incremental shares attributable to equity awards
|
|
|
0.6
|
|
|
|
|
|
0.7
|
|
|
|
|
|
1.5
|
|
|
|
|
|
—
|
|
|
|
|
|
1.2
|
|
|
|
|
|
0.5
|
|
|
|
|
|
0.7
|
|
|
|
Total diluted shares
|
|
|
147.1
|
|
|
|
|
|
148.1
|
|
|
|
|
|
152.3
|
|
|
|
|
|
146.9
|
|
|
|
|
|
151.0
|
|
|
|
|
|
154.0
|
|
|
|
|
|
153.9
|
|
|
|
______________________________
|
(1) See Certain Items presentation (Table 8) for
details.
|
(2) Calculated using adjusted effective tax rates as
follows:
|
|
|
|
Q2 '16
|
|
|
Q1 '16
|
|
|
2015
|
|
|
Q4 '15
|
|
|
Q3 '15
|
|
|
Q2 '15
|
|
|
Q1 '15
|
|
|
|
(In percentages)
|
Adjusted effective tax rate
|
|
|
17
|
|
|
|
|
|
17
|
|
|
|
|
|
18
|
|
|
|
|
|
18
|
|
|
|
|
|
18
|
|
|
|
|
|
18
|
|
|
|
|
|
18
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(3) Excludes the immediate recognition of actuarial
gains and losses and the impact of actual vs. expected plan asset
returns.
|
|
|
|
Actual Plan Asset Returns
|
|
|
Expected Plan Asset Returns
|
Q4 '15 & 2015
|
|
|
(2.5
|
)%
|
|
|
7.8
|
%
|
(4)
|
|
Potentially dilutive shares are included in the adjusted earnings
per share calculation when adjusted earnings are positive.
|
|
|
Table 3a
|
Adjusted Tax Rate - Reconciliation of a Non-GAAP Measure -
Unaudited
|
|
|
|
|
Estimated
|
|
|
Actual
|
|
|
|
2016
|
|
|
2015
|
|
|
|
(In percentages)
|
US GAAP effective tax rate
|
|
|
18
|
|
|
|
41
|
|
Discrete quarterly recognition of GAAP items(1)
|
|
|
—
|
|
|
|
2
|
|
Tax impact of other charges and adjustments
|
|
|
—
|
|
|
|
(15
|
)
|
Utilization of foreign tax credits
|
|
|
—
|
|
|
|
(2
|
)
|
Changes in valuation allowances, excluding impact of other charges
and adjustments
|
|
|
(2
|
)
|
|
|
(5
|
)
|
Other(2)
|
|
|
1
|
|
|
|
(3
|
)
|
Adjusted tax rate
|
|
|
17
|
|
|
|
18
|
|
______________________________
|
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, deferred taxes on outside basis
differences, changes in uncertain tax positions and prior year audit
adjustments.
|
(2)
|
|
Tax impacts related to full-year forecasted tax opportunities and
related costs.
|
|
|
Table 4
|
Net Sales by Segment - Unaudited
|
|
|
|
|
Q2 '16
|
|
|
Q1 '16
|
|
|
2015
|
|
|
Q4 '15
|
|
|
Q3 '15
|
|
|
Q2 '15
|
|
|
Q1 '15
|
|
|
|
(In $ millions)
|
Advanced Engineered Materials
|
|
|
365
|
|
|
|
350
|
|
|
|
1,326
|
|
|
|
311
|
|
|
|
326
|
|
|
|
346
|
|
|
|
343
|
|
Consumer Specialties
|
|
|
235
|
|
|
|
244
|
|
|
|
969
|
|
|
|
246
|
|
|
|
247
|
|
|
|
249
|
|
|
|
227
|
|
Total Materials Solutions
|
|
|
600
|
|
|
|
594
|
|
|
|
2,295
|
|
|
|
557
|
|
|
|
573
|
|
|
|
595
|
|
|
|
570
|
|
Industrial Specialties
|
|
|
262
|
|
|
|
253
|
|
|
|
1,082
|
|
|
|
239
|
|
|
|
274
|
|
|
|
287
|
|
|
|
282
|
|
Acetyl Intermediates
|
|
|
592
|
|
|
|
663
|
|
|
|
2,744
|
|
|
|
644
|
|
|
|
680
|
|
|
|
707
|
|
|
|
713
|
|
Eliminations(1)
|
|
|
(74
|
)
|
|
|
(76
|
)
|
|
|
(323
|
)
|
|
|
(71
|
)
|
|
|
(82
|
)
|
|
|
(83
|
)
|
|
|
(87
|
)
|
Total Acetyl Chain
|
|
|
780
|
|
|
|
840
|
|
|
|
3,503
|
|
|
|
812
|
|
|
|
872
|
|
|
|
911
|
|
|
|
908
|
|
Other Activities(2)
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
Intersegment eliminations(1)
|
|
|
(29
|
)
|
|
|
(30
|
)
|
|
|
(124
|
)
|
|
|
(35
|
)
|
|
|
(32
|
)
|
|
|
(29
|
)
|
|
|
(28
|
)
|
Net sales
|
|
|
1,351
|
|
|
|
1,404
|
|
|
|
5,674
|
|
|
|
1,334
|
|
|
|
1,413
|
|
|
|
1,477
|
|
|
|
1,450
|
|
___________________________
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Includes intersegment sales as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Q2 '16
|
|
|
Q1 '16
|
|
|
2015
|
|
|
Q4 '15
|
|
|
Q3 '15
|
|
|
Q2 '15
|
|
|
Q1 '15
|
|
|
|
(In $ millions)
|
Industrial Specialties
|
|
|
(1
|
)
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
Acetyl Intermediates
|
|
|
(102
|
)
|
|
|
(106
|
)
|
|
|
(447
|
)
|
|
|
(106
|
)
|
|
|
(114
|
)
|
|
|
(112
|
)
|
|
|
(115
|
)
|
Intersegment eliminations
|
|
|
(103
|
)
|
|
|
(106
|
)
|
|
|
(447
|
)
|
|
|
(106
|
)
|
|
|
(114
|
)
|
|
|
(112
|
)
|
|
|
(115
|
)
|
(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 4a
|
Factors Affecting Segment Net Sales Sequentially - Unaudited
|
|
Three Months Ended June 30, 2016 Compared to Three Months Ended
March 31, 2016
|
|
|
|
|
Volume
|
|
|
Price
|
|
|
Currency
|
|
|
Other
|
|
|
Total
|
|
|
|
(In percentages)
|
Advanced Engineered Materials
|
|
|
6
|
|
|
|
(2
|
)
|
|
|
1
|
|
|
—
|
|
|
5
|
|
Consumer Specialties
|
|
|
(3
|
)
|
|
|
(1
|
)
|
|
|
—
|
|
|
—
|
|
|
(4
|
)
|
Total Materials Solutions
|
|
|
2
|
|
|
|
(2
|
)
|
|
|
1
|
|
|
—
|
|
|
1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Industrial Specialties
|
|
|
4
|
|
|
|
(1
|
)
|
|
|
1
|
|
|
—
|
|
|
4
|
|
Acetyl Intermediates
|
|
|
(11
|
)
|
|
|
—
|
|
|
|
—
|
|
|
—
|
|
|
(11
|
)
|
Total Acetyl Chain
|
|
|
(7
|
)
|
|
|
(1
|
)
|
|
|
1
|
|
|
—
|
|
|
(7
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Company
|
|
|
(4
|
)
|
|
|
(1
|
)
|
|
|
1
|
|
|
—
|
|
|
(4
|
)
|
|
|
Three Months Ended March 31, 2016 Compared to Three Months
Ended December 31, 2015
|
|
|
|
|
Volume
|
|
|
Price
|
|
|
Currency
|
|
|
Other
|
|
|
Total
|
|
|
|
(In percentages)
|
Advanced Engineered Materials
|
|
|
12
|
|
|
—
|
|
|
|
—
|
|
|
—
|
|
|
|
12
|
|
Consumer Specialties
|
|
|
6
|
|
|
(7
|
)
|
|
|
—
|
|
|
—
|
|
|
|
(1
|
)
|
Total Materials Solutions
|
|
|
10
|
|
|
(3
|
)
|
|
|
—
|
|
|
—
|
|
|
|
7
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Industrial Specialties
|
|
|
9
|
|
|
(3
|
)
|
|
|
—
|
|
|
—
|
|
|
|
6
|
|
Acetyl Intermediates
|
|
|
7
|
|
|
(4
|
)
|
|
|
—
|
|
|
—
|
|
|
|
3
|
|
Total Acetyl Chain
|
|
|
8
|
|
|
(4
|
)
|
|
|
—
|
|
|
(1
|
)
|
|
|
3
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Company
|
|
|
9
|
|
|
(4
|
)
|
|
|
—
|
|
|
—
|
|
|
|
5
|
|
|
|
Three Months Ended December 31, 2015 Compared to Three Months
Ended September 30, 2015
|
|
|
|
|
Volume
|
|
|
Price
|
|
|
Currency
|
|
|
Other
|
|
|
Total
|
|
|
|
(In percentages)
|
Advanced Engineered Materials
|
|
|
(3
|
)
|
|
|
—
|
|
|
|
(1
|
)
|
|
|
—
|
|
|
(4
|
)
|
Consumer Specialties
|
|
|
(1
|
)
|
|
|
1
|
|
|
|
—
|
|
|
|
—
|
|
|
—
|
|
Total Materials Solutions
|
|
|
(3
|
)
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
(3
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Industrial Specialties
|
|
|
(7
|
)
|
|
|
(5
|
)
|
|
|
(1
|
)
|
|
|
—
|
|
|
(13
|
)
|
Acetyl Intermediates
|
|
|
1
|
|
|
|
(7
|
)
|
|
|
(1
|
)
|
|
|
2
|
|
|
(5
|
)
|
Total Acetyl Chain
|
|
|
(2
|
)
|
|
|
(7
|
)
|
|
|
(1
|
)
|
|
|
3
|
|
|
(7
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Company
|
|
|
(1
|
)
|
|
|
(4
|
)
|
|
|
(1
|
)
|
|
|
—
|
|
|
(6
|
)
|
|
|
Three Months Ended September 30, 2015 Compared to Three Months
Ended June 30, 2015
|
|
|
|
|
Volume
|
|
|
Price
|
|
|
Currency
|
|
|
Other
|
|
|
Total
|
|
|
|
(In percentages)
|
Advanced Engineered Materials
|
|
|
(5
|
)
|
|
|
(1
|
)
|
|
|
—
|
|
|
—
|
|
|
(6
|
)
|
Consumer Specialties
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Total Materials Solutions
|
|
|
(3
|
)
|
|
|
(1
|
)
|
|
|
—
|
|
|
—
|
|
|
(4
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Industrial Specialties
|
|
|
(5
|
)
|
|
|
1
|
|
|
|
—
|
|
|
—
|
|
|
(4
|
)
|
Acetyl Intermediates
|
|
|
(1
|
)
|
|
|
(3
|
)
|
|
|
—
|
|
|
—
|
|
|
(4
|
)
|
Total Acetyl Chain
|
|
|
(2
|
)
|
|
|
(2
|
)
|
|
|
—
|
|
|
—
|
|
|
(4
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Company
|
|
|
(3
|
)
|
|
|
(1
|
)
|
|
|
—
|
|
|
—
|
|
|
(4
|
)
|
|
|
Three Months Ended June 30, 2015 Compared to Three Months Ended
March 31, 2015
|
|
|
|
|
Volume
|
|
|
Price
|
|
|
Currency
|
|
|
Other
|
|
|
Total
|
|
|
|
(In percentages)
|
Advanced Engineered Materials
|
|
|
2
|
|
|
|
—
|
|
|
|
(1
|
)
|
|
|
—
|
|
|
1
|
|
Consumer Specialties
|
|
|
11
|
|
|
|
(1
|
)
|
|
|
—
|
|
|
|
—
|
|
|
10
|
|
Total Materials Solutions
|
|
|
6
|
|
|
|
(1
|
)
|
|
|
(1
|
)
|
|
|
—
|
|
|
4
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Industrial Specialties
|
|
|
6
|
|
|
|
(4
|
)
|
|
|
(1
|
)
|
|
|
—
|
|
|
1
|
|
Acetyl Intermediates
|
|
|
(1
|
)
|
|
|
1
|
|
|
|
(1
|
)
|
|
|
—
|
|
|
(1
|
)
|
Total Acetyl Chain
|
|
|
2
|
|
|
|
(1
|
)
|
|
|
(1
|
)
|
|
|
—
|
|
|
—
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Company
|
|
|
3
|
|
|
|
(1
|
)
|
|
|
(1
|
)
|
|
|
1
|
|
|
2
|
|
|
|
Three Months Ended March 31, 2015 Compared to Three Months
Ended December 31, 2014
|
|
|
|
|
Volume
|
|
|
Price
|
|
|
Currency
|
|
|
Other
|
|
|
Total
|
|
|
|
(In percentages)
|
Advanced Engineered Materials
|
|
|
6
|
|
|
|
2
|
|
|
|
(4
|
)
|
|
|
—
|
|
|
4
|
|
Consumer Specialties
|
|
|
(16
|
)
|
|
|
(2
|
)
|
|
|
—
|
|
|
|
—
|
|
|
(18
|
)
|
Total Materials Solutions
|
|
|
(4
|
)
|
|
|
—
|
|
|
|
(3
|
)
|
|
|
—
|
|
|
(7
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Industrial Specialties
|
|
|
16
|
|
|
|
(4
|
)
|
|
|
(5
|
)
|
|
|
—
|
|
|
7
|
|
Acetyl Intermediates
|
|
|
1
|
|
|
|
(11
|
)
|
|
|
(3
|
)
|
|
|
—
|
|
|
(13
|
)
|
Total Acetyl Chain
|
|
|
5
|
|
|
|
(10
|
)
|
|
|
(4
|
)
|
|
|
1
|
|
|
(8
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Company
|
|
|
2
|
|
|
|
(6
|
)
|
|
|
(4
|
)
|
|
|
1
|
|
|
(7
|
)
|
|
|
Table 4b
|
Factors Affecting Segment Net Sales Year Over Year - Unaudited
|
|
Three Months Ended June 30, 2016 Compared to Three Months Ended
June 30, 2015
|
|
|
|
|
Volume
|
|
|
Price
|
|
|
Currency
|
|
|
Other
|
|
|
Total
|
|
|
|
(In percentages)
|
Advanced Engineered Materials
|
|
|
8
|
|
|
|
(4
|
)
|
|
|
1
|
|
|
—
|
|
|
5
|
|
Consumer Specialties
|
|
|
2
|
|
|
|
(8
|
)
|
|
|
—
|
|
|
—
|
|
|
(6
|
)
|
Total Materials Solutions
|
|
|
5
|
|
|
|
(5
|
)
|
|
|
1
|
|
|
—
|
|
|
1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Industrial Specialties
|
|
|
(1
|
)
|
|
|
(8
|
)
|
|
|
—
|
|
|
—
|
|
|
(9
|
)
|
Acetyl Intermediates
|
|
|
(5
|
)
|
|
|
(13
|
)
|
|
|
—
|
|
|
2
|
|
|
(16
|
)
|
Total Acetyl Chain
|
|
|
(4
|
)
|
|
|
(12
|
)
|
|
|
—
|
|
|
2
|
|
|
(14
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Company
|
|
|
—
|
|
|
|
(10
|
)
|
|
|
—
|
|
|
1
|
|
|
(9
|
)
|
|
|
Three Months Ended March 31, 2016 Compared to Three Months
Ended March 31, 2015
|
|
|
|
|
Volume
|
|
|
Price
|
|
|
Currency
|
|
|
Other
|
|
|
Total
|
|
|
|
(In percentages)
|
Advanced Engineered Materials
|
|
|
5
|
|
|
(2
|
)
|
|
|
(1
|
)
|
|
|
—
|
|
|
2
|
|
Consumer Specialties
|
|
|
17
|
|
|
(9
|
)
|
|
|
—
|
|
|
|
—
|
|
|
8
|
|
Total Materials Solutions
|
|
|
9
|
|
|
(5
|
)
|
|
|
—
|
|
|
|
—
|
|
|
4
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Industrial Specialties
|
|
|
—
|
|
|
(9
|
)
|
|
|
(1
|
)
|
|
|
—
|
|
|
(10
|
)
|
Acetyl Intermediates
|
|
|
6
|
|
|
(13
|
)
|
|
|
(2
|
)
|
|
|
2
|
|
|
(7
|
)
|
Total Acetyl Chain
|
|
|
5
|
|
|
(13
|
)
|
|
|
(2
|
)
|
|
|
1
|
|
|
(9
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Company
|
|
|
7
|
|
|
(10
|
)
|
|
|
(2
|
)
|
|
|
1
|
|
|
(4
|
)
|
|
|
Three Months Ended December 31, 2015 Compared to Three Months
Ended December 31, 2014
|
|
|
|
|
Volume
|
|
|
Price
|
|
|
Currency
|
|
|
Other
|
|
|
Total
|
|
|
|
(In percentages)
|
Advanced Engineered Materials
|
|
|
(2
|
)
|
|
|
1
|
|
|
|
(5
|
)
|
|
|
—
|
|
|
(6
|
)
|
Consumer Specialties
|
|
|
(8
|
)
|
|
|
(3
|
)
|
|
|
(1
|
)
|
|
|
—
|
|
|
(12
|
)
|
Total Materials Solutions
|
|
|
(5
|
)
|
|
|
(1
|
)
|
|
|
(3
|
)
|
|
|
—
|
|
|
(9
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Industrial Specialties
|
|
|
8
|
|
|
|
(12
|
)
|
|
|
(6
|
)
|
|
|
—
|
|
|
(10
|
)
|
Acetyl Intermediates
|
|
|
—
|
|
|
|
(17
|
)
|
|
|
(5
|
)
|
|
|
1
|
|
|
(21
|
)
|
Total Acetyl Chain
|
|
|
2
|
|
|
|
(17
|
)
|
|
|
(5
|
)
|
|
|
3
|
|
|
(17
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Company
|
|
|
(1
|
)
|
|
|
(11
|
)
|
|
|
(5
|
)
|
|
|
2
|
|
|
(15
|
)
|
|
|
Three Months Ended September 30, 2015 Compared to Three Months
Ended September 30, 2014
|
|
|
|
|
Volume
|
|
|
Price
|
|
|
Currency
|
|
|
Other
|
|
|
Total
|
|
|
|
(In percentages)
|
Advanced Engineered Materials
|
|
|
(3
|
)
|
|
|
(1
|
)
|
|
|
(7
|
)
|
|
|
—
|
|
|
(11
|
)
|
Consumer Specialties
|
|
|
(10
|
)
|
|
|
(4
|
)
|
|
|
(1
|
)
|
|
|
—
|
|
|
(15
|
)
|
Total Materials Solutions
|
|
|
(7
|
)
|
|
|
(2
|
)
|
|
|
(4
|
)
|
|
|
—
|
|
|
(13
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Industrial Specialties
|
|
|
—
|
|
|
|
(5
|
)
|
|
|
(8
|
)
|
|
|
—
|
|
|
(13
|
)
|
Acetyl Intermediates
|
|
|
(6
|
)
|
|
|
(15
|
)
|
|
|
(6
|
)
|
|
|
—
|
|
|
(27
|
)
|
Total Acetyl Chain
|
|
|
(5
|
)
|
|
|
(14
|
)
|
|
|
(7
|
)
|
|
|
2
|
|
|
(24
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Company
|
|
|
(5
|
)
|
|
|
(10
|
)
|
|
|
(6
|
)
|
|
|
1
|
|
|
(20
|
)
|
|
|
Three Months Ended June 30, 2015 Compared to Three Months Ended
June 30, 2014
|
|
|
|
|
Volume
|
|
|
Price
|
|
|
Currency
|
|
|
Other
|
|
|
Total
|
|
|
|
(In percentages)
|
Advanced Engineered Materials
|
|
|
(1
|
)
|
|
|
(1
|
)
|
|
|
(9
|
)
|
|
|
—
|
|
|
(11
|
)
|
Consumer Specialties
|
|
|
(10
|
)
|
|
|
(3
|
)
|
|
|
(1
|
)
|
|
|
—
|
|
|
(14
|
)
|
Total Materials Solutions
|
|
|
(5
|
)
|
|
|
(2
|
)
|
|
|
(5
|
)
|
|
|
—
|
|
|
(12
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Industrial Specialties
|
|
|
(1
|
)
|
|
|
(4
|
)
|
|
|
(9
|
)
|
|
|
—
|
|
|
(14
|
)
|
Acetyl Intermediates
|
|
|
(4
|
)
|
|
|
(10
|
)
|
|
|
(8
|
)
|
|
|
—
|
|
|
(22
|
)
|
Total Acetyl Chain
|
|
|
(3
|
)
|
|
|
(10
|
)
|
|
|
(9
|
)
|
|
|
3
|
|
|
(19
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Company
|
|
|
(4
|
)
|
|
|
(7
|
)
|
|
|
(8
|
)
|
|
|
2
|
|
|
(17
|
)
|
|
|
Three Months Ended March 31, 2015 Compared to Three Months
Ended March 31, 2014
|
|
|
|
|
Volume
|
|
|
Price
|
|
|
Currency
|
|
|
Other
|
|
|
Total
|
|
|
|
(In percentages)
|
Advanced Engineered Materials
|
|
|
—
|
|
|
|
—
|
|
|
|
(8
|
)
|
|
|
—
|
|
|
(8
|
)
|
Consumer Specialties
|
|
|
(21
|
)
|
|
|
(3
|
)
|
|
|
(1
|
)
|
|
|
—
|
|
|
(25
|
)
|
Total Materials Solutions
|
|
|
(9
|
)
|
|
|
(2
|
)
|
|
|
(5
|
)
|
|
|
—
|
|
|
(16
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Industrial Specialties
|
|
|
(4
|
)
|
|
|
3
|
|
|
|
(9
|
)
|
|
|
—
|
|
|
(10
|
)
|
Acetyl Intermediates
|
|
|
(2
|
)
|
|
|
(7
|
)
|
|
|
(6
|
)
|
|
|
—
|
|
|
(15
|
)
|
Total Acetyl Chain
|
|
|
(3
|
)
|
|
|
(5
|
)
|
|
|
(7
|
)
|
|
|
1
|
|
|
(14
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Company
|
|
|
(6
|
)
|
|
|
(3
|
)
|
|
|
(7
|
)
|
|
|
1
|
|
|
(15
|
)
|
|
|
Table 4c
|
Factors Affecting Segment Net Sales Year Over Year - Unaudited
|
|
Year Ended December 31, 2015 Compared to Year Ended December 31,
2014
|
|
|
|
|
Volume
|
|
|
Price
|
|
|
Currency
|
|
|
Other
|
|
|
Total
|
|
|
|
(In percentages)
|
Advanced Engineered Materials
|
|
|
(1
|
)
|
|
|
(1
|
)
|
|
|
(7
|
)
|
|
|
—
|
|
|
(9
|
)
|
Consumer Specialties
|
|
|
(13
|
)
|
|
|
(3
|
)
|
|
|
(1
|
)
|
|
|
—
|
|
|
(17
|
)
|
Total Materials Solutions
|
|
|
(6
|
)
|
|
|
(2
|
)
|
|
|
(4
|
)
|
|
|
—
|
|
|
(12
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Industrial Specialties
|
|
|
—
|
|
|
|
(4
|
)
|
|
|
(8
|
)
|
|
|
—
|
|
|
(12
|
)
|
Acetyl Intermediates
|
|
|
(3
|
)
|
|
|
(13
|
)
|
|
|
(6
|
)
|
|
|
—
|
|
|
(22
|
)
|
Total Acetyl Chain
|
|
|
(3
|
)
|
|
|
(11
|
)
|
|
|
(7
|
)
|
|
|
2
|
|
|
(19
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Company
|
|
|
(4
|
)
|
|
|
(8
|
)
|
|
|
(6
|
)
|
|
|
1
|
|
|
(17
|
)
|
|
|
Table 5
|
Free Cash Flow - Reconciliation of a Non-GAAP Measure - Unaudited
|
|
|
|
|
Q2 '16
|
|
|
Q1 '16
|
|
|
2015
|
|
|
Q4 '15
|
|
|
Q3 '15
|
|
|
Q2 '15
|
|
|
Q1 '15
|
|
|
|
(In $ millions)
|
Net cash provided by (used in) investing activities
|
|
|
(63
|
)
|
|
|
(75
|
)
|
|
|
(558
|
)
|
|
|
(97
|
)
|
|
|
(107
|
)
|
|
|
(181
|
)
|
|
|
(173
|
)
|
Net cash provided by (used in) financing activities
|
|
|
(259
|
)
|
|
|
(473
|
)
|
|
|
(66
|
)
|
|
|
(2
|
)
|
|
|
(99
|
)
|
|
|
18
|
|
|
|
17
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net cash provided by (used in) operating activities
|
|
|
349
|
|
|
|
287
|
|
|
|
862
|
|
|
|
136
|
|
|
|
173
|
|
|
|
283
|
|
|
|
270
|
|
Capital expenditures on property, plant and equipment
|
|
|
(58
|
)
|
|
|
(70
|
)
|
|
|
(520
|
)
|
|
|
(89
|
)
|
|
|
(104
|
)
|
|
|
(165
|
)
|
|
|
(162
|
)
|
Capital (distributions to) contributions from NCI
|
|
|
(6
|
)
|
|
|
—
|
|
|
|
214
|
|
|
|
27
|
|
|
|
32
|
|
|
|
75
|
|
|
|
80
|
|
Free cash flow(1)(2)
|
|
|
285
|
|
|
|
217
|
|
|
|
556
|
|
|
|
74
|
|
|
|
101
|
|
|
|
193
|
|
|
|
188
|
|
______________________________
|
(1)
|
|
Free cash flow is a performance measure used by the Company and is
defined by the Company as net cash provided by (used in) operating
activities, less capital expenditures on property, plant and
equipment, and adjusted for capital contributions from or
distributions to Mitsui & Co., Ltd. ("Mitsui) related to our joint
venture, Fairway Methanol LLC ("Fairway").
|
(2)
|
|
Excludes required debt service and capital lease payments of $56
million and $25 million for the years ending December 31, 2016 and
2015, respectively.
|
|
|
Table 6
|
Cash Dividends Received - Unaudited
|
|
|
|
|
Q2 '16
|
|
|
Q1 '16
|
|
|
2015
|
|
|
Q4 '15
|
|
|
Q3 '15
|
|
|
Q2 '15
|
|
|
Q1 '15
|
|
|
|
(In $ millions)
|
Dividends from equity method investments
|
|
|
73
|
|
|
37
|
|
|
176
|
|
|
54
|
|
|
5
|
|
|
29
|
|
|
88
|
Dividends from cost method investments
|
|
|
29
|
|
|
27
|
|
|
107
|
|
|
27
|
|
|
26
|
|
|
26
|
|
|
28
|
Total
|
|
|
102
|
|
|
64
|
|
|
283
|
|
|
81
|
|
|
31
|
|
|
55
|
|
|
116
|
|
|
Table 7
|
Net Debt - Reconciliation of a Non-GAAP Measure - Unaudited
|
|
|
|
|
Q2 '16
|
|
|
Q1 '16
|
|
|
2015
|
|
|
Q4 '15
|
|
|
Q3 '15
|
|
|
Q2 '15
|
|
|
Q1 '15
|
|
|
|
(In $ millions)
|
Short-term borrowings and current installments of long-term debt -
third party and affiliates
|
|
|
119
|
|
|
|
116
|
|
|
|
513
|
|
|
|
513
|
|
|
|
463
|
|
|
|
123
|
|
|
|
128
|
|
Long-term debt, net of unamortized deferred financing costs
|
|
|
2,464
|
|
|
|
2,487
|
|
|
|
2,468
|
|
|
|
2,468
|
|
|
|
2,522
|
|
|
|
2,532
|
|
|
|
2,515
|
|
Total debt
|
|
|
2,583
|
|
|
|
2,603
|
|
|
|
2,981
|
|
|
|
2,981
|
|
|
|
2,985
|
|
|
|
2,655
|
|
|
|
2,643
|
|
Cash and cash equivalents
|
|
|
(735
|
)
|
|
|
(716
|
)
|
|
|
(967
|
)
|
|
|
(967
|
)
|
|
|
(952
|
)
|
|
|
(988
|
)
|
|
|
(851
|
)
|
Net debt
|
|
|
1,848
|
|
|
|
1,887
|
|
|
|
2,014
|
|
|
|
2,014
|
|
|
|
2,033
|
|
|
|
1,667
|
|
|
|
1,792
|
|
|
|
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:
|
|
|
|
|
Q2 '16
|
|
|
Q1 '16
|
|
|
2015
|
|
|
Q4 '15
|
|
|
Q3 '15
|
|
|
Q2 '15
|
|
|
Q1 '15
|
|
|
Income Statement Classification
|
|
|
|
(In $ millions)
|
|
|
|
Employee termination benefits(1)
|
|
|
3
|
|
|
5
|
|
|
53
|
|
|
33
|
|
|
|
6
|
|
|
10
|
|
|
4
|
|
|
Other charges (gains), net
|
Plant/office closures
|
|
|
—
|
|
|
1
|
|
|
48
|
|
|
31
|
|
|
|
13
|
|
|
1
|
|
|
3
|
|
|
Other charges (gains), net / Cost of sales / SG&A
|
Singapore contract termination
|
|
|
—
|
|
|
—
|
|
|
174
|
|
|
174
|
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
Other charges (gains), net
|
Business optimization
|
|
|
1
|
|
|
2
|
|
|
20
|
|
|
4
|
|
|
|
6
|
|
|
5
|
|
|
5
|
|
|
Cost of sales / SG&A
|
Asset impairments
|
|
|
1
|
|
|
—
|
|
|
126
|
|
|
125
|
|
|
|
1
|
|
|
—
|
|
|
—
|
|
|
Other charges (gains), net
|
(Gain) loss on disposition of business and assets, net
|
|
|
—
|
|
|
—
|
|
|
4
|
|
|
(1
|
)
|
|
|
—
|
|
|
5
|
|
|
—
|
|
|
(Gain) loss on disposition, net
|
Commercial disputes(2)
|
|
|
—
|
|
|
—
|
|
|
6
|
|
|
—
|
|
|
|
5
|
|
|
—
|
|
|
1
|
|
|
Cost of sales / Other charges (gains), net
|
Write-off of other productive assets
|
|
|
2
|
|
|
—
|
|
|
39
|
|
|
—
|
|
|
|
—
|
|
|
39
|
|
|
—
|
|
|
Cost of sales / R&D
|
Employee benefit plan changes
|
|
|
1
|
|
|
—
|
|
|
4
|
|
|
(1
|
)
|
|
|
2
|
|
|
1
|
|
|
2
|
|
|
Cost of sales / SG&A / R&D
|
Actuarial (gain) loss on pension and postretirement plans
|
|
|
—
|
|
|
—
|
|
|
127
|
|
|
126
|
|
|
|
—
|
|
|
1
|
|
|
—
|
|
|
Cost of sales / SG&A / R&D
|
Start-up costs(3)
|
|
|
1
|
|
|
—
|
|
|
10
|
|
|
(1
|
)
|
|
|
8
|
|
|
3
|
|
|
—
|
|
|
Cost of sales
|
Certain Items attributable to Celanese Corporation
|
|
|
9
|
|
|
8
|
|
|
611
|
|
|
490
|
|
|
|
41
|
|
|
65
|
|
|
15
|
|
|
|
______________________________
|
(1)
|
|
Primarily associated with site shutdown costs.
|
(2)
|
|
Primarily associated with litigation settlement costs.
|
(3)
|
|
Primarily associated with Fairway joint venture operational start-up
costs.
|
|
|
Table 9
|
Return on Invested Capital (Adjusted) - Presentation of a
Non-GAAP Measure - Unaudited
|
|
|
|
|
|
|
|
|
|
|
2015
|
|
|
|
|
|
|
|
|
|
(In $ millions, except percentages)
|
Net earnings (loss) attributable to Celanese Corporation
|
|
|
|
|
|
|
|
|
304
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted EBIT(1)
|
|
|
|
|
|
|
|
|
1,236
|
|
Adjusted effective tax rate(2)
|
|
|
|
|
|
|
|
|
18
|
%
|
Adjusted EBIT tax effected
|
|
|
|
|
|
|
|
|
1,014
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2015
|
|
|
2014
|
|
|
Average
|
|
|
|
(In $ millions, except percentages)
|
Short-term borrowings and current installments of long-term debt -
third parties and affiliates
|
|
|
513
|
|
|
137
|
|
|
325
|
|
Long-term debt, net of unamortized deferred financing costs
|
|
|
2,468
|
|
|
2,586
|
|
|
2,527
|
|
Celanese Corporation stockholders' equity
|
|
|
2,378
|
|
|
2,818
|
|
|
2,598
|
|
Invested capital
|
|
|
|
|
|
|
|
|
5,450
|
|
|
|
|
|
|
|
|
|
|
|
Return on invested capital (adjusted)
|
|
|
|
|
|
|
|
|
18.6
|
%
|
|
|
|
|
|
|
|
|
|
|
Net earnings (loss) attributable to Celanese Corporation as a
percentage of invested capital
|
|
|
|
|
|
|
|
|
5.6
|
%
|
______________________________
|
(1)
|
|
See Table 1 for details.
|
(2)
|
|
See Table 3a for details.
|
View source version on businesswire.com: http://www.businesswire.com/news/home/20160725006305/en/ Copyright Business Wire 2016
Source: Business Wire
(July 25, 2016 - 4:45 PM EDT)
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