Celanese Corporation Reports Unaudited Consolidated Earnings Results for the Fourth Quarter and Full Year Ended December 31, 2017; Provides Earnings Guidance for the Full Year of Fiscal 2018
January 25, 2018 at 10:34 pm
Share
Celanese Corporation reported unaudited consolidated earnings results for the fourth quarter and full year ended December 31, 2017. For the quarter, the company reported net sales of $1,593 million compared to $1,311 million a year ago. Operating profit was $217 million compared to $117 million a year ago. Earnings from continuing operations before tax was $265 million compared to $156 million a year ago. Earnings from continuing operations were $205 million compared to $161 million a year ago. Net earnings attributable to company were $203 million compared to $160 million a year ago. Earnings from continuing operations were $1.50 per diluted share compared to $1.12 per diluted share a year ago. Net earnings were $204 million compared to $161 million a year ago. Net earnings were $1.49 per diluted share compared to $1.12 per diluted share a year ago. Adjusted EBIT was $352 million compared to $289 million a year ago. Operating EBITDA was $431 million compared to $360 million a year ago. Net cash provided by operating activities was $58 million compared to net cash used in operating activities of $47 million a year ago. Free cash flow was negative $38 million compared to negative $116 million a year ago. Adjusted earnings of $1.98 per share compared to $1.52 per share a year ago. Adjusted earnings from continuing operations before tax was $321 million compared to $261 million a year ago. Adjusted earnings from continuing operations were $270 million compared to $217 million a year ago. Adjusted effective tax rate was 16% compared to 17% a year ago.
For the year, the company reported net sales of $6,140 million compared to $5,389 million a year ago. Operating profit was $901 million compared to $893 million a year ago. Earnings from continuing operations before tax was $1,075 million compared to $1,030 million a year ago. Earnings from continuing operations were $862 million compared to $908 million a year ago. Net earnings were $849 million compared to $906 million a year ago. Net earnings attributable to company were $843 million compared to $900 million a year ago. Earnings from continuing operations were $856 million compared to $902 million a year ago. Earnings from continuing operations were $6.19 per diluted share compared to $6.19 per diluted share a year ago. Net earnings were $6.09 per diluted share compared to $6.18 per diluted share a year ago. Adjusted EBIT was $1,356 million compared to $1,278 million a year ago. Operating EBITDA was $1,659 million compared to $1,566 million a year ago. Net cash provided by operating activities was $803 million compared $893 million a year ago. Free cash flow was $509 million compared to negative $623 million a year ago. Adjusted earnings of $7.51 per share compared to $6.61 per share a year ago. Adjusted earnings from continuing operations before tax was $1,236 million compared to $1,160 million a year ago. Adjusted earnings from continuing operations were $1,038 million compared to $963 million a year ago. Adjusted effective tax rate was 16% compared to 17% a year ago.
For the year 2018 the company expects earnings should be relatively flat. An early read on the recent tax reform indicates a 2% lower adjusted tax rate of 14% for Celanese in 2018. Taking all these drivers into consideration, current estimations for 2018 put growth of adjusted earnings per share in the 10%-14% range, with more of the growth in the first half of the year.
Celanese Corporation specializes in the manufacture and marketing of chemicals and specialty materials. The products are intended for the production of automotive components, beverages and food products, cigarette filters, paints and coatings, packaging, textiles, etc. Net sales by category of products break down as follows:
- acetyl products (55.7%);
- high performance engineering polymers (44.3%).
Net sales are distributed geographically as follows: the United States (25.8%), Germany (22.6%), China (17.8%), Singapore (10.5%), Belgium (4.6%), Mexico (3.3%), Japan (2.9%), Switzerland (2%), India (1.4%), South Korea (1.4%), Brazil (1.3%), Canada (1.3%), France ( 0.8%), the United Kingdom (0.8%), Italy (0.7%), Spain (0.5%), and other (2.3%).
Celanese Corporation Reports Unaudited Consolidated Earnings Results for the Fourth Quarter and Full Year Ended December 31, 2017; Provides Earnings Guidance for the Full Year of Fiscal 2018