EX-99.1 2 q42011ce-ex991.htm EX-99.1 Q4 2011 CE-EX99.1


Exhibit 99.1

 
Celanese Corporation
 
Investor Relations
 
1601 West LBJ Freeway
Corporate News Release
Dallas, Texas 75234

Celanese Corporation Reports Fourth Quarter and Record Full Year 2011 Results;
Expects Continued Earnings Growth in 2012

Fourth quarter highlights:
Net sales were $1,614 million, up 7% from prior year period
Operating profit was $97 million versus $140 million in prior year period
Net earnings were $95 million versus $58 million in prior year period
Diluted EPS from continuing operations was $0.61 versus $0.65 in prior year period
Operating EBITDA was $243 million versus $262 million in prior year period
Adjusted EPS was $0.58 versus $0.73 in prior year period

Full year 2011 highlights:
Net sales were $6,763 million, up 14% from prior year period
Operating profit was $690 million versus $503 million in prior year period
Net earnings were $607 million versus $377 million in prior year period
Diluted EPS from continuing operations was $3.81 versus $2.69 in prior year period
Operating EBITDA was $1,362 million versus $1,122 million in prior year period
Adjusted EPS was $4.47 versus $3.37 in prior year period
 
Three Months Ended
December 31,
 
Year Ended December 31,
(in $ millions, except per share data) - Unaudited
2011
 
2010
 
2011
 
2010
Net sales
1,614

 
1,507

 
6,763

 
5,918

Operating profit (loss)
97

 
140

 
690

 
503

Net earnings (loss) attributable to Celanese Corporation
95

 
58

 
607

 
377

Operating EBITDA 1
243

 
262

 
1,362

 
1,122

Diluted EPS - continuing operations
$
0.61

 
$
0.65

 
$
3.81

 
$
2.69

Diluted EPS - total
$
0.60

 
$
0.36

 
$
3.82

 
$
2.38

Adjusted EPS 2
$
0.58

 
$
0.73

 
$
4.47

 
$
3.37

1 Non-U.S. GAAP measure. See reconciliation in Table 1.
2 Non-U.S. GAAP measure. See reconciliation in Table 6.

Dallas, January 31, 2012: Celanese Corporation (NYSE: CE), a global technology and specialty materials company, today reported fourth quarter 2011 net sales of $1,614 million, a 7 percent increase from the prior year period, primarily due to higher

1



pricing across all operating segments. The higher pricing was driven by the recovery of higher raw material costs. Operating profit was $97 million compared with $140 million in the same period last year. This quarter's results reflected weakened fourth quarter economic conditions, particularly in Europe, which resulted in lower than expected customer demand in the period. This led to a sharp inventory destocking in the company's Acetyl Intermediates segment, as well as a modest impact to volumes in its Advanced Engineered Materials segment. Net earnings were $95 million compared with $58 million in the same period last year. Diluted earnings per share from continuing operations were $0.61 compared with $0.65 in the prior year period.

Adjusted earnings per share in the fourth quarter of 2011 were $0.58 compared with $0.73 in the prior year period. The tax rate and diluted share count for adjusted earnings per share in the current period were 17 percent and 158.9 million, respectively. Operating EBITDA in the current period was $243 million compared with $262 million in the fourth quarter of 2010. Adjusted earnings per share and operating EBITDA in both periods excluded other charges and other adjustments of $19 million and $14 million, respectively.

"Celanese delivered a record annual performance in 2011 as the earnings power of our leading global businesses helped to mitigate the impact of weakened economic conditions near the end of the fourth quarter, particularly in Europe," said David Weidman, chairman and chief executive officer. "Near term uncertainty translated into more cautious buying behavior at the end of the quarter resulting in temporarily lower fourth quarter volumes and lower earnings than we previously expected. However, we remain confident in the fundamentals of our business model which will continue to drive earnings growth and shareholder value."
Recent Highlights
Completed the acquisition of certain assets from Ashland Inc., including two product lines, Vinac® and Flexbond®, which will support the strategic growth of the Celanese Emulsions business.
Endorsed Congressman Pete Olson's Domestic Alternative Fuels Act of 2012 which was introduced on January 17, 2012. If enacted, the bill would allow ethanol produced from domestic hydrocarbons other than petroleum, such as ethanol produced from Celanese's proprietary TCX® ethanol process technology, to satisfy the Renewable Fuels Standard (RFS) requirement to use conventional biofuel (corn-based ethanol) to reduce the quantity of petroleum used in transportation fuel.

Fourth Quarter Segment Overview

Advanced Engineered Materials
Advanced Engineered Materials increased revenue and operating EBITDA with its continued focus on successful innovation efforts amid a challenging economic environment, particularly in Europe. Net sales in the fourth quarter of 2011 were $292 million compared with $274 million in the same period last year, driven by higher pricing and revenue associated with the product lines acquired in 2010. The higher pricing and additional revenue offset lower volumes due to temporarily softer end-market demand as customers throughout its supply chain stringently managed year-end inventories and production. Operating profit in the fourth quarter of 2011 was a loss of $3 million compared with a profit of $35 million in the prior year period. Increased net sales offset higher raw material costs in the period. The prior year period's results included a $16 million gain,

2



reflected in other charges and other adjustments, primarily related to the reduction of legal reserves. The fourth quarter 2011 results included $8 million of other charges and other adjustments primarily related to the relocation and expansion of the Kelsterbach facility to Frankfurt Hoechst Industrial Park. Additionally, depreciation in the current period was $13 million higher than the prior year period, primarily related to the new facility. Operating EBITDA, which excluded other charges and other adjustments, was $73 million compared with $68 million in the prior year period. Equity earnings from the company's affiliates totaled $36 million, $6 million higher than the prior year period, primarily driven by higher earnings in its Ibn Sina venture.

Consumer Specialties
Consumer Specialties delivered solid results as global demand increased for their products but could not completely offset higher energy and raw material costs. Net sales in the fourth quarter of 2011 were $306 million compared with $281 million in the same period last year, primarily driven by higher pricing and volumes in the company's Acetate Products business. Operating profit was $59 million, unchanged from the prior year period, as the higher pricing and volumes were offset by higher raw material and energy costs. Fourth quarter 2010 results included $13 million of other charges and other adjustments due to accelerated depreciation and other related costs primarily associated with the company's previously announced closure of its acetate manufacturing operations in Spondon, Derby, United Kingdom. Fourth quarter 2011 results included $5 million of other charges and other adjustments. Operating EBITDA, which excluded other charges and other adjustments, was $73 million compared with $80 million in the same period last year.

Industrial Specialties
Industrial Specialties delivered increased revenue and earnings as it benefited from its innovative applications and geographic growth in North America and Asia, which helped to offset softer European demand. Net sales in the fourth quarter of 2011 were $272 million compared with $249 million in the same period last year, primarily driven by higher pricing as the company successfully introduced innovative applications in nontraditional sectors and recovered rising raw material costs. Operating profit in the current period was $17 million compared with $11 million in the same period last year. Operating EBITDA increased to $30 million from $27 million in the same period last year.

Acetyl Intermediates
Acetyl Intermediates was impacted by European economic uncertainty that resulted in lower end-market demand in Europe during the latter part of the fourth quarter and led to a sharp inventory destocking across the industry's supply chain. Despite this, net sales in the fourth quarter of 2011 increased to $849 million from $799 million in the prior year period, driven by higher year-over-year pricing primarily in downstream derivatives due to raw material recovery, offsetting modestly lower volumes. Operating profit in the current period was $67 million compared with $94 million in the same period last year. Rapid destocking across the acetyl chain due to decreased demand temporarily lowered industry utilization rates and compressed margins as higher pricing was more than offset by higher raw material costs and lower volumes. Operating EBITDA was $95 million compared with $127 million in the same period last year. The destocking impact from FIFO inventory accounting and other inventory-related items negatively impacted operating EBITDA by approximately $15 million in the fourth quarter of 2011.




3



Taxes
The tax rate for adjusted earnings per share was 17 percent for the year ended December 31, 2011, compared with 20 percent for the year ended December 31, 2010. The U.S. GAAP effective tax rate for continuing operations in 2011 was 20 percent compared with 21 percent in 2010. The effective tax rate for 2011 was favorably impacted by increased foreign tax credit benefits realized in the United States and changes in assessments regarding valuation allowances on certain deferred tax assets, partially offset by foreign losses not providing tax benefits. The effective rate for 2010 was favorably impacted by amendments to tax legislation in Mexico. Cash taxes paid were $94 million in 2011 compared with $135 million in 2010. The decrease in cash taxes paid is primarily the result of the timing of cash payments and favorable tax incentives in certain jurisdictions.

Strategic Affiliates
Total earnings from equity investments and dividends from cost investments, which are reflected in the company's earnings and operating EBITDA, were $46 million in the fourth quarter of 2011, $9 million higher than the prior year period's results. Equity and cost investment dividends, which are included in cash flows, were $40 million, a $22 million increase from the prior year period.

Earnings in equity investments for Ticona's strategic affiliates in Asia in the fourth quarter of 2011 were $1 million compared with $13 million in the same period last year, primarily due to the planned turnaround at one of the company's Asian affiliates. Proportional affiliate EBITDA in excess of equity net earnings for the Asian affiliates was $13 million compared with $17 million in the prior year period. Ticona's strategic affiliates in the Middle East, which include its Ibn Sina affiliate, increased equity in net earnings to $35 million from $17 million in the prior year period, primarily driven by increased pricing for methanol and methyl tertiary-butyl ether (MTBE). Proportional affiliate EBITDA in excess of equity net earnings was $10 million for the Middle Eastern affiliates, a $4 million increase from the prior year.

The company's total proportional affiliate EBITDA for the fourth quarter of 2011 increased to $83 million from $72 million in the prior year period and was $37 million more than reported in the company's operating EBITDA in the current period. As of December 31, 2011, the company's total proportional net debt of affiliates was $128 million.

Cash Flow
The company generated $638 million in cash from operating activities for the full year 2011, an increase of $186 million from the prior year period, primarily due to the company's increased earnings. During 2011, the company used $441 million in cash for investing activities compared with $560 million in the prior year. The 2011 results included investments in capacity expansions and future operating efficiencies, including $204 million of capital expenditures related to its successful relocation of Ticona's operations in Kelsterbach, Germany to Frankfurt Hoechst Industrial Park. The company also received a final payment of $158 million related to the relocation during 2011. Cash used in financing activities in 2011 was $253 million, a decrease of $135 million from the prior year. In 2011, the company used a net of $196 million to repay debt, repurchased $31 million of its outstanding common shares, and paid $34 million in dividends. Net debt at the end of 2011 was $2,335 million, a $143 million decrease from the end of 2010.

Outlook
Based on improving order patterns in the first quarter of 2012, confidence in the fundamental strength of its business, and moderate global growth, the company expects 2012 adjusted earnings per share to be above consensus estimates that averaged

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$4.70. "Since the beginning of the first quarter we have seen an increased demand for our products and we are confident that the growth drivers of our business, our leading technologies, low cost positions, and strong presence in emerging economies will enable us to deliver increased earnings in 2012," said Weidman. "We continue to remain on track to meet our 2013 earnings growth objectives of at least $6.00 in adjusted earnings per share."
Contacts:
 
 
 
 
Investor Relations
 
Media - U.S.
 
Media - Europe
Jon Puckett
 
Jacqueline Terry
 
Jens Kurth
Phone: +1 972 443 4965
 
Phone: +1 972 443 4417
 
Phone: +49(0)69 45009 1574
Telefax: +1 972 443 8519
 
Telefax: +1 972 443 8519
 
Telefax: +49(0) 45009 58800
Jon.Puckett@celanese.com
 
Jacqueline.Terry@celanese.com
 
J.Kurth@celanese.com

Celanese Corporation is a global technology leader in the production of specialty materials and chemical products which are used in most major industries and consumer applications. Our products, essential to everyday living, are manufactured in North America, Europe and Asia. Known for operational excellence, sustainability and premier safety performance, Celanese delivers value to customers around the globe with best-in-class technologies. Based in Dallas, Texas, the company employs approximately 7,600 employees worldwide and had 2011 net sales of $6.8 billion, with approximately 73% generated outside of North America. For more information about Celanese Corporation and its global product offerings, visit www.celanese.com.

Forward-Looking Statements

This release may contain “forward-looking statements,” which include information concerning the company's plans, objectives, goals, strategies, future revenues or performance, capital expenditures, financing needs and other information that is not historical information. When used in this release, the words “outlook,” “forecast,” “estimates,” “expects,” “anticipates,” “projects,” “plans,” “intends,” “believes,” “may,” “can,” “could,” “might,” “will” and variations of such words or similar expressions are intended to identify forward-looking statements. All forward-looking statements are based upon current expectations and beliefs and various assumptions. There can be no assurance that the company will realize these expectations or that these beliefs will prove correct.
There are a number of risks and uncertainties that could cause actual results to differ materially from the results expressed or implied in the forward-looking statements contained in this release. These risks and uncertainties include, among other things: changes in general economic, business, political and regulatory conditions in the countries or regions in which we operate; the length and depth of business cycles, particularly in the automotive, electrical, electronics and construction industries; changes in the price and availability of raw materials; the ability to pass increases in raw material prices on to customers or otherwise improve margins through price increases; the ability to maintain plant utilization rates and to implement planned capacity additions and expansions; the ability to improve productivity by implementing technological improvements to existing plants; increased price competition and the
introduction of competing products by other companies; market acceptance of our technology; the ability to obtain governmental approvals and to construct facilities on terms and schedule acceptable to the company; changes in the degree of intellectual property and other legal protection afforded to our products; compliance and other costs and potential disruption or interruption of production or operations due to accidents, cyber security incidents, terrorism or political unrest or other unforeseen events or delays in construction or operation of facilities; 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; 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.

Reconciliation of Non-U.S. GAAP Measures to U.S. GAAP

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

Use of Non-U.S. GAAP Financial Information

Operating EBITDA is defined by the company as net earnings less interest income plus loss (earnings) from discontinued operations, interest expense, taxes, and depreciation and amortization, and further adjusted for Other Charges and Adjustments as described in Table 7. We present operating EBITDA because we consider it an important supplemental measure of our operations and financial performance. We believe that operating EBITDA is more reflective of our operations as it provides transparency to investors and enhances period-to-period comparability of our operations and financial performance. Operating EBITDA is one of the measures management uses for its planning and budgeting process to monitor and evaluate financial and operating results and for the company's incentive compensation plan. Operating EBITDA should not be considered as an alternative to net income determined in accordance with U.S. GAAP. We may provide guidance on operating EBITDA and are unable to reconcile forecasted operating EBITDA to a U.S. GAAP financial measure because a forecast of Other Charges and Adjustments is not practical.

5



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

Results Unaudited

The results presented in this release, together with the adjustments made to present the results on a comparable basis, have not been audited and are based on internal financial data furnished to management.




6



Consolidated Statements of Operations - Unaudited
 
Three Months Ended
December 31,
 
Year Ended
December 31,
(in $ millions, except share and per share data)
2011
 
2010
 
2011
 
2010
Net sales
1,614

 
1,507

 
6,763

 
5,918

Cost of sales
(1,342
)
 
(1,194
)
 
(5,329
)
 
(4,738
)
Gross profit
272

 
313

 
1,434

 
1,180

Selling, general and administrative expenses
(128
)
 
(132
)
 
(536
)
 
(505
)
Amortization of intangible assets
(12
)
 
(16
)
 
(62
)
 
(61
)
Research and development expenses
(24
)
 
(18
)
 
(96
)
 
(70
)
Other (charges) gains, net
(9
)
 
1

 
(48
)
 
(46
)
Foreign exchange gain (loss), net
(1
)
 
(4
)
 

 
(3
)
Gain (loss) on disposition of businesses and asset, net
(1
)
 
(4
)
 
(2
)
 
8

Operating profit (loss)
97

 
140

 
690

 
503

Equity in net earnings (loss) of affiliates
46

 
37

 
192

 
168

Interest expense
(55
)
 
(58
)
 
(221
)
 
(204
)
Refinancing expense

 

 
(3
)
 
(16
)
Interest income
1

 
5

 
3

 
7

Dividend income - cost investments

 

 
80

 
73

Other income (expense), net
5

 
6

 
14

 
7

Earnings (loss) from continuing operations before tax
94

 
130

 
755

 
538

Income tax (provision) benefit
2

 
(27
)
 
(149
)
 
(112
)
Earnings (loss) from continuing operations
96

 
103

 
606

 
426

Earnings (loss) from operation of discontinued operations
(1
)
 
(72
)
 
2

 
(80
)
Gain (loss) on disposition of discontinued operations

 

 

 
2

Income tax (provision) benefit, discontinued operations

 
27

 
(1
)
 
29

Earnings (loss) from discontinued operations
(1
)
 
(45
)
 
1

 
(49
)
Net earnings (loss)
95

 
58

 
607

 
377

Net earnings (loss) attributable to noncontrolling interests

 

 

 

Net earnings (loss) attributable to Celanese Corporation
95

 
58

 
607

 
377

Cumulative preferred stock dividends

 

 

 
(3
)
Net earnings (loss) available to common stockholders
95

 
58

 
607

 
374

Amounts attributable to Celanese Corporation
 
 
 
 
 
 
 
Earnings (loss) per common share - basic
 
 
 
 
 
 
 
Continuing operations
0.62

 
0.66

 
3.88

 
2.73

Discontinued operations
(0.01
)
 
(0.29
)
 
0.01

 
(0.31
)
Net earnings (loss) - basic
0.61

 
0.37

 
3.89

 
2.42

Earnings (loss) per common share - diluted
 
 
 
 
 
 
 
Continuing operations
0.61

 
0.65

 
3.81

 
2.69

Discontinued operations
(0.01
)
 
(0.29
)
 
0.01

 
(0.31
)
Net earnings (loss) - diluted
0.60

 
0.36

 
3.82

 
2.38

Weighted average shares (in millions)
 
 
 
 
 
 
 
Basic
156.4

 
155.7

 
156.2

 
154.6

Diluted
158.9

 
158.3

 
158.9

 
158.4




7



Consolidated Balance Sheets - Unaudited
 
As of December 31,
(in $ millions)
2011
 
2010
ASSETS
 
 
 
Current assets
 
 
 
Cash & cash equivalents
682

 
740

Trade receivables - third party and affiliates, net
871

 
827

Non-trade receivables, net
235

 
253

Inventories
712

 
610

Deferred income taxes
104

 
92

Marketable securities, at fair value
64

 
78

Assets held for sale

 
9

Other assets
35

 
59

Total current assets
2,703

 
2,668

Investments in affiliates
824

 
838

Property, plant and equipment, net
3,269

 
3,017

Deferred income taxes
421

 
443

Other assets
344

 
289

Goodwill
760

 
774

Intangible assets, net
197

 
252

  Total assets
8,518

 
8,281

 
 
 
 
LIABILITIES AND EQUITY
 
 
 
Current liabilities
 
 
 
Short-term borrowings and current installments of long-term debt - third party and affiliates
144

 
228

Trade payables - third party and affiliates
673

 
673

Other liabilities
539

 
596

Deferred income taxes
17

 
28

Income taxes payable
12

 
17

Total current liabilities
1,385

 
1,542

Long-term debt
2,873

 
2,990

Deferred income taxes
92

 
116

Uncertain tax positions
182

 
273

Benefit obligations
1,492

 
1,359

Other liabilities
1,153

 
1,075

Commitments and contingencies
 
 
 
Stockholders' equity
 
 
 
Preferred stock

 

Common stock

 

Treasury stock, at cost
(860
)
 
(829
)
Additional paid-in capital
627

 
574

Retained earnings
2,424

 
1,851

Accumulated other comprehensive income (loss), net
(850
)
 
(670
)
  Total Celanese Corporation stockholders' equity
1,341

 
926

  Noncontrolling interests

 

  Total equity
1,341

 
926

  Total liabilities and equity
8,518

 
8,281





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Table 1
Segment Data and Reconciliation of Operating Profit (Loss) to Operating EBITDA -
a Non-U.S. GAAP Measure - Unaudited
 
Three Months Ended
December 31,
 
Year Ended
December 31,
(in $ millions)
2011
 
2010
 
2011
 
2010
Net Sales
 
 
 
 
 
 
 
Advanced Engineered Materials
292

 
274

 
1,298

 
1,109

Consumer Specialties
306

 
281

 
1,161

 
1,098

Industrial Specialties
272

 
249

 
1,223

 
1,036

Acetyl Intermediates
849

 
799

 
3,551

 
3,082

Other Activities 1

 
1

 
1

 
2

Intersegment eliminations
(105
)
 
(97
)
 
(471
)
 
(409
)
Total
1,614

 
1,507

 
6,763

 
5,918

Operating Profit (Loss)
 
 
 
 
 
 
 
Advanced Engineered Materials
(3
)
 
35

 
76

 
186

Consumer Specialties
59

 
59

 
227

 
164

Industrial Specialties
17

 
11

 
100

 
89

Acetyl Intermediates
67

 
94

 
459

 
243

Other Activities 1
(43
)
 
(59
)
 
(172
)
 
(179
)
Total
97

 
140

 
690

 
503

Other Charges and Other Adjustments 2
 
 
 
 
 
 
 
Advanced Engineered Materials
8

 
(16
)
 
60

 
(38
)
Consumer Specialties
5

 
13

 
23

 
97

Industrial Specialties
1

 
6

 
1

 
(19
)
Acetyl Intermediates
4

 
6

 
(3
)
 
62

Other Activities 1
1

 
5

 
18

 
11

Total
19

 
14

 
99

 
113

Depreciation and Amortization Expense 3
 
 
 
 
 
 
 
Advanced Engineered Materials
32

 
19

 
97

 
72

Consumer Specialties
9

 
9

 
36

 
37

Industrial Specialties
11

 
10

 
45

 
41

Acetyl Intermediates
21

 
25

 
96

 
97

Other Activities 1
3

 
2

 
13

 
11

Total
76

 
65

 
287


258

Business Operating EBITDA
 
 
 
 
 
 
 
Advanced Engineered Materials
37

 
38

 
233

 
220

Consumer Specialties
73

 
81

 
286

 
298

Industrial Specialties
29

 
27

 
146

 
111

Acetyl Intermediates
92

 
125

 
552

 
402

Other Activities 1
(39
)
 
(52
)
 
(141
)
 
(157
)
Total
192

 
219

 
1,076

 
874

Equity Earnings, Cost - Dividend Income and Other Income (Expense)
 
 
 
 
 
 
 
Advanced Engineered Materials
36

 
30

 
163

 
143

Consumer Specialties

 
(1
)
 
80

 
73

Industrial Specialties
1

 

 
2

 

Acetyl Intermediates
3

 
2

 
10

 
9

Other Activities 1
11

 
12

 
31

 
23

Total
51

 
43

 
286

 
248

Operating EBITDA
 
 
 
 
 
 
 
Advanced Engineered Materials
73

 
68

 
396

 
363

Consumer Specialties
73

 
80

 
366

 
371

Industrial Specialties
30

 
27

 
148

 
111

Acetyl Intermediates
95

 
127

 
562

 
411

Other Activities 1
(28
)
 
(40
)
 
(110
)
 
(134
)
Total
243

 
262

 
1,362

 
1,122

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



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Table 1A
Reconciliation of Consolidated Net Earnings (Loss) to Operating EBITDA -
a Non-U.S. GAAP Measure - Unaudited
 
Three Months Ended
December 31,
 
Year Ended
December 31,
(in $ millions)
2011
 
2010
 
2011
 
2010
Net earnings (loss) attributable to Celanese Corporation
95

 
58

 
607

 
377

(Earnings) loss from discontinued operations
1

 
45

 
(1
)
 
49

Interest income
(1
)
 
(5
)
 
(3
)
 
(7
)
Interest expense
55

 
58

 
221

 
204

Refinancing expense

 

 
3

 
16

Income tax provision (benefit)
(2
)
 
27

 
149

 
112

Depreciation and amortization expense 2
76

 
65

 
287

 
258

Other charges (gains), net 1
9

 
(1
)
 
48

 
46

Other adjustments 1
10

 
15

 
51

 
67

Operating EBITDA
243

 
262

 
1,362

 
1,122

Detail by Segment
 
 
 
 
 
 
 
Advanced Engineered Materials
73

 
68

 
396

 
363

Consumer Specialties
73

 
80

 
366

 
371

Industrial Specialties
30

 
27

 
148

 
111

Acetyl Intermediates
95

 
127

 
562

 
411

Other Activities 3
(28
)
 
(40
)
 
(110
)
 
(134
)
Operating EBITDA
243

 
262

 
1,362

 
1,122

1 See Table 7 for details.
2 Excludes accelerated depreciation and amortization expense associated with plant closures as detailed in the table below and included in Other adjustments above.

 
Three Months Ended
December 31,
 
Year Ended
December 31,
(in $ millions)
2011
 
2010
 
2011
 
2010
Advanced Engineered Materials

 

 
3

 
4

Consumer Specialties
1

 
4

 
8

 
5

Industrial Specialties

 

 

 

Acetyl Intermediates

 

 

 
20

Other Activities 3

 
(1
)
 

 

Accelerated depreciation and amortization expense
1

 
3

 
11

 
29

Depreciation and amortization expense 2
76

 
65

 
287

 
258

Total depreciation and amortization expense
77

 
68

 
298

 
287

3 Other Activities includes corporate selling, general and administrative expenses and the results from captive insurance companies.


 







10



Table 2
Factors Affecting Business Segment Net Sales - Unaudited

Three Months Ended December 31, 2011 Compared to Three Months Ended December 31, 2010
 
Volume
Price
Currency
Other
Total
 
(In percentages)
Advanced Engineered Materials
(4
)
 
7

 

 
4

(1) 
7

Consumer Specialties
4

 
5

 

 

 
9

Industrial Specialties
(4
)
 
13

 

 

 
9

Acetyl Intermediates
(5
)
 
9

 
1

 
1

 
6

Total Company
(3
)
 
9

 

 
1

(2) 
7


Twelve Months Ended December 31, 2011 Compared to Twelve Months Ended December 31, 2010
 
Volume
Price
Currency
Other
Total
 
(In percentages)
Advanced Engineered Materials
2

 
8

 
3

 
4

(1) 
17

Consumer Specialties
1

 
5

 

 

 
6

Industrial Specialties
2

 
13

 
3

 

 
18

Acetyl Intermediates
(4
)
 
16

 
3

 

 
15

Total Company
(1
)
 
13

 
3

 

(2) 
15

1  Includes the effects of the two product lines acquired in May 2010 from DuPont Performance Polymers.
2  Includes the effects of the captive insurance companies and the impact of fluctuations in intersegment eliminations.

Table 3
Cash Flow Information - Unaudited
 
Year Ended
December 31,
(in $ millions)
2011
 
2010
Net cash provided by operating activities
638

 
452

Net cash provided by (used in) investing activities 1
(441
)
 
(560
)
Net cash used in financing activities
(253
)
 
(388
)
Exchange rate effects on cash
(2
)
 
(18
)
Cash and cash equivalents at beginning of period
740

 
1,254

Cash and cash equivalents at end of period
682

 
740

1  2011 and 2010 include $204 million and $312 million, respectively, of capital expenditures related to the Ticona Kelsterbach plant relocation. 2011 includes $158 million of cash proceeds related to the Ticona Kelsterbach plant relocation.


Table 4
Cash Dividends Received - Unaudited
 
Three Months Ended
December 31,
 
Year Ended
December 31,
(in $ millions)
2011
 
2010
 
2011
 
2010
Dividends from equity investments
40

 
18

 
205

 
138

Dividends from cost investments

 

 
80

 
73

Total
40

 
18

 
285

 
211


11



Table 5
Net Debt - Reconciliation of a Non-U.S. GAAP Measure - Unaudited
 
As of December 31,
(in $ millions)
2011
 
2010
Short-term borrowings and current installments of long-term debt - third party and affiliates
144

 
228

Long-term debt
2,873

 
2,990

Total debt
3,017

 
3,218

Less: Cash and cash equivalents
682

 
740

Net Debt
2,335

 
2,478


Table 6
Adjusted Earnings (Loss) Per Share - Reconciliation of a Non-U.S. GAAP Measure - Unaudited
 
Three Months Ended
December 31,
 
Year Ended
December 31,
(in $ millions, except share and per share data)
2011
 
2010
 
2011
 
2010
 
 
 
per
share
 
 
 
per
share
 
 
 
per
share
 
 
 
per
share
Earnings (loss) from continuing operations
96

 
0.61

 
103

 
0.65

 
606

 
3.81

 
426

 
2.69

Deduct: Income tax (provision) benefit
2

 
 
 
(27
)
 
 
 
(149
)
 
 
 
(112
)
 
 
Earnings (loss) from continuing operations before tax
94

 
 
 
130

 
 
 
755

 
 
 
538

 
 
Other charges and other adjustments 1
19

 
 
 
14

 
 
 
99

 
 
 
113

 
 
Refinancing - related expenses
(2
)
 
 
 

 
 
 
3

 
 
 
16

 
 
Adjusted earnings (loss) from continuing operations before tax
111

 
 
 
144

 
 
 
857

 
 
 
667

 
 
Income tax (provision) benefit on adjusted earnings 2
(19
)
 
 
 
(29
)
 
 
 
(146
)
 
 
 
(133
)
 
 
Less: Noncontrolling interests

 
 
 

 
 
 

 
 
 

 
 
Adjusted earnings (loss) from continuing operations
92

 
0.58

 
115

 
0.73

 
711

 
4.47

 
534

 
3.37

Diluted shares (in millions) 3
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Weighted average shares outstanding
 
 
156.4

 
 
 
155.7

 
 
 
156.2

 
 
 
154.6

Assumed conversion of preferred stock
 
 

 
 
 

 
 
 

 
 
 
1.6

Dilutive restricted stock units
 
 
0.7

 
 
 
0.6

 
 
 
0.8

 
 
 
0.4

Dilutive stock options
 
 
1.8

 
 
 
2.0

 
 
 
1.9

 
 
 
1.8

Total diluted shares
 
 
158.9

 
 
 
158.3

 
 
 
158.9

 
 
 
158.4

1 See Table 7 for details.
2 The adjusted effective tax rate is 17% for the three and twelve months ended December 31, 2011 and 20% for the three and twelve months ended December 31, 2010.
3 Potentially dilutive shares are included in the adjusted earnings per share calculation when adjusted earnings are positive.



 


12



Table 7
Other Charges and Other Adjustments - Reconciliation of a Non-U.S. GAAP Measure - Unaudited
Other Charges:
 
 
 
 
 
 
 
 
 
Three Months Ended
December 31,
 
Year Ended December 31,
 
(in $ millions)
2011
 
2010
 
2011
 
2010
 
Employee termination benefits
4

 
6

 
22

 
32

 
Ticona Kelsterbach plant relocation
4

 
9

 
47

 
26

 
Plumbing actions

 
(19
)
 
(6
)
 
(59
)
 
Insurance recoveries

 

 

 
(18
)
 
Asset impairments
1

 
1

 
1

 
74

 
Plant/office closures

 

 

 
4

 
Commercial disputes

 
2

 
(15
)
 
(13
)
 
Other

 

 
(1
)
 

 
Total
9

 
(1
)
 
48

 
46

 
 
 
 
 
 
 
 
 
 
Other Adjustments: 1
 
 
 
 
 
 
 
 
 
Three Months Ended
December 31,
 
Year Ended December 31,
Income Statement
(in $ millions)
2011
 
2010
 
2011
 
2010
Classification
Business optimization
1

 
6

 
8

 
16

Cost of sales / SG&A
Ticona Kelsterbach plant relocation
1

 
(6
)
 
8

 
(13
)
Cost of sales
Plant closures
3

 
3

 
18

 
17

Cost of sales / SG&A
Contract termination

 

 

 
22

Cost of sales
(Gain) loss on disposition of assets

 
5

 
(1
)
 
(10
)
(Gain) loss on disposition
Write-off of other productive assets

 
1

 
(1
)
 
18

Cost of sales
Commercial disputes
1

 

 
8

 

Cost of sales
Other
4

 
6

 
11

 
17

Various
Total
10

 
15

 
51

 
67

 
Total other charges and other adjustments
19

 
14

 
99

 
113

 
1 These items are included in net earnings but not included in other charges.


 

13



Table 8
Equity Affiliate Results and Reconciliation of Operating Profit to Affiliate EBITDA -
a Non-U.S. GAAP Measure - Total - Unaudited
 
Three Months Ended
December 31,
 
Year Ended
December 31,
(in $ millions)
2011
 
2010
 
2011
 
2010
Net Sales
 
 
 
 
 
 
 
Ticona Affiliates - Asia 1
405

 
400

 
1,637

 
1,543

Ticona Affiliates - Middle East 2
353

 
205

 
1,204

 
923

Infraserv Affiliates 3
595

 
579

 
2,192

 
2,070

Total
1,353

 
1,184

 
5,033

 
4,536

Operating Profit
 
 
 
 
 
 
 
Ticona Affiliates - Asia 1
9

 
43

 
160

 
222

Ticona Affiliates - Middle East 2
172

 
84

 
541

 
400

Infraserv Affiliates 3
38

 
31

 
138

 
101

Total
219

 
158

 
839

 
723

Depreciation and Amortization
 
 
 
 
 
 
 
Ticona Affiliates - Asia 1
19

 
22

 
76

 
85

Ticona Affiliates - Middle East 2
10

 
8

 
48

 
33

Infraserv Affiliates 3
36

 
26

 
120

 
101

Total
65

 
56

 
244

 
219

Affiliate EBITDA
 
 
 
 
 
 
 
Ticona Affiliates - Asia 1
28

 
65

 
236

 
307

Ticona Affiliates - Middle East 2
182

 
92

 
589

 
433

Infraserv Affiliates 3
74

 
57

 
258

 
202

Total
284

 
214

 
1,083

 
942

Net Income
 
 
 
 
 
 
 
Ticona Affiliates - Asia 1
1

 
27

 
104

 
134

Ticona Affiliates - Middle East 2
153

 
74

 
481

 
357

Infraserv Affiliates 3
29

 
20

 
95

 
75

Total
183

 
121

 
680

 
566

Net Debt
 
 
 
 
 
 
 
Ticona Affiliates - Asia 1
172

 
53

 
172

 
53

Ticona Affiliates - Middle East 2
(110
)
 
(64
)
 
(110
)
 
(64
)
Infraserv Affiliates 3
236

 
277

 
236

 
277

Total
298

 
266

 
298

 
266

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



14



Table 8 (continued)
Equity Affiliate Results and Reconciliation of Proportional Operating Profit to Proportional Affiliate EBITDA - a Non-U.S. GAAP Measure - Celanese Proportional Share - Unaudited
 
Three Months Ended
December 31,
 
Year Ended
December 31,
(in $ millions)
2011
 
2010
 
2011
 
2010
Proportional Net Sales
 
 
 
 
 
 
 
Ticona Affiliates - Asia 1
187

 
185

 
757

 
713

Ticona Affiliates - Middle East 2
88

 
51

 
301

 
231

Infraserv Affiliates 3
196

 
190

 
722

 
679

Total
471

 
426

 
1,780

 
1,623

Proportional Operating Profit
 
 
 
 
 
 
 
Ticona Affiliates - Asia 1
5

 
20

 
76

 
103

Ticona Affiliates - Middle East 2
43

 
21

 
135

 
100

Infraserv Affiliates 3
13

 
11

 
45

 
33

Total
61

 
52

 
256

 
236

Proportional Depreciation and Amortization
 
 
 
 
 
 
 
Ticona Affiliates - Asia 1
9

 
10

 
35

 
39

Ticona Affiliates - Middle East 2
2

 
2

 
12

 
8

Infraserv Affiliates 3
11

 
8

 
39

 
33

Total
22

 
20

 
86

 
80

Proportional Affiliate EBITDA
 
 
 
 
 
 
 
Ticona Affiliates - Asia 1
14

 
30

 
111

 
142

Ticona Affiliates - Middle East 2
45

 
23

 
147

 
108

Infraserv Affiliates 3
24

 
19

 
84

 
66

Total
83

 
72

 
342

 
316

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

 
13

 
49

 
63

Ticona Affiliates - Middle East 2
35

 
17

 
112

 
81

Infraserv Affiliates 3
10

 
7

 
31

 
24

Total
46

 
37

 
192

 
168

Proportional Affiliate EBITDA in Excess of Equity in Net Earnings of Affiliates
 
 
 
 
 
 
 
Ticona Affiliates - Asia 1
13

 
17

 
62

 
79

Ticona Affiliates - Middle East 2
10

 
6

 
35

 
27

Infraserv Affiliates 3
14

 
12

 
53

 
42

Total
37

 
35

 
150

 
148

Proportional Net Debt
 
 
 
 
 
 
 
Ticona Affiliates - Asia 1
77

 
23

 
77

 
23

Ticona Affiliates - Middle East 2
(27
)
 
(16
)
 
(27
)
 
(16
)
Infraserv Affiliates 3
78

 
89

 
78

 
89

Total
128

 
96

 
128

 
96

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


15