--
Net sales were $1,388 million, up 8% from prior year period
--
Operating profit was $109 million versus ($152) million in prior year
period
--
Net earnings were $5 million versus ($155) million in prior year period
--
Operating EBITDA was $227 million versus $63 million in prior year
period
--
Diluted EPS from continuing operations was ($0.01) versus ($0.99) in
prior year period
--
Adjusted EPS was $0.50 versus ($0.40) in prior year period
Three Months Ended Year Ended
December 31, December 31,
(in $ millions, except per share data) 2009 2008 2009 2008
Net sales 1,388 1,286 5,082 6,823
Operating profit (loss) 109 (152 ) 290 440
Net earnings (loss) attributable to Celanese Corporation 5 (155 ) 488 282
Operating EBITDA (1) 227 63 847 1,164
Diluted EPS - continuing operations ($0.01 ) ($0.99 ) $ 3.08 $ 2.28
Diluted EPS - total $ 0.02 ($1.09 ) $ 3.11 $ 1.73
Adjusted EPS (2) $ 0.50 ($0.40 ) $ 1.71 $ 2.75
(1) Non-U.S. GAAP measure. See reconciliation in Table 1.
(2) Non-U.S. GAAP measure. See reconciliation in Table 6.
Celanese Corporation (CE), a leading, global chemical company,
today reported fourth quarter 2009 net sales of $1,388 million, up 8
percent from the same period last year. The increase in net sales was
primarily driven by higher volumes resulting from improved global demand
for Acetyl Intermediates and Advanced Engineered Materials products. The
higher volumes were offset by lower pricing, primarily in Acetyl
Intermediates and Industrial Specialties, driven by continued low
industry utilization and lower raw material input costs. The fourth
quarter 2008 results included $54 million of net sales associated with
the polyvinyl alcohol (PVOH) business, which the company divested in
July 2009. Operating profit was $109 million compared with a loss of
$152 million in the prior year period. Last year’s results included $94
million of fixed asset impairment charges, primarily related to the
closure of the company’s acetic acid and vinyl acetate monomer (VAM)
production facility in Pardies, France, and its VAM production unit in
Cangrejera, Mexico. Excluding these impairment charges, the increase in
operating profit was attributed to higher volumes and the positive
impact of the company’s fixed spending reduction efforts. Net earnings
were $5 million compared with a loss of $155 million in the prior year
period. The fourth quarter 2008 results included $101 million of
non-cash inventory accounting impact.
Adjusted earnings per share for the fourth quarter of 2009 were $0.50
compared with a loss of $0.40 in the same period last year. The 2009
results exclude $17 million of other net charges and adjustments,
primarily related to the company’s manufacturing and administrative
restructuring efforts. Adjusted earnings per share reflect an effective
tax rate of 23 percent and a diluted share count of 158.4 million.
Operating EBITDA in the period was $227 million compared with $63
million in the prior year period.
"Our businesses performed well during the quarter, reflecting the
strength of our leading global positions and our commitment to
operational excellence and value creation," said David Weidman, chairman
and chief executive officer. "Overall industrial and consumer demand was
maintained from the third quarter and improved significantly from the
fourth quarter of 2008. Although 2009 was a challenging year for the
global economies, Celanese made significant progress in executing its
growth strategy and is well positioned to benefit as the economy
recovers."
Recent Highlights
--
Launched new, innovative polyacetal (POM) technology that is expected
to create significant additional growth opportunities for its Advanced
Engineered Materials business.
--
Signed memorandum of understanding with its acetate joint venture
partner, the China National Tobacco Corporation, to expand flake and
tow capacities at its joint venture facility in Nantong, China.
--
Ceased production of acetic acid and vinyl acetate monomer at its
facility in Pardies, France.
--
Reached a long-term agreement to supply vinyl acetate monomer to
Jiangxi Jiangwei High-Tech Stock Co., Ltd. Jiangwei will cease
production of its calcium carbide-based alternative for economic and
environmental reasons and source Celanese’s vinyl acetate monomer.
--
Acquired the long-fiber reinforced thermoplastics (LFT) business of
FACT GmbH (Future Advanced Composites Technology) of Germany,
supporting the company’s Advanced Engineered Materials growth strategy.
--
Announced redemption of its Convertible Perpetual Preferred Stock for
its Series A Common Stock, to be completed February 22, 2010.
Fourth Quarter Segment Overview
Advanced Engineered Materials
Advanced Engineered Materials experienced volume recovery and margin
expansion as it demonstrated the significant operating leverage in its
specialty engineered polymers business model. Net sales for the fourth
quarter were $239 million compared with $195 million in the fourth
quarter of 2008. Higher volumes across all end-markets and geographies,
as well as positive currency impacts, offset lower pricing due to
product mix. Operating profit increased to $33 million compared with a
loss of $48 million in the prior year period, driven by the increased
net sales, lower raw material and energy costs, as well as the company’s
fixed spending reduction efforts. Fourth quarter 2008 results included
$16 million associated with fixed asset impairments. Operating EBITDA
was $50 million in the fourth quarter of 2009 compared with a loss of $3
million in the same period last year. Results for the prior year period
included $23 million of impact related to inventory accounting. Equity
earnings from affiliates were $4 million lower than last year’s results
and included the impact of a planned turnaround at one of the affiliates
during the quarter.
Consumer Specialties
Consumer Specialties continued to deliver strong performance with
sustained margins. Net sales for the fourth quarter were $267 million
compared with $286 million in the same period last year. Higher pricing
in Acetate Products and positive currency impacts partially offset lower
volumes primarily related to softer consumer demand and continued
customer inventory destocking in these late-cycle businesses. Operating
profit was $47 million, $5 million lower than the prior year period, as
the strong pricing and the company’s fixed spending reduction efforts
could not offset the lower volumes, primarily in the Nutrinova business.
Operating EBITDA was $65 million, unchanged from the same period last
year.
Industrial Specialties
Industrial Specialties also experienced volume recovery in its emulsions
and EVA performance polymers businesses. Net sales for the fourth
quarter were $229 million compared with $277 million in the prior year
period, which included $54 million of sales associated with the
company’s PVOH business that was divested in July 2009. Higher volumes
in the current period offset reduced average pricing related to lower
raw material costs, particularly for VAM and ethylene. Operating profit
was $16 million compared with a loss of $8 million in the same period
last year. The fourth quarter 2009 results included a $10 million
captive insurance recovery related to the force majeure event at the
company’s performance polymers facility in Edmonton, Canada and also
benefited from the company’s fixed spending reduction efforts. Fourth
quarter 2008 results included $15 million of inventory accounting
impacts. Operating EBITDA for the quarter was $19 million compared with
$8 million in the prior year period.
Acetyl Intermediates
Acetyl Intermediates experienced significant volume recovery and margin
expansion as global demand for acetyl products increased in the
seasonally strong fourth quarter. Net sales were $743 million compared
with $656 million in the same period last year as higher volumes and
positive currency impacts more than offset lower average pricing for
acetic acid and downstream derivatives. The higher volumes were
primarily driven by stronger year-over-year global demand and were
supported by incremental capacity from the company’s expanded acetic
acid facility in Nanjing, China, prior to the closure of the facility in
Pardies, France in December 2009. Operating profit was $73 million
compared with a loss of $116 million in the same period last year,
driven by the higher volumes, lower raw material costs, and the
company’s fixed spending reduction efforts. Fourth quarter 2008 results
included an asset impairment of $76 million, primarily related to the
closure of the company’s operations in Pardies, France. Last year’s
results also included an impact of inventory accounting totaling
approximately $63 million. Operating EBITDA was $128 million compared
with $21 million in the same period last year. Dividends from the
company’s cost affiliates were $12 million lower than the prior year
period, primarily due to lower profits at Ibn Sina, its methanol and
methyl tertiary-butyl ether (MTBE) affiliate in Saudi Arabia.
Taxes
The tax rate for adjusted earnings per share was 29 percent in the first
six months of 2009 and 23 percent for the third and fourth quarters of
2009, compared with 26 percent in 2008. The U.S. GAAP effective tax rate
for continuing operations in 2009 was negative 101 percent compared to
15 percent in 2008. The decrease in the effective tax rate is primarily
due to a deferred tax benefit of $492 million for the release of certain
valuation allowances against U.S. net deferred tax assets, partially
offset by lower earnings in jurisdictions participating in tax holidays,
increases in valuation allowances on certain foreign net deferred tax
assets and the effect of new tax legislation in Mexico.
Cash taxes for 2009 were $17 million compared to $98 million in 2008.
The decrease in cash taxes paid is primarily the result of German and
Canadian tax refunds, lower earnings and the timing of cash taxes in
certain jurisdictions.
Equity and Cost Investments
Earnings from equity investments and dividends from cost investments,
which are reflected in the company’s adjusted earnings and operating
EBITDA, were $21 million compared with $37 million in the same period
last year. The decrease was primarily driven by lower dividends from the
company’s Ibn Sina cost affiliate. Equity and cost investment dividends,
which are included in cash flows, were $23 million compared with $31
million in the same period last year, also attributed to the lower
dividends from the Ibn Sina cost affiliate.
Cash Flow
The company continued to generate strong cash flow in 2009 with cash and
cash equivalents totaling $1,254 million at the end of the fourth
quarter of 2009 compared with $676 million in the prior year. Cash flow
provided by operating activities was $596 million for the full year 2009
compared with $586 million in the prior year. Lower cash taxes, lower
interest and favorable trade working capital helped to offset the lower
operating performance.
Net cash provided by investing activities for the full year 2009
increased to a cash inflow of $31 million versus a cash outflow of $201
million in 2008. The company received net cash of $168 million from the
sale of the PVOH business and an advance payment of $412 million related
to the relocation of Ticona’s business in Kelsterbach, Germany in 2009.
During 2009, the company spent a total of $367 million of capital
expenditures and other expenses related to the Kelsterbach relocation.
Net cash used in financing activities for the full year 2009 totaled
$112 million compared with $499 million in 2008. The 2008 results
included a cash outflow of $378 million associated with the company’s
share repurchase program.
Net debt at the end of the fourth quarter of 2009 was $2,247 million, a
$610 million decrease from the end of the fourth quarter of 2008.
Outlook
The company noted that it remains confident, even absent a significant
economic catalyst, in its ability to increase operating EBITDA in 2010
by approximately $200 million compared with 2009. The key areas of
operating EBITDA growth include:
--
increased volumes across all of its businesses totaling approximately
$100 million, based on second half 2009 demand levels continuing into
2010
--
additional fixed spending reductions of approximately $100 million,
driven by structural streamlining of the company’s manufacturing and
administrative functions
Additionally, the company expects an adjusted tax rate in the low 20s
percent range. The company also updated its expectation for depreciation
and amortization expense in 2010 to be approximately $30 million lower
than in 2009.
"We saw sustained global demand across our major end-markets and
geographies throughout the second half of 2009 and expect this trend to
continue in 2010. Even without significant improvement in the global
economies in the short term, we are confident that the execution of our
strategies will drive improved earnings in 2010 and throughout an
economic recovery," Weidman said.
As a global leader in the chemicals industry, Celanese Corporation
makes products essential to everyday living. Our products, found in
consumer and industrial applications, are manufactured in North America,
Europe and Asia. Net sales totaled $5.1 billion in 2009, with
approximately 73% generated outside of North America. Known for
operational excellence and execution of its business strategies,
Celanese delivers value to customers around the globe with innovations
and best-in-class technologies. Based in Dallas, Texas, the
company employs approximately 7,400 employees worldwide. For more
information on Celanese Corporation, please visit the company’s website
at 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," 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 forward-looking
statements contained in this release. Numerous factors, many of
which are beyond the company’s control, could cause actual results to
differ materially from those expressed as forward-looking statements.
Certain of these risk factors are discussed 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 five performance measures, operating EBITDA,
affiliate EBITDA, adjusted earnings per share, net debt and adjusted
free cash flow, 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 is
operating profit; for affiliate EBITDA is equity in net earnings of
affiliates; for adjusted earnings per share is earnings per common
share-diluted; for net debt is total debt; and for adjusted free cash
flow is cash flow from operations.
Use of Non-U.S. GAAP Financial Information
--
Operating EBITDA, a measure used by management to measure
performance, is defined by the company as operating profit from
continuing operations, plus equity in net earnings from affiliates,
other income and depreciation and amortization, and further adjusted
for other charges and adjustments. 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. Our management believes
operating EBITDA is useful to investors because it is one of the
primary measures our management uses for its planning and budgeting
processes and to monitor and evaluate financial and operating results.
--
Affiliate EBITDA, a measure used by management to measure
performance of its equity investments, 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 affiliate EBITDA
when determining the equity investments’ overall value in the company.
--
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 tax rate used for adjusted
earnings per share approximates the midpoint in a range of forecasted
tax rates for the year, excluding 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 significantly 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 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.
--
Adjusted free cash flow is defined by the company as cash flow from
operations less capital expenditures, other productive asset
purchases, operating cash from discontinued operations and certain
other charges and adjustments. 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 cash flow. Our
management and credit analysts use adjusted free cash flow to evaluate
the company’s liquidity and assess credit quality.
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. 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.
Preliminary Consolidated Statements of Operations - Unaudited
Three Months Ended Year Ended
December 31, December 31,
(in $ millions, except per share data) 2009 2008 2009 2008
Net sales 1,388 1,286 5,082 6,823
Cost of sales (1,099 ) (1,177 ) (4,079 ) (5,567 )
Gross profit 289 109 1,003 1,256
Selling, general and administrative expenses (131 ) (124 ) (469 ) (540 )
Amortization of Intangible assets (1) (19 ) (18 ) (77 ) (76 )
Research and development expenses (19 ) (21 ) (75 ) (80 )
Other (charges) gains, net (13 ) (84 ) (136 ) (108 )
Foreign exchange gain (loss), net 1 (7 ) 2 (4 )
Gain (loss) on disposition of businesses and assets, net 1 (7 ) 42 (8 )
Operating profit 109 (152 ) 290 440
Equity in net earnings (loss) of affiliates 4 8 48 54
Interest expense (51 ) (66 ) (207 ) (261 )
Interest income 1 4 8 31
Dividend income - cost investments 17 29 98 167
Other income (expense), net 6 (6 ) 4 3
Earnings (loss) from continuing operations before tax 86 (183 ) 241 434
Income tax (provision) benefit (85 ) 43 243 (63 )
Earnings (loss) from continuing operations 1 (140 ) 484 371
Earnings (loss) from operation of discontinued operations 6 - 6 (120 )
Gain on disposal of discontinued operations - 6 - 6
Income tax (provision) benefit, discontinued operations (2 ) (21 ) (2 ) 24
Earnings (loss) from discontinued operations 4 (15 ) 4 (90 )
Net earnings (loss) 5 (155 ) 488 281
Less: Net earnings (loss) attributable to noncontrolling interests - - - (1 )
Net earnings (loss) attributable to Celanese Corporation 5 (155 ) 488 282
Cumulative preferred stock dividend (2 ) (2 ) (10 ) (10 )
Net earnings (loss) available to common shareholders 3 (157 ) 478 272
Amounts attributable to Celanese Corporation
Earnings (loss) per common share - basic
Continuing operations ($0.01 ) ($0.99 ) $ 3.30 $ 2.44
Discontinued operations 0.03 (0.10 ) 0.03 (0.61 )
Net earnings (loss) - basic $ 0.02 ($1.09 ) $ 3.33 $ 1.83
Earnings (loss) per common share - diluted
Continuing operations ($0.01 ) ($0.99 ) $ 3.08 $ 2.28
Discontinued operations 0.03 (0.10 ) 0.03 (0.55 )
Net earnings (loss) - diluted $ 0.02 ($1.09 ) $ 3.11 $ 1.73
Weighted average shares (millions)
Basic 144.1 143.5 143.7 148.4
Diluted 144.1 143.5 157.1 163.5
(1) Customer related intangibles
Preliminary Consolidated Balance Sheets - Unaudited
December 31, December 31,
(in $ millions) 2009 2008
ASSETS
Current assets
Cash & cash equivalents 1,254 676
Trade receivables - third party and affiliates, net 721 631
Non-trade receivables 255 274
Inventories 522 577
Deferred income taxes 42 24
Marketable securities, at fair value 3 6
Assets held for sale 2 2
Other assets 57 96
Total current assets 2,856 2,286
Investments in affiliates 790 789
Property, plant and equipment, net 2,797 2,470
Deferred income taxes 484 27
Marketable securities, at fair value 80 94
Other assets 311 357
Goodwill 798 779
Intangible assets, net 294 364
Total assets 8,410 7,166
LIABILITIES AND SHAREHOLDERS’ EQUITY
Current liabilities
Short-term borrowings and current
installments of long-term debt - third party and affiliates 242 233
Trade payables - third party and affiliates 649 523
Other liabilities 611 574
Deferred income taxes 33 15
Income taxes payable 72 24
Total current liabilities 1,607 1,369
Long-term debt 3,259 3,300
Deferred income taxes 137 122
Uncertain tax positions 229 218
Benefit obligations 1,288 1,167
Other liabilities 1,306 806
Commitments and contingencies
Shareholders’ equity
Preferred stock - -
Common stock - -
Treasury stock, at cost (781 ) (781 )
Additional paid-in capital 522 495
Retained earnings 1,502 1,047
Accumulated other comprehensive income (loss), net (659 ) (579 )
Total Celanese Corporation shareholders’ equity 584 182
Noncontrolling interests - 2
Total shareholders’ equity 584 184
Total liabilities and shareholders’ equity 8,410 7,166
(1) Includes the effects of the captive insurance companies,
impact of fluctuations in intersegment eliminations and changes related
to the sale of PVOH on July 1, 2009.
Table 3
Cash Flow Information
Year Ended
December 31,
(in $ millions) 2009 2008
Net cash provided by operating activities 596 586
Net cash provided by (used in) investing activities (1) 31 (201 )
Net cash used in financing activities (112 ) (499 )
Exchange rate effects on cash 63 (35 )
Cash and cash equivalents at beginning of period 676 825
Cash and cash equivalents at end of period 1,254 676
(1) 2009 includes $412 million of cash received and $351
million of capital expenditures related to the Ticona Kelsterbach plant
relocation. 2008 includes $311 million of cash received and $185 million
of capital expenditures related to the Ticona Kelsterbach plant
relocation.
Table 4
Cash Dividends Received
Three Months Ended Year Ended
December 31, December 31,
(in $ millions) 2009 2008 2009 2008
Dividends from equity investments 6 2 37 64
Dividends from cost investments 17 29 98 167
Total 23 31 135 231
Table 5
Net Debt - Reconciliation of a Non-U.S. GAAP Measure
December 31, December 31,
(in $ millions) 2009 2008
Short-term borrowings and current
installments of long-term debt - third party and affiliates 242 233
Long-term debt 3,259 3,300
Total debt 3,501 3,533
Less: Cash and cash equivalents 1,254 676
Net Debt 2,247 2,857
Table 6
Adjusted Earnings (Loss) Per Share - Reconciliation of a Non-U.S.
GAAP Measure
Three Months Ended Year Ended
December 31, December 31,
(in $ millions, except per share data) 2009 2008 2009 2008
per per per per
share share share share
Earnings (loss) from continuing operations 1 (0.01 ) (140 ) (0.99 ) 484 3.08 371 2.28
Deduct Income tax (provision) benefit (85 ) 43 243 (63 )
Earnings (loss) from continuing operations
before tax 86 (183 ) 241 434
Other charges and other adjustments (1) 17 105 117 171
Adjusted earnings (loss) from continuing
operations before tax 103 (78 ) 358 605
Income tax (provision) benefit on adjusted earnings (2) (24 ) 20 (90 ) (157 )
Less: Noncontrolling interests - - - (1 )
Adjusted earnings (loss) from continuing
operations 79 0.50 (58 ) (0.40 ) 268 1.71 449 2.75
Diluted shares (in millions) (3)
Weighted average shares outstanding 144.1 143.5 143.7 148.4
Assumed conversion of preferred stock 12.1 - 12.1 12.0
Dilutive restricted stock units 0.3 - 0.2 0.5
Dilutive stock options 1.9 - 1.1 2.6
Total diluted shares 158.4 143.5 157.1 163.5
(1) See Table 7 for details.
(2) The adjusted effective tax rate for the six months ended
December 31, 2009 is 23%. The adjusted effective tax rate for the six
months ended June 30, 2009 is 29%.
(3 )Potentially dilutive shares are included in the adjusted
earnings per share calculation when adjusted earnings are positive.
Table 7
Reconciliation of Other Charges and Other Adjustments
Other Charges:
Three Months Ended Year Ended
December 31, December 31,
(in $ millions) 2009 2008 2009 2008
Employee termination benefits 11 2 105 21
Plant/office closures (3 ) - 17 7
Ticona Kelsterbach plant relocation 6 4 16 12
Clear Lake insurance recoveries - (15 ) (6 ) (38 )
Plumbing actions (7 ) - (10 ) -
Sorbates settlement - - - (8 )
Asset impairments 6 94 14 115
Other - (1 ) - (1 )
Total 13 84 136 108
Other Adjustments: (1)
Three Months Ended Year Ended Income
Statement
Classification
December 31, December 31,
(in $ millions) 2009 2008 2009 2008
Ethylene pipeline exit costs - - - (2 ) Other (income) expense, net
Business optimization 4 6 7 33 SG&A
Ticona Kelsterbach plant relocation (3 ) 2 - (4 ) Cost of sales
Plant closures 9 9 25 23 Cost of sales
Gain on sale of PVOH business - - (34 ) - (Gain) loss on disposition
Other(2) (6 ) 4 (17 ) 13 Various
Total 4 21 (19 ) 63
Total other charges and other adjustments 17 105 117 171
(1) These items are included in net earnings but not included
in other charges.
(2 )The year ended December 31, 2009 includes a one-time
adjustment to Equity in net earnings (loss) of affiliates of $19 million.
Table 8 - Equity Affiliate Data
Equity Affiliate Preliminary Results - Total - Unaudited
Three Months Ended Year Ended
(in $ millions) December 31, December 31,
2009 2008 2009 2008
Net Sales
Ticona Affiliates(1) 344 277 1,105 1,394
Infraserv Affiliates(2) 642 537 2,186 2,243
Total 986 814 3,291 3,637
Operating Profit
Ticona Affiliates 23 17 58 133
Infraserv Affiliates 16 19 103 98
Total 39 36 161 231
Depreciation and Amortization
Ticona Affiliates 21 22 87 76
Infraserv Affiliates 28 21 103 106
Total 49 43 190 182
Affiliate EBITDA(3)
Ticona Affiliates 44 39 145 209
Infraserv Affiliates 44 40 206 204
Total 88 79 351 413
Net Income
Ticona Affiliates - 10 15 77
Infraserv Affiliates 11 6 72 55
Total 11 16 87 132
Net Debt
Ticona Affiliates 131 216 131 216
Infraserv Affiliates 491 508 491 508
Total 622 724 622 724
Equity Affiliate Preliminary Results - Celanese Proportional
Share - Unaudited(4)
Three Months Ended Year Ended
(in $ millions) December 31, December 31,
2009 2008 2009 2008
Net Sales
Ticona Affiliates 159 127 510 642
Infraserv Affiliates 210 173 707 722
Total 369 300 1,217 1,364
Operating Profit
Ticona Affiliates 11 8 28 61
Infraserv Affiliates 6 9 33 34
Total 17 17 61 95
Depreciation and Amortization
Ticona Affiliates 10 10 40 35
Infraserv Affiliates 9 6 33 34
Total 19 16 73 69
Affiliate EBITDA(3)
Ticona Affiliates 21 18 68 96
Infraserv Affiliates 15 15 66 68
Total 36 33 134 164
Equity in net earnings of affiliates (as reported on the Income
Statement)
Ticona Affiliates(5) - 4 7 35
Infraserv Affiliates 4 4 22 19
Total 4 8 29 54
Affiliate EBITDA in excess of Equity in net earnings of affiliates(6)
Ticona Affiliates 21 14 61 61
Infraserv Affiliates 11 11 44 49
Total 32 25 105 110
Net Debt
Ticona Affiliates 58 98 58 98
Infraserv Affiliates 162 160 162 160
Total 220 258 220 258
(1 )Ticona Affiliates accounted for using the equity method
include Polyplastics (45% ownership), Korean Engineering Plastics (50%),
Fortron Industries (50%) and Una SA (50%).
(2 )Infraserv Affiliates accounted for using the equity method
include Infraserv Hoechst (32% ownership), Infraserv Gendorf (39%) and
Infraserv Knapsack (27%).
(3 )Affiliate EBITDA, a non-U.S. GAAP measure, is the sum of
Operating Profit and Depreciation and Amortization.
(4 )Calculated by multiplying each affiliate’s total share
amount by Celanese’s respective ownership percentage, netted by
reporting category.
(5 )The year ended December 31, 2009 excludes a one-time tax
adjustment to Equity in net earnings of affiliates of $19 million.
(6 )Calculated as Celanese proportion of Affiliate EBITDA less
Equity in net earnings of affiliates; not included in Celanese operating
EBITDA.
SOURCE: Celanese Corporation
Celanese Corporation
Investor Relations
Mark Oberle, +1 972 443 4464
Telefax: +1 972 443 8519
Mark.Oberle@celanese.com
or
Media -- U.S.
W. Travis Jacobsen, +1 972 443 3750
Telefax: +1 972 443 8519
William.Jacobsen@celanese.com
or
Media - Europe
Jens Kurth, +49 (0)6107 772 1574
Telefax: +49 (0)6107 772 7231
J.Kurth@celanese.com
