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Mar 31, 2022

Celanese Q1 2022 Earnings Report

Celanese reported record net sales and adjusted earnings per share, driven by volume and price expansion and successful mitigation of cost inflation.

Key Takeaways

Celanese Corporation reported a strong first quarter in 2022, with record net sales of $2.5 billion and adjusted earnings per share of $5.54. The company successfully mitigated cost inflation and sourcing constraints, delivering record consolidated operating profit and adjusted EBIT. Celanese also announced a definitive agreement to acquire a majority of the Mobility & Materials business of DuPont.

Net sales reached a record $2.5 billion, a 12 percent increase over the previous record in Q4 2021.

GAAP diluted earnings per share were $4.61, and adjusted earnings per share were $5.54.

Consolidated operating profit was $531 million, and adjusted EBIT was $713 million, both records.

A definitive agreement was announced to acquire a majority of the Mobility & Materials business of DuPont for $11.0 billion.

Total Revenue
$2.54B
Previous year: $1.8B
+41.2%
EPS
$5.54
Previous year: $3.46
+60.1%
Gross Profit
$745M
Previous year: $485M
+53.6%
Cash and Equivalents
$605M
Previous year: $791M
-23.5%
Free Cash Flow
$175M
Previous year: $19M
+821.1%
Total Assets
$12.4B
Previous year: $10.8B
+15.5%

Celanese

Celanese

Celanese Revenue by Segment

Forward Guidance

Celanese expects second quarter adjusted earnings of approximately $4.50 per share and now expects 2022 adjusted earnings per share to approach the 2021 adjusted earnings per share performance.

Positive Outlook

  • Strength in downstream Acetyl Chain products
  • Continued robust performance in Engineered Materials.
  • Successfully mitigated the vast majority of disruptions.
  • Team continues to demonstrate the capability of our Engineered Materials and Acetyl Chain business models to deliver robust performance
  • Despite persistent cost inflation and various external disruptions to our supply chain

Challenges Ahead

  • COVID-19 lockdowns across China
  • Worsening reliability of global maritime logistics.
  • Pricing in upstream products within the Acetyl Chain continues to moderate.
  • Monitoring developing challenges
  • A reconciliation of forecasted adjusted earnings per share to U.S. GAAP diluted earnings per share is not available without unreasonable efforts

Revenue & Expenses

Visualization of income flow from segment revenue to net income