Loading...
•
Jun 30, 2020
Celanese Q2 2020 Earnings Report
Celanese reported strong cash flow generation and solid results.
Key Takeaways
Celanese Corporation reported Q2 2020 GAAP diluted earnings per share of $0.93 and adjusted earnings per share of $1.30 on net sales of $1.2 billion. The Company exceeded expectations in mitigating the effects of COVID-19. Celanese generated operating cash flow of $379 million and free cash flow of $283 million for the second quarter.
Announced the agreement to monetize equity investment in the Polyplastics joint venture for cash proceeds of $1.575 billion.
Increased outstanding share repurchase authorization to $1.563 billion.
Delivered robust operating cash flow of $379 million and free cash flow of $283 million even with the significant demand decline.
Announced the establishment of a European Compounding Center of Excellence at the Company's Forli, Italy facility.
Celanese
Celanese
Celanese Revenue by Segment
Revenue by Segment
Engineered Materials Revenue
CapyFin.comAcetyl Chain Revenue
CapyFin.com Forward Guidance
The company anticipates a modest sequential improvement in earnings next quarter with Engineered Materials leading the way with expected solid recovery in the automotive end market. The company expects to see relatively consistent results in the Acetyl Chain with a modest volume recovery offsetting incremental energy and turnaround costs.
Positive Outlook
- Demand recovery with the early third quarter order book at improved levels compared to the second quarter.
- Anticipate a modest sequential improvement in earnings next quarter
- Engineered Materials leading the way with expected solid recovery in the automotive end market.
- Expect to see relatively consistent results in the Acetyl Chain
- Modest volume recovery offsetting incremental energy and turnaround costs.
Challenges Ahead
- The recent surge in COVID-19 cases continues to be of concern not only in terms of the impact on the economic recovery but, more importantly, to the health and safety of our employees.
- Continue to take all the necessary precautions to ensure the safety of our employees, which remains our highest priority
- Focus remains on productivity
- Focus remains on sourcing flexibility and working capital management
- Taking intentional steps for recovery and growth into next year.
Revenue & Expenses
Visualization of income flow from segment revenue to net income