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Sep 30, 2020
Celanese Q3 2020 Earnings Report
Reported strong demand recovery driven by volume increase and strategic actions.
Key Takeaways
Celanese Corporation reported a strong third quarter with net sales of $1.4 billion, driven by a 20 percent volume recovery. The company achieved GAAP diluted earnings per share of $1.76 and adjusted earnings per share of $1.95. Operating cash flow was $431 million, and free cash flow reached $351 million.
Completed the sale of the 45 percent equity investment in the Polyplastics joint venture to Daicel for approximately $1.6 billion.
Repurchased $111 million in shares in the third quarter and expects to complete an additional $400 million in share repurchases during the fourth quarter.
Launched BlueRidge™ cellulosic pellets as an alternative for conventional plastics in single-use consumer applications.
All production facilities across the globe are again fully staffed and operating to meet demand.
Celanese
Celanese
Celanese Revenue by Segment
Revenue by Segment
Engineered Materials Revenue
CapyFin.comAcetyl Chain Revenue
CapyFin.com Forward Guidance
The company expects full year 2020 adjusted earnings of approximately $7.00 to $7.10 per share. Looking to 2021, the company remains confident that underlying demand will reach pre-COVID levels at some point in the year.
Positive Outlook
- Global demand during the third quarter progressed well along the path of recovery.
- October and November order books are shaping consistently with the third quarter and show no indications of demand retraction.
- Expects continued momentum in the fourth quarter.
- Focused on controllable actions to drive strong growth next year, including productivity, production planning, and disciplined capital deployment.
- Underlying demand will reach pre-COVID levels at some point in the year.
Challenges Ahead
- Monitoring the current resurgence of COVID-19 across various locations for any impact to our businesses.
- Various sequential headwinds including normal December seasonality.
- Major turnaround at our Frankfurt POM facility.
- Uncertainty remains.
- Unable to reconcile forecasted adjusted earnings per share growth to US GAAP diluted earnings per share without unreasonable efforts because a forecast of Certain Items, such as mark-to-market pension gains/losses, is not practical.
Revenue & Expenses
Visualization of income flow from segment revenue to net income