Celanese Q4 2019 Earnings Report
Key Takeaways
Celanese Corporation reported Q4 2019 GAAP diluted earnings per share of $0.35 and adjusted earnings per share of $1.99. Despite disappointing global demand, the company demonstrated resiliency and focused on controllable factors to deliver solid performance.
GAAP diluted earnings per share was $0.35 and adjusted earnings per share was $1.99.
The difference between GAAP and adjusted earnings per share for the quarter was due primarily to Certain Items including a pension mark to market adjustment, a reserve related to the European Commission investigation, and the incident at Clear Lake.
Repairs and restart of the Clear Lake carbon monoxide (CO) unit were completed in the middle of the fourth quarter and all production units on site are again operating at full rates.
Celanese completed $225 million in share repurchases in the fourth quarter with $1.2 billion remaining under the current share repurchase authorization as of year end.
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Celanese Revenue by Segment
Forward Guidance
The Company expects to reach 2020 adjusted earnings of $11 per share driven by factors within its control. Adjusted earnings per share in 2020 should be back half loaded as a result of cumulative returns from productivity and capital deployment as well as $70 to $80 million of turnaround expense in the Acetyl Chain and Engineered Materials occurring almost entirely in the first half.
Positive Outlook
- Cumulative returns from productivity
- Capital deployment
Challenges Ahead
- Demand levels in the fourth quarter were softer than anticipated
- No meaningful improvement in the demand landscape across 2020 versus 2019 is expected.
- Significant incremental turnaround expenses in the year
- $70 to $80 million of turnaround expense in the Acetyl Chain and Engineered Materials occurring almost entirely in the first half.
Revenue & Expenses
Visualization of income flow from segment revenue to net income