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Dec 31, 2022

Celanese Q4 2022 Earnings Report

Reported resilient performance despite challenging conditions, delivering GAAP diluted earnings per share of $7.03 and adjusted earnings per share of $1.44.

Key Takeaways

Celanese Corporation reported fourth-quarter earnings, highlighting resilient performance amidst challenging market conditions. The company's adjusted earnings per share performance was within 12 percent of the all-time high delivered in 2021 and 44 percent higher than the next best year.

Completed the acquisition of Mobility & Materials on November 1, 2022.

Announced the signing of a term sheet to form a standalone Food Ingredients joint venture.

Completed a strategic overhaul of the acetate flake and tow products as part of the Acetyl Chain.

Completed an ultra-low capital project, at the EVA facility in Edmonton, to repurpose existing manufacturing and infrastructure assets and unlock approximately 35 percent incremental capacity to meet strong demand growth.

Total Revenue
$2.35B
Previous year: $2.28B
+3.2%
EPS
$1.44
Previous year: $4.91
-70.7%
Gross Profit
$384M
Previous year: $721M
-46.7%
Cash and Equivalents
$1.51B
Previous year: $536M
+181.3%
Free Cash Flow
$395M
Previous year: $415M
-4.8%
Total Assets
$26.3B
Previous year: $12B
+119.4%

Celanese

Celanese

Celanese Revenue by Segment

Forward Guidance

The company anticipates first quarter adjusted earnings per share of $1.50 to $1.75, inclusive of approximately $0.30 per share of M&M transaction amortization. An upward trajectory in quarterly earnings across 2023 is expected as a result of demand improvement, enhancements to businesses, and M&M synergies.

Positive Outlook

  • March order books reflect improvement in many of the recent external challenges
  • Confident that the back half of the first quarter will represent an inflection point
  • Sequential earnings improvement across our businesses
  • Demand improvement reflected in our current order books
  • Enhancements to our businesses, and M&M synergies

Challenges Ahead

  • Accelerated destocking
  • Poor sequential demand in Asia due to COVID
  • Challenging competitive dynamics in Europe
  • Impact of Winter Storm Elliott
  • Taking action to address those which still persist

Revenue & Expenses

Visualization of income flow from segment revenue to net income