Celanese(US:CE)2024-08-01 20:39Financial Performance - In Q2 2024, net earnings attributable to Celanese Corporation were $155 million, an increase from $121 million in Q1 2024[19] - Adjusted EBIT for Q2 2024 was $451 million, compared to $407 million in Q1 2024, reflecting a strong operational performance[19] - Operating EBITDA for Q2 2024 reached $632 million, up from $583 million in Q1 2024, indicating improved cash flow generation[19] - The adjusted earnings per share for Q2 2024 was $2.50, reflecting a solid increase compared to $2.20 in Q1 2024[19] - The adjusted EBIT margin for Q2 2024 was 22.5%, indicating effective cost management and pricing strategies[19] - The company reported net earnings attributable to Celanese Corporation of $252 million with a margin of 9.5% in Q2 '24, compared to $207 million and 7.9% in Q1 '24[22] - Adjusted earnings from continuing operations for Q2 '24 were $261 million, or $2.38 per share, compared to $228 million, or $2.08 per share in Q1 '24[26] - The effective tax rate for Q2 '24 was 9%, consistent with Q1 '24, and significantly lower than the 12% rate in Q2 '23[27] - The adjusted earnings before tax for Q2 '24 was $287 million, compared to $251 million in Q1 '24, indicating improved operational performance[26] Sales and Revenue - Celanese Corporation's total net sales for Q2 2024 were $2.0 billion, with a year-over-year increase of 10% attributed to higher pricing and volume[16] - Net sales for Q2 '24 reached $2.651 billion, a slight increase from $2.611 billion in Q1 '24, with Engineered Materials contributing $1.467 billion and Acetyl Chain contributing $1.202 billion[32] - Year-over-year, total company net sales decreased by 5%, driven by a 7% decline in Engineered Materials and a 3% decline in Acetyl Chain[37] - The company reported a sequential increase in volume of 4% for total company sales, primarily due to Engineered Materials, which saw a 6% increase[33] - The Acetyl Chain segment experienced a 5% sequential decline in net sales, attributed to a decrease in volume and pricing pressures[33] - Engineered Materials segment reported a volume decrease of 8% and a price decrease of 15%, resulting in a total revenue of $67 million for Q2 2023[39] - Acetyl Chain segment experienced a volume decrease of 2% and a price decrease of 19%, leading to a total revenue decline of $21 million for Q2 2023[39] - Total company revenue for Q2 2023 was $12 million, reflecting a volume increase of 27% but a price decrease of 15% compared to Q2 2022[39] Cash Flow and Debt - Free cash flow for the year was reported at $1.2 billion, demonstrating the company's strong liquidity position[14] - Free cash flow for Q2 2024 was $173 million, representing 6.5% of net sales, compared to a negative free cash flow of $40 million in Q1 2024[42] - The company reported a total debt of $3.5 billion, with net debt calculated at $3.2 billion after accounting for cash and cash equivalents[15] - Net debt as of Q2 2024 was $11,850 million, a decrease from $11,974 million in Q1 2024[45] - Total dividends received in Q2 2024 amounted to $100 million, up from $61 million in Q1 2024[44] Segment Performance - Engineered Materials segment reported an operating profit of $138 million with a margin of 9.4% in Q2 '24, compared to $89 million and 6.5% in Q1 '24[22] - Acetyl Chain segment achieved an operating profit of $242 million with a margin of 20.1% in Q2 '24, consistent with Q1 '24[22] - Total operating profit for the company was $250 million with a margin of 9.4% in Q2 '24, up from $210 million and 8.0% in Q1 '24[22] - Adjusted EBIT for Engineered Materials was $265 million, representing an 18.1% margin in Q2 '24, compared to $201 million and 14.6% in Q1 '24[24] - Adjusted EBIT for Acetyl Chain was $277 million with a 23.0% margin in Q2 '24, down from $296 million and 23.5% in Q1 '24[24] - The Engineered Materials segment's operating EBITDA was $375 million with a margin of 25.6% in Q2 '24, compared to $303 million and 22.0% in Q1 '24[24] - The Acetyl Chain segment's operating EBITDA was $338 million with a margin of 28.1% in Q2 '24, down from $353 million and 28.0% in Q1 '24[24] Strategic Initiatives - The company plans to expand its market presence in Asia, focusing on increasing production capacity in the region[16] - Ongoing investments in new technologies and product development are expected to drive future growth and enhance competitive positioning[16] - The company plans to continue focusing on market expansion and new product development to drive future growth[26] - The company is actively pursuing strategic initiatives, including potential acquisitions, to enhance its market position and operational capabilities[26] Depreciation and Other Expenses - Total depreciation and amortization expense was $192 million in Q2 '24, compared to $221 million in Q1 '24[20] - Certain items attributable to Celanese Corporation included exit and shutdown costs of $69 million in Q2 2024[46] Return on Investment - Adjusted EBIT for 2023 was $1,753 million, with an adjusted effective tax rate of 9%[49] - Return on invested capital (adjusted) for 2023 was 7.8%, with net earnings attributable to Celanese Corporation at 9.5% of invested capital[50]