Celanese(US:CE)2025-02-18 21:36Financial Performance - Celanese Corporation's adjusted EBIT is a key performance measure, providing transparency in evaluating operating results after removing unusual activities[11]. - The company reported a free cash flow measure, defined as net cash provided by operations less capital expenditures, indicating long-term cash generating ability[14]. - Net debt is defined as total debt less cash and cash equivalents, offering insights into the company's capital structure and credit quality[14]. - Operating EBITDA is calculated by adding depreciation and amortization to adjusted EBIT, providing a clearer view of operating performance[11]. - The adjusted earnings per share metric is used to assess primary operating results, excluding certain items that affect comparability[11]. - The adjusted EBIT margin is defined as adjusted EBIT divided by net sales, reflecting operational efficiency[11]. - Return on invested capital (adjusted) is calculated using adjusted EBIT tax-effected, assessing income generation from shareholders' and creditors' perspectives[14]. - The document includes reconciliations of non-GAAP financial measures to GAAP measures, ensuring clarity for investors[7]. - Celanese reported a net loss of $1,522 million in Q4 2024, compared to a net income of $1,960 million in 2023[15]. - Adjusted EBIT for Q4 2024 was $333 million, a decrease from $1,753 million in Q4 2023, reflecting a significant decline in profitability[17]. - Operating EBITDA for Q4 2024 was $517 million, down from $608 million in Q4 2023, indicating a 15% year-over-year decline[15]. - Adjusted earnings from continuing operations for Q4 '24 were $(1,514) million, translating to $(13.86) per share[21]. - The company experienced a loss from continuing operations before tax of $(1,004) million in 2024[21]. - Celanese Corporation reported a net loss of $1,522 million for 2024, compared to a net earnings of $1,960 million in 2023[44]. - Adjusted EBIT for 2024 was $1,648 million, slightly down from $1,753 million in 2023[44]. Segment Performance - The company segments its operations into Engineered Materials and the Acetyl Chain, with specific financial measures for each segment[4]. - The Engineered Materials segment reported an operating loss of $1,179 million in Q4 2024, with an operating margin of -21.0%[17]. - The Acetyl Chain segment achieved an operating profit of $951 million in Q4 2024, with a margin of 20.0%[17]. - Engineered Materials segment reported net sales of $5,607 million for 2024, with Q4 '24 sales at $1,281 million[24]. - Acetyl Chain segment achieved net sales of $4,763 million for 2024, with Q4 '24 sales at $1,110 million[24]. - Operating EBITDA for Engineered Materials was $1,296 million in 2024, with a margin of 23.1%[19]. - Operating EBITDA for Acetyl Chain was $1,346 million in 2024, with a margin of 28.3%[19]. - Engineered Materials segment net sales decreased by 14% sequentially due to a 10% drop in volume and a 3% decline in price for the three months ended December 31, 2024[26]. - The Acetyl Chain segment experienced a 7% decrease in total sales sequentially, attributed to a 4% decline in volume and a 2% drop in price[26]. - Year-over-year, the Engineered Materials segment saw a 9% decrease in total sales for the three months ended December 31, 2024[33]. Cash Flow and Capital Expenditures - Free cash flow for Q4 2024 was $173 million, representing 6.5% of net sales of $2,651 million[39]. - The company reported a 1% increase in cash provided by operating activities for Q4 2024, totaling $292 million[39]. - Capital expenditures on property, plant, and equipment for Q4 2024 were $105 million, contributing to a total of $435 million for the year[39]. Debt and Equity - Net debt as of Q4 2024 was $11,617 million, a decrease from $12,118 million in Q3 2024[42]. - Celanese's long-term debt decreased to $11,078 million in 2024 from $12,301 million in 2023[44]. - Celanese's shareholders' equity decreased to $5,175 million in 2024 from $7,091 million in 2023[44]. Outlook and Strategic Initiatives - The company provided an outlook indicating a focus on cost management and operational efficiency to navigate market challenges[17]. - Celanese's total revenue for Q4 2024 was significantly impacted by lower demand across key markets, leading to a strategic review of its product offerings[17]. - The company is exploring potential acquisitions and partnerships to enhance its market position and drive future growth[17]. Other Financial Metrics - Total depreciation and amortization expense for Q4 2024 was $185 million, compared to $189 million in Q4 2023[15]. - Celanese's interest expense increased to $676 million in Q4 2024, up from $720 million in 2023[15]. - Depreciation and amortization expense totaled $728 million for 2024, with Q4 '24 at $184 million[19]. - The company incurred exit and shutdown costs totaling $236 million in Q4 2024, with a total of $2,009 million for the year[43]. - Asset impairments amounted to $1,638 million in 2024, with significant impacts in Q3 2024[43]. - The company faced legal settlements and commercial disputes costs of $8 million in Q4 2024[43]. - The company reported an adjusted effective tax rate of 9% for both 2024 and 2023[22]. - The adjusted effective tax rate remained stable at 9% for both 2024 and 2023[44].