Celanese(CE) - 2024 Q1 - Quarterly Results

Financial Performance - Celanese Corporation reported an adjusted EBIT of $583 million for the latest quarter, with an adjusted EBIT margin of 22.3%[19] - Adjusted EBIT for Q1 '24 was $407 million, with an adjusted EBIT margin of 15.6%, compared to $1,753 million and 16.0% for the full year 2023[39] - Operating EBITDA for Q1 '24 was $583 million, down from $2,444 million in 2023[37] - Engineered Materials segment reported an operating profit of $89 million with a margin of 6.5% in Q1 '24, compared to 17.6% for the full year 2023[39] - Acetyl Chain segment achieved an operating profit of $254 million with a margin of 20.1% in Q1 '24, down from 22.7% in 2023[39] - Total net sales for Q1 '24 were $1,687 million, reflecting a decrease in operating margin to 8.0% from 10.1% in the previous quarter[39] - Total net sales for Q1 '24 were $2.611 billion, a slight increase from $2.569 billion in Q4 '23[62] - Total company net sales for Q1 '24 were $2,611 million, a decrease of 8% year-over-year[68] - Engineered Materials segment net sales for Q1 '24 were $1.378 billion, compared to $1.406 billion in Q4 '23, reflecting a 2% decrease[62] - Acetyl Chain segment net sales for Q1 '24 were $1.261 billion, up from $1.181 billion in Q4 '23, marking a 7% increase[62] - Engineered Materials segment net sales decreased by 15% year-over-year, driven by a volume decline of 12% and a price decrease of 2%[65] - Acetyl Chain segment net sales increased by 1% year-over-year, with a volume increase of 11% offset by a price decrease of 10%[65] Cash Flow and Capital Expenditures - Free cash flow was defined as net cash provided by operations less capital expenditures, indicating the company's liquidity position[11] - Free cash flow for Q1 '24 was $(40) million, compared to $1,320 million for the full year 2023[68] - Net cash provided by operating activities for Q1 '24 was $101 million, a significant decrease from $1,899 million in 2023[68] - Capital expenditures on property, plant, and equipment for Q1 '24 were $(137) million, down from $(568) million in 2023[68] - The company experienced a net cash used in financing activities of $(259) million in Q1 '24, a decrease from $(1,456) million in 2023[68] Earnings and Taxation - Net earnings attributable to Celanese Corporation for Q1 '24 were $121 million, compared to $1,960 million for the full year 2023[37] - Income tax provision for Q1 '24 was $33 million, contrasting with a benefit of $(790) million for the full year 2023[37] - The adjusted effective tax rate for Q1 '24 was 9%, consistent with the rate for 2023[43] - The company continues to analyze and adjust its tax rate for adjusted earnings per share based on quarterly evaluations of forecasted tax rates[36] - Adjusted earnings from continuing operations for Q1 '24 were $228 million, or $2.08 per share, compared to $976 million, or $8.92 per share in Q4 '23[41] Debt and Capital Structure - Total depreciation and amortization expense for the quarter was $221 million, compared to $706 million in the previous period[19] - The company reported total debt of $13.457 billion in Q1 '24, down from $13.684 billion in 2023[50] - The company’s net debt stood at $11.974 billion in Q1 '24, slightly up from $11.879 billion in 2023[50] - Net debt is defined as total debt less cash and cash equivalents, providing insights into the company's capital structure[33] Non-GAAP Measures and Management Insights - The company emphasized the importance of non-GAAP financial measures for assessing financial and operating results, which should not be viewed in isolation[4] - Management noted the inherent limitations of non-GAAP measures, particularly in forecasting future results due to the unpredictability of Certain Items[8] - Cash dividends received from equity investments were highlighted as supplemental information of interest to investors[13] - The company plans to update the reconciliation of the GAAP effective tax rate to the adjusted tax rate for actual results at year-end[10] - The return on invested capital (adjusted) is calculated using adjusted EBIT tax-effected, providing insights into income generation for shareholders[12] - Return on invested capital (adjusted) for the company was 9.5%[79] - The company reported a free cash flow as a percentage of net sales of (1.5)% for Q1 '24, compared to 12.1% for the full year 2023[68] - The adjusted EBIT for Q1 '24 was $1.753 billion, with an adjusted EBIT tax effect of $1.595 billion[53] Future Outlook - The company plans to maintain its focus on market expansion and new product development in the upcoming quarters[41] - The company experienced a 2% increase in total company sales volume in Q1 '24 compared to Q4 '23[63]