Celanese profits up higher pricing improved volumes

Celanese profits up on higher pricing and improved volumes

12:15 PM, 17th June 2011
Celanese profits up on higher pricing and improved volumes

•Net sales were $ 1,589 million, up 14 per cent from prior year period

•Operating profit was $ 188 million versus $ 14 million in prior year period

•Net earnings were $ 142 million versus $ 14 million in prior year period

•Operating EBITDA was $ 304 million, up 26 per cent from prior year period

•Diluted EPS from continuing operations was $ 0.87 versus $ 0.06 in prior year period 

DALLAS, US: Celanese Corporation reported first quarter 2011 net sales of $ 1,589 million, a 14 per cent increase from the prior year period, driven by higher pricing across all operating segments as well as improved volumes. Higher pricing was primarily attributed to the successful recovery of increased raw material input costs while volume improvement was driven by improved global demand. Pricing and volume improvements were also driven by innovation efforts within the company’s advanced engineered materials and industrial specialties segments. 

The company reported net earnings of $ 142 million compared with $ 14 million in the same period last year. Adjusted earnings per share in the first quarter of 2011 rose 50 per cent to $ 0.96 from $ 0.64 in the prior year period.

“Celanese once again delivered on the sustainable earnings growth objectives across the portfolio of global businesses. Strong demand, combined with excellent execution of our strategies, more than offset rising material costs, resulting in solid first quarter performance,” said David Weidman, Chairman and CEO, Celanese. 

Advanced engineered materials’ profits fell 21 per cent to $ 38 million. Results were also dampened by charges of $ 12 million related to capacity expansions in Europe. In its consumer specialties segment, profits rose to $ 54 million compared with a loss of $ 30 million in the year-ago period, as higher volumes and selling prices more than offset rising raw material costs. Celanese’s industrial specialties unit reported profits up more than 100 per cent to $ 25 million, on higher volumes, more favourable product mix and higher selling prices. Acetyl intermediates profits rose to $ 112 million, compared with breakeven in the same period last year, due to higher selling prices and gains in manufacturing efficiency, including the closure of its Pardies, France facility. 

Celanese has raised its full-year earnings guidance on the expectation of “sustained global economic growth,” and now expects adjusted earnings of at least $ 4.22/share, compared with prior guidance of about $3.97/share and 2010 earnings of $ 3.37/share. Operating EBITDA is expected to be at least $ 1.3 billion, compared with $ 1.1 billion in 2010.  

“Our integrated business model continues to demonstrate the earnings growth resiliency it has successfully shown in the past, even in an environment of escalating raw material and energy costs,” said Weidman.

(C) WOC News




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