Celanese reports increased earning, raises full year outlook

Celanese reports increased earning, raises full year outlook

5:41 PM, 22nd July 2011
Celanese reports increased earning, raises full year outlook
David Weidman, Chairman and CEO, Celanese.

· Net sales were $1,753 million, up 16 per cent from prior year period

· Operating profit was $209 million versus $156 million in prior year period

· Operating EBITDA was $441 million, up 33 per cent from prior year period

· Diluted EPS from continuing operations was $1.29 versus $1.03 in prior year period

DALLAS, US: Celanese reported second quarter net income of $203 million, up 34 per cent from the year-ago period, on sales up 16 per cent, to $1.75 billion, primarily driven by higher pricing across all operating segments and favourable currency impacts. Higher pricing was a result of recovery of higher raw material costs and temporarily elevated industry utilization reflected in its Acetyl Intermediates segment, as well as strong demand throughout its global businesses. Margins expanded and operating profit increased to $209 million from $156 million in the same period last year. This quarter’s results included other charges and other adjustments totaling $33 million, primarily related to the company’s planned European capacity expansion and relocation in its Advanced Engineered Materials segment. Net earnings were $203 million compared with $160 million in the same period last year. Diluted earnings per share from continuing operations were $1.29 compared with $1.03 in the prior year period.

Operating EBITDA was $441 million, up 33 per cent from the second quarter of 2010. Adjusted earnings per share and operating EBITDA excluded other charges and other adjustments in both periods.


 

“Celanese delivered our best quarterly earnings ever on strong demand across all of our end markets as we aggressively mitigated the impact of higher raw material and energy costs. Our Acetyl Intermediates business also demonstrated the strength of its differentiated technology and low cost position as industry utilization was temporarily elevated, significantly contributing to this quarter’s earnings. Our innovation efforts and presence in emerging geographies are also driving growth across our diversified product portfolio, demonstrating our success in executing our strategic objectives,” said David Weidman, Chairman and CEO, Celanese.

For its Advanced Engineered Materials the net sales were $346 million compared with $282 million in the same period last year, driven by higher pricing, primarily related to improved product mix and increased value-in-use pricing, favourable currency impacts and revenue related to the company's recent acquisition. Operating EBITDA, which excluded the other charges and other adjustments, was $107 million compared with $98 million in the same period last year.

The consumer specialties continued to deliver sustained earnings, reflecting the company’s leading global positions and strong strategic affiliate performance. Net sales for the second quarter of 2011 were $291 million, unchanged from the prior year period, as increased pricing and favourable currency offset lower volumes. Operating EBITDA, was $147 million compared with $149 million in the prior year period. 

The industrial specialties continued to realize benefits from its innovation efforts and increased global demand, delivering improved results and expanded margins in the quarter. Net sales in the quarter were $329 million compared with $269 million in the same period last year, primarily driven by higher pricing and favourable currency impacts. Operating EBITDA was $40 million compared with $26 million in the prior year period.

In the acetyl intermediates net sales for the second quarter of 2011 increased to $914 million from $782 million in the prior year period, driven by higher pricing across major acetyl derivative product lines in all regions and favourable currency impacts. Operating EBITDA was $177 million compared with $96 million in the second quarter of 2010.

(C) WOC News

 

 

 

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