NYSE$CE

Celanese Corp · Q2 2020 earnings

Q2 2020 earnings · · Investor relations

Briefing

Celanese reported strong cash flow generation and solid results.

Celanese Corporation reported Q2 2020 GAAP diluted earnings per share of $0.93 and adjusted earnings per share of $1.30 on net sales of $1.2 billion. The Company exceeded expectations in mitigating the effects of COVID-19. Celanese generated operating cash flow of $379 million and free cash flow of $283 million for the second quarter.

  • Announced the agreement to monetize equity investment in the Polyplastics joint venture for cash proceeds of $1.575 billion.
  • Increased outstanding share repurchase authorization to $1.563 billion.
  • Delivered robust operating cash flow of $379 million and free cash flow of $283 million even with the significant demand decline.
  • Announced the establishment of a European Compounding Center of Excellence at the Company's Forli, Italy facility.

Headline financials

Total Revenue

$1.19B

Previous: $1.59B-25.1%
EPS (adj)

$1.30

Previous: $2.38-45.4%
Operating Cash Flow

$379M

No prior period
Capital Expenditures

-$207M

Previous: -$144M-43.8%
Free Cash Flow

-$100M

Previous: $65M-253.8%
Net Income

$107M

Previous: $209M-48.8%
Operating Income

$83M

Previous: $186M-55.4%
Gross Profit

$242M

Previous: $423M-42.8%
Cash & Equivalents

$539M

Previous: $491M+9.8%
Total Assets

$9.51B

Previous: $9.51B+0.0%
Stock-Based Comp

$10M

Previous: $13M-23.1%

Revenue & EPS history

Celanese · Revenue · Quarterly

$1.19B

Q2 2020-25.1%vs Q2 2019
Beat estimate in 14 of 16 quarters(88%)
ActualEstimate

Revenue by segment

Celanese · $1.08B total across 2 segments · Q2 2020

  • Acetyl Chain
    $662M
  • Engineered Materials
    $420M

Forward guidance

The company anticipates a modest sequential improvement in earnings next quarter with Engineered Materials leading the way with expected solid recovery in the automotive end market. The company expects to see relatively consistent results in the Acetyl Chain with a modest volume recovery offsetting incremental energy and turnaround costs.

Tailwinds

  • Demand recovery with the early third quarter order book at improved levels compared to the second quarter.
  • Anticipate a modest sequential improvement in earnings next quarter
  • Engineered Materials leading the way with expected solid recovery in the automotive end market.
  • Expect to see relatively consistent results in the Acetyl Chain
  • Modest volume recovery offsetting incremental energy and turnaround costs.

Headwinds

  • The recent surge in COVID-19 cases continues to be of concern not only in terms of the impact on the economic recovery but, more importantly, to the health and safety of our employees.
  • Continue to take all the necessary precautions to ensure the safety of our employees, which remains our highest priority
  • Focus remains on productivity
  • Focus remains on sourcing flexibility and working capital management
  • Taking intentional steps for recovery and growth into next year.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q2 2020

Historical avgQ2 2020

+0.3%

Avg return

Earnings day

-1.4%

Avg return

5 days after

+1.3%

Avg return

30 days after

56%

41 / 73 earnings

Positive

+16.4%

Q1 2015

Best reaction

-27.1%

Q3 2024

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026+0.6%-13.9%-26.1%
Q4 2025-1.6%-6.1%+2.2%
Q3 2025+14.5%+8.3%+12.5%
Q2 2025-13.1%-10.4%-1.2%
Q1 2025+10.0%+14.4%+21.8%
Q4 2024-21.5%-24.3%-18.3%
Q3 2024-27.1%-32.1%-43.2%
Q2 2024-6.8%-10.0%-7.5%
Q1 2024-0.8%-1.5%-10.0%
Q4 2023-0.5%-1.1%+11.4%
Q3 2023-3.6%-2.0%+16.5%
Q2 2023+1.1%+1.7%+2.4%
Q1 2023-2.9%-4.9%+9.1%
Q4 2022+3.1%+1.8%-11.1%
Q3 2022-2.2%-0.2%+16.1%
Q2 2022-0.5%-5.7%-3.6%
Q1 2022+4.9%+7.3%+13.7%
Q4 2021-4.0%-1.3%-11.5%
Q3 2021+1.2%+3.0%-0.5%
Q2 2021+0.9%+1.7%+1.5%
Q1 2021-0.9%-1.3%+3.5%
Q4 2020+2.3%+4.7%+16.4%
Q3 2020-3.9%-5.6%+14.4%
Q2 2020+2.1%+2.1%+8.2%
Q1 2020+4.0%+0.7%+19.4%
Q4 2019-7.5%-4.1%-16.3%
Q3 2019-1.9%+1.6%+2.1%
Q2 2019+3.0%+3.8%+5.7%
Q1 2019+6.6%+3.2%-4.8%
Q4 2018-1.0%+1.5%+6.3%
Q3 2018-0.1%+0.3%+2.7%
Q2 2018+2.1%+2.9%+4.3%
Q1 2018+6.0%+7.2%+6.7%
Q4 2017+1.1%-0.3%-5.6%
Q3 2017-2.9%-1.6%-3.9%
Q2 2017-1.4%-3.2%+0.4%
Q1 2017-0.1%-0.9%-5.9%
Q4 2016+3.9%+4.3%+6.6%
Q3 2016+9.5%+11.5%+24.2%
Q2 2016-6.4%-9.7%-6.1%
Q1 2016+0.6%
Q4 2015+3.2%
Q3 2015+2.3%
Q2 2015-4.7%
Q1 2015+16.4%
Q4 2014-7.6%
Q3 2014+8.2%
Q2 2014-2.3%
Q1 2014+2.5%
Q4 2013-4.3%
Q3 2013+5.4%
Q2 2013+0.8%
Q1 2013+11.2%
Q4 2012+2.4%
Q3 2012+2.5%
Q2 2012+4.5%
Q1 2012+1.1%
Q4 2011-1.0%
Q3 2011+9.9%
Q2 2011-0.9%
Q1 2011+0.2%
Q4 2010+0.7%
Q3 2010+1.6%
Q2 2010-1.2%
Q1 2009-5.7%
Q1 2010+0.1%
Q4 2007+0.0%
Q4 2009+0.0%
Q3 2008+3.6%
Q3 2009+3.6%
Q4 2008+0.5%
Q2 2009+0.5%
Q2 2008+0.5%

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