NYSE$CE

Celanese Corp · Q4 2019 earnings

Q4 2019 earnings · · Investor relations

Briefing

Reported fourth quarter and full year earnings and reaffirmed 2020 outlook

Celanese Corporation reported Q4 2019 GAAP diluted earnings per share of $0.35 and adjusted earnings per share of $1.99. Despite disappointing global demand, the company demonstrated resiliency and focused on controllable factors to deliver solid performance.

  • GAAP diluted earnings per share was $0.35 and adjusted earnings per share was $1.99.
  • The difference between GAAP and adjusted earnings per share for the quarter was due primarily to Certain Items including a pension mark to market adjustment, a reserve related to the European Commission investigation, and the incident at Clear Lake.
  • Repairs and restart of the Clear Lake carbon monoxide (CO) unit were completed in the middle of the fourth quarter and all production units on site are again operating at full rates.
  • Celanese completed $225 million in share repurchases in the fourth quarter with $1.2 billion remaining under the current share repurchase authorization as of year end.

Headline financials

Total Revenue

$1.43B

Previous: $1.69B-15.2%
EPS (adj)

$1.99

Previous: $2.38-16.4%
Capital Expenditures

$144M

Previous: $93M+54.8%
Free Cash Flow

$179M

Previous: $270M-33.7%
Net Income

$45M

Previous: $99M-54.5%
Operating Income

$68M

Previous: $259M-73.7%
Gross Profit

$316M

Previous: $420M-24.8%
Cash & Equivalents

$463M

Previous: $439M+5.5%
Total Assets

$9.48B

Previous: $9.31B+1.8%
Stock-Based Comp

$10M

Previous: $18M-44.4%

Revenue & EPS history

Celanese · Revenue · Quarterly

$1.43B

Q4 2019-15.2%vs Q4 2018
Beat estimate in 14 of 16 quarters(88%)
ActualEstimate

Revenue by segment

Celanese · $1.31B total across 2 segments · Q4 2019

  • Acetyl Chain
    $771M
  • Engineered Materials
    $539M

Forward guidance

The Company expects to reach 2020 adjusted earnings of $11 per share driven by factors within its control. Adjusted earnings per share in 2020 should be back half loaded as a result of cumulative returns from productivity and capital deployment as well as $70 to $80 million of turnaround expense in the Acetyl Chain and Engineered Materials occurring almost entirely in the first half.

Tailwinds

  • Cumulative returns from productivity
  • Capital deployment

Headwinds

  • Demand levels in the fourth quarter were softer than anticipated
  • No meaningful improvement in the demand landscape across 2020 versus 2019 is expected.
  • Significant incremental turnaround expenses in the year
  • $70 to $80 million of turnaround expense in the Acetyl Chain and Engineered Materials occurring almost entirely in the first half.

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 Q4 2019

Historical avgQ4 2019

+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%

Discussion

Share your read of this quarter. Sign-in carries your eToro identity.

Join the conversation

Sign in with eToro to post your read of this quarter and vote on others'.

Sign in with eToro