Celanese Corporation Reports First Quarter Earnings; Reaffirms 2017 Outlook

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DALLAS–(BUSINESS WIRE)–
Celanese Corporation (NYSE: CE), a global technology and specialty
materials company, today reported first quarter 2017 GAAP diluted
earnings per share of $1.30 and adjusted earnings per share of $1.81.
The core operating models and company-wide productivity initiatives
drove strong performance in the quarter. Advanced Engineered Materials
expanded the opportunity pipeline and commercialized high value-add
customer solutions across product lines while the Acetyl Chain exercised
system-wide optionality, positioning Celanese for growth through the
year. The primary difference between GAAP and non-GAAP results is from
charges related to the Nanjing, China ethanol unit.

   

First Quarter 2017 Financial Highlights:

 
Three Months Ended
March 31,
2017     2016
(unaudited)
(In $ millions)
Operating Profit (Loss)
Advanced Engineered Materials 98 88
Consumer Specialties 68   78  
Total Materials Solutions 166   166  
Industrial Specialties 25 31
Acetyl Intermediates 27 114
Eliminations    
Total Acetyl Chain 52   145  
Other Activities (26 ) (24 )
Total 192   287  
   
Three Months Ended
March 31,
2017     2016
(unaudited)
(In $ millions, except per share data)
Net Earnings (Loss) 184 259
 
Adjusted EBIT(1)(2)
Advanced Engineered Materials 143 120
Consumer Specialties   100     106  
Total Materials Solutions   243     226  
Industrial Specialties 25 33
Acetyl Intermediates 83 115
Eliminations        
Total Acetyl Chain   108     148  
Other Activities   (18 )   (16 )
Total   333     358  
 
Equity Earnings, Cost-Dividend Income, Other Income (Expense)
Advanced Engineered Materials 42 31
Consumer Specialties   30     28  
Total Materials Solutions   72     59  
 
Operating EBITDA(1) 404 431
Diluted EPS – continuing operations $ 1.30 $ 1.73
Diluted EPS – total $ 1.30 $ 1.73
Adjusted EPS(1) $ 1.81 $ 1.83
 
Net cash provided by (used in) investing activities (64 ) (75 )
Net cash provided by (used in) financing activities (270 ) (473 )
Net cash provided by (used in) operating activities 192 287
Free cash flow(1) 126 217
______________________________

(1)

  See “Non-US GAAP Financial Measures” below.
 

(2)

The company’s discussion of adjusted earnings includes use of
terms such as “segment income” and “core income.” Those non-GAAP
terms are defined below and reconciled in our Non-US GAAP
Financial Measures and Supplemental Information document below.

 

First Quarter 2017 Highlights:

  • Generated highest-ever organic volumes in Advanced Engineered
    Materials, a double-digit increase over the prior year, by advancing
    solutions growth across product lines.
  • Closed a record 513 projects in the first quarter of 2017, a 70
    percent increase from the same period last year, in engineered
    materials (Advanced Engineered Materials excluding affiliates). On
    pace to commercialize 1,900 projects for the year, 37 percent higher
    than 2016.
  • Signed a 15-year agreement with Praxair to buy high-purity carbon
    monoxide from a new, state-of-the-art facility, which will enhance the
    flexibility of critical raw material supply and solidify future growth
    opportunities for Celanese.
  • Named a 2017 ENERGY STAR Partner of the Year – Energy Management Award
    winner for outstanding efforts to improve the energy efficiency of
    Celanese’s buildings and facilities.
  • Announced the election of Bennie W. Fowler, Group VP, Global Quality
    and New Model Launch, Ford Motor Company, and David C. Parry, former
    Vice Chairman of Illinois Tool Works, Inc., to the Board of Directors.

“This quarter’s success reflects ongoing performance growth in our
commercial models, growth in global markets, and our ability to identify
and realize unique market opportunities,” said Mark Rohr, chairman and
chief executive officer. “Good cash flow in the first quarter supported
our strong program of returning cash to shareholders. We repurchased 1.5
million shares and distributed $51 million in dividends, returning a
total of $179 million cash.”

First Quarter 2017 Business Segment Overview

Materials Solutions

Materials Solutions’ GAAP operating income was consistent year over year
and core income was 8 percent higher for the first quarter. Advanced
Engineered Materials generated its second highest ever GAAP operating
profit of $98 million and the highest ever segment income of $143
million. Volume was a record high driven by the commercialization of new
pipeline opportunities, growth in Asia, and the SO.F.TER. integration.
Including SO.F.TER., 513 new projects were commercialized in the
quarter, a 70 percent increase over the first quarter of last year. The
record number of projects demonstrates how the pipeline model has
successfully evolved to manage the growing complexity of a project-based
business model.

Tow volume and pricing were lower than the same quarter in 2016 mainly
due to lower industry capacity utilization rates. The impact of lower
tow volume and pricing more than offset productivity improvements and
higher flake volume in the quarter.

Affiliate earnings in Materials Solutions were $13 million higher than
the same quarter in 2016 primarily due to strong performance at the
Fortron affiliate and solid demand at the Advanced Engineered Materials’
Asian affiliates.

Acetyl Chain

The Acetyl Chain’s leadership positions and global presence helped to
manage through a tough operating environment and increase price year
over year across product lines. Volume was lower versus the same quarter
last year as the first quarter of 2016 benefited from incremental volume
due to overlapping contracts which did not repeat in 2017. Lower volume
was also driven by a choice to sell less VAM in China due to competitive
dynamics. Sequentially, GAAP operating margin was lower in the first
quarter of 2017 mainly due to charges related to the Nanjing, China
ethanol facility, but core income margin expanded sequentially driven by
the discipline and flexibility in the chain. Industry conditions
improved each month through the first quarter, staging the business for
increased profitability going forward.

Cash Flow

The company recorded operating cash flow of $192 million and generated
$126 million of free cash flow. Capital expenditures in the quarter were
$62 million. An aggregate of $179 million of cash was returned to
shareholders in the first quarter of 2017 with $128 million in share
buy-backs and $51 million in dividends. The company is on pace to meet
its $500 million share buyback commitment for 2017.

Outlook

“The first quarter of 2017 was another strong quarter for Celanese. Our
differentiated commercial approach and operating discipline in both
businesses has allowed us to create value for customers and
shareholders. Our Advanced Engineered Materials opportunity pipeline,
enhanced by SO.F.TER. and Nilit integrations, will continue to drive
growth in 2017 and offset the decline in tow earnings. The Acetyl Chain
is well-positioned to benefit from a volatile raw materials environment
and the current industry operating backdrop to improve profits as the
year progresses. While we anticipate challenges in 2017, we have plans
in place to offset these headwinds and deliver growth in adjusted
earnings per share of 8-11 percent,” said Rohr.

We are unable to reconcile forecasted adjusted earnings per share growth
to US GAAP diluted earnings per share without unreasonable efforts
because a forecast of Certain Items, such as mark-to-market pension
gains/losses, is not practical.

The company’s earnings presentation and prepared remarks related to the
first quarter results will be posted on its website at www.celanese.com
under Investor Relations/Events and Presentations after market close on
April 17, 2017. Information about Non-US GAAP measures is included in a
Non-US GAAP Financial Measures and Supplemental Information document
posted on the website and available at the link below. See “Non-GAAP
Financial Measures” below.

Celanese Corporation is a global technology leader in the production
of differentiated chemistry solutions and specialty materials used in
most major industries and consumer applications. Our two complementary
business cores, Acetyl Chain and Materials Solutions, use the full
breadth of Celanese’s global chemistry, technology and business
expertise to create value for our customers and the corporation. As we
partner with our customers to solve their most critical business needs,
we strive to make a positive impact on our communities and the world
through The Celanese Foundation. Based in Dallas, Celanese employs
approximately 7,300 employees worldwide and had 2016 net sales of $5.4
billion. For more information about Celanese Corporation and its product
offerings, visit
www.celanese.com
or our blog at
www.celaneseblog.com.

Forward-Looking Statements

This release may contain “forward-looking statements,” which include
information concerning the company’s plans, objectives, goals,
strategies, future revenues or performance, capital expenditures,
financing needs and other information that is not historical
information. All forward-looking statements are based upon current
expectations and beliefs and various assumptions, including the
announced stock purchase transaction. There can be no assurance that the
company will realize these expectations or that these beliefs will prove
correct.
There are a number of risks and uncertainties that could
cause actual results to differ materially from the results expressed or
implied in the forward-looking statements contained in this release,
including with respect to the acquisitions. These risks and
uncertainties include, among other things: changes in general economic,
business, political and regulatory conditions in the countries or
regions in which we operate; the length and depth of product and
industry business cycles, particularly in the automotive, electrical,
textiles, electronics and construction industries; changes in the price
and availability of raw materials, particularly changes in the demand
for, supply of, and market prices of ethylene, methanol, natural gas,
wood pulp and fuel oil and the prices for electricity and other energy
sources; the ability to pass increases in raw material prices on to
customers or otherwise improve margins through price increases; the
ability to maintain plant utilization rates and to implement planned
capacity additions and expansions; the ability to reduce or maintain
their current levels of production costs and to improve productivity by
implementing technological improvements to existing plants; increased
price competition and the
introduction of competing products by
other companies; market acceptance of our technology; the ability to
obtain governmental approvals and to construct facilities on terms and
schedules acceptable to the company; changes in the degree of
intellectual property and other legal protection afforded to our
products or technologies, or the theft of such intellectual property;
compliance and other costs and potential disruption or interruption of
production or operations due to accidents, interruptions in sources of
raw materials, cyber security incidents, terrorism or political unrest
or other unforeseen events or delays in construction or operation of
facilities, including as a result of geopolitical conditions, the
occurrence of acts of war or terrorist incidents or as a result of
weather or natural disasters; potential liability for remedial actions
and increased costs under existing or future environmental regulations,
including those relating to climate change; potential liability
resulting from pending or future litigation, or from changes in the
laws, regulations or policies of governments or other governmental
activities in the countries in which we operate; changes in currency
exchange rates and interest rates; our level of indebtedness, which
could diminish our ability to raise additional capital to fund
operations or limit our ability to react to changes in the economy or
the chemicals industry; and various other factors discussed from time to
time in the company’s filings with the Securities and Exchange
Commission. Any forward-looking statement speaks only as of the date on
which it is made, and the company undertakes no obligation to update any
forward-looking statements to reflect events or circumstances after the
date on which it is made or to reflect the occurrence of anticipated or
unanticipated events or circumstances.

Non-GAAP Financial Measures

Presentation

This document presents the Company’s business segments in two
subtotals, reflecting our two cores, the Acetyl Chain and Materials
Solutions, based on similarities among customers, business models and
technical processes. As described in the Company’s annual report on Form
10-K and quarterly reports on Form 10-Q, the Acetyl Chain includes the
Company’s Acetyl Intermediates segment and the Industrial Specialties
segment. Materials Solutions includes the Company’s Advanced Engineered
Materials segment and the Consumer Specialties segment.

Use of Non-US GAAP Financial Information

This release uses the following Non-US GAAP measures: adjusted EBIT,
adjusted EBIT margin, operating EBITDA, adjusted earnings per share and
free cash flow. These measures are not recognized in accordance with US
GAAP and should not be viewed as an alternative to US GAAP measures of
performance or liquidity. The most directly comparable financial measure
presented in accordance with US GAAP in our consolidated financial
statements for adjusted EBIT and operating EBITDA is net earnings (loss)
attributable to Celanese Corporation; for adjusted EBIT margin is
operating margin; for adjusted earnings per share is earnings (loss)
from continuing operations attributable to Celanese Corporation per
common share-diluted; and for free cash flow is net cash provided by
(used in) operations.

Definitions of Non-US GAAP Financial Measures

  • Adjusted EBIT is a performance measure used by the Company and is
    defined by the Company as net earnings (loss) attributable to Celanese
    Corporation, plus (earnings) loss from discontinued operations, less
    interest income, plus interest expense, plus refinancing expense and
    taxes, and further adjusted for Certain Items (refer to Table 8 of our
    Non-US GAAP Financial Measures and Supplemental Information document).
    We may provide guidance on adjusted EBIT but are unable to reconcile
    forecasted adjusted EBIT to a US GAAP financial measure without
    unreasonable efforts because a forecast of Certain Items, such as
    mark-to-market pension gains and losses, which may be significant, is
    not practical. Adjusted EBIT margin is defined by the Company as
    adjusted EBIT divided by net sales.
  • Adjusted EBIT by core (i.e. Acetyl Chain and/or Materials
    Solutions) may also be referred to by management as core income.
    Adjusted EBIT margin by core may also be referred to by management as
    core income margin. Adjusted EBIT by business segment may also be
    referred to by management as segment income. Adjusted EBIT margin by
    business segment may also be referred to by management as segment
    income margin.
  • Operating EBITDA is a performance measure used by the Company and
    is defined by the Company as net earnings (loss) attributable to
    Celanese Corporation, plus (earnings) loss from discontinued
    operations, less interest income, plus interest expense, plus
    refinancing expense, taxes and depreciation and amortization, and
    further adjusted for Certain Items, which Certain Items include
    accelerated depreciation and amortization expense. Operating EBITDA is
    equal to adjusted EBIT plus depreciation and amortization.
  • Adjusted earnings per share is a performance measure used by the
    Company and is defined by the Company as earnings (loss) from
    continuing operations attributable to Celanese Corporation, adjusted
    for income tax (provision) benefit, Certain Items, and refinancing and
    related expenses, divided by the number of basic common shares and
    dilutive restricted stock units and stock options calculated using the
    treasury method. We may provide guidance on adjusted earnings per
    share but are unable to reconcile forecasted adjusted earnings per
    share to a US GAAP financial measure without unreasonable efforts
    because a forecast of Certain Items, such as mark-to-market pension
    gains and losses, which may be significant, is not practical.

    Note:
    The income tax expense (benefit) on Certain Items (“Non-GAAP
    adjustments”) is determined using the applicable rates in the taxing
    jurisdictions in which the Non-GAAP adjustments occurred and includes
    both current and deferred income tax expense (benefit). The income tax
    rate used for adjusted earnings per share approximates the midpoint in
    a range of forecasted tax rates for the year. This range may include
    certain partial or full-year forecasted tax opportunities and related
    costs, where applicable, and specifically excludes changes in
    uncertain tax positions, discrete recognition of GAAP items on a
    quarterly basis, other pre-tax items adjusted out of our GAAP earnings
    for adjusted earnings per share purposes and changes in management’s
    assessments regarding the ability to realize deferred tax assets for
    GAAP. In determining the adjusted earnings per share tax rate, we
    reflect the impact of foreign tax credits when utilized, or expected
    to be utilized, absent discrete events impacting the timing of foreign
    tax credit utilization. We analyze this rate quarterly and adjust it
    if there is a material change in the range of forecasted tax rates; an
    updated forecast would not necessarily result in a change to our tax
    rate used for adjusted earnings per share. The adjusted tax rate is an
    estimate and may differ from the actual tax rate used for GAAP
    reporting in any given reporting period. Table 3a of our Non-US GAAP
    Financial Measures and Supplemental Information document summarizes
    the reconciliation of our estimated GAAP effective tax rate to the
    adjusted tax rate. The estimated GAAP rate excludes discrete
    recognition of GAAP items due to our inability to forecast such items.
    As part of the year-end reconciliation, we will update the
    reconciliation of the GAAP effective tax rate to the adjusted tax rate
    for actual results.

  • Free cash flow is a liquidity measure used by the Company and is
    defined by the Company as cash flow from operations, less capital
    expenditures on property, plant and equipment, and adjusted for
    capital contributions from or distributions to Mitsui & Co., Ltd.
    (“Mitsui”) related to our methanol joint venture, Fairway Methanol LLC
    (“Fairway”).

Reconciliation of Non-US GAAP Financial Measures

Reconciliations of the Non-US GAAP financial measures used in this
press release to the comparable US GAAP financial measure, together with
information about the purposes and uses of Non-US GAAP financial
measures, are included in our Non-US GAAP Financial Measures and
Supplemental Information document filed as an exhibit to our Current
Report on Form 8-K filed with the SEC on or about April 17, 2017 and
also available on our website at
www.celanese.com
under Financial Information, Non-GAAP Financial Measures, or at this
link:
http://investors.celanese.com/interactive/lookandfeel/4103411/Non-GAAP.PDF.

Results Unaudited

The results in this document, together with the adjustments made to
present the results on a comparable basis, have not been audited and are
based on internal financial data furnished to management. Quarterly
results should not be taken as an indication of the results of
operations to be reported for any subsequent period or for the full
fiscal year.

Supplemental Information

Additional information about our prior period performance is included
in our Quarterly Reports on Form 10-Q and in our Non-US GAAP Financial
Measures and Supplemental Information document.

   
 

Consolidated Statements of Operations – Unaudited

 
Three Months Ended
March 31,
2017     2016
(In $ millions, except share and per share data)
Net sales 1,471 1,404
Cost of sales (1,119 ) (1,014 )
Gross profit 352 390
Selling, general and administrative expenses (83 ) (80 )
Amortization of intangible assets (4 ) (2 )
Research and development expenses (17 ) (19 )
Other (charges) gains, net (55 ) (5 )
Foreign exchange gain (loss), net 3
Gain (loss) on disposition of businesses and asset, net (1 )  
Operating profit (loss) 192 287
Equity in net earnings (loss) of affiliates 47 38
Interest expense (29 ) (33 )
Refinancing expense (2 )
Interest income 1
Dividend income – cost investments 29 27
Other income (expense), net 1    
Earnings (loss) from continuing operations before tax 240 318
Income tax (provision) benefit (56 ) (60 )
Earnings (loss) from continuing operations 184   258  
Earnings (loss) from operation of discontinued operations 1
Income tax (provision) benefit from discontinued operations    
Earnings (loss) from discontinued operations   1  
Net earnings (loss) 184 259
Net (earnings) loss attributable to noncontrolling interests (1 ) (2 )
Net earnings (loss) attributable to Celanese Corporation 183   257  
Amounts attributable to Celanese Corporation
Earnings (loss) from continuing operations 183 256
Earnings (loss) from discontinued operations   1  
Net earnings (loss) 183   257  
Earnings (loss) per common share – basic
Continuing operations 1.30 1.74
Discontinued operations    
Net earnings (loss) – basic 1.30   1.74  
Earnings (loss) per common share – diluted
Continuing operations 1.30 1.73
Discontinued operations    
Net earnings (loss) – diluted 1.30   1.73  
Weighted average shares (in millions)
Basic 140.6 147.4
Diluted 141.0 148.1
       
 

Consolidated Balance Sheets – Unaudited

 

As of
March 31,
2017

As of
December 31,
2016

(In $ millions)
ASSETS
Current Assets
Cash and cash equivalents 501 638
Trade receivables – third party and affiliates, net 886 801
Non-trade receivables, net 216 223
Inventories 717 720
Marketable securities, at fair value 31 30
Other assets 38   60  
Total current assets 2,389   2,472  
Investments in affiliates 874 852
Property, plant and equipment, net 3,571 3,577
Deferred income taxes 154 159
Other assets 308 307
Goodwill 800 796
Intangible assets, net 192   194  
Total assets 8,288   8,357  
LIABILITIES AND EQUITY
Current Liabilities
Short-term borrowings and current installments of long-term debt –
third party and affiliates
107 118
Trade payables – third party and affiliates 615 625
Other liabilities 262 322
Income taxes payable 31   12  
Total current liabilities 1,015   1,077  
Long-term debt, net of unamortized deferred financing costs 2,851 2,890
Deferred income taxes 140 130
Uncertain tax positions 138 131
Benefit obligations 866 893
Other liabilities 237 215
Commitments and Contingencies
Stockholders’ Equity
Preferred stock
Common stock
Treasury stock, at cost (1,662 ) (1,531 )
Additional paid-in capital 149 157
Retained earnings 4,451 4,320
Accumulated other comprehensive income (loss), net (327 ) (358 )
Total Celanese Corporation stockholders’ equity 2,611 2,588
Noncontrolling interests 430   433  
Total equity 3,041   3,021  
Total liabilities and equity 8,288   8,357  
 

Non-US GAAP Financial Measures and Supplemental
Information

April 17, 2017

In this document, the terms the “Company,” “we” and “our” refer to
Celanese Corporation and its subsidiaries on a consolidated basis.

Purpose

The purpose of this document is to provide information of interest to
investors, analysts and other parties including supplemental financial
information and reconciliations and other information concerning our use
of non-US GAAP financial measures. This document is updated quarterly.

Presentation

This document presents the Company’s business segments in two
subtotals, reflecting our two cores, the Acetyl Chain and Materials
Solutions, based on similarities among customers, business models and
technical processes. As described in the Company’s annual report on Form
10-K and quarterly reports on Form 10-Q, the Acetyl Chain includes the
Company’s Acetyl Intermediates segment and the Industrial Specialties
segment. Materials Solutions includes the Company’s Advanced Engineered
Materials segment and the Consumer Specialties segment.

Use of Non-US GAAP Financial Measures

From time to time, management may publicly disclose certain numerical
“non-GAAP financial measures” in the course of our earnings releases,
financial presentations, earnings conference calls, investor and analyst
meetings and otherwise. For these purposes, the Securities and Exchange
Commission (“SEC”) defines a “non-GAAP financial measure” as a numerical
measure of historical or future financial performance, financial
position or cash flows that excludes amounts, or is subject to
adjustments that effectively exclude amounts, included in the most
directly comparable measure calculated and presented in accordance with
US GAAP, and vice versa for measures that include amounts, or are
subject to adjustments that effectively include amounts, that are
excluded from the most directly comparable US GAAP measure so calculated
and presented. For these purposes, “GAAP” refers to generally accepted
accounting principles in the United States.

Non-GAAP financial measures disclosed by management are provided as
additional information to investors, analysts and other parties because
the Company believes them to be important supplemental measures for
assessing our financial and operating results and as a means to evaluate
our financial condition and period-to-period comparisons. These non-GAAP
financial measures should be viewed as supplemental to, and should not
be considered in isolation or as alternatives to, net earnings (loss),
operating profit (loss), operating margin, cash flow from operating
activities (together with cash flow from investing and financing
activities), earnings per share or any other US GAAP financial measure.
These non-GAAP financial measures should be considered within the
context of our complete audited and unaudited financial results for the
given period, which are available on the Investor Relations/Financial
Information/SEC Filings page of our website,
www.celanese.com.
The definition and method of calculation of the non-GAAP financial
measures used herein may be different from other companies’ methods for
calculating measures with the same or similar titles. Investors,
analysts and other parties should understand how another company
calculates such non-GAAP financial measures before comparing the other
company’s non-GAAP financial measures to any of our own. These non-GAAP
financial measures may not be indicative of the historical operating
results of the Company nor are they intended to be predictive or
projections of future results.

Pursuant to the requirements of SEC Regulation G, whenever we refer
to a non-GAAP financial measure, we will also present in this document,
in the presentation itself or on a Form 8-K in connection with the
presentation on the Investor Relations/Financial Information/Non-GAAP
Financial Measures page of our website,
www.celanese.com,
to the extent practicable, the most directly comparable financial
measure calculated and presented in accordance with GAAP, along with a
reconciliation of the differences between the non-GAAP financial measure
we reference and such comparable GAAP financial measure.

This document includes definitions and reconciliations of non-GAAP
financial measures used from time to time by the Company.

Specific Measures Used

This document provides information about the following non-GAAP
measures: adjusted EBIT, adjusted EBIT margin, operating EBITDA,
operating EBITDA margin, operating profit (loss) attributable to
Celanese Corporation, adjusted earnings per share, net debt, free cash
flow and return on invested capital (adjusted). The most directly
comparable financial measure presented in accordance with US GAAP in our
consolidated financial statements for adjusted EBIT and operating EBITDA
is net earnings (loss) attributable to Celanese Corporation; for
adjusted EBIT margin and operating EBITDA margin is operating margin;
for operating profit (loss) attributable to Celanese Corporation is
operating profit (loss); for adjusted earnings per share is earnings
(loss) from continuing operations attributable to Celanese Corporation
per common share-diluted; for net debt is total debt; for free cash flow
is net cash provided by (used in) operations; and for return on invested
capital (adjusted) is net earnings (loss) attributable to Celanese
Corporation divided by the sum of the average of beginning and end of
the year short- and long-term debt and Celanese Corporation
stockholders’ equity.

Definitions

  • Adjusted EBIT is a performance measure used by the Company and is
    defined by the Company as net earnings (loss) attributable to Celanese
    Corporation, plus (earnings) loss from discontinued operations, less
    interest income, plus interest expense, plus refinancing expense and
    taxes, and further adjusted for Certain Items (refer to Table 8). We
    believe that adjusted EBIT provides transparent and useful information
    to management, investors, analysts and other parties in evaluating and
    assessing our primary operating results from period-to-period after
    removing the impact of unusual, non-operational or
    restructuring-related activities that affect comparability. Our
    management recognizes that adjusted EBIT has inherent limitations
    because of the excluded items. Adjusted EBIT is one of the measures
    management uses for planning and budgeting, monitoring and evaluating
    financial and operating results and as a performance metric in the
    Company’s incentive compensation plan. We may provide guidance on
    adjusted EBIT but are unable to reconcile forecasted adjusted EBIT to
    a US GAAP financial measure without unreasonable efforts because a
    forecast of Certain Items, such as mark-to-market pension gains and
    losses, which may be significant, is not practical. Adjusted EBIT
    margin is defined by the Company as adjusted EBIT divided by net
    sales. Adjusted EBIT margin has the same uses and limitations as
    Adjusted EBIT.
  • Adjusted EBIT by core (i.e. Acetyl Chain and/or Materials
    Solutions) may also be referred to by management as core income.
    Adjusted EBIT margin by core may also be referred to by management as
    core income margin. Adjusted EBIT by business segment may also be
    referred to by management as segment income. Adjusted EBIT margin by
    business segment may also be referred to by management as segment
    income margin.
  • Operating EBITDA is a performance measure used by the Company and
    is defined by the Company as net earnings (loss) attributable to
    Celanese Corporation, plus (earnings) loss from discontinued
    operations, less interest income, plus interest expense, plus
    refinancing expense, taxes and depreciation and amortization, and
    further adjusted for Certain Items, which Certain Items include
    accelerated depreciation and amortization expense. Operating EBITDA is
    equal to adjusted EBIT plus depreciation and amortization. We believe
    that Operating EBITDA provides transparent and useful information to
    investors, analysts and other parties in evaluating our operating
    performance relative to our peer companies. Operating EBITDA margin is
    defined by the Company as Operating EBITDA divided by net sales.
    Operating EBITDA margin has the same uses and limitations as Operating
    EBITDA.
  • Operating profit (loss) attributable to Celanese Corporation is
    defined by the Company as operating profit (loss), less earnings
    (loss) attributable to noncontrolling interests (“NCI”). We believe
    that operating profit (loss) attributable to Celanese Corporation
    provides transparent and useful information to management, investors,
    analysts and other parties in evaluating our core operational
    performance. Operating margin attributable to Celanese Corporation is
    defined by the Company as operating profit (loss) attributable to
    Celanese Corporation divided by net sales. Operating margin
    attributable to Celanese Corporation has the same uses and limitations
    as Operating profit (loss) attributable to Celanese Corporation.
  • Adjusted earnings per share is a performance measure used by the
    Company and is defined by the Company as earnings (loss) from
    continuing operations attributable to Celanese Corporation, adjusted
    for income tax (provision) benefit, Certain Items, and refinancing and
    related expenses, divided by the number of basic common shares and
    dilutive restricted stock units and stock options calculated using the
    treasury method. We believe that adjusted earnings per share provides
    transparent and useful information to management, investors, analysts
    and other parties in evaluating and assessing our primary operating
    results from period-to-period after removing the impact of the above
    stated items that affect comparability and as a performance metric in
    the Company’s incentive compensation plan. We may provide guidance on
    adjusted earnings per share but are unable to reconcile forecasted
    adjusted earnings per share to a GAAP financial measure without
    unreasonable efforts because a forecast of Certain Items, such as
    mark-to-market pension gains and losses, which may be significant, is
    not practical.

    Note: The income tax expense
    (benefit) on Certain Items (“Non-GAAP adjustments”) is determined
    using the applicable rates in the taxing jurisdictions in which the
    Non-GAAP adjustments occurred and includes both current and deferred
    income tax expense (benefit). The income tax rate used for adjusted
    earnings per share approximates the midpoint in a range of forecasted
    tax rates for the year. This range may include certain partial or
    full-year forecasted tax opportunities and related costs, where
    applicable, and specifically excludes changes in uncertain tax
    positions, discrete recognition of GAAP items on a quarterly basis,
    other pre-tax items adjusted out of our GAAP earnings for adjusted
    earnings per share purposes and changes in management’s assessments
    regarding the ability to realize deferred tax assets for GAAP. In
    determining the adjusted earnings per share tax rate, we reflect the
    impact of foreign tax credits when utilized, or expected to be
    utilized, absent discrete events impacting the timing of foreign tax
    credit utilization. We analyze this rate quarterly and adjust it if
    there is a material change in the range of forecasted tax rates; an
    updated forecast would not necessarily result in a change to our tax
    rate used for adjusted earnings per share. The adjusted tax rate is an
    estimate and may differ from the actual tax rate used for GAAP
    reporting in any given reporting period. Table 3a summarizes the
    reconciliation of our estimated GAAP effective tax rate to the
    adjusted tax rate. The estimated GAAP rate excludes discrete
    recognition of GAAP items due to our inability to forecast such items.
    As part of the year-end reconciliation, we will update the
    reconciliation of the GAAP effective tax rate to the adjusted tax rate
    for actual results.

  • Free cash flow is a liquidity measure used by the Company and is
    defined by the Company as net cash provided by (used in) operations,
    less capital expenditures on property, plant and equipment, and
    adjusted for capital contributions from or distributions to Mitsui &
    Co., Ltd. (“Mitsui”) related to our methanol joint venture, Fairway
    Methanol LLC (“Fairway”). We believe that free cash flow provides
    useful information to management, investors, analysts and other
    parties in evaluating the Company’s liquidity and credit quality
    assessment because it provides an indication of the long-term cash
    generating ability of our business. Although we use free cash flow as
    a measure to assess the liquidity generated by our business, the use
    of free cash flow has important limitations, including that free cash
    flow does not reflect the cash requirements necessary to service our
    indebtedness, lease obligations, unconditional purchase obligations or
    pension and postretirement funding obligations.
  • Net debt is defined by the Company as total debt less cash and cash
    equivalents. We believe that net debt provides useful information to
    management, investors, analysts and other parties in evaluating
    changes to the Company’s capital structure and credit quality
    assessment.
  • Return on invested capital (adjusted) is defined by the Company as
    adjusted EBIT, tax effected using the adjusted tax rate, divided by
    the sum of the average of beginning and end of the year short- and
    long-term debt and Celanese Corporation stockholders’ equity. We
    believe that return on invested capital (adjusted) provides useful
    information to management, investors, analysts and other parties in
    order to assess our income generation from the point of view of our
    stockholders and creditors who provide us with capital in the form of
    equity and debt and whether capital invested in the Company yields
    competitive returns. In addition, achievement of certain predetermined
    targets relating to return on invested capital (adjusted) is one of
    the factors we consider in determining the amount of performance-based
    compensation received by our management.

Supplemental Information

Supplemental Information we believe to be of interest to investors,
analysts and other parties includes the following:

  • Net sales for Materials Solutions, the Acetyl Chain and each of our
    business segments and the percentage increase or decrease in net sales
    attributable to price, volume, currency and other factors for
    Materials Solutions, the Acetyl Chain and each of our business
    segments.
  • Cash dividends received from our equity and cost investments.
  • For those consolidated ventures in which the Company owns or is
    exposed to less than 100% of the economics, the outside stockholders’
    interests are shown as NCI. Beginning in 2014, this includes Fairway
    for which the Company’s ownership percentage is 50%. Amounts referred
    to as “attributable to Celanese Corporation” are net of any applicable
    NCI.

Results Unaudited

The results in this document, together with the adjustments made to
present the results on a comparable basis, have not been audited and are
based on internal financial data furnished to management. Quarterly
results should not be taken as an indication of the results of
operations to be reported for any subsequent period or for the full
fiscal year.

                         
Table 1
Adjusted EBIT and Operating EBITDA – Reconciliation of Non-GAAP
Measures – Unaudited
 
Q1 ’17 2016 Q4 ’16 Q3 ’16 Q2 ’16 Q1 ’16
(In $ millions)
Net earnings (loss) attributable to Celanese Corporation 183 900 160 262 221 257
(Earnings) loss from discontinued operations 2 3 (1 )
Interest income (2 ) (1 ) (1 )
Interest expense 29 120 29 28 30 33
Refinancing expense 6 4 2
Income tax provision (benefit) 56 122 (5 ) 15 52 60

Certain Items attributable to Celanese Corporation (Table 8)

65 130   106   7 9 8  
Adjusted EBIT 333 1,278 289 319 312 358
Depreciation and amortization expense(1) 71 288   71   71 73 73  
Operating EBITDA 404 1,566   360   390 385 431  
 
 
Q1 ’17 2016 Q4 ’16 Q3 ’16 Q2 ’16 Q1 ’16
(In $ millions)
Advanced Engineered Materials
Consumer Specialties 1 1
Industrial Specialties
Acetyl Intermediates
Other Activities(2) 1   1    
Accelerated depreciation and amortization expense 2 1 1
Depreciation and amortization expense(1) 71 288   71   71 73 73  
Total depreciation and amortization expense 71 290   72   72 73 73  

______________________________

(1)

  Excludes accelerated depreciation and amortization expense as
detailed in the table above, which amounts are included in Certain
Items above.

(2)

Other Activities includes corporate Selling, general and
administrative (“SG&A”) expenses, the results of captive insurance
companies and certain components of net periodic benefit cost
(interest cost, expected return on plan assets and net actuarial
gains and losses).
 
                         

Table 2 – Supplemental Segment Data and Reconciliation of
Segment Adjusted EBIT and Operating EBITDA – Non-GAAP Measures –
Unaudited

 
Q1 ’17 2016 Q4 ’16 Q3 ’16 Q2 ’16 Q1 ’16
(In $ millions, except percentages)
Operating Profit (Loss) / Operating Margin                        
Materials Solutions 166 23.5 % 652 27.5 % 163 27.7 % 161 27.3 % 162 27.0 % 166 27.9 %
Acetyl Chain(1) 52 6.5 % 446 14.2 % 86 11.5 % 108 14.2 % 107 13.7 % 145 17.3 %
Other Activities(2) (26 ) (205 ) (132 ) (23 ) (26 ) (24 )
Total 192   13.1 % 893   16.6 % 117   8.9 % 246   18.6 % 243   18.0 % 287   20.4 %
Less: Net Earnings (Loss) Attributable to NCI(1) 1   6   1   1   2   2  
Operating Profit (Loss) Attributable to Celanese Corporation 191   13.0 % 887   16.5 % 116   8.8 % 245   18.5 % 241   17.8 % 285   20.3 %
Operating Profit (Loss) / Operating Margin Attributable to
Celanese Corporation
Advanced Engineered Materials 98 20.1 % 350 24.2 % 87 23.9 % 93 25.5 % 82 22.5 % 88 25.1 %
Consumer Specialties 68   31.2 % 302   32.5 % 76   33.8 % 68   30.2 % 80   34.0 % 78   32.0 %
Total Materials Solutions 166   23.5 % 652   27.5 % 163   27.7 % 161   27.3 % 162   27.0 % 166   27.9 %
Industrial Specialties 25 10.2 % 105 10.7 % 20 9.1 % 25 10.2 % 29 11.1 % 31 12.3 %
Acetyl Intermediates(1) 26 4.2 % 334 13.7 % 65 10.9 % 82 13.9 % 75 12.7 % 112 16.9 %
Eliminations   1       1    
Total Acetyl Chain 51   6.4 % 440   14.0 % 85   11.3 % 107   14.0 % 105   13.5 % 143   17.0 %
Other Activities(2) (26 ) (205 ) (132 ) (23 ) (26 ) (24 )
Total 191   13.0 % 887   16.5 % 116   8.8 % 245   18.5 % 241   17.8 % 285   20.3 %
Equity Earnings, Cost-Dividend Income, Other Income (Expense)
Attributable to Celanese Corporation
Advanced Engineered Materials 42 122 31 33 27 31
Consumer Specialties 30   110   27   27   28   28  
Total Materials Solutions 72   232   58   60   55   59  
Industrial Specialties
Acetyl Intermediates 1   7   2   1   2   2  
Total Acetyl Chain 1   7   2   1   2   2  
Other Activities(2) 4   22   7   6   5   4  
Total 77   261   67   67   62   65  
Certain Items Attributable to Celanese Corporation (Table
8)
Advanced Engineered Materials 3 7 3 1 2 1
Consumer Specialties 2   6   3   3      
Total Materials Solutions 5   13   6   4   2   1  
Industrial Specialties 1 (2 ) 1 2
Acetyl Intermediates 56   6   1   1   3   1  
Total Acetyl Chain 56   7   (1 ) 1   4   3  
Other Activities(2) 4   110   101   2   3   4  
Total 65   130   106   7   9   8  
Adjusted EBIT / Adjusted EBIT Margin
Advanced Engineered Materials 143 29.4 % 479 33.2 % 121 33.2 % 127 34.8 % 111 30.4 % 120 34.3 %
Consumer Specialties 100   45.9 % 418   45.0 % 106   47.1 % 98   43.6 % 108   46.0 % 106   43.4 %
Total Materials Solutions 243   34.5 % 897   37.8 % 227   38.5 % 225   38.1 % 219   36.5 % 226   38.0 %
Industrial Specialties 25 10.2 % 106 10.8 % 18 8.2 % 25 10.2 % 30 11.5 % 33 13.0 %
Acetyl Intermediates 83 13.4 % 347 14.2 % 68 11.4 % 84 14.3 % 80 13.5 % 115 17.3 %
Eliminations   1       1    
Total Acetyl Chain 108   13.6 % 454   14.5 % 86   11.5 % 109   14.3 % 111   14.2 % 148   17.6 %
Other Activities(2) (18 ) (73 ) (24 ) (15 ) (18 ) (16 )
Total 333   22.6 % 1,278   23.7 % 289   22.0 % 319   24.1 % 312   23.1 % 358   25.5 %

___________________________

(1)

  Net earnings (loss) attributable to NCI is included within the
Acetyl Intermediates segment.

(2)

Other Activities includes corporate SG&A expenses, the results of
captive insurance companies and certain components of net periodic
benefit cost (interest cost, expected return on plan assets and net
actuarial gains and losses).
 
                         

Table 2 – Supplemental Segment Data and Reconciliation of
Segment Adjusted EBIT and Operating EBITDA – Non-GAAP Measures –
Unaudited (cont.)

 
Q1 ’17 2016 Q4 ’16 Q3 ’16 Q2 ’16 Q1 ’16
(In $ millions, except percentages)
Depreciation and Amortization Expense(1)                        
Advanced Engineered Materials 24 92 21 22 25 24
Consumer Specialties 11   44   11   11   11   11  
Total Materials Solutions 35   136   32   33   36   35  
Industrial Specialties 8 34 9 9 8 8
Acetyl Intermediates 26   107   26   27   27   27  
Total Acetyl Chain 34   141   35   36   35   35  
Other Activities(2) 2   11   4   2   2   3  
Total 71   288   71   71   73   73  
Operating EBITDA / Operating EBITDA Margin
Advanced Engineered Materials 167 34.3 % 571 39.5 % 142 39.0 % 149 40.8 % 136 37.3 % 144 41.1 %
Consumer Specialties 111   50.9 % 462   49.7 % 117   52.0 % 109   48.4 % 119   50.6 % 117   48.0 %
Total Materials Solutions 278   39.4 % 1,033   43.5 % 259   44.0 % 258   43.7 % 255   42.5 % 261   43.9 %
Industrial Specialties 33 13.5 % 140 14.3 % 27 12.3 % 34 13.9 % 38 14.5 % 41 16.2 %
Acetyl Intermediates 109 17.6 % 454 18.6 % 94 15.7 % 111 18.8 % 107 18.1 % 142 21.4 %
Eliminations   1       1    
Total Acetyl Chain 142   17.9 % 595   19.0 % 121   16.2 % 145   19.0 % 146   18.7 % 183   21.8 %
Other Activities(2) (16 ) (62 ) (20 ) (13 ) (16 ) (13 )
Total 404   27.5 % 1,566   29.1 % 360   27.5 % 390   29.5 % 385   28.5 % 431   30.7 %

___________________________

(1)

  Excludes accelerated depreciation and amortization expense, which
amounts are included in Certain Items above. See Table 1 for details.

(2)

Other Activities includes corporate SG&A expenses, the results of
captive insurance companies and certain components of net periodic
benefit cost (interest cost, expected return on plan assets and net
actuarial gains and losses).
 
                         
Table 3
Adjusted Earnings (Loss) per Share – Reconciliation of a Non-GAAP
Measure – Unaudited
 
Q1 ’17 2016 Q4 ’16 Q3 ’16 Q2 ’16 Q1 ’16
   

per
share

   

per
share

   

per
share

   

per
share

   

per
share

   

per
share

(In $ millions, except per share data)
Earnings (loss) from continuing operations attributable to Celanese
Corporation
183 1.30 902 6.19 160 1.12 265 1.83 221 1.50 256 1.73
Income tax provision (benefit) 56   122   (5 ) 15   52   60  
Earnings (loss) from continuing operations before tax 239 1,024 155 280 273 316

Certain Items attributable to Celanese Corporation (Table 8)

65 130 106 7 9 8
Refinancing and related expenses   6     4     2  
Adjusted earnings (loss) from continuing operations before tax 304 1,160 261 291 282 326
Income tax (provision) benefit on adjusted earnings(1) (49 ) (197 ) (44 ) (49 ) (48 ) (55 )
Adjusted earnings (loss) from continuing operations(2) 255   1.81 963   6.61 217   1.52 242   1.67 234   1.59 271   1.83
Diluted shares (in millions)(3)
Weighted average shares outstanding 140.6 144.9 141.9 144.0 146.5 147.4
Incremental shares attributable to equity awards 0.4   0.8   0.7   0.6   0.6   0.7  
Total diluted shares 141.0   145.7   142.6   144.6   147.1   148.1  
______________________________

(1) Calculated using adjusted effective tax rates
(Table 3a) as follows:

Q1 ’17 2016 Q4 ’16 Q3 ’16 Q2 ’16 Q1 ’16
(In percentages)
Adjusted effective tax rate 16 17 17 17 17 17
 

(2) Excludes the immediate recognition of actuarial
gains and losses and the impact of actual vs. expected plan asset
returns.

 
     

Actual Plan
Asset Returns

   

Expected
Plan Asset
Returns

(In percentages)
2016 6.9 7.3  
 

(3) Potentially dilutive shares are included in the
adjusted earnings per share calculation when adjusted earnings are
positive.

 
         
Table 3a
Adjusted Tax Rate – Reconciliation of a Non-GAAP Measure –
Unaudited
 
Estimated Actual
2017 2016
(In percentages)
US GAAP effective tax rate 19 12
Discrete quarterly recognition of GAAP items(1) (1 ) 1
Tax impact of other charges and adjustments(2) (1 ) 3
Utilization of foreign tax credits
Changes in valuation allowances, excluding impact of other charges
and adjustments(3)
(1 ) 2
Other(4)   (1 )
Adjusted tax rate 16   17  

______________________________

Note: As part of the year-end reconciliation, we will update
the reconciliation of the GAAP effective tax rate for actual
results.

(1)

  Such as changes in tax laws, deferred taxes on outside basis
differences, changes in uncertain tax positions and prior year audit
adjustments.

(2)

Reflects the tax impact on pre-tax adjustments presented in Certain
Items (Table 8), which are excluded from pre-tax income for adjusted
earnings per share purposes.

(3)

Reflects changes in valuation allowances related to changes in
judgment regarding the realizability of deferred tax assets or
current year operations, excluding other charges and adjustments.

(4)

Tax impacts related to full-year forecasted tax opportunities and
related costs.
                         
Table 4
Net Sales by Segment – Unaudited
 
Q1 ’17 2016 Q4 ’16 Q3 ’16 Q2 ’16 Q1 ’16
(In $ millions)
Advanced Engineered Materials 487 1,444 364 365 365 350
Consumer Specialties 218   929   225   225   235   244  
Total Materials Solutions 705   2,373   589   590   600   594  
Industrial Specialties 245 979 219 245 262 253
Acetyl Intermediates 619 2,441 597 589 592 663
Eliminations(1) (70 ) (288 ) (67 ) (71 ) (74 ) (76 )
Total Acetyl Chain 794   3,132   749   763   780   840  
Other Activities(2)
Intersegment eliminations(1) (28 ) (116 ) (27 ) (30 ) (29 ) (30 )
Net sales 1,471   5,389   1,311   1,323   1,351   1,404  
 
___________________________

(1) Includes intersegment sales as follows:

Q1 ’17 2016 Q4 ’16 Q3 ’16 Q2 ’16 Q1 ’16
(In $ millions)
Industrial Specialties (1 ) (3 ) (1 ) (1 ) (1 )
Acetyl Intermediates (97 ) (401 ) (93 ) (100 ) (102 ) (106 )
Intersegment eliminations (98 ) (404 ) (94 ) (101 ) (103 ) (106 )
 

(2) Other Activities includes corporate SG&A expenses,
the results of captive insurance companies and certain components
of net periodic benefit cost (interest cost, expected return on
plan assets and net actuarial gains and losses).

 
                       
Table 4a
Factors Affecting Segment Net Sales Sequentially – Unaudited
 
Three Months Ended March 31, 2017 Compared to Three Months Ended
December 31, 2016
 
Volume Price Currency Other Total
(In percentages)
Advanced Engineered Materials 35 (1 ) 34

(1)

Consumer Specialties 3 (6 ) (3 )
Total Materials Solutions 22 (2 ) 20
 
Industrial Specialties 11 1 12
Acetyl Intermediates (2 ) 6 4
Total Acetyl Chain 2 5 (1 ) 6
 
Total Company 11 2 (1 ) 12

___________________________

(1)

  2017 includes the effect of the SO.F.TER. S.p.A. acquisition.
 
                     

Three Months Ended December 31, 2016 Compared to Three Months
Ended September 30, 2016

 
Volume Price Currency Other Total
(In percentages)
Advanced Engineered Materials 1 (1 )
Consumer Specialties 2 (2 )
Total Materials Solutions 2 (1 ) (1 )
 
Industrial Specialties (7 ) (2 ) (2 ) (11 )
Acetyl Intermediates 2 (1 ) 1
Total Acetyl Chain (2 ) 1 (2 ) 1 (2 )
 
Total Company (1 ) 1 (1 ) (1 )
 
                     

Three Months Ended September 30, 2016 Compared to Three Months
Ended June 30, 2016

 
Volume Price Currency Other Total
(In percentages)
Advanced Engineered Materials (1 ) 1
Consumer Specialties (4 ) (4 )
Total Materials Solutions (2 ) (2 )
 
Industrial Specialties (6 ) (1 ) (7 )
Acetyl Intermediates
Total Acetyl Chain (2 ) (1 ) 1 (2 )
 
Total Company (2 ) (2 )
 
                     

Three Months Ended June 30, 2016 Compared to Three Months Ended
March 31, 2016

 
Volume Price Currency Other Total
(In percentages)
Advanced Engineered Materials 6 (2 ) 1 5
Consumer Specialties (3 ) (1 ) (4 )
Total Materials Solutions 2 (2 ) 1 1
 
Industrial Specialties 4 (1 ) 1 4
Acetyl Intermediates (11 ) (11 )
Total Acetyl Chain (7 ) (1 ) 1 (7 )
 
Total Company (4 ) (1 ) 1 (4 )
 
                     
Table 4a
Factors Affecting Segment Net Sales Sequentially – Unaudited
(cont.)
 
Three Months Ended March 31, 2016 Compared to Three Months Ended
December 31, 2015
 
Volume Price Currency Other Total
(In percentages)
Advanced Engineered Materials 12 12
Consumer Specialties 6 (7 ) (1 )
Total Materials Solutions 10 (3 ) 7
 
Industrial Specialties 9 (3 ) 6
Acetyl Intermediates 7 (4 ) 3
Total Acetyl Chain 8 (4 ) (1 ) 3
 
Total Company 9 (4 ) 5
 
                     
Table 4b
Factors Affecting Segment Net Sales Year Over Year – Unaudited
 
Three Months Ended March 31, 2017 Compared to Three Months Ended
March 31, 2016
 
Volume Price Currency Other Total
(In percentages)
Advanced Engineered Materials 44 (3 ) (2 ) 39
Consumer Specialties (2 ) (8 ) (1 )

(11 )
Total Materials Solutions 25 (5 ) (1 )

19
 
Industrial Specialties 1 (2 ) (2 ) (3 )
Acetyl Intermediates (12 ) 7 (2 ) (7 )
Total Acetyl Chain (9 ) 5 (2 ) 1 (5 )
 
Total Company 5 1 (2 ) 1 5
 
                     

Three Months Ended December 31, 2016 Compared to Three Months
Ended December 31, 2015

 
Volume Price Currency Other Total
(In percentages)
Advanced Engineered Materials 20 (2 ) (1 ) 17
Consumer Specialties 2 (11 ) (9 )
Total Materials Solutions 12 (6 ) 6
 
Industrial Specialties (1 ) (6 ) (1 ) (8 )
Acetyl Intermediates (4 ) (2 ) (2 ) 1 (7 )
Total Acetyl Chain (4 ) (3 ) (2 ) 1 (8 )
 
Total Company 2 (4 ) (1 ) 1 (2 )
 
                     

Three Months Ended September 30, 2016 Compared to Three Months
Ended September 30, 2015

 
Volume Price Currency Other Total
(In percentages)
Advanced Engineered Materials 16 (4 ) 12
Consumer Specialties (2 ) (7 ) (9 )
Total Materials Solutions 8 (5 ) 3
 
Industrial Specialties (1 ) (9 ) (1 ) (11 )
Acetyl Intermediates (3 ) (11 ) 1 (13 )
Total Acetyl Chain (3 ) (12 ) 2 (13 )
 
Total Company 1 (9 ) 2 (6 )
 
                     

Three Months Ended June 30, 2016 Compared to Three Months Ended
June 30, 2015

 
Volume Price Currency Other Total
(In percentages)
Advanced Engineered Materials 8 (4 ) 1 5
Consumer Specialties 2 (8 ) (6 )
Total Materials Solutions 5 (5 ) 1 1
 
Industrial Specialties (1 ) (8 ) (9 )
Acetyl Intermediates (5 ) (13 ) 2 (16 )
Total Acetyl Chain (4 ) (12 ) 2 (14 )
 
Total Company (10 ) 1 (9 )
 
                     

Three Months Ended March 31, 2016 Compared to Three Months
Ended March 31, 2015

 
Volume Price Currency Other Total
(In percentages)
Advanced Engineered Materials 5 (2 ) (1 ) 2
Consumer Specialties 17 (9 ) 8
Total Materials Solutions 9 (5 ) 4
 
Industrial Specialties (9 ) (1 ) (10 )
Acetyl Intermediates 6 (13 ) (2 ) 2 (7 )
Total Acetyl Chain 5 (13 ) (2 ) 1 (9 )
 
Total Company 7 (10 ) (2 ) 1 (4 )
 
                     
Table 4c
Factors Affecting Segment Net Sales Year Over Year – Unaudited
 
Year Ended December 31, 2016 Compared to Year Ended December 31,
2015
 
Volume Price Currency Other Total
(In percentages)
Advanced Engineered Materials 11 (2 ) 9
Consumer Specialties 4 (8 ) (4 )
Total Materials Solutions 8 (5 ) 3
 
Industrial Specialties (1 ) (8 ) (1 ) (10 )
Acetyl Intermediates (2 ) (10 ) (1 ) 2 (11 )
Total Acetyl Chain (2 ) (10 ) (1 ) 2 (11 )
 
Total Company 2 (8 ) (1 ) 2 (5 )
 
                         
Table 5
Free Cash Flow – Reconciliation of a Non-GAAP Measure – Unaudited
 
Q1 ’17 2016 Q4 ’16 Q3 ’16 Q2 ’16 Q1 ’16
(In $ millions)
Net cash provided by (used in) investing activities (64 ) (439 ) (247 ) (54 ) (63 ) (75 )
Net cash provided by (used in) financing activities (270 ) (759 ) (292 ) 265 (259 ) (473 )
 
Net cash provided by (used in) operating activities 192 893 (47 ) 304 349 287
Capital expenditures on property, plant and equipment (62 ) (246 ) (60 ) (58 ) (58 ) (70 )
Capital (distributions to) contributions from NCI (4 ) (24 ) (9 ) (9 ) (6 )  
Free cash flow(1)(2) 126   623   (116 ) 237   285   217  

______________________________

(1)   Free cash flow is a liquidity measure used by the Company and is
defined by the Company as net cash provided by (used in) operating
activities, less capital expenditures on property, plant and
equipment, and adjusted for capital contributions from or
distributions to Mitsui & Co., Ltd. (“Mitsui”) related to our joint
venture, Fairway Methanol LLC (“Fairway”).
(2) Excludes required debt service and capital lease payments of $27
million and $56 million for the years ending December 31, 2017 and
2016, respectively.
 
                         
Table 6
Cash Dividends Received – Unaudited
 
Q1 ’17 2016 Q4 ’16 Q3 ’16 Q2 ’16 Q1 ’16
(In $ millions)
Dividends from equity method investments 50 131 15 6 73 37
Dividends from cost method investments 29 108 26 26 29 27
Total 79 239 41 32 102 64
 
                         
Table 7
Net Debt – Reconciliation of a Non-GAAP Measure – Unaudited
 
Q1 ’17 2016 Q4 ’16 Q3 ’16 Q2 ’16 Q1 ’16
(In $ millions)
Short-term borrowings and current installments of long-term debt –
third party and affiliates
107 118 118 92 119 116
Long-term debt, net of unamortized deferred financing costs 2,851   2,890   2,890   2,923   2,464   2,487  
Total debt 2,958 3,008 3,008 3,015 2,583 2,603
Cash and cash equivalents (501 ) (638 ) (638 ) (1,252 ) (735 ) (716 )
Net debt 2,457   2,370   2,370   1,763   1,848   1,887  
 
                             
Table 8
Certain Items – Unaudited
 

The following Certain Items attributable to Celanese Corporation
are included in Net earnings (loss) and are adjustments to
non-GAAP measures:

 
Q1 ’17 2016 Q4 ’16 Q3 ’16 Q2 ’16 Q1 ’16 Income Statement Classification
(In $ millions)
Employee termination benefits(1) 2 11 3 3 5 Other charges (gains), net
Plant/office closures 57 4 1 2 1 Cost of sales / SG&A / Other charges (gains), net
Business optimization 7 3 1 1 2 Cost of sales / SG&A
Asset impairments 2 1 1 Other charges (gains), net
(Gain) loss on disposition of business and assets, net (4 ) (2 ) (2 ) (Gain) loss on disposition, net
Commercial disputes (2 ) (2 ) Other charges (gains), net
Write-off of other productive assets 4 1 1 2 Cost of sales / R&D
Employee benefit plan changes 1 1 Cost of sales / SG&A / R&D
Actuarial (gain) loss on pension and postretirement plans 102 102 Cost of sales / SG&A / R&D
Start-up costs 2 1 1 Cost of sales
Mergers and acquisitions 9 3 2 1 Cost of sales / SG&A
Other (3 )       Equity in net earnings (loss) of affiliates
Certain Items attributable to Celanese Corporation 65   130   106   7   9 8

______________________________

(1)   Primarily associated with site shutdown costs.
 
             
Table 9
Return on Invested Capital (Adjusted) – Presentation of a
Non-GAAP Measure – Unaudited
 
2016

(In $ millions,
except percentages)

Net earnings (loss) attributable to Celanese Corporation 900
 

Adjusted EBIT (Table 1)

1,278

Adjusted effective tax rate (Table 3a)

17 %
Adjusted EBIT tax effected 1,061
 
2016 2015 Average
(In $ millions, except percentages)
Short-term borrowings and current installments of long-term debt –
third parties and affiliates
118 513 316
Long-term debt, net of unamortized deferred financing costs 2,890 2,468 2,679
Celanese Corporation stockholders’ equity 2,588 2,378 2,483  
Invested capital 5,478  
 
Return on invested capital (adjusted) 19.4 %
 
Net earnings (loss) attributable to Celanese Corporation as a
percentage of invested capital
16.4 %

Celanese Corporation
Investor Relations
Surabhi
Varshney, +1-972-443-3078
Surabhi.Varshney@celanese.com
or
Media
– U.S.

Travis Jacobsen, +1-972-443-3750
William.Jacobsen@celanese.com
or
Media
– Europe

Jens Kurth, +49(0)69 45009 1574
Jens.Kurth@celanese.com

Source: Celanese Corporation