Celanese Corporation Reports First Quarter 2018 Earnings; Increases 2018 Outlook

DALLAS–(BUSINESS WIRE)–Celanese Corporation (NYSE: CE), a global technology and specialty
materials company, today reported first quarter 2018 GAAP diluted
earnings per share of $2.68, its second highest ever, and record
adjusted earnings per share of $2.79. Net sales in the quarter expanded
26 percent year over year to $1.9 billion. Growth in both Engineered
Materials and the Acetyl Chain contributed to a robust quarter.
Engineered Materials expanded earnings through pipeline
commercialization and successful integration of recent acquisitions. The
Acetyl Chain's expansive network and ability to respond quickly to
improved industry utilization rates enabled it to leverage regional
momentum to grow earnings meaningfully.

First Quarter 2018 Financial Highlights:

First Quarter 2018 Highlights:

• Completed the acquisition of Omni Plastics and its subsidiaries. Omni
  specializes in custom compounding of various engineered thermoplastic
  materials with a compounding facility and headquarters in Evansville,
  Indiana.
• Commercialized a record 742 projects in Engineered Materials in the
  first quarter of 2018, a 45 percent increase over the first quarter of
  last year. On-track to deliver approximately 3,000 project wins in
  2018.
• Began the final, large scale installation of critical processing
  equipment associated with the 150 kt expansion of the Clear Lake,
  Texas VAM unit.
• Abandoned the joint venture agreement with Blackstone’s Rhodia Acetow
  business as parties were unable to reach an agreement with the
  European Commission on acceptable conditions.
• Received the 2018 ENERGY STAR® Partner of the Year Sustained
  Excellence Award for continued leadership and superior contributions
  to ENERGY STAR.

First Quarter 2018 Business Segment Overview

Engineered Materials (EM)

Engineered Materials delivered record net sales of $665 million in the
first quarter, 29 percent higher than the prior year. Both GAAP
operating profit of $127 million and segment income of $182 million were
all-time highs. Growth in adjusted earnings resulted from the success of
the opportunity pipeline, growth in Asia, and recent acquisitions. A
record 742 projects were commercialized in the quarter, 45 percent
higher than the first quarter of 2017. Customers continue to value the
project-based approach in EM that constantly matches Celanese's broad
solution set and customer-specific needs to uncover opportunities for
partnership. Volume in the first quarter of 2018 increased over last
year primarily from the Nilit and Omni acquisitions. Operating profit
and segment income margins were slightly lower than the same quarter
last year, primarily due to acquisitions, while improving sequentially
from the fourth quarter of 2017, and in-line with expectations for 2018.
Affiliate earnings in Engineered Materials increased year over year to
$54 million driven by Ibn Sina.

Acetate Tow

Acetate tow volume and price in the first quarter were lower than the
same quarter last year due to unique positive carryovers from 2016 into
the first quarter of 2017 as customers transitioned to new contracts
that did not repeat in 2018. Affiliate earnings of $32 million were
higher mainly due to favorable currency.

Acetyl Chain

The Acetyl Chain recorded its highest ever net sales of over $1 billion,
a 32 percent increase year over year. GAAP operating profit and core
income of $253 million each, were both records. Operating profit
expanded $201 million compared to the first quarter in 2017, while core
income was $145 million higher. The business leveraged progressively
improving industry fundamentals in the quarter to deliver a step-change
in earnings growth. More opportunities were pursued to activate the
expansive network and drive growth than any other previous quarter.
Price and Volume increased year-over-year as a result of the improved
industry utilization rates regionally and globally. Record margins of
24.1 percent were driven by higher acetic acid and derivative prices
globally, led by China.

Cash Flow

Operating cash flow in the first quarter was $143 million. Free cash
flow was $55 million driven by timing of sales and collections, on-track
for more than $900 million for 2018. Capital expenditures were
$86 million in the quarter. Cash of $63 million was returned to
shareholders in the quarter in the form of dividends.

Outlook

"The first quarter of 2018 represents a combination of stronger industry
fundamentals and the strength of our commercial models. In Engineered
Materials, there is a continued need for customized solutions to reduce
complexity for customers. The breadth of polymers and customer enabling
competencies have made the business an important partner for our
customers. In the Acetyl Chain, improving global supply and demand
dynamics in the industry led by China, have raised base profitability
levels. A very responsive commercial structure coupled with a global
manufacturing footprint will continue to enable the Acetyl Chain in
translating this momentum into earnings growth around the world. We
believe that the improvement in the acetyls industry will be sustained
in the longer term but expect some moderation in instantaneous
utilization rates as we go through the year. The on-going success in our
businesses gives us confidence that we can grow adjusted earnings per
share by 20-25 percent in 2018," said Mark Rohr, chairman and chief
executive officer.

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 16, 2018. 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 businesses use the
full breadth of Celanese's global chemistry, technology and commercial
expertise to create value for our customers, employees, shareholders 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 7,700 employees worldwide
and had 2017 net sales of $6.1 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, synergies, 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. 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. 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 current levels of
production costs and to improve productivity by implementing
technological improvements to existing plants; the ability to identify
desirable potential acquisition targets and to consummate acquisition or
investment transactions consistent with the Company's strategy;
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 tariffs, tax
rates or legislation; 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 four business segments,
Engineered Materials, Acetate Tow, Industrial Specialties and Acetyl
Intermediates, with one subtotal reflecting our core, the Acetyl Chain,
which is based on similarities among customers, business models and
technical processes. The Acetyl Chain includes the Company's Acetyl
Intermediates segment and the Industrial 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 do not provide reconciliations for adjusted EBIT on a
  forward-looking basis (including those contained in this document)
  when we are unable to provide a meaningful or accurate calculation or
  estimation of reconciling items and the information is not available
  without unreasonable effort. This is due to the inherent difficulty of
  forecasting the timing and amount of Certain Items, such as
  mark-to-market pension gains and losses, that have not yet occurred,
  are out of our control and/or cannot be reasonably predicted. For the
  same reasons, we are unable to address the probable significance of
  the unavailable information. Adjusted EBIT margin is defined by the
  Company as adjusted EBIT divided by net sales.
• Adjusted EBIT by core (i.e., the Acetyl Chain) 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 do not provide reconciliations for adjusted
  earnings per share on a forward-looking basis (including those
  contained in this document) when we are unable to provide a meaningful
  or accurate calculation or estimation of reconciling items and the
  information is not available without unreasonable effort. This is due
  to the inherent difficulty of forecasting the timing and amount of
  Certain Items, such as mark-to-market pension gains and losses, that
  have not yet occurred, are out of our control and/or cannot be
  reasonably predicted. For the same reasons, we are unable to address
  the probable significance of the unavailable information.
  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 16, 2018 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.

Non-US GAAP Financial Measures and Supplemental
Information

Apri

Contacts

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

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