Celanese (CE) Q4 2014 earnings summary

Executive summary

• Record 2014 performance across most measures despite a challenging global economy; sales rose 5% and adjusted EPS increased 26% YoY, while segment income margins expanded 240 bps.

• Strong Materials results and higher Acetyl Chain pricing supported growth; record operating cash flow reached $962 million.

Financial highlights

• Net sales were $6.802 billion, up 4.5% YoY; gross profit was $1.616 billion, compared with $1.365 billion.

• Operating profit was $758 million versus $1.508 billion; the prior-year figure included a $742 million Fraport-related gain, while 2014 SG&A rose $447 million, largely from pension costs.

• Net earnings attributable to shareholders were $624 million; diluted EPS was $4.00, including a $0.04 per-share discontinued-operations loss.

• Operating cash flow rose 26% to $962 million; cash and equivalents ended the year at $780 million.

Outlook and guidance

• 2015 earnings expected to benefit from a strong core business and productivity efforts in energy savings, plant efficiency and customer-aligned product development.

• 2015 capital outflows, including the Clear Lake methanol project, expected at $375–$400 million; methanol unit targeted for operation in H2 2015.

• Management expected sufficient resources to meet 2015 liquidity needs, including debt service; $900 million remained available under the revolving facility at year-end.