Free Research Report as Celanese’s Quarterly Sales Surged 51.1%; EPS Advanced 33.9%
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LONDON, UK / ACCESSWIRE / February 02, 2018 / Active-Investors.com has just released a free earnings report on Celanese Corp. (NYSE: CE). If you want access to this report all you need to do is sign up now by clicking the following link www.active-investors.com/registration-sg/?symbol=CE. Celanese reported its fourth quarter and fiscal 2017 operating and financial results on January 25, 2018. The global technology and specialty materials Company delivered its second highest annual operating profit of $901 million and record adjusted earnings before interest and tax (EBIT) of $1.4 billion. Register today and get access to over 1,000 Free Research Reports by joining our site below:
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Active-Investors.com is focused on giving you timely information and the inside line on companies that matter to you. This morning, Celanese most recent news is on our radar and our team decided to put out a fantastic report on the company that is now available for free below:
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Earnings Highlights and Summary
For the three months ended December 31, 2017, Celanese's net sales surged 51.1% to $550 million compared to net sales of $364 million in Q4 2016. The Company's reported numbers came in ahead of analysts' estimates of $1.53 billion.
For the year ended December 31, 2017 (FY17), Celanese' sales of $2.10 billion soared 45.8% compared to the year ended December 31, 2016 (FY16) sales of $1.44 billion.
For Q4 2017, Celanese reported earnings of $204 million, or $1.50 per diluted share, compared to earnings of $161 million, or $1.12 per diluted share, for Q4 2016. As a result of the recent Tax Cuts and Jobs Act of 2017, the Company recognized a net tax expense of $90 million in the reported quarter, with tax on deemed repatriation of accumulated foreign earnings partially offset by a reduction of deferred tax liabilities. Celanese posted adjusted earnings of $1.98 per diluted share versus $1.52 per diluted share in the year ago same period, beating Wall Street's estimates of $1.86 per share.
For FY17 Celanese reported GAAP diluted earnings of $849 million, or $6.19 per diluted share, compared to earnings of $906 million, or $6.19 per diluted share, for FY16. The Company's adjusted earnings totaled $7.51 per share versus $6.61 per share in FY16.
Celanese' Business Segment Overview
During Q4 2017, the Materials Solutions segment generated record net sales of $735 million, reflecting growth of 25% on y-o-y basis. Growth in its sub segment, Advanced Engineered Materials (AEM) from new project introductions and acquisitions partially offset the decline in Consumer Specialties from tow. AEM delivered the second highest fourth quarter GAAP operating profit of $91 million and the highest ever fourth quarter segment income of $135 million.
The Materials Solutions segment's opportunity pipeline expanded by 587 projects in the reported quarter continuing the traction with customers in identifying possibilities for value enhancement. The segment's operating profit margin of 16.5% and the segment's income margin of 24.5% were lower on a y-o-y basis with new acquisitions contributing to margin dilution and temporarily higher plant costs in Q4 2017.
For Q4 2017, the Acetyl Chain segment's net sales jumped 19% to $888 million on a y-o-y basis, driven by increases in price. The segment's GAAP operating profit of $176 million was the third highest ever and core income of $178 million was a fourth quarter record, representing a 107% on a y-o-y basis. Acetyl Chain's GAAP operating margin of 19.8% and core income margin of 20.0% both scaled new highs.
Cash Matters
Celanese' generated operating cash flow of $803 million for FY17. The Company's free cash flow was $825 million before taking into account the $316 million voluntary contribution to fully fund qualified US pension plans. Celanese' capital expenditure for FY17 totaled $267 million, including $140 million of growth investment.
During FY17, Celanese returned $741 million of cash to shareholders, repurchasing 5.4 million shares for $500 million and distributing $241 million in dividends for FY17. As of December 31, 2017, the Company had $1.5 billion remaining under the current share repurchase authorization.
Outlook
For full year 2018, Celanese is forecasting growth of adjusted earnings per share in the 10% to 14% range, with more of the growth expected in H1 2018.
Stock Performance Snapshot
February 01, 2018 - At Thursday's closing bell, Celanese's stock declined 1.25%, ending the trading session at $106.81.
Volume traded for the day: 507.27 thousand shares.
Stock performance in the last month – up 0.05%; previous three-month period – up 2.40%; past six-month period – up 10.33%; and last twelve-month – up 24.21%
After yesterday's close, Celanese's market cap was at $14.61 billion.
Price to Earnings (P/E) ratio was at 18.36.
The stock has a dividend yield of 1.72%.
The stock is part of the Basic Materials sector, categorized under the Chemicals - Major Diversified industry. This sector was up 0.3% at the end of the session.
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