Celanese Corporation Reports Record Quarterly Results

  Celanese Corporation Reports Record Quarterly Results

                         Raises 2014 Earnings Outlook

Second quarter 2014 financial highlights:

  *Achieved record adjusted earnings of $1.47 per share, up 11 percent from
    the prior quarter and 31 percent from same quarter prior year
  *Increased adjusted EBIT margin by 90 basis points from the prior quarter
    to 18.6 percent, driven by Advanced Engineered Materials, Industrial
    Specialties and Acetyl Intermediates
  *Repurchased approximately 0.8 million shares at an average price of
    $59.87, deploying $50 million of cash
  *Ended the quarter with approximately $1.1 billion cash on hand, up from
    prior quarter
  *GAAP earnings were $1.66 per share compared to $1.25 per share in the
    prior quarter and $0.83 per share in the prior year quarter

Business Wire

DALLAS -- July 17, 2014

Celanese Corporation (NYSE: CE), a global technology and specialty materials
company, today reported second quarter 2014 adjusted earnings per share of
$1.47 versus $1.33 in the prior quarter.

                                      Three Months Ended
                                        June 30,      March 31,   June 30,
                                        2014            2014          2013
                                        (unaudited)
                                        (In $ millions, except per share data)
Net sales                                   1,769          1,705         1,653
Operating profit (loss)                     259            243           169
Net earnings (loss)                         258            195           133
Adjusted EBIT / Total segment               329            302           264
income^(1)
Operating EBITDA^(1)                        401            375           339
Diluted EPS - continuing operations     $   1.66        $  1.25       $  0.83
Diluted EPS - total                     $   1.66        $  1.25       $  0.83
Adjusted EPS^(1)                        $   1.47        $  1.33       $  1.12

______________________________

^(1) Non-US GAAP measure. See "Reconciliation of Non-US GAAP Financial
Measures" below.

"Our second quarter adjusted EPS was the highest in our history at $1.47 per
share. We expanded segment income margin to 18.6 percent, a 90 basis point
improvement sequentially and a 260 basis point improvement year-over-year.
These results were driven by the efforts of our global teams that continued to
deliver customer-centric applications that add value. We are also benefiting
from the strategic decision to operate our technology-enabled business in a
manner that increases our underlying business flexibility and our ability to
take advantage of prevailing industry trends," said Mark Rohr, chairman and
chief executive officer. "We again delivered strong cash flow, deploying $50
million on share repurchases and $39 million on dividends in the quarter. With
a cash balance of $1.1 billion and net debt balance of less than $2.0 billion,
we have an opportunity to create value through our balance sheet."

Recent Highlights

  *Announced the opening of the company's Commercial Technology Center in
    Seoul, Republic of Korea. The research and development center will support
    customer growth in South Korea and advance the technical capabilities of
    the Celanese product portfolio.
  *Announced the expansion of the company's compounding capabilities at its
    integrated chemical complex in Nanjing, China, to include polyphenylene
    sulfide ("PPS"). PPS is used to replace metals and thermosets in
    applications spanning the automotive, electronics and aerospace
    industries. The expansion is expected to be operational by year-end 2014.
  *Announced the expansion of the company's Florence, Kentucky facility to
    add compounding process lines to support demand for its engineered
    materials business. It is expected to be operational in the first quarter
    of 2015.
  *Announced that the company will expand its Suzano, Brazil facility to
    include long-fiber reinforced thermoplastics production by mid-2015 to
    serve customers in Brazil and Latin America.
  *Announced the company's intent to construct a VAE emulsions unit in
    Southeast Asia. The unit will allow Celanese to better serve customers
    with high-end applications in the architectural coatings, building and
    construction, carpet and paper industries. The unit is expected to begin
    production by mid-2016.
  *Increased the company's quarterly common stock cash dividend by 39
    percent, from $0.72 to $1.00 per share of common stock on an annual basis.
    This increased the company's dividend payout ratio to approximately 20
    percent.

Second Quarter Business Segment Overview

Advanced Engineered Materials

In the second quarter, Advanced Engineered Materials generated record
quarterly revenue of $389 million and expanded segment income margin by 170
basis points sequentially to 24.2 percent, on segment income of $94 million.
Volumes increased 4 percent from the prior quarter. Demand for the company's
advanced polymers in autos continues to be strong. Additionally, the business'
ability to develop products and applications that resonate with customer needs
drove incremental growth in consumer applications primarily in Asia and
industrial applications in North America and Asia. Earnings from affiliates
were $45 million. GAAP operating profit was $56 million.

Consumer Specialties

Second quarter segment income margin in Consumer Specialties was 37.0 percent
on segment income of $107 million. On a sequential basis segment income
decreased primarily due to a third party power outage that interrupted plant
operations at the company's cellulose derivatives facility in Narrows,
Virginia. Volumes decreased 3 percent from the prior quarter. Pricing declined
by less than 1 percent mainly due to commitments under a legacy contract in
acetate flake. Dividends from the cellulose derivatives ventures were $28
million, consistent with first quarter. GAAP operating profit was $80 million.

Industrial Specialties

In the second quarter, Industrial Specialties expanded segment income margin
sequentially by 20 basis points on segment income of $22 million. Volumes
increased 2 percent sequentially primarily driven by increased demand in North
America for EVA polymers and seasonal trends in emulsion polymers in North
America and Asia. Pricing increased 4 percent from the first quarter on
improved product mix in EVA polymers, primarily medical, and in response to
higher raw material costs, primarily vinyl acetate monomer (VAM), in emulsion
polymers. GAAP operating profit was $24 million in the second quarter.

Acetyl Intermediates

Second quarter segment income margin in Acetyl Intermediates was 16.2 percent,
a 480 basis points expansion sequentially on $146million of segment income.
These results demonstrate the strategic actions the company has taken to
respond to prevailing industry conditions while also yielding a stronger base
business. Pricing increased 6 percent sequentially, mainly in VAM, reflecting
the impact of the company's strategic actions at non-integrated facilities in
Europe as well as planned and unplanned industry outages in the United States
gulf coast. The higher pricing more than offset the impact of the planned
turnaround at the company's acetic acid unit at Clear Lake, Texas. GAAP
operating profit was $143 million in the second quarter.

Cash Flow

During the second quarter of 2014, the company generated $253 million of
operating cash flow primarily driven by continued strong earnings. The
company's net investment in capital projects was $86 million mainly related to
the methanol unit at its integrated facility in Clear Lake, Texas and the
natural gas boilers at its cellulose derivatives facility in Narrows,
Virginia. Adjusted free cash flow for the quarter was $161 million.

The company deployed $39 million on dividends and $50 million on share
repurchases. As of June 30, 2014, $297 million remained under the company's
share repurchase authorization.

The company ended the quarter with net debt of less than $2.0 billion, a $61
million decrease from March 31, 2014.

Outlook

"Our excellent performance through the first six months of the year gives me
confidence that we can generate adjusted earnings per share growth in the
range of 15 to 17 percent in 2014," said Rohr. "We now increase our focus on
the Celanese-specific initiatives for 2015 that will help offset the expected
headwind related to the expiration of a methanol contract in mid-2015."

The company's earnings presentation and prepared remarks related to the second
quarter results will be posted on its website at www.celanese.com under
Investor Relations/Events and Presentations after market close on July17,
2014. Information previously included in supplemental tables to our press
release is now included in a separate Non-US GAAP Financial Measures and
Supplemental Information document posted on our website. See “Reconciliation
of Non-US 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. With sales almost equally divided
between North America, Europe and Asia, the company uses the full breadth of
its global chemistry, technology and business expertise to create value for
customers and the corporation. Celanese partners with customers to solve their
most critical needs while making a positive impact on its communities and the
world. Based in Dallas, Texas, Celanese employs approximately 7,400 employees
worldwide and had 2013 net sales of $6.5 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. 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 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.

Use of Non-US GAAP Financial Information

This release uses the following non-US GAAP measures: adjusted EBIT, operating
EBITDA, adjusted earnings per share, adjusted free cash flow and net debt.
These measures are not recognized in accordance with US GAAP and should not be
viewed as an alternative to US GAAP measures of performance. 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); for adjusted earnings per share is earnings (loss) from
continuing operations per common share-diluted; for adjusted free cash flow is
cash flow from operations; and for net debt is total debt.

Definitions of Non-US GAAP Financial Measures

  *Adjusted EBIT is defined by the Company as net earnings (loss) less
    interest income plus loss (earnings) from discontinued operations,
    interest expense and taxes, and further adjusted for certain items and
    amounts attributable to noncontrolling interests ("NCI"). Adjusted EBIT by
    business segment may also be referred to by management as segment income.
  *Operating EBITDA is defined by the Company as net earnings (loss) less
    interest income plus loss (earnings)from discontinued operations,
    interest expense, taxes and depreciation and amortization, and further
    adjusted for certain items and amounts attributable to NCI. Operating
    EBITDA is equal to adjusted EBIT plus depreciation and amortization.
  *Adjusted earnings per share is defined by the Company as earnings (loss)
    from continuing operations, adjusted for income tax (provision) benefit,
    certain items, refinancing and related expenses and amounts attributable
    to NCI, divided by the number of basic common shares, convertible
    preferred shares and dilutive restricted stock units and stock options
    calculated using the treasury method.

    Note: 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, where applicable, and specifically excludes changes in
    uncertain tax positions, discrete items and other material 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. We also reflect the impact of foreign tax credits
    when utilized for the adjusted earnings per share tax rate. We analyze
    this rate quarterly and adjust 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. It is not practical
    to reconcile our prospective adjusted tax rate to the actual GAAP tax rate
    in any given future period.

  *Adjusted free cash flow is defined by the Company as cash flow from
    operations less other productive asset purchases, operating cash flow from
    discontinued operations and certain cash flow adjustments, including
    amounts attributable to NCI and capital contributions from outside
    stockholders of the Company's consolidated ventures.
  *Net debt is defined by the Company as total debt less cash and cash
    equivalents, adjusted for amounts attributable to NCI.

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
July17, 2014 and also available on our website at www.celanese.com under
Financial Information, Non-GAAP Financial Measures and Supplemental
Information, 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
                              June 30,           March 31,      June 30,
                              2014                 2014             2013
                              (In $ millions, except share and per share data)
Net sales                     1,769                1,705            1,653
Cost of sales                 (1,361    )          (1,327  )        (1,334  )
Gross profit                  408                  378              319
Selling, general and          (119      )          (104    )        (113    )
administrative expenses
Amortization of               (5        )          (6      )        (9      )
intangible assets
Research and development      (24       )          (22     )        (23     )
expenses
Other (charges) gains,        2                    (1      )        (3      )
net
Foreign exchange gain         (1        )          (1      )        (2      )
(loss), net
Gain (loss) on
disposition of businesses     (2        )          (1      )        —       
and asset, net
Operating profit (loss)       259                  243              169
Equity in net earnings        101                  40               55
(loss) of affiliates
Interest expense              (40       )          (39     )        (44     )
Refinancing expense           —                    —                —
Interest income               2                    —                1
Dividend income - cost        29                   29               23
investments
Other income (expense),       1                   —               4       
net
Earnings (loss) from
continuing operations         352                  273              208
before tax
Income tax (provision)        (94       )          (78     )        (75     )
benefit
Earnings (loss) from          258                 195             133     
continuing operations
Earnings (loss) from
operation of discontinued     (1        )          —                —
operations
Gain (loss) on
disposition of                —                    —                —
discontinued operations
Income tax (provision)
benefit from discontinued     1                   —               —       
operations
Earnings (loss) from          —                   —               —       
discontinued operations
Net earnings (loss)           258                  195              133
Net (earnings) loss
attributable to               1                   1               —       
noncontrolling interests
Net earnings (loss)
attributable to Celanese      259                 196             133     
Corporation
Amounts attributable to
Celanese Corporation
Earnings (loss) from          259                  196              133
continuing operations
Earnings (loss) from          —                   —               —       
discontinued operations
Net earnings (loss)           259                 196             133     
Earnings (loss) per
common share - basic
Continuing operations         1.66                 1.25             0.83
Discontinued operations       —                   —               —       
Net earnings (loss) -         1.66                1.25            0.83    
basic
Earnings (loss) per
common share - diluted
Continuing operations         1.66                 1.25             0.83
Discontinued operations       —                   —               —       
Net earnings (loss) -         1.66                1.25            0.83    
diluted
Weighted average shares
(in millions)
Basic                         155.8                156.5            159.7
Diluted                       156.1                156.8            160.1
                                                                            

                                                        
Consolidated Balance Sheets - Unaudited
                                                             
                                           As of             As of
                                           June 30, 2014     December 31, 2013
                                           (In $ millions)
ASSETS
Current Assets
Cash and cash equivalents                  1,064             984
Trade receivables - third party and        1,045             867
affiliates, net
Non-trade receivables, net                 231               343
Inventories                                816               804
Deferred income taxes                      115               115
Marketable securities, at fair value       39                41
Other assets                               29               28         
Total current assets                       3,339            3,182      
Investments in affiliates                  880               841
Property, plant and equipment, net         3,577             3,425
Deferred income taxes                      271               289
Other assets                               332               341
Goodwill                                   794               798
Intangible assets, net                     140              142        
Total assets                               9,333            9,018      
LIABILITIES AND EQUITY
Current Liabilities
Short-term borrowings and current
installments of long-term debt - third     158               177
party and affiliates
Trade payables - third party and           839               799
affiliates
Other liabilities                          472               541
Deferred income taxes                      10                10
Income taxes payable                       64               18         
Total current liabilities                  1,543            1,545      
Long-term debt                             2,880             2,887
Deferred income taxes                      228               225
Uncertain tax positions                    158               200
Benefit obligations                        1,125             1,175
Other liabilities                          298               287
Commitments and Contingencies
Stockholders' Equity
Preferred stock                            —                 —
Common stock                               —                 —
Treasury stock, at cost                    (464     )        (361       )
Additional paid-in capital                 73                53
Retained earnings                          3,399             3,011
Accumulated other comprehensive income     (53      )        (4         )
(loss), net
Total Celanese Corporation                 2,955             2,699
stockholders' equity
Noncontrolling interests                   146              —          
Total equity                               3,101            2,699      
Total liabilities and equity               9,333            9,018      

Contact:

Celanese Corporation
Investor Relations:
Jon Puckett, +1 972-443-4965
Jon.Puckett@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
J.Kurth@celanese.com
 
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