Celanese Corporation Reports Strong Third Quarter Results; Sequential Improvements in Volumes and Margins

http://www.businesswire.com/news/home/20091027005355/en

DALLAS--(Business Wire)--
Celanese Corporation (NYSE: CE):

Third quarter highlights:

* Net sales were $1,304 million, down 28% from prior year period
* Operating profit was $65 million versus $151 million in prior year period
* Net earnings were $399 million versus $158 million in prior year period
* Operating EBITDA was $241 million versus $314 million in prior year period
* Diluted EPS from continuing operations was $2.53 versus $1.01 in prior year
period
* Adjusted EPS was $0.58 versus $0.78 in prior year period

Three Months Ended Nine Months Ended
September 30, September 30,
(in $ millions, except per share data) 2009 2008 2009 2008
Net sales 1,304 1,823 3,694 5,537
Operating profit (loss) 65 151 181 592
Net earnings (loss) attributable to Celanese Corporation 399 158 483 437
Operating EBITDA 1 241 314 620 1,101
Diluted EPS - continuing operations $2.53 $1.01 $3.08 $3.08
Diluted EPS - total $2.53 $0.97 $3.08 $2.63
Adjusted EPS 2 $0.58 $0.78 $1.21 $3.05
1 Non-U.S. GAAP measure. See reconciliation in table 1.
2 Non-U.S. GAAP measure. See reconciliation in table 6.

Celanese Corporation (NYSE: CE), a leading, global chemical company, today
reported third quarter 2009 net sales of $1,304 million, a 28 percent decrease
from the same period last year, with the ongoing global recession continuing to
impact year-over-year comparisons. The decrease in net sales was primarily
driven by lower pricing for Acetyl Intermediates and Industrial Specialties
products, resulting from lower raw material costs and decreased volumes on weak
global demand. The third quarter 2008 results also included $74 million of net
sales associated with the company`s polyvinyl alcohol (PVOH) business that was
divested on July 1, 2009. Operating profit was $65 million compared with $151
million in the prior year period as lower raw material and energy costs, as well
as benefits from the company`s fixed cost reduction efforts, were more than
offset by the lower net sales. Third quarter 2009 results included a net $70
million of other charges and other adjustments, primarily associated with the
announced closure of the company`s acetic acid and vinyl acetate monomer (VAM)
production operations in Pardies, France, which were partially offset by the
gain on sale of the PVOH business. Net earnings were $399 million compared with
$158 million in the same period last year. The 2009 results included a benefit
of approximately $382 million related to a deferred tax benefit associated with
the release of certain income tax valuation allowances.

Adjusted earnings per share for the third quarter of 2009, which excluded the
other charges and other adjustments and the deferred tax benefit, were $0.58
compared with $0.78 in the same period last year. The effective tax rate and
diluted share count used in adjusted earnings per share in the current period
were 23 percent and 157.6 million, respectively. The company reduced the
effective tax rate for adjusted earnings per share from the second quarter 2009
rate of 29 percent as a result of its manufacturing and administrative
restructuring efforts. Operating EBITDA in the period was $241 million compared
with $314 million in the prior year period.

"We are very pleased with the strong performance across all of our segments. Our
leading global businesses and significant reductions in fixed spending are
driving the sustainable earnings performance we expect in this part of an
economic cycle," said David Weidman, chairman and chief executive officer. "Our
third quarter results reflect stabilization in demand across our major
geographies and end-use applications with modest recovery in select areas.
Continued strength in Asia and the benefits of government-sponsored programs in
the North American automotive and related industries also contributed positively
to our results."

Recent Highlights

* Successfully started up the previously announced expansion of its acetic acid
unit in Nanjing, China. Production is expected to ramp up during the fourth
quarter of 2009. With the expansion, the unit`s capacity doubles from 600,000
tons to 1.2 million tons annually.
* Announced the expansion of its vinyl acetate/ethylene (VAE) manufacturing
facility at its Nanjing, China, integrated chemical complex to support continued
growth plans throughout Asia. The expanded facility will double the company`s
VAE capacity in the region and is expected to be operational in the first half
of 2011.

Third Quarter Segment Overview

Advanced Engineered Materials

Advanced Engineered Materials delivered improved earnings sequentially and
year-over-year as it demonstrated the significant operating leverage of its
specialty engineered polymers business model. Net sales in the third quarter
were $220 million compared with $272 million in the prior year period as many of
its key end markets continued to experience volume pressure. Overall average
pricing declined modestly due to product mix changes. The sequential increase in
sales, however, was led by improvements in automotive and related industries in
North America and Europe, with continued strength in Asia. Operating profit in
the period was $21 million compared with $13 million in the prior year period,
as lower raw material and energy costs and fixed cost reductions related to the
company`s restructuring initiatives more than offset lower volumes. Operating
EBITDA was $56 million compared with $45 million in the prior year period and
$28 million in the second quarter of 2009. Equity earnings from affiliates were
$11 million compared with $12 million in the same period last year and benefited
from the timing of earnings related to a planned turnaround in the fourth
quarter of 2009.

Consumer Specialties

Consumer Specialties continued to deliver improved performance with higher
levels of earnings. Net sales in the third quarter were $271 million, $24
million lower than the prior year period, as higher pricing could not offset
volume pressure primarily related to inventory destocking in the late-cycle
businesses and declining consumer spending trends in customer end markets.
Operating profit, however, increased to $52 million from $42 million in the same
period last year as higher pricing, lower energy costs and fixed spending
reduction efforts more than offset the lower volumes. Operating EBITDA was $68
million compared with $56 million in the prior year period.

Industrial Specialties

Industrial Specialties delivered sustained earnings performance with improved
margins as it continued to benefit from growth in Asia. Net sales in the quarter
were $236 million compared with $378 million in the same period last year. Last
year`s results included $74 million of net sales related to the PVOH business
which was divested on July 1, 2009. While pricing was lower year-over-year due
to lower raw material costs, volumes in its core emulsions and performance
polymers businesses were essentially flat when compared with the prior year
period`s results. Growth in Asia and Europe offset slightly lower volumes in
North America. While residential and non-residential construction markets
stabilized, North American volumes declined due to the previously announced
force majeure in the company`s performance polymers business. The production
issues that led to the force majeure were resolved during the quarter. Operating
profit was $44 million compared with $18 million in the same period last year
and included a gain of $34 million related to the sale of the PVOH business.
Margins expanded in the core businesses as lower raw material costs and the
benefits of the company`s fixed spending reduction efforts offset lower pricing
in the period. Operating EBITDA, which excluded the gain, decreased by $7
million to $29 million in the period, reflecting sustained earnings in the
emulsions and performance polymers businesses and the absence of earnings
related to the PVOH divestiture.

Acetyl Intermediates

Acetyl Intermediates` performance demonstrated its leading global presence and
advantaged technology as earnings improved sequentially, but lower margins
year-over-year continued to pressure the business. Net sales were $666 million
compared with $1,056 million in the same period last year, driven by lower
pricing for acetic acid and its downstream derivatives. Lower industry
utilization and lower raw material and energy costs drove the pricing declines.
Volumes were modestly lower, primarily in derivative products, but the company
continued to benefit from its advantaged cost position in acetic acid. Operating
profit was a loss of $30 million compared with a profit of $100 million in the
prior year period. Excluding other charges and other adjustments of $87 million,
primarily related to the closure of the company`s acetic acid and VAM production
operations in Pardies, France, the lower pricing and volumes more than offset
lower raw material and energy costs and benefits from the company`s fixed
spending reduction efforts. Operating EBITDA, which excluded the other charges
and other adjustments, was $105 million compared with $182 million in the prior
year period and $76 million in the second quarter of 2009. The company`s Ibn
Sina cost investment contributed $18 million in dividends compared with $34
million in the prior year period.

Taxes

The tax rate for adjusted earnings per share was 29 percent in the first six
months of 2009 and 23 percent for the third quarter of 2009, compared with 26
percent in the first nine months of 2008. The U.S. GAAP effective tax rate for
continuing operations for the third quarter of 2009 was negative 714 percent
compared with negative 8 percent in the third quarter of 2008. The decrease in
the effective income tax rate is primarily due to a deferred tax benefit of $382
million for the release of certain valuation allowances against U.S. net
deferred tax assets.

The company paid net cash taxes of $21 million in the first nine months of 2009
compared with $85 million of cash taxes paid in the first nine months of 2008.
The decrease in cash taxes paid is primarily the result of tax refunds, lower
earnings and the timing of cash taxes in certain jurisdictions.

Equity and Cost Investments

Earnings from equity investments and dividends from cost investments, which are
reflected in the company`s adjusted earnings and operating EBITDA, were $38
million compared with $54 million in the prior year period. This quarter`s
results were driven by lower dividends from the company`s Ibn Sina cost
affiliate due to lower global pricing for methanol and methyl tertiary-butyl
ether (MTBE). Equity and cost investment dividends, which are included in cash
flows, were $21 million compared with $42 million in the same period last year,
also driven by the lower dividends from the Ibn Sina cost affiliate.

Cash Flow

Cash and cash equivalents at the end of the third quarter of 2009 were $1,293
million compared with $584 million at the end of the third quarter of 2008.
During the first nine months of 2009, the company generated $408 million in cash
from operating activities compared with $345 million in the first nine months of
2008. In 2009, the company received net cash of $168 million from the sale of
the PVOH business and an advance payment of $412 million related to the
relocation of Ticona`s business in Kelsterbach, Germany. Year to date, the
company has spent a total of $256 million of capital expenditures and other
expenses related to the Kelsterbach relocation. Capital expenditures, excluding
the relocation project, were $130 million for the first nine months of 2009
compared with $212 million in the same period last year. Net debt at the end of
the third quarter of 2009 was $2,284 million compared with $3,036 million in the
same period last year.

"Our businesses have demonstrated the ability to generate cash throughout this
extremely challenging economic downturn and we continued to do so in the third
quarter," said Steven Sterin, senior vice president and chief financial officer.
"We expect to continue to generate positive free cash flow and add to our
strategic cash balances."

Outlook

The company noted that while it expects continued modest recovery of global
economies, it also expects its results to reflect normal seasonality in the
fourth quarter.

The company also foresees three key areas of earnings growth for 2010. These
include:

* increased volumes across all of its businesses, based on second half 2009
demand levels continuing into 2010
* additional fixed spending reductions of approximately $100 million,
principally due to the structural streamlining of the company`s manufacturing
operations and administrative functions, including the closure of its Pardies,
France, facility
* an adjusted tax rate in the low 20s percent range

"We expect the considerable progress we have made in executing our strategy to
deliver significant earnings improvement," Weidman said. "Absent a pronounced
economic recovery in the short term, we expect the benefits from these efforts
to result in approximately $1.00 per share of increased earnings in 2010."

As a global leader in the chemicals industry, Celanese Corporation makes
products essential to everyday living. Our products, found in consumer and
industrial applications, are manufactured in North America, Europe and Asia.Net
sales totaled $6.8 billion in 2008, with approximately 65% generated outside of
North America.Known for operational excellence and execution of its business
strategies, Celanese delivers value to customers around the globe with
innovations and best-in-class technologies.Based in Dallas, Texas, the company
employs approximately 8,000 employees worldwide. For more information on
Celanese Corporation, please visit the company's website at www.celanese.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.When used in this release, the words "outlook,"
"forecast," "estimates," "expects," "anticipates," "projects," "plans,"
"intends," "believes," and variations of such words or similar expressions are
intended to identify forward-looking statements.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 forward-looking
statements contained in this release.Numerous factors, many of which are beyond
the company`s control, could cause actual results to differ materially from
those expressed as forward-looking statements.Certain of these risk factors are
discussed 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.

Reconciliation of Non-U.S. GAAP Measures to U.S. GAAP

This release reflects five performance measures, operating EBITDA, affiliate
EBITDA, adjusted earnings per share, net debt and adjusted free cash flow, as
non-U.S. GAAP measures.The most directly comparable financial measure presented
in accordance with U.S. GAAP in our consolidated financial statements for
operating EBITDA is operating profit; for affiliate EBITDA is equity in net
earnings of affiliates; for adjusted earnings per share is earnings per common
share-diluted; for net debt is total debt; and for adjusted free cash flow is
cash flow from operations.

Use of Non-U.S. GAAP Financial Information

* Operating EBITDA, a measure used by management to measure performance, is
defined as operating profit from continuing operations, plus equity in net
earnings from affiliates, other income and depreciation and amortization, and
further adjusted for other charges and adjustments. We may provide guidance on
operating EBITDA and are unable to reconcile forecasted operating EBITDA to a
U.S. GAAP financial measure because a forecast of Other Charges and Adjustments
is not practical. Our management believes operating EBITDA is useful to
investors because it is one of the primary measures our management uses for its
planning and budgeting processes and to monitor and evaluate financial and
operating results.Operating EBITDA is not a recognized term under U.S. GAAP and
does not purport to be an alternative to operating profit as a measure of
operating performance or to cash flows from operating activities as a measure of
liquidity. Because not all companies use identical calculations, this
presentation of operating EBITDA may not be comparable to other similarly titled
measures of other companies. Additionally, operating EBITDA is not intended to
be a measure of free cash flow for management`s discretionary use, as it does
not consider certain cash requirements such as interest payments, tax payments
and debt service requirements nor does it represent the amount used in our debt
covenants.
* Affiliate EBITDA, a measure used by management to measure performance of its
equity investments, is defined as the proportional operating profit plus the
proportional depreciation and amortization of its equity investments. Affiliate
EBITDA, including Celanese Proportional Share of affiliate information on Table
8, is not a recognized term under U.S. GAAP and is not meant to be an
alternative to operating cash flow of the equity investments. The company has
determined that it does not have sufficient ownership for operating control of
these investments to consider their results on a consolidated basis. The company
believes that investors should consider affiliate EBITDA when determining the
equity investments` overall value in the company.
* Adjusted earnings per share is a measure used by management to measure
performance. It is defined as net earnings (loss) available to common
shareholders plus preferred dividends, adjusted for other charges and
adjustments, and divided by the number of basic common shares, diluted preferred
shares, and options valued using the treasury method. We may provide guidance on
an adjusted earnings per share basis and are unable to reconcile forecasted
adjusted earnings per share to a GAAP financial measure without unreasonable
effort because a forecast of Other Items is not practical. We believe that the
presentation of this non-U.S. GAAP measure provides useful information to
management and investors regarding various financial and business trends
relating to our financial condition and results of operations, and that when
U.S. GAAP information is viewed in conjunction with non-U.S. GAAP information,
investors are provided with a more meaningful understanding of our ongoing
operating performance. This non-U.S. GAAP information is not intended to be
considered in isolation or as a substitute for U.S. GAAP financial information.
* The tax rate used for adjusted earnings per share approximates the midpoint in
a range of forecasted tax rates for the year, excluding changes in uncertain tax
positions, discrete items and other material items adjusted out of our U.S. GAAP
earnings for adjusted earnings per share purposes, and changes in management`s
assessments regarding the ability to realize deferred tax assets. 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 significantly from the tax rate used for U.S.
GAAP reporting in any given reporting period. It is not practical to reconcile
our prospective adjusted tax rate to the actual U.S. GAAP tax rate in any future
period.
* Net debt is defined as total debt less cash and cash equivalents. We believe
that the presentation of this non-U.S. GAAP measure provides useful information
to management and investors regarding changes to the company`s capital
structure. Our management and credit analysts use net debt to evaluate the
company's capital structure and assess credit quality. This non-U.S. GAAP
information is not intended to be considered in isolation or as a substitute for
U.S. GAAP financial information.
* Adjusted free cash flow is defined as cash flow from operations less capital
expenditures, other productive asset purchases, operating cash from discontinued
operations and certain other charges and adjustments. We believe that the
presentation of this non-U.S. GAAP measure provides useful information to
management and investors regarding changes to the company`s cash flow. Our
management and credit analysts use adjusted free cash flow to evaluate the
company`s liquidity and assess credit quality. This non-U.S. GAAP information is
not intended to be considered in isolation or as a substitute for U.S. GAAP
financial information.

Results Unaudited

The results presented in this release, 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.

Preliminary Consolidated Statements of Operations - Unaudited

Three Months Ended Nine Months Ended
September 30, September 30,
(in $ millions, except per share data) 2009 2008 2009 2008
Net sales 1,304 1,823 3,694 5,537
Cost of sales (1,038 ) (1,490 ) (2,980 ) (4,390 )
Gross profit 266 333 714 1,147

Selling, general and administrative expenses (110 ) (142 ) (338 ) (416 )
Amortization of Intangible assets 1 (20 ) (19 ) (58 ) (58 )
Research and development expenses (18 ) (18 ) (56 ) (59 )
Other (charges) gains, net (96 ) (1 ) (123 ) (24 )
Foreign exchange gain (loss), net (2 ) (1 ) 1 3
Gain (loss) on disposition of businesses and assets, net 45 (1 ) 41 (1 )
Operating profit 65 151 181 592

Equity in net earnings (loss) of affiliates 19 19 44 46
Interest expense (51 ) (65 ) (156 ) (195 )
Interest income 2 8 7 27
Dividend income - cost investments 19 35 81 138
Other income (expense), net (5 ) 4 (2 ) 9
Earnings (loss) from continuing operations before tax 49 152 155 617

Income tax (provision) benefit 350 12 328 (106 )
Earnings (loss) from continuing operations 399 164 483 511

Earnings (loss) from operation of discontinued operations - (8 ) - (120 )
Income tax (provision) benefit, discontinued operations - 2 - 45
Earnings (loss) from discontinued operations - (6 ) - (75 )

Net earnings (loss) 399 158 483 436
Less: Net earnings (loss) attributable to noncontrolling interests - - - (1 )
Net earnings (loss) attributable to Celanese Corporation 399 158 483 437

Cumulative preferred stock dividend (3 ) (3 ) (8 ) (8 )
Net earnings (loss) available to common shareholders 396 155 475 429

Amounts attributable to Celanese Corporation
Earnings (loss) per common share - basic
Continuing operations $ 2.76 $ 1.09 $ 3.31 $ 3.36
Discontinued operations - (0.04 ) - (0.50 )
Net earnings (loss) - basic $ 2.76 $ 1.05 $ 3.31 $ 2.86

Earnings (loss) per common share - diluted
Continuing operations $ 2.53 $ 1.01 $ 3.08 $ 3.08
Discontinued operations - (0.04 ) - (0.45 )
Net earnings (loss) - diluted $ 2.53 $ 0.97 $ 3.08 $ 2.63

Weighted average shares (millions)
Basic 143.6 147.1 143.5 150.0
Diluted 157.6 162.9 156.7 166.0
1 Customer related intangibles

Preliminary Consolidated Balance Sheets - Unaudited

September 30, December 31,
(in $ millions) 2009 2008
ASSETS
Current assets
Cash & cash equivalents 1,293 676
Trade receivables - third party and affiliates, net 728 631
Non-trade receivables 223 274
Inventories 467 577
Deferred income taxes 60 24
Marketable securities, at fair value 4 6
Assets held for sale 2 2
Other assets 85 96
Total current assets 2,862 2,286

Investments in affiliates 811 789
Property, plant and equipment, net 2,687 2,470
Deferred income taxes 358 27
Marketable securities, at fair value 83 94
Other assets 328 357
Goodwill 806 779
Intangible assets, net 315 364
Total assets 8,250 7,166

LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities
Short-term borrowings and current
installments of long-term debt - third party and affiliates 265 233
Trade payables - third party and affiliates 558 523
Other liabilities 606 574
Deferred income taxes 16 15
Income taxes payable 28 24
Total current liabilities 1,473 1,369

Long-term debt 3,312 3,300
Deferred income taxes 127 122
Uncertain tax positions 225 218
Benefit obligations 1,157 1,167
Other liabilities 1,270 806
Commitments and contingencies
Shareholders' equity
Preferred stock - -
Common stock - -
Treasury stock, at cost (781 ) (781 )
Additional paid-in capital 503 495
Retained earnings 1,505 1,047
Accumulated other comprehensive income (loss), net (543 ) (579 )
Total Celanese Corporation shareholders' equity 684 182
Noncontrolling interests 2 2
Total shareholders' equity 686 184
Total liabilities and shareholders' equity 8,250 7,166

Table 1

Segment Data and Reconciliation of Operating Profit (Loss) to Operating EBITDA -
a Non-U.S. GAAP Measure

Three Months Ended Nine Months Ended
September 30, September 30,
(in $ millions) 2009 2008 2009 2008
Net Sales
Advanced Engineered Materials 220 272 569 866
Consumer Specialties 271 295 817 869
Industrial Specialties 236 378 745 1,129
Acetyl Intermediates 666 1,056 1,860 3,219
Other Activities 1 - - 1 1
Intersegment eliminations (89 ) (178 ) (298 ) (547 )
Total 1,304 1,823 3,694 5,537

Operating Profit (Loss)
Advanced Engineered Materials 21 13 2 80
Consumer Specialties 52 42 184 138
Industrial Specialties 44 18 73 55
Acetyl Intermediates (30 ) 100 22 425
Other Activities 1 (22 ) (22 ) (100 ) (106 )
Total 65 151 181 592

Equity Earnings, Cost - Dividend Income and Other Income (Expense)
Advanced Engineered Materials 11 12 26 32
Consumer Specialties - 1 56 49
Industrial Specialties - - - -
Acetyl Intermediates 21 33 29 95
Other Activities 1 1 12 12 17
Total 33 58 123 193

Other Charges and Other Adjustments 2
Advanced Engineered Materials 7 1 3 3
Consumer Specialties 3 - 6 1
Industrial Specialties (26 ) 3 (18 ) 11
Acetyl Intermediates 87 13 96 33
Other Activities 1 (1 ) 3 13 18
Total 70 20 100 66

Depreciation and Amortization Expense
Advanced Engineered Materials 17 19 53 58
Consumer Specialties 13 13 37 40
Industrial Specialties 11 15 35 43
Acetyl Intermediates 27 36 82 102
Other Activities 1 5 2 9 7
Total 73 85 216 250

Operating EBITDA
Advanced Engineered Materials 56 45 84 173
Consumer Specialties 68 56 283 228
Industrial Specialties 29 36 90 109
Acetyl Intermediates 105 182 229 655
Other Activities 1 (17 ) (5 ) (66 ) (64 )
Total 241 314 620 1,101
1 Other Activities primarily includes corporate selling, general and administrative expenses and the results from captive insurance companies.
2 See Table 7.

Table 2

Factors Affecting Third Quarter 2009 Segment Net Sales Compared to Third Quarter 2008
Volume Price Currency Other 1 Total
Advanced Engineered Materials -14 % -3 % -2 % 0 % -19 %
Consumer Specialties -14 % 7 % -1 % 0 % -8 %
Industrial Specialties -3 % -14 % -1 % -20 % -38 %
Acetyl Intermediates -6 % -30 % -1 % 0 % -37 %
Total Company -8 % -20 % -1 % 1 % -28 %

Factors Affecting Nine Months 2009 Segment Net Sales Compared to Nine Months 2008
Volume Price Currency Other 1 Total
Advanced Engineered Materials -31 % 1 % -4 % 0 % -34 %
Consumer Specialties -11 % 7 % -2 % 0 % -6 %
Industrial Specialties -14 % -9 % -4 % -7 % -34 %
Acetyl Intermediates -12 % -28 % -2 % 0 % -42 %
Total Company -16 % -17 % -3 % 3 % -33 %
1 Includes the effects of the captive insurance companies, the impact of fluctuations in intersegment eliminations and changes related to the sale of PVOH on July 1, 2009.

Table 3

Cash Flow Information
Nine Months Ended
September 30,
(in $ millions) 2009 2008
Net cash provided by operating activities 408 345
Net cash provided by (used in) investing activities 1 191 (169 )
Net cash used in financing activities (52 ) (402 )
Exchange rate effects on cash 70 (15 )
Cash and cash equivalents at beginning of period 676 825
Cash and cash equivalents at end of period 1,293 584
1 2009 includes $412 million of cash received and $248 million of capital expenditures related to the Ticona Kelsterbach plant relocation. 2008 includes $311 million of cash received and $122 million of capital expenditures related to the Ticona Kelsterbach plant relocation.

Table 4

Cash Dividends Received
Three Months Ended Nine Months Ended
September 30, September 30,
(in $ millions) 2009 2008 2009 2008
Dividends from equity investments 2 7 31 62
Dividends from cost investments 19 35 81 138
Total 21 42 112 200

Table 5

Net Debt - Reconciliation of a Non-U.S. GAAP Measure

September 30, December 31,
(in $ millions) 2009 2008
Short-term borrowings and current
installments of long-term debt - third party and affiliates 265 233
Long-term debt 3,312 3,300
Total debt 3,577 3,533
Less: Cash and cash equivalents 1,293 676
Net Debt 2,284 2,857

Table 6

Adjusted Earnings (Loss) Per Share - Reconciliation of a Non-U.S. GAAP Measure

Three Months Ended Nine Months Ended
September 30, September 30,
(in $ millions, except per share data) 2009 2008 2009 2008
Earnings (loss) from continuing operations before tax 49 152 155 617
Non-U.S. GAAP adjustments
Other charges and other adjustments 1 70 20 100 66
Adjusted earnings (loss) from continuing operations before tax 119 172 255 683
Income tax (provision) benefit on adjusted earnings 2 (27 ) (45 ) (66 ) (178 )
Less: Noncontrolling interests - - - (1 )
Adjusted earnings (loss) from continuing operations 92 127 189 506
Preferred dividends (3 ) (3 ) (8 ) (8 )
Adjusted net earnings (loss) available to common shareholders 89 124 181 498
Add back: Preferred dividends 3 3 8 8
Adjusted net earnings (loss) for adjusted EPS 92 127 189 506

Diluted shares (millions) 3
Weighted average shares outstanding 143.6 147.1 143.5 150.0
Assumed conversion of preferred shares 12.1 12.0 12.1 12.0
Assumed conversion of restricted stock units 0.2 0.4 0.2 0.6
Assumed conversion of stock options 1.7 3.4 0.9 3.4
Total diluted shares 157.6 162.9 156.7 166.0
Adjusted EPS 0.58 0.78 1.21 3.05
1 See Table 7 for details
2 The adjusted effective tax rate for the three months ended September 30, 2009 is 23%. The adjusted effective tax rate for the six months ended June 30, 2009 is 29%.
3 Potentially dilutive shares are included in the adjusted earnings per share calculation when adjusted earnings are positive.

Table 7

Reconciliation of Other Charges and Other Adjustments

Other Charges:
Three Months Ended Nine Months Ended
September 30, September 30,
(in $ millions) 2009 2008 2009 2008
Employee termination benefits 65 8 94 19
Plant/office closures 20 - 20 7
Ticona Kelsterbach plant relocation 4 3 10 8
Clear Lake insurance recoveries - (23 ) (6 ) (23 )
Plumbing actions - - (3 ) -
Sorbates settlement - (8 ) - (8 )
Asset impairments 7 21 8 21
Total 96 1 123 24

Other Adjustments: 1
Three Months Ended Nine Months Ended Income
September 30, September 30, Statement
(in $ millions) 2009 2008 2009 2008 Classification
Ethylene pipeline exit costs - - - (2 ) Other (income) expense, net
Business optimization - 9 3 27 SG&A
Ticona Kelsterbach plant relocation 1 (2 ) 3 (6 ) Cost of sales
Plant closures 10 7 16 14 Cost of sales
Gain on sale of PVOH business (34 ) - (34 ) - (Gain) loss on disposition
Other2 (3 ) 5 (11 ) 9 Various
Total (26 ) 19 (23 ) 42

Total other charges and other adjustments 70 20 100 66
1 These items are included in net earnings but not included in other charges.
2 September 30, 2009 year-to-date includes a one-time adjustment to Equity in net earnings (loss) of affiliates of $19 million.

Table 8 - Equity Affiliate Data

Equity Affiliate Preliminary Results - Total - Unaudited

Three Months Ended Nine Months Ended
(in $ millions) September 30, September 30,
2009 2008 2009 2008
Net Sales
Ticona Affiliates1 322 368 761 1,117
Infraserv Affiliates2 547 566 1,544 1,706
Total 869 934 2,305 2,823

Operating Profit
Ticona Affiliates 45 41 35 116
Infraserv Affiliates 36 31 87 79
Total 81 72 122 195

Depreciation and Amortization
Ticona Affiliates 20 16 66 54
Infraserv Affiliates 28 29 75 85
Total 48 45 141 139

Affiliate EBITDA3
Ticona Affiliates 65 57 101 170
Infraserv Affiliates 64 60 162 164
Total 129 117 263 334

Net Income
Ticona Affiliates 24 21 15 67
Infraserv Affiliates 26 24 61 49
Total 50 45 76 116

Net Debt
Ticona Affiliates 212 188 212 188
Infraserv Affiliates 499 358 499 358
Total 711 546 711 546

Equity Affiliate Preliminary Results - Celanese Proportional Share - Unaudited4

Three Months Ended Nine Months Ended
(in $ millions) September 30, September 30,
2009 2008 2009 2008
Net Sales
Ticona Affiliates 148 170 351 515
Infraserv Affiliates 179 182 497 549
Total 327 352 848 1,064

Operating Profit
Ticona Affiliates 21 19 17 53
Infraserv Affiliates 11 10 27 25
Total 32 29 44 78

Depreciation and Amortization
Ticona Affiliates 9 8 30 25
Infraserv Affiliates 9 9 24 28
Total 18 17 54 53

Affiliate EBITDA3
Ticona Affiliates 30 27 47 78
Infraserv Affiliates 20 19 51 53
Total 50 46 98 131

Equity in net earnings of affiliates (as reported on the Income Statement)
Ticona Affiliates5 11 12 7 31
Infraserv Affiliates 8 7 18 15
Total 19 19 25 46

Affiliate EBITDA in excess of Equity in net earnings of affiliates6
Ticona Affiliates 19 15 40 47
Infraserv Affiliates 12 12 33 38
Total 31 27 73 85

Net Debt
Ticona Affiliates 95 86 95 86
Infraserv Affiliates 163 113 163 113
Total 258 199 258 199

1 Ticona Affiliates accounted for using the equity method include Polyplastics (45% ownership), Korean Engineering Plastics (50%), Fortron Industries (50%) and Una SA (50%)
2 Infraserv Affiliates accounted for using the equity method include Infraserv Hoechst (32% ownership), Infraserv Gendorf (39%) and Infraserv Knapsack (27%)
3 Affiliate EBITDA, a non-U.S. GAAP measure, is the sum of Operating Profit and Depreciation and Amortization
4 Calculated by multiplying each affiliate's total share amount by Celanese's respective ownership percentage, netted by reporting category
5 September 30, 2009 year-to-date excludes a one-time tax adjustment to Equity in net earnings of affiliates of $19 million
6 Calculated as Celanese proportion of Affiliate EBITDA less Equity in net earnings of affiliates; not included in Celanese operating EBITDA

Celanese Corporation
Investor Relations
Mark Oberle, +1 972-443-4464
Telefax: +1 972-443-8519
Mark.Oberle@celanese.com
or
Media - U.S.
W. Travis Jacobsen, +1 972-443-3750
Telefax: +1 972-443-8519
William.Jacobsen@celanese.com
or
Media - Europe
Jens Kurth, +49 (0)6107 772 1574
Telefax: +49 (0)6107 772 7231
J.Kurth@celanese.com

Copyright Business Wire 2009