Celanese Corporation

The global chemical and specialty materials company Celanese Corporation recently reported the results of this quarter where the adjusted earnings per share were $2.01 and GAAP diluted earnings per share was $0.86. Net sales showed a sequential volume increase of 19% over the previous quarter. Because of an additional month of sales from the M&M (Mobility &Materials) acquisition and demand recovery in Asia and Europe with the progress in the quarter, volume increased. The company exercised its global supply chain and commercial flexibility to capture improved demand as well as to offset the effect of sequentially lower variable margins over many products because of moderation in input costs that was offset by pricing declines. Celanese Corporation also delivered a significant sequential increase in the M&M earnings contribution mainly due to higher sequential volume and around $10 million in savings from cost synergies. The Acetyl Chain delivered net sales of $1.3 billion, an incre10% from the prior quarter. Demand for acetyls in Asia and Europe improved significantly. Additionally, the company signed an agreement with Glaukos Corporation to supply Glaukos with its VitalDose Drug Delivery Platform. We give Celanese Corporation a ‘Hold’ rating with a revised target price.