Chemical and advanced materials maker
) fourth-quarter 2013 adjusted earnings (excluding one-time
items) of $1.04 per share beat the Zacks Consensus Estimate of
Earnings (as reported) from continuing operations came in at
$4.16 per share in the quarter, compared with a loss of $1.05
recorded a year ago.
For full-year 2013, adjusted earnings came in at $4.50 per share,
up exceeding the Zacks Consensus Estimate of $4.47. Earnings (as
reported) from continuing operations were $6.91 per share, up
194% year over year from $2.35 per share reported a year ago.
Sales in the quarter were $1,616 million, up 7.7% year over year,
surpassing the Zacks Consensus Estimate of $1,560 million. For
full-year 2013, sales were $6,510 million, up 1.4% year over
Advanced Engineered Materials:
Sales decreased 6.1% sequentially to $325 million in the fourth
quarter. The segment's adjusted earnings before interest and
taxes (EBIT) decreased 30.9% sequentially and income margin
dropped to 17.2% in the quarter. Volumes declined 4% due to
normal and expected seasonal trends in North America and Europe
which offset sustained penetration in autos riding on innovative
applications. However, operating profit increased to $781 million
in the quarter due to gains associated with the final disposition
of the Kelsterbach site and pension accounting.
Sales declined 4.8% sequentially to $295 million in the fourth
quarter. The segment's adjusted EBIT increased 2.8% from the
previous quarter to $111 million and income margin increased 280
basis points (bps) to 37.6%. Volumes declined 5% sequentially but
were offset by higher dividends from Celanese's cellulose
derivatives ventures and continued success from Celanese-specific
Net sales decreased 8.7% from the previous quarter to $273
million. Adjusted EBIT decreased 48% sequentially to $13 million.
Volumes decreased 10% sequentially due to normal fourth quarter
seasonality in emulsion polymers in Europe and Asia. Price and
raw material costs were flat compared with the prior quarter.
The segment's sales rose 4.3% from the previous quarter and came
in at $829 million. Adjusted EBIT increased 16.7% sequentially to
$84 million despite challenging demand environment and
considerably higher raw materials costs in the quarter. Income
margin increased 100 bps to 10.1%. Volumes increased 2%
sequentially due to higher VAM volumes. Pricing increased 1% due
to higher methanol costs in the fourth quarter.
Cash and cash equivalents were $984 million as of Dec 31, 2013,
up roughly 3% from $959 million as of Dec 31, 2012. The company's
long-term debt stood at $2,887 million as of Dec 31, 2013, down
1.5% from $2,930 million as of Dec 31, 2012. Celanese generated
$154 million in cash from operating activities in the reported
quarter on the back of strong earnings.
Cash dividends received in the fourth quarter from equity
investments were $38 million compared with $11 million in the
previous quarter. During the fourth quarter, the Celanese
received a quarterly dividend of $24 million from its cellulose
derivatives ventures, $3 million more than the prior quarter.
AIR LIQUIDE-ADR (AIQUY): Get Free Report
ASHLAND INC (ASH): Free Stock Analysis Report
CELANESE CP-A (CE): Free Stock Analysis
NORTHERN TECH (NTIC): Free Stock Analysis
To read this article on Zacks.com click here.
For 2014, Celanese expects earnings growth on the back of
company-specific initiatives to be consistent with its long-term
growth plan. The company-specific initiatives including
innovation of new products and enhancement of efficiencies
through productivity are expected to drive earnings growth in
2014. Celanese expects to grow adjusted EBIT by roughly $100
million on the back of its strategic actions.
Celanese currently carries a Zacks Rank #4 (Sell).
Some better-ranked stocks in the chemical industry include
L'Air Liquide SA
Northern Technologies International Corp.
). While L'Air Liquide and Northern Technologies International
hold a Zacks Rank #1 (Strong Buy), Ashland retains a Zacks Rank