Chemical and advanced materials maker
) reported fourth-quarter 2012 adjusted earnings (excluding
one-time items) of 67 cents per share, exceeding the Zacks
Consensus Estimate of 63 cents and the year-ago earnings of 58
cents per share. The company's cost reduction measures aided
earnings as well as operating margin expansion in the
Earnings (as reported) from continuing operation were 60 cents
a share in the quarter compared with 61 cents recorded a year
For full-year 2012, adjusted earnings came in at $3.80 per
share, down 15% from $4.47 a year ago. However, it beat the Zacks
Consensus Estimate of $3.76. Earnings per share from continuing
operations, as reported, were flat year over year at $3.81.
Revenues and Margins
Sales for the quarter were $1,501 million, down 7% year over
year, missing the Zacks Consensus Estimate of $1,534 million. The
decline was due to lower volumes in the company's acetyl
intermediates segment and the Acetate footprint rationalization
in its Consumer Specialties segment. Lower pricing also hurt
For full-year 2012, revenues came in at $6,418 million, a year
over year increase of 5.1%, but below the Zacks Consensus
Estimate of $6,633 million.
Advanced Engineered Materials:
Sales increased 2.3% year over year to $299 million in the fourth
quarter, despite challenging economic conditions in Europe, as
the company's new solutions for customers contributed to higher
volumes. Operating EBITDA was up 20.5% to $88 million due higher
volumes and higher equity earnings.
Sales decreased 8.2% year over year to $281 million, due to 13%
lower volumes as a result of the closure of a facility. Pricing,
however, increased 5% on strong global demand. Operating EBITDA
rose 17.8% to $83 million. The segment closed its Acetate
facility at its Spondon site and placed itself for further
Net sales decreased 7.7% from the year-ago quarter to $251
million. Volumes increased 2% on increased demand in North
America and Asia, offset by lower European volumes. Pricing was
also lower in the quarter due to soft demand in Ethylene Vinyl
Acetate (EVA) applications and lower raw material costs.
Operating EBITDA declined 33.3% to $20 million as record results
in Emulsions were more than offset by lower demand for EVA
The segment witnessed a 9% decline in sales to $773 million, due
to lower acetyl pricing and demand. Operating EBITDA decreased
7.4% to $88 million.
Cash and cash equivalents were $959 million as of Dec 31,
2012, versus $682 million as of Dec 31, 2011. The company's
long-term debt stood at $2,930 million as of Dec 31, 2012,
compared with $2,873 million as of Dec 31, 2011. The company
generated $722 million in cash from operating activities in 2012,
up $84 million from 2011 due to lower trade working capital.
Celanese expects the challenging economic conditions to
persist in 2013. For 2013, it expects earnings growth on the back
of company-specific initiatives and to be consistent with its
long-term growth objective of 12% to 14%. The company remains
focused on enhancing the competitiveness of its products through
Celanese currently retains a short-tem Zacks Rank #3
Other companies in the chemical industry with favorable Zacks
Air Products and Chemicals
). While both Arkem and BASF carry a Zacks Rank #1 (Strong Buy),
Air Products holds a Zacks Rank #2 (Buy).
AIR PRODS & CHE (APD): Free Stock Analysis
(ARKAY): ETF Research Reports
BASF SE (BASFY): Free Stock Analysis Report
CELANESE CP-A (CE): Free Stock Analysis
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