Celanese Q2 Report 2023

Celanese Corporation (NYSE: CE), a global chemical and specialty materials company, today reported
second quarter 2023 GAAP diluted earnings per share of $2.00 and adjusted earnings per share of $2.17. The Company
generated net sales of $2.8 billion in the quarter, a decrease of 2 percent from the prior quarter, reflecting a sequential decrease
in pricing of 4 percent partially offset by a sequential increase in volume of 2 percent. The Company reported second quarter
consolidated operating profit of $335 million, adjusted EBIT of $444 million, and operating EBITDA of $616 million,
sequential increases of 33, 5, and 3 percent, respectively.
The Company initiated incremental actions to reduce cost, align production and inventory levels with demand, and maximize
cash generation in response to continued demand softness, destocking across certain end-markets, and heightened competitive
dynamics. As a result, the Company:
• Reduced inventory balances by $235 million in the second quarter with inventory reductions across Engineered
Materials and the Acetyl Chain of 10 percent and 5 percent, respectively;
• Generated second quarter operating cash flow of $762 million and free cash flow of $611 million, all-time records by
$132 million and $91 million, respectively; and
• Reduced net debt by $515 million in the second quarter, including a $386 million sequential decrease in debt and a
$129 million sequential increase in cash.
“While we continue to navigate a persistently soft demand environment and volatile competitive backdrop, our team executed
incremental actions that enabled us to deliver sequential earnings growth and record cash generation in the second quarter,” said
Lori Ryerkerk, chair and chief executive officer. “Our priority is to continue to maximize cash generation and I thank our team
for exceeding our working capital reduction target in the second quarter to support free cash flow that was 18 percent higher
than any quarter in our history. With strong free cash flow and anticipated net proceeds of approximately $450 million from the
Food Ingredients joint venture, I am confident that we will meaningfully exceed the full year objective to reduce net debt by
$1 billion in 2023.”