[CELANESE LOGO OMITTED]
INVESTOR INFORMATION Celanese Corporation
Investor Relations
1601 West LBJ Freeway
Dallas, TX 75234-6034
Mark Oberle
Phone: +1-972-443-4464
Fax: +1-972-332-9373
Mark.Oberle@celanese.com
CELANESE CORPORATION CONFIRMS THIRD QUARTER GUIDANCE;
RAISES FULL YEAR GUIDANCE RANGE FOR DILUTED ADJUSTED EPS TO $1.95 TO
$2.05 PER SHARE ON PROGRESS IN CELANESE AG SHARE OWNERSHIP
DALLAS, Texas, October 28, 2005 - Celanese Corporation today announced that
third quarter diluted adjusted earnings will be within the company's guidance
range of between $0.45 and $0.50 per share. The company also announced that it
is raising full year 2005 guidance on diluted adjusted earnings per share from
$1.90 to $2.00 per share to $1.95 to $2.05 per share based on the benefits of
the company's recently increased ownership of Celanese AG.
The company reaffirmed its guidance for adjusted EBITDA of $240 million
to $260 million for the third quarter and $1,060 million to $1,090 million for
the full year.
"In spite of the challenges of Hurricane Rita and higher raw material
and energy costs, our businesses continue to perform within expectations," said
Weidman. "While our more specialty, downstream businesses will come under
pressure in this environment, the company's rigorous focus on cost control and
productivity improvement will help to maintain our projected earnings
performance. We are raising our 2005 guidance to reflect the positive financial
impact of the share purchase progress we have made with shareholders of Celanese
AG."
The increased ownership of Celanese AG results in lower minority
interest and a reduction in the quarterly charge for the guaranteed annual
payment to Celanese AG shareholders. As a result of the agreement reached with
two minority shareholders in August and the ongoing tender offer, Celanese
Corporation owned approximately 96% of Celanese AG's outstanding shares as of
September 30, 2005 and approximately 98% as of October 27, 2005. The company
estimates the 2005 full year impact on diluted adjusted earnings per share to be
between $0.04 and $0.08 per share.
Due to a timing conflict with another chemical company, Celanese
Corporation has changed the time it will hold its third quarter conference call.
The conference call is now scheduled for 1 p.m., Eastern Time, instead of at 11
a.m., on Monday, November 7. The nine months ended September 30, 2005 and the
third quarter results, which are not yet available, will be released on November
7 prior to the call.
ABOUT CELANESE
Celanese Corporation (NYSE:CE) is an integrated global producer of value-added
industrial chemicals based in Dallas, Texas. The Company has four major
businesses: Chemicals Products, Technical Polymers Ticona, Acetate Products and
Performance Products. Celanese has production plants in 13 countries in North
America, Europe and Asia. In 2004, Celanese Corporation and its predecessor had
combined net sales of $5.1 billion. The presentation of combined net sales of
Celanese Corporation with its predecessor is not in accordance with U.S. GAAP.
For more information on Celanese Corporation including a reconciliation of the
combined net sales, please visit the company's web site 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 "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 filing
with the SEC. 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 two performance measures, adjusted EBITDA, and diluted
adjusted earnings per share 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 adjusted EBITDA is net earnings (loss);
and for diluted adjusted earnings per share is diluted earnings per share. For a
reconciliation of these non-U.S. GAAP measures to U.S. GAAP figures, see the
accompanying schedules to this release.
Use of Non-U.S. GAAP Financial Information
Adjusted EBITDA, a measure used by management to measure performance, is defined
as earnings (loss) from continuing operations, plus interest expense net of
interest income, income taxes and depreciation and amortization, and further
adjusted for certain cash and non-cash charges. Our management believes adjusted
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. Adjusted EBITDA is not a recognized
term under U.S. GAAP and does not purport to be an alternative to net earnings
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 adjusted EBITDA may not be comparable to other similarly
titled measures of other companies. Additionally, adjusted 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. Diluted adjusted earnings per share is defined as net
earnings available to common shareholders adjusted for special and one-time
expenses divided by the number of common shares outstanding as of the end of the
previously reported period and assuming conversion of all preferred shares into
common stock and dilution from the exercise of options under the treasury stock
method under FAS 128. We believe that the presentation of all of the non-U.S.
GAAP information 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.
GUIDANCE DILUTED ADJUSTED EPS
Q3 2005 MID- Q3 2005 MID- FY 2005 MID- FY 2005 MID-
POINT GUIDANCE POINT GUIDANCE POINT GUIDANCE POINT GUIDANCE
in $ millions, except for share and per share data DILUTED EPS DILUTED ADJ. EPS DILUTED EPS DILUTED ADJ. EPS
======================================================= ================ ================== ================ ==================
NET EARNINGS FOR DILUTED EPS 48 48 134 134
- ------------------------------------------------------------------------ ------------------ ---------------- ------------------
Special charges and inventory purchase accounting
adjustments 30
Special charges, inventory purchase accounting
adjustments, monitor fee, refinancing costs and
non-operating foreign exchange position 218
Tax rate differential 3 (19)
- ------------------------------------------------------------------------ ------------------ ---------------- ------------------
NET EARNINGS FOR DILUTED EPS 48 81 134 333
======================================================================== ================== ================ ==================
DILUTED SHARES (THOUSANDS)
Weighted average shares outstanding 158,530 158,530 158,530 158,530
Conversion of Preferred Shares 12,000 12,000 12,000 12,000
Assumed conversion of stock options - - - -
- ------------------------------------------------------------------------ ------------------ ---------------- ------------------
Total diluted shares 170,530 170,530 170,530 170,530
- ------------------------------------------------------------------------------------------- -----------------------------------
DILUTED EPS 0.28 0.47 0.79 1.95
======================================================================== ================== ================ ==================
IMPACT OF INCREASED CELANESE AG OWNERSHIP:
Impact in Other income/expense 0.02 0.02
Impact on Minority interest 0.03 0.03
- ------------------------------------------------------------------------------------------- -----------------------------------
REVISED FULL YEAR GUIDANCE 0.84 2.00
================================================================================================================================
GUIDANCE ADJUSTED EBITDA -- MIDPOINT
GUIDANCE GUIDANCE
in $ millions Q3 2005 FY 2005
==============================================================================================
Net earnings (loss) 48 134
(Earnings) loss from discontinued operations - -
Interest expense 90 412
Interest income (5) (34)
Income tax provision (benefit) 32 105
Depreciation and amortization 66 252
-------------------------------------------------------------------------------- -------------
EBITDA 231 869
Adjustments:
Cash dividends received in excess of equity in net earnings
of affiliates (7) (4)
Special charges 15 105
Other unusual items and adjustments * 11 105
----------------------------------------------------------------------------------------------
ADJUSTED EBITDA 250 1,075
==============================================================================================
*Primarily includes the following:
Excess of minority interest income over cash dividends paid to minority
shareholders
Severance and other restructuring charges not included in special charges
Cash interest income used by captive insurance subsidiaries to fund operations
Unusual and non-recurring items
Advisor monitoring fee
