(RTTNews) - Celanese Corp. (CE: News ), a chemical company, reported Tuesday that its third-quarter profit more than doubled from last year, driven by a significant tax benefit. On an adjusted basis, quarterly earnings per share fell on lower net sales, yet both earnings as well as top line beat market projections.

Net earnings for the quarter attributable to Celanese was $399 million or $2.53 per share, compared to $158 million or $0.97 per share last year. Net earnings attributable to common shareholders grew to $396 million from $155 million a year ago.

Excluding prior year's discontinued operations, quarterly earnings of $2.53 per share surged from $1.01 per share in the prior year quarter.

The latest quarter results included a net $70 million of other charges and other adjustments, primarily associated with the announced closure of the company's acetic acid and vinyl acetate monomer, or VAM, production operations in Pardies, France, which were partially offset by the gain on sale of the PVOH business. The results also included a benefit of about $382 million related to a deferred tax benefit associated with the release of certain income tax valuation allowances.

On an adjusted basis, net earnings declined to $92 million or $0.58 per share from prior year's $127 million or $0.78 per share.

On average, 9 analysts polled by Thomson Reuters expected the company to report earnings of $0.43 per share for the quarter. Analysts' estimates typically exclude special items.
Net sales declined 28% to $1.30 billion from $1.82 billion in the year ago quarter, yet beat four analysts' consensus estimate of $1.26 billion. According to the company, the ongoing global recession continuing to impact year-over-year comparisons, and the decline in net sales was primarily driven by lower pricing for Acetyl Intermediates and Industrial Specialties products, resulting from lower raw material costs and decreased volumes on weak global demand.

Operating profit was $65 million, lower than last year's $151 million, and operating EBITDA in the period fell to $241 million from $314 million in the prior year period.

Commenting on the results, David Weidman, chairman and chief executive officer, stated, "We are very pleased with the strong performance across all of our segments. Our leading global businesses and significant reductions in fixed spending are driving the sustainable earnings performance we expect in this part of an economic cycle. Our third quarter results reflect stabilization in demand across our major geographies and end-use applications with modest recovery in select areas. Continued strength in Asia and the benefits of government-sponsored programs in the North American automotive and related industries also contributed positively to our results."

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