Specialty chemical products maker Celanese Corporation (CE), Tuesday, reported a better-than-expected profit for the fourth quarter, compared to a loss last year, reflecting an increase in sales driven by higher volumes stemming from improved product demand.
For the quarter, net earnings attributable to the company was $5 million compared to a loss of $155 million last year. Net earnings available to common shareholders, after cumulative preferred stock dividends, was $3 million compared to loss of $157 million last year. Earnings per share for the quarter was $0.02 compared to $1.09 loss per share last year.
Earnings from continuing operations was $1 million compared to a loss of $140 million last year. Loss per share from continuing operations was $0.01 compared to $0.99 last year. Earnings from discontinued operations was $4 million or $0.03 per share compared to loss of $15 million or $0.10 per share last year.
Adjusted earnings from continuing operations was $79 million or $0.50 per share compared to loss of $58 million or $0.40 per share last year. On average, nine analysts polled by Thomson Reuters expected the company to report earnings of $0.47 per share. Analysts' estimates typically exclude special items.
Adjusted earnings excludes $17 million of other net charges and adjustments, primarily related to manufacturing and administrative restructuring. Prior-year quarter's results include $94 million of fixed asset impairment charges, primarily related to the closure of the acetic acid and vinyl acetate monomer production facility and its VAM production unit.
Operating profit was $109 million compared to a loss of $152 million last year. Excluding impairment charges, operating profit increased due to higher volumes and the positive impact of the company's fixed spending reduction efforts.
Net sales grew 8% to $1.39 billion from $1.29 billion last year, primarily driven by improved global demand for Acetyl Intermediates and Advanced Engineered Materials products, partially offset by lower pricing, driven by continued low industry utilization and lower raw material input costs. Six analysts were looking for revenues of $1.25 billion for the quarter.
Segment-wise, Advanced Engineered Materials sales improved to $239 million from $195 million last year, helped by higher volumes across all end-markets and geographies as well as positive currency impact.
Sales from Acetyl Intermediates segment was $743 million compared to $656 million last year, mainly due to higher volumes driven by stronger year-over-year global demand as well as positive currency impact.
Consumer Specialties segment's sales declined to $267 million from $286 million last year, reflecting lower consumer demand and continued customer inventory destocking, partially offset by higher pricing in Acetate products and positive currency impacts.
Industrial Specialties sales dropped to $229 million from $277 million last year. Prior-year quarter included $54 million of sales from PVOH business, which was divested in July 2009. Industrial Specialties segment experienced volume recovery in its emulsions and EVA performance polymers businesses, offset by reduced average pricing related to lower raw material costs, particularly for VAM and ethylene.
For the full year, net earnings attributable to the company was $488 million compared to $282 million last year. Net earnings available to common shareholders was $478 million compared to $272 million last year. Net earnings per share was $3.11 compared to $1.73 last year.
Earnings from continuing operations was $484 million or $3.08 per share compared to $371 million or $2.28 per share last year.
Adjusted earnings from continuing operations for the year was $268 million or $1.71 per share compared to $449 million or $2.75 per share last year. Net sales declined to $5.08 billion from $6.82 billion last year. Analysts' expected the company to report full year earnings of $1.67 per share on revenues of $4.94 billion.
Looking ahead, David Weidman, chairman and chief executive officer, said "We saw sustained global demand across our major end-markets and geographies throughout the second half of 2009 and expect this trend to continue in 2010. Even without significant improvement in the global economies in the short term, we are confident that the execution of our strategies will drive improved earnings in 2010 and throughout an economic recovery."
CE shares are currently trading at $29.85 per share, up 0.95% on the NYSE.
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