Celanese Corp. (CE) Outlines 2023 Growth Strategy and Outlook at Investor Day
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Celanese Corporation (NYSE: CE), a global chemical and specialty materials company, will host a virtual Investor Day beginning at 9 a.m. Eastern time today from Dallas. Chairman of the Board and Chief Executive Officer, Lori Ryerkerk, and other members of Celanese’s executive management team will provide details on the Company’s business strategies and outline the path for growth through 2023.
“Over the last decade, Celanese has advanced on a path to build unparalleled competitive positions, implement unique business models, and ingrain commercial excellence across the organization,” said Ryerkerk. “We have systematically elevated the fundamental earnings and cash generation profile of the Company over this time. As a result, Celanese has generated a total shareholder return (TSR) of 271 percent1 over the last decade and delivered positive TSR in nine of the last ten years. Additionally, we have returned a total of $6.2 billion in cash to our shareholders over the last decade through share repurchases and dividends.”
Ryerkerk continued, “Our businesses have demonstrated an ability to deliver resilient and strong performance in all environments. Following a challenging 2020 global backdrop, we entered 2021 with tremendous momentum across our businesses. Today, we will outline how we are enhancing Celanese’s strategy to multiply this momentum and deliver double-digit earnings per share growth annually.”
John Fotheringham, Senior Vice President, will outline the strategic actions taken over the last decade to build out the Acetyl Chain’s operating flexibility with regards to product, end market, feedstock, and geography. The business implemented a unique business model to optimize its unmatched optionality and has since delivered a series of earnings and margin profile improvements.
“We will highlight actions we are taking in the Acetyl Chain to layer on additional flexibility across our global network and more dynamically operate our business daily,” said Fotheringham. “In addition to the acetic acid expansion at Clear Lake, we have a number of debottlenecks and capacity additions across our product portfolio to drive continued earnings growth.”
The Acetyl Chain is expected to deliver adjusted EBIT of $900 to $1,000 million in 2023.
Tom Kelly, Senior Vice President, will discuss the breadth of the Engineered Materials’ solution set and the evolution in how the business meets customers’ needs. Engineered Materials is expected to deliver above market volume and earnings growth driven by project model enhancements and focused programs to target high-growth applications like electric vehicles, medical and pharma, 5G, and sustainability. The business continues to invest in incremental capacity expansions across its network including further investment in Asia to support local innovation.
“Beyond strengthening our project pipeline model to build further scale and improve our winning percentage, we have dedicated resources to key programs to drive early wins with customer partners in disruptive and innovative applications,” said Kelly. “These programs are already contributing to our growth and allow us to gain early advantages in areas that will determine material selection for years to come.”
Engineered Materials is expected to deliver adjusted EBIT of $700 to $750 million in 2023.
Lori Ryerkerk will discuss the stable earnings profile of Acetate Tow, with strong contributions from affiliates and continued productivity in the business offsetting the impact of a steady decline in secular demand.
Acetate Tow is expected to deliver a stable adjusted EBIT of approximately $245 million through 2023.
Ryerkerk will also discuss Celanese’s approach to sustainability, the development of a company ESG Council, and recent improvements to the Company’s reporting and disclosure across multiple focus areas. She will also highlight several recent initiatives focused on important environmental and societal priorities as well as a growing portfolio of products to meet rising demand for sustainable solutions.
Scott Richardson, Chief Financial Officer, will discuss how Celanese’s approach to balanced capital allocation has driven consistent shareholder value creation over the last decade. Under the current strategic outlook, the Company expects to continue to deliver double-digit adjusted earnings per share growth on an annualized basis. The current financial outlook period will extend through 2023, culminating with expected adjusted earnings per share of $13.00 to $14.00 per share in 2023. Over this three-year period, the Company expects to generate a total of $4 to $5 billion in operating cash flow to be deployed to drive growth.
“We are accelerating our capital deployment cycle to allocate greater capital to our highest return organic opportunities,” said Richardson. “We remain committed to returning cash to our shareholders via dividends, which we expect to grow in line with future earnings, as well as share repurchases. Given robust cash generation and the strength of the Celanese balance sheet, we anticipate flexibility to deploy up to $6 billion towards other capital allocation priorities including high-return M&A and share repurchases.”
The event will begin at 9:00 a.m. Eastern time and will conclude at approximately 12:00 p.m. Details and access to the live event are available at https://investors.celanese.com under News & Events/Events Calendar.
Presentation materials will be available at https://investors.celanese.com at approximately 6:00 a.m. Eastern time today. Access to a replay of the presentations will be available on the website for six months following the event.
December 31, 2010 – December 31, 2020
The Company is unable to reconcile adjusted earnings per share to US GAAP diluted earnings per share, or adjusted EBIT to net earnings (loss) attributable to Celanese Corporation, on a forward-looking basis without unreasonable efforts because a forecast of Certain Items, such as mark-to-market pension gains/losses, is not practical. For more information, see "Non-GAAP Financial Measures" below.
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