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Celanese (CE)
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Celanese Names Mark Oberle Senior Vice President – Corporate Affairs
Business Wire  9 hrs ago  Comment 
Celanese Corporation (NYSE:CE), a leading, global chemical company, today announced that Mark Oberle has been named senior vice president – Corporate Affairs. In addition to retaining oversight for investor relations, global communications and
Celanese (CE) Posts Q4 EPS of $0.50, Beats by 3c
StreetInsider.com  10 hrs ago  Comment 
Visit StreetInsider.com at http://www.streetinsider.com/Earnings/Celanese+%28CE%29+Posts+Q4+EPS+of+%240.50%2C+Beats+by+3c/5320951.html for the full story.
Celanese Corporation Reports Fourth Quarter and Full Year Results
Business Wire  10 hrs ago  Comment 
Celanese Corporation (NYSE: CE): Fourth quarter highlights: Net sales were $1,388 million, up 8% from prior year period Operating profit was $109 million versus ($152) million in prior year period Net earnings were $5 million versus ($155) million in
CE currencies slightly higher as risk aversion recedes
FX Street  Feb 9  Comment 
Headlines Currencies: CE currencies slightly higher as risk aversion recedes Fixed Income: Czech... For more information, read our latest forex news and reports.
Global turmoil weighs on CE currencies
FX Street  Feb 5  Comment 
Headlines Currencies: Global turmoil weighs on CE currencies Fixed Income: Hungarian 10-year yields... For more information, read our latest forex news and reports.
Celanese (CE) NewsBite - Buy Rating Lifts CE
Market Intelligence Center  Feb 2  Comment 
Celanese (NYSE: CE) opened at $30.16. So far today, the stock has hit a low of $30.11 and a high of $31.74. CE is now trading at $31.37, up $1.32 (4.39%). Over the last 52 weeks the stock has ranged from a low of $7.44 to a high of $34.77. CE is...
Alphatec Spine Receives CE Mark for its OsseoScrew(TM) Spinal Fixation System and Its GLIF/ ARC(TM) Portal Access System
Globe Newswire  Feb 2  Comment 
CARLSBAD, Calif., Feb. 2, 2010 (GLOBE NEWSWIRE) -- Alphatec Holdings, Inc. (Nasdaq:ATEC), the parent company of Alphatec Spine, Inc., a medical device company that designs, develops, manufactures, and markets products for the surgical treatment of
Celanese Announces Price Increases for Ticona GUR® Products
Business Wire  Feb 1  Comment 
Celanese Corporation (NYSE: CE), a leading, global chemical company, and its Ticona engineering polymers business, today announced a global price increase of 15 percent on all GUR® UHMW-PE and GHR® VHMW-PE with effect from March 1, 2010, or as
Celanese Corporation Announces Redemption of 4.25% Convertible Perpetual Preferred Stock
Business Wire  Feb 1  Comment 
Celanese Corporation (NYSE:CE), a leading, global chemical company, announced today that it has called for redemption all 9.6 million shares of its outstanding 4.25% Convertible Perpetual Preferred Stock (the “Preferred Stock”), bearing CUSIP
CE currencies rather resilient in face of Greek debt problems
FX Street  Jan 28  Comment 
Headlines Currencies: CE currencies rather resilient in face of Greek debt problems. Fixed Income: Strong Czech 3-year bond auction helps sentiment improve somewhat. Czech Republic The Czech koruna extended its losses on Wednesday as increased...



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Celanese Corporation (NYSE: CE) is a chemical company whose largest revenue source (making up about half or revenue) is the sale of acetyl intermediates - a group of chemicals used to make finished products such as house paint, detergents, plastics, agricultural chemicals, and photographic film - among many others.

The company is divided into four different divisions: Advanced Engineered Materials, Consumer Specialties, Industrial Specialties, and Acetyl Intermediates.[1] The company has 36 production facilities around the world. [2]

Celanese has decided to expand its operations in Asia, particularly China, exposing it to risks and opportunities in that region. [3] In 2007, the company built a new integrated chemical complex in Nanjing, China. [4] With 71% of revenue coming from outside of North America, foreign exchange rates have an impact on Celanese’s US dollar denominated profits. [5]


Business Overview

Celanese sells chemicals to the automotive, electronics, medical, telecommunications, pharmaceuticals, food & beverage, textile, paper, and construction industries. [6] It is a global company and has 36 production facilities around the world.[7] The following chart is a breakdown of sales (revenue) by geography:

[8]

Business and Financial Metrics

Total Revenue grew 11.5% in Fiscal 2007 to $6,444 million from $5,778 million and Operating Income grew 21% in 2007 to $748 million from $620 million. Operating Income is a good indicator of the company's performance because it removes the variability of tax rates across the many nations (the US, South Korea, China, Japan, Germany, Mexico, Canada, and Saudi Arabia[9][10]) it operates in and the year-to-year differences in interest income or expense. [11]

Contents

[12]
Year[13] Revenue[14] Operating Income[15] Net Income[16]
20044927118-175
20055270486277
20065778620406
20076444748426

Business Segments

Acetyl Intermediates is the largest segment, accounting for 46% of total revenue. The following is a break down of revenue from four segments of the company: Acetyl Intermediates, Advanced Engineered Materials, Consumer Specialties, and Industrial Specialties. Acetyl Intermediates makes chemicals used in the production of paints, adhesives, and textiles. Advanced Engineered Materials makes components for automobiles, electronics, and batteries. Consumer Specialties makes cigarette filters and artificial sweeteners. Industrial Specialties makes products used in packaging, construction, and textiles.

[17]

Advanced Engineered Materials (16% of revenue, 18% of operating income) [18]

This segment earned $1,030 million in revenue in 2007.[19] It produces Polyacetal products (“POM”), Ultra-high molecular weight polyethylene (“GUR”), Liquid crystal polymers (Vectra), Polyphenylene sulfide (“PPS”), Polybutylene terephthalate (“PBT”), Polyester engineering resins, and Long fiber reinforced thermoplastics.[20] Of these POM and GUR are the segment's primary products. POM is used in automotive components, electronics and appliances.[21] GUR is used in battery separators, conveyor belts, filtration equipment, coatings and medical devices.[22] Its other products are used to make fuel system components, conveyor belts, battery separators, electronics, seat belt mechanisms, appliances, filtrations, coatings, medical devices, and telecommunications.[23]

[24]

Consumer Specialties (17% of revenue, 27% of operating income)[25]

Consumer Specialties earned $1,111 million in revenue in 2007.[26] It is divided into two main business lines: Acetate Products and Nutrinova.[27] Acetate Products mainly produces acetate tow and acetate flake, used primarily to make cigarette filters and other filters.[28][29] The Sunett sweetener and food preservatives are the main products of the Nutrinova business.[30] Sunett is used in a variety of beverages and dairy products.[31] The food preservatives, sorbic acid and sorbates, are used in the food, beverage, and personal care industries. [32]

[33]

Industrial Specialties (21% of revenue, 4% of operating income)[34]

Industrial Specialties earned $1,346 million in revenue in 2007 and has three main business lines: Emulsions, PVOH (Polyvinyl alcohol), and AT Plastics.[35] Emulsions, specializing in vinyl acetate and ethylene emulsions, and PVOH make products that are used in paints, coatings, adhesives, construction, glass fiber, textiles, and paper.[36] AT Plastics makes low-density polyethylene and ethylene vinyl acetate resins, which are used in flexible packaging, lamination products, hot melt adhesive, medical tubing, and automotive parts. [37]

[38]

Acetyl Intermediates (46% of revenue, 82% of operating income)[39]

Acetyl Intermediates earned $2,955 million in revenue in 2007. [40] It produces VAM (vinyl acetate monomer), acetic anhydride, acetaldehyde, ethyl acetate, butyl acetate, and methyl ethyl ketone. VAM is used to make paints, films, coatings, and textiles. [41] Acetic anhydride is used to make cellulose acetate, detergents and pharmaceuticals. [42] Acetaldehyde is used in agricultural products. [43] Ethyl acetate is used to make inks and adhesives used in photographic films and coated papers. [44] Butyl acetate is a solvent used in inks, pharmaceuticals, and perfume. Methyl ethyl ketone is a solvent used in printing inks and magnetic tapes. [45]

[46]

Key Trends and Forces

Celanese has invested in Asian Economies, exposing it to fluctuations in their growth

Celanese has been expanding its facilities and operations in Asia, particularly China. In 2007 Celanese completed a fully integrated chemical complex in Nanjing, China.[47] As the “Employees by Region” table shows, the number of employees in North America and Europe has declined 12.8% from 2005 to 2007.[48] However, during the same time period the number of employees in Asia increased by 150% from 200 to 500.[49] Additionally, the “Largest Investments” table shows that of Celanese’s 7 largest investments, 6 are in companies located in Asia.[50]


Employees by Region from 2005 to 2007
Employees by Region from 2005 to 2007 [51]
Largest Investments as of December 31, 2007
Largest Investments as of December 31, 2007 [52]


Euros/USD from June 11, 2007 to June 11, 2008
Euros/USD from June 11, 2007 to June 11, 2008[53]

Celanese has the majority of its sales from outside the U.S., making its profits susceptible to foreign exchange rate fluctuations

International revenue (71% of revenue comes from outside North America[54]) is converted into U.S. dollars when it is tallied for accounting purposes, so depreciation of the dollar boosts revenue. However, the company has €400 million of debt so a weakening of the dollar makes it more difficult to pay the Euro-denominated debt back. [55][56] Beginning in 2004 Celanese began doing currency swaps with financial institutions in order to protect itself from exchange rate fluctuations. Twice a year on June 15th and December 15th Celanese would pay €13 million and receive $16 million.[57] As a result by June 2008, the company had lost a total of $26 million from the currency swaps.[58]

Environmental regulations make Celanese liable for asbestos cases and the clean-up costs of contaminated sites, requiring millions of dollars in reserves for these liabilities

Many different environmental laws have an effect on Celanese. Listed below are some of the most significant acts from Celanese's perspective:

  • As of June 30, 2008, Celanese is a defendant in 611 asbestos cases. [59] In the 3 months leading up to June 30, 2008, 19 new cases were added and 41 cases were resolved. [60] Currently, Celanese has $109 million in reserves to pay for environmental remediation matters. [61] The company spent $6 million in the first 6 months of 2008 for environmental remediation.[62]
  • As a result of the US Federal Comprehensive Environmental Response, Compensation and Liability Act of 1980, Celanese is liable for the investigation and cleanup costs of approximately 50 sites. [63] The company does not have definite estimate of the costs because of the many variables that decide liability, but it has set aside $12 million to pay for these expenses and spent $1 million on these sites during the first 6 months of 2008.[64]
  • In 2008 the Canadian Environmental Protection Act classified VAM, a major chemical produced by the Acetyl Intermediates segment, as a "toxic substance", restricting the chemical's use in Canada. [65]
  • Additionally, differences in regulation between countries makes its difficult to have uniform production processes.[66]

Competition

Competitors by segment:

Advanced Engineered Materials' main competitors are BASF SE (BASFY), DuPont (DD), Koninklijke DSM N.V. (RDSMY), Sabic Innovative Plastics, and Solvay S.A. (SVYSY). It also competes with smaller regional firms such as Asahi Kasei Corporation, Mitsubishi Gas Chemicals, Inc., Chevron Phillips Chemical Company, Braskem SA (BAK), Lanxess AG, Teijin Ltd (TINLY), Sumitomo, Inc., and Toray Industries INc. (TRYIY).[67]

Data from 2007
Ashland (ASH)[68] Koninklijke DSM N.V. (RDSMY) [69] DuPont (DD) [70] Solvay S.A. (SVYSY)[71]
Total Revenue (in millions of USD) 7,834 8,921 30,653 9,572
Growth from 2006 7.6% 3.0% 5.8% 1.8%
Net Profit Margin 2.57% 4.86% 9.77% 8.65%



Consumer Specialties as two sets of competitors. The subgroup Acetate Products competes with Daicel Chemical Industries Ltd., Eastman Chemical Company (EMN), and Rhodia (RHAYY) . Nutrinova's Sunett sweetener competes with sweeteners from the Nutra-Sweet Company, Ajinmoto Inc. (AJINY), and Tate & Lyle PLC (TATYY). Nutrinova's sorbates compete with Nantong AA, Daicel Chemical Industries Ltd., and Yancheng AmeriPac.[72]

Data from 2007
Ashland (ASH)[73] Eastman Chemical Company (EMN)[74] Tate & Lyle PLC (TATYY) [75]
Total Revenue (in millions of USD) 7,834 6,830 3,225
Growth from 2006 7.6% 0.7% -6.9%
Net Profit Margin 2.57% 4.70% 2.83%



Industrial Specialties' competitors are: Air Products and Chemicals (APD), Dow Chemical Company (DOW), Rohm and Haas Company (ROH), Kuraray Co., DuPont (DD), Chang Chun Petrochemical Co., Ltd., ExxonMobil Chemical, and Arkema (ARKAY).[76]

Data from 2007
Ashland (ASH)[77] Air Products and Chemicals (APD) [78] Exxon Mobil (XOM) [79]
Total Revenue (in millions of USD) 7,834 10,037 404,552
Growth from 2006 7.6% 14.5% 7.1%
Net Profit Margin 2.57% 10.71% 10.04%



The biggest competitors for Acetyl Intermediates are Air Products and Chemicals (APD), Borden Chemical, Inc., British Petroleum PLC, Dow Chemical Company (DOW), DuPont (DD) , Chang Chun Petrochemical Co., Kuraray Co. Ltd., and Rohm and Haas Company (ROH).[80]

Data from 2007
Ashland (ASH)[81] Dow Chemical Company (DOW) [82] DuPont (DD) [83] Rohm and Haas Company (ROH)[84]
Total Revenue (in millions of USD) 7,834 53,513 30,653 8,897
Growth from 2006 7.6% 8.9% 5.8% 8.1%
Net Profit Margin 2.57% 5.58% 9.77% 7.58%

References

  1. ↑ Celanese (CE), Annual Report, 2007, Overview, p. 5-6
  2. ↑ Celanese (CE), Annual Report, 2007, Global Reach, p. 8
  3. ↑ Celanese (CE), Annual Report, 2007, Global Reach, p. 8
  4. ↑ Celanese (CE), Annual Report, 2007, Global Reach, p. 8
  5. ↑ Celanese (CE), Annual Report, 2007, Overview, p. 5
  6. ↑ Celanese (CE), Annual Report, 2007, Global Reach, p. 8
  7. ↑ Celanese (CE), Annual Report, 2007, Segment Overview, p. 6
  8. ↑ Celanese (CE), Annual Report, 2007, Overview, p. 5
  9. ↑ Celanese (CE), Annual Report, 2007, Employees, p. 19
  10. ↑ Celanese (CE), Annual Report, 2007, Investments, p. 16
  11. ↑ Celanese (CE), Annual Report, 2007, Low Cost Producer, p. 8
  12. ↑ Google Finance
  13. ↑ Google Finance
  14. ↑ Google Finance
  15. ↑ Google Finance
  16. ↑ Google Finance
  17. ↑ Celanese (CE), Annual Report, 2007, Segment Overview, p. 6
  18. ↑ Celanese (CE), Annual Report, 2007, Selected Data by Business Segment, p. 47
  19. ↑ Celanese (CE), Annual Report, 2007, Advanced Engineered Materials, p. 6
  20. ↑ Celanese (CE), Annual Report, 2007, Advanced Engineered Materials, p. 6-7
  21. ↑ Celanese (CE), Annual Report, 2007, Advanced Engineered Materials, p. 7
  22. ↑ Celanese (CE), Annual Report, 2007, Advanced Engineered Materials, p. 7
  23. ↑ Celanese (CE), Annual Report, 2007, Advanced Engineered Materials, p. 6-7
  24. ↑ Celanese (CE), Annual Report, 2007, Advanced Engineered Materials, p. 10
  25. ↑ Celanese (CE), Annual Report, 2007, Selected Data by Business Segment, p. 47
  26. ↑ Celanese (CE), Annual Report, 2007, Consumer Specialties, p. 6
  27. ↑ Celanese (CE), Annual Report, 2007, Consumer Specialties, p. 7
  28. ↑ Celanese (CE), Annual Report, 2007, Consumer Specialties, p. 11
  29. ↑ Celanese (CE), Annual Report, 2007, Consumer Specialties, p. 7
  30. ↑ Celanese (CE), Annual Report, 2007, Consumer Specialties, p. 7
  31. ↑ Celanese (CE), Annual Report, 2007, Consumer Specialties, p. 11
  32. ↑ Celanese (CE), Annual Report, 2007, Consumer Specialties, p. 11
  33. ↑ Celanese (CE), Annual Report, 2007, Consumer Specialties, p. 12
  34. ↑ Celanese (CE), Annual Report, 2007, Selected Data by Business Segment, p. 47
  35. ↑ Celanese (CE), Annual Report, 2007, Industrial Specialties, p. 7
  36. ↑ Celanese (CE), Annual Report, 2007, Industrial Specialties, p. 7
  37. ↑ Celanese (CE), Annual Report, 2007, Industrial Specialties, p. 7
  38. ↑ Celanese (CE), Annual Report, 2007, Industrial Specialties, p. 13
  39. ↑ Celanese (CE), Annual Report, 2007, Selected Data by Business Segment, p. 47
  40. ↑ Celanese (CE), Annual Report, 2007, Acetyl Intermediates, p. 6
  41. ↑ Celanese (CE), Annual Report, 2007, Acetyl Intermediates, p. 14-15
  42. ↑ Celanese (CE), Annual Report, 2007, Acetyl Intermediates, p. 14-15
  43. ↑ Celanese (CE), Annual Report, 2007, Acetyl Intermediates, p. 14-15
  44. ↑ Celanese (CE), Annual Report, 2007, Acetyl Intermediates, p. 14-15
  45. ↑ Celanese (CE), Annual Report, 2007, Acetyl Intermediates, p. 14-15
  46. ↑ Celanese (CE), Annual Report, 2007, Acetyl Intermediates, p. 15
  47. ↑ Celanese (CE), Annual Report, 2007, Introduction, p. 2
  48. ↑ Celanese (CE), Annual Report, 2007, Employees, p. 19
  49. ↑ Celanese (CE), Annual Report, 2007, Employees, p. 19
  50. ↑ Celanese (CE), Annual Report, 2007, Investments, p. 16
  51. ↑ Celanese (CE), Annual Report, 2007, Employees, p. 19
  52. ↑ Celanese (CE), Annual Report, 2007, Investments, p. 16
  53. ↑ EUR to USD Exhcange Rates: Charts and Historical Data - Euro/US Dollar
  54. ↑ Celanese (CE), Annual Report, 2007, Overview, p. 5
  55. ↑ Celanese (CE), Annual Report, 2007, Risk Factors, p. 27
  56. ↑ Celanese (CE), Annual Report, 2007, Risk Factors, p. 24
  57. ↑ Celanese (CE), Annual Report, 2007, Foreign Exchange Risk Management, p. 68
  58. ↑ Celanese (CE), Annual Report, 2007, Foreign Exchange Risk Management, p. 68
  59. ↑ Celanese (CE), Quarterly Report, Second Quarter 2008, Asbestos Claims, p. 22
  60. ↑ Celanese (CE), Quarterly Report, Second Quarter 2008, Asbestos Claims, p. 22
  61. ↑ Celanese (CE), Quarterly Report, Second Quarter 2008, Environmental, p. 27
  62. ↑ Celanese (CE), Quarterly Report, Second Quarter 2008, Environmental, p. 27
  63. ↑ Celanese (CE), Quarterly Report, Second Quarter 2008, Environmental, p. 28
  64. ↑ Celanese (CE), Quarterly Report, Second Quarter 2008, Environmental, p. 28
  65. ↑ Celanese (CE), Quarterly Report, Second Quarter 2008, Risk Factors, p. 45
  66. ↑ Celanese (CE), Annual Report, 2007, Risk Factors, p. 22
  67. ↑ Celanese (CE), Annual Report, 2007, Competition, p. 11
  68. ↑ Google Finance
  69. ↑ Google Finance
  70. ↑ Google Finance
  71. ↑ Google Finance
  72. ↑ Celanese (CE), Annual Report, 2007, Competition, p. 12
  73. ↑ Google Finance
  74. ↑ Google Finance
  75. ↑ Google Finance
  76. ↑ Celanese (CE), Annual Report, 2007, Competition, p. 14
  77. ↑ Google Finance
  78. ↑ Google Finance
  79. ↑ Google Finance
  80. ↑ Celanese (CE), Annual Report, 2007, Competition, p. 16
  81. ↑ Google Finance
  82. ↑ Google Finance
  83. ↑ Google Finance
  84. ↑ Google Finance
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