Celanese Corp (CE), a manufacturer of value-added chemicals, has recorded a 94.74 percent surge in profit for the quarter ended Jun. 30, 2014, helped by sharp reduction in costs and expenses. 

The company earned $259 million or $1.66 a share in the second-quarter compared with $133 million or $0.83 a share a year ago. The company has reported non-GAAP adjusted earnings of $1.47 a share as against analysts' expectation of $1.23 a share.

Revenue during the second-quarter grew 7.02 percent to $1,769 million from $1,653 million in the last year period.

Gross margin expanded by 377 basis points over the previous year period to 23.06 percent. Total expenses as a percentage of revenues decreased to 85.30 percent from 89.66 percent in the same period last year. That has resulted in improvement of 442 basis points in operating margins to 14.64 percent.

The company disclosed operating income of $259 million, compared with operating income of $169 million in the last year period.

As on Jun. 30, 2014, the company's cash balance stood at $1,064 million, down 3.88 percent or $43 million from Jun. 30, 2013.

"Our excellent performance through the first six months of the year gives me confidence that we can generate adjusted earnings per share growth in the range of 15 to 17 percent in 2014," said Rohr.

"We now increase our focus on the Celanese-specific initiatives for 2015 that will help offset the expected headwind related to the expiration of a methanol contract in mid-2015."

Working Capital

Celanese Corp has witnessed an increase in the working capital over the last one year. The company's working capital stood at $1,796 million as at Jun. 30, 2014, up $160 million or 9.78 percent from $1,636 million on Jun. 30, 2013. It registered an increase in current ratio to 2.16 as at Jun. 30, 2014 from 2.06 on Jun. 30, 2013.

Debt Position

Celanese Corp has witnessed a decline in the total debt over the last one year. As on Jun. 30, 2014, total debt stood at $3,038 million, down 1.49 percent or $46 million, from Jun. 30, 2013. 

The company total debt was 32.55 percent of total assets as on Jun. 30, 2014, compared with 33.08 percent on Jun. 30, 2013. It has witnessed a decline in debt to equity ratio to 0.98 on Jun. 30, 2014 compared with 1.55 on Jun. 30, 2013.

Interest coverage ratio, which determines how easily a company can pay interest expenses on outstanding debt, has improved to 6.48 from 3.84 in the same period last year.

Shares of Celanese Corp gained $0.90 or 1.42 percent to settle at $64.20 on Thursday.