Celanese Corporation (CE) swung to a net profit for the quarter ended Dec. 31, 2016. The company has made a net profit of $160 million, or $ 1.12 a share in the quarter, against a net loss of $298 million, or $2.03 a share in the last year period. On an adjusted basis, earnings per share were at $1.52 for the quarter compared with $1.25 in the same period last year. Revenue during the quarter went down marginally by 1.72 percent to $1,311 million from $1,334 million in the previous year period. Gross margin for the quarter expanded 515 basis points over the previous year period to 24.56 percent. Operating margin for the quarter period stood at positive 8.92 percent as compared to a negative 22.86 percent for the previous year period.
Operating income for the quarter was $117 million, compared with an operating loss of $305 million in the previous year period.
"I am pleased to report second highest GAAP earnings per share and highest ever adjusted earnings per share for the year. We had tremendous success in offsetting typical fourth quarter seasonality and muted demand growth to deliver outstanding results," said Mark Rohr, chairman and chief executive officer. "Our Materials Solutions core contributed significantly to growth by leveraging our broad and differentiated polymer portfolio and commercializing unique solutions for customers across applications. To further advance the momentum in engineered materials (Advanced Engineered Materials excluding affiliates), we announced an agreement to acquire Nilit Plastics' nylon compounding division which has a comprehensive product portfolio and state-of-the-art production facilities.
Operating cash flow improves marginallyCelanese Corporation has generated cash of $893 million from operating activities during the year, up 3.60 percent or $31 million, when compared with the last year. The company has spent $439 million cash to meet investing activities during the year as against cash outgo of $558 million in the last year.
The company has spent $759 million cash to carry out financing activities during the year as against cash outgo of $66 million in the last year period.
Cash and cash equivalents stood at $638 million as on Dec. 31, 2016, down 34.02 percent or $329 million from $967 million on Dec. 31, 2015.
Working capital increases
Celanese Corporation has recorded an increase in the working capital over the last year. It stood at $1,395 million as at Dec. 31, 2016, up 12.77 percent or $158 million from $1,237 million on Dec. 31, 2015. Current ratio was at 2.30 as on Dec. 31, 2016, up from 1.80 on Dec. 31, 2015.
Debt remains almost stable
Celanese Corporation has witnessed an increase in total debt over the last one year. It stood at $3,008 million as on Dec. 31, 2016, up 0.91 percent or $27 million from $2,981 million on Dec. 31, 2015. Total debt was 35.99 percent of total assets as on Dec. 31, 2016, compared with 34.72 percent on Dec. 31, 2015. Debt to equity ratio was at 1 as on Dec. 31, 2016, down from 1.05 as on Dec. 31, 2015. Disclaimer: Please note that this is an auto-generated article. IRIS does not guarantee the accuracy, adequacy or completeness of any information and is not responsible for any errors or omissions or for the results obtained from the use of such information. IRIS especially states that it has no financial liability whatsoever to any user on account of the use of information provided on its website. For queries contact: editor@irisindia.net
