Celanese Corporation Highlights Growth Opportunities At Investor Conference
Celanese Corporation (NYSE:CE), a global technology and specialty materials company, will present its business strategy, innovation programs and growth opportunities at its investor conference today at 8:30 a.m. Eastern time in New York City. The conference will be hosted by David Weidman, chairman and chief executive officer, and webcast live on www.celanese.com.
“We have made significant progress in transforming Celanese into a technology and specialty materials company,” Weidman said. “We are confident in our ability to deliver at least $250 million in incremental operating EBITDA in 2010, and given modest economic growth and the current trajectory of our earnings growth programs, we expect to deliver approximately $150 million of additional earnings improvement in 2011.”
Celanese also noted that it expects to achieve its previously announced objective to increase the earnings power of its portfolio to between $1.6 billion and $1.8 billion of operating EBITDA by 2013. The company highlighted four key strategic levers to grow the earnings power of the business and increase shareholder value:
Geographic Growth:Celanese continues to accelerate growth in emerging markets, including the Asia region. Its integrated chemical complex in Nanjing, China, the largest integrated acetyls complex in the world, serves as a foundation for growth in Asia and supports the region’s increasing demand. Additionally, the company’s strategic equity and cost investments further accelerate growth, adding significant value to the Celanese portfolio. Innovation: Innovation through new product and application development efforts are expected to enhance revenue growth, particularly in the company’s Advanced Engineered Materials and Industrial Specialties businesses. Advanced Engineered Materials has industry-leading polymer technologies used in performance-demanding applications and Industrial Specialties provides attractive economic solutions for environmentally-sensitive applications, including paints, coatings and adhesives. Innovation and application development strategies in these businesses bolster the company’s operating earnings leverage. Productivity: Manufacturing optimization, energy reduction and other productivity initiatives will enable the company to offset fixed cost inflation, improve its operating leverage and fuel reinvestment in its businesses. Celanese expects to realize its productivity commitments of approximately $100 million of fixed cost reductions in 2010. Additionally, the company expects to deliver a total of between $120 million and $180 million of productivity over fixed cost inflation between 2011 and 2013. As part of these commitments, the recently announced proposed closure of its acetate manufacturing facility in Spondon, Derby, United Kingdom would be expected to yield between $40 million and $60 million of savings annually and meet its return criteria for investment of simple cash payback in 2 years.
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