This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Celanese's CEO Discusses 1Q 2012 Results - Earnings Call Transcript

I also want to mention the completion of the acquisition of several product lines from Ashlands for our emulsions business. I'm very impressed with the new product improvements we've made in this segment and this acquisition helps us continue to advance the value of the business.

As we end the quarter, Moody's Investor Services and Standard and Poor’s rating services, both raised our outlook to positive. Balancing growth objectives with debt reduction and cash distribution in a way that move us to investment grade is important to me and to the Celanese leadership team.

For the quarter, I'm pleased to report net sales $1.63 billion, an increase of 3% over the prior year period and 1% over the fourth quarter. Diluted EPS from continuing operations came in at $1.15 per share, that an increase of $0.28 per share, approximately 32% over 2011 and it's an increase of $0.54 per share and approximately 89% over the fourth quarter. Adjusted earnings per share, which excludes these tax credits and other charges and adjustments, were $0.72 per share. These earnings are down $0.24 per share from the first quarter of 2011 and up $0.14 per share or $0.24 sequentially.

Our year-over-year earnings were impacted by weakness in the acetyl chain that is a reflection of soft demand in China and Europe, which ultimately led to over supply in Asia outside of China. Demand prices and margin were all impacted as a result. We saw similar softness in some advanced interim market segments driven by weak automobile builds in Europe, which is classically a very strong segment for Celanese. Weakness in the industrial electronics sectors also were beyond our expectations.

In addition to these economic impacts that I mentioned, we continue to see strong raw material inflation trends. They keep pushing the need to drop pricing. In 2011, we saw raw material cost increase $280 million year-over-year and we expect raw materials to rise another $100 million to $110 million this year. Some of this inflation pinched our margins this quarter and while I believe we are taking steps to overcome these costs, it nonetheless represents a challenge for us.

Read the rest of this transcript for free on seekingalpha.com

3 of 3

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
DOW 16,979.13 +59.54 0.35%
S&P 500 1,986.51 +4.91 0.25%
NASDAQ 4,526.4820 -1.0320 -0.02%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs