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 Celanese Corporation Reports Full Year 2017 and Fourth Quarter Earnings; Increases 2018 Outlook
   Thursday, January 25, 2018 4:25:02 PM ET

Celanese Corporation (CE ), a global technology and specialty materials company, today reported GAAP diluted earnings per share of $6.19 and adjusted earnings per share of $7.51 for 2017. The company also reported fourth quarter GAAP diluted earnings per share of $1.50 and adjusted earnings per share of $1.98. Financial performance for the year was driven by strong contributions from Advanced Engineered Materials (AEM) and the Acetyl Chain which more than offset the decline in Consumer Specialties. Advanced Engineered Materials grew through the success of the opportunity pipeline, increased penetration into China, integration of the SO.F.TER. and Nilit acquisitions, and better performance in joint ventures. Recently, Celanese announced an agreement to acquire Omni Plastics, a custom compounder, which will expand its specialty polymer portfolio and broaden its exposure to new end markets. The Acetyl Chain progressively strengthened through the year as the business model advanced and overcame headwinds from Hurricane Harvey and a major planned turnaround.



Fourth Quarter and Full Year 2017 Highlights:

                                                                                                                                                                                                                                 
                                                                                                                                                                             Three Months Ended                                                                                                                                                                                        Year Ended
                                                                                                                                                                                December 31,                                                                                                                                                                                          December 31,
                                                                                                        ------------------------------------------------------------------------------------------------------------------------------------------------------------                                          ------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                               2017                   2016                                                         2017                   2016       
                                                                                                        -------------------- -------------- --------------------                                           -------------------- -------------- --------------------                                           -------------------- -------------- --------------------                                           -------------------- -------------- --------------------
                                                                                                                                                                                                                                                                                    (unaudited)
                                                                                                                                                                                                                                                                      (In $ millions, except per share data)
Net Sales
   Advanced Engineered Materials                                                                                                        550                                                                                                364                                                                                              2,096                                                                                              1,444
   Consumer Specialties                                                                                                                 187                                                                                                225                                                                                                785                                                                                                929
   Eliminations                                                                                                       (2 )                                                                --                                                           (2 )                                                                --  
                                                                                                        -------------------- -------------- --------------------                                           -------------------- -------------- --------------------                                           -------------------- -------------- --------------------                                           -------------------- -------------- --------------------
      Total Materials Solutions                                                                                      735                                                          589                                                        2,879                                                        2,373  
                                                                                                        -------------------- -------------- --------------------                                           -------------------- -------------- --------------------                                           -------------------- -------------- --------------------                                           -------------------- -------------- --------------------
   Industrial Specialties                                                                                                               252                                                                                                219                                                                                              1,023                                                                                                979
   Acetyl Intermediates                                                                                                                 717                                                                                                597                                                                                              2,669                                                                                              2,441
   Eliminations                                                                                                      (81 )                                                                           (67 )                                                                          (321 )                                                                          (288 )
                                                                                                        -------------------- -------------- --------------------                                           -------------------- -------------- --------------------                                           -------------------- -------------- --------------------                                           -------------------- -------------- --------------------
      Total Acetyl Chain                                                                                             888                                                          749                                                        3,371                                                        3,132  
                                                                                                        -------------------- -------------- --------------------                                           -------------------- -------------- --------------------                                           -------------------- -------------- --------------------                                           -------------------- -------------- --------------------
   Other Activities                                                                                                          --                                                                                     --                                                                                     --                                                                                     --
   Intersegment Eliminations                                                                                         (30 )                                                                           (27 )                                                                          (110 )                                                                          (116 )
                                                                                                        -------------------- -------------- --------------------                                           -------------------- -------------- --------------------                                           -------------------- -------------- --------------------                                           -------------------- -------------- --------------------
      Total                                                                                                        1,593                                                        1,311                                                        6,140                                                        5,389  
                                                                                                        ==================== ============== ====================                                           ==================== ============== ====================                                           ==================== ============== ====================                                           ==================== ============== ====================
                                                                                                                                                                                                                                                                                                               
                                                                                                                                                                                                                                                                                                               
                                                                                                                                                                             Three Months Ended                                                                                                                                                                                        Year Ended
                                                                                                                                                                                December 31,                                                                                                                                                                                          December 31,
                                                                                                        ------------------------------------------------------------------------------------------------------------------------------------------------------------                                          ------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                               2017                                                         2016                                                         2017                                                         2016       
                                                                                                        -------------------- -------------- --------------------                                           -------------------- -------------- --------------------                                           -------------------- -------------- --------------------                                           -------------------- -------------- --------------------
                                                                                                                                                                                                                                                                                    (unaudited)
                                                                                                                                                                                                                                                                      (In $ millions, except per share data)
Operating Profit (Loss)
   Advanced Engineered Materials                                                                                                         91                                                                                                 87                                                                                                383                                                                                                350
   Consumer Specialties                                                                                               48                                                           76                                                          218                                                          302  
                                                                                                        -------------------- -------------- --------------------                                           -------------------- -------------- --------------------                                           -------------------- -------------- --------------------                                           -------------------- -------------- --------------------
      Total Materials Solutions                                                                                      139                                                          163                                                          601                                                          652  
                                                                                                        -------------------- -------------- --------------------                                           -------------------- -------------- --------------------                                           -------------------- -------------- --------------------                                           -------------------- -------------- --------------------
   Industrial Specialties                                                                                                                16                                                                                                 20                                                                                                 87                                                                                                105
   Acetyl Intermediates                                                                                                                 160                                                                                                 66                                                                                                424                                                                                                340
   Eliminations                                                                                           --                                               --                                               --                                                            1  
                                                                                                        -------------------- -------------- --------------------                                           -------------------- -------------- --------------------                                           -------------------- -------------- --------------------                                           -------------------- -------------- --------------------
      Total Acetyl Chain                                                                                             176                                                           86                                                          511                                                          446  
                                                                                                        -------------------- -------------- --------------------                                           -------------------- -------------- --------------------                                           -------------------- -------------- --------------------                                           -------------------- -------------- --------------------
   Other Activities                                                                                                  (98 )                                                                          (132 )                                                                          (211 )                                                                          (205 )
                                                                                                        -------------------- -------------- --------------------                                           -------------------- -------------- --------------------                                           -------------------- -------------- --------------------                                           -------------------- -------------- --------------------
      Total                                                                                                          217                                                          117                                                          901                                                          893  
                                                                                                        ==================== ============== ====================                                           ==================== ============== ====================                                           ==================== ============== ====================                                           ==================== ============== ====================
Net earnings (loss)                                                                                                                     204                                                                                                161                                                                                                849                                                                                                906
                                                                                                                                                                                                                                                                                                                                                                                                                  
                                                                                                                                                                                                                                                                                                                                                                                                                  
Adjusted EBIT(1)(2)
   Advanced Engineered Materials                                                                                                        135                                                                                                121                                                                                                567                                                                                                479
   Consumer Specialties                                                                                               75                                                          106                                                          333                                                          418  
                                                                                                        -------------------- -------------- --------------------                                           -------------------- -------------- --------------------                                           -------------------- -------------- --------------------                                           -------------------- -------------- --------------------
      Total Materials Solutions                                                                                      210                                                          227                                                          900                                                          897  
                                                                                                        -------------------- -------------- --------------------                                           -------------------- -------------- --------------------                                           -------------------- -------------- --------------------                                           -------------------- -------------- --------------------
   Industrial Specialties                                                                                                                16                                                                                                 18                                                                                                 90                                                                                                106
   Acetyl Intermediates                                                                                                                 162                                                                                                 68                                                                                                485                                                                                                347
   Eliminations                                                                                           --                                               --                                               --                                                            1  
                                                                                                        -------------------- -------------- --------------------                                           -------------------- -------------- --------------------                                           -------------------- -------------- --------------------                                           -------------------- -------------- --------------------
      Total Acetyl Chain                                                                                             178                                                           86                                                          575                                                          454  
                                                                                                        -------------------- -------------- --------------------                                           -------------------- -------------- --------------------                                           -------------------- -------------- --------------------                                           -------------------- -------------- --------------------
   Other Activities                                                                                                  (36 )                                                                           (24 )                                                                          (119 )                                                                           (73 )
                                                                                                        -------------------- -------------- --------------------                                           -------------------- -------------- --------------------                                           -------------------- -------------- --------------------                                           -------------------- -------------- --------------------
      Total                                                                                                          352                                                          289                                                        1,356                                                        1,278  
                                                                                                        ==================== ============== ====================                                           ==================== ============== ====================                                           ==================== ============== ====================                                           ==================== ============== ====================
                                                                                                                                                                                                                                                                                                                                                                                                                  
Equity Earnings, Cost-Dividend Income, Other Income (Expense)
   Advanced Engineered Materials                                                                                                         43                                                                                                 31                                                                                                168                                                                                                122
   Consumer Specialties                                                                                               26                                                           27                                                          110                                                          110  
                                                                                                        -------------------- -------------- --------------------                                           -------------------- -------------- --------------------                                           -------------------- -------------- --------------------                                           -------------------- -------------- --------------------
      Total Materials Solutions                                                                                       69                                                           58                                                          278                                                          232  
                                                                                                        -------------------- -------------- --------------------                                           -------------------- -------------- --------------------                                           -------------------- -------------- --------------------                                           -------------------- -------------- --------------------
                                                                                                                                                                                                                                                                                                                                                                                                                  
Operating EBITDA(1)                                                                                                                     431                                                                                                360                                                                                              1,659                                                                                              1,566
Diluted EPS - continuing operations                                                                                        $           1.50                                                                                   $           1.12                                                                                   $           6.19                                                                                   $           6.19
Diluted EPS - total                                                                                                        $           1.49                                                                                   $           1.12                                                                                   $           6.09                                                                                   $           6.18
Adjusted EPS(1)                                                                                                            $           1.98                                                                                   $           1.52                                                                                   $           7.51                                                                                   $           6.61
                                                                                                                                                                                                                                                                                                                                                                                                                  
Net cash provided by (used in) investing activities                                                                                     (92 )                                                                                             (247 )                                                                                             (549 )                                                                                             (439 )
Net cash provided by (used in) financing activities                                                                                     145                                                                                               (292 )                                                                                             (351 )                                                                                             (759 )
Net cash provided by (used in) operating activities                                                                                      58                                                                                                (47 )                                                                                              803                                                                                                893
Free cash flow(1)                                                                                                                       (38 )                                                                                             (116 )                                                                                              509                                                                                                623
______________________________
(1)          See "Non-US GAAP Financial Measures" below.
(2)                             The company’s discussion of adjusted earnings includes use of terms
                                such as "segment income" and "core income". Those non-GAAP terms are
                                defined below and reconciled in our Non-US GAAP Financial Measures
                                and Supplemental Information document below.
                                 
                                 

Full Year Business Segment Overview

Materials Solutions

Materials Solutions’ net sales grew 21 percent over 2016 to $2.9 billion as growth in AEM outweighed the step-down in Consumer Specialties, mainly tow. GAAP operating profit was $601 million and core income was $900 million for the year. Advanced Engineered Materials outperformed prior years driven by growth in its base business, new acquisitions, and higher affiliate earnings. Operating profit of $383 million was the second highest ever and segment income of $567 million was an all time high. Volume in AEM increased year over year with advancements in the opportunity pipeline, the acquisition of SO.F.TER. and Nilit, and growth across regions, particularly in Asia. For the year, 2,232 new projects were commercialized. This 61 percent increase in project commercializations from 2016 underscores AEM’s ability to address demand from customers for a solutions-based partnership via the opportunity pipeline model. In just a few years, the business has grown project completions multi-fold by mapping customer options to polymer solutions, organizing projects into programs, prioritizing internal resources, and translating that success across end-uses.

Consumer Specialties’ GAAP operating profit was $218 million and segment income was $333 million. In line with expectations, tow price and volume stepped down in 2017 from 2016 due to depressed tow industry utilization rates and offset gains from productivity initiatives.

Affiliate earnings in Materials Solutions was $278 million and the increase over prior year was driven by higher MTBE pricing in Ibn Sina along with better results at the polymer joint ventures. Earnings from acetate tow joint ventures in China were consistent year over year.

Acetyl Chain

The Acetyl Chain recorded the third highest GAAP operating profit of $511 million and second highest ever core income of $575 million. These results were achieved despite constrained volumes in the second quarter from a significant planned turnaround in Clear Lake, Texas and disruption in the US Gulf Coast from Hurricane Harvey in the third quarter. Operating profit margin was 15.2 percent, a 50 basis points improvement over the previous high in 2014, and core income margin was 17.1 percent, a 260 basis point expansion from the prior high in 2016. The business identified and executed on multiple opportunities to drive margin enhancing growth, particularly in acetic acid in Asia, and overcame raw material cost inflation, specifically methanol. The robust results for the year benefited from the business’s ability to manage demand and raw material volatility with unique assets and a global supply chain.

Recent Highlights

-- Demonstrated the Acetyl Chain’s capabilities to address a dynamic market with multiple supply dislocations, particularly in the second half of 2017.

-- Completed 587 projects in the fourth quarter, the highest ever in AEM. Total new project commercializations in 2017 were 2,232, a 61 percent increase year over year.

-- Signed a definitive agreement to acquire Omni Plastics and its subsidiaries, including the distributor Resinal de Mexico. Omni Plastics specializes in custom compounding of various engineered thermoplastics with a compounding facility in Evansville, Indiana, and additional offices in Mexico City.

-- Received regulatory approvals for the acetate tow joint venture in Mexico, Turkey, Russia, and China, four out of six jurisdictions requiring approval. Confirmed receipt of a statement of objections from the European Commission as part of the Phase II review process. Completed major carve-out milestone to create a new legal entity and operating structure for the cellulose derivatives business, in preparation for contribution to the JV upon close.

-- Declared the polyacetal facility at the Ibn Sina joint venture commercially operational as of the beginning of the fourth quarter. Upon successful startup of the polyacetal facility, Celanese’s economic interest in Ibn Sina increased from 25 percent to 32.5 percent.

-- Completed a public offering of EUR300 million aggregate principal amount of 1.25% Senior Notes due 2025, using net proceeds primarily for a voluntary contribution to fully fund qualified U.S. pension plans.

Fourth Quarter Business Segment Overview

Materials Solutions

Materials Solutions reported record net sales of $735 million in the fourth quarter, a 25 percent improvement over 2016. Growth in AEM from new project introductions and acquisitions partially offset the decline in Consumer Specialties from tow. AEM delivered the second highest fourth quarter GAAP operating profit of $91 million and the highest ever fourth quarter segment income of $135 million. The strong fourth quarter included a concerted effort to dampen seasonality through diversifying geographies and applications by focusing on solutions-based customer interaction. The opportunity pipeline expanded by 587 projects in the quarter continuing the traction with customers in identifying possibilities for value enhancement. Operating profit margin of 16.5 percent and segment income margin of 24.5 percent were lower year over year with new acquisitions contributing to margin dilution and temporarily higher plant costs in the quarter. Margins are expected to recover as synergies from recent acquisitions are realized in 2018 and beyond. Contributions from higher volumes and affiliate earnings more than offset higher raw material and plant costs.

Acetate tow price and volume declined in the fourth quarter year over year due to lower tow industry utilization which was in line with expectations. Sequentially, results were largely consistent.

Acetyl Chain

The Acetyl Chain’s net sales for the quarter were $888 million, 19 percent higher than the same quarter last year, driven by increases in price. GAAP operating profit of $176 million was the third highest ever and core income of $178 million was a fourth quarter record, a 107 percent improvement over the same quarter in 2016. The Acetyl Chain was particularly well-positioned and the flexibility in its global supply chain enabled it to respond quickly to changes in instantaneous utilization rates, particularly in China. GAAP operating margin of 19.8 percent and core income margin of 20.0 percent were both records. The business used its model and better market dynamics to increase prices, mainly in acetic acid, in excess of rising raw material input costs, mainly methanol and ethylene.

Cash Flow and Tax

Operating cash flow was $803 million for the year. Free cash flow was $825 million before taking into account the $316 million voluntary contribution to fully fund qualified U.S. pension plans. Capex for the year was $267 million, including $140 million of growth investment.

$741 million of cash was returned to shareholders, repurchasing 5.4 million shares for $500 million and distributing $241 million in dividends for the year. As of December 31, 2017, $1.5 billion remains under the current share repurchase authorization.

As a result of the recent Tax Cuts and Jobs Act of 2017, a net tax expense of $90 million was recognized in the fourth quarter of 2017, with tax on deemed repatriation of accumulated foreign earnings partially offset by a reduction of deferred tax liabilities. A net tax benefit of $76 million was recognized related to foreign tax credits generated from reorganization of the acetate tow business in preparation for the acetate tow joint venture. These amounts were excluded from the adjusted rate. No material cash impact is expected from the deemed repatriation due to existing foreign tax credit carryforwards.

Outlook

"We set out in 2017 to further strengthen our business models in both AEM and the Acetyl Chain while addressing the headwinds in Consumer Specialties. In AEM, we made progress on integrating two high value-add acquisitions. Organic growth was further enhanced by extending the opportunity pipeline to the newly integrated polymers, creating current and future earnings uplift. In the Acetyl Chain, the business planned efficiently to address the scheduled turnaround in Clear Lake and also responded swiftly to address industry disruptions by leveraging its global supply chain. As a result, in 2017 we reported the second highest operating profit of $901 million and record adjusted EBIT of $1.4 billion. In 2018, we expect the AEM pipeline model to evolve to a higher level of project volume and the Acetyl Chain to carry forward the momentum from its improved model. Tow earnings should be relatively flat. An early read on the recent tax reform indicates a 2 percent lower adjusted tax rate of 14 percent for Celanese in 2018. Taking all these drivers into consideration, current estimations for 2018 put growth of adjusted earnings per share in the 10-14 percent range, with more of the growth in the first half of the year," said Mark Rohr, chairman and chief executive officer.

Regarding a forward view on a US GAAP basis, we are unable to reconcile forecasted adjusted earnings per share growth to US GAAP diluted earnings per share without unreasonable efforts because a forecast of Certain Items, such as mark-to-market pension gains/losses, is not practical. The Company’s earnings presentation and prepared remarks related to the fourth quarter and full year results will be posted on its website at www.celanese.com under Investor Relations/Events and Presentations after market close on January 25, 2018. Information about Non-US GAAP measures is included in a Non-US GAAP Financial Measures and Supplemental Information document posted on our website and available at the link below. See "Non-GAAP Financial Measures" below.

Celanese Corporation is a global technology leader in the production of differentiated chemistry solutions and specialty materials used in most major industries and consumer applications. Our two complementary business cores, Acetyl Chain and Materials Solutions, use the full breadth of Celanese’s global chemistry, technology and business expertise to create value for our customers and the corporation. As we partner with our customers to solve their most critical business needs, we strive to make a positive impact on our communities and the world through The Celanese Foundation. Based in Dallas, Celanese employs approximately 7,600 employees worldwide and had 2017 net sales of $6.1 billion. For more information about Celanese Corporation and its product offerings, visit www.celanese.com or our blog at www.celaneseblog.com.

Forward-Looking Statements

This release may contain "forward-looking statements," which include information concerning the company’s plans, objectives, goals, strategies, future revenues or performance, capital expenditures, financing needs and other information that is not historical information. All forward-looking statements are based upon current expectations and beliefs and various assumptions including the announced stock purchase transaction. There can be no assurance that the company will realize these expectations or that these beliefs will prove correct. There are a number of risks and uncertainties that could cause actual results to differ materially from the results expressed or implied in the forward-looking statements contained in this release, including with respect to the acquisition. These risks and uncertainties include, among other things: changes in general economic, business, political and regulatory conditions in the countries or regions in which we operate; the length and depth of product and industry business cycles, particularly in the automotive, electrical, textiles, electronics and construction industries; changes in the price and availability of raw materials, particularly changes in the demand for, supply of, and market prices of ethylene, methanol, natural gas, wood pulp and fuel oil and the prices for electricity and other energy sources; the ability to pass increases in raw material prices on to customers or otherwise improve margins through price increases; the ability to maintain plant utilization rates and to implement planned capacity additions and expansions; the ability to reduce or maintain their current levels of production costs and to improve productivity by implementing technological improvements to existing plants; increased price competition and the introduction of competing products by other companies; market acceptance of our technology; the ability to obtain governmental approvals and to construct facilities on terms and schedules acceptable to the company; changes in the degree of intellectual property and other legal protection afforded to our products or technologies, or the theft of such intellectual property; compliance and other costs and potential disruption or interruption of production or operations due to accidents, interruptions in sources of raw materials, cyber security incidents, terrorism or political unrest or other unforeseen events or delays in construction or operation of facilities, including as a result of geopolitical conditions, the occurrence of acts of war or terrorist incidents or as a result of weather or natural disasters; potential liability for remedial actions and increased costs under existing or future environmental regulations, including those relating to climate change; potential liability resulting from pending or future litigation, or from changes in the laws, regulations or policies of governments or other governmental activities in the countries in which we operate; changes in currency exchange rates and interest rates; our level of indebtedness, which could diminish our ability to raise additional capital to fund operations or limit our ability to react to changes in the economy or the chemicals industry; and various other factors discussed from time to time in the company’s filings with the Securities and Exchange Commission. Any forward-looking statement speaks only as of the date on which it is made, and the company undertakes no obligation to update any forward-looking statements to reflect events or circumstances after the date on which it is made or to reflect the occurrence of anticipated or unanticipated events or circumstances.

Non-GAAP Financial Measures

Presentation

This document presents the Company’s business segments in two subtotals, reflecting our two cores, the Acetyl Chain and Materials Solutions, based on similarities among customers, business models and technical processes. As described in the Company’s annual report on Form 10-K and quarterly reports on Form 10-Q, the Acetyl Chain includes the Company’s Acetyl Intermediates segment and the Industrial Specialties segment. Materials Solutions includes the Company’s Advanced Engineered Materials segment and the Consumer Specialties segment.

Use of Non-US GAAP Financial Information

This release uses the following Non-US GAAP measures: adjusted EBIT, adjusted EBIT margin, operating EBITDA, adjusted earnings per share and free cash flow. These measures are not recognized in accordance with US GAAP and should not be viewed as an alternative to US GAAP measures of performance or liquidity. The most directly comparable financial measure presented in accordance with US GAAP in our consolidated financial statements for adjusted EBIT and operating EBITDA is net earnings (loss) attributable to Celanese Corporation; for adjusted EBIT margin is operating margin; for adjusted earnings per share is earnings (loss) from continuing operations attributable to Celanese Corporation per common share-diluted; and for free cash flow is net cash provided by (used in) operations.

Definitions of Non-US GAAP Financial Measures

-- Adjusted EBIT is a performance measure used by the Company and is defined by the Company as net earnings (loss) attributable to Celanese Corporation, plus (earnings) loss from discontinued operations, less interest income, plus interest expense, plus refinancing expense and taxes, and further adjusted for Certain Items (refer to Table 8 of our Non-US GAAP Financial Measures and Supplemental Information document). We may provide guidance on adjusted EBIT but are unable to reconcile forecasted adjusted EBIT to a US GAAP financial measure without unreasonable efforts because a forecast of Certain Items, such as mark-to-market pension gains and losses, which may be significant, is not practical. Adjusted EBIT margin is defined by the Company as adjusted EBIT divided by net sales.

-- Adjusted EBIT by business segment may also be referred to by management as segment income. Adjusted EBIT by core (i.e. Acetyl Chain and/or Materials Solutions) may also be referred to by management as core income. Adjusted EBIT margin by business segment may also be referred to by management as segment income margin. Adjusted EBIT margin by core may also be referred to by management as core income margin.

-- Operating EBITDA is a performance measure used by the Company and is defined by the Company as net earnings (loss) attributable to Celanese Corporation, plus (earnings) loss from discontinued operations, less interest income, plus interest expense, plus refinancing expense, taxes and depreciation and amortization, and further adjusted for Certain Items, which Certain Items include accelerated depreciation and amortization expense. Operating EBITDA is equal to adjusted EBIT plus depreciation and amortization.

-- Adjusted earnings per share is a performance measure used by the Company and is defined by the Company as earnings (loss) from continuing operations attributable to Celanese Corporation, adjusted for income tax (provision) benefit, Certain Items, and refinancing and related expenses, divided by the number of basic common shares and dilutive restricted stock units and stock options calculated using the treasury method. We may provide guidance on adjusted earnings per share but are unable to reconcile forecasted adjusted earnings per share to a US GAAP financial measure without unreasonable efforts because a forecast of Certain Items, such as mark-to-market pension gains and losses, which may be significant, is not practical. Note: The income tax expense (benefit) on Certain Items ("Non-GAAP adjustments") is determined using the applicable rates in the taxing jurisdictions in which the Non-GAAP adjustments occurred and includes both current and deferred income tax expense (benefit). The income tax rate used for adjusted earnings per share approximates the midpoint in a range of forecasted tax rates for the year. This range may include certain partial or full-year forecasted tax opportunities and related costs, where applicable, and specifically excludes changes in uncertain tax positions, discrete recognition of GAAP items on a quarterly basis, other pre-tax items adjusted out of our GAAP earnings for adjusted earnings per share purposes, and changes in management’s assessments regarding the ability to realize deferred tax assets for GAAP. In determining the adjusted earnings per share tax rate, we reflect the impact of foreign tax credits when utilized, or expected to be utilized, absent discrete events impacting the timing of foreign tax credit utilization. We analyze this rate quarterly and adjust it if there is a material change in the range of forecasted tax rates; an updated forecast would not necessarily result in a change to our tax rate used for adjusted earnings per share. The adjusted tax rate is an estimate and may differ from the actual tax rate used for GAAP reporting in any given reporting period. Table 3a of our Non-US GAAP Financial Measures and Supplemental Information document summarizes the reconciliation of our estimated GAAP effective tax rate to the adjusted tax rate. The estimated GAAP rate excludes discrete recognition of GAAP items due to our inability to forecast such items. As part of the year-end reconciliation, we will update the reconciliation of the GAAP effective tax rate to the adjusted tax rate for actual results.

-- Free cash flow is a liquidity measure used by the Company and is defined by the Company as cash flow from operations, less capital expenditures on property, plant and equipment, and adjusted for capital contributions from or distributions to Mitsui & Co., Ltd. ("Mitsui") related to our methanol joint venture, Fairway Methanol LLC ("Fairway").

Reconciliation of Non-US GAAP Financial Measures

Reconciliations of the Non-US GAAP financial measures used in this press release to the comparable US GAAP financial measure, together with information about the purposes and uses of non-US GAAP financial measures, are included in our Non-US GAAP Financial Measures and Supplemental Information document filed as an exhibit to our Current Report on Form 8-K filed with the SEC on or about January 25, 2018 and also available on our website at www.celanese.com under Financial Information, Non-GAAP Financial Measures, or at this link: http://investors.celanese.com/interactive/lookandfeel/4103411/Non-GAAP.PDF .

Results Unaudited

The results in this document, together with the adjustments made to present the results on a comparable basis, have not been audited and are based on internal financial data furnished to management. Quarterly results should not be taken as an indication of the results of operations to be reported for any subsequent period or for the full fiscal year.

Supplemental Information

Additional information about our prior period performance is included in our Quarterly Reports on Form 10-Q and in our Non-US GAAP Financial Measures and Supplemental Information document.

 
 
Consolidated Statements of Operations - Unaudited
 
                                                                                                                   Three Months Ended
                                                                                                                                                            December 31,
                                                                                                         ------------------------------------------------------------------------------------------------------------------
                                                                                                                         2017                                    2016
                                                                                                         ------------------------------------                                          ------------------------------------
                                                                                                                                                (In $ millions, except share and per
                                                                                                                                                             share data)
Net sales                                                                                                         1,593                                                                         1,311
Cost of sales                                                                                                    (1,182 )                                                                        (989 )
                                                                                                         -------------- --------------------                                           -------------- --------------------
   Gross profit                                                                                                     411                                                                           322
Selling, general and administrative expenses                                                                       (165 )                                                                        (184 )
Amortization of intangible assets                                                                                    (6 )                                                                          (2 )
Research and development expenses                                                                                   (19 )                                                                         (20 )
Other (charges) gains, net                                                                                           (2 )                                                                           1
Foreign exchange gain (loss), net                                                                                    (1 )                                                                          (2 )
Gain (loss) on disposition of businesses and assets, net                                                             (1 )                                                                           2  
                                                                                                         -------------- --------------------                                           -------------- --------------------
   Operating profit (loss)                                                                                          217                                                                           117
Equity in net earnings (loss) of affiliates                                                                          48                                                                            41
Interest expense                                                                                                    (31 )                                                                         (29 )
Refinancing expense                                                                                      --                                                                --
Interest income                                                                                          --                                                                             1
Dividend income - cost investments                                                                                   26                                                                            26
Other income (expense), net                                                                                           5                                             --  
                                                                                                         -------------- --------------------                                           -------------- --------------------
   Earnings (loss) from continuing operations before tax                                                            265                                                                           156
Income tax (provision) benefit                                                                                      (60 )                                                                           5  
                                                                                                         -------------- --------------------                                           -------------- --------------------
   Earnings (loss) from continuing operations                                                                       205                                                        161  
                                                                                                         -------------- --------------------                                           -------------- --------------------
Earnings (loss) from operation of discontinued operations                                                            (2 )                                                              --
Gain (loss) on disposition of discontinued operations                                                    --                                                                --
Income tax (provision) benefit from discontinued operations                                                           1                                             --  
                                                                                                         -------------- --------------------                                           -------------- --------------------
   Earnings (loss) from discontinued operations                                                                      (1 )                                                              --  
                                                                                                         -------------- --------------------                                           -------------- --------------------
      Net earnings (loss)                                                                                           204                                                                           161
Net (earnings) loss attributable to noncontrolling interests                                                         (1 )                                                                          (1 )
                                                                                                         -------------- --------------------                                           -------------- --------------------
      Net earnings (loss) attributable to Celanese Corporation                                                      203                                                        160  
                                                                                                         ============== ====================                                           ============== ====================
Amounts attributable to Celanese Corporation
   Earnings (loss) from continuing operations                                                                       204                                                                           160
   Earnings (loss) from discontinued operations                                                                      (1 )                                                              --  
                                                                                                         -------------- --------------------                                           -------------- --------------------
      Net earnings (loss)                                                                                           203                                                        160  
                                                                                                         ============== ====================                                           ============== ====================
Earnings (loss) per common share - basic
   Continuing operations                                                                                           1.50                                                                          1.13
   Discontinued operations                                                                                        (0.01 )                                                              --  
                                                                                                         -------------- --------------------                                           -------------- --------------------
      Net earnings (loss) - basic                                                                                  1.49                                                       1.13  
                                                                                                         ============== ====================                                           ============== ====================
Earnings (loss) per common share - diluted
   Continuing operations                                                                                           1.50                                                                          1.12
   Discontinued operations                                                                                        (0.01 )                                                              --  
                                                                                                         -------------- --------------------                                           -------------- --------------------
      Net earnings (loss) - diluted                                                                                1.49                                                       1.12  
                                                                                                         ============== ====================                                           ============== ====================
Weighted average shares (in millions)
   Basic                                                                                                          135.8                                                                         141.9
   Diluted                                                                                                        136.3                                                                         142.6
 
 
Consolidated Statements of Operations - Unaudited
 
                                                                                                                 Year Ended December 31,
                                                                                                         ------------------------------------------------------------------------------------------------------------------
                                                                                                                         2017                                    2016
                                                                                                         ------------------------------------                                          ------------------------------------
                                                                                                                                                (In $ millions, except share and per
                                                                                                                                                             share data)
Net sales                                                                                                         6,140                                                                         5,389
Cost of sales                                                                                                    (4,625 )                                                                      (3,984 )
                                                                                                         -------------- --------------------                                           -------------- --------------------
   Gross profit                                                                                                   1,515                                                                         1,405
Selling, general and administrative expenses                                                                       (456 )                                                                        (416 )
Amortization of intangible assets                                                                                   (20 )                                                                          (9 )
Research and development expenses                                                                                   (72 )                                                                         (78 )
Other (charges) gains, net                                                                                          (60 )                                                                         (11 )
Foreign exchange gain (loss), net                                                                                    (1 )                                                                          (1 )
Gain (loss) on disposition of businesses and assets, net                                                             (5 )                                                                           3  
                                                                                                         -------------- --------------------                                           -------------- --------------------
   Operating profit (loss)                                                                                          901                                                                           893
Equity in net earnings (loss) of affiliates                                                                         183                                                                           155
Interest expense                                                                                                   (122 )                                                                        (120 )
Refinancing expense                                                                                      --                                                                            (6 )
Interest income                                                                                                       2                                                                             2
Dividend income - cost investments                                                                                  108                                                                           108
Other income (expense), net                                                                                           3                                                         (2 )
                                                                                                         -------------- --------------------                                           -------------- --------------------
   Earnings (loss) from continuing operations before tax                                                          1,075                                                                         1,030
Income tax (provision) benefit                                                                                     (213 )                                                                        (122 )
                                                                                                         -------------- --------------------                                           -------------- --------------------
   Earnings (loss) from continuing operations                                                                       862                                                        908  
                                                                                                         -------------- --------------------                                           -------------- --------------------
Earnings (loss) from operation of discontinued operations                                                           (16 )                                                                          (3 )
Gain (loss) on disposition of discontinued operations                                                    --                                                                --
Income tax (provision) benefit from discontinued operations                                                           3                                                          1  
                                                                                                         -------------- --------------------                                           -------------- --------------------
   Earnings (loss) from discontinued operations                                                                     (13 )                                                                          (2 )
                                                                                                         -------------- --------------------                                           -------------- --------------------
      Net earnings (loss)                                                                                           849                                                                           906
Net (earnings) loss attributable to noncontrolling interests                                                         (6 )                                                                          (6 )
                                                                                                         -------------- --------------------                                           -------------- --------------------
      Net earnings (loss) attributable to Celanese Corporation                                                      843                                                        900  
                                                                                                         ============== ====================                                           ============== ====================
Amounts attributable to Celanese Corporation
   Earnings (loss) from continuing operations                                                                       856                                                                           902
   Earnings (loss) from discontinued operations                                                                     (13 )                                                                          (2 )
                                                                                                         -------------- --------------------                                           -------------- --------------------
      Net earnings (loss)                                                                                           843                                                        900  
                                                                                                         ============== ====================                                           ============== ====================
Earnings (loss) per common share - basic
   Continuing operations                                                                                           6.21                                                                          6.22
   Discontinued operations                                                                                        (0.10 )                                                                       (0.01 )
                                                                                                         -------------- --------------------                                           -------------- --------------------
      Net earnings (loss) - basic                                                                                  6.11                                                       6.21  
                                                                                                         ============== ====================                                           ============== ====================
Earnings (loss) per common share - diluted
   Continuing operations                                                                                           6.19                                                                          6.19
   Discontinued operations                                                                                        (0.10 )                                                                       (0.01 )
                                                                                                         -------------- --------------------                                           -------------- --------------------
      Net earnings (loss) - diluted                                                                                6.09                                                       6.18  
                                                                                                         ============== ====================                                           ============== ====================
Weighted average shares (in millions)
   Basic                                                                                                          137.9                                                                         144.9
   Diluted                                                                                                        138.3                                                                         145.7
 
 
Consolidated Balance Sheets - Unaudited
 
                                                                                          As of                                   As of
                                                                                                                            December 31,                                                                  December 31,
                                                                                                                                2017                                                                          2016
                                                                                                                ------------------------------------                                          ------------------------------------
                                                                                                                                                                  (In $ millions)
                                ASSETS
Current Assets
   Cash and cash equivalents                                                                                               576                                                                           638
   Trade receivables - third party and affiliates, net                                                                     986                                                                           801
   Non-trade receivables, net                                                                                              244                                                                           223
   Inventories                                                                                                             900                                                                           720
   Marketable securities, at fair value                                                                                     32                                                                            30
   Other assets                                                                                                             54                                                         60  
                                                                                                                -------------- --------------------                                           -------------- --------------------
      Total current assets                                                                                               2,792                                                      2,472  
                                                                                                                -------------- --------------------                                           -------------- --------------------
Investments in affiliates                                                                                                  976                                                                           852
Property, plant and equipment, net                                                                                       3,762                                                                         3,577
Deferred income taxes                                                                                                      366                                                                           159
Other assets                                                                                                               338                                                                           307
Goodwill                                                                                                                 1,003                                                                           796
Intangible assets, net                                                                                                     301                                                        194  
                                                                                                                -------------- --------------------                                           -------------- --------------------
         Total assets                                                                                                    9,538                                                      8,357  
                                                                                                                ============== ====================                                           ============== ====================
                        LIABILITIES AND EQUITY
Current Liabilities
   Short-term borrowings and current installments of long-term debt -                                                      326                                                                           118
   third party and affiliates
   Trade payables - third party and affiliates                                                                             807                                                                           625
   Other liabilities                                                                                                       354                                                                           322
   Income taxes payable                                                                                                     72                                                         12  
                                                                                                                -------------- --------------------                                           -------------- --------------------
      Total current liabilities                                                                                          1,559                                                      1,077  
                                                                                                                -------------- --------------------                                           -------------- --------------------
Long-term debt                                                                                                           3,315                                                                         2,890
Deferred income taxes                                                                                                      211                                                                           130
Uncertain tax positions                                                                                                    156                                                                           131
Benefit obligations                                                                                                        585                                                                           893
Other liabilities                                                                                                          413                                                                           215
Commitments and Contingencies
Stockholders’ Equity
   Preferred stock                                                                                              --                                                                --
   Common stock                                                                                                 --                                                                --
   Treasury stock, at cost                                                                                              (2,031 )                                                                      (1,531 )
   Additional paid-in capital                                                                                              175                                                                           157
   Retained earnings                                                                                                     4,920                                                                         4,320
   Accumulated other comprehensive income (loss), net                                                                     (177 )                                                                        (358 )
                                                                                                                -------------- --------------------                                           -------------- --------------------
      Total Celanese Corporation stockholders’ equity                                                                    2,887                                                                         2,588
Noncontrolling interests                                                                                                   412                                                        433  
                                                                                                                -------------- --------------------                                           -------------- --------------------
      Total equity                                                                                                       3,299                                                      3,021  
                                                                                                                -------------- --------------------                                           -------------- --------------------
         Total liabilities and equity                                                                                    9,538                                                      8,357  
                                                                                                                ============== ====================                                           ============== ====================
                                                                                                                                                                                                              
                                                                                                                                                                                                              
                                                                                                                                                                                                              

Non-US GAAP Financial Measures and Supplemental Information

January 25, 2018

In this document, the terms the "Company," "we" and "our" refer to Celanese Corporation and its subsidiaries on a consolidated basis.

Purpose

The purpose of this document is to provide information of interest to investors, analysts and other parties including supplemental financial information and reconciliations and other information concerning our use of non-US GAAP financial measures. This document is updated quarterly.

Presentation

This document presents the Company’s business segments in two subtotals, reflecting our two cores, the Acetyl Chain and Materials Solutions, based on similarities among customers, business models and technical processes. As described in the Company’s annual report on Form 10-K and quarterly reports on Form 10-Q, the Acetyl Chain includes the Company’s Acetyl Intermediates segment and the Industrial Specialties segment. Materials Solutions includes the Company’s Advanced Engineered Materials segment and the Consumer Specialties segment.

Use of Non-US GAAP Financial Measures

From time to time, management may publicly disclose certain numerical "non-GAAP financial measures" in the course of our earnings releases, financial presentations, earnings conference calls, investor and analyst meetings and otherwise. For these purposes, the Securities and Exchange Commission ("SEC") defines a "non-GAAP financial measure" as a numerical measure of historical or future financial performance, financial position or cash flows that excludes amounts, or is subject to adjustments that effectively exclude amounts, included in the most directly comparable measure calculated and presented in accordance with US GAAP, and vice versa for measures that include amounts, or are subject to adjustments that effectively include amounts, that are excluded from the most directly comparable US GAAP measure so calculated and presented. For these purposes, "GAAP" refers to generally accepted accounting principles in the United States.

Non-GAAP financial measures disclosed by management are provided as additional information to investors, analysts and other parties because the Company believes them to be important supplemental measures for assessing our financial and operating results and as a means to evaluate our financial condition and period-to-period comparisons. These non-GAAP financial measures should be viewed as supplemental to, and should not be considered in isolation or as alternatives to, net earnings (loss), operating profit (loss), operating margin, cash flow from operating activities (together with cash flow from investing and financing activities), earnings per share or any other US GAAP financial measure. These non-GAAP financial measures should be considered within the context of our complete audited and unaudited financial results for the given period, which are available on the Investor Relations/Financial Information/SEC Filings page of our website, www.celanese.com. The definition and method of calculation of the non-GAAP financial measures used herein may be different from other companies’ methods for calculating measures with the same or similar titles. Investors, analysts and other parties should understand how another company calculates such non-GAAP financial measures before comparing the other company’s non-GAAP financial measures to any of our own. These non-GAAP financial measures may not be indicative of the historical operating results of the Company nor are they intended to be predictive or projections of future results.

Pursuant to the requirements of SEC Regulation G, whenever we refer to a non-GAAP financial measure, we will also present in this document, in the presentation itself or on a Form 8-K in connection with the presentation on the Investor Relations/Financial Information/Non-GAAP Financial Measures page of our website, www.celanese.com, to the extent practicable, the most directly comparable financial measure calculated and presented in accordance with GAAP, along with a reconciliation of the differences between the non-GAAP financial measure we reference and such comparable GAAP financial measure.

This document includes definitions and reconciliations of non-GAAP financial measures used from time to time by the Company.

Specific Measures Used

This document provides information about the following non-GAAP measures: adjusted EBIT, adjusted EBIT margin, operating EBITDA, operating EBITDA margin, operating profit (loss) attributable to Celanese Corporation, adjusted earnings per share, net debt, free cash flow and return on invested capital (adjusted). The most directly comparable financial measure presented in accordance with US GAAP in our consolidated financial statements for adjusted EBIT and operating EBITDA is net earnings (loss) attributable to Celanese Corporation; for adjusted EBIT margin and operating EBITDA margin is operating margin; for operating profit (loss) attributable to Celanese Corporation is operating profit (loss); for adjusted earnings per share is earnings (loss) from continuing operations attributable to Celanese Corporation per common share-diluted; for net debt is total debt; for free cash flow is net cash provided by (used in) operations; and for return on invested capital (adjusted) is net earnings (loss) attributable to Celanese Corporation divided by the sum of the average of beginning and end of the year short- and long-term debt and Celanese Corporation stockholders’ equity.

Definitions

-- Adjusted EBIT is a performance measure used by the Company and is defined by the Company as net earnings (loss) attributable to Celanese Corporation, plus (earnings) loss from discontinued operations, less interest income, plus interest expense, plus refinancing expense and taxes, and further adjusted for Certain Items (refer to Table 8). We believe that adjusted EBIT provides transparent and useful information to management, investors, analysts and other parties in evaluating and assessing our primary operating results from period-to-period after removing the impact of unusual, non-operational or restructuring-related activities that affect comparability. Our management recognizes that adjusted EBIT has inherent limitations because of the excluded items. Adjusted EBIT is one of the measures management uses for planning and budgeting, monitoring and evaluating financial and operating results and as a performance metric in the Company’s incentive compensation plan. We may provide guidance on adjusted EBIT but are unable to reconcile forecasted adjusted EBIT to a US GAAP financial measure without unreasonable efforts because a forecast of Certain Items, such as mark-to-market pension gains and losses, which may be significant, is not practical. Adjusted EBIT margin is defined by the Company as adjusted EBIT divided by net sales. Adjusted EBIT margin has the same uses and limitations as Adjusted EBIT.

-- Adjusted EBIT by core (i.e. Acetyl Chain and/or Materials Solutions) may also be referred to by management as core income. Adjusted EBIT margin by core may also be referred to by management as core income margin. Adjusted EBIT by business segment may also be referred to by management as segment income. Adjusted EBIT margin by business segment may also be referred to by management as segment income margin.

-- Operating EBITDA is a performance measure used by the Company and is defined by the Company as net earnings (loss) attributable to Celanese Corporation, plus (earnings) loss from discontinued operations, less interest income, plus interest expense, plus refinancing expense, taxes and depreciation and amortization, and further adjusted for Certain Items, which Certain Items include accelerated depreciation and amortization expense. Operating EBITDA is equal to adjusted EBIT plus depreciation and amortization. We believe that Operating EBITDA provides transparent and useful information to investors, analysts and other parties in evaluating our operating performance relative to our peer companies. Operating EBITDA margin is defined by the Company as Operating EBITDA divided by net sales. Operating EBITDA margin has the same uses and limitations as Operating EBITDA.

-- Operating profit (loss) attributable to Celanese Corporation is defined by the Company as operating profit (loss), less earnings (loss) attributable to noncontrolling interests ("NCI"). We believe that operating profit (loss) attributable to Celanese Corporation provides transparent and useful information to management, investors, analysts and other parties in evaluating our core operational performance. Operating margin attributable to Celanese Corporation is defined by the Company as operating profit (loss) attributable to Celanese Corporation divided by net sales. Operating margin attributable to Celanese Corporation has the same uses and limitations as Operating profit (loss) attributable to Celanese Corporation.

-- Adjusted earnings per share is a performance measure used by the Company and is defined by the Company as earnings (loss) from continuing operations attributable to Celanese Corporation, adjusted for income tax (provision) benefit, Certain Items, and refinancing and related expenses, divided by the number of basic common shares and dilutive restricted stock units and stock options calculated using the treasury method. We believe that adjusted earnings per share provides transparent and useful information to management, investors, analysts and other parties in evaluating and assessing our primary operating results from period-to-period after removing the impact of the above stated items that affect comparability and as a performance metric in the Company’s incentive compensation plan. We may provide guidance on adjusted earnings per share but are unable to reconcile forecasted adjusted earnings per share to a GAAP financial measure without unreasonable efforts because a forecast of Certain Items, such as mark-to-market pension gains and losses, which may be significant, is not practical. Note: The income tax expense (benefit) on Certain Items ("Non-GAAP adjustments") is determined using the applicable rates in the taxing jurisdictions in which the Non-GAAP adjustments occurred and includes both current and deferred income tax expense (benefit). The income tax rate used for adjusted earnings per share approximates the midpoint in a range of forecasted tax rates for the year. This range may include certain partial or full-year forecasted tax opportunities and related costs, where applicable, and specifically excludes changes in uncertain tax positions, discrete recognition of GAAP items on a quarterly basis, other pre-tax items adjusted out of our GAAP earnings for adjusted earnings per share purposes and changes in management’s assessments regarding the ability to realize deferred tax assets for GAAP. In determining the adjusted earnings per share tax rate, we reflect the impact of foreign tax credits when utilized, or expected to be utilized, absent discrete events impacting the timing of foreign tax credit utilization. We analyze this rate quarterly and adjust it if there is a material change in the range of forecasted tax rates; an updated forecast would not necessarily result in a change to our tax rate used for adjusted earnings per share. The adjusted tax rate is an estimate and may differ from the actual tax rate used for GAAP reporting in any given reporting period. Table 3a summarizes the reconciliation of our estimated GAAP effective tax rate to the adjusted tax rate. The estimated GAAP rate excludes discrete recognition of GAAP items due to our inability to forecast such items. As part of the year-end reconciliation, we will update the reconciliation of the GAAP effective tax rate to the adjusted tax rate for actual results.

-- Free cash flow is a liquidity measure used by the Company and is defined by the Company as net cash provided by (used in) operations, less capital expenditures on property, plant and equipment, and adjusted for capital contributions from or distributions to Mitsui & Co., Ltd. ("Mitsui") related to our methanol joint venture, Fairway Methanol LLC ("Fairway"). We believe that free cash flow provides useful information to management, investors, analysts and other parties in evaluating the Company’s liquidity and credit quality assessment because it provides an indication of the long-term cash generating ability of our business. Although we use free cash flow as a measure to assess the liquidity generated by our business, the use of free cash flow has important limitations, including that free cash flow does not reflect the cash requirements necessary to service our indebtedness, lease obligations, unconditional purchase obligations or pension and postretirement funding obligations.

-- Net debt is defined by the Company as total debt less cash and cash equivalents. We believe that net debt provides useful information to management, investors, analysts and other parties in evaluating changes to the Company’s capital structure and credit quality assessment.

-- Return on invested capital (adjusted) is defined by the Company as adjusted EBIT, tax effected using the adjusted tax rate, divided by the sum of the average of beginning and end of the year short- and long-term debt and Celanese Corporation stockholders’ equity. We believe that return on invested capital (adjusted) provides useful information to management, investors, analysts and other parties in order to assess our income generation from the point of view of our stockholders and creditors who provide us with capital in the form of equity and debt and whether capital invested in the Company yields competitive returns. In addition, achievement of certain predetermined targets relating to return on invested capital (adjusted) is one of the factors we consider in determining the amount of performance-based compensation received by our management.

Supplemental Information

Supplemental Information we believe to be of interest to investors, analysts and other parties includes the following:

-- Net sales for Materials Solutions, the Acetyl Chain and each of our business segments and the percentage increase or decrease in net sales attributable to price, volume, currency and other factors for Materials Solutions, the Acetyl Chain and each of our business segments.

-- Cash dividends received from our equity and cost investments.

-- For those consolidated ventures in which the Company owns or is exposed to less than 100% of the economics, the outside stockholders’ interests are shown as NCI. Beginning in 2014, this includes Fairway for which the Company’s ownership percentage is 50%. Amounts referred to as "attributable to Celanese Corporation" are net of any applicable NCI.

Results Unaudited

The results in this document, together with the adjustments made to present the results on a comparable basis, have not been audited and are based on internal financial data furnished to management. Quarterly results should not be taken as an indication of the results of operations to be reported for any subsequent period or for the full fiscal year.

 
 
Table 1
Adjusted EBIT and Operating EBITDA - Reconciliation of Non-GAAP
Measures - Unaudited
 
                                                                                 2017                        Q4 ’17                        Q3 ’17                                  Q2 ’17                       Q1 ’17                         2016                                   Q4 ’16                       Q3 ’16             Q2 ’16                        Q1 ’16
                                                                                                       ------------------------------------                                          --------------                                           ------------------------------------                                          ------------------------------------                                          --------------                                           ------------------------------------                                          ------------------------------------                                          --------------                                           --------------                                           ------------------------------------
                                                                                                                                                                                                                                                                                                                                            (In $ millions)
Net earnings (loss) attributable to Celanese Corporation                                                          843                                                                           203                                                      226                                                                           231                                                                           183                                                      900                                                                           160                                                                           262                                                      221                                                      257
(Earnings) loss from discontinued operations                                                                       13                                                                             1                                                        4                                                                             8                                                                --                                                        2                                                                --                                                                             3                                           --                                                       (1 )
Interest income                                                                                                    (2 )                                                              --                                                       (1 )                                                                          (1 )                                                              --                                                       (2 )                                                                          (1 )                                                              --                                           --                                                       (1 )
Interest expense                                                                                                  122                                                                            31                                                       32                                                                            30                                                                            29                                                      120                                                                            29                                                                            28                                                       30                                                       33
Refinancing expense                                                                                    --                                                                --                                           --                                                                --                                                                --                                                        6                                                                --                                                                             4                                           --                                                        2
Income tax provision (benefit)                                                                                    213                                                                            60                                                       57                                                                            40                                                                            56                                                      122                                                                            (5 )                                                                          15                                                       52                                                       60
Certain Items attributable to Celanese Corporation (Table 8)                                                      167                                                         57                                                       27                                                         18                                                         65                                                      130                                                        106                                                          7                                                        9                                                        8  
                                                                                                       -------------- --------------------                                           --------------                                           -------------- --------------------                                           -------------- --------------------                                           --------------                                           -------------- --------------------                                           -------------- --------------------                                           --------------                                           --------------                                           -------------- --------------------
   Adjusted EBIT                                                                                                1,356                                                                           352                                                      345                                                                           326                                                                           333                                                    1,278                                                                           289                                                                           319                                                      312                                                      358
Depreciation and amortization expense(1)                                                                          303                                                         79                                                       78                                                         75                                                         71                                                      288                                                         71                                                         71                                                       73                                                       73  
                                                                                                       -------------- --------------------                                           --------------                                           -------------- --------------------                                           -------------- --------------------                                           --------------                                           -------------- --------------------                                           -------------- --------------------                                           --------------                                           --------------                                           -------------- --------------------
   Operating EBITDA                                                                                             1,659                                                        431                                                      423                                                        401                                                        404                                                    1,566                                                        360                                                        390                                                      385                                                      431  
                                                                                                       ============== ====================                                           ==============                                           ============== ====================                                           ============== ====================                                           ==============                                           ============== ====================                                           ============== ====================                                           ==============                                           ==============                                           ============== ====================
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  
                                                                                                                       2017                                                              Q4 ’17                                                              Q3 ’17                                                                        Q2 ’17                                                             Q1 ’17                                                               2016                                                                         Q4 ’16                                                             Q3 ’16                                                   Q2 ’16                                                              Q1 ’16
                                                                                                       ------------------------------------                                          --------------                                           ------------------------------------                                          ------------------------------------                                          --------------                                           ------------------------------------                                          ------------------------------------                                          --------------                                           --------------                                           ------------------------------------
                                                                                                                                                                                                                                                                                                                                            (In $ millions)
Advanced Engineered Materials                                                                          --                                                                --                                           --                                                                --                                                                --                                           --                                                                --                                                                --                                           --                                           --
Consumer Specialties                                                                                   --                                                                --                                           --                                                                --                                                                --                                                        1                                                                --                                                                             1                                           --                                           --
Industrial Specialties                                                                                              2                                                                --                                                        2                                                                --                                                                --                                           --                                                                --                                                                --                                           --                                           --
Acetyl Intermediates                                                                                   --                                                                --                                           --                                                                --                                                                --                                           --                                                                --                                                                --                                           --                                           --
Other Activities(2)                                                                                    --                                             --                                           --                                             --                                             --                                                        1                                                          1                                             --                                           --                                           --  
                                                                                                       -------------- --------------------                                           --------------                                           -------------- --------------------                                           -------------- --------------------                                           --------------                                           -------------- --------------------                                           -------------- --------------------                                           --------------                                           --------------                                           -------------- --------------------
   Accelerated depreciation and amortization expense                                                                2                                                                --                                                        2                                                                --                                                                --                                                        2                                                                             1                                                                             1                                           --                                           --
Depreciation and amortization expense(1)                                                                          303                                                         79                                                       78                                                         75                                                         71                                                      288                                                         71                                                         71                                                       73                                                       73  
                                                                                                       -------------- --------------------                                           --------------                                           -------------- --------------------                                           -------------- --------------------                                           --------------                                           -------------- --------------------                                           -------------- --------------------                                           --------------                                           --------------                                           -------------- --------------------
      Total depreciation and amortization expense                                                                 305                                                         79                                                       80                                                         75                                                         71                                                      290                                                         72                                                         72                                                       73                                                       73  
                                                                                                       ============== ====================                                           ==============                                           ============== ====================                                           ============== ====================                                           ==============                                           ============== ====================                                           ============== ====================                                           ==============                                           ==============                                           ============== ====================
______________________________
(1)          Excludes accelerated depreciation and amortization expense as
                                detailed in the table above, which amounts are included in Certain
                                Items above.
(2)                             Other Activities includes corporate Selling, general and
                                administrative ("SG&A") expenses, the results of captive insurance
                                companies and certain components of net periodic benefit cost
                                (interest cost, expected return on plan assets and net actuarial
                                gains and losses).
 
 
Table 2 - Supplemental Segment Data and Reconciliation of
Segment Adjusted EBIT and Operating EBITDA - Non-GAAP Measures -
Unaudited
 
                                                                                                                  2017                                                                                    Q4 ’17                                                                                   Q3 ’17                                                                                   Q2 ’17                                                                                   Q1 ’17                                                                                    2016                                                                                    Q4 ’16                                                                                   Q3 ’16                                                                                   Q2 ’16                                                                                 Q1 ’16
                                                                                                                -------------------------------------------------------------------------------------                                          -------------------------------------------------------------------------------------                                          -------------------------------------------------------------------------------------                                          -------------------------------------------------------------------------------------                                          -------------------------------------------------------------------------------------                                          -------------------------------------------------------------------------------------                                          -------------------------------------------------------------------------------------                                          -------------------------------------------------------------------------------------                                          -------------------------------------------------------------------------------------                                          ---------------------------------------------------------------------------------
                                                                                                                                                                                                                                                                                                                                                     (In $ millions, except percentages)
Operating Profit (Loss) / Operating Margin                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              
   Materials Solutions                                                                                                     601                                                                20.9 %                                                      139                                                                18.9 %                                                      150                                                                20.5 %                                                      146                                                                20.6 %                                                      166                                                                23.5 %                                                      652                                                                27.5 %                                                      163                                                                27.7 %                                                      161                                                                27.3 %                                                      162                                                                27.0 %                                                      166
   Acetyl Chain(1)                                                                                                         511                                                                15.2 %                                                      176                                                                19.8 %                                                      148                                                                17.1 %                                                      135                                                                16.3 %                                                       52                                                                 6.5 %                                                      446                                                                14.2 %                                                       86                                                                11.5 %                                                      108                                                                14.2 %                                                      107                                                                13.7 %                                                      145
   Other Activities(2)                                                                                                    (211 )                                                                                                                          (98 )                                                                                                                          (46 )                                                                                                                          (41 )                                                                                                                          (26 )                                                                                                                         (205 )                                                                                                                         (132 )                                                                                                                          (23 )                                                                                                                          (26 )                                                                                                                          (24 )
                                                                                                                -------------- --------------------                                                                                            -------------- --------------------                                                                                            -------------- --------------------                                                                                            -------------- --------------------                                                                                            -------------- --------------------                                                                                            -------------- --------------------                                                                                            -------------- --------------------                                                                                            -------------- --------------------                                                                                            -------------- --------------------                                                                                            -------------- --------------------
      Total                                                                                                                901                                             14.7 %                                                      217                                             13.6 %                                                      252                                             16.1 %                                                      240                                             15.9 %                                                      192                                             13.1 %                                                      893                                             16.6 %                                                      117                                              8.9 %                                                      246                                             18.6 %                                                      243                                             18.0 %                                                      287  
                                                                                                                -------------- --------------------                                                                                            -------------- --------------------                                                                                            -------------- --------------------                                                                                            -------------- --------------------                                                                                            -------------- --------------------                                                                                            -------------- --------------------                                                                                            -------------- --------------------                                                                                            -------------- --------------------                                                                                            -------------- --------------------                                                                                            -------------- --------------------
      Less: Net Earnings (Loss) Attributable to NCI(1)                                                                       6                                                                                                           1                                                                                                           2                                                                                                           2                                                                                                           1                                                                                                           6                                                                                                           1                                                                                                           1                                                                                                           2                                                                                                           2  
                                                                                                                -------------- --------------------                                                                                            -------------- --------------------                                                                                            -------------- --------------------                                                                                            -------------- --------------------                                                                                            -------------- --------------------                                                                                            -------------- --------------------                                                                                            -------------- --------------------                                                                                            -------------- --------------------                                                                                            -------------- --------------------                                                                                            -------------- --------------------
         Operating Profit (Loss) Attributable to Celanese Corporation                                                      895                                             14.6 %                                                      216                                             13.6 %                                                      250                                             16.0 %                                                      238                                             15.8 %                                                      191                                             13.0 %                                                      887                                             16.5 %                                                      116                                              8.8 %                                                      245                                             18.5 %                                                      241                                             17.8 %                                                      285  
                                                                                                                -------------- --------------------                                                                                            -------------- --------------------                                                                                            -------------- --------------------                                                                                            -------------- --------------------                                                                                            -------------- --------------------                                                                                            -------------- --------------------                                                                                            -------------- --------------------                                                                                            -------------- --------------------                                                                                            -------------- --------------------                                                                                            -------------- --------------------
Operating Profit (Loss) / Operating Margin Attributable to
Celanese Corporation
   Advanced Engineered Materials                                                                                           383                                                                18.3 %                                                       91                                                                16.5 %                                                       97                                                                17.9 %                                                       97                                                                18.8 %                                                       98                                                                20.1 %                                                      350                                                                24.2 %                                                       87                                                                23.9 %                                                       93                                                                25.5 %                                                       82                                                                22.5 %                                                       88
   Consumer Specialties                                                                                                    218                                             27.8 %                                                       48                                             25.7 %                                                       53                                             28.3 %                                                       49                                             25.4 %                                                       68                                             31.2 %                                                      302                                             32.5 %                                                       76                                             33.8 %                                                       68                                             30.2 %                                                       80                                             34.0 %                                                       78  
                                                                                                                -------------- --------------------                                                                                            -------------- --------------------                                                                                            -------------- --------------------                                                                                            -------------- --------------------                                                                                            -------------- --------------------                                                                                            -------------- --------------------                                                                                            -------------- --------------------                                                                                            -------------- --------------------                                                                                            -------------- --------------------                                                                                            -------------- --------------------
      Total Materials Solutions                                                                                            601                                             20.9 %                                                      139                                             18.9 %                                                      150                                             20.5 %                                                      146                                             20.6 %                                                      166                                             23.5 %                                                      652                                             27.5 %                                                      163                                             27.7 %                                                      161                                             27.3 %                                                      162                                             27.0 %                                                      166  
                                                                                                                -------------- --------------------                                                                                            -------------- --------------------                                                                                            -------------- --------------------                                                                                            -------------- --------------------                                                                                            -------------- --------------------                                                                                            -------------- --------------------                                                                                            -------------- --------------------                                                                                            -------------- --------------------                                                                                            -------------- --------------------                                                                                            -------------- --------------------
   Industrial Specialties                                                                                                   87                                                                 8.5 %                                                       16                                                                 6.3 %                                                       20                                                                 7.6 %                                                       26                                                                 9.9 %                                                       25                                                                10.2 %                                                      105                                                                10.7 %                                                       20                                                                 9.1 %                                                       25                                                                10.2 %                                                       29                                                                11.1 %                                                       31
   Acetyl Intermediates(1)                                                                                                 418                                                                15.7 %                                                      159                                                                22.2 %                                                      126                                                                18.4 %                                                      107                                                                16.5 %                                                       26                                                                 4.2 %                                                      334                                                                13.7 %                                                       65                                                                10.9 %                                                       82                                                                13.9 %                                                       75                                                                12.7 %                                                      112
   Eliminations                                                                                                 --                                                                                              --                                                                                              --                                                                                              --                                                                                              --                                                                                                           1                                                                                              --                                                                                              --                                                                                                           1                                                                                              --  
                                                                                                                -------------- --------------------                                                                                            -------------- --------------------                                                                                            -------------- --------------------                                                                                            -------------- --------------------                                                                                            -------------- --------------------                                                                                            -------------- --------------------                                                                                            -------------- --------------------                                                                                            -------------- --------------------                                                                                            -------------- --------------------                                                                                            -------------- --------------------
      Total Acetyl Chain                                                                                                   505                                             15.0 %                                                      175                                             19.7 %                                                      146                                             16.9 %                                                      133                                             16.1 %                                                       51                                              6.4 %                                                      440                                             14.0 %                                                       85                                             11.3 %                                                      107                                             14.0 %                                                      105                                             13.5 %                                                      143  
                                                                                                                -------------- --------------------                                                                                            -------------- --------------------                                                                                            -------------- --------------------                                                                                            -------------- --------------------                                                                                            -------------- --------------------                                                                                            -------------- --------------------                                                                                            -------------- --------------------                                                                                            -------------- --------------------                                                                                            -------------- --------------------                                                                                            -------------- --------------------
   Other Activities(2)                                                                                                    (211 )                                                                                                                          (98 )                                                                                                                          (46 )                                                                                                                          (41 )                                                                                                                          (26 )                                                                                                                         (205 )                                                                                                                         (132 )                                                                                                                          (23 )                                                                                                                          (26 )                                                                                                                          (24 )
                                                                                                                -------------- --------------------                                                                                            -------------- --------------------                                                                                            -------------- --------------------                                                                                            -------------- --------------------                                                                                            -------------- --------------------                                                                                            -------------- --------------------                                                                                            -------------- --------------------                                                                                            -------------- --------------------                                                                                            -------------- --------------------                                                                                            -------------- --------------------
      Total                                                                                                                895                                             14.6 %                                                      216                                             13.6 %                                                      250                                             16.0 %                                                      238                                             15.8 %                                                      191                                             13.0 %                                                      887                                             16.5 %                                                      116                                              8.8 %                                                      245                                             18.5 %                                                      241                                             17.8 %                                                      285  
                                                                                                                -------------- --------------------                                                                                            -------------- --------------------                                                                                            -------------- --------------------                                                                                            -------------- --------------------                                                                                            -------------- --------------------                                                                                            -------------- --------------------                                                                                            -------------- --------------------                                                                                            -------------- --------------------                                                                                            -------------- --------------------                                                                                            -------------- --------------------
Equity Earnings, Cost-Dividend Income, Other Income (Expense)
Attributable to Celanese Corporation
   Advanced Engineered Materials                                                                                           168                                                                                                                             43                                                                                                                             45                                                                                                                             38                                                                                                                             42                                                                                                                            122                                                                                                                             31                                                                                                                             33                                                                                                                             27                                                                                                                             31
   Consumer Specialties                                                                                                    110                                                                                                          26                                                                                                          26                                                                                                          28                                                                                                          30                                                                                                         110                                                                                                          27                                                                                                          27                                                                                                          28                                                                                                          28  
                                                                                                                -------------- --------------------                                                                                            -------------- --------------------                                                                                            -------------- --------------------                                                                                            -------------- --------------------                                                                                            -------------- --------------------                                                                                            -------------- --------------------                                                                                            -------------- --------------------                                                                                            -------------- --------------------                                                                                            -------------- --------------------                                                                                            -------------- --------------------
      Total Materials Solutions                                                                                            278                                                                                                          69                                                                                                          71                                                                                                          66                                                                                                          72                                                                                                         232                                                                                                          58                                                                                                          60                                                                                                          55                                                                                                          59  
                                                                                                                -------------- --------------------                                                                                            -------------- --------------------                                                                                            -------------- --------------------                                                                                            -------------- --------------------                                                                                            -------------- --------------------                                                                                            -------------- --------------------                                                                                            -------------- --------------------                                                                                            -------------- --------------------                                                                                            -------------- --------------------                                                                                            -------------- --------------------
   Industrial Specialties                                                                                       --                                                                                                                 --                                                                                                                 --                                                                                                                 --                                                                                                                 --                                                                                                                 --                                                                                                                 --                                                                                                                 --                                                                                                                 --                                                                                                                 --
   Acetyl Intermediates                                                                                                      6                                                                                                           2                                                                                                           1                                                                                                           2                                                                                                           1                                                                                                           7                                                                                                           2                                                                                                           1                                                                                                           2                                                                                                           2  
                                                                                                                -------------- --------------------                                                                                            -------------- --------------------                                                                                            -------------- --------------------                                                                                            -------------- --------------------                                                                                            -------------- --------------------                                                                                            -------------- --------------------                                                                                            -------------- --------------------                                                                                            -------------- --------------------                                                                                            -------------- --------------------                                                                                            -------------- --------------------
      Total Acetyl Chain                                                                                                     6                                                                                                           2                                                                                                           1                                                                                                           2                                                                                                           1                                                                                                           7                                                                                                           2                                                                                                           1                                                                                                           2                                                                                                           2  
                                                                                                                -------------- --------------------                                                                                            -------------- --------------------                                                                                            -------------- --------------------                                                                                            -------------- --------------------                                                                                            -------------- --------------------                                                                                            -------------- --------------------                                                                                            -------------- --------------------                                                                                            -------------- --------------------                                                                                            -------------- --------------------                                                                                            -------------- --------------------
   Other Activities(2)                                                                                                      10                                                                                                           8                                                                                                          (4 )                                                                                                                            2                                                                                                           4                                                                                                          22                                                                                                           7                                                                                                           6                                                                                                           5                                                                                                           4  
                                                                                                                -------------- --------------------                                                                                            -------------- --------------------                                                                                            -------------- --------------------                                                                                            -------------- --------------------                                                                                            -------------- --------------------                                                                                            -------------- --------------------                                                                                            -------------- --------------------                                                                                            -------------- --------------------                                                                                            -------------- --------------------                                                                                            -------------- --------------------
      Total                                                                                                                294                                                                                                          79                                                                                                          68                                                                                                          70                                                                                                          77                                                                                                         261                                                                                                          67                                                                                                          67                                                                                                          62                                                                                                          65  
                                                                                                                -------------- --------------------                                                                                            -------------- --------------------                                                                                            -------------- --------------------                                                                                            -------------- --------------------                                                                                            -------------- --------------------                                                                                            -------------- --------------------                                                                                            -------------- --------------------                                                                                            -------------- --------------------                                                                                            -------------- --------------------                                                                                            -------------- --------------------
Certain Items Attributable to Celanese Corporation (Table 8)
   Advanced Engineered Materials                                                                                            16                                                                                                                              1                                                                                                                              5                                                                                                                              7                                                                                                                              3                                                                                                                              7                                                                                                                              3                                                                                                                              1                                                                                                                              2                                                                                                                              1
   Consumer Specialties                                                                                                      5                                                                                                           1                                                                                              --                                                                                                           2                                                                                                           2                                                                                                           6                                                                                                           3                                                                                                           3                                                                                              --                                                                                              --  
                                                                                                                -------------- --------------------                                                                                            -------------- --------------------                                                                                            -------------- --------------------                                                                                            -------------- --------------------                                                                                            -------------- --------------------                                                                                            -------------- --------------------                                                                                            -------------- --------------------                                                                                            -------------- --------------------                                                                                            -------------- --------------------                                                                                            -------------- --------------------
      Total Materials Solutions                                                                                             21                                                                                                           2                                                                                                           5                                                                                                           9                                                                                                           5                                                                                                          13                                                                                                           6                                                                                                           4                                                                                                           2                                                                                                           1  
                                                                                                                -------------- --------------------                                                                                            -------------- --------------------                                                                                            -------------- --------------------                                                                                            -------------- --------------------                                                                                            -------------- --------------------                                                                                            -------------- --------------------                                                                                            -------------- --------------------                                                                                            -------------- --------------------                                                                                            -------------- --------------------                                                                                            -------------- --------------------
   Industrial Specialties                                                                                                    3                                                                                                                 --                                                                                                                              3                                                                                                                 --                                                                                                                 --                                                                                                                              1                                                                                                                             (2 )                                                                                                               --                                                                                                                              1                                                                                                                              2
   Acetyl Intermediates                                                                                                     61                                                                                                           1                                                                                                           7                                                                                                          (3 )                                                                                                                           56                                                                                                           6                                                                                                           1                                                                                                           1                                                                                                           3                                                                                                           1  
                                                                                                                -------------- --------------------                                                                                            -------------- --------------------                                                                                            -------------- --------------------                                                                                            -------------- --------------------                                                                                            -------------- --------------------                                                                                            -------------- --------------------                                                                                            -------------- --------------------                                                                                            -------------- --------------------                                                                                            -------------- --------------------                                                                                            -------------- --------------------
      Total Acetyl Chain                                                                                                    64                                                                                                           1                                                                                                          10                                                                                                          (3 )                                                                                                                           56                                                                                                           7                                                                                                          (1 )                                                                                                                            1                                                                                                           4                                                                                                           3  
                                                                                                                -------------- --------------------                                                                                            -------------- --------------------                                                                                            -------------- --------------------                                                                                            -------------- --------------------                                                                                            -------------- --------------------                                                                                            -------------- --------------------                                                                                            -------------- --------------------                                                                                            -------------- --------------------                                                                                            -------------- --------------------                                                                                            -------------- --------------------
   Other Activities(2)                                                                                                      82                                                                                                          54                                                                                                          12                                                                                                          12                                                                                                           4                                                                                                         110                                                                                                         101                                                                                                           2                                                                                                           3                                                                                                           4  
                                                                                                                -------------- --------------------                                                                                            -------------- --------------------                                                                                            -------------- --------------------                                                                                            -------------- --------------------                                                                                            -------------- --------------------                                                                                            -------------- --------------------                                                                                            -------------- --------------------                                                                                            -------------- --------------------                                                                                            -------------- --------------------                                                                                            -------------- --------------------
      Total                                                                                                                167                                                                                                          57                                                                                                          27                                                                                                          18                                                                                                          65                                                                                                         130                                                                                                         106                                                                                                           7                                                                                                           9                                                                                                           8  
                                                                                                                -------------- --------------------                                                                                            -------------- --------------------                                                                                            -------------- --------------------                                                                                            -------------- --------------------                                                                                            -------------- --------------------                                                                                            -------------- --------------------                                                                                            -------------- --------------------                                                                                            -------------- --------------------                                                                                            -------------- --------------------                                                                                            -------------- --------------------
Adjusted EBIT / Adjusted EBIT Margin
   Advanced Engineered Materials                                                                                           567                                                                27.1 %                                                      135                                                                24.5 %                                                      147                                                                27.1 %                                                      142                                                                27.5 %                                                      143                                                                29.4 %                                                      479                                                                33.2 %                                                      121                                                                33.2 %                                                      127                                                                34.8 %                                                      111                                                                30.4 %                                                      120
   Consumer Specialties                                                                                                    333                                             42.4 %                                                       75                                             40.1 %                                                       79                                             42.2 %                                                       79                                             40.9 %                                                      100                                             45.9 %                                                      418                                             45.0 %                                                      106                                             47.1 %                                                       98                                             43.6 %                                                      108                                             46.0 %                                                      106  
                                                                                                                -------------- --------------------                                                                                            -------------- --------------------                                                                                            -------------- --------------------                                                                                            -------------- --------------------                                                                                            -------------- --------------------                                                                                            -------------- --------------------                                                                                            -------------- --------------------                                                                                            -------------- --------------------                                                                                            -------------- --------------------                                                                                            -------------- --------------------
      Total Materials Solutions                                                                                            900                                             31.3 %                                                      210                                             28.6 %                                                      226                                             31.0 %                                                      221                                             31.2 %                                                      243                                             34.5 %                                                      897                                             37.8 %                                                      227                                             38.5 %                                                      225                                             38.1 %                                                      219                                             36.5 %                                                      226  
                                                                                                                -------------- --------------------                                                                                            -------------- --------------------                                                                                            -------------- --------------------                                                                                            -------------- --------------------                                                                                            -------------- --------------------                                                                                            -------------- --------------------                                                                                            -------------- --------------------                                                                                            -------------- --------------------                                                                                            -------------- --------------------                                                                                            -------------- --------------------
   Industrial Specialties                                                                                                   90                                                                 8.8 %                                                       16                                                                 6.3 %                                                       23                                                                 8.7 %                                                       26                                                                 9.9 %                                                       25                                                                10.2 %                                                      106                                                                10.8 %                                                       18                                                                 8.2 %                                                       25                                                                10.2 %                                                       30                                                                11.5 %                                                       33
   Acetyl Intermediates                                                                                                    485                                                                18.2 %                                                      162                                                                22.6 %                                                      134                                                                19.6 %                                                      106                                                                16.3 %                                                       83                                                                13.4 %                                                      347                                                                14.2 %                                                       68                                                                11.4 %                                                       84                                                                14.3 %                                                       80                                                                13.5 %                                                      115
   Eliminations                                                                                                 --                                                                                              --                                                                                              --                                                                                              --                                                                                              --                                                                                                           1                                                                                              --                                                                                              --                                                                                                           1                                                                                              --  
                                                                                                                -------------- --------------------                                                                                            -------------- --------------------                                                                                            -------------- --------------------                                                                                            -------------- --------------------                                                                                            -------------- --------------------                                                                                            -------------- --------------------                                                                                            -------------- --------------------                                                                                            -------------- --------------------                                                                                            -------------- --------------------                                                                                            -------------- --------------------
      Total Acetyl Chain                                                                                                   575                                             17.1 %                                                      178                                             20.0 %                                                      157                                             18.2 %                                                      132                                             16.0 %                                                      108                                             13.6 %                                                      454                                             14.5 %                                                       86                                             11.5 %                                                      109                                             14.3 %                                                      111                                             14.2 %                                                      148  
                                                                                                                -------------- --------------------                                                                                            -------------- --------------------                                                                                            -------------- --------------------                                                                                            -------------- --------------------                                                                                            -------------- --------------------                                                                                            -------------- --------------------                                                                                            -------------- --------------------                                                                                            -------------- --------------------                                                                                            -------------- --------------------                                                                                            -------------- --------------------
   Other Activities(2)                                                                                                    (119 )                                                                                                                          (36 )                                                                                                                          (38 )                                                                                                                          (27 )                                                                                                                          (18 )                                                                                                                          (73 )                                                                                                                          (24 )                                                                                                                          (15 )                                                                                                                          (18 )                                                                                                                          (16 )
                                                                                                                -------------- --------------------                                                                                            -------------- --------------------                                                                                            -------------- --------------------                                                                                            -------------- --------------------                                                                                            -------------- --------------------                                                                                            -------------- --------------------                                                                                            -------------- --------------------                                                                                            -------------- --------------------                                                                                            -------------- --------------------                                                                                            -------------- --------------------
      Total                                                                                                              1,356                                             22.1 %                                                      352                                             22.1 %                                                      345                                             22.0 %                                                      326                                             21.6 %                                                      333                                             22.6 %                                                    1,278                                             23.7 %                                                      289                                             22.0 %                                                      319                                             24.1 %                                                      312                                             23.1 %                                                      358  
                                                                                                                ============== ====================                                                                                            ============== ====================                                                                                            ============== ====================                                                                                            ============== ====================                                                                                            ============== ====================                                                                                            ============== ====================                                                                                            ============== ====================                                                                                            ============== ====================                                                                                            ============== ====================                                                                                            ============== ====================
___________________________
(1)         Net earnings (loss) attributable to NCI is included within the
                               Acetyl Intermediates segment.
(2)                            Other Activities includes corporate SG&A expenses, the results of
                               captive insurance companies and certain components of net periodic
                               benefit cost (interest cost, expected return on plan assets and net
                               actuarial gains and losses).
 
 
Table 2 - Supplemental Segment Data and Reconciliation of
Segment Adjusted EBIT and Operating EBITDA - Non-GAAP Measures -
Unaudited (cont.)
 
                                                                                       2017                                                                                    Q4 ’17                                                                                   Q3 ’17                                                                                   Q2 ’17                                                                                   Q1 ’17                                                                                2016                                                                               Q4 ’16                                                                                   Q3 ’16                                                                              Q2 ’16                                                                           Q1 ’16
                                                                                     -------------------------------------------------------------------------------------                                          -------------------------------------------------------------------------------------                                          -------------------------------------------------------------------------------------                                          -------------------------------------------------------------------------------------                                          -------------------------------------------------------------------------------------                                          ----------------------------------------------------------------------------                                          -------------------------------------------------------------------------------------                                          -------------------------------------------------------------------------------------                                          --------------------------------------------------------------------------                                          ---------------------------------------------------------------------------------
                                                                                                                                                                                                                                                                                                                          (In $ millions, except percentages)
Depreciation and Amortization Expense(1)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 
   Advanced Engineered Materials                                                                108                                                                                                                             29                                                                                                                             29                                                                                                                             26                                                                                                                             24                                                                                                                    92                                                                                                                             21                                                                                                                             22                                                                                                                  25                                                                                                                             24
   Consumer Specialties                                                                          44                                                                                                          11                                                                                                          11                                                                                                          11                                                                                                          11                                                                                                 44                                                                                                          11                                                                                                          11                                                                                               11                                                                                                          11  
                                                                                     -------------- --------------------                                                                                            -------------- --------------------                                                                                            -------------- --------------------                                                                                            -------------- --------------------                                                                                            -------------- --------------------                                                                                            ----- --------------------                                                                                            -------------- --------------------                                                                                            -------------- --------------------                                                                                            --- --------------------                                                                                            -------------- --------------------
      Total Materials Solutions                                                                 152                                                                                                          40                                                                                                          40                                                                                                          37                                                                                                          35                                                                                                136                                                                                                          32                                                                                                          33                                                                                               36                                                                                                          35  
                                                                                     -------------- --------------------                                                                                            -------------- --------------------                                                                                            -------------- --------------------                                                                                            -------------- --------------------                                                                                            -------------- --------------------                                                                                            ----- --------------------                                                                                            -------------- --------------------                                                                                            -------------- --------------------                                                                                            --- --------------------                                                                                            -------------- --------------------
   Industrial Specialties                                                                        36                                                                                                                             10                                                                                                                              8                                                                                                                             10                                                                                                                              8                                                                                                                    34                                                                                                                              9                                                                                                                              9                                                                                                                   8                                                                                                                              8
   Acetyl Intermediates                                                                         105                                                                                                          27                                                                                                          26                                                                                                          26                                                                                                          26                                                                                                107                                                                                                          26                                                                                                          27                                                                                               27                                                                                                          27  
                                                                                     -------------- --------------------                                                                                            -------------- --------------------                                                                                            -------------- --------------------                                                                                            -------------- --------------------                                                                                            -------------- --------------------                                                                                            ----- --------------------                                                                                            -------------- --------------------                                                                                            -------------- --------------------                                                                                            --- --------------------                                                                                            -------------- --------------------
      Total Acetyl Chain                                                                        141                                                                                                          37                                                                                                          34                                                                                                          36                                                                                                          34                                                                                                141                                                                                                          35                                                                                                          36                                                                                               35                                                                                                          35  
                                                                                     -------------- --------------------                                                                                            -------------- --------------------                                                                                            -------------- --------------------                                                                                            -------------- --------------------                                                                                            -------------- --------------------                                                                                            ----- --------------------                                                                                            -------------- --------------------                                                                                            -------------- --------------------                                                                                            --- --------------------                                                                                            -------------- --------------------
   Other Activities(2)                                                                           10                                                                                                           2                                                                                                           4                                                                                                           2                                                                                                           2                                                                                                 11                                                                                                           4                                                                                                           2                                                                                                2                                                                                                           3  
                                                                                     -------------- --------------------                                                                                            -------------- --------------------                                                                                            -------------- --------------------                                                                                            -------------- --------------------                                                                                            -------------- --------------------                                                                                            ----- --------------------                                                                                            -------------- --------------------                                                                                            -------------- --------------------                                                                                            --- --------------------                                                                                            -------------- --------------------
      Total                                                                                     303                                                                                                          79                                                                                                          78                                                                                                          75                                                                                                          71                                                                                                288                                                                                                          71                                                                                                          71                                                                                               73                                                                                                          73  
                                                                                     -------------- --------------------                                                                                            -------------- --------------------                                                                                            -------------- --------------------                                                                                            -------------- --------------------                                                                                            -------------- --------------------                                                                                            ----- --------------------                                                                                            -------------- --------------------                                                                                            -------------- --------------------                                                                                            --- --------------------                                                                                            -------------- --------------------
Operating EBITDA / Operating EBITDA Margin
   Advanced Engineered Materials                                                                675                                                                32.2 %                                                      164                                                                29.8 %                                                      176                                                                32.4 %                                                      168                                                                32.6 %                                                      167                                                                34.3 %                                             571                                                                39.5 %                                                      142                                                                39.0 %                                                      149                                                                40.8 %                                           136                                                                37.3 %                                                      144
   Consumer Specialties                                                                         377                                             48.0 %                                                       86                                             46.0 %                                                       90                                             48.1 %                                                       90                                             46.6 %                                                      111                                             50.9 %                                             462                                             49.7 %                                                      117                                             52.0 %                                                      109                                             48.4 %                                           119                                             50.6 %                                                      117  
                                                                                     -------------- --------------------                                                                                            -------------- --------------------                                                                                            -------------- --------------------                                                                                            -------------- --------------------                                                                                            -------------- --------------------                                                                                            ----- --------------------                                                                                            -------------- --------------------                                                                                            -------------- --------------------                                                                                            --- --------------------                                                                                            -------------- --------------------
      Total Materials Solutions                                                               1,052                                             36.5 %                                                      250                                             34.0 %                                                      266                                             36.4 %                                                      258                                             36.4 %                                                      278                                             39.4 %                                           1,033                                             43.5 %                                                      259                                             44.0 %                                                      258                                             43.7 %                                           255                                             42.5 %                                                      261  
                                                                                     -------------- --------------------                                                                                            -------------- --------------------                                                                                            -------------- --------------------                                                                                            -------------- --------------------                                                                                            -------------- --------------------                                                                                            ----- --------------------                                                                                            -------------- --------------------                                                                                            -------------- --------------------                                                                                            --- --------------------                                                                                            -------------- --------------------
   Industrial Specialties                                                                       126                                                                12.3 %                                                       26                                                                10.3 %                                                       31                                                                11.7 %                                                       36                                                                13.7 %                                                       33                                                                13.5 %                                             140                                                                14.3 %                                                       27                                                                12.3 %                                                       34                                                                13.9 %                                            38                                                                14.5 %                                                       41
   Acetyl Intermediates                                                                         590                                                                22.1 %                                                      189                                                                26.4 %                                                      160                                                                23.4 %                                                      132                                                                20.3 %                                                      109                                                                17.6 %                                             454                                                                18.6 %                                                       94                                                                15.7 %                                                      111                                                                18.8 %                                           107                                                                18.1 %                                                      142
   Eliminations                                                                      --                                                                                              --                                                                                              --                                                                                              --                                                                                              --                                                                                                  1                                                                                              --                                                                                              --                                                                                                1                                                                                              --  
                                                                                     -------------- --------------------                                                                                            -------------- --------------------                                                                                            -------------- --------------------                                                                                            -------------- --------------------                                                                                            -------------- --------------------                                                                                            ----- --------------------                                                                                            -------------- --------------------                                                                                            -------------- --------------------                                                                                            --- --------------------                                                                                            -------------- --------------------
      Total Acetyl Chain                                                                        716                                             21.2 %                                                      215                                             24.2 %                                                      191                                             22.1 %                                                      168                                             20.3 %                                                      142                                             17.9 %                                             595                                             19.0 %                                                      121                                             16.2 %                                                      145                                             19.0 %                                           146                                             18.7 %                                                      183  
                                                                                     -------------- --------------------                                                                                            -------------- --------------------                                                                                            -------------- --------------------                                                                                            -------------- --------------------                                                                                            -------------- --------------------                                                                                            ----- --------------------                                                                                            -------------- --------------------                                                                                            -------------- --------------------                                                                                            --- --------------------                                                                                            -------------- --------------------
   Other Activities(2)                                                                         (109 )                                                                                                                          (34 )                                                                                                                          (34 )                                                                                                                          (25 )                                                                                                                          (16 )                                                                                                                 (62 )                                                                                                                          (20 )                                                                                                                          (13 )                                                                                                               (16 )                                                                                                                          (13 )
                                                                                     -------------- --------------------                                                                                            -------------- --------------------                                                                                            -------------- --------------------                                                                                            -------------- --------------------                                                                                            -------------- --------------------                                                                                            ----- --------------------                                                                                            -------------- --------------------                                                                                            -------------- --------------------                                                                                            --- --------------------                                                                                            -------------- --------------------
      Total                                                                                   1,659                                             27.0 %                                                      431                                             27.1 %                                                      423                                             27.0 %                                                      401                                             26.6 %                                                      404                                             27.5 %                                           1,566                                             29.1 %                                                      360                                             27.5 %                                                      390                                             29.5 %                                           385                                             28.5 %                                                      431  
                                                                                     ============== ====================                                                                                            ============== ====================                                                                                            ============== ====================                                                                                            ============== ====================                                                                                            ============== ====================                                                                                            ===== ====================                                                                                            ============== ====================                                                                                            ============== ====================                                                                                            === ====================                                                                                            ============== ====================
___________________________
(1)         Excludes accelerated depreciation and amortization expense, which
                               amounts are included in Certain Items above. See Table 1 for details.
(2)                            Other Activities includes corporate SG&A expenses, the results of
                               captive insurance companies and certain components of net periodic
                               benefit cost (interest cost, expected return on plan assets and net
                               actuarial gains and losses).
 
 
Table 3
Adjusted Earnings (Loss) per Share - Reconciliation of a Non-GAAP
Measure - Unaudited
 
                                                                                                                                                                                                      2017                                                                                       Q4 ’17                                                                                      Q3 ’17                                                                                      Q2 ’17                                                                                      Q1 ’17                                                                                  2016                                                                                   Q4 ’16                                                                                 Q3 ’16                                                                                  Q2 ’16                                                                                 Q1 ’16
                                                                                                                                                                                                  ----------------------------------------------------------------------------------------                                          ----------------------------------------------------------------------------------------                                          ----------------------------------------------------------------------------------------                                          ----------------------------------------------------------------------------------------                                          ----------------------------------------------------------------------------------------                                          -------------------------------------------------------------------------------                                          ----------------------------------------------------------------------------------------                                          -------------------------------------------------------------------------------                                          ----------------------------------------------------------------------------------------                                          -------------------------------------------------------------------------------
                                                                                                                                                                                                                                           per share                                                                                   per share                                                                                   per share                                                                                   per share                                                                                   per share                                                                          per share                                                                                   per share                                                                          per share                                                                                   per share                                                                          per share
                                                                                                                                                                                                                                                                                                                                                                                                                                       (In $ millions, except per share data)
Earnings (loss) from continuing operations attributable to Celanese                                                                                                                                          856                                                                     6.19                                                      204                                                                     1.50                                                      230                                                                     1.68                                                      239                                                                     1.72                                                      183                                                                     1.30                                             902                                                                     6.19                                                      160                                                                     1.12                                             265                                                                     1.83                                                      221                                                                     1.50                                             256                                                                     1.73
Corporation
Income tax provision (benefit)                                                                                                                                                                               213                                                                                                             60                                                                                                             57                                                                                                             40                                                                                                             56                                                                                                   122                                                                                                             (5 )                                                                                                                     15                                                                                                             52                                                                                                    60  
                                                                                                                                                                                                  -------------- --------------------                                                                                               -------------- --------------------                                                                                               -------------- --------------------                                                                                               -------------- --------------------                                                                                               -------------- --------------------                                                                                               ----- --------------------                                                                                               -------------- --------------------                                                                                               ----- --------------------                                                                                               -------------- --------------------                                                                                               ----- --------------------
   Earnings (loss) from continuing operations before tax                                                                                                                                                   1,069                                                                                                                               264                                                                                                                               287                                                                                                                               279                                                                                                                               239                                                                                                                    1,024                                                                                                                               155                                                                                                                      280                                                                                                                               273                                                                                                                      316
Certain Items attributable to Celanese Corporation (Table 8)                                                                                                                                                 167                                                                                                                                57                                                                                                                                27                                                                                                                                18                                                                                                                                65                                                                                                                      130                                                                                                                               106                                                                                                                        7                                                                                                                                 9                                                                                                                        8
Refinancing and related expenses                                                                                                                                                                  --                                                                                                 --                                                                                                 --                                                                                                 --                                                                                                 --                                                                                                     6                                                                                                 --                                                                                                     4                                                                                                 --                                                                                                     2  
                                                                                                                                                                                                  -------------- --------------------                                                                                               -------------- --------------------                                                                                               -------------- --------------------                                                                                               -------------- --------------------                                                                                               -------------- --------------------                                                                                               ----- --------------------                                                                                               -------------- --------------------                                                                                               ----- --------------------                                                                                               -------------- --------------------                                                                                               ----- --------------------
   Adjusted earnings (loss) from continuing operations before tax                                                                                                                                          1,236                                                                                                                               321                                                                                                                               314                                                                                                                               297                                                                                                                               304                                                                                                                    1,160                                                                                                                               261                                                                                                                      291                                                                                                                               282                                                                                                                      326
Income tax (provision) benefit on adjusted earnings(1)                                                                                                                                                      (198 )                                                                                                                             (51 )                                                                                                                             (50 )                                                                                                                             (48 )                                                                                                                             (49 )                                                                                                                   (197 )                                                                                                                             (44 )                                                                                                                    (49 )                                                                                                                             (48 )                                                                                                                    (55 )
                                                                                                                                                                                                  -------------- --------------------                                                                                               -------------- --------------------                                                                                               -------------- --------------------                                                                                               -------------- --------------------                                                                                               -------------- --------------------                                                                                               ----- --------------------                                                                                               -------------- --------------------                                                                                               ----- --------------------                                                                                               -------------- --------------------                                                                                               ----- --------------------
      Adjusted earnings (loss) from continuing operations(2)                                                                                                                                               1,038                                                  7.51                                                      270                                                  1.98                                                      264                                                  1.93                                                      249                                                  1.79                                                      255                                                  1.81                                             963                                                  6.61                                                      217                                                  1.52                                             242                                                  1.67                                                      234                                                  1.59                                             271                                                  1.83
                                                                                                                                                                                                  ============== ====================                                           =========                                           ============== ====================                                           =========                                           ============== ====================                                           =========                                           ============== ====================                                           =========                                           ============== ====================                                           =========                                           ===== ====================                                           =========                                           ============== ====================                                           =========                                           ===== ====================                                           =========                                           ============== ====================                                           =========                                           ===== ====================                                           =========
                                                                                                                                                                                                   
                                                                                                                                                                                                                                                                                                                                                                                                                                       Diluted shares (in millions)(3)
Weighted average shares outstanding                                                                                                                                                                        137.9                                                                                                                             135.8                                                                                                                             136.6                                                                                                                             138.6                                                                                                                             140.6                                                                                                                    144.9                                                                                                                             141.9                                                                                                                    144.0                                                                                                                             146.5                                                                                                                    147.4
Incremental shares attributable to equity awards                                                                                                                                                             0.4                                                                                                            0.5                                                                                                            0.4                                                                                                            0.4                                                                                                            0.4                                                                                                   0.8                                                                                                            0.7                                                                                                   0.6                                                                                                            0.6                                                                                                   0.7  
                                                                                                                                                                                                  -------------- --------------------                                                                                               -------------- --------------------                                                                                               -------------- --------------------                                                                                               -------------- --------------------                                                                                               -------------- --------------------                                                                                               ----- --------------------                                                                                               -------------- --------------------                                                                                               ----- --------------------                                                                                               -------------- --------------------                                                                                               ----- --------------------
   Total diluted shares                                                                                                                                                                                    138.3                                                                                                          136.3                                                                                                          137.0                                                                                                          139.0                                                                                                          141.0                                                                                                 145.7                                                                                                          142.6                                                                                                 144.6                                                                                                          147.1                                                                                                 148.1  
                                                                                                                                                                                                  ============== ====================                                                                                               ============== ====================                                                                                               ============== ====================                                                                                               ============== ====================                                                                                               ============== ====================                                                                                               ===== ====================                                                                                               ============== ====================                                                                                               ===== ====================                                                                                               ============== ====================                                                                                               ===== ====================
                                                                                                                                                                                                   
______________________________
                                                                                                                                                                                                   
    (1)   Calculated using adjusted effective tax rates (Table 3a) as
                             follows:
                              
                                                                                                                                                                                                                                            2017                                                                                                                             Q4 ’17                                                                                                                            Q3 ’17                                                                                                                            Q2 ’17                                                                                                                            Q1 ’17                                                                                                                        2016                                                                                                                         Q4 ’16                                                                                                                       Q3 ’16                                                                                                                        Q2 ’16                                                                                                                       Q1 ’16
                                                                                                                                                                                                  ----------------------------------------------------------------------------------------                                          ----------------------------------------------------------------------------------------                                          ----------------------------------------------------------------------------------------                                          ----------------------------------------------------------------------------------------                                          ----------------------------------------------------------------------------------------                                          -------------------------------------------------------------------------------                                          ----------------------------------------------------------------------------------------                                          -------------------------------------------------------------------------------                                          ----------------------------------------------------------------------------------------                                          -------------------------------------------------------------------------------
                                                                                                                                                                                                                                                                                                                                                                                                                                       (In percentages)
                             Adjusted effective tax rate                                                                                                                                                      16                                                                                                                                16                                                                                                                                16                                                                                                                                16                                                                                                                                16                                                                                                                       17                                                                                                                                17                                                                                                                       17                                                                                                                                17                                                                                                                       17
                                                                                                                                                                                                   
                                                                                                                                                                                                   
    (2)                      Excludes the immediate recognition of actuarial gains and losses
                             and the impact of actual vs. expected plan asset returns.
                                                                                                                                                                                                   
                                                 Actual Plan      Expected
                                                                                      Asset Returns                                          Plan Asset
                                                                                                                                               Returns
                                                                                     -------------                                           ----------
                                                                                                              (In percentages)
                             Q4 ’17 & 2017                                                    10.5                                                  7.3
                             Q4 ’16 & 2016                                                     6.9                                                  7.3
                                                                                                                                                                                                   
                                                                                                                                                                                                   
    (3)                      Potentially dilutive shares are included in the adjusted earnings
                             per share calculation when adjusted earnings are positive.
 
 
Table 3a
Adjusted Tax Rate - Reconciliation of a Non-GAAP Measure -
Unaudited
 
                                                                                                                         Actual
                                                                                                                         2017                                2016
                                                                                                             ----------------------------                                          ------------------------------------
                                                                                                                                                          (In percentages)
US GAAP effective tax rate                                                                                       20                                                                            12
Discrete quarterly recognition of GAAP items(1)                                                                 (11 )                                                                           1
Tax impact of other charges and adjustments(2)                                                                    1                                                                             3
Recognition of foreign tax credits                                                                               20                                                                --
Changes in valuation allowances, excluding impact of other charges                                              (13 )                                                                           2
and adjustments(3)
Other(4)                                                                                                         (1 )                                                                          (1 )
                                                                                                             ------ --------------------                                           -------------- --------------------
   Adjusted tax rate                                                                                             16                                                         17  
                                                                                                             ====== ====================                                           ============== ====================
______________________________
Note: As part of the year-end reconciliation, we updated the
reconciliation of the GAAP effective tax rate for actual results.
(1)                      Such as changes in tax laws (including US tax reform), deferred
                                            taxes on outside basis differences, changes in uncertain tax
                                            positions and prior year audit adjustments.
(2)                                         Reflects the tax impact on pre-tax adjustments presented in Certain
                                            Items (Table 8), which are excluded from pre-tax income for adjusted
                                            earnings per share purposes.
(3)                                         Reflects changes in valuation allowances related to changes in
                                            judgment regarding the realizability of deferred tax assets or
                                            current year operations, excluding other charges and adjustments.
(4)                                         Tax impacts related to full-year forecasted tax opportunities and
                                            related costs.
 
 
Table 4
Net Sales by Segment - Unaudited
 
                                                                                           2017                                   Q4 ’17                                  Q3 ’17                                  Q2 ’17                                  Q1 ’17                                   2016                                   Q4 ’16                                  Q3 ’16                                  Q2 ’16                                  Q1 ’16
                                                                                                                 ------------------------------------                                          ------------------------------------                                          ------------------------------------                                          ------------------------------------                                          ------------------------------------                                          ------------------------------------                                          ------------------------------------                                          ------------------------------------                                          ------------------------------------                                          ------------------------------------
                                                                                                                                                                                                                                                                                                                                                      (In $ millions)
Advanced Engineered Materials                                                                                             2,096                                                                           550                                                                           543                                                                           516                                                                           487                                                                         1,444                                                                           364                                                                           365                                                                           365                                                                           350
Consumer Specialties                                                                                                        785                                                                           187                                                                           187                                                                           193                                                                           218                                                                           929                                                                           225                                                                           225                                                                           235                                                                           244
Eliminations(1)                                                                                                              (2 )                                                                          (2 )                                                              --                                             --                                             --                                             --                                             --                                             --                                             --                                             --  
                                                                                                                 -------------- --------------------                                           -------------- --------------------                                           -------------- --------------------                                           -------------- --------------------                                           -------------- --------------------                                           -------------- --------------------                                           -------------- --------------------                                           -------------- --------------------                                           -------------- --------------------                                           -------------- --------------------
   Total Materials Solutions                                                                                              2,879                                                        735                                                        730                                                        709                                                        705                                                      2,373                                                        589                                                        590                                                        600                                                        594  
                                                                                                                 -------------- --------------------                                           -------------- --------------------                                           -------------- --------------------                                           -------------- --------------------                                           -------------- --------------------                                           -------------- --------------------                                           -------------- --------------------                                           -------------- --------------------                                           -------------- --------------------                                           -------------- --------------------
Industrial Specialties                                                                                                    1,023                                                                           252                                                                           264                                                                           262                                                                           245                                                                           979                                                                           219                                                                           245                                                                           262                                                                           253
Acetyl Intermediates                                                                                                      2,669                                                                           717                                                                           684                                                                           649                                                                           619                                                                         2,441                                                                           597                                                                           589                                                                           592                                                                           663
Eliminations(1)                                                                                                            (321 )                                                                         (81 )                                                                         (85 )                                                                         (85 )                                                                         (70 )                                                                        (288 )                                                                         (67 )                                                                         (71 )                                                                         (74 )                                                                         (76 )
                                                                                                                 -------------- --------------------                                           -------------- --------------------                                           -------------- --------------------                                           -------------- --------------------                                           -------------- --------------------                                           -------------- --------------------                                           -------------- --------------------                                           -------------- --------------------                                           -------------- --------------------                                           -------------- --------------------
   Total Acetyl Chain                                                                                                     3,371                                                        888                                                        863                                                        826                                                        794                                                      3,132                                                        749                                                        763                                                        780                                                        840  
                                                                                                                 -------------- --------------------                                           -------------- --------------------                                           -------------- --------------------                                           -------------- --------------------                                           -------------- --------------------                                           -------------- --------------------                                           -------------- --------------------                                           -------------- --------------------                                           -------------- --------------------                                           -------------- --------------------
Other Activities(2)                                                                                              --                                                                --                                                                --                                                                --                                                                --                                                                --                                                                --                                                                --                                                                --                                                                --
Intersegment eliminations(1)                                                                                               (110 )                                                                         (30 )                                                                         (27 )                                                                         (25 )                                                                         (28 )                                                                        (116 )                                                                         (27 )                                                                         (30 )                                                                         (29 )                                                                         (30 )
                                                                                                                 -------------- --------------------                                           -------------- --------------------                                           -------------- --------------------                                           -------------- --------------------                                           -------------- --------------------                                           -------------- --------------------                                           -------------- --------------------                                           -------------- --------------------                                           -------------- --------------------                                           -------------- --------------------
   Net sales                                                                                                              6,140                                                      1,593                                                      1,566                                                      1,510                                                      1,471                                                      5,389                                                      1,311                                                      1,323                                                      1,351                                                      1,404  
                                                                                                                 -------------- --------------------                                           -------------- --------------------                                           -------------- --------------------                                           -------------- --------------------                                           -------------- --------------------                                           -------------- --------------------                                           -------------- --------------------                                           -------------- --------------------                                           -------------- --------------------                                           -------------- --------------------
___________________________
           
(1)                            Includes intersegment sales as follows:
                                                                                                                                 2017                                                                         Q4 ’17                                                                        Q3 ’17                                                                        Q2 ’17                                                                        Q1 ’17                                                                         2016                                                                         Q4 ’16                                                                        Q3 ’16                                                                        Q2 ’16                                                                        Q1 ’16
                                                                                                                 ------------------------------------                                          ------------------------------------                                          ------------------------------------                                          ------------------------------------                                          ------------------------------------                                          ------------------------------------                                          ------------------------------------                                          ------------------------------------                                          ------------------------------------                                          ------------------------------------
                                                                                                                                                                                                                                                                                                                                                      (In $ millions)
                               Consumer Specialties                                                                          (2 )                                                                          (2 )                                                              --                                                                --                                                                --                                                                --                                                                --                                                                --                                                                --                                                                --
                               Industrial Specialties                                                                        (4 )                                                                          (1 )                                                                          (1 )                                                                          (1 )                                                                          (1 )                                                                          (3 )                                                                          (1 )                                                                          (1 )                                                                          (1 )                                                              --
                               Acetyl Intermediates                                                                        (427 )                                                                        (110 )                                                                        (111 )                                                                        (109 )                                                                         (97 )                                                                        (401 )                                                                         (93 )                                                                        (100 )                                                                        (102 )                                                                        (106 )
                                                                                                                 -------------- --------------------                                           -------------- --------------------                                           -------------- --------------------                                           -------------- --------------------                                           -------------- --------------------                                           -------------- --------------------                                           -------------- --------------------                                           -------------- --------------------                                           -------------- --------------------                                           -------------- --------------------
                                  Intersegment eliminations                                                                (433 )                                                                        (113 )                                                                        (112 )                                                                        (110 )                                                                         (98 )                                                                        (404 )                                                                         (94 )                                                                        (101 )                                                                        (103 )                                                                        (106 )
                                                                                                                 -------------- --------------------                                           -------------- --------------------                                           -------------- --------------------                                           -------------- --------------------                                           -------------- --------------------                                           -------------- --------------------                                           -------------- --------------------                                           -------------- --------------------                                           -------------- --------------------                                           -------------- --------------------
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                
(2)                            Other Activities includes corporate SG&A expenses, the results of
                               captive insurance companies and certain components of net periodic
                               benefit cost (interest cost, expected return on plan assets and
                               net actuarial gains and losses).
 
 
Table 4a
Factors Affecting Segment Net Sales Sequentially - Unaudited
 
Three Months Ended December 31, 2017 Compared to Three Months
Ended September 30, 2017
 
                                   Volume       Price        Currency             Other                 Total
                                                                        --------                                          --------                                          --------------                                           --------------                                           ---------------------
                                                                                                                                                                                     (In percentages)
Advanced Engineered Materials                                            (9 )                                              10                                               --                                           --                                                        1
Consumer Specialties                                                      2                                                (2 )                                             --                                           --                                           --
   Total Materials Solutions                                             (6 )                                               7                                               --                                           --                                                        1
                                                                                                                                                                                                                                                                                               
Industrial Specialties                                                   (6 )                                               1                                               --                                           --                                                       (5 )
Acetyl Intermediates                                                     (4 )                                               9                                               --                                           --                                                        5
   Total Acetyl Chain                                                    (5 )                                               7                                               --                                                        1                                                        3
                                                                                                                                                                                                                                                                                               
Total Company                                                            (5 )                                               7                                               --                                           --                                                        2
 
 
Three Months Ended September 30, 2017 Compared to Three Months
Ended June 30, 2017
 
                                         Volume                   Price           Currency          Other                 Total
                                                                        --------------------                                          --------------------                                          --------                                           --------------                                           ---------------------
                                                                                                                                                                                              (In percentages)
Advanced Engineered Materials                                           --                                                             2                                                       3                                           --                                                    5
Consumer Specialties                                                                (4 )                                              --                                                       1                                           --                                                   (3 )
   Total Materials Solutions                                                        (1 )                                                           1                                                       3                                           --                                                    3
                                                                                                                                                                                                                                                                                                                 
Industrial Specialties                                                              (4 )                                                           2                                                       3                                           --                                                    1
Acetyl Intermediates                                                                 3                                                            (1 )                                                     3                                           --                                                    5
   Total Acetyl Chain                                                                1                                                --                                                       3                                           --                                                    4
                                                                                                                                                                                                                                                                                                                 
Total Company                                                           --                                                             1                                                       3                                           --                                                    4
 
 
Three Months Ended June 30, 2017 Compared to Three Months Ended
March 31, 2017
 
                                        Volume                  Price              Currency               Other                  Total        
                                                                        -------------------                                          -------------------                                          --------------                                           -------------------                                          -------------------
                                                                                                                                                                                                 (In percentages)
Advanced Engineered Materials                                                        4                                               --                                                            2                                           --                                                            6                          (1)
Consumer Specialties                                                               (10 )                                                         (2 )                                             --                                           --                                                          (12 )
   Total Materials Solutions                                            --                                                           (1 )                                                          1                                           --                                               --
                                                                                                                                                                                                                                                                                                                                                                 
Industrial Specialties                                                               2                                                            3                                                            2                                           --                                                            7
Acetyl Intermediates                                                                (1 )                                                          5                                                            1                                           --                                                            5
   Total Acetyl Chain                                                   --                                                            5                                                            1                                                       (2 )                                                          4
                                                                                                                                                                                                                                                                                                                                                                 
Total Company                                                           --                                                            3                                                            1                                                       (1 )                                                          3
 
 
Three Months Ended March 31, 2017 Compared to Three Months
Ended December 31, 2016
 
                                   Volume            Price                 Currency               Other           Total  
                                                                        --------                                          -------------------                                          --------------------                                          --------------                                           --------
                                                                                                                                                                                       (In percentages)
Advanced Engineered Materials                                            35                                               --                                                           (1 )                                              --                                            34                          (2)
Consumer Specialties                                                      3                                                           (6 )                                             --                                                --                                            (3 )
   Total Materials Solutions                                             22                                                           (2 )                                             --                                                --                                            20
                                                                                                                                                                                                                                                                                                                                            
Industrial Specialties                                                   11                                                            1                                               --                                                --                                            12
Acetyl Intermediates                                                     (2 )                                                          6                                               --                                                --                                             4
   Total Acetyl Chain                                                     2                                                            5                                                           (1 )                                              --                                             6
                                                                                                                                                                                                                                                                                                                                            
Total Company                                                            11                                                            2                                                           (1 )                                              --                                            12
___________________________
(1)         2017 includes the effect of the acquisition of the nylon compounding
                               division of Nilit Group.
(2)                            2017 includes the effect of the SO.F.TER. S.r.l. acquisition.
 
 
Three Months Ended December 31, 2016 Compared to Three Months
Ended September 30, 2016
 
                                         Volume                   Price                 Currency               Other                 Total
                                                                        --------------------                                          --------------------                                          --------------------                                          --------------                                           ---------------------
                                                                                                                                                                                                    (In percentages)
Advanced Engineered Materials                                                        1                                                --                                                            (1 )                                              --                                           --
Consumer Specialties                                                                 2                                                            (2 )                                              --                                                --                                           --
   Total Materials Solutions                                                         2                                                            (1 )                                                          (1 )                                              --                                           --
                                                                                                                                                                                                                                                                                                                            
Industrial Specialties                                                              (7 )                                                          (2 )                                                          (2 )                                              --                                                      (11 )
Acetyl Intermediates                                                    --                                                             2                                                            (1 )                                              --                                                        1
   Total Acetyl Chain                                                               (2 )                                                           1                                                            (2 )                                                           1                                                       (2 )
                                                                                                                                                                                                                                                                                                                            
Total Company                                                                       (1 )                                                           1                                                            (1 )                                              --                                                       (1 )
 
 
Three Months Ended September 30, 2016 Compared to Three Months
Ended June 30, 2016
 
                                         Volume                Price               Currency               Other                 Total
                                                                        --------------------                                          --------------                                           --------------------                                          --------------                                           ---------------------
                                                                                                                                                                                                 (In percentages)
Advanced Engineered Materials                                                       (1 )                                                           1                                           --                                                --                                           --
Consumer Specialties                                                                (4 )                                              --                                           --                                                --                                                       (4 )
   Total Materials Solutions                                                        (2 )                                              --                                           --                                                --                                                       (2 )
                                                                                                                                                                                                                                                                                                                       
Industrial Specialties                                                              (6 )                                              --                                                       (1 )                                              --                                                       (7 )
Acetyl Intermediates                                                    --                                                --                                           --                                                --                                           --
   Total Acetyl Chain                                                               (2 )                                              --                                                       (1 )                                                           1                                                       (2 )
                                                                                                                                                                                                                                                                                                                       
Total Company                                                                       (2 )                                              --                                           --                                                --                                                       (2 )
 
 
Table 4a
Factors Affecting Segment Net Sales Sequentially - Unaudited
(cont.)
 
Three Months Ended June 30, 2016 Compared to Three Months Ended
March 31, 2016
 
                                   Volume            Price              Currency             Other                 Total
                                                                        --------                                          -------------------                                          --------------                                           --------------                                           ---------------------
                                                                                                                                                                                           (In percentages)
Advanced Engineered Materials                                             6                                                           (2 )                                                          1                                           --                                                    5
Consumer Specialties                                                     (3 )                                                         (1 )                                             --                                           --                                                   (4 )
                                                                          2                                                           (2 )                                                          1                                           --                                                    1
   Total Materials Solutions
                                                                                                                                                                                                                                                                                                          
Industrial Specialties                                                    4                                                           (1 )                                                          1                                           --                                                    4
Acetyl Intermediates                                                    (11 )                                             --                                               --                                           --                                                  (11 )
   Total Acetyl Chain                                                    (7 )                                                         (1 )                                                          1                                           --                                                   (7 )
                                                                                                                                                                                                                                                                                                          
Total Company                                                            (4 )                                                         (1 )                                                          1                                           --                                                   (4 )
 
 
Three Months Ended March 31, 2016 Compared to Three Months
Ended December 31, 2015
 
                                  Volume             Price              Currency                Other                   Total
                                                                        ------                                           --------------------                                          --------------                                           --------------------                                          ---------------------
                                                                                                                                                                                             (In percentages)
Advanced Engineered Materials                                               12                                           --                                                --                                           --                                                        12
Consumer Specialties                                                         6                                                       (7 )                                              --                                           --                                                        (1 )
   Total Materials Solutions                                                10                                                       (3 )                                              --                                           --                                                         7
                                                                                                                                                                                                                                                                                                               
Industrial Specialties                                                       9                                                       (3 )                                              --                                           --                                                         6
Acetyl Intermediates                                                         7                                                       (4 )                                              --                                           --                                                         3
   Total Acetyl Chain                                                        8                                                       (4 )                                              --                                                       (1 )                                                       3
                                                                                                                                                                                                                                                                                                               
Total Company                                                                9                                                       (4 )                                              --                                           --                                                         5
 
 
Table 4b
Factors Affecting Segment Net Sales Year Over Year - Unaudited
 
Three Months Ended December 31, 2017 Compared to Three Months
Ended December 31, 2016
 
                                   Volume            Price           Currency            Other                   Total
                                                                        --------                                          -------------------                                          --------                                           -------------------                                          ---------------------
                                                                                                                                                                                          (In percentages)
Advanced Engineered Materials                                            47                                               --                                                      4                                           --                                                       51
Consumer Specialties                                                    (11 )                                                         (8 )                                                    1                                                        1                                                      (17 )
   Total Materials Solutions                                             25                                                           (3 )                                                    3                                           --                                                       25
                                                                                                                                                                                                                                                                                                        
Industrial Specialties                                                    3                                                            7                                                      5                                           --                                                       15
Acetyl Intermediates                                                     (4 )                                                         21                                                      3                                           --                                                       20
   Total Acetyl Chain                                                    (2 )                                                         19                                                      4                                                       (2 )                                                     19
                                                                                                                                                                                                                                                                                                        
Total Company                                                            10                                                           10                                                      3                                                       (1 )                                                     22
 
 
Three Months Ended September 30, 2017 Compared to Three Months
Ended September 30, 2016
 
                                         Volume              Price      Currency             Other                   Total
                                                                        --------------------                                          ----------                                          --------                                           --------------------                                          ---------------------
                                                                                                                                                                                            (In percentages)
Advanced Engineered Materials                                                       49                                                  (2 )                                                     2                                           --                                                        49
Consumer Specialties                                                               (10 )                                                (8 )                                                     1                                           --                                                       (17 )
   Total Materials Solutions                                                        26                                                  (4 )                                                     2                                           --                                                        24
                                                                                                                                                                                                                                                                                                            
Industrial Specialties                                                               2                                                   4                                                       2                                           --                                                         8
Acetyl Intermediates                                                                (1 )                                                16                                                       1                                           --                                                        16
   Total Acetyl Chain                                                   --                                                  13                                                       2                                                       (2 )                                                      13
                                                                                                                                                                                                                                                                                                            
Total Company                                                                       11                                                   6                                                       2                                                       (1 )                                                      18
 
 
Three Months Ended June 30, 2017 Compared to Three Months Ended
June 30, 2016
 
                                   Volume       Price           Currency                 Other                   Total
                                                                        --------                                          --------                                          --------------------                                          -------------------                                          ---------------------
                                                                                                                                                                                          (In percentages)
Advanced Engineered Materials                                            44                                                (2 )                                                         (1 )                                              --                                                           41
Consumer Specialties                                                     (9 )                                              (9 )                                             --                                                --                                                          (18 )
   Total Materials Solutions                                             23                                                (4 )                                                         (1 )                                              --                                                           18
                                                                                                                                                                                                                                                                                                        
Industrial Specialties                                                   (1 )                                               3                                                           (2 )                                              --                                               --
Acetyl Intermediates                                                     (4 )                                              14                                                           (1 )                                                           1                                                           10
   Total Acetyl Chain                                                    (3 )                                              12                                                           (2 )                                                          (1 )                                                          6
                                                                                                                                                                                                                                                                                                        
Total Company                                                             8                                                 5                                                           (1 )                                              --                                                           12
 
 
Three Months Ended March 31, 2017 Compared to Three Months
Ended March 31, 2016
 
                                   Volume       Price      Currency          Other                 Total
                                                                        --------                                          --------                                          ----------                                          --------------                                           ---------------------
                                                                                                                                                                                   (In percentages)
Advanced Engineered Materials                                            44                                                (3 )                                               (2 )                                              --                                                   39
Consumer Specialties                                                     (2 )                                              (8 )                                               (1 )                                              --                                                  (11 )
   Total Materials Solutions                                             25                                                (5 )                                               (1 )                                              --                                                   19
                                                                                                                                                                                                                                                                                          
Industrial Specialties                                                    1                                                (2 )                                               (2 )                                              --                                                   (3 )
Acetyl Intermediates                                                    (12 )                                               7                                                 (2 )                                              --                                                   (7 )
   Total Acetyl Chain                                                    (9 )                                               5                                                 (2 )                                                           1                                                   (5 )
                                                                                                                                                                                                                                                                                          
Total Company                                                             5                                                 1                                                 (2 )                                                           1                                                    5
 
 
Three Months Ended December 31, 2016 Compared to Three Months
Ended December 31, 2015
 
                                  Volume      Price       Currency             Other                 Total
                                                                        ------                                           -----                                           --------------                                           --------------                                           --------------------
                                                                                                                                                                                    (In percentages)
Advanced Engineered Materials                                               20                                             (2)                                                      (1)                                           --                                                             17
Consumer Specialties                                                         2                                            (11)                                           --                                           --                                                            (9)
   Total Materials Solutions                                                12                                             (6)                                           --                                           --                                                              6
                                                                                                                                                                                                                                                                                            
Industrial Specialties                                                     (1)                                             (6)                                                      (1)                                           --                                                            (8)
Acetyl Intermediates                                                       (4)                                             (2)                                                      (2)                                                        1                                                            (7)
   Total Acetyl Chain                                                      (4)                                             (3)                                                      (2)                                                        1                                                            (8)
                                                                                                                                                                                                                                                                                            
Total Company                                                                2                                             (4)                                                      (1)                                                        1                                                            (2)
 
 
Three Months Ended September 30, 2016 Compared to Three Months
Ended September 30, 2015
 
                                    Volume         Price            Currency               Other                 Total
                                                                        ----------                                          ----------                                          --------------------                                          --------------                                           ---------------------
                                                                                                                                                                                          (In percentages)
Advanced Engineered Materials                                             16                                                  (4 )                                              --                                                --                                                   12
Consumer Specialties                                                      (2 )                                                (7 )                                              --                                                --                                                   (9 )
   Total Materials Solutions                                               8                                                  (5 )                                              --                                                --                                                    3
                                                                                                                                                                                                                                                                                                        
Industrial Specialties                                                    (1 )                                                (9 )                                                          (1 )                                              --                                                  (11 )
Acetyl Intermediates                                                      (3 )                                               (11 )                                              --                                                             1                                                  (13 )
   Total Acetyl Chain                                                     (3 )                                               (12 )                                              --                                                             2                                                  (13 )
                                                                                                                                                                                                                                                                                                        
Total Company                                                              1                                                  (9 )                                              --                                                             2                                                   (6 )
 
 
Table 4b
Factors Affecting Segment Net Sales Year Over Year - Unaudited
(cont.)
 
Three Months Ended June 30, 2016 Compared to Three Months Ended
June 30, 2015
 
                                        Volume             Price        Currency             Other                 Total
                                                                        -------------------                                          --------                                          --------------                                           --------------                                           ---------------------
                                                                                                                                                                                           (In percentages)
Advanced Engineered Materials                                                        8                                                (4 )                                                          1                                           --                                                    5
Consumer Specialties                                                                 2                                                (8 )                                             --                                           --                                                   (6 )
   Total Materials Solutions                                                         5                                                (5 )                                                          1                                           --                                                    1
                                                                                                                                                                                                                                                                                                          
Industrial Specialties                                                              (1 )                                              (8 )                                             --                                           --                                                   (9 )
Acetyl Intermediates                                                                (5 )                                             (13 )                                             --                                                        2                                                  (16 )
   Total Acetyl Chain                                                               (4 )                                             (12 )                                             --                                                        2                                                  (14 )
                                                                                                                                                                                                                                                                                                          
Total Company                                                           --                                               (10 )                                             --                                                        1                                                   (9 )
 
 
Three Months Ended March 31, 2016 Compared to Three Months
Ended March 31, 2015
 
                                      Volume            Price            Currency               Other                 Total
                                                                        --------------                                           ----------                                          --------------------                                          --------------                                           ---------------------
                                                                                                                                                                                            (In percentages)
Advanced Engineered Materials                                                        5                                             (2 )                                                          (1 )                                              --                                                    2
Consumer Specialties                                                                17                                             (9 )                                              --                                                --                                                    8
   Total Materials Solutions                                                         9                                             (5 )                                              --                                                --                                                    4
                                                                                                                                                                                                                                                                                                             
Industrial Specialties                                                  --                                             (9 )                                                          (1 )                                              --                                                  (10 )
Acetyl Intermediates                                                                 6                                            (13 )                                                          (2 )                                                           2                                                   (7 )
   Total Acetyl Chain                                                                5                                            (13 )                                                          (2 )                                                           1                                                   (9 )
                                                                                                                                                                                                                                                                                                             
Total Company                                                                        7                                            (10 )                                                          (2 )                                                           1                                                   (4 )
 
 
Table 4c
Factors Affecting Segment Net Sales Year Over Year - Unaudited
 
Year Ended December 31, 2017 Compared to Year Ended December 31,
2016
 
                                   Volume       Price        Currency             Other                 Total
                                                                        --------                                          --------                                          --------------                                           --------------                                           ---------------------
                                                                                                                                                                                     (In percentages)
Advanced Engineered Materials                                            46                                                (2 )                                                          1                                           --                                                   45
Consumer Specialties                                                     (8 )                                              (8 )                                             --                                           --                                                  (16 )
   Total Materials Solutions                                             25                                                (4 )                                             --                                           --                                                   21
                                                                                                                                                                                                                                                                                               
Industrial Specialties                                                    1                                                 3                                               --                                           --                                                    4
Acetyl Intermediates                                                     (5 )                                              14                                               --                                           --                                                    9
   Total Acetyl Chain                                                    (4 )                                              12                                               --                                           --                                                    8
                                                                                                                                                                                                                                                                                               
Total Company                                                             9                                                 5                                               --                                           --                                                   14
 
 
Year Ended December 31, 2016 Compared to Year Ended
December 31, 2015
 
                                   Volume       Price           Currency               Other                 Total
                                                                        --------                                          --------                                          --------------------                                          --------------                                           ---------------------
                                                                                                                                                                                        (In percentages)
Advanced Engineered Materials                                            11                                                (2 )                                             --                                                --                                                    9
Consumer Specialties                                                      4                                                (8 )                                             --                                                --                                                   (4 )
   Total Materials Solutions                                              8                                                (5 )                                             --                                                --                                                    3
                                                                                                                                                                                                                                                                                                    
Industrial Specialties                                                   (1 )                                              (8 )                                                         (1 )                                              --                                                  (10 )
Acetyl Intermediates                                                     (2 )                                             (10 )                                                         (1 )                                                           2                                                  (11 )
   Total Acetyl Chain                                                    (2 )                                             (10 )                                                         (1 )                                                           2                                                  (11 )
                                                                                                                                                                                                                                                                                                    
Total Company                                                             2                                                (8 )                                                         (1 )                                                           2                                                   (5 )
 
 
Table 5
Free Cash Flow - Reconciliation of a Non-GAAP Measure - Unaudited
 
                                                                     2017                          Q4 ’17                         Q3 ’17                         Q2 ’17                         Q1 ’17                          2016                          Q4 ’16                         Q3 ’16                         Q2 ’16                              Q1 ’16
                                                                                                ---------------------------                                          ---------------------------                                          ---------------------------                                          ---------------------------                                          ---------------------------                                          ---------------------------                                          ---------------------------                                          ---------------------------                                          ---------------------------                                          ------------------------------------
                                                                                                                                                                                                                                                                                                                                     (In $ millions)
Net cash provided by (used in) investing activities                                              (549 )                                                                (92 )                                                                (68 )                                                               (325 )                                                                (64 )                                                               (439 )                                                               (247 )                                                                (54 )                                                                (63 )                                                                         (75 )
Net cash provided by (used in) financing activities                                              (351 )                                                                145                                                                 (247 )                                                                 21                                                                 (270 )                                                               (759 )                                                               (292 )                                                                265                                                                 (259 )                                                                        (473 )
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              
Net cash provided by (used in) operating activities                                               803                                                                   58                                                                  255                                                                  298                                                                  192                                                                  893                                                                  (47 )                                                                304                                                                  349                                                                           287
Capital expenditures on property, plant and equipment                                            (267 )                                                                (87 )                                                                (64 )                                                                (54 )                                                                (62 )                                                               (246 )                                                                (60 )                                                                (58 )                                                                (58 )                                                                         (70 )
Capital (distributions to) contributions from NCI                                                 (27 )                                                                 (9 )                                                                (10 )                                                                 (4 )                                                                 (4 )                                                                (24 )                                                                 (9 )                                                                 (9 )                                                                 (6 )                                                              --  
                                                                                                ----- --------------------                                           ----- --------------------                                           ----- --------------------                                           ----- --------------------                                           ----- --------------------                                           ----- --------------------                                           ----- --------------------                                           ----- --------------------                                           ----- --------------------                                           -------------- --------------------
   Free cash flow(1)(2)                                                                           509                                               (38 )                                                                181                                               240                                               126                                               623                                              (116 )                                                                237                                               285                                                        217  
                                                                                                ===== ====================                                           ===== ====================                                           ===== ====================                                           ===== ====================                                           ===== ====================                                           ===== ====================                                           ===== ====================                                           ===== ====================                                           ===== ====================                                           ============== ====================
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              
Net sales                                                                                       6,140                                             1,593                                             1,566                                             1,510                                             1,471                                             5,389                                             1,311                                             1,323                                             1,351                                                      1,404  
                                                                                                ----- --------------------                                           ----- --------------------                                           ----- --------------------                                           ----- --------------------                                           ----- --------------------                                           ----- --------------------                                           ----- --------------------                                           ----- --------------------                                           ----- --------------------                                           -------------- --------------------
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              
Free cash flow as % of Net sales                                                                  8.3 %                                                               (2.4 )%                                                              11.6 %                                                               15.9 %                                                                8.6 %                                                               11.6 %                                                               (8.8 )%                                                              17.9 %                                                               21.1 %                                                                        15.5 %
                                                                                                ===== ====================                                           ===== ====================                                           ===== ====================                                           ===== ====================                                           ===== ====================                                           ===== ====================                                           ===== ====================                                           ===== ====================                                           ===== ====================                                           ============== ====================
______________________________
(1)          Free cash flow is a liquidity measure used by the Company and is
                                defined by the Company as net cash provided by (used in) operating
                                activities, less capital expenditures on property, plant and
                                equipment, and adjusted for capital contributions from or
                                distributions to Mitsui & Co., Ltd. ("Mitsui") related to our joint
                                venture, Fairway Methanol LLC ("Fairway").
(2)                             Excludes required debt service and capital lease payments of $27
                                million and $56 million for the years ending December 31, 2017 and
                                2016, respectively.
 
 
Table 6
Cash Dividends Received - Unaudited
 
                                             2017     Q4 ’17     Q3 ’17     Q2 ’17     Q1 ’17     2016     Q4 ’16     Q3 ’16     Q2 ’16     Q1 ’16
                                                                                   ----                                           ------                                           ------                                           ------                                           ------                                           ----                                           ------                                           ------                                           ------                                           ------
                                                                                                                                                                                                                                                                                                          (In $ millions)
Dividends from equity method investments                                            131                                               17                                                5                                               59                                               50                                            131                                               15                                                6                                               73                                               37
Dividends from cost method investments                                              108                                               26                                               24                                               29                                               29                                            108                                               26                                               26                                               29                                               27
                                                                                   ----                                           ------                                           ------                                           ------                                           ------                                           ----                                           ------                                           ------                                           ------                                           ------
   Total                                                                            239                                               43                                               29                                               88                                               79                                            239                                               41                                               32                                              102                                               64
                                                                                   ====                                           ======                                           ======                                           ======                                           ======                                           ====                                           ======                                           ======                                           ======                                           ======
 
 
Table 7
Net Debt - Reconciliation of a Non-GAAP Measure - Unaudited
 
                                                                                  2017                          Q4 ’17                         Q3 ’17                         Q2 ’17                         Q1 ’17                          2016                          Q4 ’16                          Q3 ’16                         Q2 ’16                         Q1 ’16
                                                                                                             ---------------------------                                          ---------------------------                                          ---------------------------                                          ---------------------------                                          ---------------------------                                          ---------------------------                                          ---------------------------                                          ----------------------------                                          ---------------------------                                          ---------------------------
                                                                                                                                                                                                                                                                                                                                                  (In $ millions)
Short-term borrowings and current installments of long-term debt -                                             326                                                                  326                                                                  435                                                                  384                                                                  107                                                                  118                                                                  118                                                                    92                                                                  119                                                                  116
third party and affiliates
Long-term debt, net of unamortized deferred financing costs                                                  3,315                                             3,315                                             2,954                                             2,931                                             2,851                                             2,890                                             2,890                                              2,923                                             2,464                                             2,487  
                                                                                                             ----- --------------------                                           ----- --------------------                                           ----- --------------------                                           ----- --------------------                                           ----- --------------------                                           ----- --------------------                                           ----- --------------------                                           ------ --------------------                                           ----- --------------------                                           ----- --------------------
   Total debt                                                                                                3,641                                                                3,641                                                                3,389                                                                3,315                                                                2,958                                                                3,008                                                                3,008                                                                 3,015                                                                2,583                                                                2,603
Cash and cash equivalents                                                                                     (576 )                                                               (576 )                                                               (461 )                                                               (511 )                                                               (501 )                                                               (638 )                                                               (638 )                                                              (1,252 )                                                               (735 )                                                               (716 )
                                                                                                             ----- --------------------                                           ----- --------------------                                           ----- --------------------                                           ----- --------------------                                           ----- --------------------                                           ----- --------------------                                           ----- --------------------                                           ------ --------------------                                           ----- --------------------                                           ----- --------------------
      Net debt                                                                                               3,065                                             3,065                                             2,928                                             2,804                                             2,457                                             2,370                                             2,370                                              1,763                                             1,848                                             1,887  
                                                                                                             ===== ====================                                           ===== ====================                                           ===== ====================                                           ===== ====================                                           ===== ====================                                           ===== ====================                                           ===== ====================                                           ====== ====================                                           ===== ====================                                           ===== ====================
 
 
Table 8
Certain Items - Unaudited
 
The following Certain Items attributable to Celanese Corporation
are included in Net earnings (loss) and are adjustments to
non-GAAP measures:
 
                                                                              2017                        Q4 ’17             Q3 ’17                        Q2 ’17                                  Q1 ’17                                   2016                                   Q4 ’16                                  Q3 ’16                       Q2 ’16             Q1 ’16                         Income Statement Classification
                                                                                                    ------------------------------------                                          --------------                                           --------------                                           ------------------------------------                                          ------------------------------------                                          ------------------------------------                                          ------------------------------------                                          ------------------------------------                                          --------------                                           --------------                                           -------------------------------------------------------------
                                                                                                                                                                                                                                                                                                                                         (In $ millions)
Employee termination benefits(1)                                                                                 4                                                                --                                           --                                                        2                                                                             2                                                                            11                                                                --                                                                             3                                                                             3                                                        5                                           Other charges (gains), net
Plant/office closures                                                                                           58                                                                             2                                                        2                                                       (3 )                                                                          57                                                                             4                                                                             1                                                                             2                                                                --                                                        1                                           Cost of sales / SG&A / R&D / Other charges (gains), net
Business optimization                                                                                            4                                                                --                                                        4                                           --                                                                --                                                                             7                                                                             3                                                                             1                                                                             1                                                        2                                           Cost of sales / SG&A
Asset impairments                                                                                   --                                                                --                                           --                                           --                                                                --                                                                             2                                                                             1                                                                --                                                                             1                                           --                                           Other charges (gains), net
(Gain) loss on disposition of business and assets, net                                                           2                                                                --                                           --                                                        2                                                                --                                                                            (4 )                                                                          (2 )                                                                          (2 )                                                              --                                           --                                           (Gain) loss on disposition, net
Commercial disputes                                                                                 --                                                                --                                           --                                           --                                                                --                                                                            (2 )                                                                          (2 )                                                              --                                                                --                                           --                                           Other charges (gains), net
Write-off of other productive assets                                                                --                                                                --                                           --                                           --                                                                --                                                                             4                                                                             1                                                                             1                                                                             2                                           --                                           Cost of sales / R&D
Employee benefit plan changes                                                                                    1                                                                --                                           --                                                        1                                                                --                                                                             1                                                                --                                                                --                                                                             1                                           --                                           Cost of sales / SG&A / R&D
Actuarial (gain) loss on pension and postretirement plans                                                       46                                                                            46                                           --                                           --                                                                --                                                                           102                                                                           102                                                                --                                                                --                                           --                                           Cost of sales / SG&A / R&D
Start-up costs                                                                                      --                                                                --                                           --                                           --                                                                --                                                                             2                                                                --                                                                             1                                                                             1                                           --                                           Cost of sales
Mergers and acquisitions                                                                                        35                                                                             9                                                       10                                                        7                                                                             9                                                                             3                                                                             2                                                                             1                                                                --                                           --                                           Cost of sales / SG&A / Other income (expense), net
InfraServ ownership change                                                                                       8                                                                --                                           --                                                        8                                                                --                                                                --                                                                --                                                                --                                                                --                                           --                                           Other charges (gains), net / Equity in net earnings (loss) of
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            affiliates
Impact from natural disasters(2)                                                                                11                                                                --                                                       11                                           --                                                                --                                                                --                                                                --                                                                --                                                                --                                           --                                           Cost of sales
Other                                                                                                           (2 )                                                              --                                           --                                                        1                                                         (3 )                                                              --                                             --                                             --                                             --                                           --                                           Equity in net earnings (loss) of affiliates
                                                                                                    -------------- --------------------                                           --------------                                           --------------                                           -------------- --------------------                                           -------------- --------------------                                           -------------- --------------------                                           -------------- --------------------                                           -------------- --------------------                                           --------------                                           --------------
   Certain Items attributable to Celanese Corporation                                                          167                                                         57                                                       27                                                       18                                                         65                                                        130                                                        106                                                          7                                                          9                                                        8
                                                                                                    ============== ====================                                           ==============                                           ==============                                           ============== ====================                                           ============== ====================                                           ============== ====================                                           ============== ====================                                           ============== ====================                                           ==============                                           ==============
______________________________
(1)          Primarily associated with site shutdown costs.
(2)                             Primarily associated with Hurricane Harvey.
 
 
Table 9
Return on Invested Capital (Adjusted) - Presentation of a
Non-GAAP Measure - Unaudited
 
                                                                                                        2017                                                    2016
                                                                                                                                                                                                             -------------------------------                                                                                                                                          --------------------------------
                                                                                                                                                                                                                     (In $ millions,                                                                                                                                                           (In $ millions,
                                                                                                                                                                                                                   except percentages)                                                                                                                                                       except percentages)
Net earnings (loss) attributable to Celanese Corporation                                                                                                                                                           843                                                                                                                                                                       900
                                                                                                                                                                                                                                                                                                                                                                                       
Adjusted EBIT (Table 1)                                                                                                                                                                                          1,356                                                                                                                                                                     1,278
 
Adjusted effective tax rate (Table 3a)                                                                                                                                                                              16 %                                                                                                                                                                      17 %
                                                                                                                                                                                                             --------- --------------------                                                                                                                                           ---------- --------------------
   Adjusted EBIT tax effected                                                                                                                                                                                    1,139                                                                                                                                                                     1,061
                                                                                                                                                                                                                                                                                                                                                                                       
                                                                                                              2017                                            2016                                                       Average                                                       2016                                            2015                                                        Average
                                                                                                             -----                                           -----                                           -------------------------------                                          -----                                           -----                                           --------------------------------
                                                                                                                                                                                                                                                (In $ millions, except percentages)
Short-term borrowings and current installments of long-term debt -                                             326                                             118                                                 222                                                                  118                                             513                                                  316
third parties and affiliates
Long-term debt, net of unamortized deferred financing costs                                                  3,315                                           2,890                                               3,103                                                                2,890                                           2,468                                                2,679
Celanese Corporation stockholders’ equity                                                                    2,887                                           2,588                                               2,738                                             2,588                                           2,378                                                2,483  
                                                                                                                                                                                                             --------- --------------------                                                                                                                                           ---------- --------------------
   Invested capital                                                                                                                                                                                              6,063                                                                                                                                                  5,478  
                                                                                                                                                                                                             --------- --------------------                                                                                                                                           ---------- --------------------
                                                                                                                                                                                                                                                                                                                                                                                       
Return on invested capital (adjusted)                                                                                                                                                                             18.8 %                                                                                                                                                                    19.4 %
                                                                                                                                                                                                             ========= ====================                                                                                                                                           ========== ====================
                                                                                                                                                                                                                                                                                                                                                                                       
Net earnings (loss) attributable to Celanese Corporation as a                                                                                                                                                     13.9 %                                                                                                                                                                    16.4 %
percentage of invested capital
                                                                                                                                                                                                             ========= ====================                                                                                                                                           ========== ====================

http://cts.businesswire.com/ct/CT?id=bwnews&sty=20180125006282r1&sid=cmtx6&distro=nx&lang=en

View source version on businesswire.com: http://www.businesswire.com/news/home/20180125006282/en/

SOURCE: Celanese Corporation

Celanese Corporation 
Investor Relations 
Surabhi Varshney, +1-972-443-3078 
Surabhi.Varshney@celanese.com 
or 
Media - U.S. 
Travis Jacobsen, +1-972-443-3750 
William.Jacobsen@celanese.com 
or 
Media - Europe 
Jens Kurth, +49(0)69 45009 1574 
J.Kurth@celanese.com


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