Celanese '99 results hit by special charges, poor margins
28 February 2000 11:14 [Source: ICIS news]
LONDON (CNI)--Difficult market conditions and special charges including restructuring costs plunged the continuing businesses of German industrial chemicals company Celanese into a large operating loss last year and slashed pre-tax earnings by just over one-third.
Celanese posted on Monday a 35% drop in earnings before interest, taxes, depreciation and amortisation (EBITDA) on continuing operations, excluding special charges, to Euro377m ($369m). Special charges in 1999 amounted to Euro559m compared with Euro100m in 1998.
Net sales remained approximately level at Euro4.32bn in spite of intense competition, said Celanese.
The group reported a net loss of Euro207m compared with a Euro44m deficit last time. Net losses on continuing operations increased to Euro502m from Euro56m.
The group recorded an operating loss on continuing businesses of Euro521m after a profit of Euro168m last time.
Celanese said raw materials prices continue to put pressure on margins from the acetyl products and chemical intermediates businesses.
Net debt was reduced to Euro570m on 31 December 1999 from Euro1.48bn on 31 December 1998, thanks to faster than expected progress from the sale of its non-core businesses. Last year the group received proceeds of over Euro900m from the sale of non-core businesses.
Discontinued businesses as of 31 December were: Copley, Dyneon, the polyester activities in Millhaven, Targor, Celgard, ethylene oxide (EO)/ethylene glycol (EG) and inorganics.
Further details on Celanese's 1999 results and future developments will be released on 20 March.
By: Anna Jagger
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