<PAGE> 1
[CELANESE LOGO]
Celanese AG Frankfurter Str. 111
Investor Relations 61476 Kronberg/Ts.
Germany
INVESTOR INFORMATION
NOVEMBER 2, 2000
THIRD-QUARTER 2000 REPORT
- CELANESE Q3 SALES AND EBITDA UP 20%; AS ANTICIPATED, SPECIAL CHARGES CAUSED
NET LOSS
- POLYVINYL ALCOHOL ACQUISITION STRENGTHENS CORE VALUE CHAIN
- SUPPLY INTERRUPTIONS AFFECTED OPERATIONS OF ACETYL PLANTS, HIGH RAW
MATERIAL COSTS WEIGHED ON RESULTS
DEAR SHAREHOLDER
As anticipated in our previous quarterly report, the third quarter showed
an operating loss due to special charges for restructuring. High raw material
costs and operating problems at our acetyl plants in Clear Lake and Singapore
put additional pressure on earnings. During the third quarter we increased
selling prices, expanded capacities and continued cost reduction efforts. We
extended our core value chain in Acetyl Products with the acquisition of the
polyvinyl alcohol business from Air Products.
Sales in the quarter increased 20% from a year earlier, benefiting from
price increases and currency effects which were partly offset by lower volumes.
EBITDA excluding special charges increased by 20%; the EBITDA margin remained
unchanged at 8.3%. Highly volatile hydrocarbon raw material costs were near
historic highs during the quarter. The net loss in the third quarter was
(euro)18 million.
<PAGE> 2
[CELANESE LOGO]
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Date: November 2, 2000
In the first nine months of the year sales increased 22% and EBITDA
excluding special charges rose 61% to (euro)381 million compared to the same
period in 1999. The EBITDA margin averaged 10.1%, up from 7.7% a year earlier.
Net earnings from continuing operations improved substantially to (euro)19
million from a loss of (euro)310 million.
During the third quarter, we took further significant steps toward
implementing our growth and profitability strategies. We commenced production of
cycloolefin copolymers, a material with superior optical and moisture barrier
properties, at Ticona's new plant in Oberhausen, Germany. In order to further
reduce our cost base, we began production at our new acetic acid plant in
Singapore and announced the closure of our high-cost acetyls plant in Knapsack,
Germany. We have also announced staffing reductions at the Pampa, Texas,
chemicals plant and at our Charlotte, North Carolina acetate headquarters. In
September, David Weidman joined the Board of Management, responsible for the
chemical segments, Acetyl Products and Chemical Intermediates. The main focus of
this internationally experienced chemical manager will be to improve
profitability amid difficult business conditions and to promote growth.
In addition to the expansions announced during the second quarter, we also
plan to increase capacity at Ticona's polyacetal plant in Kelsterbach, Germany.
We are working on promising research activities such as an advanced fuel cell
membrane based on our high performance polymer PBI and are evaluating novel
efficient ways to produce chemicals involving biotechnology. Company-wide
initiatives in eCommerce are increasing efficiency and helping to further
optimize workflow.
Having sharpened the focus of our company, we are well advanced in
executing our transformation strategy, by strengthening our value chains to
generate further growth. We are further concentrating on improving our overall
profitability, while solidifying our excellent position as a top global supplier
of major chemical building blocks.
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Date: November 2, 2000
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
CHG.
in (euro)millions Q3 2000 Q3 1999 IN % 9M 2000 9M 1999
-------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Net sales 1,274 1,059 20 3,764 3,096
EBITDA(1) excluding special charges 106 88 20 381 237
EBITDA margin(2) 8.3% 8.3% 10.1% 7.7%
Special charges (54) (40) n.m. (59) (245)
Operating profit (loss) (47) (33) n.m. 45 (248)
Earnings (loss) before taxes (53) (57) n.m. 65 (299)
Net earnings (loss) of:
continuing operations (32) (51) n.m. 19 (310)
continuing and discontinued operations (18) 10 n.m. 19 (262)
Capital expenditures 61 56 9 153 165
Average shares outstanding (thou) 51,289 55,915 -8 54,288 55,915
-------------------------------------------------------------------------------------------------------------
Net earnings (loss) per share (in (euro)) of(3):
continuing operations (0.62) (0.91) n.m. 0.35 (5.54)
continuing and discontinued operations (0.35) 0.18 n.m. 0.35 (4.68)
-------------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
SEP 30 DEC 31 CHG.
in (euro)millions 2000 1999 IN %
--------------------------------------------------------------------------------------
<S> <C> <C> <C>
Total financial debt(4) 1,377 948 45
Net financial debt(5) 1,271 570 >100
Shareholders' equity 2,943 2,866 3
Total assets 8,151 7,527 8
--------------------------------------------------------------------------------------
</TABLE>
(1) Earnings before interest, taxes, depreciation and amortization
(2) EBITDA excluding special charges / sales
(3) Per-share data are based on weighted average shares outstanding in each
period
(4) Short- and long-term debt
(5) Total financial debt less cash & cash
equivalents
n.m. = not meaningful
<PAGE> 4
[CELANESE LOGO]
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Date: November 2, 2000
CONSOLIDATED STATEMENTS OF OPERATIONS
<TABLE>
<CAPTION>
CHG.
in (euro)millions Q3 2000 Q3 1999 IN % 9M 2000 9M 1999
-------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
NET SALES 1,274 1,059 20 3,764 3,096
Cost of sales (1,099) (866) 27 (3,164) (2,592)
-------------------------------------------------------------------------- ------------------------
GROSS PROFIT 175 193 -9 600 504
Selling, general & admin. expense (147) (165) -11 (427) (451)
Research & development expense (23) (17) 35 (68) (52)
Special charges (54) (40) 35 (59) (245)
Foreign exchange gain (loss) 3 (3) n.m. (1) (6)
Gain (loss) on disposition of assets (1) (1) 0 0 2
-------------------------------------------------------------------------- ------------------------
OPERATING PROFIT (LOSS) (47) (33) 42 45 (248)
Equity in net earnings of affiliates 8 3 >100 16 3
Interest expense (19) (30) -37 (51) (89)
Interest & other income, net 5 3 67 55 35
-------------------------------------------------------------------------- ------------------------
EARNINGS (LOSS) BEFORE INCOME TAXES
OF CONTINUING OPERATIONS (53) (57) -7 65 (299)
Income taxes 21 1 >100 (46) (17)
Minority interests 0 5 -100 0 6
-------------------------------------------------------------------------- ------------------------
EARNINGS (LOSS) OF CONTINUING OPERATIONS (32) (51) -37 19 (310)
Earnings (loss) of discontinued operations 0 8 -100 3 (5)
Gain (loss) on disposals of discont. operations 14 63 -78 (3) 63
Extraordinary expense, net of income tax 0 (10) -100 0 (10)
-------------------------------------------------------------------------- ------------------------
NET EARNINGS (LOSS) (18) 10 n.m. 19 (262)
-------------------------------------------------------------------------------------------------------------
</TABLE>
In the third quarter of 2000, total net sales increased 20%. The increase
in segment sales of 23% resulted from higher selling prices (+14%) and favorable
currency movements (+12%) while volumes declined 3%. For the first nine months
of the year, prices rose 10% and currencies 12% while volumes were flat.
Gross profit in the third quarter declined by 9%. In order to be consistent
with industry practice, we have reclassified certain distribution costs from
selling, general and administrative expense to cost of sales. Excluding this
approximately (euro)28 million reclassification as well as currency effects,
underlying selling, general and administrative expense would have been lower
<PAGE> 5
[CELANESE LOGO]
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Date: November 2, 2000
year on year due to cost reductions and restructuring benefits.
The third-quarter operating loss of (euro)47 million compares to a (euro)33
million loss a year earlier and includes special charges of (euro)54 million
compared with (euro)40 million in the third quarter of 1999. For the first nine
months of the year, operating profit amounted to (euro)45 million compared to a
loss of (euro)248 million in 1999.
Third-quarter interest expense was lower as average net debt levels
decreased. The gain on disposals of discontinued operations stems mainly from
the sale of Vinnolit which resulted in a pre-tax gain of (euro)41 million or a
gain net of taxes of (euro)21 million. Due to a related use of net loss
carryforwards from operations, the corresponding tax benefit is shown in
continuing operations and the transaction was in effect almost tax neutral.
Net earnings in the third quarter declined to a loss of (euro)18 million
((euro)-0.35 per share) from a profit of (euro)10 million ((euro)0.18 per share)
in the corresponding period of 1999. For the nine months, net earnings improved
significantly to a profit of (euro)19 million ((euro)0.35 per share) from a loss
of (euro)262 million ((euro)-4.68 per share) in 1999.
<PAGE> 6
[CELANESE LOGO]
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Date: November 2, 2000
CONSOLIDATED BALANCE SHEETS
<TABLE>
<CAPTION>
SEP 30 DEC 31
in (euro)millions 2000 1999
-------------------------------------------------------------------------------------------------------------
<S> <C> <C>
ASSETS
CURRENT ASSETS:
Cash & cash equivalents 106 378
Receivables, net 1,456 1,475
Receivables from Hoechst & affiliates 150 123
Inventories 811 588
Deferred income taxes 31 126
Other assets 34 52
Net liabilities of discontinued operations (7) (42)
-------------------------------------------------------------------------------------------------------------
TOTAL CURRENT ASSETS 2,581 2,700
Investments 641 580
Property, plant & equipment, net 2,291 1,932
Deferred income taxes 204 230
Other assets 869 703
Intangible assets, net 1,565 1,382
-------------------------------------------------------------------------------------------------------------
TOTAL ASSETS 8,151 7,527
-------------------------------------------------------------------------------------------------------------
LIABILITIES AND SHAREHOLDERS' EQUITY
CURRENT LIABILITIES:
Short-term borrowings and current
installments of long-term debt 692 429
Accounts payable & accrued liabilities 1,817 2,096
Liabilities to Hoechst & affiliates 40 15
Deferred income taxes 6 16
Income taxes payable 272 235
-------------------------------------------------------------------------------------------------------------
TOTAL CURRENT LIABILITIES 2,827 2,791
Long-term debt 685 519
Deferred income taxes 50 69
Other liabilities 1,624 1,259
Minority interests 22 23
Shareholders' equity 2,943 2,866
-------------------------------------------------------------------------------------------------------------
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY 8,151 7,527
-------------------------------------------------------------------------------------------------------------
</TABLE>
Balance sheet positions were strongly influenced by foreign exchange
translation - the euro weakened versus the U.S. dollar by 14.6% since the end of
last year. The increase in debt and the decline in cash were caused primarily
<PAGE> 7
[CELANESE LOGO]
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Date: November 2, 2000
by cash outflows associated with 1999 special charges, the acquisition of the
polyvinyl alcohol business and the share buyback program. The acquisition of
polyvinyl alcohol also increased inventories, property, plant & equipment and
goodwill. Payments related to special charges and reclassification of insurance
liabilities from short-term to long-term caused the decrease in accounts payable
& accrued liabilities and the increase in other liabilities, respectively.
As of September 30th there were 50,323,869 shares outstanding as compared
with 55,915,369 shares on December 31st 1999. During the nine months, Celanese
repurchased 5,591,500 shares in connection with the share repurchase program at
a total cost of (euro)123 million.
CONSOLIDATED STATEMENTS OF CASH FLOWS
<TABLE>
<CAPTION>
in (euro)millions 9M 2000 9M 1999
-------------------------------------------------------------------------------------------------------------
<S> <C> <C>
OPERATING ACTIVITIES OF CONTINUING OPERATIONS:
Net earnings (loss) 19 (262)
Earnings from operations of discontinued operations (3) 5
Special charges, net of amounts used (307) 175
Depreciation & amortization 277 240
Change in equity of affiliates (6) 10
Deferred income taxes 122 (159)
Gain on disposition of assets, net 0 (2)
Gain on disposal of discontinued operations, net (6) (21)
Changes in operating assets and liabilities:
Receivables, net 84 (84)
Inventories (74) 64
Accounts payable, accrued liabilities & other liabilities (42) 195
Income taxes payable (49) (72)
Other, net (2) 46
-------------------------------------------------------------------------------------------------------------
NET CASH PROVIDED BY OPERATING ACTIVITIES 13 135
INVESTING ACTIVITIES OF CONTINUING OPERATIONS:
Capital expenditures on property plant & equipment (153) (165)
Acquisitions of businesses & purchases of investments (401) (303)
Proceeds from dispositions of assets 32 27
Proceeds from disposals of discontinued operations 35 105
Proceeds from sales of marketable securities 285 40
Purchases of marketable securities (302) (48)
Other, net (6) (3)
-------------------------------------------------------------------------------------------------------------
NET CASH (USED) BY INVESTING ACTIVITIES (510) (347)
</TABLE>
<PAGE> 8
[CELANESE LOGO]
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Date: November 2, 2000
CONSOLIDATED STATEMENTS OF CASH FLOWS (CONT.)
<TABLE>
<CAPTION>
in (euro)millions 9M 2000 9M 1999
-------------------------------------------------------------------------------------------------------------
<S> <C> <C>
FINANCING ACTIVITIES OF CONTINUING OPERATIONS:
Short-term borrowings from third parties, net 176 (114)
Proceeds from long-term debt due to third parties 106 2
Payments of long-term debt due to third parties 0 (355)
Short-term borrowings from Hoechst, net 0 675
Short-term borrowings from affiliates 79 0
Other net activity with Hoechst 0 57
Treasury stock (123) 0
Dividend payments (5) 0
Other, net (23) (5)
-------------------------------------------------------------------------------------------------------------
NET CASH PROVIDED BY FINANCING ACTIVITIES 210 260
Exchange rate effects on cash 15 1
-------------------------------------------------------------------------------------------------------------
NET INCREASE (DECREASE) IN CASH & CASH EQUIVALENTS (272) 49
-------------------------------------------------------------------------------------------------------------
Cash & cash equivalents at beginning of year 378 0
-------------------------------------------------------------------------------------------------------------
Cash & cash equivalents at end of period 106 49
-------------------------------------------------------------------------------------------------------------
NET CASH PROVIDED (USED) BY DISCONTINUED OPERATIONS:
Operating activities 2 11
Investing activities (26) (28)
Financing activities 24 12
-------------------------------------------------------------------------------------------------------------
NET CASH PROVIDED (USED) BY DISCONTINUED OPERATIONS 0 (5)
-------------------------------------------------------------------------------------------------------------
</TABLE>
Cash flow provided by operating activities for the first nine months
amounted to (euro)13 million as compared to (euro)135 million in 1999. The
decrease was primarily due to cash outlays for special charges recorded in 1999.
Net cash used in investing activities of (euro)510 million is mainly
attributable to the acquisitions of Axiva in the second quarter and the
polyvinyl alcohol business at the end of the third quarter. Net cash from
financing activities of (euro)210 million was provided by an increase in debt
which was primarily used to finance acquisitions. In total, cash & cash
equivalents declined (euro)272 million during the first nine months ending the
period at (euro)106 million.
<PAGE> 9
[CELANESE LOGO]
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Date: November 2, 2000
SEGMENT PERFORMANCE
SEGMENT NET SALES
<TABLE>
<CAPTION>
CHG.
in (euro)millions Q3 2000 Q3 1999 IN % 9M 2000 9M 1999
-------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Acetyl Products 514 392 31 1,482 1,119
Chemical Intermediates 268 203 32 798 620
Acetate Products 192 171 12 549 527
Technical Polymers Ticona 224 191 17 694 575
Performance Products 102 100 2 308 295
-------------------------------------------------------------------------- --------------------
SEGMENT TOTAL 1,300 1,057 23 3,831 3,136
Other activities 20 19 5 49 34
Intersegment eliminations (46) (17) n.m. (116) (74)
-------------------------------------------------------------------------- --------------------
TOTAL 1,274 1,059 20 3,764 3,096
-------------------------------------------------------------------------------------------------------------
</TABLE>
FACTORS AFFECTING THIRD-QUARTER SEGMENT SALES
<TABLE>
<CAPTION>
CUR-
in percent VOLUME PRICE RENCY OTHER TOTAL
-------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Acetyl Products -6 24 13 0 31
Chemical Intermediates 2 17 13 0 32
Acetate Products -4 3 13 0 12
Technical Polymers Ticona 6 3 8 0 17
Performance Products -16 9 9 0 2
SEGMENT TOTAL -3 14 12 0 23
-------------------------------------------------------------------------------------------------------------
</TABLE>
SEGMENT EBITDA(1) EXCLUDING SPECIAL CHARGES
<TABLE>
<CAPTION>
CHG.
in (euro)millions Q3 2000 Q3 1999 IN % 9M 2000 9M 1999
-------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Acetyl Products 46 27 70 136 65
Chemical Intermediates 4 (1) n.m. 41 29
Acetate Products 19 24 -21 71 67
Technical Polymers Ticona 32 32 0 118 87
Performance Products 19 20 -5 59 40
-------------------------------------------------------------------------- ------------------------
SEGMENT TOTAL 120 102 18 425 288
Other activities (14) (14) n.m. (44) (51)
-------------------------------------------------------------------------- ------------------------
TOTAL 106 88 20 381 237
-------------------------------------------------------------------------------------------------------------
</TABLE>
(1) Earnings before interest, taxes, depreciation and amortization
<PAGE> 10
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Date: November 2, 2000
ACETYL PRODUCTS
<TABLE>
<CAPTION>
CHG.
in (euro)millions Q3 2000 Q3 1999 IN % 9M 2000 9M 1999
-------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Net sales 514 392 31 1,482 1,119
EBITDA excluding special charges 46 27 70 136 65
EBITDA margin 8.9% 6.9% 9.2% 5.8%
Operating profit (loss) (48) 4 n.m. (27) (27)
Depreciation and amortization 38 23 65 96 75
Capital expenditures 16 30 -47 60 75
-------------------------------------------------------------------------------------------------------------
</TABLE>
Net sales for the Acetyl Products segment rose 31% to (euro)514 million in
the third quarter of 2000, primarily due to price increases (+24%) and currency
effects (+13%). After rising slightly in the first half of the year, volumes
declined 6% in the third quarter reflecting problems with the supply of carbon
monoxide at the acetic acid plants in Clear Lake and Singapore. An outage at the
Clear Lake plant began at the end of June; the plant had resumed full production
by the end of July. Although the acetic acid plant in Singapore commenced
production in July, a supplier's continuing inability to produce a reliable,
ongoing supply of carbon monoxide severely limited operating rates. The
supplier's difficulties persisted longer than anticipated, resulting in force
majeure being declared on acetic acid and vinyl acetate monomer for Asian
customers.
EBITDA excluding special charges advanced 70% to (euro)46 million in the
third quarter. The improvement was largely due to restructuring, capacity
rationalization and other cost-cutting initiatives. Higher prices for acetyls
partially recovered the rising cost of natural gas and other hydrocarbons.
However, acetyl derivatives remained under margin pressure as raw material costs
increased. The operating loss in the quarter was due to special charges of
(euro)56 million mainly related to the planned closure of the high-cost acetyls
facilities in Knapsack, Germany, at the end of 2000.
In line with the company's strategy to transform the chemical operations
into a higher value added business, the purchase of the polyvinyl alcohol
business from Air Products and Chemicals, Inc. was completed on September 28th.
<PAGE> 11
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Date: November 2, 2000
CHEMICAL INTERMEDIATES
<TABLE>
<CAPTION>
CHG.
in (euro)millions Q3 2000 Q3 1999 IN % 9M 2000 9M 1999
-------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Net sales 268 203 32 798 620
EBITDA excluding special charges 4 (1) n.m. 41 29
EBITDA margin 1.5% -0.5% 5.1% 4.7%
Operating profit (loss) (14) (18) n.m. (18) (22)
Depreciation and amortization 18 17 6 52 48
Capital expenditures 18 9 100 30 31
-------------------------------------------------------------------------------------------------------------
</TABLE>
In the third quarter, net sales for the Chemical Intermediates segment
increased by 32% to (euro)268 million due to higher average selling prices
(+17%) and currency effects (+13%); volumes rose 2%. Although selling prices
increased substantially in a number of markets, they just kept pace with even
sharper cost hikes for olefins and energy, impeding an improvement in
profitability.
Compared to the previous year, oxo products improved as a result of higher
margins in Europe, slightly offset by declining profitability in the U.S. due to
intense competition. Acrylates suffered due to industry overcapacity and value
chain consolidation. Olefin price increases were difficult to pass on in the
specialties business.
ACETATE PRODUCTS
<TABLE>
<CAPTION>
CHG.
in (euro)millions Q3 2000 Q3 1999 IN % 9M 2000 9M 1999
-------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Net sales 192 171 12 549 527
EBITDA excluding special charges 19 24 -21 71 67
EBITDA margin 9.9% 14.0% 12.9% 12.7%
Operating profit (loss) 2 7 -71 9 18
Depreciation and amortization 19 15 27 55 41
Capital expenditures 6 6 0 16 23
-------------------------------------------------------------------------------------------------------------
</TABLE>
Acetate Products' third-quarter net sales of (euro)192 million increased by
12% compared to the same period in 1999 as the effects of favorable currency
movements (+13%) and prices (+3%) were partially offset by declines in
<PAGE> 12
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Date: November 2, 2000
volumes (-4%). Lower volumes were attributable to the planned reduction of
acetate flake sales as well as to the continued decline in acetate filament,
affected by increased competitive pressure and interfiber substitution. This was
partially offset by unseasonably strong acetate tow volumes which contributed to
a change in the product mix and higher average prices.
EBITDA excluding special charges was lower than the comparable period
primarily due to lower flake and filament volumes and rapidly rising raw
material and energy prices. Margins continue to be squeezed as industry
overcapacity and comparably lower polyester prices have made it difficult to
pass on these higher costs to customers. These factors were partially offset by
restructuring benefits and ongoing efforts to reduce costs. Net special charges
in the third quarter were a net positive (euro)2 million, resulting from the
reevaluation of the timing of the Rock Hill filament relocation partially offset
by an accrual for the elimination of administrative positions. There were
special charges of (euro)2 million in the comparable period of 1999.
TECHNICAL POLYMERS TICONA
<TABLE>
<CAPTION>
CHG.
in (euro)millions Q3 2000 Q3 1999 IN % 9M 2000 9M 1999
-------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Net sales 224 191 17 694 575
EBITDA excluding special charges 32 32 0 118 87
EBITDA margin 14.3% 16.8% 17.0% 15.1%
Operating profit (loss) 15 10 50 66 (92)
Depreciation and amortization 19 16 19 54 45
Capital expenditures 13 7 86 25 26
-------------------------------------------------------------------------------------------------------------
</TABLE>
At Ticona, net sales grew by 17% compared to the corresponding quarter in
1999 due to exchange rate effects (+8%), higher sales volumes of 6% and
increased prices of 3%. During the quarter, sales were strong, but overall
demand from the U.S. automotive industry weakened towards the end of the
quarter. Shipments of Ticona's high performance resins, Fortron(R), Vectra(R)
and polyester, to the electrical / electronics industries continued to be
robust. The new Topas(R) COC plant in Oberhausen, Germany, was successfully
started up in September.
<PAGE> 13
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Date: November 2, 2000
Third-quarter EBITDA excluding special charges was flat year on year but
the margin decreased partly as the result of rising raw material and energy
costs as well as expenses related to the COC plant start-up. Price increase
initiatives continued in all regions. Operating profit was favorably affected by
a credit of (euro)2 million in special charges representing an adjustment to
previous severance accruals, resulting from a change in German tax laws; this
compares to special charges of (euro)6 million in the third quarter of 1999.
PERFORMANCE PRODUCTS
<TABLE>
<CAPTION>
CHG.
in (euro)millions Q3 2000 Q3 1999 IN % 9M 2000 9M 1999
-------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Net sales 102 100 2 308 295
EBITDA excluding special charges 19 20 -5 59 40
EBITDA margin 18.6% 20.0% 19.2% 13.6%
Operating profit (loss) 9 5 80 28 (33)
Depreciation and amortization 9 9 0 26 29
Capital expenditures 5 3 67 12 8
-------------------------------------------------------------------------------------------------------------
</TABLE>
Performance Products' net sales increased 2% in the third quarter. Price
(+9%) and currency (+9%) effects offset the significant volume decline (-16%)
caused by the closure of the Swindon, UK, OPP film plant late last year.
Operating profit included a special charge of (euro)1 million related to the
relocation of an OPP film production line; special charges in the third quarter
of 1999 were (euro)6 million.
Trespaphan OPP film sales were slightly down. Higher average selling prices
as a result of an improved product mix almost compensated for lower volumes. OPP
film earnings benefited from the reduced fixed cost base achieved through the
plant closure. This effect was partly offset by costs related to intensified
efforts to strengthen business in the North American market.
Nutrinova's sales were supported by continuing good growth of the high
intensity sweetener Sunett(R). Sorbates showed solid volume and margin
increases.
<PAGE> 14
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Date: November 2, 2000
OTHER ACTIVITIES
Effective July 1, 2000, the high performance polymer PBI
(polybenzimidazole) product line was transferred from the Acetate Products
segment to Other Activities to reflect the strategic alignment of PBI with the
fuel cell project of Axiva. Sales in Other Activities remained stable as sales
of this business together with Axiva Ventures were approximately offset by
declines in third-party sales of the captive insurance companies. A 75% share in
the engineering activities of Axiva was sold to Siemens as of October 1st.
Excluding special charges, EBITDA losses of (euro)14 million were the same as in
the third quarter of 1999. Special charges of (euro)1 million were substantially
less than in the third quarter of 1999 ((euro)26 million) which included costs
related to the demerger and to the closure of administrative facilities.
OUTLOOK
For the final quarter of the year, our business continues to be burdened by
high energy and raw material costs. The supplier problems at our Singapore plant
are continuing; all parties involved are intensively working on solutions. The
competitive environment is expected to remain difficult in Chemical
Intermediates and Acetate Products. Despite some softening in the U.S.
automotive industry, demand for Ticona's products is expected to be firm mainly
from the electronics and telecommunications sectors and from newly
commercialized applications. Performance Products should stay on track through
the rest of the year.
Although there remain a number of uncertainties and challenges, we are
maintaining our outlook of a positive operating profit and slightly positive net
income for the full year.
The Board of Management
Kronberg/Ts.
November 2, 2000
<PAGE> 15
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Date: November 2, 2000
FOOTNOTES
RESULTS UNAUDITED: The foregoing results which are presented in accordance
with U.S. GAAP, together with the adjustments made to present the results on a
comparable basis, have not been audited and are based on the internal financial
data furnished to management. Accordingly, the quarterly results should not be
taken as an indication of the results of operations to be reported by Celanese
for any subsequent period or for the full fiscal year.
RESULTS ADJUSTED FOR DISCONTINUED OPERATIONS: The foregoing results exclude
Copley, Celgard, Dyneon, EO/EG, Millhaven, Targor, Thermphos, Vinnolit and
Vintron which have been discontinued. The results of these businesses are
reflected in the interim balance sheets, income statements and statements of
cash flows as discontinued operations.
FORWARD-LOOKING STATEMENTS: Any statements contained in this report that
are not historical facts are forward-looking statements as defined in the U.S.
Private Securities Litigation Reform Act of 1995. Words such as "believe,"
"estimate," "intend," "may," "will," "expect," and "project" and similar
expressions as they relate to Celanese or its management are intended to
identify such forward-looking statements. Investors are cautioned that
forward-looking statements in this report are subject to various risks and
uncertainties that could cause actual results to differ materially from
expectations. Important factors include, among others, changes in general
economic, business and political conditions, fluctuating exchange rates, the
length and depth of product and industry business cycles, changes in the price
and availability of raw materials, actions which may be taken by competitors and
by regulatory authorities, changes in the degree of patent and other legal
protection afforded to Celanese's products, potential disruption or interruption
of production due to accidents or other unforeseen events, delays in the
construction of facilities, potential liability for remedial actions under
existing or future environmental regulations and potential liability resulting
from pending or future litigation, and other factors discussed above. Many of
the factors are macroeconomic in nature and are therefore beyond the control of
management. The factors that could affect Celanese's future financial results
are discussed more fully in its filings with the U.S. Securities and Exchange
Commission (the "SEC"), including its Annual Report on Form 20-F filed with the
SEC on March 31, 2000. Celanese AG does not assume any obligation to update
these forward-looking statements, which speak only as of their dates.
<PAGE> 16
[CELANESE LOGO]
Page 16 of 16
Date: November 2, 2000
NEXT ANNOUNCEMENT
Key data on full-year 2000 will be released on February 22nd, 2001.
Detailed results for the year will be announced on March 21st, 2001.
MEDIA RELATIONS
Ralf Christner
Phone: +49 69 305 84040 Fax: +49 69 305 84160
[email protected]
------------------------
Dr. Hans-Bernd Heier
Phone: +49 69 305 7112 Fax: +49 69 305 84160
[email protected]
--------------------
Phillip Elliott
Phone: +49 69 305 33480 Fax: +49 69 305 84160
[email protected]
----------------------
INVESTOR RELATIONS
Joerg Hoffmann
Phone: +49 69 305 4508 Fax: +49 69 305 83195
[email protected]
-----------------------
Michael Oberste-Wilms
Phone: +49 69 305 83199 Fax: +49 69 305 83195
[email protected]
----------------------------
INVESTOR RELATIONS AND PUBLIC AFFAIRS
CELANESE AMERICAS CORPORATION
Andrea Stine
86 Morris Avenue
Summit, NJ 07901, USA
Phone: +1 908 522 7784 Fax: +1 908 522 7583
[email protected]
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This quarterly report is also available in German.
