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The sharp drop in Cash and cash equivalents in Q3 2024—from **$1,805 million** in Q4 2023 to **$813 million**—was driven by several factors. **Operating activities** saw a significant decline, with net cash provided falling by **$597 million** mainly due to unfavorable trade working capital, including higher inventory and timing issues in receivables and payables, along with lower net earnings after excluding notable non-cash gains. Additionally, **investing activities** contributed to the decline because the company did not benefit from a **$461 million cash inflow** related to the Nutrinova joint venture that was present in 2023, and there was an increase in capital expenditures. Finally, despite a reduction in net cash used in financing activities, the combined effects of these factors led to the overall steep decrease in cash balances.  **[0001306830-24-000184_ce-20240930.htm:56]** 

Why did Cash and cash equivalents drop so sharply in Q3 2024?

The documents note that the **short-term borrowings** increased from **$1,383 million in Q4 2023** to **$2,439 million in Q1 2024**. While they do not explicitly provide a definitive explanation for this jump, typical factors include the **reclassification of maturing long-term debt as current liabilities**, **additional new borrowings** during the quarter, and **changes in repayment schedules** that shift more obligations into the short-term category.   

What drove the jump in short-term borrowings in Q1 2024?

The decline in long-term debt in Q1 2024 is not attributed to a single, confirmed factor in the documents. However, the documents indicate that the reduction—from **$12,301 million** to **$11,018 million**—may be partly due to a **reclassification of some long-term debt to short-term liabilities**, as evidenced by the increase in short-term borrowings and current installments of long-term debt from **$1,383 million** to **$2,439 million**. Other typical factors such as debt repayments or refinancing might also have played a role, though these specifics are not explicitly confirmed in the documents.  **[0001306830-24-000094_q120248-kex991.htm:12]** **[0001306830-24-000098_ce-20240331.htm:3]** 

What factors contributed to the decline in long-term debt in Q1 2024?

The surge in **total assets in Q4 2023** was driven by several factors. Notably, **cash and cash equivalents** increased from **$1,508 million** to **$1,805 million**, **investments in affiliates** went from **$1,062 million** to **$1,220 million**, and **deferred income taxes** saw a significant jump from **$808 million** to **$1,677 million**. Additionally, there were changes in other asset categories, such as a decrease in **goodwill** and **intangible assets**, which also contributed to the overall increase.  **[0001306830-24-000016_q420238-kex991.htm:14]** 

What led to the surge in total assets in Q4 2023?

6535e2398ec9e1c19605a7a5e344110e32d1550c917b67ef864078f1f0143fdf

Net sales declined in **Q4 2023** primarily due to **lower pricing and volumes**. Specifically, **Engineered Materials** saw a drop from **$1,528 million** in **Q3 2023** to **$1,406 million** in **Q4 2023** because of lower volumes and pricing, while the **Acetyl Chain** experienced a decrease from **$1,220 million** to **$1,181 million** mainly due to reduced pricing.  **[0001306830-24-000016_q420238-kex991.htm:1]** 

Why did Net sales decline in Q4 2023?

The revenue growth was driven by **higher sales volume**, especially in the Engineered Materials segment, where volume increased notably by **54%** due to the **Mobility & Materials (M&M) Acquisition** and **KEPCO restructuring**. Additionally, the Acetyl Chain segment contributed a modest **2% volume increase**, although gains were partially offset by pricing declines in both segments (**17%** in Acetyl Chain and **1%** in Engineered Materials). There was also **no material impact from currency fluctuations** in FY 2023.  **[0001306830-24-000029_ce-20231231.htm:60]** **[0001306830-24-000029_ce-20231231.htm:59]** 

What drove the revenue growth in FY 2023?

The **drop in operating profit** for Q3 2024 was primarily caused by a combination of **persistent demand weakness** in key end-markets (such as paints, coatings, construction, and downturns in the Western Hemisphere automotive and industrial segments).  **[0001306830-24-000180_q320248-kex991.htm:0]**  Additionally, **pricing and volume issues** played a significant role, where differentiated products were impacted by volume declines and standard grade products by price and margin challenges.  **[CE_3405796_19]**  This was further compounded by **broad macroeconomic headwinds** that affected overall performance and a **3% decrease in pricing**, which reduced net sales and ultimately operating profit.  **[CE_3405796_1]** **[0001306830-24-000184_ce-20240930.htm:44]** 

What caused the drop in Operating profit in Q3 2024?

Net earnings in Q3 2024 were significantly lower primarily because of **broad macroeconomic headwinds** that weakened demand, **increased restructuring and impairment charges** (with restructuring charges rising from **$7 million** in Q3 2023 to **$27 million** in Q3 2024 and asset impairments from **$2 million** to **$34 million**), **lower operating profit** (dropping from **$842 million** to **$248 million**), and higher costs related to other operational adjustments and production slowdowns aimed at managing lower demand.  **[CE_3405796_1]** **[0001306830-24-000184_ce-20240930.htm:39]** **[0001306830-24-000184_ce-20240930.htm:36]** 

Why are net earnings so low in Q3 2024?

9539ee36818f0e056148c335e68e1c4515ddac352240b63d0ac6f2d67c9e3678

c8296695522a594cca19dddb65d735244cc254e63ff81b62921f13f9227a485c

Net sales (USD, millions)

Cost of sales (USD, millions)

Gross profit (USD, millions)

Selling, general and administrative expenses (USD, millions)

Amortization of intangible assets (USD, millions)

Research and development expenses (USD, millions)

Other (charges) gains, net (USD, millions)

Foreign exchange gain (loss), net (USD, millions)

Gain (loss) on disposition of businesses and assets, net (USD, millions)

Operating profit (loss) (USD, millions)

Equity in net earnings (loss) of affiliates (USD, millions)

Non-operating pension and other postretirement employee benefit (expense) income (USD, millions)

Interest expense (USD, millions)

Refinancing expense (USD, millions)

Interest income (USD, millions)

Dividend income - equity investments (USD, millions)

Other income (expense), net (USD, millions)

Earnings (loss) from continuing operations before tax (USD, millions)

Income tax (provision) benefit (USD, millions)

Earnings (loss) from continuing operations (USD, millions)

Earnings (loss) from operation of discontinued operations (USD, millions)

Income tax (provision) benefit from discontinued operations (USD, millions)

Earnings (loss) from discontinued operations (USD, millions)

Net earnings (loss) (USD, millions)

Net (earnings) loss attributable to noncontrolling interests (USD, millions)

Net earnings (loss) attributable to Celanese Corporation (USD, millions)

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Adjustments for Non-Cash Items (USD, millions)

Stock-Based Compensation (USD, millions)

Changes in Working Capital (USD, millions)

Capital Expenditures (CapEx) (USD, millions)

Proceeds from / Repayments of Debt (USD, millions)

Share Repurchases (USD, millions)

Dividend Payments (USD, millions)

Net Change in Cash (USD, millions)

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Engineered Materials

- North America

- Europe and Africa

- Asia-Pacific

- South America

Acetate Tow

Acetyl Chain

Other

Total Revenue

f8d0b54cf756d867388f8377181eabe21d57d9c874fe3d4248b91cb331aba24c

Advanced Engineered Materials

Consumer Specialties

Industrial Specialties

Acetyl Intermediates

Other Activities

Intersegment Eliminations

Eliminations

92e20e9661d4ef985cb3c676fd6c19348ae620df0cb43b7a47f690b02194ce43

Celanese (CE)

Financials