Celanese Corporation (NYSE: CE) stock fell over 4.5% in the pre market session on 28^th January, 2019 (Source: Google finance) after the company missed the analysts’ estimates for the fourth quarter of FY 18. The robust contributions from both Engineered Materials and the Acetyl Chain drove financial performance for the FY 18. The Acetyl Chain elevated earnings to new levels by exercising its business model to grow volume and price year over year amid improving industry fundamentals. Engineered Materials grew through expanded project commercialization, contributions from the Nilit and Omni acquisitions, and improved joint venture performance. Total new project completions in 2018 were 3,274, which is a 47 percent increase year over year

Moreover, the company has generated operating cash flow of $1.6 billion and free cash flow of $1.2 billion, and deployed it to high return investments with the Clear Lake VAM expansion, acquisition of a Linde synthesis gas unit at Clear Lake, and acquisitions of Omni and Next Polymers. During the FY 18, CE has returned a record $1.1 billion in cash to shareholders through share repurchases and dividends.

CE in the fourth quarter of FY 18 has reported the adjusted earnings per share of $2.38, missing the analysts’ estimates for the adjusted earnings per share of $2.40. The company had reported the adjusted revenue growth of 17 percent to $1.68 billion in the fourth quarter of FY 18, missing the analysts’ estimates for revenue of $1.72 billion.

Meanwhile, CE plans to start the reconfiguration of its global acetic acid production network through multiple value creation steps. CE had recently acquired the carbon monoxide production unit from Linde PLC, which is located at the company’s Clear Lake, Texas site. This acquisition will increase the available raw material supply and further enhances the company’s integration position and supports unparalleled operational flexibility. The company has also announced the expansion of Clear Lake acetic acid facility from 1.3 million tons per annum to approximately 2.0 million tons per annum by late 2021. This project can easily be expandable by an additional 600 kilo tons per annum. The expansion will facilitate productivity options within its global acetic acid network in both Singapore and Nanjing, China, leading to approximately 600 kilo tons per annum of production rationalization and limited net change in total system tonnage. These projects will generate approximately $100 million of productivity and efficiency benefits across the platform after getting completed