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CE Celanese Corp - Series A

Participants
Surabhi Varshney VP, IR
Mark Rohr Chairman and CEO
Chris Jensen CFO
Scott Sutton COO
Robert Koort Goldman Sachs
Duffy Fischer Barclays
David Begleiter Deutsche Bank
Frank Mitsch Wells Fargo Securities
P.J. Juvekar Citi
Laurence Alexander Jefferies
Jeff Zekauskas JPMorgan
Mike Sison KeyBanc
Vincent Andrews Morgan Stanley
John Roberts UBS
Kevin McCarthy Vertical Research Partners
Arun Viswanathan RBC
Hassan Ahmed Alembic Global
Jim Sheehan SunTrust
Call transcript
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Operator

Good morning. And welcome to the Celanese's Third Quarter 2017 Earnings Conference Call. All participants will be in listen-only-mode. [Operator Instructions] After today's presentation, there will be an opportunity to ask questions. [Operator Instructions] Please note this event is being recorded. to ahead. conference like Varshney, to now go Please would turn over the Surabhi I

Surabhi Varshney

Denise. to Surabhi you, and Officer; conference me Thank and Welcome are Chief call. XXXX Third today Chief Jensen, My earnings Executive Quarter Scott Officer; name Chief Rohr, Sutton, is Mark Varshney Chris with the and Chairman, Celanese Financial Corporation also slides Operating posted section. the yesterday after Wire distributed via Officer. Celanese Business www.celanese.com for website Corporation's our comments third closed. on quarter and The in XXXX quarter Relations prepared were earnings release was Investor all market the

in been and to separate release like comments morning, turn Rohr Investor introductory comments a the the earnings Information. and Form the The SEC have discussed the over the some comparable of matters presented Form from X-K. are SEC The and now to posted release financial and of presentations we'll objectives call on Mark to non-GAAP under Mark for questions. your some then reminder, a in non-GAAP these matters statements reconciliations a with Celanese included example, X-K. Explanations today This begin now. I'd results. the our on Please As reconciliations include concerning, slides Financial to our Also, in included Relations been with also forward-looking references the on press section the have contained discussed measures. are include open-up note of to submitted website submitted measures future and and and to our the Corporation's the measures may prepared language and GAAP slides. cautionary for

Mark Rohr

with prepared to posted our earnings Surabhi, everyone. and remarks welcome Thank yesterday. you, We along

by of a to the Texas affected my limit then challenge. and and storm. estimate $XX three million quickly restarted, disruptions Clear with loss profit another Starting I'll proved All and be to So in logistics direct It Hurricane of but Bishop were very sites, and Lake, Harvey, tirelessly took directly deliver strong who to all And this the City units expenses hurricane the line for disaster Bay commercial $XX our and teams open overcome questions. We chain supply million result our headwinds. these of a this as are $XX we overcome opportunity in results proud worked quarter. million and flooding. to actions to extraordinary comments

six will the Regarding months venture the Blackstone, We jurisdictions have XXXX. in tow tow spring regulatory assess we of final received in filed anticipate decision already continue over all to approval JV the have late Commission potentially European with the for approval a Mexico. coming in and that with

above earnings results XX% XXXX came quarter, per adjusted in in earnings $X.XX at share last per per year despite Record were level of For the hurricane. the with share $X.XX consolidated GAAP earnings adjusted share. the

us showed XX%. pricing Specialties, the XXX previously quarter the and for high record million second the due of Affiliate year Acetyl were all-time the for margin also core X,XXX We sales to that $XXX $XX income million to $XXX which occurring $XXX and driven for of XX% of we’ve $XXX year. volume Acetyl's cash environment quarter $XXX full segment and projects acid intermediates in quarter, Segment Segment an in half returned rates lower XX% Consumer the the sales of Asia. Chain of in in were we to the with Acetyl income projects, the year-over-year We quarter. in decline before in improved than income XX.X%, increased Material records. the set of an in million to XXXX went quarter, the for up net on million million million $XXX AEM of the share utilization million solid $XXX business positioned dividends. million $XX this to million storm. margin and both acetic In The third by income to to third on primarily Tow net discussed. year-over-year. deliver of the commercialized which million. year-over-year versus investors was uplift quarter quarter up of industry XX% sales was repurchase more improvement segment income of in price earnings quarter third for third $XX solutions the material In Solutions

for turnarounds of We'll to core Offset view a provide the earnings In bit share net in in expect our confident site project factors, at our by first growth of expect adjusted and call. M&A we fourth a at typical year, next detailed materials the X% Acetyls of add are business $X.XX quarter earnings value to AEM look of the additional related in improvements our to taking with Acetyl’s ability sustained new the expect Along to out uplift of we of cost year, of and to momentum XXXX. the growth we $X.XX end Chain these to XX% commercial we X% end updated $X.XX in the we XXXX. in Now continue. earnings in January base volume to look more seasonality. Considering to $X.XX the planned range the year commercializations, per and XXXX earnings contemplate the Chain, Closing in the during range range XX% adjusted growth XXXX. to share. $X.XX, other year-over-year per create

Surabhi Varshney

questions like line I'd limit to now. to open Mark. request please callers one all follow-up. a you, Thank and the question please to for Denise,

Operator

you. Thank

the We Goldman question-and-answer of go Please will morning Koort begin Sachs. Robert this from ahead. session. will question be first Your [Operator Instructions] now

Robert Koort

was M&A at of year? baked into you wondering, for much or morning. still properties your you scale you're being the component sense in assets AEM I how mentioned looking Thank a of guidance you, of give just commentary might good some and Can us that next growth. be

Mark Rohr

difference current done. And baked what where new folks back in accretion carry we few nothing guidance the to of to is was a had in acquisitions course into the more X.XX and of between M&A, we've have currently objective $XXX $XXX there the that we X.XX put forth million there tow well using Investor of in that the And X number. was Day this years profit. the that incremental Yes, million I we M&A of beyond X the ago the

So we corrective more are X.XX that. like really on a basis in

additional to for close So to say we’re help what we in that X.XX think the us on I is some that to need gap. probably looking would What I number scope M&A push to days to soon that's we ourselves Bob forward bolt-ons, we're most activity as of finding and having look bolt-on in properties. but continue not where our more hope limiting is just these

Robert Koort

line niche, you be continue have you it into volume but at stuff And potential you deals resins? expect you to those that volumes and bit lower less volume of could the more is to obviously want stuff. of lower I don't and business high be looking high the the would Or gotten of price call to little do price some higher it -- engineering

Mark Rohr

Yes.

Robert Koort

thank it, Got you.

Mark Rohr

few scenario you’ve out look maybe And to process, we've continue I this approached for think a there not for as very at at. directionally us, yes getting we're worked the suggested good that is but practicing that it, deals us it's we team

Robert Koort

you. Great, thank

Mark Rohr

you. Thank

Operator

will Fischer go next The come Duffy from of Please Barclays. ahead. question

Duffy Fischer

Yes, good morning fellows.

Mark Rohr

Good morning, Duffy.

Duffy Fischer

couple should to last first with rate terrific while think how in put it much some seen the a in will of having time like to Question you're meaningful we've capital the that obviously cost the on expansions, AEM, returns about looks we keep of growing capital, in growth kind how it incremental years? at

Chris Jensen

we Hi higher Duffy, capital have Chris. that was than growth investment M&A. it's our highest Typically returning organic the

conservatively at far So our XX%, you if of of cost put capital that. in it's excess

Duffy Fischer

you on Okay. some is or using rolling share the benefit is that then the that buyback we EPS talked that think like-on-like count increase a through And the segments? from share about, about segment when that assuming

Chris Jensen

sort we've the think said the below remarks incremental of prepared the I in that is an stuff $X.XX. business So of

repurchases, some repurchases the So rollover we that not of the net but share XXXX. of of benefit share rather in new of did share that some repurchases,

Duffy Fischer

Terrific, thanks guys.

Mark Rohr

you, Thank Duffy.

Operator

of Please will ahead. Bank. Deutsche David next go come The question Begleiter from

David Begleiter

Mark. your the market progressing now, Thank year it's what's and acetic specifically right Can you perspective? for the happening from China you, discuss acid how in

Mark Rohr

a but and we we our Scott the year out projections year. make for ask comments I'll this and gave in started Yes, here, weigh actually to few

based The we're very range, what we as first we expected to improve the to our on saw careful business the anticipated, know year. everyone that through we to went

we've an in improving taken color steps we maybe you our we take to really and on want to that us systems allowed provide fact this advantage place global and And the business, local in that's supply and more have China, particularly trends so differentiate it China. it. Scott prepared chain and to we of seen that in this, for saw in prompted, have early so we're

Scott Sutton

of well. it a and those see acid different, instantaneous mean of an the reasons real David, in that I I come apply right environment all really in you environment, and much business right, our particularly driving result acid, improving through that ability comfortable things capacity utilization. see to profit capacity a drive it's in in acetyls is is utilization in Yes, acetyls of things and acidic drives more drives But and we things it's to level come China improving environmental I which see nameplate see expect and I are mean, for you which globally you as coming gives continue. to that's at will, acetyls running a China China mean, that and is it's in, us quickly the one run more the having model regulatory improving up you

David Begleiter

doing how XXXX? potential in discussed the acidic you’ve Mark looking acetyls transaction acid, Acetyl an the for with past like is perhaps

Mark Rohr

hard leads Well, is hard that's to I looking businesses each own find additive we're world to which in that -- those on awful to think up continue way. and all the working our day, sure we so a We're our think I one of specific with monetize to shareholders. [ph] way been in mean, its to ways

that that So say so equation, what as working I go to on is far but put it. date wouldn’t I would we're a

David Begleiter

Thank you.

Operator

Fargo will Mitsch Wells of question ahead. The next Frank go come Please Securities. from

Frank Mitsch

morning. Yes, hi good

Mark Rohr

Frank. morning, Good

Frank Mitsch

Mark, competitor what how and the outage, of the ago can couple two an you weeks one outlook talk impacted be? about of weeks your past has would business your suffered over that

Mark Rohr

I partner -- impacted, think event on and that's Well, got fortunately the are I’d the it positive really event axed was yes of so out it thing. that of an guys was community but and really really hurt you event, aware wasn’t there

impact function tell of that. really time bigger through way I haven't that whether itself rolls long is event will think big the and really really that a is the market We in that seen it how last, of

Frank Mitsch

from any we seeing sort think impact You What obviously How that September. are Alright. size should Harvey? of effects the you in about lingering if in QX?

Mark Rohr

still trying to Bay we're today, speak to get we barge as Well, traffic City.

have site We've up site give product last supplying place Scott We mill dredges. up at logistics the think I'm get anything the Colorado I wind few looking down with been to can drudge and that miles River. plant a outside four team that to silted during plant and trains in out. else material trucks rails and trying the of

there it impact ongoing fairly is ways fairly a or successfully though we're to run cost, cost to able that, successfully. our So to run found it we

I are I that result ripple this this a over And So largely losses think anticipate losses the wouldn't effects of quarter it. quarter, as storm. material from

Frank Mitsch

so thank you much. Alright,

Operator

come Citi. go from ahead. question will next Juvekar of Please The P.J.

P.J. Juvekar

Hi, morning. good

Mark Rohr

Good morning P. J.

P.J. Juvekar

X,XXX projects over next to projects X,XXX introducing that's XX a almost you're going and day, year. Mark, you're

are projects how So example. would new existing your say these you Hammer how Handle much like products of cannibalizing products much versus

Mark Rohr

that think new Well in a it's mean going and I on. is put we're application application to or it by I going new, be there into. a cannibalization had customer any new so don't an definition

is may a having that in be said person way. moving a substitution So lateral going where from there some

agree largely So with Scott it's new. I think their you would but that?

Scott Sutton

those all right. P.J. is mean, are attrition true in it's projects I some I business the new. of mean there

growth, replaces doing business. As which that already helps the very on and Are going project. go and in called offset new really model we it's that's normal we were do answering but attrition I that's mean your models project rarely something changed actually new question? the away, that we have a

P.J. Juvekar

you hurricanes? Yes, is declined. what to didn't margin raw why wondering actually uplift that's materials the margins with these from good. that margin see the typical due uplift new Whether a And products. And

Scott Sutton

the P.J. Yes, business see far margin you we have lost decline Harvey some as impacts mean I in I have and in do as some you mean the this that We slight from first quarter. had sales selling I part cost the that that Asia of the that the the But some it there. question though. M&A is and fact real heavily we're missed into kind margin that's issue.

Scott Sutton

is from you're was for new introducing. typical that uplift products I the asking what margin these

Mark Rohr

contribution it. quite And the that All for but guidance we uplift the cost. that a support I of projects acquisitions base other get a that's back on growth we continue if coming hand, at growth including right, the do. a margin high the this to business the new we got Yes, you and bit adds think about why margin to

margin So level. trying around EBIT XX% that's about to without hold think standpoint affiliate An earnings. is that okay from an to there

P.J. Juvekar

Okay.

Operator

question next Alexander The Please come ahead. will of go from Laurence Jefferies.

Laurence Alexander

or morning. characterize about behaving from guess or noise how customers I you you what in year-end the Good terms think QX are any the turbulence first, shutdowns could year? seeing this QX you're given bridge of to

Chris Jensen

with anything think don't Laurence off quarter. I unusual pretty that. a coming We're Yes, volatile

folks of to to of what's on get way not to not holiday anyway the moderate down to really big looking the want on outage other. don't aware have or season on comp am I'm it going there, impact and you typically tend that's a I'm But I table as -- the bit but forecast us a one any exactly major things And so aware bit. tend going little a I

Mark Rohr

just it's is there it's of QX to Mark. I say kind some the I quarter every different. and going collection. that be normal your would And not mean is

Laurence Alexander

serve trends a market? specifically need degree secondly in demand for degree in China, you to that flash capacity on there and out China currently you're then about the which pull thinking build little could is And AEM there to the of bit

Scott Sutton

sure. Yes

us So well. medical is in strong are in good all up, business. I segments the we especially you in mean for mean, growth, is in in again, up. look demand China, the China in I market our Asia, of pool Engineered Scott rest are world there, some this consumer see traction Materials see -- particularly the market all to fact are as segments starting you in But see globally

a there we for is can where combination hungry the it go demand; So and a great things; two, number really solutions. unique offer whole of is model, is bunch one, of China market really two our in

And that trend so continuing. see I

Laurence Alexander

Yes, thank you.

Operator

will go The JPMorgan. of come Zekauskas from next Please ahead. Jeff question

Jeff Zekauskas

I billion in the a anticipate much. had $X.X your very slide, is the about between you JV. XXXX, including Thanks dividend what question to of and flow that generation cash of say $X.X from billion cash XXXX

$X.X dividend subtract $X.X we if So of JV left. out the is billion, there billion

period, five what So, or generate year $XXX you the are four is that $X.X you calculation? going do saying over cash, period, you’re billion to a is that do or year in year million how a a

Scott Sutton

is Yes Jeff, it five year.

So if talk that Investor XXXX early current next our XXXX in we’ll to our Day. of strategy you year period think about

billion year $X three that across is billion this of period cash free or For $X.X three year. flow

about are right that average. So you on

Jeff Zekauskas

enacted, it that do EXX or for Celanese, then Okay, relevant would something XXXX. be great. And initiative nationwide to is benefit a it actually will to or follow-up, enacted? as that it Is think is my there have Chinese Celanese in you

Scott Sutton

is is right. is the year it’s all the the will And that or going not probably see offer for Celanese, it pretty the for China I as that well, market, but lot And know happen and kind because a a there, to move they think trend our is the that new is one year intention to the positive to car a us. big I are into of good earlier, but we there right. be successful a Yes, happen helps, so just is so don’t you’re sold car to this solutions where that’s we get EVs that EV completely is batteries XX%, actually, from make It earlier, dynamic and of itself, XX% Scott, push one cars it’s of also change. because

Jeff Zekauskas

great, thank so you Okay much.

Mark Rohr

Thank you, Jeff.

Operator

from Mike The Please of next will go come ahead. question Sison KeyBanc.

Mike Sison

Hey, good morning quarter. nice

Mark Rohr

Thanks Mike.

Mike Sison

the this about some markets think you’ve new some polymers given are be Mark to are so growth replace maybe next point, need What areas? pretty find talk of the to Can you saturated areas the the X,XXX continues maybe markets AEM, that and new when materials you look about to project as at you to year? to these looking particularly of you get impressive. with

Mark Rohr

have is we more to ongoing. for evolution a us, anything, desire attention the there part is of in that continually a on Well evolve of I of Mike just goods and medical. so I saturated lot say What manufacturers we tremendous focus put continues there will big know, area is update more so contemporary there, but and don’t is that to think of goods, medical we opportunities consumer all make their be

segment that area had set of growing course a been segment in big an Electronic have for legacy and electronic, us. recently player growth that’s Celanese much now that’s for us. So focused real as on of up lots as The of we we

players broadly opportunity gave the say that low handout we some seeing and talked we did technology. handle I upgrade to on upgrade in little in demonstrating it’s that use in impressive an pretty spite bit let’s but Now that really global really really Automotive tech, a interest we of somewhat automotive are are ways. sounds that hammer to that is about in our us remains many a we of important it consumer lots we know applications, example strong of earlier. continual like And one also and of in trends for growth

So those real as would four list of areas I focus.

Mike Sison

growth big think in Sina $X.XX $X.XX much share how turnarounds then come and from will ‘XX ‘XX, about Okay. a negative production AEM versus the of impact EPS growth to when that in And you expansion? per the Ibn then is

Mark Rohr

year next tow materials from in that slated turnarounds some have do we takes volume. -- have that we away So

I business. in another could $X.XX think would the those to in So absent there $X.XX higher be it base

that -- seeing it's that not but is been what is, we said So haven’t de contribution minimis. we've

Scott Sutton

not of base is minimis. of equity some and in those it's products business mean, I Scott, Yes, income a out by. our less tell a because our would contribution seeing POM it see that more supplies to we will de projects to basically I through This that's and bit been have base you business little go execute

Mike Sison

thank it, you. Got

Mark Rohr

Mike. you, Thank

Operator

The next ahead. come Please from Morgan go Vincent of Stanley. Andrews question will

Vincent Andrews

of the just working that’s year? next flow much. is Chris of help level flow this comments year on just cash on very and free the rate or vis-à-vis growth year targets, cash Thanks capital that new next a some the stuff based your free capital been reversed working

Chris Jensen

sort take pieces. in of me let two Yes, that

So we with we're going first, now the we're top-line and guidance. end investment higher of We've be as you out across said along our in that it’s when the comes know working the and business capital. look growth towards came nice had growth some to and

and The thing other Scott is couple when now longer in our heard that receivable. has is acetyls talk and has for quickly strength that's Asia engineered you're region materials about as been terms in in Asia payment of typically you that for growing world it accounts in the business growing driving in of years a right a

we've price maybe business reverse. why think continues capital would said strong a thought. reverse, on we provided elevated that and little then bit in XXXX To stays second working than little your higher capital your look working a things those come of part and if Asia that I that's yes So material out stay raw the question, into answer

Vincent Andrews

like to or flat any I your are be asked have And yet, year, the tow Okay. price It expecting uncontracted the about then next And negotiations segment comments about has your will. acetate for comment of thoughts because you on some one volume. for any nicotine indication things impact no like sounds portion shockingly so thoughts they you're where then that it things over good have, And how be out, business great. cigarettes some time. I bad from to of see would period the of can plan that and your might FDA’s take recent would would shakes what out so

Scott Sutton

in to that two, of generally and is pressure, price this to I XXXX so but so through contract negotiations business us industry, far Vince already finalized. or Look forth, mean there there yet and is flat we've smaller compared another as you’ll some still been that Scott. I another a some come relatively a be XXXX. part Yes still And on, as there see is locked season year for is part competitive part think out nature speaking, with is

trough proposal the to question So there, this it's with FDA On -- out at a coming second really nicotine. state. be second out move your right the

demand to how the up either unknown for that it's the the reality depending go delivery on is same the will think could the I down. amount impact or industry, nicotine of get cigarettes system, go

we don't know. really So

Vincent Andrews

you thank much. Okay, very

Mark Rohr

Vince. you, Thank

Operator

be ahead. question go Roberts next UBS. from will John The Please of

John Roberts

Thank you, you can hear me?

Mark Rohr

Yes, John.

John Roberts

And is September. seem going answered Scott like announcement to had which if China, know as back corn another I’d for sense to in go I asked imports. that’s based about, think I I you electric that based coal question vehicle they’re make something to thought an would doesn't would go back in they but go earlier about, question, you to think Jeff’s but given China it he to had which them

So do thoughts you announcement? on any that have

Scott Sutton

way. heard, Yes, I on EXX, think I don't sorry, in that's that Look will no okay said we got impact how to be but Yes, either material a it expect for go? of us kind ethanol Okay. us; to it. he EV,

John Roberts

polyethylene on you? reactor or the off scale weight there those molecular the capacities with that then in ultrahigh their or anything capital Celstran And capital less expansions, is more of would polyacetal projects make required past for the efficient

Scott Sutton

ultrahigh Yes, look expanding polyethylene weight already molecular is another a part produce that that that. as a at mean, and additional the system where of as substantial of we part incrementally far site is I capacity

think can you expansions being all of incremental. as So those

site we produce a that The just line it. other where already part is part of another effectively at LFT the

John Roberts

you. thank Okay,

Operator

question of ahead. McCarthy go Partners. Kevin from Vertical come The Please Research next will

Kevin McCarthy

to additional million third opportunistic stock you deployment, back remarks, in think I morning. quarter the bought your of JV. in not prepared unless Yes, expect good repurchases do yet related you Question commented or that tow on $XXX they're capital you

how clarify the end? could around that. if year of capital options your deployment And some through you opportunistic wondering weighing you're piece the was for of I thinking So

Chris Jensen

This completed is the million to that But looking is we buying we're that Chris; what now set $XXX always general we've repurchases share opportunities. do in for this year. of out

that's on the JV never piece venture. The ever of what be say to joint just year. with timed I kind just on one tie proceeds point that's really for that ending opportunities the and is that from repurchases don’t to have. likely the that So the come the want depending we will that day dividend together

Kevin McCarthy

follow-up, Understood. if in And then a could I you was Mark, wondering outlook as speak to the AEM. margin

mix You've the your elaborate obviously margins could had your the acquisitions. the with some on effects you going properties. related what's efforts Perhaps acquired on margins and raise underlying to to on

Mark Rohr

as earlier to of those lower were and margins we businesses businesses most said look do. at have Well much honest we the unfortunately than be we've

the expansions shift get go help is the them the week these rebuild is to a assets the some we -- are products assets that and the are these. of products low with and loading marginal a the consistent in the quality upgrading certainly process And process away So which associated just that of now mix loaded products on to products the of contribution that going underway end produced by margins that Two are to includes cost with the -- is elements in through parties to also selling out that operation team our in quality the through of there area. and up us productivity, really we're upgrade. can those helps the from of think that pure third the that are dilute of that some rolled one the we last produced and

to said underway, the think a range XX% XX% we've in things where this is bit process. three We're that quarter. that we range little lower want those So than are to I the be

or we we So a I with deal think through down be XXs this as be back that you'll of into -- from more period we year as that we see we start to bit. low little kind have up two net-net you’re next in pushing mindful back that's go to target had that. range. acquisition And us going But and move get able be a see should another pressure

Kevin McCarthy

much. very you thank Perfect,

Mark Rohr

Yes, sir.

Operator

from Arun go will next question The ahead. come RBC. Please of Viswanathan

Arun Viswanathan

you. morning, thank Good

a pricing question you next to just of to year? next understand $X.XX recent had Acetyl’s standpoint? outside Maybe be for sustained year. expect you on see growth What's can the kind help Do through some $X.XX on the of Just do embedded a you pricing us the Chain.

Scott Sutton

mean going Yes this into is momentum Arun Scott. have year. sure I we next

So the a biggest be expansion. margin of that part share $X.XX $X.XX to continued will

The underway bit do we have growth. little other efforts more with to have a

So we'll volume be one, number growth. be number in expansion Margin volume in at time the will same bringing some two growth.

Arun Viswanathan

the And of be similarly on gives after that now years couple that will confidence tow neutral side, what you the guys of declines?

Scott Sutton

just terms for with think are the position our in I already. where of we Well knowing outlook next year

of on next where we have little Some work a but very still We there. get have view is there, to a be contracts year. bit we're that. to have done some productivity do; know to recently do going to working were being done right good more now to a still we There of few we're

view. it's So a decent

Arun Viswanathan

you are you what you up, kind of of next some year? that say to And so roll the would push if projected swing factors it towards for growth would I mean, the were XX%

Scott Sutton

Well I back comes think businesses. all hitting organic to in

same on as we this think with up to at have have like headwind I have Engineered of top X,XXX. our a And level. it see have be tow. before lot to we can already that we you don't in momentum we materials we then acetyls is stepping how giant outlook see the long can project preserve of preserve we

get you the closer guidance. to end put to if all then So upper those -- things out together things then line the of that and we

Arun Viswanathan

thanks. Great,

Mark Rohr

you. Thank

Operator

Hassan from will ahead. go Ahmed The question Please be Alembic next with Global.

Hassan Ahmed

morning, Good Mark.

be bring X.XX. contrast comparing in long-term to where relative Europe Just X bit do it obviously be bit the But in now XXXX end a back looks we a as to guidance seems up couple If wasn't guys wanted China where of I bit a tow maybe XXXX me wise. of 'XX today. seems better, you again, were parts. to sort as to to guiding right be to were guidance seems better, XXXX a seems back moving economy bad it call obviously are to obviously we to It of then better U.S.

just So X.XX of want guided what to X to deltas to end X.XX in call versus you're you've this that back giving where of to figure newer were sort XXXX? out guidance the X.XX, it

Mark Rohr

do classically Well just of at look first off, year. what share our year to we first time next this

as guidance And at would had So was predominantly official team was starting three the to X.XX is annual that do rolls materials today that Nonetheless lot for and a do we that at range we the could have that stories of there of business. putting a do it short give at one guidance rolled of we bit growing frankly a up. of and ability believe handsomely there I quite period. call forth that extent there the strongest in that will we we the the look little been grow most year I bunch give And we think we and factors could has introductions to I we it just time look shown an numbers that the of that of we put X our that the out skepticism in were numbers January to has new year. just data is project we we the up when think will at to

And was double-digit a next get move trough lot is will we up numerous the starting to to think global this stabilize low the our and we're kind forward Chain range a that Chain on reach that demonstrate I lot from think range. But to going dimension it and earnings to a really more the the we've up and year. with gave business. a range lot of piece second to business how the we in XX% that us activity of call things numbers business, think that appropriate shifted we I over what with we that, XX% give business stay of

of end gave that we that that M&A, So and X.XX range the concept X do need factors those in it us very clear big, big forward we things to to to were material. two high were the a material pushing

$X.XX translate say course done. maybe that be of that maybe kind levels a could the were million and currently which you should and where third we we've that of of M&A, $XXX we're thinking that deals of So

deduct are $X.XX want that it's were of tow flat be to region expected And course expected we then alone. to you So that to actually for you of from to if where down deduct not up. that to be and off was

probably another that's $X.XX. So

X.XX I basis So should be next on it year. a like apples-to-apples think

more we're still trying So We're this do and to deals. is doing value, better. creating are

anything we from But now we're of walking kind the in the So in said see ourselves right middle out past. being we of not it.

Hassan Ahmed

Understood, very helpful.

be follow-up, a a sort as of certain sales it whatever I of a And Canada, parts bunch X% moving Mexico. or as whether sort look another XXXX take Now of disbanded around your case maybe. X% from to it's sort revenues least at going of obviously naphtha, of the call at from amendment

of disbanding a guys to any love you changes to Just or thoughts about naphtha hear that naphtha impact would all? at your would

Mark Rohr

played we’re depending about that spite I continually us it are -- vehicles not really recently are showing that We've the in a fact business, of it to to fact which mean, modified not strong growth think negative any how being growing vehicles that on in. talked that’s it’s say build, of in relative you part and very we don't and No. many of the impact it’s that for kind is gets were the down that that positive the upgraded space we business see or that. and -- to big or shrinking I that, world effect again,

matters we a where we or and don’t or they’re care seem us build doesn’t more to whether to built. bit really Canada, less Mexico So

Hassan Ahmed

Thanks helpful. much, Mark. so Very understood. I

Surabhi Varshney

will take let’s it the question more one the call. Denise, and be last for

Operator

Thank you and that Sheehan will ahead. go from of Jim SunTrust. be Please

Jim Sheehan

Thanks.

in You forward who’s departure management that have management you’re Chain business on a and to running and be what’s going thinking planning going the had change, Acetyl there?

Mark Rohr

for corporation Gentleman European know running of the that been has is Todd long commercial also operations a name time, Todd he you the has taken and operations role. growing our Elliot,

Jim Sheehan

offset to being think are that. JV, you the you share be of be as for offsetting bridge would it XXXX respect the interest kind think buyback there to And interest today on that tow cost I are synergies costs costs framing by with And initially Great. EPS, that would I activity. the indicated

a JV, you be assuming the would a bridge If and mid-year you for just the work? here to that it are little the close or bit could make for reconcile what timing

Chris Jensen

Yes, there on just for that no mid-year, annualized interest would covered be to would We be little EPS planning Because share from about costs easier purpose, we think contribution be by a bit of just the do. contribution basis. have talked repurchases. make the EBIT to the there’ll math

of so it EPS dependent critical given we could see bit fast and you of that’s and this though that. intra So on how around how got to little the really in is because that. numbers an point movement range that’s The how timing happens year market on we’ve from we pretty of not you a are -- view of

Scott Sutton

the of costs And a synergies it’s will eventually gap there is time. just interest in offset the

Chris Jensen

right. That’s

Jim Sheehan

much. very you Thank

Mark Rohr

Thank you.

Operator

Varshney, will the at over conclude And back Surabhi to the time closing like we this remarks. question-and-answer to would I hand for her conference session.

Surabhi Varshney

Thanks, Denise.

We Thank now. everybody questions in listening will and morning. up the this call your for you for wrap

around, have call. We further the please the call. you will close be Denise if questions any after

Operator

presentation. Thank time At for has now attending line. conference this you. your Ladies may gentlemen, you Thank disconnect ended. and you the today’s