Business Analysis of Celanese

 Analyze Historical Performance, Strategic Priorities, And Business Improvement Opportunities of Celanese

CELANESE

Business Overview

Celanese Corporation, a technology and specialty materials company, manufactures and sells value-added chemicals, thermoplastic polymers, and other chemical-based products worldwide. The company's Advanced Engineered Materials segment develops, produces, and supplies specialty polymers for automotive and medical applications, as well as for use in industrial products and consumer electronics. Its Consumer Specialties segment provides cellulose acetate flakes, films, and tows for use in filter products applications; food protection ingredients, such as potassium sorbate and sorbic acid for food and beverage industry; Sunett, a sweetener for use in various beverages, confections, and dairy products; and Qorus, a sweetener system designed for low-to no-calorie carbonated and non-carbonated beverages, flavored waters, energy drinks, and milk and dairy products. The company's Industrial Specialties segment offers vinyl acetate-based emulsions for use in paints and coatings, adhesives, construction, glass fiber, textiles, and paper applications; and ethylene vinyl acetate resins and compounds, as well as low-density polyethylene for use in flexible packaging films, lamination film products, hot melt adhesives, automotive parts, and carpeting applications. Its Acetyl Intermediates segment produces and sells acetyl products, including acetic acid, vinyl acetate monomers, acetic anhydride, and acetate esters that are used as starting materials for colorants, paints, adhesives, coatings, and pharmaceuticals. The segment also provides organic solvents and intermediates for use in pharmaceutical, agricultural, and chemical products. The company was founded in 1918 and is headquartered in Irving, Texas.

Celanese

Celanese


R&P Rank: 486
Sector: Basic Materials
Industry:Chemicals
H.Q Location:Texas
Website: www.celanese.com
Company Address:
222 W. LAS COLINAS BLVD., SUITE 900N, IRVING TX 75039-5421
Ph:972-443-4000

Business Analysis of Celanese

The Basic Materials Sector is witnessing a major shakeup, new age business models in the industry are transforming both customers and businesses. Faced with this uncertainity, companies are investing resources to transform their business. An in-depth business analysis is a valuable resource to identify and articulate the need for a business model change. At R&P Research we believe, the starting point for a business analysis is Benchmarking. Business benchmarking can be done at various levels: 1) Industry Benchmarking 2) Peer Benchmarking 3) Disruptors Benchmarking. In this report, we share the snapshot of how Celanese compares against the industry on the major performance indicators. This analysis, along with peer group/disruptors benchmarking and revenue model understanding can help identify growth and cost optimization opportunities to maximize the value delivered by Celanese to its stakeholders. R&P Research Industry Intelligence Platform provides historical data for last 15 years with an easy to use benchmarking interface for an in-depth comparative business analysis.

Here is the performance snapshot of Celanese with an interactive chart.

  1. Revenue Growth: Celanese reported a revenue growth of -5.0% year-on-year during 2016. Chemicals Industry grew at -4.1% in the same period
  2. COGS share of Revenues: As a percentage of revenue, Celanese spent 73.9% of its total revenues on COGS. Chemicals industry average (COGS share of revenue) in the same period was 70.2%
  3. R&D share of Revenues: As a percentage of revenue, Celanese spent 1.4% of its total revenues on R&D. Chemicals industry average R&D spending in the same period was 2.5%
  4. SG&A share of Revenues: As a percentage of revenue, Celanese spent 7.7% of its total revenues on Sales, Marketing, and General Administration (SG&A). Chemicals industry average SG&A spending in the same period was 13.0%
  5. Inventory share of Revenues: As a percentage of revenue, Celanese spent 13.4% of its total revenues on Inventories. Chemicals industry average Inventory spending in the same period was 14.6%
  6. Accounts Payable share of Revenues: As a percentage of revenue, Celanese invested 11.6% of its total revenues on Accounts Payable (A/P) Chemicals industry average Accounts Payable investment in the same period was 12.6%
  7. Accounts Receivable share of Revenues: As a percentage of revenue, Celanese invested 19.0% of its total revenues on Accounts Receivable (A/R). Chemicals industry average Accounts Receivable investment in the same period was 16.8%
  8. PP&E share of Revenues: As a percentage of revenue, Celanese invested 66.4% of its total revenues on Property, Plants, and Equipments (PP&E). Chemicals industry average PPE investment in the same period was 52.9%
  9. Intangibles share of Revenues: As a percentage of revenue, Celanese invested 18.4% of its total revenues on Intangibles. Chemicals industry average Intangibles investment in the same period was 31.4%
  10. Net Margins: Celanese Net Margins in the year 2016 were 16.7%. Chemicals industry average Net Margins in the same period were 8.1%

Sector and Industry Association of Celanese

For the purpose of performance benchmarking of a company with a sector or industry average, R&P Research associates every company with one sector and one industry. An industry consists of companies with related/similar business models. A sector comprises of a group of related/similar industries.

Celanese is associated with Basic Materials Sector and Chemicals Industry.

Basic Materials sector is comprised of the following industries: Metal Mining; Coal Mining; Chemicals. The definitions for each of the industries is as follows:

  • Metal Mining industry includes companies primarily engaged in mining, developing mines, or exploring for precious metals such as Gold, Silver, Platinum and base metals such as Iron, Copper, Aluminum, Lead, and Zinc. It also includes companies that manufacture alloys such as steel.
  • Coal Mining industry includes companies engaged in the exploration for and/or mining of coal.
  • Chemicals industry includes companies that produce and/or distribute commodity and specialty chemicals. The companies manufacture three general classes of products: (1) basic chemicals, such as acids, alkalies, salts, and organic chemicals; (2) chemical products to be used in further manufacture, such as synthetic fibers, plastics materials, dry colors, and pigments; and (3) finished chemical products to be used as materials or supplies in other industries, such as paints, fertilizers, and explosives.

Industry Ranking of Celanese

With $5.4 billion revenues, Celanese ranked number 14 of all the companies in the US Chemicals industry. There were a total of 66 public companies in the US Chemicals industry that had revenues greater than $50 million during 2016.

The top-10 companies in the US Chemicals industry by revenues during 2016 were:

  1. Dow Chemical ($48.2 billion)
  2. Lyondellbasell Industries ($29.2 billion)
  3. DuPont ($24.6 billion)
  4. PPG Industries ($14.8 billion)
  5. Monsanto ($13.5 billion)
  6. Sherwin Williams ($11.9 billion)
  7. Praxair ($10.5 billion)
  8. Huntsman ($9.7 billion)
  9. Air Products ($9.5 billion)
  10. Eastman ($9 billion)

Business Model Analysis (BMA) Framework

We use the following framework to assess the business model of a company. Business Model Analysis framework can be used by organizations to articulate growth strategies and identify cost optimization opportunities. Technology and consulting companies can use this framework to identify the value drivers and pain points of their targeted customers. Entrepreneurs can use this framework to understand the language of business and identify promising business opportunities. This framework can be used by any professional aspiring to take up a leadership role to better understand the businesses challenges, articulate growth strategy, and monitor the business improvement requirements for the organization.

Next Steps

  • Conduct a holistic benchmarking; to identify and target additional sources of value
  • Get in touch with us to learn more about Business Model Analysis Framework
  • Get free data, charts, and analysis of Celaneseand its peers on select key performance indicators by clicking the reports provided below

Industry Peers and Competitors of celanese

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The Mosaic Company with $7 billion revenues in the year 2016 was the number 12 Chemicals company. Read this report to know the top competitors of Mosaic and identify growth and cost optimization opportunities of Mosaic

Chemours (CC) Business Analysis – Analyze Historical Performance, Strategic Priorities, And...

The Chemours Company with $5 billion revenues in the year 2016 was the number 13 Chemicals company. Read this report to know the top competitors of Chemours and identify growth and cost optimization opportunities of Chemours

Westlake Chemical (WLK) Business Analysis – Analyze Historical Performance, Strategic Priorities,...

Westlake Chemical Corp with $5 billion revenues in the year 2016 was the number 15 Chemicals company. Read this report to know the top competitors of Westlake Chemical and identify growth and cost optimization opportunities of Westlake Chemical

RPM International (RPM) Business Analysis – Analyze Historical Performance, Strategic Priorities,...

RPM International Inc with $5 billion revenues in the year 2016 was the number 16 Chemicals company. Read this report to know the top competitors of RPM International and identify growth and cost optimization opportunities of RPM International

PotashCorp (POT) Business Analysis – Analyze Historical Performance, Strategic Priorities, And...

Potash Corp Of Saskatchewan Inc with $4 billion revenues in the year 2016 was the number 17 Chemicals company. Read this report to know the top competitors of PotashCorp and identify growth and cost optimization opportunities of PotashCorp

Revenues Analysis

Celanese (CE) Revenues And Revenue Growth From 2012 To 2016

This report provides the last five years revenues and revenue growth of Celanese Corp (CE) from 2012 to 2016. Celanese generated a total of $5.4 billion revenues during 2016. Celanese reported a revenue growth of -5% year-over-year during 2016. The revenues and the revenue growth correspond to the fiscal year ending in December.

Celanese (CE) Revenues And Revenue Growth From 2005 To 2016

This report provides the last twelve years revenues and revenue growth of Celanese Corp (CE) from 2005 to 2016. Celanese generated a total of $5.4 billion revenues during 2016. Celanese reported a revenue growth of -5% year-over-year during 2016. The revenues and the revenue growth correspond to the fiscal year ending in December.

Celanese (CE) Revenue Growth Comparison With Industry Growth From 2012 To...

This report provides a comparison of Celanese Corp (CE) revenue growth with Chemicals industry growth during the last five years from 2012 to 2016. Celanese reported a revenue growth of -5% year-over-year during 2016. The Chemicals industry growth was -4.1% year-over-year during 2016. Celanese growth was slower than the industry during 2016.

Profit Analysis

Celanese (CE) Net Profit And Net Margin From 2012 To 2016

This report provides the last five years net profit and net margin of Celanese Corp (CE) from 2012 to 2016. Celanese reported a total net income of $900 million during 2016. Celanese generated a total of $5.4 billion revenues during 2016. Celanese net profit margin was 16.7% during 2016. The net profit and