U.S. chemical group Celanese reported a 35% increase in year-on-year net earnings to $172 million in the third quarter, as net sales rose 1.7% to $1.63 billion. For the most part, the company's presentation focused on quarter-on-quarter developments, which CEO Mark Rohr described as "excellent," compared with Q2 2013. With a rise in the segment income margin in Q3 against Q2 to 17.1%, Rohr said Celanese is "on track to deliver on our objectives for 2013.

The engineering plastics segment, Advanced Engineered Materials, increased operating profit, excluding affiliate earnings, by 23% against Q2 to $48 million. This was thanks largely to good business with the automotive industry. Volumes were down 2% over the quarter, despite lower sequential auto builds in Europe and the U.S. The impact of a maintenance turnaround at a Middle East asset reduced affiliate earnings by $15 million. On the positive side, an improved mix of higher-value medical applications, lower raw material costs and "focused spending initiatives" padded earnings.

In Consumer Specialties, Q3 operating profit, excluding income from cellulose derivatives joint ventures widened by 2.4% against Q2 to $85 million. Quarter-on-quarter operating income of Industrial Specialties rose by 33% to $24 million, as volumes rose 3% on the back of stronger sales of EVA polymer in North America and Asia.  In the Acetyl Intermediates segment, operating profit shot up by nearly 22% quarter-on-quarter, despite lower pricing and a 1% dip in volumes.

Rohr predicted that earnings growth going forward will be driven by actions taken within the company rather than a stimulus from the global economy. "Celanese-specific initiatives that translate into innovation from new products and drive efficiencies through productivity will fuel earnings growth in 2014 at levels consistent with our long-term growth objective," he said.

In connection with the K 2013 triennial plastics exhibition in Düsseldorf, Germany, Celanese spotlighted continuing investment in its POM engineering polymers business in Asia and the Middle East, where it has cooperation agreements with joint venture partners such as Polyplastics in Malaysia, Korea Engineering Plastics (KEP) in Korea, and Sabic in Saudi Arabia.

As part of a jv with Polyplastics Asia Pacific, Celanese will increase its manufacturing footprint in Malaysia, where a new 90,000 t/y capacity expansion for POM will go on stream at Kuantan, Pahang in early 2014.

Korea Engineering Plastics, the Celanese joint venture with Mitsubishi, is expanding its POM capacity at Ulsan, Korea, by 35,000 t/y lifting the site's overall output to 140,000 t/y by the end of 2013.

Celanese also reported progress on its 50,000 t/y POM plant in Saudi Arabia with affiliate Ibn Sina, also known as National Methanol. The company is a joint venture with Sabic and Duke Energy of the U.S. In July, the engineering, procurement and construction contract was awarded to Dragados Industrial.

"The expansion of these joint venture agreements is a clear sign that Celanese is committed to meeting the growing needs of our customers in the Asia region," said Phil McDivitt, vice president and general manager of the Celanese enineered materials business.