By Katherine Hamilton

Celanese swung to a loss in the fourth quarter after facing weak demand across global automotive, paints and industrial industries, which it expects to persist into 2025.

The chemicals and plastics maker on Tuesday posted a loss of $1.91 billion in the three months ended Dec. 31, compared with a profit of $701 million a year earlier.

Revenue fell about 8% to $2.37 billion, in line with what analysts polled by FactSet expected. Revenue declined because of decreases in volume, price and currency, Celanese said.

The Irving, Texas, company said that automotive and industrial industries reduced inventory in engineered materials, which negatively impacted fourth-quarter financials. Celanese reduced costs, aligned production to available demand and used working capital to mitigate the challenges.

Demand and pricing pressures are expected to continue into 2025, Celanese said. The company predicts earnings per share in the first quarter to be 25 cents to 50 cents, accounting for about $100 million in headwinds from low demand. Second-quarter earnings are expected to be around $1 a share higher than the first quarter, it said.

As part of its cost-cutting efforts, Celanese plans to close its Luxembourg Mylar Specialty Films manufacturing site, which it jointly owns with Teijin.

"With little indication of near-term recovery, it is our job to drive productivity and earnings growth at Celanese even if fundamental demand remains flat or declines further," said Scott Richardson, who started as chief executive in January.

Write to Katherine Hamilton at katherine.hamilton@wsj.com

(END) Dow Jones Newswires

February 18, 2025 17:04 ET (22:04 GMT)

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