Celanese Corporation CE reported fourth-quarter 2024 loss from continuing operations of $17.45 per share. This is in contrast to earnings of $6.43 in the prior-year quarter. 

Adjusted earnings in the fourth quarter were $1.45 per share, down from $2.24 reported a year ago. The bottom line topped the Zacks Consensus Estimate of $1.20.

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Revenues of $2,370 million fell roughly 8% year over year. It, however, beat the Zacks Consensus Estimate of $2,300 million.

Celanese experienced sustained demand weakness in major end markets during the reported quarter. Fourth-quarter results were also affected by sequential seasonality in the Acetyl Chain unit and significant Western Hemisphere automotive and industrial destocking in the Engineered Materials segment. CE took actions to cut costs, align production to available demand and release working capital through inventory drawdown to lessen the impact of the demand weakness in the reported quarter.

Celanese Corporation Price, Consensus and EPS Surprise

Celanese Corporation price-consensus-eps-surprise-chart | Celanese Corporation Quote

CE’s Segment Highlights

Net sales in the Engineered Materials unit were $1,281 million in the quarter, down around 9% year over year. It missed our estimate of $1,307.6 million. The segment reported an operating loss of $1,508 million compared with a profit of $122 million a year ago.

The Acetyl Chain segment posted net sales of $1,110 million, down around 6% year over year. It beat our estimate of $1,039.3 million. The segment generated an operating profit of $216 million, down from $264 million a year ago.

CE’s FY24 Results

Loss (as reported) for full-year 2024 was $13.86 per share. This is in contrast to earnings of $18 per share a year ago. Net sales fell around 6% year over year to $10.3 billion on lower volumes and prices.

Celanese’s Financials

Celanese ended the quarter with cash and cash equivalents of $962 million, down roughly 47% year over year. Long-term debt was down around 10% year over year to $11,078 million.

Cash provided by operating activities was $966 million and free cash flow was $498 million in 2024. 

CE’s Outlook

Celanese anticipates the demand and pricing challenges experienced in the fourth quarter compared with the third quarter to persist in the first quarter of 2025. It sees continued softness in core end-markets such as automotive, construction, paints, coatings and industrial. CE also expects additional headwinds from seasonality in acetate tow and medical implants businesses as well as a planned outage at the Bishop, TX, facility in the first quarter. 

Celanese expects first-quarter earnings per share in the band of 25-50 cents including the impact of non-recurring costs.

CE’s Stock Price Performance

Celanese’s shares have lost 53.7% in the past year against the Zacks Chemicals Specialty industry’s 17.8% decline.

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CE’s Zacks Rank & Other Key Picks

CE currently carries a Zacks Rank #5 (Strong Sell).

Better-ranked stocks in the Basic Materials space are ICL Group Ltd ICL, Compania de Minas Buenaventura S.A.A. BVN and Kronos Worldwide, Inc. KRO, each carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

ICL Group is slated to release fourth-quarter results on Feb.26. The consensus estimate for ICL’s fourth-quarter earnings is pegged at 6 cents. It surpassed the Zacks Consensus Estimate for earnings in each of the last four quarters at an average of 18.1%.

Compania de Minas Buenaventura is scheduled to release fourth-quarter results on Feb. 20. The Zacks Consensus Estimate for BVN’s fourth-quarter earnings is pegged at 20 cents.   

Kronos Worldwide is expected to release fourth-quarter results on March 5. The Zacks Consensus Estimate for KRO’s fourth-quarter earnings is pegged at 11 cents. KRO has gained around 4% in the past year.

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