Feb 18 (Reuters) - Specialty chemicals company Celanese CE.N reported a quarterly loss on Tuesday, hurt by persistent destocking trends in its automotive and industrial markets, sending its shares down over 13% after the market bell.
The company also announced that it would stop production and shut down its Mylar Specialty Films manufacturing operations in Luxembourg, which is a joint venture equally owned by Celanese and Japan's Teijin, as the company looks to exit higher-cost facilities.
Celanese is a top producer of acetic acid and VAMs, which are used to make paints, coatings and other products.
U.S. chemical companies have seen their results weighed down by challenging demand conditions from key markets for the majority of 2024.
Business activity in the Euro zone also contracted in November and December, which is a key market for Celanese.
"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.
The Dallas, Texas-based company reported a loss of $1.9 billion, or $17.45 per share, for the three months ended December 31, compared with a profit of $701 million, or $6.43 per share, last year.
The operating profit of the engineered materials segment suffered a significant drop, moving from a profit of $122 million in the same quarter last year to a loss of $1.51 billion, largely impacting the company's overall performance.
The segment's demand environment was impacted by sharp downturns from the third quarter in the automotive and industrial businesses due to destocking, triggered by a fall in demand from Western Hemisphere original equipment manufacturers.
However, on an adjusted basis, the company reported a profit of $1.45 per share in the reported period, beating analysts' estimates of $1.20 per share, according to data from LSEG.
(Reporting by Seher Dareen in Bengaluru; Editing by Mohammed Safi Shamsi)
((Seher.Dareen@thomsonreuters.com; If in India call +91 74832 70128;))
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