It does not include EPS estimates, it reports incremental revenue growth

  • Adjusted EPS: The reported price is $2.08, lower than the estimate of $2.92.

  • Net income: The reported amount was $124 million, well below the estimated $315.64 million.

  • Income: Reported at $2.6 billion, below the $2.86 billion estimate.

  • Operating profit: Valued at $210 million, demonstrating operational efficiency in difficult market conditions.

  • Free cash flow: An amount of -USD 40 million was reported, which indicates a decrease in liquidity compared to the previous period.

  • operating EBITDA: The amount reported was $583 million, which shows high earnings before interest, taxes, depreciation and amortization.

  • Future perspectives: It anticipates next quarter adjusted EPS of $2.60 to $3.00, reflecting ongoing strategic initiatives and market conditions.

Celanese Corp (CE) First Quarter Earnings: Excludes EPS estimates, reports revenue growthCelanese Corp (CE) First Quarter Earnings: Excludes EPS estimates, reports revenue growth

Celanese Corp (CE) First Quarter Earnings: Excludes EPS estimates, reports revenue growth

On May 8, 2024, Celanese Corporation (NYSE: CE), a global leader in the chemical and specialty materials industry, released its first quarter 2024 earnings in an 8-K filing. The company reported US GAAP diluted earnings per share (EPS) of $1.10 and adjusted EPS of $2.08, lower than analyst estimates of $2.92. Despite the EPS loss, Celanese achieved 2% net sales growth to $2.6 billion, reflecting positive volume growth of 2% at neutral prices.

Informations about company

Celanese Corporation is renowned for its production of acetic acid and its derivatives, serving diverse markets such as coatings, adhesives and specialty polymers used in various sectors including automotive, electronics and medical. The company also produces cellulose derivatives used mainly in cigarette filters, positioning itself as a significant player in the specialty materials sector.

Operational and segment performance

The company’s operating strategy in the face of a stabilizing but challenging market environment was solid and focused on controllable activities that helped mitigate the impact of seasonal fluctuations and higher expenses resulting from planned outages. In particular, the Acetyl Chain segment saw net sales increase 7% to $1.3 billion, driven by increased demand in Asia and seasonal recovery in the Americas and Europe. On the other hand, the Engineering Materials segment saw a slight sales decline of 2% to a total of $1.4 billion, driven by a decline in volume and pricing.

Key events and financial challenges

Celanese reported operating earnings of $210 million, adjusted EBIT of $407 million and operating EBITDA of $583 million. These numbers represent calculated resource management during the summer recovery phase. The company also highlighted significant outage and merger costs of $97 million, which impacted net earnings, placing them at $124 million for the quarter compared to a significant $701 million in the prior quarter.

Cash flow and future prospects

The company’s cash flow dynamics were mixed, with operating cash flow of $101 million and distressed free cash flow of $(40) million. Looking ahead, Celanese provided a second-quarter earnings forecast ranging from $2.60 to $3.00 per share, taking into account ongoing business optimizations and macroeconomic conditions.

Strategic initiatives and market positioning

Under the leadership of CEO Lori Ryerkerk, Celanese continues to streamline its operations, as evidenced by the recent commissioning of a new acetic acid plant and the closure of costly facilities. These strategic moves are aimed at improving the company’s market adaptability and financial stability in a volatile global market.

Overall, while Celanese Corp (NYSE:CE) faced some earnings pressure this quarter, its strategic initiatives and market alignments provide a solid foundation for potential growth and improved operational efficiency. Investors and stakeholders will be closely watching the development of these strategies in the coming quarters, especially in light of the expected economic recovery and its impact on the global chemicals market.

Detailed financial data and further information can be found in the company’s official performance releases and financial statements.

For more information, check out the full 8k Gains publication. (here) Celanese Corp.

This article first appeared on GuruFocus.