Axalta Coating Systems, carrying a Zacks Rank #1, has a projected earnings growth rate of 26.8% for the current year. In the past 60 days, the consensus estimate for AXTA's current-year earnings has been revised upward by 5.9%. The company's shares have gained roughly 6% in the past year. Shares of this leading chemical and specialty materials maker are up 22.3% over a year compared with a 13% decline of its industry. Celanese, a Zacks Rank #3 (Hold) stock, remains focused on executing its productivity prog ...

Core Viewpoint - Celanese Corporation has declared force majeure and instituted sales controls for acetic acid and vinyl acetate monomer (VAM) due to severe supply chain disruptions and operational setbacks affecting key raw material suppliers [1][2]. Group 1: Supply Chain and Production Impact - The company is currently assessing the impact of supply chain disruptions on its Acetyl Chain network in the U.S. Gulf Coast and is taking steps to mitigate production losses [2]. - Celanese is facing production shortfalls of acetic acid and VAM at its U.S. Gulf Coast facilities, expecting a 15-20% unfavorable impact in the second quarter due to ongoing issues [4]. - To maintain customer supply, Celanese is utilizing alternative, higher-cost production sites, sourcing externally, and adjusting logistics, which may increase costs but aims to minimize customer impact [4]. Group 2: Customer Communication and Future Outlook - Celanese expresses regret for any inconvenience caused to customers and is committed to maintaining close communication to minimize the impact [5]. - The company will provide further updates on the resolution of these challenges and their financial implications during the second-quarter earnings report [5]. Group 3: Financial Performance and Projections - Celanese's shares have gained 28.1% over the past year, contrasting with a 10.8% decline in the industry [6]. - The company projects adjusted earnings between $2.60 and $3 per share for the second quarter of 2024, factoring in an expected impact of approximately 30 cents from M&M amortization [7].

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Table of Contents 12. Derivative Financial Instruments Information regarding changes in the fair value of the Company's derivative and non-derivative instruments is as follows: | --- | --- | --- | --- | --- | --- | |---------------------------------------------|-------|-------------------------------------|-----------|-------|--------------------------------------------| | | 2024 | Three Months Ended March 31, \n2023 | 2024 | 2023 | Statement of Operations Classification | | | | (In $ | millions) | | | | De ...

Financial Data and Key Metrics Changes - The company reported a significant EBITDA margin of 28% despite market disruptions and higher turnaround costs in the first quarter [133] - Cash taxes for the year are expected to be around $300 million, which is $75 million higher year-over-year, primarily due to a one-time transfer tax related to debt redomiciliation projects [67][68] Business Line Data and Key Metrics Changes - Engineered materials volumes were down 12% year-on-year, while global auto production was down 1% [20] - Acetyl chain volumes were up 11% year-on-year, indicating a strong performance in that segment [57] Market Data and Key Metrics Changes - Demand in Europe remains lackluster, with construction and coatings sectors showing poor demand [13] - In China, the new capacity has been more disruptive than anticipated, with downstream consumers experiencing delays due to weaker demand [15][29] Company Strategy and Development Direction - The company is focused on maximizing the value of its integrated commercial model and pipeline for engineered materials, which is expected to yield results by the end of the year [40][51] - The Clear Lake expansion is expected to contribute significantly to productivity and cost efficiency, with a projected $100 million benefit [118] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving full-year guidance based on controllable actions, despite the need for market recovery to hit higher targets [17][32] - The company anticipates a normalization of consumer spending on durable goods, which could positively impact demand in the second half of the year [27] Other Important Information - The company is seeing a shift towards sustainable products, particularly in the VAE segment, which is gaining traction in the market [98] - The integration of M&M synergies is expected to compound throughout the year, contributing positively to earnings [32][79] Q&A Session Summary Question: Update on global macroeconomic conditions - Management noted that macro conditions remain generally unchanged, with stability in the order book indicating the end of de-stocking [26] Question: Full year guidance and controllable actions - Management stated that they expect to meet guidance based on controllable actions, with no significant recovery built into the forecast [17][32] Question: Pricing pressure in engineered materials - The company is experiencing pricing pressure primarily in standard spaces, with efforts focused on inventory management and product mix [33] Question: Impact of competitor outages in Acetyl yield - Management indicated that any temporary pricing benefits from competitor outages were minimal and short-lived due to overall lower demand [78] Question: Outlook on cash flow and taxes - The company expects a second-half weighted cash flow, with significant cash taxes due to a one-time transfer tax [67][90] Question: Future demand for acetic acid in China - Management anticipates that delayed downstream projects will eventually come online, but significant demand recovery is tied to broader economic conditions [106]

Celanese Corporation (CE) reported first-quarter 2024 earnings from continuing operations of $1.10 per share, rising from 86 cents in the prior-year quarter.Adjusted earnings in the first quarter were $2.08 per share, up 3.5% from $2.01 reported a year ago. The bottom line surpassed the Zacks Consensus Estimate of $1.91.Revenues of $2,611 million decreased roughly 8.5% year over year and missed the Zacks Consensus Estimate of $2,748.6 million.Segment HighlightsNet sales in the Engineered Materials unit were ...

For the quarter ended March 2024, Celanese (CE) reported revenue of $2.61 billion, down 8.5% over the same period last year. EPS came in at $2.08, compared to $2.01 in the year-ago quarter.The reported revenue represents a surprise of -5.01% over the Zacks Consensus Estimate of $2.75 billion. With the consensus EPS estimate being $1.91, the EPS surprise was +8.90%.While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street expectati ...

Financial Performance - Celanese Corporation reported an adjusted EBIT of $583 million for the latest quarter, with an adjusted EBIT margin of 22.3%[19] - Adjusted EBIT for Q1 '24 was $407 million, with an adjusted EBIT margin of 15.6%, compared to $1,753 million and 16.0% for the full year 2023[39] - Operating EBITDA for Q1 '24 was $583 million, down from $2,444 million in 2023[37] - Engineered Materials segment reported an operating profit of $89 million with a margin of 6.5% in Q1 '24, compared to 17.6% for the full year 2023[39] - Acetyl Chain segment achieved an operating profit of $254 million with a margin of 20.1% in Q1 '24, down from 22.7% in 2023[39] - Total net sales for Q1 '24 were $1,687 million, reflecting a decrease in operating margin to 8.0% from 10.1% in the previous quarter[39] - Total net sales for Q1 '24 were $2.611 billion, a slight increase from $2.569 billion in Q4 '23[62] - Total company net sales for Q1 '24 were $2,611 million, a decrease of 8% year-over-year[68] - Engineered Materials segment net sales for Q1 '24 were $1.378 billion, compared to $1.406 billion in Q4 '23, reflecting a 2% decrease[62] - Acetyl Chain segment net sales for Q1 '24 were $1.261 billion, up from $1.181 billion in Q4 '23, marking a 7% increase[62] - Engineered Materials segment net sales decreased by 15% year-over-year, driven by a volume decline of 12% and a price decrease of 2%[65] - Acetyl Chain segment net sales increased by 1% year-over-year, with a volume increase of 11% offset by a price decrease of 10%[65] Cash Flow and Capital Expenditures - Free cash flow was defined as net cash provided by operations less capital expenditures, indicating the company's liquidity position[11] - Free cash flow for Q1 '24 was $(40) million, compared to $1,320 million for the full year 2023[68] - Net cash provided by operating activities for Q1 '24 was $101 million, a significant decrease from $1,899 million in 2023[68] - Capital expenditures on property, plant, and equipment for Q1 '24 were $(137) million, down from $(568) million in 2023[68] - The company experienced a net cash used in financing activities of $(259) million in Q1 '24, a decrease from $(1,456) million in 2023[68] Earnings and Taxation - Net earnings attributable to Celanese Corporation for Q1 '24 were $121 million, compared to $1,960 million for the full year 2023[37] - Income tax provision for Q1 '24 was $33 million, contrasting with a benefit of $(790) million for the full year 2023[37] - The adjusted effective tax rate for Q1 '24 was 9%, consistent with the rate for 2023[43] - The company continues to analyze and adjust its tax rate for adjusted earnings per share based on quarterly evaluations of forecasted tax rates[36] - Adjusted earnings from continuing operations for Q1 '24 were $228 million, or $2.08 per share, compared to $976 million, or $8.92 per share in Q4 '23[41] Debt and Capital Structure - Total depreciation and amortization expense for the quarter was $221 million, compared to $706 million in the previous period[19] - The company reported total debt of $13.457 billion in Q1 '24, down from $13.684 billion in 2023[50] - The company’s net debt stood at $11.974 billion in Q1 '24, slightly up from $11.879 billion in 2023[50] - Net debt is defined as total debt less cash and cash equivalents, providing insights into the company's capital structure[33] Non-GAAP Measures and Management Insights - The company emphasized the importance of non-GAAP financial measures for assessing financial and operating results, which should not be viewed in isolation[4] - Management noted the inherent limitations of non-GAAP measures, particularly in forecasting future results due to the unpredictability of Certain Items[8] - Cash dividends received from equity investments were highlighted as supplemental information of interest to investors[13] - The company plans to update the reconciliation of the GAAP effective tax rate to the adjusted tax rate for actual results at year-end[10] - The return on invested capital (adjusted) is calculated using adjusted EBIT tax-effected, providing insights into income generation for shareholders[12] - Return on invested capital (adjusted) for the company was 9.5%[79] - The company reported a free cash flow as a percentage of net sales of (1.5)% for Q1 '24, compared to 12.1% for the full year 2023[68] - The adjusted EBIT for Q1 '24 was $1.753 billion, with an adjusted EBIT tax effect of $1.595 billion[53] Future Outlook - The company plans to maintain its focus on market expansion and new product development in the upcoming quarters[41] - The company experienced a 2% increase in total company sales volume in Q1 '24 compared to Q4 '23[63]

Celanese Corporation (CE) is scheduled to release first-quarter 2024 results after the closing bell on May 8.The company surpassed Zacks Consensus Estimate for earnings in two of the last four quarters and missed twice, with the average being 5.2%.The company is expected to have benefited from cost-cutting and efficiency initiatives, as well as investments in high-return organic projects and acquisition synergies in the quarter to be reported. However, it is likely to have been challenged by issues such as ...

Wall Street expects a year-over-year decline in earnings on lower revenues when Celanese (CE) reports results for the quarter ended March 2024. While this widely-known consensus outlook is important in gauging the company's earnings picture, a powerful factor that could impact its near-term stock price is how the actual results compare to these estimates.The stock might move higher if these key numbers top expectations in the upcoming earnings report, which is expected to be released on May 8. On the other ...