While companies who rank among the earnings losers category don’t obviously generate confidence, it’s also important to keep in mind the big picture. Technology juggernaut Nvidia (NASDAQ:NVDA) provides an extreme example of this.In the third quarter of 2023, Nvidia posted earnings per share of 58 cents. This tally represented a stinker against the estimated EPS target of 70 cents. The company took it personally. Since then, the company has been beating its targets, continuing to impress onlookers up until t ...

Financial Performance - Sales originating in Europe accounted for approximately 32% of the company's net sales in 2023, highlighting the region's significance to overall financial performance[10] - The company has invested significantly in China and other Asian countries, but potential slowdowns in growth or trade flows could adversely impact financial results[9] - The company is exposed to volatility in raw material prices, which can significantly affect product margins and overall financial results[11] - The company relies on long-term supply agreements for key raw materials, but prices can vary with economic conditions, leading to potential cost pressures[15] - The company has faced supply disruptions and increased input costs, which have impacted operating costs and financial results[14] - The closure of the Polyamide 66 and High-Performance Nylon polymerization units in Germany resulted in charges during fiscal 2023 and is expected to incur additional charges in fiscal 2024[39] - The company has incurred a $92 million settlement related to a competition law investigation by the European Commission, highlighting regulatory risks[54] - Changes in environmental regulations could lead to increased costs and potential liabilities, negatively impacting operating results[59] - The company faces potential product liability and warranty claims, which could result in substantial unexpected expenditures[62] - The M&M Acquisition has increased exposure to complex non-U.S. laws and regulations, potentially affecting financial condition and strategic objectives[61] Supply Chain and Production - The company maintains multiple sources of supply for raw materials, but reliance on single sources for certain materials poses risks to production continuity[18] - The company has experienced production disruptions in the past due to natural disasters and other unforeseen events, which have negatively impacted sales and financial performance[22] - The company is focused on developing new products and improving production technologies, with the success of these initiatives critical to maintaining competitive positioning[27] Debt and Liquidity - The company incurred approximately $11.0 billion of indebtedness to finance the M&M Acquisition, bringing total outstanding indebtedness to $13.7 billion as of December 31, 2023, compared to $14.7 billion at the end of 2022[102] - The increased indebtedness has significantly raised the cash required to pay interest, impacting cash resources[102] - The company plans to allocate capital to repay and reduce outstanding debt using cash from operations and proceeds from asset sales[104] - The company may face substantial liquidity problems if cash flows and capital resources are insufficient to meet debt obligations, potentially leading to asset disposals[107] - Restrictive covenants in debt agreements may limit the company's ability to engage in certain transactions, affecting its capacity to pay debts or dividends[108] - Breaching covenants could result in defaults, allowing lenders to accelerate debt repayment, which may lead to bankruptcy or liquidation if liquidity is insufficient[113] - The company's credit ratings are subject to change, which could increase corporate borrowing costs and affect the market value of its securities[114] - The principal source of cash for the company to meet obligations is generated from its subsidiaries, which may face limitations in distributing cash due to legal and regulatory constraints[116] Regulatory and Compliance Risks - The company is subject to various legal and regulatory proceedings that could materially impact financial results[85] - Future effective tax rates may be affected by changes in tax legislation, particularly with the implementation of a 15% global minimum tax starting in 2024[87] - The company is under audit for tax years 2013 through 2015, which could lead to adjustments impacting financial condition[89] - Increased scrutiny from stakeholders regarding sustainability practices could negatively impact the company's reputation and operations[84] - The company has set goals related to sustainability, including GHG intensity reduction targets, but achieving these goals is subject to various risks[76] - Compliance with evolving GHG emissions regulations may significantly increase operational costs and require additional capital investments[72] - The company is subject to evolving cybersecurity threats that could materially affect business operations and financial results[48] Accounting and Financial Estimates - The company assesses the recoverability of goodwill and indefinite-lived intangible assets annually, with key assumptions including discount rates and growth rates[441] - Changes in pension assumptions could significantly impact net periodic benefit costs and projected benefit obligations, with a 0.5% decrease in the discount rate affecting U.S. pension benefits by $(6) million and increasing projected obligations by $84 million[449] - The recoverability of deferred tax assets is subject to management judgment, and changes in estimates could impact earnings or other comprehensive income[450] - The company regularly reviews deferred tax assets for recoverability and establishes valuation allowances as needed[449] - The company’s financial statements are based on significant accounting policies that require management to make estimates and assumptions, which could differ from actual results[434]

Financial Data and Key Metrics - The company expects a significant uplift in M&M earnings in Q1 2024, with Q1 anticipated to be the highest quarterly EBITDA since the acquisition [13] - Synergies for 2024 are expected to be $150 million, with 40% showing up in M&M and the majority in the EM profile [17] - The company achieved $100 million in synergies in 2023, slightly lower than earlier expectations due to volume-related issues [75] - The foundational level of earnings in acetyls is $1.3 billion, with an expected increase of $100 million in 2024 due to productivity from the Clear Lake expansion [85] Business Line Data and Key Metrics - The M&M business is expected to see recovery in auto versus seasonal destocking experienced in Q4 2023, with initial fixed cost improvements becoming more meaningful in the second half of 2024 [38] - The nylon business is seeing stability and expanding margins, with efforts to recover lost volume share [70] - The acetate tow business exceeded its $245 million EBIT target in 2023, contributing to the stabilization of the acetyl chain [77] Market Data and Key Metrics - In China, demand for consumption is approaching normal levels, but exports to Europe remain depressed [30] - In the Americas, demand is gradually returning, with improvement in industrial sectors but seasonal destocking in auto [30] - Europe is expected to take longer to return to normal demand patterns, with some improvement in construction and VAM pricing [32] Company Strategy and Industry Competition - The company is focused on controlling controllable factors, with a $11 to $12 guide assuming diminishing destocking but not a significant uptick in demand [31] - The SAP integration was completed smoothly, with the last version going live on February 1, 2024, marking a significant step in achieving synergies [16][40] - The company is committed to deleveraging to a 3x target, with a focus on free cash flow generation and maintaining investment grade [91][95] Management Commentary on Operating Environment and Future Outlook - Management is confident in delivering $150 million in synergies for 2024, driven by footprint optimization, SAP integration, and cross-sell opportunities [72] - The company expects a meaningful lift in M&M earnings in Q1 2024, driven by lower raw material and fixed costs [13] - The outlook for 2024 assumes below-normal demand patterns but without destocking, with a focus on controllable factors [31] Other Important Information - The company completed its SAP integration, which is expected to help achieve the next level of synergy and improve operational efficiency [40] - The Clear Lake acetic acid expansion is expected to contribute $100 million in productivity, with potential for higher returns in periods of high demand [55] - The company is focused on creating a business model for nylon that delivers a minimum of 25% EBITDA in any economic environment [102] Q&A Session Summary Question: What are the expectations for the M&M business in 2024? - The company expects recovery in auto and initial fixed cost improvements, with more meaningful impacts in the second half of 2024 [38] Question: How is the SAP integration progressing? - The SAP integration was completed smoothly, with the last version going live on February 1, 2024, and is expected to help achieve synergies [16][40] Question: What is the outlook for raw material costs in 2024? - The company is focused on controlling controllable factors, with lower raw material costs expected to flow through earnings [41] Question: What are the expectations for auto builds in 2024? - The company expects auto builds to be flattish, with its business growing 150 to 200 basis points above industry builds [80] Question: What is the impact of the Red Sea disruptions on the company? - The company has not seen significant impacts from the Red Sea disruptions, with its global supply chain providing flexibility [110] Question: What is the long-run EBITDA potential for the Clear Lake acetic acid expansion? - The Clear Lake expansion is expected to contribute $100 million in productivity, with potential for higher returns in periods of high demand [55]

Celanese Corporation (CE) reported fourth-quarter 2023 earnings from continuing operations of $6.43 per share, down 8.5% from $7.03 reported in the prior-year quarter.Adjusted earnings in the fourth quarter were $2.24 per share, up from $1.44 reported in the prior year. It lagged the Zacks Consensus Estimate of $2.29.Revenues of $2,569 million increased roughly 9.4% year over year but missed the Zacks Consensus Estimate of $2,610.6 million.Segment HighlightsNet sales in the Engineered Materials unit were $1 ...

Celanese (CE) reported $2.57 billion in revenue for the quarter ended December 2023, representing a year-over-year increase of 9.4%. EPS of $2.24 for the same period compares to $1.44 a year ago.The reported revenue represents a surprise of -1.59% over the Zacks Consensus Estimate of $2.61 billion. With the consensus EPS estimate being $2.29, the EPS surprise was -2.18%.While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street exp ...

Celanese (CE) came out with quarterly earnings of $2.24 per share, missing the Zacks Consensus Estimate of $2.29 per share. This compares to earnings of $1.44 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of -2.18%. A quarter ago, it was expected that this chemical company would post earnings of $2.20 per share when it actually produced earnings of $2.50, delivering a surprise of 13.64%.Over the last four quarters, the company ...

Analysts on Wall Street project that Celanese (CE) will announce quarterly earnings of $2.29 per share in its forthcoming report, representing an increase of 59% year over year. Revenues are projected to reach $2.61 billion, increasing 11.2% from the same quarter last year.Over the past 30 days, the consensus EPS estimate for the quarter has remained unchanged. This demonstrates the covering analysts' collective reassessment of their initial projections during this period.Before a company reveals its earnin ...

Celanese (CE) is expected to deliver a year-over-year increase in earnings on higher revenues when it reports results for the quarter ended December 2023. This widely-known consensus outlook gives a good sense of the company's earnings picture, but how the actual results compare to these estimates is a powerful factor that could impact its near-term stock price.The stock might move higher if these key numbers top expectations in the upcoming earnings report, which is expected to be released on February 20. ...

Celanese Corporation (CE) stated that the U.S. Department of Energy ("DOE")'s Office of Fossil Energy and Carbon Management has approved it as a Utilization Procurement Grants (UP Grants) vendor. Celanese is currently the only producer of low-carbon acetic acid under the ECO-CC product name, enabling the company to assist municipalities in meeting the growing need for more sustainable and circular solutions.As the U.S. economy transitions to a lower carbon future, the DOE is working with states, local gover ...

DALLAS--(BUSINESS WIRE)--Celanese Corporation (NYSE: CE), a global specialty materials and chemical company, announced it has been approved by the U.S. Department of Energy (DOE)’s Office of Fossil Energy and Carbon Management as a Utilization Procurement Grants (UPGrants) vendor. Celanese is now the only producer offering low-carbon acetic acid under the ECO-CC product name, which positions the company to help municipalities meet the growing demand for more sustainable and circular solutions. As the U.S ...