Financial Data and Key Metrics Changes - The company executed over $75 million worth of cost actions as outlined in the previous earnings call [8] - The 2025 capital plan has been reduced to $300 to $350 million, a decrease of approximately $100 million compared to the previous year [9] - Free cash flow for 2025 is expected to improve significantly year over year, with working capital shifting from a cash use to a cash source [27][28] Business Line Data and Key Metrics Changes - The Engineered Materials business has a new leader, Todd Elliott, aimed at reducing complexity and improving results [9] - The company has achieved $250 million in synergies from the M&M acquisition, but margin degradation has been observed in some product lines [35][36] Market Data and Key Metrics Changes - The company is experiencing a rebalancing of inventory levels across the value chain, with expectations for improvement in the first quarter [68] - The acetyl business is operating below the cost curve, which is not sustainable, and the company is looking for opportunities to leverage its optionality model [75] Company Strategy and Development Direction - The company is focused on cash generation, margin expansion, productivity, and deleveraging, with a finance and business review committee established to evaluate options for improving operating model performance [10] - The company is actively pursuing divestitures of non-core assets to facilitate deleveraging [59][115] Management's Comments on Operating Environment and Future Outlook - Management acknowledges the challenges ahead but is energized by the opportunities, emphasizing a focus on decisive actions to drive value creation [11] - The company is not expecting significant changes in the supply-demand landscape despite new capacity coming online [75] Other Important Information - The company has reduced its footprint by eight sites since the M&M acquisition and continues to seek efficiency improvements [63] - The company is committed to maintaining a strong technical capability in its manufacturing footprint, particularly in the context of electric vehicle applications [100] Q&A Session Summary Question: Potential size and timing of divestitures - Management indicated that divestitures are being pursued aggressively, with sizes comparable to previous transactions, some smaller and some larger [14] Question: Thoughts on raising equity to help deleverage - Management stated that equity is extremely dilutive and not necessary given the strength of the debt market and ongoing cash generation efforts [16] Question: Outlook for the first half of the year - Management acknowledged that the second quarter is expected to improve but emphasized the need for transparency regarding current conditions [24] Question: Status of the M&M acquisition and EBITDA - Management confirmed that EBITDA has increased since the acquisition, but margin degradation has been observed in some product lines [35] Question: Confidence in the acetyl business amidst new capacity - Management expressed confidence that the supply-demand landscape will not significantly change, despite new capacity coming online [75] Question: Changes in divestiture strategy - Management clarified that they are evaluating all non-core assets for potential divestiture, focusing on those that do not fit the core operating model [59][115] Question: Impact of inventory reduction on EBITDA - Management indicated that the impact of deliberate inventory reduction in EM is not expected to be substantial [82] Question: Future opportunities in China - Management highlighted ongoing opportunities in China, particularly in electric vehicles, and emphasized the importance of maintaining focus in that market [130]

Core Viewpoint - Celanese Corporation reported a significant loss in the fourth quarter of 2024, contrasting sharply with the previous year's earnings, indicating ongoing challenges in demand and pricing across key markets [1][5]. Financial Performance - The loss from continuing operations was $17.45 per share, compared to earnings of $6.43 in the same quarter last year [1]. - Adjusted earnings were $1.45 per share, down from $2.24 a year ago, but exceeded the Zacks Consensus Estimate of $1.20 [1]. - Revenues for the quarter were $2,370 million, reflecting an 8% year-over-year decline, yet surpassing the Zacks Consensus Estimate of $2,300 million [2]. - For the full year 2024, the reported loss was $13.86 per share, compared to earnings of $18 per share in the previous year, with net sales decreasing by approximately 6% to $10.3 billion [5]. Segment Performance - The Engineered Materials unit reported net sales of $1,281 million, down around 9% year over year, with an operating loss of $1,508 million compared to a profit of $122 million a year ago [4]. - The Acetyl Chain segment had net sales of $1,110 million, down about 6% year over year, but generated an operating profit of $216 million, down from $264 million a year ago [4]. Cash Flow and Debt - Celanese ended the quarter with cash and cash equivalents of $962 million, a decrease of roughly 47% year over year [6]. - Long-term debt was reduced by around 10% year over year to $11,078 million [6]. - Cash provided by operating activities was $966 million, with free cash flow amounting to $498 million in 2024 [6]. Market Outlook - The company anticipates that the demand and pricing challenges experienced in the fourth quarter will continue into the first quarter of 2025, particularly in core end-markets such as automotive and construction [7]. - First-quarter earnings per share are expected to be in the range of 25 to 50 cents, factoring in non-recurring costs [8]. Stock Performance - Celanese's shares have declined by 53.7% over the past year, significantly underperforming the Zacks Chemicals Specialty industry's decline of 17.8% [9].

For the quarter ended December 2024, Celanese (CE) reported revenue of $2.37 billion, down 7.8% over the same period last year. EPS came in at $1.45, compared to $2.24 in the year-ago quarter.The reported revenue represents a surprise of +3.03% over the Zacks Consensus Estimate of $2.3 billion. With the consensus EPS estimate being $1.20, the EPS surprise was +20.83%.While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street expect ...

Core Insights - Celanese reported quarterly earnings of $1.45 per share, exceeding the Zacks Consensus Estimate of $1.20 per share, but down from $2.24 per share a year ago, indicating a 35.2% year-over-year decline [1] - The company achieved revenues of $2.37 billion for the quarter, surpassing the Zacks Consensus Estimate by 3.03%, but down from $2.57 billion in the same quarter last year [2] - Celanese's stock has underperformed the market, losing approximately 1.7% year-to-date compared to the S&P 500's gain of 4% [3] Earnings Performance - The earnings surprise for the recent quarter was 20.83%, while the previous quarter saw a negative surprise of -14.08% [1][2] - Over the last four quarters, Celanese has surpassed consensus EPS estimates two times [2] Future Outlook - The current consensus EPS estimate for the upcoming quarter is $1.87 on revenues of $2.48 billion, and for the current fiscal year, it is $8.79 on revenues of $10.21 billion [7] - The estimate revisions trend for Celanese is currently unfavorable, resulting in a Zacks Rank 5 (Strong Sell), indicating expected underperformance in the near future [6] Industry Context - The Chemical - Specialty industry, to which Celanese belongs, is currently ranked in the bottom 21% of over 250 Zacks industries, suggesting potential challenges ahead [8] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, which could impact Celanese's stock performance [5]

Financial Performance - Celanese Corporation's adjusted EBIT is a key performance measure, providing transparency in evaluating operating results after removing unusual activities[11]. - The company reported a free cash flow measure, defined as net cash provided by operations less capital expenditures, indicating long-term cash generating ability[14]. - Net debt is defined as total debt less cash and cash equivalents, offering insights into the company's capital structure and credit quality[14]. - Operating EBITDA is calculated by adding depreciation and amortization to adjusted EBIT, providing a clearer view of operating performance[11]. - The adjusted earnings per share metric is used to assess primary operating results, excluding certain items that affect comparability[11]. - The adjusted EBIT margin is defined as adjusted EBIT divided by net sales, reflecting operational efficiency[11]. - Return on invested capital (adjusted) is calculated using adjusted EBIT tax-effected, assessing income generation from shareholders' and creditors' perspectives[14]. - The document includes reconciliations of non-GAAP financial measures to GAAP measures, ensuring clarity for investors[7]. - Celanese reported a net loss of $1,522 million in Q4 2024, compared to a net income of $1,960 million in 2023[15]. - Adjusted EBIT for Q4 2024 was $333 million, a decrease from $1,753 million in Q4 2023, reflecting a significant decline in profitability[17]. - Operating EBITDA for Q4 2024 was $517 million, down from $608 million in Q4 2023, indicating a 15% year-over-year decline[15]. - Adjusted earnings from continuing operations for Q4 '24 were $(1,514) million, translating to $(13.86) per share[21]. - The company experienced a loss from continuing operations before tax of $(1,004) million in 2024[21]. - Celanese Corporation reported a net loss of $1,522 million for 2024, compared to a net earnings of $1,960 million in 2023[44]. - Adjusted EBIT for 2024 was $1,648 million, slightly down from $1,753 million in 2023[44]. Segment Performance - The company segments its operations into Engineered Materials and the Acetyl Chain, with specific financial measures for each segment[4]. - The Engineered Materials segment reported an operating loss of $1,179 million in Q4 2024, with an operating margin of -21.0%[17]. - The Acetyl Chain segment achieved an operating profit of $951 million in Q4 2024, with a margin of 20.0%[17]. - Engineered Materials segment reported net sales of $5,607 million for 2024, with Q4 '24 sales at $1,281 million[24]. - Acetyl Chain segment achieved net sales of $4,763 million for 2024, with Q4 '24 sales at $1,110 million[24]. - Operating EBITDA for Engineered Materials was $1,296 million in 2024, with a margin of 23.1%[19]. - Operating EBITDA for Acetyl Chain was $1,346 million in 2024, with a margin of 28.3%[19]. - Engineered Materials segment net sales decreased by 14% sequentially due to a 10% drop in volume and a 3% decline in price for the three months ended December 31, 2024[26]. - The Acetyl Chain segment experienced a 7% decrease in total sales sequentially, attributed to a 4% decline in volume and a 2% drop in price[26]. - Year-over-year, the Engineered Materials segment saw a 9% decrease in total sales for the three months ended December 31, 2024[33]. Cash Flow and Capital Expenditures - Free cash flow for Q4 2024 was $173 million, representing 6.5% of net sales of $2,651 million[39]. - The company reported a 1% increase in cash provided by operating activities for Q4 2024, totaling $292 million[39]. - Capital expenditures on property, plant, and equipment for Q4 2024 were $105 million, contributing to a total of $435 million for the year[39]. Debt and Equity - Net debt as of Q4 2024 was $11,617 million, a decrease from $12,118 million in Q3 2024[42]. - Celanese's long-term debt decreased to $11,078 million in 2024 from $12,301 million in 2023[44]. - Celanese's shareholders' equity decreased to $5,175 million in 2024 from $7,091 million in 2023[44]. Outlook and Strategic Initiatives - The company provided an outlook indicating a focus on cost management and operational efficiency to navigate market challenges[17]. - Celanese's total revenue for Q4 2024 was significantly impacted by lower demand across key markets, leading to a strategic review of its product offerings[17]. - The company is exploring potential acquisitions and partnerships to enhance its market position and drive future growth[17]. Other Financial Metrics - Total depreciation and amortization expense for Q4 2024 was $185 million, compared to $189 million in Q4 2023[15]. - Celanese's interest expense increased to $676 million in Q4 2024, up from $720 million in 2023[15]. - Depreciation and amortization expense totaled $728 million for 2024, with Q4 '24 at $184 million[19]. - The company incurred exit and shutdown costs totaling $236 million in Q4 2024, with a total of $2,009 million for the year[43]. - Asset impairments amounted to $1,638 million in 2024, with significant impacts in Q3 2024[43]. - The company faced legal settlements and commercial disputes costs of $8 million in Q4 2024[43]. - The company reported an adjusted effective tax rate of 9% for both 2024 and 2023[22]. - The adjusted effective tax rate remained stable at 9% for both 2024 and 2023[44].

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Celanese Corporation Is Being Investigated For Securities Law Violations And Affected Shareholders Are Urged To Contact The Schall Law Firm ...

The Schall Law Firm Invites Investors With Losses To Join An Inquiry Into Celanese Corporation For Securities Fraud ...

NEW YORK, Jan. 15, 2025 /PRNewswire/ -- Why: Rosen Law Firm, a global investor rights law firm, announces an investigation of potential securities claims on behalf of shareholders of Celanese Corporation (NYSE: CE) resulting from allegations that Celanese may have issued materially misleading business information to the investing public.So What: If you purchased Celanese securities you may be entitled to compensation without payment of any out of pocket fees or costs through a contingency fee arrangement. T ...