Acquisition and Joint Ventures - Celanese completed the acquisition of DuPont's Mobility & Materials business for a purchase price of $11.0 billion, enhancing its portfolio in engineering thermoplastics and elastomers [29]. - In September 2023, Celanese formed a food ingredients joint venture with Mitsui, retaining a 30% interest while Mitsui acquired 70% for $503 million [30]. - The company formed a food ingredients joint venture named Nutrinova with Mitsui in September 2023 [58]. - The company has a 30% ownership in Nutrinova Netherlands B.V., which produces food safety and shelf-life improvement products [64]. Business Segments and Operations - Celanese operates through two main business segments: Engineered Materials and the Acetyl Chain, focusing on high-performance engineered polymers and acetyl products [19]. - The Engineered Materials segment leverages a project pipeline model to commercialize new projects rapidly, driven by customer engagement and market trends [22][23]. - The Acetyl Chain segment includes acetic acid, VAM, acetic anhydride, and acetate esters, serving diverse applications in paints, adhesives, and pharmaceuticals [39]. - The company has a global production network with sites in Belgium, Canada, China, Germany, Mexico, the Netherlands, Singapore, Sweden, Switzerland, and the U.S., positioning it as a leader in the acetyls market [41]. - The emulsion polymers business produces vinyl acetate-based emulsions for applications such as paints, adhesives, and textiles, with high demand in Europe and Asia [49]. - The EVA polymers business is a leading North American manufacturer of specialty EVA resins, used in flexible packaging films and automotive parts [41]. Financial Performance and Investments - In 2024, the equity method strategic affiliates generated combined sales of $2.2 billion, resulting in $149 million of equity in net earnings and $130 million of dividends recorded by the company [61]. - The company received cash dividends of $127 million, $125 million, and $132 million from its Acetyl Chain ventures in 2024, 2023, and 2022, respectively [68]. - The company is focused on developing products to help customers meet sustainability goals, including those for building materials and electric vehicles [77]. - The company has invested in projects to increase energy efficiency and renewable energy usage, including a carbon dioxide capture project in Texas [76]. Workforce and Safety - The company employs 12,163 people worldwide and has 56 global production facilities, with operations primarily in North America, Europe, and Asia [18]. - As of December 31, 2024, the total global workforce consists of 12,163 employees, with 4,948 in North America, 4,205 in Europe, 2,889 in Asia, and 121 in the Rest of the World [81]. - The attrition rate for global employees is 9.1%, with women at 9.3% and people of color in the U.S. at 10.8% [82]. - In 2024, the company achieved a Total Recordable Incident Rate (TRIR) of 0.15 and a Lost Time Incident Rate (LTIR) of 0.02, reflecting world-class safety performance [86]. Market Trends and Challenges - The company’s broad marketplace presence reflects its understanding of global trends, including the demand for lightweight vehicles and improved health and wellness solutions [24]. - Approximately 31% of net sales in 2024 originated from Europe, which historically accounts for about one-third of annual net sales [96]. - The company has significant operations in China and other Asian countries, with potential risks of slowing growth impacting financial results [95]. - The company has experienced supply disruptions and increased costs of inputs, which have affected operating costs and may continue to do so [100]. Risks and Regulatory Environment - The company is exposed to credit risks associated with suppliers and customers, particularly in cyclical industries, which may adversely affect cash flow and profitability [119]. - The company is subject to evolving environmental regulations that may increase operational costs and impact demand for its products [139]. - The company anticipates that the EPA will develop a draft risk management plan for formaldehyde, which could affect product classification and demand [140]. - The company is involved in various legal and regulatory proceedings that could materially affect its business and financial condition [150]. Financial Strategy and Debt Management - As of December 31, 2024, the company's total debt was $12.6 billion, with plans to continue borrowing additional debt if necessary [165]. - The company announced an intent to reduce its quarterly dividend by approximately 95% starting in the first quarter of 2025 [165]. - The company has paused its share repurchase program as part of its deleveraging efforts [165]. - The company is currently evaluating additional cash generation or conservation opportunities following the pause of its share repurchase program [130]. Impairments and Financial Adjustments - The company recorded a non-cash goodwill impairment loss of $1.5 billion in the Engineered Materials segment as of December 31, 2024, with goodwill in that segment totaling $5.0 billion [287]. - An interim impairment test of indefinite-lived intangible assets resulted in a non-cash impairment loss of $83 million, primarily related to certain trade names in the Engineered Materials segment [288]. - The company has recognized aggregate non-cash impairment losses of $117 million for the year ended December 31, 2024, primarily related to certain trade names in the Engineered Materials segment [118]. Cybersecurity and Operational Risks - Cybersecurity threats pose significant risks to the company's information and operational technology systems, especially as it integrates the M&M Business's technology environment [126]. - Disruptions in production at manufacturing facilities or suppliers could materially affect the company's ability to meet customer demands [104]. - The company maintains insurance coverage for operational risks, but acknowledges that it may not fully cover all potential liabilities, including environmental remediation [121].

Shares in chemicals and specialty materials company Celanese (CE 0.22%) slumped by 22.7% in the week to Friday morning. The move follows a disappointing set of fourth-quarter earnings released on Tuesday. In addition, investors were left unimpressed by management's guidance for 2025.Celanese disappoints the marketChemical companies are often highly cyclical. Weak demand conditions can lead to volume deterioration and a pricing slump, rapidly reducing earnings.That's pretty much what happened with Celanese i ...

2025 Key Actions February 2025 Disclosures Forward-Looking Statements This presentation may contain "forward-looking statements," which include information concerning Celanese Corporation's (the "Company") plans objectives, goals, strategies, future revenues, cash flow, financial performance, synergies, capital expenditures, deleveraging efforts, dividend policy, financing needs and other information that is not historical information. All forward-looking statements are based upon current expectations and b ...

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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