Financial Performance - In Q2 2024, net earnings attributable to Celanese Corporation were $155 million, an increase from $121 million in Q1 2024[19] - Adjusted EBIT for Q2 2024 was $451 million, compared to $407 million in Q1 2024, reflecting a strong operational performance[19] - Operating EBITDA for Q2 2024 reached $632 million, up from $583 million in Q1 2024, indicating improved cash flow generation[19] - The adjusted earnings per share for Q2 2024 was $2.50, reflecting a solid increase compared to $2.20 in Q1 2024[19] - The adjusted EBIT margin for Q2 2024 was 22.5%, indicating effective cost management and pricing strategies[19] - The company reported net earnings attributable to Celanese Corporation of $252 million with a margin of 9.5% in Q2 '24, compared to $207 million and 7.9% in Q1 '24[22] - Adjusted earnings from continuing operations for Q2 '24 were $261 million, or $2.38 per share, compared to $228 million, or $2.08 per share in Q1 '24[26] - The effective tax rate for Q2 '24 was 9%, consistent with Q1 '24, and significantly lower than the 12% rate in Q2 '23[27] - The adjusted earnings before tax for Q2 '24 was $287 million, compared to $251 million in Q1 '24, indicating improved operational performance[26] Sales and Revenue - Celanese Corporation's total net sales for Q2 2024 were $2.0 billion, with a year-over-year increase of 10% attributed to higher pricing and volume[16] - Net sales for Q2 '24 reached $2.651 billion, a slight increase from $2.611 billion in Q1 '24, with Engineered Materials contributing $1.467 billion and Acetyl Chain contributing $1.202 billion[32] - Year-over-year, total company net sales decreased by 5%, driven by a 7% decline in Engineered Materials and a 3% decline in Acetyl Chain[37] - The company reported a sequential increase in volume of 4% for total company sales, primarily due to Engineered Materials, which saw a 6% increase[33] - The Acetyl Chain segment experienced a 5% sequential decline in net sales, attributed to a decrease in volume and pricing pressures[33] - Engineered Materials segment reported a volume decrease of 8% and a price decrease of 15%, resulting in a total revenue of $67 million for Q2 2023[39] - Acetyl Chain segment experienced a volume decrease of 2% and a price decrease of 19%, leading to a total revenue decline of $21 million for Q2 2023[39] - Total company revenue for Q2 2023 was $12 million, reflecting a volume increase of 27% but a price decrease of 15% compared to Q2 2022[39] Cash Flow and Debt - Free cash flow for the year was reported at $1.2 billion, demonstrating the company's strong liquidity position[14] - Free cash flow for Q2 2024 was $173 million, representing 6.5% of net sales, compared to a negative free cash flow of $40 million in Q1 2024[42] - The company reported a total debt of $3.5 billion, with net debt calculated at $3.2 billion after accounting for cash and cash equivalents[15] - Net debt as of Q2 2024 was $11,850 million, a decrease from $11,974 million in Q1 2024[45] - Total dividends received in Q2 2024 amounted to $100 million, up from $61 million in Q1 2024[44] Segment Performance - Engineered Materials segment reported an operating profit of $138 million with a margin of 9.4% in Q2 '24, compared to $89 million and 6.5% in Q1 '24[22] - Acetyl Chain segment achieved an operating profit of $242 million with a margin of 20.1% in Q2 '24, consistent with Q1 '24[22] - Total operating profit for the company was $250 million with a margin of 9.4% in Q2 '24, up from $210 million and 8.0% in Q1 '24[22] - Adjusted EBIT for Engineered Materials was $265 million, representing an 18.1% margin in Q2 '24, compared to $201 million and 14.6% in Q1 '24[24] - Adjusted EBIT for Acetyl Chain was $277 million with a 23.0% margin in Q2 '24, down from $296 million and 23.5% in Q1 '24[24] - The Engineered Materials segment's operating EBITDA was $375 million with a margin of 25.6% in Q2 '24, compared to $303 million and 22.0% in Q1 '24[24] - The Acetyl Chain segment's operating EBITDA was $338 million with a margin of 28.1% in Q2 '24, down from $353 million and 28.0% in Q1 '24[24] Strategic Initiatives - The company plans to expand its market presence in Asia, focusing on increasing production capacity in the region[16] - Ongoing investments in new technologies and product development are expected to drive future growth and enhance competitive positioning[16] - The company plans to continue focusing on market expansion and new product development to drive future growth[26] - The company is actively pursuing strategic initiatives, including potential acquisitions, to enhance its market position and operational capabilities[26] Depreciation and Other Expenses - Total depreciation and amortization expense was $192 million in Q2 '24, compared to $221 million in Q1 '24[20] - Certain items attributable to Celanese Corporation included exit and shutdown costs of $69 million in Q2 2024[46] Return on Investment - Adjusted EBIT for 2023 was $1,753 million, with an adjusted effective tax rate of 9%[49] - Return on invested capital (adjusted) for 2023 was 7.8%, with net earnings attributable to Celanese Corporation at 9.5% of invested capital[50]

Mergers and Acquisitions Activity - Mergers and acquisitions (M&A) activity increased by 17% worldwide in the first half of 2024, with 90% of the largest deals involving U.S. targets [1] - Almost half of the top 10 deals in 2024 were stock transactions rather than cash payments, attributed to higher interest rates and healthy stock prices [1] Celanese (CE) - Celanese is the 83rd smallest company in the S&P 500 with a market capitalization of $15.15 billion and its stock is down over 10% year-to-date [2] - The company reported Q1 2024 sales of $2.61 billion, an 8.4% decline from $2.85 billion a year earlier, and an operating income of $210 million, down 16.3% from $251 million [3] - Celanese's stock is valued at 12.35 times its forward 2024 earnings, with a price-to-sales ratio of 1.42, below its five-year average of 1.74, making it a potential acquisition target for larger companies like Dow or DuPont [4] Pinterest (PINS) - Pinterest has a market capitalization of $25.78 billion and its stock is up 4% year-to-date [5] - Meta Platforms could be a potential buyer for Pinterest, as it seeks to improve its reputation in social media [5][6] - Pinterest's Q2 2024 results showed a 12% increase in monthly average users to 522 million and a 21% revenue increase to $853.7 million, despite a market reaction to weak guidance [7][8] E.L.F. Beauty (ELF) - E.L.F. Beauty has a market capitalization of $9.40 billion and its stock is up 20% year-to-date, although it is down nearly 25% from its 52-week high [9] - Estee Lauder, with a market cap 3.7 times that of ELF, could be a potential acquirer as it seeks to recover from a significant decline in value [9] - Estee Lauder announced layoffs of 3-5% of its global workforce, which could lead to a nearly 40% increase in operating profits post-restructuring [10]

Over the last 30 days, there has been a downward revision of 2.2% in the consensus EPS estimate for the quarter, leading to its current level. This signifies the covering analysts' collective reconsideration of their initial forecasts over the course of this timeframe. In light of this perspective, let's dive into the average estimates of certain Celanese metrics that are commonly tracked and forecasted by Wall Street analysts. It is projected by analysts that the 'Operating EBITDA- Acetyl Chain' will reach ...

Celanese Corporation (CE) is scheduled to release second-quarter 2024 results after the closing bell on Aug 1. Image Source: Zacks Investment Research The Zacks Consensus Estimate for sales for the to-be-reported quarter is currently pegged at $2,725.7 million, which implies a decline of 2.5% from the year-ago reported number. Celanese's strategic acquisitions, productivity initiatives and investments in organic projects are expected to have aided its earnings in the second quarter. The company is taking st ...

Core Viewpoint - Celanese Corporation is positioned to benefit from high-return organic projects, cost and productivity initiatives, and synergies from acquisitions, despite facing challenges from weak demand in certain markets and pricing pressures [1][10]. Group 1: Strategic Acquisitions and Growth - The acquisition of DuPont's Mobility & Materials business is expected to enhance growth in high-value applications, with anticipated synergies of at least $150 million in 2024 [3]. - Additional acquisitions, including SO.F.TER., Nilit, Omni Plastics, and Exxon Mobil's Santoprene business, are expected to contribute to earnings expansion and broaden the company's portfolio in engineered solutions [8]. Group 2: Financial Performance and Shareholder Value - Celanese generated a record operating cash flow of $1.9 billion and free cash flow of $1.3 billion in 2023, returning $305 million to shareholders through dividends [5]. - The company reduced its net debt by $1.3 billion in 2023 and plans to continue this trend, expecting to repay over $2 billion in total debt maturities over the next four quarters [5]. Group 3: Market Challenges - The company is experiencing weak demand in several end markets, particularly in industrial and consumer goods, leading to inventory reductions and order deferrals [10]. - Competitive pressures are impacting pricing, with lower prices observed across segments in the first quarter, and expectations of continued pricing pressure into the second quarter of 2024 [11]. Group 4: Productivity Initiatives - Celanese is focused on executing productivity programs, including cost-reduction capital projects, which are expected to support margins in 2024 [4]. - The company is implementing strategic initiatives to align production and inventory with demand, optimize cash flow, and strengthen commercial teams [9]. Group 5: Future Growth Prospects - The startup of a new 1.3-million-ton Clear Lake acetic acid expansion unit and a new vinyl acetate ethylene unit in Nanjing is expected to contribute to higher earnings performance in the latter half of 2024 [13].

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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 ...