Celanese's Q3 Earnings and Revenues Miss Estimates, Decline Y/Y

Earnings and Revenue - Celanese Corporation reported Q3 2024 earnings from continuing operations of $1 08 per share, down from $8 70 in the prior-year quarter [1] - Adjusted earnings were $2 44 per share, down 2 4% from $2 50 a year ago, missing the Zacks Consensus Estimate of $2 84 [1] - Revenues of $2,648 million decreased 2 7% year over year, missing the Zacks Consensus Estimate of $2,685 million [1] Segment Performance - Engineered Materials unit net sales were $1,481 million, down 3% year over year, missing the estimate of $1,609 5 million [3] - The segment reported an operating profit of $102 million and an adjusted EBIT of $237 million [3] - Acetyl Chain segment net sales were $1,190 million, down 12 7% year over year, beating the estimate of $1,162 1 million [4] - The segment generated an operating profit of $239 million and an adjusted EBIT of $276 million [4] Financial Position - Celanese ended the quarter with cash and cash equivalents of $813 million, down 31 4% sequentially [5] - Long-term debt increased 2 4% sequentially to $11,324 million [5] - Cash provided by operating activities was $79 million, and free cash flow was a negative $16 million [5] - Capital expenditures were $131 million in the quarter [5] Market and Demand - Celanese experienced sustained demand weakness in major end-markets such as paints, coatings, and construction [2] - Downturns were observed in the Western Hemisphere automobile and industrial sectors [2] - The company anticipates a deterioration in demand in Q4 due to higher-than-normal seasonal destocking in automotive and industrial markets [6] - Celanese plans to reduce output and generate cash through inventory drawdowns, expecting the destocking to last only for the quarter [6] Outlook and Strategy - Celanese expects adjusted earnings per share of around $1 25 in Q4 [7] - The company aims to create long-term shareholder value by improving earnings, reducing costs, expanding free cash flow, and deleveraging [7] Stock Performance - Celanese's shares gained 2 9% in the past year, compared to a 2 9% decline in the industry [8]