Financial Performance - Celanese missed profit and sales forecasts with Q3 EPS of $2 44 and revenue down 2 8% to $2 65 billion [1] - The company anticipates current-quarter EPS of $1 25 which is less than half of analysts' estimates [1] Market Reaction - Celanese was the worst-performing stock in the S&P 500 on Tuesday with shares down 25% in afternoon trading and off about 40% year-to-date [1] - The stock price dropped to 93 19 a decrease of 31 62 (25 33%) [2] Cost-Cutting Measures - Celanese is cutting costs by slashing dividends by 95% reducing the quarterly dividend from $0 70 per share [1] - The company plans to idle production plants in every region and raise $200 million through an inventory release this quarter [1] Demand Environment - Celanese faced "persistent demand weakness" in key end-markets like paints coatings and construction as well as rapid downturns in Western Hemisphere automotive and industrial segments [1] - The CEO warned that demand conditions are expected to worsen in the fourth quarter [1]
Celanese Stock Is the S&P's Worst Performer After the Company Cited 'Demand Weakness'
Celanese(CE) Investopedia·2024-11-05 20:18