Celanese's Earnings and Revenues Surpass Estimates in Q4

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].