Celanese (CE) Q1 2025 Earnings Call May 06, 2025 09:00 AM ET Company Participants Bill Cunningham - Vice President of Investor RelationsDavid Begleiter - DirectorScott Richardson - President & CEOFrank Mitsch - PresidentVincent Andrews - Managing DirectorChuck Kyrish - Senior VP & CFOJoshua Spector - Executive DirectorMichael Sison - Managing DirectorKevin McCarthy - PartnerJohn Roberts - Managing DirectorMatthew Blair - Managing Director Conference Call Participants Jeffrey Zekauskas - AnalystGhansham Panj ...

Core Viewpoint - Ashland Global Holdings Inc. reported a significant decline in profits and sales for the second quarter of fiscal 2025, missing consensus estimates across various metrics [1][2][3]. Financial Performance - The company recorded a profit of $31 million or 65 cents per share, down from $120 million or $2.39 in the same quarter last year [1]. - Adjusted earnings were 99 cents, a decrease from $1.27 year-over-year, and below the Zacks Consensus Estimate of $1.10 [1]. - Total sales fell 16.7% year-over-year to $479 million, missing the Zacks Consensus Estimate of $508.8 million [2]. Segment Performance - **Life Sciences**: Sales decreased by 22.5% year-over-year to $172 million, below the consensus estimate of $177 million, primarily due to the divestiture of the Neutraceuticals division [2]. - **Personal Care**: Sales declined 13.6% year-over-year to $146 million, missing the consensus estimate of $162.3 million, mainly due to portfolio optimization [3]. - **Specialty Additives**: Sales fell 14.6% year-over-year to $134 million, also missing the consensus estimate of $141.1 million, attributed to portfolio optimization [3]. - **Intermediates**: Sales decreased 7.5% year-over-year to $37 million, slightly beating the consensus estimate of $36.3 million, with overall sales impacted by lower prices [4]. Financial Position - Cash and cash equivalents stood at $168 million at the end of the quarter, down approximately 23% sequentially [5]. - Long-term debt increased to $1,336 million, up roughly 2% compared to the previous quarter [5]. Outlook - For the full fiscal year, Ashland expects sales to range between $1.825 billion and $1.9 billion, with adjusted EBITDA projected at $400 million to $420 million [6]. Stock Performance - Ashland's shares have declined by 49% over the past year, contrasting with a 0.9% decline in the industry [7].

Celanese Corporation (CE) reported first-quarter 2025 earnings from continuing operations of 15 cents, down from $1.10 per share in the prior-year quarter.Adjusted earnings in the first quarter were 57 cents, down 72.6% from $2.08 reported a year ago. The bottom line surpassed the Zacks Consensus Estimate of 37 cents.Revenues of $2,389 million decreased roughly 8.5% year over year and beat the Zacks Consensus Estimate of $2,264.6 million. The decrease in net sales was caused by lower volumes and prices. (Fi ...

Cabot (CBT) Q2 2025 Earnings Call May 06, 2025 08:00 AM ET Company Participants Steven Delahunt - VP of Investor Relations & TreasurerSean Keohane - Director, President & CEOErica McLaughlin - EVP, CFO and Head of Corporate StrategyJohn Roberts - Managing DirectorJosh Spector - Executive DirectorDan Rizzo - Senior Vice President Conference Call Participants Jeffrey Zekauskas - Analyst Operator Good day and thank you for standing by. Welcome to the Cabot Second Quarter twenty twenty five Earnings Conference ...

Financial Data and Key Metrics Changes - The company reported a significant focus on cash generation, targeting free cash flow of $700 million to $800 million for the year despite uncertainties in demand [38][42][44] - The management indicated that the second half of the year could see tailwinds amounting to approximately $100 million from cost reductions and volume increases [7][41] Business Line Data and Key Metrics Changes - Engineered Materials volumes were down 4% year-over-year, while acetyl chain volumes decreased by 6% [23][25] - The company noted a strong recovery in acetate tow volumes, with April volumes being approximately 25% higher than January [26] Market Data and Key Metrics Changes - The automotive sector showed a decline of 5% in volumes, compared to a 10% decline in the global industry, indicating some market share gains [44] - The company observed a lack of normal seasonal pickup in acetyls, particularly in paints and coatings, which typically see stronger demand in Q2 [25] Company Strategy and Development Direction - The company is actively pursuing divestitures beyond Micromax, focusing on cash generation and portfolio optimization [9][10] - Management emphasized the importance of stabilizing the nylon business, which has been a significant driver of earnings decline, and is taking actions to improve profitability [14][30] Management Comments on Operating Environment and Future Outlook - Management expressed caution regarding demand uncertainty, particularly in the second half of the year, while noting some positive trends in April and May [8][126] - The company is not assuming any significant improvements in demand but is focused on self-help actions to drive cash flow and earnings [61][62] Other Important Information - The company highlighted that it has a flexible operating model and is relatively agnostic to oil price fluctuations, focusing instead on demand dynamics [20][21] - Management indicated that the nylon business has faced significant challenges due to reduced demand and increased capacity, leading to overcapacity issues [30][31] Q&A Session Summary Question: What is the expected earnings cadence for the second half of the year? - Management indicated potential tailwinds of around $100 million from cost reductions and volume increases, but demand uncertainty remains a key concern [6][7] Question: Is Micromax the only divestiture planned for this year? - Management confirmed that they are exploring multiple divestiture options beyond Micromax, focusing on cash generation [9][10] Question: What are the EBITDA margins for the Micromax business? - The revenue for Micromax is approximately $300 million, with EBITDA margins in the high teens [12] Question: What is the outlook for the nylon business? - Management acknowledged that the nylon business has been a significant drag on operating profit and emphasized the need for focused actions to stabilize and improve profitability [14][30] Question: How is the company positioned regarding oil price changes? - Management stated that the company has a flexible operating model and is generally agnostic to oil price fluctuations, focusing more on demand [20][21] Question: What is the expected impact of tariffs on the acetyl chain? - Management indicated that tariffs have minimal impact on the acetyl chain, with more significant effects seen in Engineered Materials [50] Question: What is the company's strategy for pricing actions in the Engineered Materials portfolio? - Management confirmed that they are implementing pricing actions to reverse negative trends and improve margins [54][56] Question: What is the expected cash flow generation for the year? - Management reiterated confidence in generating $700 million to $800 million in free cash flow, despite uncertainties in demand [38][42] Question: How is the company addressing the challenges in the nylon business? - Management is taking decisive actions to address overcapacity and improve profitability in the nylon segment [30][31]

Core Viewpoint - Huntsman Corporation reported a narrower loss in Q1 2025 compared to the previous year, but revenues fell short of expectations, indicating ongoing challenges in demand and pricing across its segments [1][5][6]. Financial Performance - The reported loss was 3 cents per share, an improvement from a loss of 22 cents per share in the same quarter last year [1]. - Adjusted loss per share was 11 cents, compared to a loss of 6 cents in the prior year, aligning with Zacks Consensus Estimate [1]. - Revenues totaled $1,410 million, down approximately 4% year over year, missing the Zacks Consensus Estimate of $1,479.2 million [1]. Segment Highlights - **Polyurethanes**: Revenues decreased by 2% to $912 million, missing estimates due to lower average selling prices, although sales volumes improved [2]. - **Performance Products**: Revenues fell 12% to $257 million, below estimates, primarily due to reduced sales volumes from lower customer demand and production outages [3]. - **Advanced Materials**: Revenues decreased by 5% to $249 million, falling short of estimates, driven by lower average selling prices and negative foreign currency impacts [4]. Cash Flow and Expenditures - Free cash flow from continuing operations was a use of $107 million, slightly higher than the $105 million used in the prior-year quarter [5]. - Capital expenditures were $36 million, down from $42 million in the previous year [5]. - As of March 31, 2025, the company had approximately $1.3 billion in combined cash and unused borrowing capacity [5]. Outlook - The company anticipates continued pressure on order patterns in key markets due to low visibility and customer uncertainty regarding demand trends [6]. - Huntsman is focusing on cost actions, including workforce reductions and asset optimization in Europe and North America [6]. - Capital expenditures for 2025 are expected to be between $180 million and $190 million [7]. Stock Performance - Huntsman shares have declined by 53.1% over the past year, compared to a 25.5% decline in the Zacks Chemicals Diversified industry [8]. Zacks Rank - Huntsman currently holds a Zacks Rank of 5 (Strong Sell), indicating a challenging outlook compared to better-ranked stocks in the Basic Materials sector [9].

CABOT EARNINGS TELECONFERENCE Second Quarter - Fiscal 2025 Forward Looking Statements This presentation contains forward-looking statements. All statements that address expectations or projections about the future, including with respect to our expectations for our performance in the third quarter of and fiscal year 2025, including our expectations for performance and growth in our businesses and for adjusted earnings per share ('EPS") and adjusted earnings before interest, taxes, depreciation and amortizat ...

Cabot (CBT) Q2 2025 Earnings Call May 06, 2025 08:00 AM ET Speaker0 Good day and thank you for standing by. Welcome to the Cabot Second Quarter twenty twenty five Earnings Conference Call. At this time, all participants are in a listen only mode. After the speakers' presentation, there will be a question and answer session. Please be advised that today's conference is being recorded. I would now like to hand the conference over to your speaker today, Steve Della Hunt, Vice President, Treasurer and Investor ...

Financial Data and Key Metrics Changes - The company reported organic sales growth of 2% in the quarter, with adjusted EBITDA growing by 4% excluding foreign exchange impacts [6][14] - Adjusted EBITDA margins expanded by 20 basis points to 17.5%, despite strong comparisons from the previous year [7] - Adjusted EPS was $0.76, representing a 4% growth when excluding unfavorable foreign exchange impacts [7][14] Business Line Data and Key Metrics Changes - The Color, Additives, and Ink segment saw organic sales growth of 3% and adjusted EBITDA growth of 7% [14] - The Specialty Engineered Materials segment's organic sales were flat year-over-year, with adjusted EBITDA declining by 4% [15] - The healthcare segment experienced double-digit growth, driven by demand in medical devices and supplies [15][16] Market Data and Key Metrics Changes - Organic sales in the U.S. and Canada declined by 3%, primarily due to weak demand in consumer and transportation markets [8] - EMEA region grew by 2%, marking the fourth consecutive quarter of organic growth [8] - Asia's organic sales increased by 9%, with growth across most end markets, particularly transportation [9] - Latin America outpaced market growth with a 17% increase in organic sales, marking the fourth consecutive quarter of double-digit growth [9] Company Strategy and Development Direction - The company is focused on cost control and productivity, expecting approximately $30 million in savings from initiatives in 2025 [11] - There is a strategic emphasis on maximizing cash flow and reducing debt by $100 million to $200 million this year [12][22] - The company aims to prioritize investments in growth vectors, particularly in healthcare and defense, which are expected to outperform the broader market [13][20] Management's Comments on Operating Environment and Future Outlook - Management noted that evolving trade policies have led to uncertainty impacting demand in select markets, particularly in the U.S. [7][19] - For Q2, the company expects adjusted EPS of $0.79, representing a 4% growth over the prior year [20] - The full-year guidance for adjusted EBITDA remains unchanged at $540 million to $570 million, with adjusted EPS guidance of $2.70 to $2.94 [22] Other Important Information - The company expects minimal direct impact from tariffs, as most raw materials are sourced and manufactured locally [12][18] - There is a focus on innovation and reformulation to mitigate tariff impacts and enhance customer offerings [53][54] Q&A Session Summary Question: Defense business expectations for the rest of the year - Management expects double-digit growth in the first half and high single-digit growth for the full year in the defense sector, despite a 5% decline in Q1 [26][27] Question: Transportation market outlook - Transportation is expected to see low negative mid-single-digit growth in the first half, aligning with build rate drops, but a potential recovery in the second half is anticipated [28][29] Question: Consumer market weakness - The consumer market showed double-digit declines in the U.S. and Canada, with expectations for continued weakness in Q2 [32][34] Question: Share gains in EMEA - Strong performance in healthcare, consumer, and defense markets contributed to share gains in EMEA, with notable wins in energy infrastructure [35] Question: Packaging segment performance - The packaging segment is driven by strong demand in personal care and beverages, with double-digit growth in personal care applications [39][40] Question: Raw material trends and inflation - The company expects 1% to 2% inflation for the full year, with specific raw materials showing varied trends [84][85] Question: Cash flow and incentive payouts - The cash flow statement reflects a $53 million use of cash related to incentive accruals, primarily from Q1 payouts [80][81]

FIRST QUARTER 2025 EARNINGS PRESENTATION May 6, 2025 Use of non-GAAP financial measures: This presentation includes certain non‐GAAP financial measures intended to supplement, not substitute for, comparable GAAP measures. Reconciliations of non‐GAAP financial measures to GAAP financial measures are provided within the Appendix to this presentation. Investors are urged to consider carefully the comparable GAAP measures and the reconciliations to those measures provided. The company does not attempt to provid ...