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Mar 31, 2023
Celanese Q1 2023 Earnings Report
Celanese reported an increase in net sales and earnings per share, driven by volume growth and synergies from the Mobility & Materials acquisition.
Key Takeaways
Celanese Corporation reported a strong first quarter with a 22 percent increase in net sales to $2.9 billion and GAAP diluted earnings per share of $0.86 and adjusted earnings per share of $2.01. The company benefited from volume growth, particularly in Engineered Materials and the Acetyl Chain, and realized synergies from the Mobility & Materials (M&M) acquisition.
Net sales increased by 22 percent compared to the prior quarter, driven by a 19 percent volume increase.
GAAP diluted earnings per share was $0.86, and adjusted earnings per share was $2.01.
Operating profit and operating EBITDA increased sequentially by 70 percent and 34 percent, respectively, due to higher contributions from Engineered Materials and the Acetyl Chain.
The M&M acquisition contributed significantly to earnings, with $10 million in cost synergies realized during the quarter.
Celanese
Celanese
Celanese Revenue by Segment
Revenue by Segment
Engineered Materials Revenue
CapyFin.comAcetyl Chain Revenue
CapyFin.com Forward Guidance
Celanese expects second quarter adjusted earnings per share of approximately $2.50, inclusive of approximately $0.30 per share of M&M transaction amortization, with potential to exceed this if demand recovers substantively enough to support material pricing recovery.
Positive Outlook
- Teams are working to opportunistically deliver modestly higher volume in the second quarter.
- Efforts to preserve pricing spreads over raw materials.
- Sequential earnings growth expected in the businesses.
- Controllable actions expected to drive earnings growth.
- Potential for material pricing recovery in the Acetyl Chain.
Challenges Ahead
- Underlying demand improvement over March has been immaterial.
- Demand is not yet substantive enough to support any pricing expansion.
- First quarter volume, when excluding M&M contributions, was significantly lower year over year.
- Challenging pricing dynamics, particularly in China.
- Difficulties in forecasting the timing and amount of Certain Items.
Revenue & Expenses
Visualization of income flow from segment revenue to net income