Loading...
•
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.
Revenue by Segment
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.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
Analyze how earnings announcements historically affect stock price performance
Avg. Return Before/After Earnings
Loading earnings performance data...
Loading earnings reaction data...