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Mar 31, 2024
Celanese Q1 2024 Earnings Report
Reported an increase in net sales driven by volume and pricing, and executed controllable actions in a stabilizing demand environment.
Key Takeaways
Celanese Corporation reported first quarter 2024 U.S. GAAP diluted earnings per share of $1.10 and adjusted earnings per share of $2.08. Net sales were $2.6 billion, a 2 percent increase from the prior quarter. The company's performance was driven by execution against controllable actions in a stabilizing demand environment.
Net sales increased by 2 percent from the prior quarter, driven by a 2 percent increase in volume and neutral pricing.
Operating profit was $210 million, with adjusted EBIT at $407 million and operating EBITDA at $583 million.
The Acetyl Chain delivered a 7 percent increase in net sales from the prior quarter, driven by volume and pricing increases.
Engineered Materials reported a slight sequential decrease in net sales, but improved earnings performance due to lower raw material costs and sales mix improvements.
Revenue by Segment
Forward Guidance
The Company anticipates second quarter adjusted earnings per share of $2.60 to $3.00, inclusive of approximately $0.30 per share of M&M transaction amortization.
Positive Outlook
- Further improvement in the profitability of acquired product portfolio
- Benefits from Clear Lake expansion
- Benefits from Uentrop closure
- Benefits from SAP S/4HANA ERP integration
- Expected ramp in earnings performance in the second quarter and into the second half of the year
Challenges Ahead
- Current demand environment
- Muted seasonal commercial lift
- Timing of major value creation projects
- Reflective of the current commercial environment
- M&M transaction amortization of approximately $0.30 per share
Historical Earnings Impact
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Avg. Return Before/After Earnings
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