Celanese Q3 2023 Earnings Report
Key Takeaways
Celanese Corporation reported Q3 2023 GAAP diluted earnings per share of $8.70 and adjusted earnings per share of $2.50. Net sales were $2.7 billion, a decrease of 3% from the prior quarter. The company reduced net debt by $758 million and inventory balances by $177 million.
Net sales reached $2.7 billion, reflecting a slight decrease from the previous quarter due to pricing adjustments.
GAAP diluted earnings per share stood at $8.70, while adjusted earnings per share was $2.50.
The company successfully reduced inventory balances by $177 million through reductions in Engineered Materials and Acetyl Chain.
Net debt was significantly reduced by $758 million, showcasing a strong commitment to deleveraging.
Celanese
Celanese
Celanese Revenue by Segment
Forward Guidance
Celanese anticipates fourth quarter adjusted earnings per share of $2.10 to $2.50, inclusive of approximately $0.30 per share of M&M transaction amortization. Consequently, Celanese anticipates full year adjusted earnings per share at the lower-end of the previous $9.00 to $10.00 range, inclusive of approximately $1.20 per share of M&M transaction amortization.
Positive Outlook
- Controllable actions to support near-term performance.
- Laying the groundwork for amplified earnings growth when demand returns.
- Focus on delivering sequential growth in earnings contributions.
- Positioning to enter 2024 with additional momentum.
- Improvement in destocking conditions.
Challenges Ahead
- Volatile and uncertain operating environment.
- Anticipated cold weather seasonality.
- M&M transaction amortization of approximately $0.30 per share in Q4.
- Full year adjusted earnings per share expected at the lower-end of the previous range.
- Challenging competitive dynamics due to poor demand and raw material deflation.
Revenue & Expenses
Visualization of income flow from segment revenue to net income