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Sep 30, 2024
Celanese Q4 2024 Earnings Report
Celanese reported a significant net loss in Q4 2024, primarily due to non-cash asset impairment charges, despite efforts to reduce costs and align production with demand.
Key Takeaways
Celanese Corporation reported a net loss of $1.911 billion for the fourth quarter of 2024, a significant decline from a net income of $120 million in the previous quarter and $701 million in the same period last year. This was largely driven by a $2.0 billion impact from Certain Items, predominantly non-cash asset impairment charges. Net sales decreased by 10% sequentially to $2.4 billion, impacted by volume and price declines, and challenging demand in key end-markets.
Net sales for Q4 2024 were $2.370 billion, a 10% sequential decrease.
The company reported a net loss of $1.911 billion for Q4 2024, compared to net earnings of $120 million in Q3 2024.
Diluted EPS for Q4 2024 was -$17.50, a substantial drop from $1.06 in Q3 2024.
Adjusted EBIT for Q4 2024 was $333 million, down from $457 million in Q3 2024.
Celanese
Celanese
Celanese Revenue by Segment
Revenue by Segment
Engineered Materials Revenue
CapyFin.comAcetyl Chain Revenue
CapyFin.com Forward Guidance
Celanese anticipates continued demand and pricing challenges in Q1 2025, with additional headwinds from seasonality and a planned outage. However, they expect meaningful sequential improvement in Q2 2025.
Positive Outlook
- Anticipates meaningful sequential improvement in the second quarter.
- Expects second quarter earnings per share to be approximately $1.00 higher than the first quarter.
- Company is focused on intensifying cost reduction.
- Driving growth through AC optionality and EM pipeline models.
- Increasing cash flow to deleverage the balance sheet.
Challenges Ahead
- Expects sequential demand and pricing challenges to be largely unchanged in the first quarter.
- Continued weakness in core end-markets like automotive, construction, paints, coatings, and industrial.
- Additional headwinds in Q1 from seasonality in acetate tow and medical implants businesses.
- Planned outage at the Bishop, Texas facility in Q1.
- Delay until Q2 for dividend income from the acetate joint venture in China due to law change.
Revenue & Expenses
Visualization of income flow from segment revenue to net income