DALLAS - Celanese Corporation (NYSE: NYSE:CE), a global chemical and specialty materials company currently trading near its 52-week low with a market capitalization of $7.1 billion, has announced the addition of Scott Sutton to its Board of Directors starting March 1, 2025. Mr. Sutton, with a rich background in the chemical industry, will also co-chair the newly established Finance and Business Review Committee alongside CEO and President Scott Richardson.
The committee's formation is aimed at enhancing the oversight of Celanese's financial health and strategic initiatives. Its focus will include cost reduction, cash flow prioritization, accelerating debt reduction, and assessing the company's asset portfolio and business structure. According to InvestingPro analysis, the company maintains a "GOOD" overall financial health score, with particularly strong marks in profitability and relative value metrics.
Scott Sutton brings nearly 35 years of industry experience to the board, having previously held leadership roles at Olin (NYSE:OLN) Corporation, Prince International Corporation, and within Celanese itself as Chief Operating Officer from 2017 to 2019. His tenure at Olin was marked by strategic changes that significantly benefitted shareholder value, despite economic challenges.
Edward Galante, Chair of the Board, expressed confidence in Sutton's ability to contribute to the company's strategic execution, citing his operational expertise and track record in shareholder value creation. CEO Scott Richardson welcomed Sutton as a trusted advisor and lauded his industry reputation. Sutton himself expressed enthusiasm for rejoining Celanese in a governance role and supporting the company's performance and shareholder value.
Celanese, a Fortune 500 enterprise, operates on a global scale, with over 12,000 employees and net sales of $10.9 billion in 2023. The company is dedicated to sustainable practices and community impact, focusing on the development of sustainable products to meet growing demands. InvestingPro data shows the company maintains an impressive 21-year streak of dividend payments, with current metrics indicating the stock is trading below its Fair Value. For deeper insights into Celanese's valuation and future prospects, investors can access the comprehensive Pro Research Report, available exclusively on InvestingPro.
This announcement is based on a press release statement and includes forward-looking statements subject to risks, uncertainties, and assumptions. Actual results may differ materially from the expectations outlined.
In other recent news, Celanese Corporation, a global producer of acetyls and engineered thermoplastics, has been the subject of several significant developments. Moody's (NYSE:MCO) Ratings downgraded Celanese's credit rating from Baa3 to Ba1, attributing the decision to uncertain market conditions and inconsistent credit metrics. Despite this, Moody's expects Celanese to generate substantial free cash flow and complete asset divestitures, supporting a reduction in debt leverage.
Simultaneously, Deutsche Bank (ETR:DBKGn) maintained a Buy rating on Celanese stock, anticipating the forthcoming Q4 earnings announcement as a potential catalyst for the company. The bank estimated earnings per share at $8.50 for 2025, highlighting potential cost reduction measures and deleveraging efforts.
In leadership changes, Celanese announced the return of Todd Elliott as Senior Vice President to lead the Engineered Materials business. Elliott's deep industry knowledge and track record were cited as key factors in his appointment.
Analysts from Jefferies, on the other hand, reduced their price target for Celanese shares, citing irregular order patterns and less robust recovery in key markets. Lastly, Celanese expanded its Board of Directors with the appointment of Christopher Kuehn from Trane Technologies (NYSE:TT), enhancing the Board's financial and risk management capabilities. These are among the latest developments impacting Celanese Corporation.
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