NEW YORK - Celanese Corporation (NYSE:CE) shares tumbled 12.3% after the chemical and specialty materials company provided first quarter earnings guidance well below analyst expectations, overshadowing better-than-expected fourth quarter results.
The company reported fourth quarter adjusted earnings per share of $1.45, beating the analyst consensus of $1.25. Revenue came in at $2.37 billion, slightly below estimates of $2.39 billion and down 10% sequentially.
However, Celanese’s outlook for the first quarter was significantly lower than anticipated. The company expects earnings per share of $0.25 to $0.50, compared to analyst expectations of $1.65.
CEO Scott Richardson cited continued weakness in key end markets like automotive, construction, paints, coatings and industrial as headwinds. He noted additional challenges from seasonality in certain businesses and a planned facility outage.
"While we do not expect significant changes in the overall demand landscape in the first quarter, we continue to drive actions to mitigate these headwinds," Richardson stated.
For the full year 2024, Celanese reported net sales of $10.3 billion, down 6% YoY. The company posted an operating loss of $697 million, compared to operating profit of $1.69 billion in 2023.
Celanese expects sequential improvement in the second quarter, projecting earnings per share to be approximately $1.00 higher than Q1 levels.
The company is focused on cost reductions and growth initiatives to navigate the challenging environment. It completed actions to exceed $75 million in targeted cost cuts for 2025 and plans to close a manufacturing facility in Luxembourg.
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