Celanese Corporation (NYSE: CE), a leading global chemical and specialty materials company, announced its financial results for the first quarter of 2024. The company reported U.S. GAAP diluted earnings per share of $1.10 and adjusted earnings per share of $2.08. Total net sales for the quarter reached $2.6 billion, marking a 2 percent increase from the previous quarter, driven by a 2 percent rise in volume with neutral pricing.
Despite operating in a demand environment that remains in a state of stabilization without returning to normalized levels, Celanese effectively managed controllable actions. This allowed the company to offset the typical seasonal impacts of the first quarter and absorb higher expenses associated with planned turnarounds.
Key financial highlights for the first quarter include an operating profit of $210 million, adjusted EBIT of $407 million, and operating EBITDA of $583 million, with margins of 8 percent, 16 percent, and 22 percent, respectively. The variance between U.S. GAAP diluted earnings per share and adjusted earnings per share was primarily due to Certain Items totaling $97 million.
Lori Ryerkerk, Chair and CEO of Celanese, expressed satisfaction with the first quarter results, emphasizing the company’s ability to perform well in the current commercial environment. She acknowledged the financial benefits realized from actions completed in the previous year and commended the teams for exceeding previous earnings expectations.
Recent operational highlights include the successful startup of a new 1.3 million ton Clear Lake acetic acid expansion unit and strategic actions to enhance flexibility within the Acetyl Chain segment. These actions include the startup of a new vinyl acetate ethylene (VAE) unit in Nanjing and the completion of debottlenecking projects for downstream redispersible polymer powders (RDP) to meet growing demand.
Additionally, Celanese announced the closure of all operations in Mechelen, Belgium, aligning with the company’s strategy to exit high-cost facilities while driving productivity in lower-cost facilities. Kim K.W. Rucker was elected as the new lead independent director, bringing valuable experience to the board.
In terms of business segments, the Acetyl Chain segment saw a 7 percent increase in net sales, driven by a 5 percent increase in volume. The Engineered Materials segment reported a sequential decrease of 2 percent in net sales, attributed to volume and pricing declines.
Looking ahead, Ryerkerk reiterated the company’s focus on sustainable earnings growth, with expectations of benefits from various value creation initiatives in the coming quarters. Celanese anticipates adjusted earnings per share for the second quarter to be in the range of $2.60 to $3.00, inclusive of M&M transaction amortization.
Reconciliations of forecasted non-GAAP measures to U.S. GAAP measures are not available due to the impracticality of forecasting Certain Items. For more information, refer to the “Non-GAAP Financial Measures” section.
