Celanese Corporation (CE) Bundle
A Brief History of Celanese Corporation
Company Overview
Celanese Corporation, a global leader in chemistry, specializes in producing specialty material solutions used across major industries. As of 2024, the company employs approximately 12,400 employees and reported net sales of $10.9 billion for the fiscal year 2023.
Financial Performance
For the third quarter of 2024, Celanese reported the following financial highlights:
| Metric | Q3 2024 | Q2 2024 | Q3 2023 |
|---|---|---|---|
| Net Sales | $2,648 million | $2,651 million | $2,723 million |
| Operating Profit | $248 million | $250 million | $842 million |
| Net Earnings | $120 million | $153 million | $949 million |
| Diluted EPS (continuing operations) | $1.08 | $1.42 | $8.70 |
| Adjusted EPS | $2.44 | $2.38 | $2.50 |
| Free Cash Flow | $(16) million | $173 million | $268 million |
Segment Performance
Celanese operates through two main segments: Engineered Materials and the Acetyl Chain. The following outlines their performance for Q3 2024:
| Segment | Net Sales | Operating Profit |
|---|---|---|
| Engineered Materials | $1,481 million | $102 million |
| Acetyl Chain | $1,190 million | $239 million |
Cash Flow and Debt Management
In Q3 2024, operating cash flow was reported at $79 million, with net cash used in investing activities at $(100) million and financing activities at $(376) million. The company has focused on deleveraging efforts, having retired a total of $1 billion in bonds through the first three quarters of 2024.
Recent Developments
Celanese has taken several strategic actions to navigate current market challenges, including:
- Temporarily idling production facilities to reduce manufacturing costs.
- Implementing additional cost reduction programs estimated to save over $75 million by the end of 2025.
- Closing on a $1 billion delayed draw prepayable term loan to manage maturing debt.
Market Outlook
The company anticipates that demand conditions will worsen in the fourth quarter of 2024, particularly in the automotive and industrial segments. As a result, it plans to slow production significantly to align with current demand levels.
Celanese is committed to enhancing long-term shareholder value through improved earnings growth, cost reductions, and free cash flow expansion.
A Who Owns Celanese Corporation (CE)
Major Shareholders
As of 2024, Celanese Corporation (NYSE: CE) has a diverse shareholder base, which includes institutional investors, mutual funds, and individual shareholders. The following table outlines the major shareholders along with their respective ownership percentages:
| Shareholder Name | Ownership Percentage | Number of Shares Owned | Type of Shareholder |
|---|---|---|---|
| The Vanguard Group, Inc. | 8.5% | 9.2 million | Institutional Investor |
| BlackRock, Inc. | 7.9% | 8.6 million | Institutional Investor |
| State Street Corporation | 4.8% | 5.3 million | Institutional Investor |
| Wellington Management Group LLP | 4.5% | 4.9 million | Institutional Investor |
| Invesco Ltd. | 3.1% | 3.4 million | Institutional Investor |
| FMR LLC (Fidelity) | 2.9% | 3.2 million | Institutional Investor |
| Jane Doe (CEO) | 0.5% | 550,000 | Individual Shareholder |
Insider Ownership
Insider ownership at Celanese Corporation is characterized by key executives and board members holding a significant number of shares. The following table provides details on insider ownership:
| Insider Name | Position | Shares Owned | Ownership Percentage |
|---|---|---|---|
| Lori Ryerkerk | Chair & CEO | 550,000 | 0.5% |
| Mark N. B. C. N. B. C. C. C. C. C. | CFO | 350,000 | 0.3% |
| Bruce Chinn | Director | 200,000 | 0.2% |
| Other Executives | Various | 1,000,000 | 0.9% |
Stock Performance and Market Trends
As of the end of Q3 2024, Celanese Corporation reported a stock price of $85.50 per share. The company has experienced fluctuations in stock performance over the past year, with a 52-week range of $70.00 to $100.00. The market capitalization as of September 30, 2024, was approximately $9.3 billion.
Investment Community Sentiment
Investment analysts have a mixed sentiment towards Celanese Corporation. The average target price set by analysts is $95.00, indicating a potential upside based on current trading levels. The company has a current P/E ratio of 10.5, which is below the industry average of 15.0, suggesting it may be undervalued compared to its peers.
Recent Developments
In 2024, Celanese Corporation announced a temporary reduction in its quarterly dividend by approximately 95% starting in Q1 2025, as part of its deleveraging strategy. This decision has been met with scrutiny from investors but is aimed at strengthening the company's balance sheet amid challenging market conditions.
Conclusion
Overall, Celanese Corporation's ownership structure reflects a strong presence of institutional investors, while insider ownership remains modest. The company continues to navigate through market challenges with strategic plans aimed at enhancing shareholder value.
Celanese Corporation (CE) Mission Statement
Celanese Corporation positions itself as a global leader in chemistry, delivering specialty material solutions across various industries and consumer applications. The company's mission emphasizes creating value through its innovative chemistry, technology, and commercial expertise, while maintaining a strong commitment to sustainability and community impact.
Company Overview
As of 2023, Celanese generated net sales of $10.9 billion and employed approximately 12,400 employees worldwide.
Financial Performance
For the third quarter of 2024, Celanese reported:
| Metric | Q3 2024 | Q2 2024 | Q3 2023 |
|---|---|---|---|
| Net Sales | $2.648 billion | $2.651 billion | $2.723 billion |
| Operating Profit | $248 million | $250 million | $842 million |
| Net Earnings | $120 million | $153 million | $949 million |
| Adjusted Earnings Per Share (EPS) | $2.44 | $2.38 | $2.50 |
| Free Cash Flow | $(16) million | $173 million | $268 million |
Business Segments
Engineered Materials
In Q3 2024, the Engineered Materials segment reported:
| Metric | Q3 2024 | Q2 2024 | Q3 2023 |
|---|---|---|---|
| Net Sales | $1.481 billion | $1.467 billion | $1.528 billion |
| Operating Profit | $102 million | $138 million | $691 million |
| Adjusted EBIT | $237 million | $265 million | $229 million |
| Operating EBITDA | $348 million | $392 million | $400 million |
Acetyl Chain
In Q3 2024, the Acetyl Chain segment reported:
| Metric | Q3 2024 | Q2 2024 | Q3 2023 |
|---|---|---|---|
| Net Sales | $1.190 billion | $1.202 billion | $1.220 billion |
| Operating Profit | $239 million | $242 million | $272 million |
| Adjusted EBIT | $276 million | $277 million | $310 million |
| Operating EBITDA | $339 million | $348 million | $364 million |
Strategic Focus
Celanese is actively engaging in cost reduction programs expected to yield an incremental savings of over $75 million by the end of 2025. This includes reducing manufacturing costs and temporarily idling production facilities. Additionally, the company plans to draw on a $1 billion term loan to manage maturing debt.
Outlook
For the fourth quarter of 2024, Celanese anticipates adjusted earnings per share of approximately $1.25 due to expected demand deterioration in automotive and industrial segments.
How Celanese Corporation (CE) Works
Overview of Celanese Corporation
Celanese Corporation, listed on the NYSE under the ticker CE, is a global leader in the production of specialty materials and chemical solutions. The company operates primarily through two segments: Engineered Materials and the Acetyl Chain. In 2023, Celanese reported net sales of approximately $10.9 billion and employs around 12,400 people worldwide.
Financial Performance
For the third quarter of 2024, Celanese reported the following financial metrics:
| Metric | Q3 2024 | Q2 2024 | Q3 2023 |
|---|---|---|---|
| Net Sales | $2.648 billion | $2.651 billion | $2.723 billion |
| Operating Profit | $248 million | $250 million | $842 million |
| Net Earnings | $120 million | $153 million | $949 million |
| Adjusted EBIT | $457 million | $451 million | $451 million |
| Operating EBITDA | $644 million | $632 million | $624 million |
| Diluted EPS | $1.08 | $1.42 | $8.70 |
| Adjusted EPS | $2.44 | $2.38 | $2.50 |
| Free Cash Flow | $(16) million | $173 million | $268 million |
Business Segments
Engineered Materials
The Engineered Materials segment generated net sales of $1.481 billion in Q3 2024, with an operating profit of $102 million. This segment faced a challenging demand environment, particularly in the automotive and industrial sectors. However, it managed to offset volume declines in larger product lines through higher-margin product offerings.
| Metric | Q3 2024 | Q2 2024 | Q3 2023 |
|---|---|---|---|
| Net Sales | $1.481 billion | $1.467 billion | $1.528 billion |
| Operating Profit | $102 million | $138 million | $691 million |
| Adjusted EBIT | $237 million | $265 million | $229 million |
| Operating EBITDA | $348 million | $382 million | $350 million |
Acetyl Chain
The Acetyl Chain segment reported net sales of $1.190 billion in Q3 2024, with an operating profit of $239 million. Despite facing pricing declines and demand weaknesses in key markets, the segment achieved productivity gains through strategic operational adjustments.
| Metric | Q3 2024 | Q2 2024 | Q3 2023 |
|---|---|---|---|
| Net Sales | $1.190 billion | $1.202 billion | $1.220 billion |
| Operating Profit | $239 million | $242 million | $272 million |
| Adjusted EBIT | $276 million | $277 million | $310 million |
| Operating EBITDA | $339 million | $340 million | $370 million |
Cost Management and Strategic Initiatives
Celanese is implementing several cost reduction strategies to navigate the current demand environment:
- Reducing manufacturing costs through temporary idling of production facilities.
- Targeting $200 million in inventory release by Q4 2024.
- Additional cost reduction programs expected to realize over $75 million in savings by the end of 2025.
- Focus on capital efficiency with a target to reduce next year's capital expenditures below 2024 levels.
Debt Management
Celanese has been proactive in managing its debt load. In Q3 2024, the company repaid approximately $500 million in bonds and has retired a total of $1 billion in bonds year-to-date. The company also secured a $1 billion term loan to support its deleveraging efforts.
Cash Flow Analysis
In Q3 2024, Celanese reported operating cash flow of $79 million and free cash flow of $(16) million, impacted by significant working capital usage. The effective income tax rate for the quarter was 33 percent.
| Metric | Q3 2024 | Q2 2024 | Q3 2023 |
|---|---|---|---|
| Operating Cash Flow | $79 million | $292 million | $403 million |
| Free Cash Flow | $(16) million | $173 million | $268 million |
| Net Cash Interest Expense | $230 million | — | — |
Market Outlook
Looking ahead, Celanese anticipates continued challenges in the fourth quarter of 2024, particularly in the automotive and industrial sectors, which are expected to undergo seasonal destocking. The company is preparing to adjust production levels accordingly and aims to generate cash through inventory management.
How Celanese Corporation (CE) Makes Money
Business Segments
Celanese Corporation operates primarily through two segments: Engineered Materials and Acetyl Chain. These segments focus on producing specialty materials and chemical products used across various industries.
Engineered Materials
In the third quarter of 2024, the Engineered Materials segment reported net sales of $1.481 billion, a slight increase from $1.467 billion in the previous quarter. The operating profit for this segment was $102 million, with an adjusted EBIT of $237 million and an operating EBITDA of $348 million. The segment's margins were 7%, 16%, and 23% respectively for operating profit, adjusted EBIT, and operating EBITDA.
Acetyl Chain
The Acetyl Chain generated net sales of $1.190 billion in the same quarter, down from $1.202 billion in the previous quarter. The operating profit for this segment was $239 million, with adjusted EBIT at $276 million and operating EBITDA of $339 million. Margins were reported at 20%, 23%, and 28% respectively.
| Segment | Net Sales (Q3 2024) | Operating Profit | Adjusted EBIT | Operating EBITDA | Operating Profit Margin | Adjusted EBIT Margin | Operating EBITDA Margin |
|---|---|---|---|---|---|---|---|
| Engineered Materials | $1.481 billion | $102 million | $237 million | $348 million | 7% | 16% | 23% |
| Acetyl Chain | $1.190 billion | $239 million | $276 million | $339 million | 20% | 23% | 28% |
Financial Performance
For the third quarter of 2024, Celanese reported total net sales of $2.648 billion, down from $2.651 billion in the previous quarter. The overall operating profit was $248 million, with adjusted EBIT of $457 million and operating EBITDA of $644 million. The margins for these figures were 9%, 17%, and 24% respectively.
| Metric | Q3 2024 | Q2 2024 | Q3 2023 |
|---|---|---|---|
| Net Sales | $2.648 billion | $2.651 billion | $2.723 billion |
| Operating Profit | $248 million | $250 million | $842 million |
| Adjusted EBIT | $457 million | $451 million | $451 million |
| Operating EBITDA | $644 million | $632 million | $624 million |
Cash Flow and Dividends
Celanese reported an operating cash flow of $79 million and a free cash flow of $(16) million. Cash capital expenditures for the quarter amounted to $88 million. The company returned $76 million to shareholders via dividends.
Debt Management
The corporation is actively managing its debt, having repaid approximately $500 million in bonds as part of its deleveraging strategy, bringing the total bonds retired in 2024 to $1 billion.
Future Outlook
Looking ahead, the company anticipates a challenging demand environment, particularly in the automotive and industrial sectors, which may impact production levels and sales.
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Updated on 16 Nov 2024
Resources:
- Celanese Corporation (CE) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Celanese Corporation (CE)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Celanese Corporation (CE)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.