Celanese Corp (CE) Reports Third Quarter 2023 Earnings: Net Sales of $2. ...
Celanese Corp (NYSE:CE) reported third quarter 2023 GAAP diluted earnings per share of $8.70 and adjusted earnings per share of $2.50.
The company generated net sales of $2.7 billion in the quarter, a decrease of 3 percent from the prior quarter.
Celanese reported third quarter consolidated operating profit of $842 million, adjusted EBIT of $451 million, and operating EBITDA of $624 million.
The company reduced net debt by $758 million in the third quarter, including a $697 million sequential decrease in debt and a $61 million sequential increase in cash.
On November 6, 2023, Celanese Corp (NYSE:CE), a global chemical and specialty materials company, released its third quarter 2023 earnings report. The company reported GAAP diluted earnings per share of $8.70 and adjusted earnings per share of $2.50. Despite a 3% decrease in net sales from the prior quarter, the company shows resilience with sequential increases in profitability metrics.
Financial Performance and Challenges
Celanese Corp (NYSE:CE) reported net sales of $2.7 billion for the third quarter, reflecting a sequential decrease in pricing of 3 percent partially offset by a sequential increase in volume of 1 percent. The company reported a consolidated operating profit of $842 million, adjusted EBIT of $451 million, and operating EBITDA of $624 million, at margins of 31, 17, and 23 percent, respectively. The difference between GAAP diluted earnings per share and adjusted earnings per share in the third quarter was primarily due to Certain Items totaling $438 million, including the gain from the formation of the Nutrinova joint venture (JV) and M&A-related costs, as well as a recorded income tax benefit of $236 million.
Financial Achievements and Cost Reduction Measures
In response to unfavorable demand and competitive dynamics, Celanese took actions to reduce costs, align production and inventory levels with demand, and maximize cash generation. As a result, the company reduced inventory balances by $177 million in the third quarter, generated third quarter operating cash flow of $403 million and free cash flow of $268 million, and reduced net debt by $758 million in the third quarter.
Business Segment Overview
The Acetyl Chain delivered third quarter net sales of $1.2 billion, a 1 percent decrease from the prior quarter. Engineered Materials reported third quarter net sales of $1.5 billion, a sequential decrease of 4 percent. Despite the decrease in sales, both segments demonstrated resilience by reducing costs, aligning production and inventory levels to demand, and pivoting to end-markets with relative demand strength.
Outlook
Despite the volatile and uncertain operating environment, Celanese Corp (NYSE:CE) remains focused on sustainably lifting its earnings power. The company anticipates fourth quarter adjusted earnings per share of $2.10 to $2.50, and full year adjusted earnings per share at the lower-end of the previous $9.00 to $10.00 range.
Explore the complete 8-K earnings release (here) from Celanese Corp for further details.
This article first appeared on GuruFocus.
