DALLAS - Celanese Corporation (NYSE:CE), a global chemical and specialty materials company, today reported first-quarter 2024 earnings that surpassed analyst expectations, despite a slight revenue shortfall. Celanese's stock moved up 1% following the earnings release.
The company announced adjusted earnings per share (EPS) of $2.08, beating the consensus estimate of $1.91. However, revenue for the quarter was $2.61 billion, falling short of the $2.68 billion anticipated by analysts.
Celanese's performance in the first quarter reflects a 2% increase in net sales from the prior quarter, driven by a 2% sequential increase in volume and neutral pricing. The company's ability to execute against controllable actions in a stabilizing demand environment allowed it to largely offset the impacts of first-quarter seasonality and higher expenses associated with planned turnarounds. Compared to the same quarter last year, the revenue decreased by 8.5%, indicating a year-over-year (YoY) decline.
Lori Ryerkerk, chair and chief executive officer, commented on the results, "Our first quarter results demonstrate our ability to execute in a commercial environment that has stabilized but still shows limited signs of meaningful recovery." She attributed the quarter's success to the realization of financial benefits from actions completed last year and ongoing initiatives to enhance earnings power.
Looking ahead, Celanese provided guidance for the second quarter of 2024, forecasting adjusted EPS in the range of $2.60 to $3.00. This guidance brackets the analyst consensus of $2.95. The midpoint of the guidance range, $2.80, is slightly below the analyst consensus.
The company's focus remains on controllable actions to sustainably lift earnings, with Ryerkerk expressing confidence in delivering a ramp in earnings performance in the second quarter and into the second half of the year. Celanese's strategic initiatives, including the Clear Lake expansion, Uentrop closure, and SAP S/4HANA ERP integration, are expected to contribute to this growth.
Celanese Corporation, a Fortune 500 company, employs approximately 12,400 employees worldwide and reported 2023 net sales of $10.9 billion. The company's commitment to sustainability and positive community impact remains central to its business strategy.
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