Celanese Shares Plunge 13% on Q3 Earnings Miss and Disappointing Outlook

NEW YORK - Celanese Corporation (NYSE:CE) shares fell 13% in after-hours trading after the chemicals and specialty materials company reported third-quarter earnings that missed analysts' expectations and provided weak guidance.

Celanese reported adjusted earnings of $2.44 per share for the third quarter, falling short of the consensus estimate of $2.85. Revenue came in at $2.65 billion, slightly below the expected $2.7 billion and representing a 3% decline compared to the same period last year.

The company faced challenges stemming from ongoing demand weakness in key end markets such as paints, coatings, and construction. Celanese also experienced rapid declines in its automotive and industrial segments in the Western Hemisphere during the quarter.

CEO Lori Ryerkerk stated, "In the third quarter, we faced a severely constrained demand environment that rapidly deteriorated in some cases, such as automotive. The earnings we achieved fell short of our expectations."

Looking ahead, Celanese expects adjusted earnings of about $1.25 per share for the fourth quarter, significantly below analysts' forecast of $2.30. The company cited worsening demand conditions and heavier-than-normal seasonal destocking expectations in its automotive and industrial segments.

In response to the challenging environment, Celanese announced plans to temporarily reduce its quarterly dividend by approximately 95% starting in the first quarter of 2025. The company also plans to implement additional cost reduction programs aimed at achieving savings of over $75 million by the end of 2025.