Celanese, a chemical and specialty materials supplier based in Dallas, announced a higher profit for the third quarter. The company’s profitability improvements and a one-time income tax benefit contributed to this positive outcome.
In the third quarter, Celanese recorded a profit of $951 million, or $8.69 per share, compared to $191 million, or $1.75 per share, in the same period last year. This exceeded the expectations of analysts, who anticipated per-share earnings of $2.15. Adjusted per-share earnings, excluding certain one-time items, were reported at $2.50, surpassing the forecast of $2.23.
Despite the strong profit growth, Celanese’s revenue reached $2.72 billion, falling short of analysts’ expectation of $2.758 billion. This figure shows an increase from $2.3 billion in the previous year.
Key Factors Driving Profit
Celanese attributed its higher profit to an income tax benefit resulting from internal relocations of intellectual property and the gain achieved from the formation of the Nutrinova joint venture.
Decline in Volumes
Although the company experienced a 1% increase in volume, its overall volumes declined on a sequential basis due to price cuts.
Net Debt Reduction
In line with its goal to reduce net debt by $1 billion this year, Celanese successfully decreased its net debt by $758 million in the third quarter.
Cost Reduction and Inventory Alignment
Celanese has been actively reducing costs and aligning its inventory with demand amid a weaker demand environment.