Celanese Corporation has recently released its 10-K report, providing a detailed look at the company's financial performance and operations. The company operates through two main segments: Engineered Materials and Acetyl Chain. The Engineered Materials segment focuses on specialty polymers for automotive, medical, industrial, and consumer electronics applications, while the Acetyl Chain segment produces and supplies acetyl products used in various industries, including colorants, paints, adhesives, and pharmaceuticals.
In the 10-K report, Celanese disclosed the financial performance of its business segments for the years ended December 31, 2023, and December 31, 2024. Here are some key figures from the report:
- Engineered Materials:
- Net sales decreased by $542 million, representing an 8.8% decline compared to the previous year.
- Operating profit saw a significant decrease of $2.262 billion, with an operating margin of -21.0% in 2024 compared to 17.6% in 2023.
- The decline in net sales was attributed to lower volume, reduced demand for elastomers, lower pricing for most products, and an unfavorable currency impact.
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The decrease in operating profit was primarily due to an unfavorable impact of $1.7 billion related to impairment losses and lower net sales.
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Acetyl Chain:
- Net sales decreased by $121 million, representing a 2.5% decline compared to the previous year.
- Operating profit saw a decrease of $158 million, with an operating margin of 20.0% in 2024 compared to 22.7% in 2023.
- The decrease in net sales was primarily attributed to lower pricing for most products globally, partially offset by higher volume for certain products.
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The decrease in operating profit was primarily due to lower net sales and increased operating expenses.
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Other Activities:
- The operating loss decreased by $36 million, representing a 7.1% improvement compared to the previous year.
- Non-operating pension and other postretirement employee benefit expense decreased by $40 million.
The report also provided insights into Celanese's liquidity and capital resources, highlighting the company's available sources of liquidity and its ability to meet operational and capital investment needs. Additionally, the report discussed the company's strategic initiatives, including facility closures, joint ventures, and acquisitions, and their impact on financial performance and capital allocation.
Celanese emphasized its focus on deleveraging efforts and cost reduction initiatives to support its cash flow and financial obligations. The company also provided details on its capital expenditures, dividend policy, and compliance with existing credit agreements.
Today the company's shares have moved 0.3% to a price of $52.76. For the full picture, make sure to review Celanese's 10-K report.
