DALLAS - Celanese Corporation (NYSE: NYSE:CE), known for its specialty material solutions, announced the election of Bruce Chinn to its Board of Directors, effective September 15, 2024. With a decades-long tenure in the chemical industry, Chinn's addition is expected to enhance the board's expertise.
Chinn, who concluded his role as President, Chief Executive Officer, and a Director at Chevron Phillips Chemical Company LLC in March 2024, joins a board of eleven members, ten of whom are independent. His career began at DuPont (NYSE:DD) in 1978, and he has held various significant roles across manufacturing, technical, and commercial sectors both in the U.S. and internationally. His leadership at Chevron Corporation (NYSE:CVX) since 2006 has been noted for focusing on performance, partnership, and safety.
Lori Ryerkerk, Chair, Chief Executive Officer, and President of Celanese, expressed confidence in Chinn's capabilities, highlighting his "exceptional manufacturing and technical background" and his extensive leadership experience as assets that will benefit Celanese stakeholders.
Chinn, who also serves on the Board of Directors at Waste Management, Inc. (NYSE:WM) and is a member of the American Institute of Chemical Engineers Foundation Board of Trustees, holds a Bachelor of Science in chemical engineering from Texas A&M University. He will stand for re-election at the 2025 Annual Meeting of Shareholders.
Celanese Corporation, a Fortune 500 company with a workforce of approximately 12,400 employees worldwide, reported net sales of $10.9 billion in 2023. The company emphasizes sustainability and inclusivity in its operations and aims to make a positive community impact. This announcement is based on a press release statement from Celanese Corporation.
In other recent news, Celanese Corporation has been the focus of several analyst adjustments. Piper Sandler downgraded Celanese stock to a Neutral position from an Overweight rating, citing challenges in China and the EU markets. The firm also revised its price target downward to $150 from the former target of $180. Deutsche Bank and BMO Capital Markets also adjusted their price target for Celanese to $135 and $138 respectively, reflecting concerns over a difficult macroeconomic environment and operational challenges.
KeyBanc has lowered its price target for Celanese to $178 from $180 while maintaining an Overweight rating, following a challenging year marked by weak demand. Despite these challenges, Celanese management remains optimistic, providing a preliminary outlook for 2025 that suggests an EPS of over $13.50.
Baird has revised its price target for Celanese to $150 from $180, maintaining an Outperform rating. This adjustment is based on the firm's analysis of Celanese's strong earnings and free cash flow conversion abilities in a challenging operating environment.
In recent developments, the company's second-quarter earnings revealed performance issues were not as severe as initially perceived. Celanese has largely resolved its supply problems and forecasts improved operating rates in the Acetyl Chain during the third quarter of 2024. Despite some earnings adjustments and weaker demand conditions, the company maintains a steady outlook, expecting moderate growth in volumes and margins in the upcoming quarter.
InvestingPro Insights
As Bruce Chinn brings his extensive experience to the Celanese Corporation Board of Directors, shareholders may find additional confidence in the company's financial metrics and market position. According to real-time data from InvestingPro, Celanese Corporation boasts a market capitalization of $13.1 billion and a compelling price-to-earnings (P/E) ratio of 6.81. This low P/E ratio, especially in relation to near-term earnings growth, suggests that the stock could be undervalued, providing a potentially attractive entry point for investors.
InvestingPro Tips indicate that Celanese has a track record of rewarding shareholders, having raised its dividend for 14 consecutive years and maintaining dividend payments for 20 consecutive years. This consistency in returning value to shareholders is complemented by a solid dividend yield of 2.31% as of the last dividend ex-date on July 30, 2024. Moreover, the company's valuation implies a strong free cash flow yield, which is a testament to its financial health and efficiency in generating cash.
For investors seeking further insights and analysis, there are additional InvestingPro Tips available for Celanese Corporation at https://www.investing.com/pro/CE, which can provide deeper perspectives on the company's financial standing and future prospects.
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