Celanese (NYSE:CE), listed as a Fortune 500 company, employs approximately 12,400 people worldwide and reported net sales of $10.9 billion in 2023. Trading at a P/E ratio of 7.31 and maintaining a dividend yield of nearly 4%, the company appears undervalued according to InvestingPro Fair Value metrics. However, 18 analysts have recently revised their earnings expectations downward for the upcoming period. The company is committed to sustainable growth and fostering an inclusive work environment.
Edward Galante, a member of the Celanese Board since 2013, has been elected as the new Chair of the Board, coinciding with Ryerkerk's departure.
Celanese, listed as a Fortune 500 company, employs approximately 12,400 people worldwide and reported net sales of $10.9 billion in 2023. Trading at a P/E ratio of 7.31 and maintaining a dividend yield of nearly 4%, the company appears undervalued according to InvestingPro Fair Value metrics. However, 18 analysts have recently revised their earnings expectations downward for the upcoming period. The company is committed to sustainable growth and fostering an inclusive work environment.
In a statement, Richardson expressed his gratitude for the appointment and emphasized his commitment to driving necessary changes and capitalizing on the company's potential for long-term value creation, despite today's challenges.
Lori Ryerkerk, reflecting on her tenure as CEO since 2019, praised Richardson's expertise and expressed confidence in his ability to lead the company to greater heights.
The Board's decision to appoint Richardson is the result of a comprehensive succession planning process. Kim Rucker, Lead Independent (LON:IOG) Director of the Celanese Board, acknowledged Richardson's caliber as an executive and thanked Ryerkerk for her leadership and contributions, which have fortified Celanese's competitive position in challenging macro environments.
Richardson's background includes a BA in Accounting and an MBA, with previous roles at American Airlines (NASDAQ:AAL) before joining Celanese. Galante brings extensive experience from his tenure at Exxon Mobil Corporation (NYSE:XOM) and involvement with other leading companies.
Celanese, listed as a Fortune 500 company, employs approximately 12,400 people worldwide and reported net sales of $10.9 billion in 2023. Trading at a P/E ratio of 7.31 and maintaining a dividend yield of nearly 4%, the company appears undervalued according to InvestingPro Fair Value metrics. However, 18 analysts have recently revised their earnings expectations downward for the upcoming period. The company is committed to sustainable growth and fostering an inclusive work environment.
This leadership transition is based on a press release statement from Celanese Corporation.
In other recent news, Celanese Corporation has been the subject of several analyst downgrades. UBS downgraded the company's rating from 'Buy' to 'Neutral' and reduced the price target to $97, citing concerns about Celanese's ability to manage its debt. Similarly, BMO Capital Markets downgraded its rating from 'Market Perform' to 'Underperform' and slashed the price target to $76, referencing increased financial leverage following the acquisition of M&M and a weaker-than-anticipated macroeconomic environment. Piper Sandler also revised its rating from 'Neutral' to 'Underweight' and reduced the price target to $98 due to expected financial and operational pressures in the upcoming quarters.
In terms of earnings, Celanese's third-quarter results in 2024 were impacted by market headwinds, particularly in the automotive and industrial sectors. The company's fourth-quarter earnings are projected to drop significantly from $2.50 in Q3 to $1.25. In response, Celanese plans to lower its net debt to EBITDA ratio to three times by reducing its quarterly dividend in the first quarter of 2025.
Other recent developments include the company's focus on cost management and operational excellence. Celanese has set four priorities for 2025: cost reduction, delivering synergies, enhancing the Engineered Materials pipeline, and leveraging the Acetyl Chain. However, a potential merger with Blackstone (NYSE:BX) for Acetow has been ruled out due to regulatory concerns. These developments reflect the company's determination to navigate ongoing macroeconomic difficulties.
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