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Celanese quarterly revenues tumble 13%, amid weak acetyl demand

Published 01/21/2016, 08:07 PM
Updated 01/21/2016, 08:11 PM
Celanese, one of the world's top acetyl producers, saw its revenues fall sharply in the fourth quarter
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Investing.com -- Celanese Corporation (N:CE) announced on Thursday that its revenues over the fourth quarter fell by 13%, amid weakness in its acetyl chain segment due primarily to strong currency headwinds and soft raw material demand in China.

For the company's fourth quarter, which ended in late-December, Celanese reported a loss of $301 million, or 2.03 a share, down from losses of $85 million or 0.55 a share over the same period in 2014. Celanese, an Irving, Texas-based specialty materials company, is one of the world's top producers of acetyl products used in the chemicals and painting industries.

Celanese still managed to report record annual per share earnings of 6.02, due in part to strong performance in its Industrial Specialties division and record margin in its Materials Solutions segment. It represented a 6% increase in per share earnings from the previous year.

The company's exposure to volatility in raw materials and weak acetyl demand in China and Europe restricted its fourth quarter earnings. Celanese, which is the most exposed U.S. chemical stock to China, derives approximately 15% of its revenue from the world's second-largest economy, according to Moody's.

Last month, Celanese raised prices for its industrial ethanol in China to offset declining market conditions throughout the nation. Months earlier, the company also hiked prices of acetic acid in China to respond to growing cost pressures. Celanese's integrated chemical complex in Nanjing serves as a base for driving expansion in Asia.

"Our teams did a tremendous job of managing through the considerable headwinds of currency depreciation, falling crude prices, and soft demand in Asia to deliver these strong results," Celanese CEO Mark Rohr said in a statement.

Moving forward, Celanese hopes to grow per share earnings by at least 5% this year.

Shares in Celanese closed the regular session at 59.28, up 0.08 or 0.14%.

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