(Reuters) -Specialty chemical compounds firm Celanese (NYSE:) lower its quarterly dividend by about 95% and laid out further cost-cut plans following a revenue hunch, sending its shares down 14% in prolonged buying and selling on Monday.
Third-quarter internet earnings fell about 87% to $120 million, as its engineered supplies section was impacted by speedy slowdowns in industrial exercise in each automotive and industrial segments.
The corporate mentioned the non permanent dividend discount, starting within the first quarter of 2025, was a prudent and cost-effective path ahead to help deleveraging, and its plans to chop further prices would assist it save greater than $75 million by the tip of 2025.
CEO Lori Ryerkerk mentioned the groups executed worth enhancing initiatives and made enhancements however “these actions have been more and more offset within the present surroundings and the earnings generated fell in need of our expectations.”
Final month, peer Dow, which is ready to get replaced by Sherwin-Williams (NYSE:) within the , forecast fourth-quarter income under market expectations and began evaluate of a few of its European belongings as the corporate grapples with sagging demand.
Celanese additionally mentioned it was “decreasing manufacturing prices via the tip of 2024 by quickly idling manufacturing services in each area and driving money era via an anticipated $200 million stock launch within the fourth quarter.”
The corporate forecast fourth-quarter adjusted revenue of $1.25 per share, under common analysts’ expectations of $2.93 per share, based on knowledge complied by LSEG, as the corporate expects demand situations to worsen.
Celanese makes chemical merchandise which might be utilized in coatings, paints and pharmaceutical merchandise and polymers.
The chemical compounds trade, which had beforehand been coping with excessive stock that led to destocking, is now going through weaker demand in key markets similar to China and Europe.
