CELANESE CORPORATION Reports Earnings for Second Quarter of FY2023
August 16, 2023
🌥️Earnings Overview
On August 7, 2023, CELANESE CORPORATION ($NYSE:CE) reported their results for the second quarter of FY2023 (ending June 30, 2023). The total revenue for the period was USD 2795.0 million, representing an increase of 12.4% compared to the same quarter of the previous year. Unfortunately, net income declined 49.3% year over year to USD 220.0 million.
Share Price
Stock opened at $124.6 and closed the day at $124.7, representing a 0.6% increase from its previous closing price of 124.0. This marked the highest closing price in the quarter for the company. The corporation attributes their strong performance to their strategic shift towards higher value-added products and services. They also credited their successful implementation of cost-savings initiatives and continued focus on operational excellence.
Going into the third quarter, CELANESE CORPORATION remains cautiously optimistic about their outlook for the following quarters. With their continued focus on innovation and operational excellence, they are confident in their ability to remain profitable and deliver strong returns for its shareholders. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Celanese Corporation. More…
| Total Revenues | Net Income | Net Margin |
| 10.3k | 1.27k | 11.5% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Celanese Corporation. More…
| Operations | Investing | Financing |
| 1.67k | -11.2k | 10.03k |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Celanese Corporation. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 25.65k | 19.56k | 51.67 |
Key Ratios Snapshot
Some of the financial key ratios for Celanese Corporation are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 22.0% | 9.2% | 12.4% |
| FCF Margin | ROE | ROA |
| 10.5% | 14.1% | 3.1% |
Analysis
At GoodWhale, we recently conducted an analysis of CELANESE CORPORATION‘s wellbeing. Our Star Chart shows that CELANESE CORPORATION is strong in dividend and medium in asset, growth and profitability. We classify this type of company as a ‘rhino’, which is a company that has achieved moderate revenue or earnings growth. Considering the attributes associated with CELANESE CORPORATION, we can assume that investors looking for moderate growth and a stable dividend yield would be interested in such a company. Additionally, CELANESE CORPORATION has a high health score of 8/10 considering its cashflows and debt, signifying that it is capable to sustain future operations in times of crisis. More…
Peers
Celanese’s product portfolio includes acetyl intermediates, plastics, films, and synthetic fibers. The company operates in two segments: Advanced Engineered Materials and Industrial Specialties. Celanese’s competitors include Dow Inc, DuPont de Nemours Inc, and Showa Denko KK.
– Dow Inc ($NYSE:DOW)
Dow Inc is a publicly traded company with a market capitalization of $35.24 billion as of 2022. The company’s return on equity is 26.96%. Dow Inc is a diversified chemical company that produces and sells chemicals, plastics, and agricultural products. The company operates in more than 80 countries and employs approximately 36,000 people.
– DuPont de Nemours Inc ($NYSE:DD)
DuPont de Nemours Inc is a large chemical company with a market cap of 34.47B as of 2022. The company has a ROE of 6.8%. DuPont is a science company that delivers science-based solutions to make people’s lives better, healthier and safer.
– Showa Denko KK ($TSE:4004)
Show Denko KK is a Japanese company that manufactures and sells chemicals and materials. The company has a market capitalization of 406.88 billion as of 2022 and a return on equity of 7.29%. Showa Denko is a diversified company with businesses ranging from petrochemicals to electronics. The company is one of the largest producers of aluminum oxide in the world and also produces and sells a variety of other chemicals and materials.
Summary
Investors may be disappointed by Celanese Corporation‘s second quarter FY2023 earnings with a year-over-year decline of 49.3% in net income. However, total revenue did increase by 12.4%, indicating that the company is still seeing growth. With these results, investors should be cautious when considering investing in Celanese Corporation, as the company has not been able to turn revenue growth into net income growth. It will be important to watch the company’s performance and future earnings releases for further insight into its financial position.
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