Celanese posts record Q1, predicts strong 2008

22 April 2008 04:26  [Source: ICIS news]

SINGAPORE (ICIS news)--US chemicals producer Celanese late on Monday reported strong earnings for its first-quarter to 31 March 2008 and a rosier 2008 financial outlook due to healthy performance in its acetyl and Asian units.

The firm reported a 13.6% rise in first-quarter operating profit to $234m (€147m) from $206m a year earlier despite ongoing sluggish demand in certain North America consumer segments and negative impact of high raw material and energy costs.

It cited higher sale prices and volumes in its acetyl intermediates and downstream sectors, strong growth figures in Asian units and favourable currency exchange impacts from its global presence for the good performance.

Its net earnings, however, fell 27.9% to $145m from $201m in the previous corresponding period as 2007 figures included $79m of earnings from discontinued operations from the firm’s divestiture of its oxo alcohol business and closure of its Edmonton methanol facility in 2007.

The firm’s acetyl intermediates sector experienced the strongest growth year-on-year as net sales rose 31% to 1.10bn on the back of volume growth from its Nanjing acetic acid unit, as well as higher prices and demand for acetyl products across North America, Europe and Asia.

Other sectors such as the advance engineering materials, consumer specialties and industrial specialties sectors saw net sales figures up 12.2%, 5.0% and 5.5% respectively.

Looking ahead, Celanese raised its 2008 full year forecast operating earnings before interest, tax, depreciation and amortization (EBITDA) to between $1.36bn and $1.42bn, from the previous range of between $1.29bn and $1.36bn based on its continued growth strategy across all businesses.

In February 2008, Celanese posted a fourth-quarter adjusted earnings per share (EPS) of 93 cents, well ahead of market expectations of 81 cents, said London-based bank HSBC.

The chemical firm also predicted a bullish outlook for its acetyl chain through the end of the decade.   

($1=€ 0.63)

By: Serene Cheong
+65 6780 4359

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