03 February 2009 20:19 [Source: ICIS news]
(Adds David Weidman statements throughout)
HOUSTON (ICIS news)--Celanese chief executive David Weidman on Tuesday characterised his company's fourth quarter as "very chilly" as the global recession seemed to freeze demand everywhere.
"There was huge destocking in that space," Weidman said in an earnings conference call. "It was very chilly in the fourth quarter."
The freeze in the September-to-December period led the Dallas-based company to post a quarterly loss of $159m (€124m), compared with a profit of $214m during the same period last year.
Celanese's full-year profit of $278m represented a 34% decline from $426m earned in 2007.
Weidman noted that historically weak market conditions had brought about a huge change for the company late in the year, coupled with an unprecedented inventory destocking by customers.
The destocking also affected Celanese's big bet on acetic acid production in ?xml:namespace>
In April 2008, Weidman said he expected acetic acid pricing in
Celanese's current pricing for acetic acid produced in
US Gulf acetic acid contract prices have dropped almost 30% since April 2008, currently in a range of $500-600/tonne during the week ended 3 February, according to global chemical intelligence service ICIS pricing.
Weidman said he expected destocking in
"We would expect volumes to remain under pressure in 2009, even with the easing of inventory destocking," Weidman said.
($1 = €0.78)
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