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Celanese slumps after poor fourth-quarter outlook and dividend cut – 11/04/2024 at 10:47 p.m.

((Automated translation by Reuters, please see disclaimer https://bit.ly/rtrsauto))

November 4 – **Shares of chemical company Celanese CE.N fall about 14% to $106 in extended trading

** Company temporarily cuts dividend and forecast fourth-quarter earnings per share well below estimates, due to continued weak demand in key markets including paints, construction and automotive

**Company says it will “temporarily reduce” quarterly dividend by ~95% starting Q1 2025

**CE also falls short of Q3 earnings expectations, with adjusted EPS of $2.44, well below analyst estimates ($2.85), according to LSEG data

**Q4 earnings per share expected to be around $1.25, compared to estimates of $2.93

** In the third quarter, “we had to face a very constrained demand environment which, in certain cases such as that of automobiles, deteriorated rapidly… and the profits generated were not up to par. lives up to our expectations” – Lori Ryerkerk, general manager of LSEG

** “We expect demand conditions to worsen in (Q4) as the automotive and industrial segments (destock) at higher than normal levels…we will significantly slow our production to meet this level of demand” – Ryerkerk

**Company says it is reducing manufacturing costs through the end of 2024 by temporarily shutting down production facilities in all regions

** Year to date, CE is down ~21% until last close

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