News

Celanese cut its full-year 2011 adjusted earnings outlook to $4.45/share, 15 cts-25 cts below previous estimates, citing weak European demand for acetyl intermediates. Celanese’s updated outlook implies fourth-quarter adjusted earnings of 56 cts/share, about 31% below the average analyst estimate as reported by Thomson Reuters (New York).

“Near-term uncertainty in Europe translated into more cautious buying behavior at the end of the quarter resulting in lower fourth quarter volumes and lower earnings than we previously expected,” says David Weidman, Celanese chairman and CEO. Weidman adds that order patterns are improving in the first quarter, and says the company expects full-year 2012 earnings to be above current analyst estimates of $4.70/share.

Lower end-market demand in Europe caused sharp inventory destocking in the acetyl Intermediates business, which temporarily compressed margins in the fourth quarter of 2011, Celanese says. The company estimated an impact from destocking of approximately 10 cts/share to adjusted earnings related to FIFO accounting and other inventory items. Celanese also noted a “modest impact” to volumes in its engineering plastics segment. Celanese will host a conference call to discuss the preliminary 2011 estimate on Wednesday morning.