Celanese Corp., a Dallas-based chemical and specialty materials supplier, saw a decline in profits during the second quarter due to soft demand and inventory destocking. The company reported a profit of $220 million, or $2.01 per share, compared to $434 million, or $3.98 per share, in the same quarter last year. Analysts polled by FactSet had anticipated per-share earnings of $2.28.
After adjusting for certain one-time items, the adjusted per-share earnings were $2.17, falling below analysts' forecast of $2.49, according to FactSet data. Despite revenue rising to $2.8 billion from $2.49 billion, it still fell short of the anticipated $2.96 billion.
Celanese experienced a 2% decrease in sales volume, as a 4% drop in prices offset the rise. The company attributed the decline in sales to soft demand, destocking in specific end-markets, and increased competition. Interestingly, Celanese managed to reduce its inventory balances by $235 million during the quarter.
This news highlights the challenges faced by Celanese in a competitive market with soft demand and destocking issues. The company will need to strategically navigate these hurdles to ensure future growth and profitability.