Celanese Corporation Reports 6% Decline in Net Sales and Significant Operating Loss for Fiscal Year 2024

Celanese Corporation reported a significant decline in its financial performance for the fiscal year ended December 31, 2024, with net sales of $10.28 billion, a decrease of 6% from $10.94 billion in 2023. The company experienced a substantial operating loss of $697 million, compared to an operating profit of $1.69 billion in the previous year. This downturn was primarily attributed to lower pricing and volume across its segments, particularly in the Engineered Materials segment, which faced competitive market dynamics and reduced demand in the automotive sector. The Acetyl Chain segment also saw a decline in pricing, although it managed a slight increase in volume.

The company's gross profit fell to $2.36 billion from $2.60 billion, reflecting a decrease of $247 million. Notably, Celanese recorded a non-cash goodwill impairment loss of $1.5 billion in its Engineered Materials segment, which significantly impacted its overall profitability. Other charges, including asset impairments and restructuring costs, totaled $1.74 billion, further exacerbating the financial challenges faced by the company. In contrast, selling, general, and administrative expenses decreased slightly, indicating some cost control measures were effective.

Strategically, Celanese made significant moves during the year, including the formation of a joint venture named Nutrinova with Mitsui & Co., which involved the contribution of its food ingredients business. This joint venture is expected to enhance the company's capabilities in the food ingredients market. Additionally, the company completed the acquisition of DuPont's Mobility & Materials business in November 2022, which has been integrated into its operations, although the anticipated synergies from this acquisition have yet to materialize fully.

Operationally, Celanese employed 12,163 people globally as of December 31, 2024, a slight increase from the previous year. The company continues to focus on geographic expansion and product adoption, particularly in high-value applications such as automotive and medical sectors. However, the overall market conditions remain challenging, with demand weakness noted in several key sectors, including automotive and industrial markets.

Looking ahead, Celanese has indicated a cautious outlook, emphasizing its commitment to deleveraging and improving cash flow. The company announced plans to reduce its quarterly dividend by approximately 95% starting in the first quarter of 2025, reflecting its focus on financial stability amid ongoing market pressures. The management remains optimistic about long-term growth opportunities, particularly through its strategic initiatives and investments in innovation and sustainability.