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Celanese reviews options: Bloomberg
Posted on Tuesday, 08 October 2019 08:58
Celanese, one of the more prominent players in the chemical and speciality materials space, is in the early stages of a strategic review, people with knowledge of the process told Bloomberg.

According to the sources, who declined to be named as the information is confidential, the evaluation may prompt the Fortune 500 Texan manufacturer to split up its business, though there is no certainty this would happen.

When contacted by Bloomberg, a spokesperson declined to comment on the matter; the news provider noted a breakup would be merely the latest such transaction within the sector in recent months.

Celanese makes high performance engineered polymers that are used in a variety of high-value applications, as well as acetyl products, which are intermediate chemicals, for nearly all major industries.

The company, which closed yesterday with a market capitalisation of USD 14.78 billion, also engineers and manufactures a wide variety of items essential to everyday living.

Its broad portfolio serves a diverse set of end-use applications, including automotive, construction, consumer and industrial adhesives, food and beverage, paints and coatings and textiles.

Celanese said in its report for the three months ended 30th June 2019 the current environment is weak and challenging, in part due to a “multitude of macro influences at play”, such US-China trade tensions.

The company booked diluted earnings of USD 1.67 apiece and adjusted earnings of USD 2.38 per share in Q2 2019, which represented a 9.0 per cent decline on the prior quarter.

“Amid the current weak environment, net sales of USD 1.59 billion were down 6.0 per cent as the company effectively limited sequential declines in volume and price to 2.0 per cent and 3.0 per cent, respectively.”

Celanese posted a net profit attributable to the company of USD 546.00 million on revenue of USD 3.28 billion in H1 2018, compared to USD 707.00 million on USD 3.70 billion in H1 2018.

The company has three reportable business segments: engineered materials; acetate tow; and acetyl chain.

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