Celanese Shares Slide 21% on Production Cuts, Slashed Dividend
By Ben Glickman
Shares of Celanese fell sharply Tuesday morning after the chemicals supplier slashed its dividend and said it would sharply slow production following weak demand in its latest quarter.
The stock was down 21% to $97.51 in pre-market trading, which would be its largest percent drop since November 2008. Shares are down about 21% this year.
The Dallas-based company said Monday afternoon that it would take multiple steps to match low demand, including temporarily idling production facilities, cutting costs in selling, general and administrative expenses and closing on a $1 billion delayed-draw term loan.
Celanese said it was temporarily reducing its quarterly dividend by about 95% in the first quarter of 2025, which it described as "a prudent and cost-effective path forward to support deleveraging."
The company saw continued weak demand in end-markets such as paints, coating and construction, as well as in the automotive and industrial segments. Celanese said it expects demand to worsen in the fourth quarter.
Celanese's revenue and profit both fell in the third quarter and missed Wall Street's expectations.
Write to Ben Glickman at ben.glickman@wsj.com
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