Specialty materials company
) reported second-quarter 2012 adjusted earnings (excluding
one-time charges) of $1.47 per share, down from $1.66 a year ago.
This marked the second highest quarterly adjusted earnings in the
The results exceeded the Zacks Consensus Estimate of $1.40.
Profit, as reported, rose 3.4% year over year to $210 million (or
$1.31 per share).
Revenues and Margins
Sales for the quarter were $1,675 million, down 4% year over
year, missing the Zacks Consensus Estimate of $1,765 million. The
decline was due to lower pricing in the company's acetyl
intermediates business, a weakened European economy and slower
growth in Asia.
Advanced Engineered Materials:
Sales decreased 6.6% year over year to $323 million in the second
quarter, due to lower volumes resulting from weak demand from
industrial goods and electronics as well as unfavorable currency,
partly offset by 2% rise in prices. Operating EBITDA rose 6.5% to
$114 million due to higher prices and increased equity
Sales rose 12.4% year over year to $327 million, driven by a 7%
increase in prices and a 6% increase in volumes. Production was
hindered during the first quarter of 2012 in the company's Acetate
Products business, which led to shift of additional volume in the
Operating EBITDA rose 14.3% to $168 million on improved volumes
and expanded margins. The results also included increased dividends
from the company's acetate China ventures which totaled $83
million, a 6.4% year over year increase.
Net sales decreased marginally from the year ago quarter to $327
million. Volumes increased 5% in North America and Asia, but were
offset by unfavorable currency translation, primarily the
euro.Operating EBITDA increased 17.5% to $47 million due to higher
volumes and low raw material costs.
The segment witnessed a 10.2% decline in sales to $821 milliondue
to lower acetyl pricing. The segment was impacted byweak economic
conditions in Europe and slow growth in Asia, which affected demand
and pricing. Operating EBITDA decreased 44.1% to $99 million due
Cash and cash equivalents were $800 million as of June 30, 2012,
versus $682 million as of December 31, 2011. The company's
long-term debt stood at $2,845 million as of June 30, 2012,
compared with $2,873 million as of December 31, 2011. Net debt at
the end of the second quarter was $2,176 million, a $159 million
decrease from the end of 2011.
Celanese expect the challenging economic conditions to prevail
in Europe and the current growth rates in Asia to continue for the
rest of 2012. As such, the company expects earnings per share in
the second half of 2012 to be slightly below the first half of the
Celanese, which competes with
), currently retains a Zacks #3 Rank, reflecting a short-term (1 to
3 months) Hold rating. We have a long-term (more than 6 months)
Neutral recommendation on the stock.
BASF SE (BASFY): Free Stock Analysis Report
CELANESE CP-A (CE): Free Stock Analysis Report
METHANEX CORP (MEOH): Free Stock Analysis
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