Here's Why Celanese Stock Slumped This Week

Shares in chemicals and specialty materials company Celanese (NYSE: CE) slumped by 22.7% in the week to Friday morning. The move follows a disappointing set of fourth-quarter earnings released on Tuesday. In addition, investors were left unimpressed by management's guidance for 2025.Chemical companies are often highly cyclical. Weak demand conditions can lead to volume deterioration and a pricing slump, rapidly reducing earnings.That's pretty much what happened with Celanese in the fourth quarter. A 7% volume decline, a 2% pricing decline, and a 1% reduction from currency movements led to a 10% decline in sales. The ensuing margin reduction led to a year-over-year decline in adjusted earnings before interest and taxation (EBIT) from $434 million in the fourth quarter of 2023 to $333 million in the fourth quarter of 2024.Continue readingWeiter zum vollständigen Artikel bei MotleyFool Weiter zum vollständigen Artikel bei MotleyFool