Celanese Posts Loss on Weak Demand

DALLAS -- Chemical maker Celanese (CE Quote) on Tuesday reported a fourth-quarter loss, driven by significantly lower sales volume on weak global demand and inventory destocking among its customers.

For the September-to-December period, the company posted a loss of $159 million, or $1.12 per share, from earnings of $214 million, or $1.27 per share, during the same period last year.

Results from the latest quarter include a $94 million charge primarily related to the closure of some operations in France and Mexico. The company also estimated a total non-cash inventory accounting impact of $101 million.

Excluding discontinued operations, the company reported a quarterly loss of 97 cents per share, compared with earnings of $1.23 per share in the prior-year period.

Excluding charges and other special items, the company recorded an adjusted loss of 38 cents per share, including 48 cents per share of inventory accounting adjustments.

Analysts polled by Thomson Reuters forecast a profit of 5 cents per share. Analyst estimates typically exclude one-time items.

Revenue fell 27% to $1.29 billion from $1.76 billion. Analysts forecast revenue of $1.42 billion.

For the full year, profit fell to $278 million, or $1.70 per share, from $426 million, or $2.49 per share, in 2007. Excluding discontinued operations, 2008 earnings were $2.29 per share, compared with $1.96 per share in the prior year. Revenue climbed 6% to $6.82 billion from $6.44 billion.

Celanese did not provide a full-year outlook for 2009, but said it expects earnings to improve from fourth-quarter levels throughout the year, as the impact of destocking and the negative effects of inventory accounting decrease. The company expects weak demand to continue, but margins to benefit from lower raw material and energy costs as the impact of inventory accounting subsides.