Chemical giant Celanese faces mounting challenges as demand for its acetyl products hits a 20-year low in Western markets, despite surpassing Q2 earnings expectations. The company reported $2.53 billion in revenue (above forecasts) and $1.44 EPS (beating estimates), but shrinking order visibility—now just two weeks—reveals deeper struggles. Weakness in China’s auto sector spread to Europe and the U.S., prompting aggressive inventory reductions ($25 million planned for Q3) and cost cuts, including layoffs targeting $80–90 million in annual savings.
Cash Flow Shields Outlook
Free cash flow surged 80% year-over-year to $371 million in H1, keeping the $700–800 million annual target intact. Management maintains a long-term goal of $2 EPS per quarter, though delays are likely. Potential bright spots include U.S. production reshoring and new EV projects from German automakers, which could revive demand. Shares remain depressed at $48.05, far below their 52-week high of $142.54.
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