((Automated translation by Reuters, please see disclaimer https://bit.ly/rtrsauto))
Chemical manufacturer Celanese
CE.N beat first-quarter profit estimates on Wednesday, helped by a steady rise in demand for its products amid persistent inventory clearance.
Destocking, a process by which companies get rid of excess inventory, has affected chemical companies due to weak demand. However, this trend is expected to slow this year as demand recovers in key regions such as the United States, Europe and China.
The company said volumes increased 5% “sequentially” due to a “modest increase in demand in Asia and a seasonal recovery in the Americas and Europe”, and that prices increased 1%. .
“We have seen the financial benefits of actions taken over the past year materialize, particularly within M&M’s legacy portfolio,” said Lori Ryerkerk, the company’s chief executive officer.
The Dallas-based company also raised its second-quarter earnings per share forecast to between $2.60 and $3.00. Analysts on average expected earnings of $2.92 per share for the same period.
The company reported adjusted earnings of $2.08 per share for the quarter ended March 31, compared with analysts’ estimate of $1.91, according to LSEG data.