Celanese slumps after dismal Q4 outlook, reduction in dividend
** Shares of chemical firm Celanese CE.N fall ~14% to $106 in extended trading
** Co temporarily cuts dividend, forecasts Q4 EPS widely below estimates, blaming persistent demand weakness across key markets including paints, construction and automotive
** Says it will "temporarily reduce" quarterly dividend by ~95% beginning in Q1 2025
** CE also misses Q3 earnings expectations, with adjusted EPS of $2.44 falling well below analysts' estimate of $2.85, per LSEG data
** Sees Q4 EPS of roughly $1.25, versus estimates of $2.93
** In Q3, "we faced a severely constrained demand environment that, in some cases like auto, degraded swiftly ... and the earnings generated fell short of our expectations" - CEO Lori Ryerkerk
** "We expect demand conditions to worsen in (Q4), as automotive and industrial segments (destock inventories) at heavier than normal levels ... we will significantly slow our production to match this demand level" - Ryerkerk
** Co says it is reducing manufacturing costs through the end of 2024 by temporarily idling production facilities across all regions
** YTD, CE is down ~21% through last close
Reporting by Deborah Sophia in Bengaluru
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