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Celanese’s Revenue and Income Fell in 3Q15

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Celanese’s price movement

Celanese (CE) has a market cap of $9.8 billion. Its YTD (year-to-date) price movement is a mix of ups and downs in 2015. After the earnings report in 3Q15, it fell by 0.54% to close at $63.99 per share as of October 19, 2015. The price movement on a weekly, monthly, and YTD basis is -0.37%, 5.6%, and 8.2%, respectively.

Technically, it has broken the support of the 20-day, 50-day, and 200-day averages throughout 2015. Currently, it’s trading at 3.2% above the 20-day moving average, 3.9% above the 50-day moving average, and 3.2% above the 200-day moving average.

The Global X Guru ETF (GURU) invests 2.7% of its holdings in Celanese. GURU tracks an equal-weighted index that attempts to mimic concentrated equity positions taken by large hedge funds, as reported in public filings.

Celanese’s competitors and their market caps are:

  • Dow Chemical (DOW) – $54.9 billion
  • LyondellBasell Industries NV (LYB) – $43.5 billion
  • Ecolab (ECL) – $35.2 billion
  • Eastman Chemical Company (EMN) – $10.3 billion
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Celanese’s performance in 3Q15

The company reported net revenue of $1,413 million in 3Q15—a fall of 4.3% compared to the net revenue of $1,477 million in 2Q15. The cost of sales as a percentage of sales fell by 5.4% in 3Q15. The net income and EPS (earnings per share) fell to $151 million and $1.07 per share in 3Q15—a fall of 24.9% and 19.5% on a quarterly basis. The cash and cash equivalents and inventories rose by 3.6% and 3.1% in 3Q15. The current ratio fell to 1.84 and the long-term debt-to-equity ratio rose to 0.79 in 3Q15—compared to the current ratio and long-term debt-to-equity of 2.30 and 0.73 in 2Q15.

In 3Q15, some of Celanese’s key activities were:

  • Celanese declared a quarterly dividend of $0.30 per share on its Series A common stock.
  • The company opened the Celanese Commercial and Technology Center in Mexico.
  • The company introduced Celanese Polyphenylene Sulfide (PPS) to the Japanese Market to meet product quality and material specification.
  • The company approved a new $1 billion share repurchase over the next two years.

About Celanese

Celanese is a global technology company. It produces chemistry solutions and specialty materials used in major industries and consumer applications.

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