Dj Celanese Corporation, Inst Holders, 3Q 2024 (Ce)

Celanese Corporation CE and Henkel Corporation, a global leader in adhesives, sealants and functional coatings, have collaborated to improve circularity in emulsion production by incorporating carbon capture-based materials.

Celanese commenced a carbon capture and utilization (CCU) project at its Clear Lake, TX facility earlier this year as part of its Fairway Methanol joint venture with Mitsui & Co., Ltd. The CCU technology absorbs industrial CO2 emissions and uses hydrogen to convert them into methanol, which accounts for 35% of vinyl acetate monomer, a critical component in the production of polymers commonly used in adhesive formulations.

Through this collaboration, Henkel will develop water-based adhesives made from captured CO2 emissions, opening up new potential for customers in the packaging and consumer goods sectors to boost the renewable content of their products by retaining CO2 emissions in the manufacturing loop. As customers and the market continue to seek products with a lower environmental effect, CCU-based adhesives will play an important role in promoting sustainability in a variety of applications. The paper and board, envelopes and graphic arts, e-commerce, labeling and tissue and towel industries can all benefit from CCU adhesives and the Henkel-Celanese collaboration.

Henkel and Celanese are not only satisfying customer demand for more renewable content in packaging by investing in products created with innovative technologies, such as CCU, but are also making these solutions more accessible to consumer goods manufacturers.

Celanese’s shares have lost 43.1% in the past year compared with an 8.7% decline of the industry.

Celanese anticipates a fall in demand in the fourth quarter due to higher-than-normal seasonal destocking in automotive and industrial markets. The company will considerably reduce output to meet this demand level and generate cash through inventory drawdowns, even though it anticipates that this destocking will only last for the quarter.

Celanese expects adjusted earnings per share of around $1.25 for the fourth quarter based on these variables. It aims to create long-term shareholder value by improving earnings, reducing costs, expanding free cash flow and deleveraging the company.

Celanese Corporation Price and Consensus

Celanese Corporation price-consensus-chart | Celanese Corporation Quote

CE’s Rank & Key Picks

CE currently carries a Zacks Rank #5 (Strong Sell).

Better-ranked stocks in the basic materials space include Carpenter Technology Corporation CRS, IAMGOLD Corporation IAG and CF Industries Inc. CF.

Carpenter Technology currently carries a Zacks Rank #1 (Strong Buy). CRS beat the Zacks Consensus Estimate in each of the last four quarters, with the average earnings surprise being 14.1%. The company's shares have soared 157.2% in the past year. You can see the complete list of today's Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for IAG’s current-year earnings is pegged at 56 cents, indicating a year-over-year rise of 522.2%. The Zacks Consensus Estimate for IAG's current-year earnings has been going up in the past 30 days. IAG, a Zacks Rank #2 (Buy) stock, beat the consensus estimate in each of the last four quarters, with the average earnings surprise being 203.4%. The company's shares have rallied roughly 112% in the past year.

The Zacks Consensus Estimate for CF’s current-year earnings is pegged at $6.32 per share. CF, a Zacks Rank #1 stock, beat the consensus estimate in two of the last four quarters while missed twice, with the average earnings surprise being 10.3%. CF has rallied around 13.1% in the past year.

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