Chemical Week - November 4/11
Mixed Q3 shows lumpy recovery, cautious optimism
Clay Boswell 2024-11-08 08:19:12
Commodity and diversified chemical producers in the Americas have turned in mixed third-quarter results. Most reported stable trough conditions, but some saw modest improvements, while others reported unexpected deterioration, particularly in automotive. Many expressed hope that stimulus measures will pay off in 2025.
LyondellBasell Industries NV reported adjusted earnings per share (EPS) of $1.88, down 24% year over year and short of the analysts’ consensus estimate of $1.96, as compiled by S&P Capital IQ. Strong results in olefins and polyolefins were more than offset by lower margins and volumes in other segments. Looking ahead, LyondellBasell expects seasonally softer demand during the fourth quarter and easing interest rates that will improve demand for durable goods during 2025.
Westlake Corp. reported adjusted EPS of $1.41, down 36% year over year and 37% below the consensus. “[G]lobal macroeconomic trends modestly improved [...] with relatively solid and improving conditions in North America, a continuing recovery in Asia and slow improvement in Europe,” said Jean-Marc Gilson, president and CEO. Gilson said recovery from the recent trough in global industrial and manufacturing activity remains uneven, but he was hopeful that recent monetary and fiscal stimulus would accelerate the pace and duration of macroeconomic recovery.
Orbia Advance Corp. reported adjusted EPS of 5 cents, up 25% year over year and ahead of the consensus estimate of 2 cents. Conditions in the polyvinyl chloride (PVC) market have not recovered as anticipated, said CEO Sameer Bharadwaj. “We remain in the trough of the cycle, which we expect will continue through the balance of the year.”
Eastman Chemical Co. reported adjusted EPS of $2.26, up 54% year over year and 6% above estimates. The company cited an end to inventory destocking in most key end markets.
Celanese reported adjusted EPS of $2.44, down 2% year over year and below the consensus of $2.84. Celanese said demand remained weak in key end markets such as paints, coatings and construction and quickly deteriorated in the automotive and industrial segments, particularly in Europe. “We expect demand conditions to worsen in the fourth quarter, as automotive and industrial segments react to recent dynamics by seasonally destocking at heavier than normal levels,” said Chair and CEO Lori Ryerkerk. In response, the company will significantly slow production and draw on inventory. The company also intends to temporarily cut the quarterly dividend by 95%.
DuPont reported adjusted EPS of $1.18, up 28% year over year and 15% above estimates. “We are benefiting from continued demand recovery in electronics while also seeing improvement in our water and medical packaging end-markets,” said CEO Lori Koch.
©IHS Global, Inc.. View All Articles.