MOSCOW (MRC) -- Celanese Corp.'s profit fell in its second quarter as higher material costs and the stronger dollar hurt results, but the specialty materials maker still increased its earnings outlook for the year, said the producer in its press release.
The strong dollar has caused headwinds for the company, making its products more expensive overseas. In recent months, Celanese has increased the prices of some of its chemical compounds in the U.S., South America, Europe and Asia.
The company raised its earnings guidance for the year to USD5.70 to USD6, up from its previous projection of USD5.60 to USD5.90. "As we look to the remainder of 2015, we are confident in our ability to drive unique value in both of our cores despite year-over-year currency headwinds and the recent stress in the global macroeconomic environment, primarily due to the recent uncertainty in China," Chief Executive Mark Rohr said.
For the period ended in June, the company posted a profit of USD201 million, or USD1.33, down from a year-earlier profit of USD258 million, or USD1.66 a share. Excluding certain costs, the company posted an adjusted profit of USD1.58 a share, up from USD1.47 in the previous year. Revenue fell 16.5%, to USD1.4 billion.
Analysts polled by Thomson Reuters had been projecting earnings of USD1.42 a share on revenue of USD1.6 billion. The Dallas-based company's value drivers are its materials solutions and acetyl chain segments. The materials solutions segment includes products for a variety of automotive and consumer electronic designs as well as medical, food and beverage products. Its acetyl chain segment produces products for the chemicals, paints and coatings industry.
By segment, revenue in its material solutions, which includes its advanced engineered materials and consumer specialties, fell 12.2% to USD595 million.
Meanwhile, revenue for its acetyl chain, which includes acetyl intermediates and industrial specialities, fell 18.7% to USD911 million. Mr. Rohr said its acetyl chain's margins fell due to higher raw material costs.
Shares of Celanese, up 8% over the past 12 months, rose 1% to USD69.87 in after hours trading.
Celanese Corporation is a global technology leader in the production of differentiated chemistry solutions and specialty materials used in most major industries and consumer applications. Based in Dallas, Texas, Celanese employs approximately 7,500 employees worldwide and had 2014 net sales of USD6.8 billion.