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Celanese 3Q profit soars on tax gain; shares rise

DALLAS (AP) - Chemical maker Celanese Corp. on Tuesday said its third-quarter earnings more than doubled on a one-time tax benefit, but operational income tumbled on deteriorating sales prices and volumes.

The news sent shares jumping $2.57, or 9.9 percent, to $28.53 in morning trading. Earlier shares rose as high as $28.87, a new 52-week high.

Quarterly earnings climbed to $396 million, or $2.53 per share, up from $155 million, or 97 cents per share, in the same period last year.

Setting aside the $350 million tax gain, Celanese said lower raw material costs and weak global demand slashed prices for acetyl intermediates and industrial specialties products. The acetyl intermediates segment primarily serves customers in the chemical, paint and adhesives industries.

Excluding the tax benefit and other special items, adjusted earnings came to 58 cents per share, compared with adjusted earnings of 78 cents per share in the third quarter of last year.

Analysts polled by Thomson Reuters estimated a profit of 43 cents per share, on average. Analysts typically exclude one-time items.

Revenue slid 28 percent to $1.3 billion, down from $1.82 billion in the prior-year period. Analysts forecast an average revenue of $1.26 billion.

Looking ahead, Celanese plans to cut fixed spending by $100 million in 2010, as it streamlines manufacturing operations and administrative functions, including the closure of its facility in Pardies, France. The company also predicted a rise in volumes across all of its businesses and an adjusted tax rate in the low 20s percent range.

Celanese expects these changes to add $1 to earnings per share next year. Analysts predict 2009 and 2010 earnings of $1.46 per share and $2.29 per share, respectively.

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