Celanese Corporation (NYSE:CE) stock fell 2.20% (As on November 7, 11:44:21 AM UTC-4, Source: Google Finance) after the company posted better than expected results for the third quarter of FY 23. Celanese took actions to reduce costs, align production and inventory levels with demand, and maximize cash generation in response to unfavorable demand and competitive dynamics. As a result, the Company reduced inventory balances by $177 million in the third quarter with inventory reductions across Engineered Materials and the Acetyl Chain of 7 percent and 6 percent, respectively; generated third quarter operating cash flow of $403 million and free cash flow of $268 million; and reduced net debt by $758 million in the third quarter, including a $697 million sequential decrease in debt and a $61 million sequential increase in cash.

CE in the third quarter of FY 23 has reported the adjusted earnings per share of $2.50, beating the analysts’ estimates for the adjusted earnings per share of $2.20, according to Zacks Investment Research. The company had reported 3 percent fall in the adjusted revenue to $2.72 billion in the third quarter of FY 23, missing the analysts’ estimates for revenue of $2.76 billion.

For the current quarter ending in December, Celanese expects its per-share earnings to range from $2.10 to $2.50, reflective of controllable actions, improvement in destocking conditions, and typical cold weather seasonality. The company expects full-year earnings in the range of $9 to $10 per share, inclusive of approximately $1.20 per share of M&M transaction amortization.

Meanwhile, the company has completed the formation of Nutrinova, a Food Ingredients JV with Mitsui & Co., Ltd.,. Celanese contributed the assets, technology, and employees of its Food Ingredients business of which Mitsui acquired a 70 percent stake at a purchase price of $503 million, including closing adjustments. The company has also announced the planned closure of the Company’s nylon 66 (PA66) and high-performance nylon (HPN) polymerization units in Uentrop, Germany. Polymerization costs at Uentrop are the highest in the Celanese global nylon network due to energy and raw material costs in the region. The Company plans to cease PA66 and HPN polymerization at Uentrop by January 1, 2024 and February 1, 2024, respectively. The company has ceased production at Engineered Materials production facilities in Campo Bom, Brazil; Berazategui, Argentina; and Wehr, Germany in September and October.