Chemical company Celanese Corporation (CE - Analyst Report) declared that it will raise the price of acrylic-based emulsions– pure acrylic and styrene acrylic emulsions – by up to 4 cents per wet pound and vinyl acrylic emulsions by up to 2 cents per wet pound in the Americas. The price hike will be effective Sep 30, 2013, or as per the contracts.
The price hike will affect all applications where pure acrylic and styrene acrylic emulsions and vinyl acrylic emulsions are used including, but not limited to, in the adhesives, paints and coatings, building and construction, nonwovens, glass fiber, carpet, paper and textiles.
Earlier to this, Celanese had increased the price of pure acrylic and styrene acrylic emulsions by up to 8 cents per wet pound and vinyl acrylic emulsions by up to 3 cents per wet pound in the Americas on Jan 25, 2013. The price hike was effective from Feb 18, 2013 or as per the contracts.
Celanese’s styrene acrylic copolymer emulsions are used in numerous industrial and consumer end-use applications, including in architectural decorative coatings, construction products like ceramic tile adhesives, fillers, putties and elastomeric roof coatings and glass-fiber secondary binder applications, like wall coverings.
Celanese uses pure acrylic emulsions in the formulation of the industrial and consumer end-use products including architectural decorative coatings for interior and exterior use, industrial coatings, including wood stains, window frame coatings, furniture and parquet varnishes, metals and plastic coatings, building materials and glass-fiber secondary binders for tissues and veils.
Celanese made vinyl acrylic emulsions are used in architectural paints and coatings, non-woven, engineered fabrics, paper saturation for industrial and consumer end-use applications.
Celanese posted its second-quarter 2013 results on Jul 18. Both revenues and adjusted earnings for the quarter missed the Zacks Consensus Estimate. Celanese expects challenging economic conditions to continue through 2013, but expects earnings to rise on the back of company-specific initiatives.
Celanese has taken up cost-cutting measures and the necessary steps to run its plants more efficiently to counter weak demand. Moreover, it is aggressively expanding capacity in the emerging Asian markets. The company’s strong presence in emerging markets should enable it to deliver incremental earnings in 2013.
Celanese currently has a Zacks Rank #3 (Hold).
Other chemical companies having a favorable Zacks Rank are Eastman Chemical Co. (EMN - Analyst Report), Akzo Nobel (AKZOY) and Ferro Corporation (FOE - Snapshot Report). All of them carry a Zacks Rank #2 (Buy).