Back to top

Analyst Blog

Specialty materials company Celanese Corporation (CE - Analyst Report) announced that it will raise prices for vinyl acetate-based dispersions sold in Europe, the Middle East and Africa. Celanese will increase PVAc homopolymer, vinyl acetate ethylene (VAE) and vinyl copolymer dispersions prices by up to €50 per metric ton. The revision will be effective Apr 1, 2014, or as contracts permit.

This price revision is in addition to the previous price hike of up to €25 per metric ton for the same products, declared on Jan 17, 2014, which was effective from Feb 1 or as the contracts permit.

This price rise is also applicable in all the sectors including, but not limited to, adhesives, paints and coatings, building and construction, nonwovens, glass fiber, carpet, paper and textiles where vinyl acetate-based dispersions are used.

Celanese posted its fourth-quarter 2013 results on Jan 23. The company’s earnings (excluding one-time items) of $1.04 per share beat the Zacks Consensus Estimate of $1.01.
 
Earnings (as reported) from continuing operations came in at $4.16 per share in the quarter, as against a loss of $1.05 recorded a year ago.

Sales in the quarter were $1,616 million, up 7.7% year over year, surpassing the Zacks Consensus Estimate of $1,560 million.

For 2014, Celanese expects earnings growth on the back of company-specific initiatives to be consistent with its long-term growth plan. The company-specific initiatives including innovation of new products and enhancement of efficiencies through productivity are expected to drive earnings growth in 2014. Celanese expects to grow adjusted Earnings before Interest and taxes (EBIT) by roughly $100 million on the back of its strategic actions.
 
Celanese currently carries a Zacks Rank #3 (Hold).

Other companies in the chemical industry worth considering include Northern Technologies International Corp. , The Dow Chemical Company (DOW - Analyst Report) and PPG Industries Inc. (PPG - Analyst Report). While Northern Technologies carries a Zacks Rank #1 (Strong Buy), both Dow and PPG hold a Zacks Rank #2 (Buy).

Please login to Zacks.com or register to post a comment.

New to Zacks?

Start Here

Zacks Investment Research

Close

Are you a new Zacks Member or a visitor to Zacks.com?

Top Zacks Features

My Portfolio Tracker

Is it Time to Sell?

One of the most important steps you can take today is to set up your portfolio tracker on Zacks.com. Once you do, you'll be notified of major events affecting your stocks and/or funds with daily email alerts.

More Zacks Resources

Zacks Rank Home - Evaluate your stocks and use the Zacks Rank to eliminate the losers and keep the winners.

Mutual Fund Rank Home - Evaluate your funds with the Mutual Fund Rank for both your personal and retirement funds.

Stock/Mutual Fund Screening - Find better stocks and mutual funds. The ones most likely to beat the market and provide a positive return.

My Portfolio - Track your Portfolio and find out where your stocks/mutual funds stack up with the Zacks Rank.

Zacks #1 Rank Top Movers for Zacks #1 Rank Top Movers

Company Symbol Price %Chg
RPC INC RES 24.91 +8.35%
LITHIA MOTO… LAD 94.59 +4.60%
DELTA AIR L… DAL 39.15 +3.90%
FLAMEL TECH… FLML 14.51 +3.50%
SOUTHWEST A… LUV 28.87 +2.92%