Back to top

Analyst Blog

Chemical company Celanese Corporation (CE - Analyst Report) announced that it plans to build a methanol production unit at its facility in Bishop, TX. The company is preparing for necessary environmental permits to build the unit.

The facility is expected to have a capacity of 1.3 million tons per annum. The unit will use low-cost natural gas in the U.S. Gulf Coast region as a feedstock and would benefit from the existing infrastructure at the site.

The methanol unit to be constructed at Bishop will have similar scope and scale as the methanol unit which is under construction at the company’s Clear Lake, TX facility. Celanese will also consider a joint venture for the Bishop unit in the same way as it has undertaken a joint venture for its methanol unit under construction at the Clear Lake.

The Bishop facility is bestowed with good infrastructure and provides economies of scale along with strategically upstream production of methanol. The plant has been acknowledged as a global leader in environmental, health and safety performance by many industry, state and federal organizations. The facility manufactures specialty chemicals, engineered materials and pharmaceutical products.

Celanese is a global technology and specialty materials company that engineers and manufactures a wide variety of products necessary for everyday life. The company 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 plans. The company-specific initiatives including innovation of new products and enhancement of efficiencies through productivity are expected to drive earnings in 2014. Celanese expects to increase 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 PPG Industries Inc. (PPG - Analyst Report), Cytec Industries Inc. (CYT - Snapshot Report) and The Dow Chemical Company (DOW - Analyst Report), each carrying a Zacks Rank #2 (Buy).

Please login to or register to post a comment.

New to Zacks?

Start Here

Zacks Investment Research


Are you a new Zacks Member or a visitor to

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 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
UTD THERAPE… UTHR 117.83 +28.51%
TRIQUINT SE… TQNT 20.67 +6.52%
RF MICRO DE… RFMD 12.47 +6.04%
VASCO DATA… VDSI 14.77 +4.68%
BANCO DO BR… BDORY 15.53 +3.95%