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Celanese Raises Prices of Formaldehyde Solutions in Americas

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Chemical and advanced materials maker, Celanese Corporation (CE - Free Report) announced that it will increase list and off-list selling prices for formaldehyde solution 50% by 2 cents per pound and formaldehyde solution 37% by 1.5 cents per pound in North and South America.
    
Celanese had announced that it is hiking the list and off-list selling prices of acetic acid by €40/MT in Europe, a few days ago. The price hike will be effective immediately or as contracts permit.

Celanese kept its earnings streak alive with a beat in third-quarter 2016. Moreover, its adjusted earnings of $1.67 per share increased 11.3% year over year. In the reported quarter, the company entered into a definitive agreement to fully acquire Forli, Italy-based SO.F.TER. Group, one of the largest independent thermoplastics compounders in the world. This acquisition will nearly double the number of Celanese global engineered materials platforms.

The company retained its expectations of 8–10% growth in adjusted earnings per share for 2016, factoring in the benefits of productivity actions and operational excellence as well as strength of commercial models.

Celanese’s strategic measures including productivity and efficiency improvement actions should lend support to its earnings in 2016. Further, the company is expected to gain from capacity expansion and growth initiatives in the emerging regions. Moreover, Celanese continues to generate strong cash flows and remains focused on returning value to its shareholders.

Celanese currently carries a Zacks Rank #2 (Buy).

Stocks to Consider

Some other well-placed companies in the chemical space include Koppers Holdings Inc. (KOP - Free Report) , The Chemours Company (CC - Free Report) and Kronos Worldwide, Inc. (KRO - Free Report) , all sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Koppers Holdings has an expected long-term growth of 10%.

Chemours has an expected long-term growth of around 15.5%.

Kronos Worldwide has an expected long-term growth of around 5%.

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