Celanese Corporation (CE Quick QuoteCE - Free Report) will hike the selling prices of certain products. The company will raise price of Low Density Polyethylene by 4 cents per lb in the Americas. This price hike will be effective from Feb 1, 2018 or as contracts permit.

 

Also, prices of Hostaform / Celcon Polyacetal (POM) grades will increase by 30 cents per kg in Asia, Europe and the Americas. Moreover, prices of PBT grades as well as Pibiflex and Riteflex will rise by 25 cents per kg and 55 cents per kg in Asia and America, respectively. In Europe, prices of the same products will be increased by 20 cents per kg and 45 cents per kg, respectively. While price of LCP grades will increase 7% in Europe and America, it will rise by 10% in Asia. These price hikes will be effective from Feb 15 or as contracts permit.

 

Celanese is taking appropriate pricing actions amid a volatile raw material pricing environment. In third-quarter 2017, pricing improvement drove margins in its Acetyl Chain unit. 

 

In a year, the company has outperformed the industry. Shares of Celanese have moved up around 32.8% compared with roughly 30.2% gain recorded by the industry.

 

 

The company expects business and productivity momentum to offset fourth-quarter weakness. Additionally, Celanese is optimistic about achieving adjusted earnings per share growth at the high end of the previously announced guidance of 9-11% for 2017.

 

Celanese’s strategic measures including operational cost savings through productivity actions and pricing initiatives are likely to lend support to its earnings in 2017. Moreover, the company is poised to gain from growth initiatives that include acquisitions. Meanwhile, it remains focused on returning value to shareholders.

Celanese Corporation Price and Consensus

 

Celanese carries a Zacks Rank #3 (Hold).

 

Some better-ranked stocks in the basic materials space are Kronos Worldwide Inc. (KRO Quick QuoteKRO - Free Report) , Methanex Corporation (MEOH Quick QuoteMEOH - Free Report) and Huntsman Corporation (HUN Quick QuoteHUN - Free Report) , all sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

 

Kronos Worldwide has an expected long-term earnings growth of 5%. Its shares skyrocketed 112.2% over a year.

 

Methanex has an expected long-term earnings growth of 15%. Shares of the company rallied 32.3% in a year.

 

Huntsman has an expected long-term earnings growth of 8%. Its shares soared 69.1% over a year.

 

 

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