Back to top

Image: Bigstock

Celanese (CE) to Hike Prices of Acetyl Intermediates Products

Read MoreHide Full Article

Celanese Corporation (CE - Free Report) will raise list and off-list selling prices of acetyl intermediates products. The price hike will be effective immediately or as contracts permit.

The company will raise the prices of Acetic Acid by ¥300/MT in China and $55/MT in Asia Outside china (AOC). Prices of Acetic Anhydride will be hiked by ¥400/MT in China and $65/MT in AOC.

In AOC, prices of both Butyl Acetate and Ethyl Acetate will increase by $65/MT. Moreover, Vinyl Acetate Monomer price will be raised by ¥200/MT in China and $50/MT in AOC.

Celanese is taking appropriate pricing actions amid a volatile pricing environment for raw materials. The company’s strategic measures, including operational cost savings through productivity actions and pricing initiatives, are likely to provide an impetus to its earnings in 2018.

Celanese has outperformed the industry in a year’s time. While shares of the company have moved up around 19.4%, the industry saw a rough 7.2% rise.



Celanese, last month, raised its adjusted earnings per share guidance for 2018 to roughly $10.50-$10.75 based on strength across Engineered Materials (EM) and Acetyl Chain units. The company expects the Acetyl Chain momentum to continue in the third quarter. The company also expects Acetate Tow earnings to remain relatively flat year over year in 2018.

Sales from the EM unit increased year over year in the second quarter. Growth in Asia and the Americas, better product mix, recent acquisitions and project commercializations contributed to the division’s earnings. The company commercialized 733 projects in EM during the quarter and is on track to win nearly 3,000 projects this year.
 
However, Celanese saw lower volume and pricing in the second quarter in its Acetate Tow segment due to lower industry capacity utilization, partly masked by mix and productivity gains. The Acetyl Chain segment gained from improving acetyl industry fundamentals as well as higher volumes and pricing in the quarter.

Celanese Corporation Price and Consensus

 

Zacks Rank & Other Stocks to Consider

Celanese is a Zacks Rank #1 (Strong Buy) stock.

Some other top-ranked companies in the basic materials space are Huntsman Corporation (HUN - Free Report) , Air Products and Chemicals, Inc. (APD - Free Report) and Olympic Steel, Inc. (ZEUS - Free Report) .  

Huntsman has an expected long-term earnings growth rate of 8.5% and a Zacks Rank #1. The company’s shares have rallied 24.1% in the past year. You can see the complete list of today’s Zacks #1 Rank stocks here.

Air Products has an expected long-term earnings growth rate of 16.1% and a Zacks Rank #2 (Buy). Its shares have gained 7.7% in a year’s time.

Olympic Steel has an expected long-term earnings growth rate of 7.5% and carries a Zacks Rank #2. The stock has rallied 32.2% in a year.

Wall Street’s Next Amazon

Zacks EVP Kevin Matras believes this familiar stock has only just begun its climb to become one of the greatest investments of all time. It’s a once-in-a-generation opportunity to invest in pure genius.

Click for details >>