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Celanese to Hike Acetate Tow Prices in Eastern Europe & Asia
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Celanese Corporation (CE - Free Report) will raise prices of acetate tow product grades in Asia and Eastern Europe by $1.00/kg. The hike will be put into effect for orders shipped on or after Nov 1, or as contracts permit.
In the last few years, the company has undertaken significant cost-reduction actions to drive sustainability of its business and also ensure quality and security of the products delivered to customers. The company is taking price increase actions to attain more sustainability. Celanese is committed to acetate tow business as it continues to invest in manufacturing assets, service and innovation.
Celanese has outperformed the industry in a year’s time. While shares of the company are up around 12.7%, the industry saw a rise of around 1.6% over the same period.
The company’s strategic measures, including acquisitions and operational cost savings through productivity actions and efficiency enhancement, are likely to boost earnings in 2018. Earnings are expected to be driven by productivity actions, price hike actions and operational improvement.
In July, Celanese raised its adjusted earnings per share guidance for 2018 to roughly $10.50-$10.75 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 commercialization of project contributed to the division’s earnings.
Moreover, the Acetyl Chain segment gained from improving acetyl industry fundamentals as well as higher volumes and pricing in the quarter.
The company saw lower volume and pricing in the quarter at its Acetate Tow segment due to reduced industry capacity utilization, partly masked by mix and productivity gains. However, segment income rose year over year.
Some better-ranked companies in the basic materials space are Ingevity Corporation (NGVT - Free Report) , CF Industries Holdings, Inc. (CF - Free Report) and Air Products and Chemicals, Inc. (APD - Free Report) .
CF Industries has an expected long-term earnings growth rate of 6% and a Zacks Rank #2 (Buy). The company’s shares have gained 47% in the past year.
Air Products has an expected long-term earnings growth rate of 16.2% and a Zacks Rank #2. Its shares have risen 12.5% in a year’s time.
The Hottest Tech Mega-Trend of All
Last year, it generated $8 billion in global revenues. By 2020, it's predicted to blast through the roof to $47 billion. Famed investor Mark Cuban says it will produce "the world's first trillionaires," but that should still leave plenty of money for regular investors who make the right trades early.
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Celanese to Hike Acetate Tow Prices in Eastern Europe & Asia
Celanese Corporation (CE - Free Report) will raise prices of acetate tow product grades in Asia and Eastern Europe by $1.00/kg. The hike will be put into effect for orders shipped on or after Nov 1, or as contracts permit.
In the last few years, the company has undertaken significant cost-reduction actions to drive sustainability of its business and also ensure quality and security of the products delivered to customers. The company is taking price increase actions to attain more sustainability. Celanese is committed to acetate tow business as it continues to invest in manufacturing assets, service and innovation.
Celanese has outperformed the industry in a year’s time. While shares of the company are up around 12.7%, the industry saw a rise of around 1.6% over the same period.
The company’s strategic measures, including acquisitions and operational cost savings through productivity actions and efficiency enhancement, are likely to boost earnings in 2018. Earnings are expected to be driven by productivity actions, price hike actions and operational improvement.
In July, Celanese raised its adjusted earnings per share guidance for 2018 to roughly $10.50-$10.75 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 commercialization of project contributed to the division’s earnings.
Moreover, the Acetyl Chain segment gained from improving acetyl industry fundamentals as well as higher volumes and pricing in the quarter.
The company saw lower volume and pricing in the quarter at its Acetate Tow segment due to reduced industry capacity utilization, partly masked by mix and productivity gains. However, segment income rose year over year.
Celanese Corporation Price and Consensus
Celanese Corporation Price and Consensus | Celanese Corporation Quote
Zacks Rank & Stocks to Consider
Celanese is a Zacks Rank #3 (Hold) stock.
Some better-ranked companies in the basic materials space are Ingevity Corporation (NGVT - Free Report) , CF Industries Holdings, Inc. (CF - Free Report) and Air Products and Chemicals, Inc. (APD - Free Report) .
Ingevity has an expected long-term earnings growth rate of 12% and a Zacks Rank #1 (Strong Buy). The company’s shares have rallied 74.6% in the past year. You can see the complete list of today’s Zacks #1 Rank stocks here.
CF Industries has an expected long-term earnings growth rate of 6% and a Zacks Rank #2 (Buy). The company’s shares have gained 47% in the past year.
Air Products has an expected long-term earnings growth rate of 16.2% and a Zacks Rank #2. Its shares have risen 12.5% in a year’s time.
The Hottest Tech Mega-Trend of All
Last year, it generated $8 billion in global revenues. By 2020, it's predicted to blast through the roof to $47 billion. Famed investor Mark Cuban says it will produce "the world's first trillionaires," but that should still leave plenty of money for regular investors who make the right trades early.
See Zacks' 3 Best Stocks to Play This Trend >>