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Celanese (CE) Hikes Prices of Acetic Anhydride in China

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Chemical and advanced materials maker Celanese Corporation (CE - Free Report) has decided to raise the list and off-list selling prices for acetic anhydride by RMB500/MT in China. The price hike will be effective immediately, or as contracts permit.

Recently, the company also increased the list and off-list selling prices of MIBK by 3 cents per pound in North and South America. Prices of formaldehyde solution 50% were also raised by a cent per pound and formaldehyde solution 37% by 0.75 cents per pound, both in North and South America. The price hike is effective from Jul 11, 2016, or as contracts permit.

Of late, Celanese had also raised the price of both Ateva EVA and LDPE polymers by 5 cents in North and South America, effective from Jul 1, 2016, or as contracts permit.

Global growth remains sluggish, while raw materials face deflationary trends in a world under severe geopolitical strain. However, emulsions in Europe have started performing better and the high-season for the company is approaching in this region. Demand in China has also picked up and the figure is improving, despite less-than-satisfactory sales in both the regions.

Celanese’s adjusted earnings for first-quarter 2016 were $1.83 per share, indicating a 6% increase from the prior-year quarter. Earnings per share also beat the Zacks Consensus Estimate of $1.52. Although revenues dipped roughly 3% year over year to $1,404 million in the quarter, the figure beat the Zacks Consensus Estimate.

Celanese also raised its outlook for 2016. It now expects an improvement of 8−10% in earnings per share compared with 5−10% growth estimated earlier. The company intends to pursue commercial discipline as well as excellence in operation and productivity to survive and grow in the current environment.

Celanese currently carries a Zacks Rank #4 (Sell).

Some better-ranked companies in the chemicals industry include Axiall Corporation , Stepan Company (SCL - Free Report) and FMC Corp. (FMC - Free Report) . While Axiall and Stepan sport a Zacks Rank #1 (Strong Buy), FMC Corp. holds a Zacks Rank #2 (Buy).

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