Chemical and advanced materials maker, Celanese Corporation (CE - Free Report) said that it is raising the list and off-list selling prices of acetic acid by €40/MT in Europe. The price hike will be effective immediately or as contracts permit.
Last month, Celanese raised the list and off-list selling prices of acetic acid by RMB 200/MT in China. Moreover, it announced the decision to hike the price of Vinyl acetate homopolymer and vinyl acrylic emulsions by up to 3 cents per wet pound, and that of Vinyl acetate ethylene (VAE) emulsions by up to 5 cents per wet pound.
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. The company is also 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 holds a Zacks Rank #2 (Buy).
Stocks to Consider
Some other well-ranked 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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