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Celanese (CE) Announces Price Hike of Selective Products

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Celanese Corporation (CE - Free Report) said that it will increase the list and off-list selling price of certain products. The price hike is effective immediately or as contracts permit.

The company will raise the price of Vinyl Acetate Monomer by ¥500/MT in China. Price of the same will increase by $100/MT in Asia outside China. The price of PR based short-and long-fiber thermoplastics is slated to rise by 11 cents per lb in North and South America.

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

Celanese has outperformed the industry over a year. The company’s shares have moved up around 60.1% over this period compared with roughly 26.9% gain recorded by the industry.


Celanese kept its earnings streak alive with a beat in second-quarter 2017. The company logged adjusted earnings of $1.79 per share for the quarter, topping the Zacks Consensus Estimate of $1.74. Celanese sees adjusted earnings per share to increase 9-11% in 2017.

Celanese’s strategic measures including cost savings through productivity actions and pricing initiatives are expected to lend support to its earnings in 2017. The company is also likely to gain from capacity expansion and growth initiatives like acquisitions. Moreover, Celanese remains focused on returning value to shareholders.

Celanese Corporation Price and Consensus

 

Zacks Rank & Key Picks

Celanese currently carries a Zacks Rank #3 (Hold).

Some better-ranked stocks in the chemical space are Arkema S.A. (ARKAY - Free Report) , Kronos Worldwide (KRO - Free Report) and Akzo Nobel N.V. (AKZOY - Free Report) . All three stocks sport a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Arkema has an expected long-term earnings growth of 12.8%.

Kronos Worldwide has an expected long-term earnings growth of 5%.

Akzo Nobel has an expected long-term earnings growth of 11.1%.

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