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Celanese (CE) Announces Rise in Price of Selective Products

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Celanese Corporation (CE - Free Report) announced that it will increase the list and off-list selling prices of certain products. The price hike will be effective from Oct 1 or as contracts permit.

The company will raise the price of Acetic Acid and Acetic Anhydride by ¥300/MT in China. Price of Vinyl Acetate Monomer (VAM) will increase by 12 cents per lb in the United States and Canada, and by $400/MT in South America. Price of the same will rise by €200/MT in Europe and by $400/MT in Middle East and Africa. In China, VAM price will be hiked by ¥300/MT and by $50/MT in Asia outside China.

In Europe, prices of Vinyl Acetate Ethylene (VAE), VAM Homopolymers (PVAC), VAM Copolymers and Styrene Acrylics will rise by €90/MT. While in Middle East and Africa, prices of Vinyl Acetate Ethylene, VAM Homopolymers, VAM Copolymers and Styrene Acrylics will increase by $110/MT. Pure Acrylics’ price will rise by €120/MT in Europe and by $145/MT in Middle East and Africa.

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 64.5% compared with roughly 27.8% gain recorded by the industry.

Celanese kept 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. It 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 earnings in 2017. The company is also likely to gain from capacity expansion and growth initiatives like acquisitions. Moreover, it 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 Kronos Worldwide (KRO - Free Report) , Koppers Holdings Inc. (KOP - Free Report) and Arkema S.A. (ARKAY - Free Report) .

Kronos Worldwide has an expected long-term earnings growth of 5% and sports 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 earnings growth of 18% and flaunts a Zacks Rank #1.

Arkema has an expected long-term earnings growth of 12.8% and carries a Zacks Rank #2 (Buy).

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