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Celanese (CE) to Expand Capacity at Selected Facilities
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Celanese Corporation (CE - Free Report) intends to expand the capacity of certain product-specific manufacturing production sites and global compounding assets to augment growth in its engineered materials business.
The company’s latest acquisitions along with the capacity expansions at selective facilities will help it to address the growing demand for compounded specialty materials, long-fiber thermoplastics and ultra-high molecular weight polyethylenes.
Celanese will be adding production lines in Asia — two in Nanjing facility and one in Suzhou facility. In America, the company will add two production lines at its Florence, KY facility. Also, its Bishop, TX facility will undergo a capacity expansion. In Europe, one new production line will be added to its recently acquired Forli, Italy facility. These new production lines and expansions are expected to raise compounding capacity by around 50-60kt per year.
The company remains on track in adding one new Celstran long-fiber thermoplastics production line at its Winona, MN facility as well as debottlenecking existing production lines at the same. This will increase capacity by 9kt per year.
Further, Celanese plans to add one new GUR ultra-high molecular weight polyethylene (UHMW-PE) production line at Nanjing, China facility which is expected to add roughly 15kt per year of new GUR UHMW-PE product capacity.
All the above-mentioned projects are expected to be completed by 2018-19. Financial terms of the same remain undisclosed.
Celanese has outperformed the industry over a year. The company’s shares have moved up around 46.8% over this period compared with roughly 31.1% gain recorded by the industry.
Celanese kept its earnings streak alive with a beat in third-quarter 2017. The company logged adjusted earnings of $1.93 per share for the quarter, beating the Zacks Consensus Estimate of $1.92. Celanese is optimistic that it can grow its adjusted earnings per share for 2017 towards the top end of its earlier announced guidance range of 9-11%.
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.
FMC has expected long-term earnings growth of 11.3%.
Huntsman has expected long-term earnings growth of 7%.
Air Products has expected long-term earnings growth of 12.1%.
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It's hard to believe, even for us at Zacks. But while the market gained +18.8% from 2016 - Q1 2017, our top stock-picking screens have returned +157.0%, +128.0%, +97.8%, +94.7%, and +90.2% respectively.
And this outperformance has not just been a recent phenomenon. Over the years it has been remarkably consistent. From 2000 - Q1 2017, the composite yearly average gain for these strategies has beaten the market more than 11X over. Maybe even more remarkable is the fact that we're willing to share their latest stocks with you without cost or obligation.
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Celanese (CE) to Expand Capacity at Selected Facilities
Celanese Corporation (CE - Free Report) intends to expand the capacity of certain product-specific manufacturing production sites and global compounding assets to augment growth in its engineered materials business.
The company’s latest acquisitions along with the capacity expansions at selective facilities will help it to address the growing demand for compounded specialty materials, long-fiber thermoplastics and ultra-high molecular weight polyethylenes.
Celanese will be adding production lines in Asia — two in Nanjing facility and one in Suzhou facility. In America, the company will add two production lines at its Florence, KY facility. Also, its Bishop, TX facility will undergo a capacity expansion. In Europe, one new production line will be added to its recently acquired Forli, Italy facility. These new production lines and expansions are expected to raise compounding capacity by around 50-60kt per year.
The company remains on track in adding one new Celstran long-fiber thermoplastics production line at its Winona, MN facility as well as debottlenecking existing production lines at the same. This will increase capacity by 9kt per year.
Further, Celanese plans to add one new GUR ultra-high molecular weight polyethylene (UHMW-PE) production line at Nanjing, China facility which is expected to add roughly 15kt per year of new GUR UHMW-PE product capacity.
All the above-mentioned projects are expected to be completed by 2018-19. Financial terms of the same remain undisclosed.
Celanese has outperformed the industry over a year. The company’s shares have moved up around 46.8% over this period compared with roughly 31.1% gain recorded by the industry.
Celanese kept its earnings streak alive with a beat in third-quarter 2017. The company logged adjusted earnings of $1.93 per share for the quarter, beating the Zacks Consensus Estimate of $1.92. Celanese is optimistic that it can grow its adjusted earnings per share for 2017 towards the top end of its earlier announced guidance range of 9-11%.
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
Celanese Corporation Price and Consensus | Celanese Corporation Quote
Zacks Rank & Key Picks
Celanese currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the chemical space are FMC Corporation (FMC - Free Report) , Huntsman Corporation (HUN - Free Report) and Air Products and Chemicals, Inc. (APD - 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.
FMC has expected long-term earnings growth of 11.3%.
Huntsman has expected long-term earnings growth of 7%.
Air Products has expected long-term earnings growth of 12.1%.
Today's Stocks from Zacks' Hottest Strategies
It's hard to believe, even for us at Zacks. But while the market gained +18.8% from 2016 - Q1 2017, our top stock-picking screens have returned +157.0%, +128.0%, +97.8%, +94.7%, and +90.2% respectively.
And this outperformance has not just been a recent phenomenon. Over the years it has been remarkably consistent. From 2000 - Q1 2017, the composite yearly average gain for these strategies has beaten the market more than 11X over. Maybe even more remarkable is the fact that we're willing to share their latest stocks with you without cost or obligation.
See Them Free>>