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Celanese (CE) to Hike Acetyl Intermediates Price in Asia
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Celanese Corporation (CE - Free Report) will increase the list and off-list selling prices of certain acetyl intermediates products. The price hike will be effective immediately or as contracts permit.
The company will increase the price of Ethyl Acetate by $100/MT in Asia outside China. The price of Vinyl Acetate Monomer will also rise by ¥300/MT and $50/MT in China and Asia (outside China), respectively.
Celanese is taking appropriate pricing actions amid a volatile raw material pricing environment. Pricing improvement drove margins in its Acetyl Chain unit in third-quarter 2017.
Celanese has outperformed the industry over the last six months. The company’s shares have moved up around 24.4% over this period compared with roughly 9.4% gain recorded by the industry.
The company logged adjusted earnings per share of $1.93 in the third quarter, up 15.6% from $1.67 reported a year ago. The figure was slightly above the Zacks Consensus Estimate of $1.92.
Celanese reported sales of $1,566 million for the quarter, up roughly 18.4% year over year. Sales topped the Zacks Consensus Estimate of $1,511 million. The company benefited from commercial execution in the Acetyl Chain unit and productivity gains in the quarter.
The company expects business and productivity momentum to offset fourth-quarter weakness. 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 operational cost savings through productivity actions and pricing initiatives are likely to lend support to its earnings in 2017. The company is also poised to gain from growth initiatives that include acquisitions.
Ingevity has expected long-term earnings growth of 12%. Its shares have gained 33.5% year to date.
ArcelorMittal has expected long-term earnings growth of 11.3%. Its shares have rallied 27.5% year to date.
Westlake Chemical has expected long-term earnings growth of 8.4%. Its shares have moved up 61.8% year to date.
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Celanese (CE) to Hike Acetyl Intermediates Price in Asia
Celanese Corporation Price and Consensus | Celanese Corporation Quote
Zacks Rank & Other Stocks to Consider
Celanese currently carries a Zacks Rank #2 (Buy).
Some other top-ranked stocks in the basic materials space are Ingevity Corporation (NGVT - Free Report) , ArcelorMittal (MT - Free Report) and Westlake Chemical Corporation (WLK - Free Report) , all sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Ingevity has expected long-term earnings growth of 12%. Its shares have gained 33.5% year to date.
ArcelorMittal has expected long-term earnings growth of 11.3%. Its shares have rallied 27.5% year to date.
Westlake Chemical has expected long-term earnings growth of 8.4%. Its shares have moved up 61.8% year to date.
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Zacks has just released a Special Report on the booming investment opportunities of legal marijuana.
Ignited by new referendums and legislation, this industry is expected to blast from an already robust $6.7 billion to $20.2 billion in 2021. Early investors stand to make a killing, but you have to be ready to act and know just where to look.
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