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Celanese (CE) Set to Increase Acetyl Intermediates Prices

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Celanese Corporation (CE - Free Report) will hike the list and off-list selling prices of acetyl intermediates products. The price hike will be effective from Jan 1, 2018 or as contracts permit.

The company will raise the prices of Vinyl Acetate Monomer by ¥200/MT in China. Price of Ethyl Acetate and Butyl Acetate will increase by $50/MT in Asia outside China. In Europe and Middle East, price of Ethyl Acetate will rise by €150/MT.

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 a year. The company’s shares have moved up around 34.2% over this period compared with roughly 24.8% gain recorded by the industry.

 

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 toward 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. Moreover, Celanese remains focused on returning value to shareholders.

Celanese Corporation Price and Consensus

 

 

Zacks Rank & Stocks to Consider

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

Some better-ranked stocks in the basic materials space are Kronos Worldwide Inc. (KRO - Free Report) , Koppers Holding Inc. (KOP - 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.

Kronos Worldwide has expected long-term earnings growth of 5%. Its shares have moved up 119.4% year to date.

Koppers has expected long-term earnings growth of 18%. Shares of the company have rallied 26.6% year to date.

Westlake Chemical has expected long-term earnings growth of 10.6%. Its shares have soared 84.9% year to date.

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