Celanese Corporation (CE - Free Report) will raise the list and off-list selling prices of Acetaldehyde by €45/MT in Europe. The price hike will be effective immediately or as contracts permit.
The company is taking appropriate pricing actions amid a volatile raw material pricing environment. Celanese’s strategic measures include operational cost savings through productivity actions and pricing initiatives that are likely to give a boost to its earnings in 2018.
In the last six months, shares of the company have moved up 2.7%, underperforming the industry’s 9.7% growth.
Celanese has kept its earnings streak alive with a beat in fourth-quarter 2017. The company logged adjusted earnings per share of $1.98 in the quarter, up 30.3% from $1.52 a year ago. The figure surpassed the Zacks Consensus Estimate of $1.86.
In the fourth quarter, revenues of $1,593 million were up roughly 21.5% year over year. The top line outpaced the Zacks Consensus Estimate of $1,530 million.
The company expects the Advanced Engineered Materials pipeline model to evolve into an increased level of project volume and the Acetyl Chain unit to continue the momentum forward. Meanwhile, tow earnings is anticipated to remain relatively flat. For 2018, Celanese expects adjusted earnings to grow in the 10-14% range with more growth to be witnessed in the first half of the year.
Celanese Corporation Price and Consensus
Zacks Rank & Stocks to Consider
Celanese carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the chemical space are Methanex Corporation (MEOH - Free Report) , LyondellBasell Industries NV (LYB - Free Report) and Air Products and Chemicals Inc. (APD - Free Report) .
Methanex has an expected long-term earnings growth rate of 15% and a Zacks Rank #1 (Strong Buy). Its shares have rallied 10.7% over a year. You can see the complete list of today’s Zacks #1 Rank stocks here.
LyondellBasell has an expected long-term earnings growth rate of 9% and a Zacks Rank of 1. The company’s shares have gained 16% in a year.
Air Products has an expected long-term earnings growth rate of 14.2% and a Zacks Rank #2 (Buy). Its shares are up 12.5% over a year.
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