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Celanese Set to Raise Acetyl Intermediates Products Prices

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Celanese Corporation (CE - Free Report) will raise list and off-list selling prices of acetyl intermediates products. The hike will be put into effect immediately for orders shipped or as contracts permit.
In China and Asia Outside China (AOC), the company will raise prices of Acetic Acid by ¥300/MT and $60/MT. Prices of Vinyl Acetate Monomer will be hiked by ¥200/MT and $50/MT. Moreover, Acetic Anhydride prices will be raised by ¥400/MT and $50/MT. Prices of Butyl and Ethyl Acetate will be lifted by $50/MT in AOC.
Celanese is taking appropriate pricing actions amid a volatile pricing environment for raw materials. The company’s strategic measures, including operational cost savings through productivity actions and pricing initiatives, are likely to provide an impetus to its earnings in 2018.

In a year’s time, Celanese has underperformed the industry it belongs to. The stock has gained around 2.3% compared with the industry’s growth of 3.7%.

In July, Celanese raised its adjusted earnings per share guidance for 2018 to roughly $10.50-$10.75 on strength across Engineered Materials (EM) and Acetyl Chain units. Sales from the EM unit increased year over year in the second quarter of 2018 aided by growth in Asia and Americas’ product mix, recent acquisitions and project commercializations. In the second quarter, the Acetyl Chain segment gained from improving acetyl industry fundamentals as well as higher volumes and pricing. The company expects the momentum in Acetyl Chain to continue in the third quarter.

However, Celanese witnessed lower volume and pricing at its Acetate Tow segment in the second quarter of 2018. Subdued utilization rates across the tow industry are affecting prices of acetate tow. Thus, earnings at the Acetate Tow segment is anticipated to remain relatively flat year over year in 2018. 

Celanese Corporation Price and Consensus


Zacks Rank & Other Stocks to Consider

Celanese is a Zacks Rank #1 (Strong Buy) stock.

A few other top-ranked companies in the basic materials space are Air Products and Chemicals, Inc. (APD - Free Report) , CF Industries Holdings, Inc. (CF - Free Report) and Cabot Corporation (CBT - Free Report) .

Air Products has an expected long-term earnings growth rate of 13.3% and a Zacks Rank #1. The company’s shares have gained 10.6% in the past year. You can see the complete list of today’s Zacks #1 Rank stocks here.

CF Industries has an expected long-term earnings growth rate of 6% and a Zacks Rank #2 (Buy). The company’s shares have rallied 60% in the past year.

Cabot has an expected long-term earnings growth rate of 11% and a Zacks Rank #2. Its shares have risen 11.3% in a year’s time.

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