Celanese Corporation (CE - Free Report) has announced price increases of its engineered material Fortron polyphenylene sulphide (PPS) polymer. The price hike will be put into effect for orders shipped on or after Jan 1, 2019, or as contracts permit.
The company will raise prices of Fortron (PPS) by 85 cents per kg in Americas, euro 70 cents per kg in Europe and 65 cents a kg in Asia.
In the last six months, Celanese has underperformed the industry it belongs to. The stock has lost around 11.9% against the industry’s fall of 4.6%.
During third-quarter earnings call, Celanese raised its adjusted earnings per share guidance for 2018 to roughly $10.90-$11.10 factoring in strength of Engineered Materials (EM) and Acetyl Chain units. The company expects the momentum in Acetyl Chain and EM to continue in the rest of 2018. The EM segment is expected to maintain the pace of earnings growth with benefits from new projects and bolt-on acquisitions.
The chemical maker benefited from gains in its EM and Acetyl Chain units in the third quarter. Higher pricing across these businesses also supported the results.
However, Celanese saw lower pricing in the quarter at its Acetate Tow segment due to reduced industry capacity utilization, partly masked by mix and productivity gains.
Celanese Corporation Price and Consensus
Zacks Rank & Other Stocks to Consider
Celanese currently carries a Zacks Rank #2 (Buy).
A few other top-ranked stocks in the basic materials space are CF Industries Holdings, Inc. (CF - Free Report) , The Mosaic Company (MOS - Free Report) and Methanex Corporation (MEOH - Free Report) , each sporting a Zacks Rank #1 (Strong Buy). 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%. The company’s shares have gained 20% in the past year.
Mosaic has an expected long-term earnings growth rate of 7%. The stock has rallied 45.2% in the past year.
Methanex has an expected long-term earnings growth rate of 15%. Its shares have gained 7% in the past year.
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