Celanese Corporation (CE - Free Report) will raise list and off-list selling prices of Acetic Acid. The price hike will be put into immediate effect for orders shipped or as contracts permit.
The company will raise prices of Acetic Acid by ¥515/MT in China.
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 price hike initiatives, are likely to provide an impetus to its earnings in 2018.
In the past six months, Celanese has underperformed the industry it belongs to. The stock has lost around 10.5% compared with the industry’s fall of 3.3%.
During the third-quarter earnings call, Celanese raised its adjusted earnings per share guidance for 2018 to roughly $10.90-$11.10 factoring in strength in 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 traction 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 include 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 23% in the past year.
Mosaic has an expected long-term earnings growth rate of 7%. The stock has rallied 48.7% in a year’s time.
Methanex has an expected long-term earnings growth rate of 15%. Its shares have gained 8.6% in the past year.
Will You Make a Fortune on the Shift to Electric Cars?
Here's another stock idea to consider. Much like petroleum 150 years ago, lithium power may soon shake the world, creating millionaires and reshaping geo-politics. Soon electric vehicles (EVs) may be cheaper than gas guzzlers. Some are already reaching 265 miles on a single charge.
With battery prices plummeting and charging stations set to multiply, one company stands out as the #1 stock to buy according to Zacks research.
It's not the one you think.
See This Ticker Free >>