Celanese Corporation (CE - Free Report) stated that it will increase the prices of all acetate tow product grades sold globally by up to 10%. The price hike is effective for orders shipped on or after Jul 1, 2019 or as contracts permit.
Per management, the price increases are necessary for securing sustainability of the company’s acetate tow business and offset declines. The company is committed toward the acetate tow business. It will continue to invest in manufacturing assets, service and innovation, which will position the company as the strategic partner for customers.
Celanese’s shares have lost 10.4% in the past year, against the industry’s 5.3% rise.
In April 2019, the company backed its adjusted earnings per share guidance of roughly $10.50 for 2019, considering that underlying fundamentals will start to improve later in the year.
The company does not expect improvement in demand in the second quarter. It anticipates second-quarter performance to be similar to first-quarter levels. Celanese will continue to invest in its businesses and further expand capability to boost growth and shareholders’ value.
Zacks Rank & Key Picks
Celanese currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the basic materials space are Materion Corporation (MTRN - Free Report) , Flexible Solutions International Inc (FSI - Free Report) and AngloGold Ashanti Limited (AU - Free Report) , all currently sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Materion has an expected earnings growth rate of 27.3% for 2019. The company’s shares have gained 16.7% in the past year.
Flexible Solutions has a projected earnings growth rate of 342.9% for the current year. The company’s shares have surged 126.7% in a year’s time.
AngloGold has an estimated earnings growth rate of 90.6% for the current year. Its shares have rallied 67.2% in the past year.
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