Celanese Corporation (CE - Free Report) announced the increase in list and off-list selling prices for Ethyl Acetate in Europe.
Prices will increase by Euro 110 per metric ton for orders shipped. The hike is immediately effective or as contracts permit. The company also stated that the latest hike in prices is incremental to any earlier announced increases.
The company’s strategic measures that include price-hike initiatives and operational cost savings through productivity actions are likely to provide an impetus to its 2019 earnings.
Celanese’s shares have lost 4.4% in the past year against the industry’s 1.7% rise.
The company’s adjusted earnings per share (EPS) declined 17.9% year over year to $2.38. Nevertheless, the figure topped the Zacks Consensus Estimate of $2.36.
Revenues of $1,592 million fell nearly 14% year over year and lagged the Zacks Consensus Estimate of $1,624.6 million. The chemical maker witnessed a challenging business environment during the second quarter. It saw weak demand and accelerated industry destocking in the quarter.
The company backed its adjusted EPS guidance of around $10.50 for 2019, considering that underlying fundamentals will improve later this year.
It will also focus on strengthening its businesses by executing productivity programs and strategically investing in high-return organic projects. Celanese is on track to commercialize more than 4,000 projects in 2019.
Zacks Rank & Key Picks
Celanese currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the basic materials space are Kinross Gold Corporation (KGC - Free Report) , Alamos Gold Inc (AGI - Free Report) and Arconic Inc , all sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Kinross has an expected earnings growth rate of 150% for 2019. The company’s shares have surged 66.2% in the past year.
Alamos Gold has projected earnings growth rate of 300% for the current year. The company’s shares have rallied 60.1% in a year’s time.
Arconic has an estimated earnings growth rate of 47.1% for the current year. Its shares have moved up 17.1% in the past year.
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