Celanese (CE) Hikes List & Off-List Prices of Acetic Acid
Chemical and advanced materials maker, Celanese Corporation CE has announced its decision to raise the list and off-list selling prices of acetic acid by RMB100/MT in China. The rise in price will be effective immediately, or as contracts permit.
Earlier this month, Celanese announced its decision to raise the list and off-list selling prices of Vinyl Acetate Monomer, effective Jun 1, 2016, or as contracts allow. The company is increasing the price by 2 cents per pound in the U.S. and Canada, by $50 per metric ton in Mexico, Central and South America, and by €50 per metric ton in Europe.
Global growth remains sluggish while raw materials face deflationary trends in a world under severe geopolitical strain. On the brighter side, demand in China has picked up but is still under pressure, while demand in Europe and Asia remains modest.
Meanwhile, Celanese is focused on increasing shareholder value. Last month, the company revised its outlook for 2016 and now expects adjusted earnings per share to increase 8–10%, up from 5–10% projected earlier. If the economy recovers in the second half of the year, the company may be able to touch the high end of the revised outlook.
Celanese’s adjusted earnings for the first quarter were $1.83 per share, indicating a 6% increase from the prior-year quarter. Earnings also beat the Zacks Consensus Estimate of $1.52. Although revenues fell roughly 3% year over year to $1,404 million in the quarter, the figure beat the Zacks Consensus Estimate.
Celanese currently carries a Zacks Rank #3 (Hold).
Better-ranked companies in the chemicals industry include Innophos Holdings Inc IPHS, Innospec Inc. IOSP and Asahi Kasei Corp. AHKSY, each sporting a Zacks Rank #1 (Strong Buy).
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