Celanese (CE) Set to Raise Prices of Selective Products
Celanese Corporation CE will raise the list and off-list selling prices of a few products. The price hike will be effective immediately or as contracts permit. The company will increase the price of Butyl Acetate and Ethyl Acetate by $50/MT in Asia outside China. Price of Vinyl Acetate Monomer will be raised by $100/MT in the same region.
The company will also increase list and off-list selling prices for Ateva EVA polymers by 5 cents per lb in the Americas. This hike will be effective from May 1, 2018, or as contracts permit.
The company is taking appropriate pricing actions amid a volatile raw material pricing environment. Celanese’s strategic measures, including operational cost savings through productivity actions and pricing initiatives are likely to provide an impetus to its earnings in 2018.
Celanese’s shares have gained 15.2% over a year, outperforming the industry’s 8% growth.
Celanese, in February, raised earnings guidance for 2018, citing a stronger start to the year across its Acetyl Chain and Advanced Engineered Materials businesses. The company now envisions adjusted earnings per share to grow in the 12-16% range from the prior-year quarter, up from its earlier view of 10-14% growth.
Celanese is witnessing better-than-expected performance in each of its businesses. The company’s Acetyl Chain unit continues to build momentum globally, while improved pricing and strong demand in its Advanced Engineered Materials business are contributing to its earnings strength. Celanese plans to provide more details during first-quarter 2018 earnings call.
Celanese Corporation Price and Consensus
Celanese Corporation Price and Consensus | Celanese Corporation Quote
Zacks Rank & Other Stocks to Consider
Celanese currently carries a Zacks Rank #2 (Buy).
Some other top-ranked stocks in the basic materials space are Kronos Worldwide Inc. KRO, Methanex Corporation MEOH and LyondellBasell Industries N.V. LYB.
Kronos has an expected long-term earnings growth rate of 5% and sports a Zacks Rank #1 (Strong Buy). The company’s shares have moved up 48.6% in a year. You can see the complete list of today’s Zacks #1 Rank stocks here.
Methanex has an expected long-term earnings growth rate of 15% and flaunts a Zacks Rank #1. Its shares have gained 36.3% over a year.
LyondellBasell has an expected long-term earnings growth rate of 9% and carries a Zacks Rank #2 (Buy). Its shares have moved up 18.5% in a year.
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