Celanese Raises Price of Engineered Materials Polymer Products
Celanese Corporation CE is raising the prices of Engineered Materials Polymer Products. The price hike will be put into effect for orders shipped on or after Aug 23, or as contracts permit.
The company will hike the prices of Propylene-based (PP) long fiber thermoplastics (LFT) grades by ¥1/Kg in China. Prices of Polyamide 66-based long-fiber thermoplastic grades (PA66-LFT) will be raised by ¥3/Kg in the country. Moreover, polybutylene terephthalate (PBT) and polyethylene terephthalate (PET) prices will be hiked by 25% per Kg in America and by 13 euro cents per Kg in Europe. Prices of the same will rise by 15 cents per Kg in Asia outside china (AOC).
Celanese is taking these pricing actions due to increased costs of raw materials worldwide as well as 25% tariff implementation by the United States Trade Representative (USTR) on PBT and PET products imported into the United States from China.
The company 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 pricing initiatives, are likely to boost earnings in 2018.
Celanese has outperformed the industry in a year’s time. While shares of the company have moved up around 19.7%, the industry saw a rough 7.2% rise.
Last month, Celanese raised its adjusted earnings per share guidance for 2018 to roughly $10.50-$10.75 based on strength across Engineered Materials (EM) and Acetyl Chain units. The company expects the Acetyl Chain momentum to continue in the third quarter. It also expects Acetate Tow earnings to remain relatively flat year over year in 2018.
Sales from the EM unit increased year over year in the second quarter. Growth in Asia and the Americas, better product mix, recent acquisitions and project commercializations contributed to the division’s earnings. The company commercialized 733 projects in EM during the quarter and is on track to win nearly 3,000 projects this year.
Celanese Corporation Price and Consensus
Celanese Corporation Price and Consensus | Celanese Corporation Quote
Zacks Rank & Other Stocks to Consider
Celanese is a Zacks Rank #1 (Strong Buy) stock.
Some other top-ranked companies in the basic materials space are Huntsman Corporation HUN, Air Products and Chemicals, Inc. APD and LyondellBasell Industries N.V. LYB.
Huntsman has an expected long-term earnings growth rate of 8.5% and a Zacks Rank #1. The company’s shares have rallied 22.3% in the past year. You can see the complete list of today’s Zacks #1 Rank stocks here.
Air Products has an expected long-term earnings growth rate of 16.1% and a Zacks Rank #2 (Buy). Its shares have gained 14.8% in a year’s time.
LyondellBasell has an expected long-term earnings growth rate of 9.5% and carries a Zacks Rank #2. The stock has rallied 28.4% in a year.
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