Specialty material company
Acetate business will increase the price of its acetate tow for
core grade items by 8% to 10% (Free On Board plant basis) effective
July 1, 2012. The company said that the price of unique and/or low
volume as well as specialty tow items will be raised by a
Celanese is among the world's largest producers of acetyl
products as well as the leading global producer of high-performance
engineered polymers. The company continues to accelerate growth in
the emerging markets, including Asia. Celanese's expansion
initiatives in China are expected to support earnings growth. The
company's integrated chemical complex in Nanjing, China, serves as
a base for expansion in Asia, supporting the region's increasing
Celanese released its first-quarter 2012 results in April 2012.
The company reported adjusted earnings (excluding one-time charges
and gains) of 72 cents per share in the quarter, down from 96 cents
a year ago. The results were below the Zacks Consensus Estimate of
77 cents. However, the reported profit jumped 28.9% year-over-year
to $183 million or $1.15 per share.
Sales for the quarter amounted to $1,633 million, up 3% year
over year, exceeding the Zacks Consensus Estimate of $1,616
million. The growth was driven by higher volumes and pricing in the
company's acetyl intermediates and industrial specialties
divisions. However, higher costs and weaker demand in Europe led to
a decline in operating profit by 91.8% to $98 million.
According to Celanese, challenging market conditions in Europe
and Asia will last longer this year than expected. Therefore, the
company will operate plants at appropriate levels to maximize
profits while keeping a lid on discretionary spending. It expects
to cut costs and expand customer relationships to counteract weak
Celanese, which competes with
), currently retains a Zacks #3 Rank, reflecting a short-term (1 to
3 months) Hold rating. Currently, we have a long-term (more than 6
months) Neutral recommendation on the stock.
BASF SE (BASFY): Free Stock Analysis Report
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