Celanese Corporation CE will increase the list and off-list selling prices of acetyl intermediate products. The price hike will be effective immediately or as contracts permit.
The company will increase the price of Acetic Acid and Acetic Anhydride by ¥300/MT in China and $50/MT in Asia outside China. In Europe and Middle East, prices of Acetic Acid and Acetic Anhydride will rise by €75/MT and €350/MT, respectively. Price of Acetic Acid and Acetic Anhydride will be hiked by 4 cents per lb and 10 cents per lb in United States and Canada. In Mexico & South America, prices of the same will increase by $100/MT and $250/MT, respectively.
Celanese is taking appropriate pricing actions amid a volatile raw material pricing environment. Pricing improvement drove margins in its Acetyl Chain unit in third-quarter 2017.
Celanese has outperformed the industry over the last six months. The company's shares have moved up around 19.8% over this period compared with roughly 14.9% gain recorded by the industry.
The company expects business and productivity momentum to offset fourth-quarter weakness. Celanese is optimistic that it can grow its adjusted earnings per share for 2017 toward the top end of its earlier announced guidance range of 9-11%.
Celanese's strategic measures including operational cost savings through productivity actions and pricing initiatives are likely to lend support to its earnings in 2017. The company is also poised to gain from growth initiatives that include acquisitions. Moreover, Celanese remains focused on returning value to shareholders.
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 , Koppers Holding Inc. KOP and Westlake Chemical Corporation WLK , all sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today's Zacks #1 Rank stocks here .
Kronos Worldwide has expected long-term earnings growth of 5%. Its shares have gained 103.5% year to date.
Koppers has expected long-term earnings growth of 18%. Its shares have rallied 21.6% year to date.
Westlake Chemical has expected long-term earnings growth of 10.6%. Its shares have moved up 74.5% year to date.
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Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Celanese Corporation (CE): Free Stock Analysis Report Kronos Worldwide Inc (KRO): Free Stock Analysis Report Koppers Holdings Inc. (KOP): Free Stock Analysis Report Westlake Chemical Corporation (WLK): Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research