Chemical and advanced materials maker
) declared that it will raise prices for all Hostaform and Celcon
polyacetal (POM) product line grades by 5%. The price increase
will be effective Jan 1, 2014, or as per the contracts.
On Oct 17, 2013, Celanese expanded its POM manufacturing business
in the Asia region to strengthen the product's manufacturing base
in that region and support its customers.
The company also intends to continue investments in, and
expansion of, its joint venture agreements with Polyplastics in
Malaysia, Korea Engineering Plastics (KEP) in Korea, and SABIC in
Saudi Arabia as a part of its growth strategy.
These partnerships enables Celanese to offer a high quality,
diverse portfolio of polyacetal products to its global customers,
with optimum lead times, in their respective regions. The joint
venture agreements will also expand commercial, application
development and technical resources in Asia. This will also
enable Celanese to utilize its full breadth of chemistry,
technology and product expertise to create value for the
Celanese released its third-quarter 2013 results on Oct 18. The
company's adjusted earnings (excluding one-time items) of $1.20
per share beat the Zacks Consensus Estimate of $1.15. Earnings
(as reported) from continuing operation was $1.07 per share in
the quarter, up roughly 34% from 80 cents recorded a year ago.
Sales in the quarter were $1,636 million, up 1.7% year over year,
but missed the Zacks Consensus Estimate of $1,643 million.
Celanese expects earnings growth, on the back of company-specific
initiatives, to be consistent with its long-term growth plan.
These initiatives, including innovation of new products and
enhancement of efficiencies through productivity, are expected to
drive earnings in 2014.
Celanese plans to cut costs and run its plants more efficiently
to counter weak demand. Moreover, it is aggressively expanding
capacity in the emerging Asian markets. The company's strong
presence in these markets should enable it to deliver incremental
earnings this year and next.
However, Celanese is witnessing weak demand and pricing in its
core acetyl business. Moreover, it is exposed to volatility in
raw material costs and has a highly leveraged balance sheet.
Celanese currently has a Zacks Rank #3 (Hold).
Other companies in the chemical industry worth considering are
Asahi Kasei Corp.
Johnson Matthey plc
). While Asahi Kasei and Johnson Matthey hold a Zacks Rank #1
(Strong Buy), Methanex carries a Zacks Rank #2 (Buy).
ASAHI KASEI CP (AHKSY): Get Free Report
CELANESE CP-A (CE): Free Stock Analysis
JOHNSON MATTHEY (JMPLY): Get Free Report
METHANEX CORP (MEOH): Free Stock Analysis
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