) announced that it will raise the price of vinyl acetate monomer
by 3 cents per pound in the U.S., Canada and Mexico, by $70 per
metric ton (MT) in Central and South America and in Asia outside
China, by €50 per MT in Europe, and by RMB 400 per MT in China.
Celanese will also hike the price of ethyl acetate by 2 cents per
pound in the U.S., Canada and Mexico, by $50 per MT in Central
and South America and in Asia outside China, by €30 per MT in
Moreover, Celanese will raise the price of butyl acetate by €20
per MT in Europe and by $30 per MT in Asia outside China.
Further, Celanese will increase the price of formaldehyde (37%)
by 2 cents per pound in the U.S., Canada and Mexico. The revision
is effective immediately or as contracts permit. The price hike
will remain in effect for third-quarter 2013.
Celanese also announced an increase in price of acetic acid in
May 2013 by 4.5 cents per pound in the U.S., Canada and Mexico,
by $100 per MT in Central and South America and in Asia outside
China, by €75 per MT in Europe, and by RMB 600 per MT in China.
Celanese released its first quarter 2013 results in Apr 2013. The
company reported first-quarter 2013 adjusted earnings (excluding
one-time items) of $1.14 per share, outperforming the Zacks
Consensus Estimate of 79 cents and exceeding the year-ago
earnings of 79 cents per share by 44%. Earnings (as reported)
from continuing operation were 88 cents a share in the quarter,
down 27% from $1.21 recorded a year ago.
Sales in the quarter were $1,605 million, down 1.7% year over
year, missing the Zacks Consensus Estimate of $1,608 million.
Celanese is among the world's largest producers of acetyl
products apart from being the leading global producer of
high-performance engineered polymers. The company's strong
presence in the emerging markets will enable it to deliver
incremental earnings in 2013.
Celanese has taken up cost-cutting measures and the necessary
steps to run its plants more efficiently to counter weak demand.
It is aggressively expanding capacity in the emerging Asian
markets. The company's expansion initiatives in China are
expected to support earnings growth.
Celanese currently carries a short-term (1 to 3 months) Zacks
Rank #3 (Hold).
Other companies in the chemical industry having favorable
Zacks Rank are
Cytec Industries Inc.
). All of them retain a Zacks Rank #2 (Buy).
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