Chemical and advanced materials maker
) declared that it will raise prices for vinyl acetate-based
emulsions in Asia. Prices of Polyvinyl acetate (PVAc) homopolymer
and vinyl acetate ethylene (VAE) emulsions will rise by 300
RMB/MT in China and $45 USD/MT in the rest of Asia. The price
increase will be effective Jan 13, 2014, or as per the
Last month, Celanese also announced that that it will raise
prices for all Hostaform and Celcon polyacetal (POM) product line
grades by 5%. The price increase has been put into effect from
Jan 1, 2014, or as per the contracts.
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 operations came in at
$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,
lagging 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
Johnson Matthey plc
LyondellBasell Industries NV
PPG Industries Inc.
). While Johnson Matthey holds a Zacks Rank #1 (Strong Buy), both
LyondellBasell and PPG Industries retain a Zacks Rank #2
CELANESE CP-A (CE): Free Stock Analysis
JOHNSON MATTHEY (JMPLY): Get Free Report
LYONDELLBASEL-A (LYB): Free Stock Analysis
PPG INDS INC (PPG): Free Stock Analysis
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