Chemicals and advanced materials maker
) Board has approved a 20% raise in its quarterly dividend to 9
cents per share from 7.5 cents. Annualized, this represents a
payout of 36 cents per share.
The revised dividend is payable for the period starting Feb 1,
2013, and ending on Apr 30, 2013, to shareholders of record as of
May 6, 2013. This represents Celanese's 4th straight year of
dividend increase, averaging a 23% rise over the period.
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's strong
presence in emerging markets will enable it to deliver
incremental earnings in 2013.
Celanese's first quarter results, reported on Apr 18, were a
mixed bag with adjusted earnings topping expectations while sales
missing the same. The company expects the challenging economic
conditions to persist throughout 2013. For 2013, Celanese expects
earnings growth on the back of company-specific initiatives and
to be consistent with its long-term growth objective of 12% to
Celanese recently said that it is changing its accounting
policy for pension plans and other post-retirement benefit plans.
Per the new policy dubbed mark-to-market (MTM) accounting, it
will recognize actuarial gains and losses and changes in the fair
value of the plans' assets in the fourth quarter every year. As
such, Celanese will no longer defer and amortize actuarial gains
and losses into future years.
Celanese is aggressively expanding capacity in the emerging
Asian markets. Its expansion initiatives in China are expected to
support earnings growth.
However, Celanese is witnessing weak demand and pricing in its
core acetyl business. The challenging economic conditions in
Europe and sluggish growth in Asia may impact the company's
Celanese currently carries a short-term (1 to 3 months) Zacks
Rank #2 (Buy).
Other companies in the chemical industry that are worth
Shin-Etsu Chemical Co.
). While Shin-Etsu Chemical retains a Zacks Rank #1 (Strong Buy),
both Eastman Chemical and FMC hold a Zacks Rank #2 (Buy).
CELANESE CP-A (CE): Free Stock Analysis
EASTMAN CHEM CO (EMN): Free Stock Analysis
FMC CORP (FMC): Free Stock Analysis Report
SHIN-ETSU CHEM (SHECY): Get Free Report
To read this article on Zacks.com click here.