The specialty material company,
) announced its plan to build a methanol plant at its Clear Lake,
Texas acetyl complex with an annual capacity of 1.3 million metric
ton. The plant is expected to be online by July 1, 2015.
A considerable portion of the methanol produced at the plant
will be used to support Celanese's acetyl operations at Clear Lake.
The company expects to partner with one or more additional entities
to sell the remaining methanol, provided they are interested in
The company aims to utilize its already existing infrastructure
at Clear Lake for the new plant, which will help reduce its capital
requirements. Celanese also intends to take advantage of the
existing technologies at the facility. The facility will provide
employment to a large number of people through the construction
process as well as the start up phase.
In April 2012, Celanese released its first-quarter 2012 results.
The company reported adjusted earnings (excluding one-time charges
and gains) of 72 cents per share in the quarter, down from 96 cents
a year ago. The profits were below the Zacks Consensus Estimate of
77 cents. However, the reported profit jumped 28.9% year over year
to $183 million or $1.15 per share during the quarter.
Sales for the quarter amounted to $1,633 million, up 3% year
over year, exceeding the Zacks Consensus Estimate of $1,616
million. The growth was driven by higher volumes and pricing in the
company's acetyl intermediates and industrial specialties
divisions. However, higher costs and weaker demand in Europe led to
a decline in operating profit by 91.8% to $98 million.
According to Celanese, challenging market conditions in Europe
and Asia will last longer this year than expected. Therefore, the
company will operate plants at appropriate levels to maximize
profits while keeping a lid on discretionary spending. It expects
to cut costs and expand customer relationships to counteract weak
Celanese, which competes with
), currently retains a Zacks #3 Rank, reflecting a short-term (1 to
3 months) Hold rating. Currently, we have a long-term (more than 6
months) Neutral recommendation on the stock.
BASF SE (BASFY): Free Stock Analysis Report
CELANESE CP-A (CE): Free Stock Analysis Report
METHANEX CORP (MEOH): Free Stock Analysis
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