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Celanese (CE) to Increase Price of Acetyl Intermediates

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Celanese CorporationCE will raise the list and off-list selling prices of acetyl intermediates products. The price hike will be effective from Feb 1, 2018 or as contracts permit.

In Europe and Middle East, the company will hike the prices of both Acetic Acid and Vinyl Acetate Monomer by €50/MT. Prices of Acetic Acid will increase by 2 cents per lb and that of Vinyl Acetate Monomer will rise by 5 cents per lb in the United States and Canada. Also, in Mexico and South America, prices of Acetic Acid and Vinyl Acetate Monomer will rise by a respective $50/MT and $100/MT.

Celanese is taking appropriate pricing actions amid a volatile raw material pricing environment. In third-quarter 2017, pricing improvement drove margins in its Acetyl Chain unit.

The company has outperformed the industry it belongs to over a year. While Celanese's shares have moved up around 27.6%, the industry gained roughly 24.6%.

The company expects business and productivity momentum to offset fourth-quarter weakness. Celanese is optimistic that it can grow its adjusted earnings per share for 2017 toward the top end of its earlier announced guidance range of 9-11%.

Celanese's strategic measures including operational cost savings through productivity actions and pricing initiatives are likely to lend support to its earnings. It is also poised to gain from growth initiatives that include acquisitions. Furthermore, the company remains focused on returning value to shareholders.

Celanese Corporation Price and Consensus

Celanese Corporation Price and Consensus | Celanese Corporation Quote

Zacks Rank & Key Picks

Celanese carries a Zacks Rank #2 (Buy).

Some other stocks worth considering from the basic materials space are Kronos Worldwide Inc. KRO , Methanex Corporation MEOH and BASF SE BASFY sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today's Zacks #1 Rank stocks here.

Kronos has an expected long-term earnings growth of 5%. Its shares have skyrocketed 127.2% over a year.

Methanex has an expected long-term earnings growth of 15%. Shares of the company have rallied 31.5% in a year.

BASF has an expected long-term earnings growth of 8.7%. Shares of the company have rallied 23.5% in a year.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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