Chemical and advanced materials maker, Celanese CorporationCE declared that it will raise the list and off-list selling prices of Ateva EVA and LDPE Polymers. The rise in price will be effective Apr 1, 2016, or as contracts permit.
The company will increase the price of Ateva EVA by 3 cents per pound in North and South America and by $50 per metric ton in Asia. The price for LDPE Polymers will be raised by 4 cents per pound in North and South America and by $50 per metric ton in Asia.
Celanese also recently raised the list and off-list selling prices of ethyl acetate by 5 cents per pound in the U.S., Canada and Mexico.
We note that Celanese is still witnessing weak acetyl demand in China given the sluggish economic conditions over there. However, the company is confident that its business models in Materials Solutions and Acetyl Chain provide the requisite resources to manage the current uncertainty and strengthen its ability to generate high levels of free cash flow.
The company continues to focus on its productivity initiatives to support growth. Celanese expects adjusted earnings per share to increase 5-10% in 2016, which will keep it on track to meet its goals for 2018.
Celanese's fourth-quarter 2015 adjusted earnings (excluding one-time items) of $1.25 per share fell 2.3% from $1.28 reported a year ago. Earnings, however, exceeded the Zacks Consensus Estimate of $1.23. On the other hand, sales in the fourth quarter declined roughly 14.4% year over year to $1,334 million. The figure also missed the Zacks Consensus Estimate of $1,391 million.
Celanese's shares rose roughly 0.6% to $67 on Mar 18.
Celanese currently carries a Zacks Rank #3 (Hold).
Some better-ranked companies in the diversified chemical space include Arkema S.A. ARKAY , Koninklijke DSM N.V. RDSMY and Sinopec Shanghai Petrochemical Co. Ltd. SHI . Each of these stocks sports a Zacks Rank #1 (Strong Buy).
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