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Celanese (CE) Hikes Prices of Acetyl Intermediates Products

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Celanese Corporation (CE - Free Report) is raising the list and off-list selling prices of acetyl intermediates products — Ethyl Acetate, MIBK and MIBC. The price hike is effective from Feb 1 or as contracts permit, and is incremental to any prior hikes announced by the company.

In USA & Canada and Mexico & South America, the company will hike the prices of Ethyl Acetate by 3 cents per pound and $70 per metric ton (MT), respectively. In North & South America, prices of MIBK will rise by 7 cents per pound. In Asia (including China), prices of MIBC will increase by $250 per MT while in North & South America prices will rise by 7 cents per pound.

Celanese is taking appropriate pricing actions amid a volatile raw material pricing environment. The company’s strategic measures including operational cost savings through productivity actions and pricing initiatives are likely to lend support to its earnings in 2018.

Celanese’s shares have moved up 10.4% over the last six months, underperforming the industry’s 18.3% growth.

 



Celanese kept its earnings streak alive with a beat in fourth-quarter 2017. The company logged adjusted earnings per share of $1.98 in the quarter, up 30.3% from $1.52 a year ago. The figure surpassed the Zacks Consensus Estimate of $1.86.

Also, revenues of $1,593 million were up roughly 21.5% year over year. The top line outpaced the Zacks Consensus Estimate of $1,530 million.

The company expects the Advanced Engineered Materials pipeline model to evolve into an increased level of project volume and the Acetyl Chain unit to continue the momentum from its improved model. Tow earnings is anticipated to remain relatively flat. In 2018, Celanese expects adjusted earnings to grow in the 10-14% range with more growth to be witnessed in the first half of the year.

Celanese Corporation Price and Consensus

 

Celanese Corporation Price and Consensus | Celanese Corporation Quote

 

Zacks Rank & Stocks to Consider

Celanese currently carries a Zacks Rank #3 (Hold).

Some better-ranked stocks in the basic materials space are Steel Dynamics, Inc. (STLD - Free Report) , The Mosaic Company (MOS - Free Report) and Huntsman Corporation (HUN - Free Report) , each sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Steel Dynamics has an expected long-term earnings growth rate of 12%. Its shares have soared 34.5% in a year’s time.

Mosaic has an expected long-term earnings growth rate of 9.5%. Its shares have gained 20.4% over the past six months.

Huntsman has an expected long-term earnings growth rate of 8.3%. Its shares surged 65% over a year.

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