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Celanese (CE) to Raise the Price of Emulsions in Europe

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Celanese Corporation (CE - Free Report) will raise the price of vinyl acetate-based and styrene acrylate emulsions in Europe. The price hike will be put into effect for orders shipped on or after Oct 1, or as contracts permit.

In Europe, the company will hike the price of Vinyl Acetate Ethylene (VAE) and Polyvinyl Acetate (PVAC) as well as Styrene Acrylate Emulsions by €50/MT each.
 
Celanese has outperformed the industry in a year’s time. While shares of the company have moved up around 11.4%, the industry saw around 0.1% decline.



The company’s strategic measures, including acquisitions and operational cost savings through productivity actions and efficiency enhancement, are likely to boost earnings in 2018. Earnings are expected to be driven by productivity actions, price hike actions and operational improvement.

In July, Celanese raised its adjusted earnings per share guidance for 2018 to roughly $10.50-$10.75 based on strength across Engineered Materials (EM) and Acetyl Chain units. The company expects the Acetyl Chain momentum to continue in the third quarter.

Sales from the EM unit increased year over year in the second quarter. Growth in Asia and the Americas, better product mix, recent acquisitions and project commercializations contributed to the division’s earnings. Nilit and Omni Plastics acquisitions are expected to drive earnings in the Engineered Materials unit.

Moreover, the Acetyl Chain segment gained from improving acetyl industry fundamentals as well as higher volumes and pricing in the quarter.
 

Zacks Rank & Other Stocks to Consider

Celanese is a Zacks Rank #1 (Strong Buy) stock.

Some other top-ranked companies in the basic materials space are Ingevity Corp. (NGVT - Free Report) , CF Industries Holdings, Inc. (CF - Free Report) and Air Products and Chemicals, Inc. (APD - Free Report) .

Ingevity has an expected long-term earnings growth rate of 12% and a Zacks Rank #1. The company’s shares have rallied 73.8% in the past year. You can see the complete list of today’s Zacks #1 Rank stocks here.

CF Industries has an expected long-term earnings growth rate of 6% and a Zacks Rank #2 (Buy). The company’s shares have gained 46.9% in the past year.

Air Products has an expected long-term earnings growth rate of 16.2% and a Zacks Rank #2. Its shares have gained 11.7% in a year’s time.

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