We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Celanese to Buy Next Polymers, Expand in India ETP Market
Read MoreHide Full Article
Celanese Corporation (CE - Free Report) entered into a definitive agreement to buy one of India’s largest domestic engineering thermoplastics (ETP) compounders — Next Polymers Ltd.
Headquartered in Mumbai, Next Polymers specializes in custom compounding of several ETP materials with a compounding production facility of roughly 20 kilo tons per annum located in the Indian union territory of Dadra & Nagar Haveli.
The buyout is expected to strengthen Celanese’s position as a leader in the Indian ETP market by broadening its capability to serve nylon and other engineered materials customers. Additionally, the acquisition supports the company’s global manufacturing base by adding domestic compounding facility with 10 production lines to support local customers, leverage export, and expand domestic ETP capabilities. Moreover, the acquisition will offer customers a wide range of Celanese and Next branded products.
Celanese expects to complete the deal in the first quarter of 2019, pending customary closing conditions. However, financial details have been kept under wraps.
In a year’s time, Celanese has underperformed the industry it belongs to. The stock has declined around 8.4% against the industry’s fall of 4.8%.
Celanese is taking appropriate pricing actions amid a volatile pricing environment for raw materials. The company’s strategic measures, including operational cost savings through productivity actions and pricing initiatives, are likely to provide an impetus to earnings in 2018.
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.
A few other top-ranked companies in the basic materials space are Methanex Corporation (MEOH - Free Report) , CF Industries Holdings, Inc. (CF - Free Report) and KMG Chemicals, Inc. .
CF Industries has an expected long-term earnings growth rate of 6% and a Zacks Rank #1. Its shares have rallied 39% in a year’s time.
KMG Chemicals has an expected long-term earnings growth rate of 28.5% and a Zacks Rank #2 (Buy). The company’s shares have risen 33% in the past year.
The Hottest Tech Mega-Trend of All
Last year, it generated $8 billion in global revenues. By 2020, it's predicted to blast through the roof to $47 billion. Famed investor Mark Cuban says it will produce "the world's first trillionaires," but that should still leave plenty of money for regular investors who make the right trades early.
Image: Bigstock
Celanese to Buy Next Polymers, Expand in India ETP Market
Celanese Corporation (CE - Free Report) entered into a definitive agreement to buy one of India’s largest domestic engineering thermoplastics (ETP) compounders — Next Polymers Ltd.
Headquartered in Mumbai, Next Polymers specializes in custom compounding of several ETP materials with a compounding production facility of roughly 20 kilo tons per annum located in the Indian union territory of Dadra & Nagar Haveli.
The buyout is expected to strengthen Celanese’s position as a leader in the Indian ETP market by broadening its capability to serve nylon and other engineered materials customers. Additionally, the acquisition supports the company’s global manufacturing base by adding domestic compounding facility with 10 production lines to support local customers, leverage export, and expand domestic ETP capabilities. Moreover, the acquisition will offer customers a wide range of Celanese and Next branded products.
Celanese expects to complete the deal in the first quarter of 2019, pending customary closing conditions. However, financial details have been kept under wraps.
In a year’s time, Celanese has underperformed the industry it belongs to. The stock has declined around 8.4% against the industry’s fall of 4.8%.
Celanese is taking appropriate pricing actions amid a volatile pricing environment for raw materials. The company’s strategic measures, including operational cost savings through productivity actions and pricing initiatives, are likely to provide an impetus to earnings in 2018.
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.
Celanese Corporation Price and Consensus
Celanese Corporation Price and Consensus | Celanese Corporation Quote
Zacks Rank & Other Stocks to Consider
Celanese is a Zacks Rank #1 (Strong Buy) stock.
A few other top-ranked companies in the basic materials space are Methanex Corporation (MEOH - Free Report) , CF Industries Holdings, Inc. (CF - Free Report) and KMG Chemicals, Inc. .
Methanex has an expected long-term earnings growth rate of 15% and a Zacks Rank #1. The company’s shares have rallied 48% 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 #1. Its shares have rallied 39% in a year’s time.
KMG Chemicals has an expected long-term earnings growth rate of 28.5% and a Zacks Rank #2 (Buy). The company’s shares have risen 33% in the past year.
The Hottest Tech Mega-Trend of All
Last year, it generated $8 billion in global revenues. By 2020, it's predicted to blast through the roof to $47 billion. Famed investor Mark Cuban says it will produce "the world's first trillionaires," but that should still leave plenty of money for regular investors who make the right trades early.
See Zacks' 3 Best Stocks to Play This Trend >>