Chemical and advanced materials maker – Celanese Corporation (NYSE:CE) – has decided to raise the list and off-list selling prices for Methyl Isobutyl Ketone (MIBK) and Methyl Isobutyl Carbinol (MIBC) both by 5 cents per pound in North and South America. The price rise will be effective from Sep 12, 2016, or as contracts permit.
Last month the company also raised the list and off-list selling prices for LDPE polymers by 5 cents per pound in North and South America. The price rise was effective from Sep 1, 2016, or as contracts permit.
Celanese, which is among the prominent chemical companies along with The Dow Chemical Company (NYSE:DOW) , Eastman Chemical Company (NYSE:EMN) and Air products and Chemicals, Inc. (NYSE:APD) , kept its earnings streak alive with a beat in second-quarter 2016. The company reported adjusted earnings of $1.59 per share in the quarter. The figure was a penny higher than the prior-year quarter tally and above the Zacks Consensus Estimate of $1.55.
Celanese reported quarterly sales of $1,351 million, missing the Zacks Consensus Estimate of $1,418 million. The top line declined roughly 8.5% year over year.
Celanese raised the annual dividend by 20% from $1.20 to $1.44 per share, displaying sustained strong cash generation, commitment to consistently growing dividend and confidence in the core businesses.
The company noted that recent events have added further uncertainties to economic growth expectations. However, it projects a relatively stable economic landscape across the U.S. and Europe for the rest of 2016. The company’s Materials Solutions unit provides the best package of global presence, product portfolio and applications expertise in the industry, along with a rigorous pipeline process. This enables it to provide value to its customers and in turn, boost earnings at business.
Celanese is exposed to pricing pressure and is still witnessing soft acetyl demand in China given the sluggish economic conditions. Acetyl intermediates margins are expected to remain under pressure in the near term.
Celanese currently carries a Zacks Rank #4 (Sell).
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