Celanese (CE) Ups Prices Of MIBK And Formaldehyde

Chemical and advanced materials maker, Celanese Corporation (NYSE:CE) has decided to raise the list and off-list selling prices of MIBK by 3 cents per pound in North and South America. The company is also raising prices of formaldehyde solution 50% by a cent per pound and formaldehyde solution 37% by 0.75 cents per pound both in North and South America. The price hike will be effective from Jul 11, 2016, or as contracts permit.

Recently Celanese also raised the price of both Ateva EVA and LDPE polymers by 5 cents in North and South America. The rise in price is effective from Jul 1, 2016, or as contracts permit.

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Global growth remains sluggish, while raw materials face deflationary trends in a world under severe geopolitical strain. However, emulsions in Europe have started performing better and the high-season for the company is approaching in this region. Demand in China has also picked up and the figure is improving, despite less-than-satisfactory sales in both the regions.

Celanese’s adjusted earnings for first-quarter 2016 were $1.83 per share, indicating a 6% increase from the prior-year quarter. Earnings per share also beat the Zacks Consensus Estimate of $1.52. Although revenues dropped roughly 3% year over year to $1,404 million in the quarter, the figure beat the Zacks Consensus Estimate.

Celanese also upgraded its outlook for 2016. It now expects an improvement of 8%−10% in earnings per share, compared to 5%−10% growth stated earlier. The company intends to pursue commercial discipline coupled with excellence in operation and productivity to survive and grow in the current environment.

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

Better-ranked companies in the chemicals industry include Axiall Corporation (NYSE:AXLL) , Albemarle Corporation (NYSE:ALB) and Asahi Kasei Corp. (OTC:AHKSY) , all sporting a Zacks Rank #1 (Strong Buy).