Celanese (CE) To Increase Price Of Acetaldehyde In Europe

Celanese Corporation (NYSE:CE) will raise the list and off-list selling prices of Acetaldehyde by €65/MT in Europe. The price hike will be effective immediately or as contracts permit.

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

Celanese has outperformed the industry in a year’s time. While shares of the company have moved up around 29.9%, the industry saw a rise of roughly 11.9%.

Celanese raised earnings guidance for 2018 based on strength across its Acetyl Chain and EM units. The company now envisions adjusted earnings per share to grow in the range of 20-25% year over year in 2018, up from its earlier view of 12-16% growth.

Celanese remains focused on growth through acquisitions. The purchase of Italy-based SO.F.TER. Group has strengthened Celanese’s solutions capability and project pipeline. Moreover, the acquisition of Nilit's nylon compounding unit is in sync with Celanese’s plans to become a leading nylon compound supplier. The buyout allows Celanese to extend its global leadership position in the engineered materials business. The recent buyout of Omni Plastics also reinforces Celanese’s global asset base by adding compounding capacity in the Americas, which will allow the company to continue supporting a diverse and growing customer base.

Moreover, the company’s strategic initiatives including productivity actions and efficiency enhancement are expected to continue to support its earnings. The company should also gain from expansion in emerging regions. Also, it continues to generate strong cash flows and remains focused on returning value to its shareholders.

Celanese Corporation Price and Consensus

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 FMC Corp. (NYSE:FMC) , The Chemours Company (NYSE:CC) and Koninklijke DSM NV (OTC:RDSMY) .

FMC Corp has an expected long-term earnings growth rate of 16.4% and sports a Zacks Rank #1. Its shares have gained around 15.9% over a year. You can see the complete list of today’s Zacks #1 Rank stocks here.

Chemours has an expected long-term earnings growth rate of 15.5% and flaunts a Zacks Rank #1. Its shares have gained around 26.4% over a year.

Koninklijke DSM has an expected long-term earnings growth rate of 7.7% and carries a Zacks Rank #2 (Buy). Its shares have gained around 42.5% over a year.

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