Celanese Corporation (CE) reported adjusted earnings of $1.66 per share in the second quarter of 2011, beating the Zacks Consensus Estimate of $1.41. Quarterly revenues grew 16% year over year to $1.75 billion, primarily driven by higher volumes across all business segments and favorable currency impacts.
The result topped the Zacks Consensus Estimate of $1.39 billion. Celanese doubled the capacity of its vinyl acetate ethylene (VAE) unit in Nanjing, China to meet the increased global demand for innovative specialty solutions in vinyl-based emulsions.
The company also announced that it will nearly double production at its Celstran long-fiber reinforced thermoplastic (LFT) manufacturing unit in Nanjing, China by the end of the fourth quarter of 2011. Thus, we upgrade our recommendation on Celanese to Outperform from Neutral and increase our target price to $68.00 from $60.00.
CELANESE CP-A (CE): Free Stock Analysis Report
Get all Zacks Research Reports and be alerted to fast-breaking buy and sell opportunities every trading day.
Be the first to comment