Chemical and advanced materials maker, Celanese Corporation CE will hike list and off-list selling prices of acetic acid in response to the rapid rise and sustained volatility in global methanol prices.
The price of acetic acid will increase by RMB100 per metric ton in China and by $100 per metric ton in Asia outside China. This rise in price will be effective immediately or as contracts permit.
Celanese reported loss in fourth-quarter 2014 (reported on Jan 22) on lower sales. Adjusted earnings came in at $1.28 per share, up 23% from $1.04 posted in the year-ago quarter beating the Zacks Consensus Estimate. Revenues fell 3.5% year over year to $1,559 million, missing the Zacks Consensus Estimate. The company expects its business strength to offset the volatility in the macro environment in 2015.
Celanese’s strong presence in emerging markets will enable it to deliver higher earnings in 2015. Earnings are expected to be driven by company-specific initiatives including product innovation and enhancement of efficiencies through productivity.
Celanese remains focused on reducing costs and running its plants more efficiently amid operating uncertainty. It is aggressively expanding its capacity in the emerging Asian markets. The company’s expansion initiatives in China are expected to support earnings growth. Celanese’s integrated chemical complex in Nanjing, China, serves as a base for expansion in Asia, supporting the region's increasing demand.
Celanese is a Zacks Rank #3 (Hold) stock.
Better-ranked companies in the diversified chemical space include Asahi Kasei Corporation AHKSY, Innospec Inc. IOSP and Stepan Company SCL, all with a Zacks Rank #1 (Strong Buy).
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