Chemical and advanced materials maker, Celanese Corporation CE has announced that it will raise the list and off-list selling prices of acetic acid and acetic anhydride in response to the rapid rise and existing volatility in methanol prices in China.
The prices of both acetic acid and acetic anhydride will be increased by RMB 100 per metric ton in China. This rise in price will be effective immediately, or as contracts permit.
Recently, the company also announced a hike in the price of all its emulsions sold in Europe, the Middle East and Africa, slated to be effective today, or as contracts permit.
Celanese is one of the world’s largest producers of acetyl products, as well as a leading global producer of high-performance engineered polymers. In addition, the company is the world leader in VAM and acetic acid production. Its downstream units consume about two-thirds of the production.
Celanese’s first-quarter 2015 adjusted earnings (excluding one-time items) of $1.72 per share jumped 29.3% from $1.33 per share reported in the year-ago quarter. Earnings from continued operations (as reported) came in at $1.53 per share in the first quarter of 2015, surging roughly 22.4% from $1.25 per share posted in the prior-year quarter. The results were supported by the company’s productivity actions.
Celanese’s strong presence in emerging markets will enable it to deliver incremental earnings in 2015. Earnings are expected to be driven by company-specific initiatives, including product innovation and enhancement of efficiencies through productivity. The company expects its business strength to offset the volatility in the macro environment in 2015.
Celanese has implemented additional productivity programs, which are expected to help achieve $50 million in annualized cost savings. Total productivity savings for 2015 are anticipated to be over $100 million.
Celanese currently sports a Zacks Rank #1 (Strong Buy).
Other well-ranked stocks in the diversified chemical space include Stepan Company SCL, LyondellBasell Industries N.V. LYB and Trecora Resources TREC, all sporting a Zacks Rank #1.
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