Chemical and advanced materials maker, Celanese Corporation CE has decided to raise the list and off-list selling prices of both Ateva EVA and LDPE polymers by 5 cents in North and South America. The rise in price will be effective from Jul 1, 2016, or as contracts permit.
Recently, Celanese also decided to raise the list and off-list selling prices of Acetic Acid by €30 per metric ton (MT) in the European region. The price hike will be effective from Jul 1, 2016, or as contracts permit.
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 the region. Demand in China has also picked up and the figure is improving despite less-than-satisfactory sales in both 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 raised its outlook for 2016. It now expects an increase of 8%−10% in earnings per share, compared to 5%−10% growth stated earlier. The company intends to pursue commercial discipline, 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 Innophos Holdings Inc IPHS , Albemarle Corporation ALB and Asahi Kasei Corp. AHKSY, all sporting a Zacks Rank #1 (Strong Buy).
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