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Celanese to Hike Prices of Long-Fiber Thermoplastic Products


Celanese Corporation CE is raising the prices of polyamide-based long-fiber thermoplastic (PA66-LFT) and thermoplastic polyurethane long-fiber thermoplastic compounds (TPU-LFT). This hike will be effective on or after June 1, 2018, or as contracts permit.

The company will increase the price of Polyamide-based long-fiber thermoplastic grades by 10 cents per kg each in America and Asia and by €10 cents per kg in Europe. While, the price of thermoplastic polyurethane long-fiber thermoplastic grades will be raised by 35 cents per kg in America and Asia and by €35 cents per kg in Europe.

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 32.6%, the industry gained roughly 14.4%.

Celanese logged earnings from continuing operations of $2.68 per share for the first quarter, a roughly two-fold increase from $1.30 per share a year ago. Adjusted earnings of $2.79 per share surged 54% from $1.81 per share posted a year ago, topping the Zacks Consensus Estimate of $2.36.

Revenues jumped roughly 26% year over year to $1,851 million, also surpassing the Zacks Consensus Estimate of $1,696 million. The company benefited from gains across its Engineered Materials (EM) and Acetyl Chain units in the quarter. Improving industry fundamentals and the strength of the company’s commercial models also supported the results.

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 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 worth considering are FMC Corporation FMC, Huntsman Corporation HUN and The Chemours Company CC. All three stocks sport a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

FMC Corp has an expected long-term earnings growth rate of 13.6%. Its shares have gained around 24.5% over a year.

Huntsman has an expected long-term earnings growth rate of 8.3%. Its shares have moved up around 28.1% over a year.

Chemours has an expected long-term earnings growth rate of 15.5%. Its shares have gained around 22.3% over a year.

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