Chemical maker Celanese Corporation has announced its decision to raise the list and off-list selling prices of Vinyl Acetate Monomer, effective Jun 1, 2016, or as contracts allow. The company is increasing the price by 2 cents per pound in the U.S. and Canada, by $50 per metric ton in Mexico, Central and South America, and by €50 per metric ton in Europe.
Celanese also raised the prices of a number of its products in April, including that of ethyl acetate, acetyls, MIBK and vinyl acetate-based emulsions. The move has been partly triggered by continued volatility in raw materials prices.
Global growth remains sluggish while raw materials face deflationary trends in a world under severe geopolitical strain. On the bright side, demand in China has picked up but still remains under certain pressure, while demand in Europe and Asia remains modest.
Meanwhile, the company is set on its goal to create value and deliver growth to its shareholders. Last month, the company revised its outlook for 2016 and now sees adjusted earnings per share to increase 8%–10%, up from 5%–10% anticipated earlier. If the economy recovers in the second half of the year, the company may attain the higher end of the revised outlook range.
Celanese’s adjusted earnings for the first quarter were $1.83 per share, a 6% increase from the prior-year quarter. Earnings also beat the Zacks Consensus Estimate of $1.52 per share. Revenues for the quarter fell roughly 3% year on year to $1,404 million, but beat the Zacks Consensus Estimate.
Celanese currently has a Zacks Rank #3 (Hold).
Some better-ranked companies in the chemical space include Sinopec Shanghai Petrochemical Co. Ltd. , Koninklijke DSM N.V. and Innospec Inc. , all sporting a Zacks Rank #1 (Strong Buy).
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days.