Celanese Hikes Product Prices - Analyst Blog

Chemical and advanced materials maker Celanese Corporation CE declared that it will raise the price of Nutrinova potassium sorbate and Nutrinova sorbic acid sold worldwide by up to 6% and 10%, respectively, effective Jun 1, 2014, or per contracts.

The price revision will be applicable on all grades and all applications including, but not limited to, food, beverages, pharmaceuticals, pet and animal feed, cosmetics and personal care.

Separately, Celanese invited attendees of 2014 Spring Adhesives Sealants Convention ASC to gain wider knowledge about its broad spectrum of industrial adhesives and building products. At the show, the company will be presenting the Flexbond series of emulsions for specialty packaging applications, Vinac emulsions for woodworking adhesives, Ateva EVA copolymers for hot melt adhesives and flexible packaging applications, and the TufCOR line of emulsions for the construction industry.

On Apr 21, Celanese reported its first-quarter 2014 results. The company's adjusted earnings (excluding one-time items) of $1.33 per share were up 16.7% from $1.14 per share reported in the year-ago quarter. The result beat the Zacks Consensus Estimate of $1.21 per share.

Profit from continued operations (as reported) came in at $1.25 per share in the first quarter, surging roughly 42% from 88 cents per share posted in the prior-year quarter.

Sales in the quarter were $1,705 million, up 6.2% year over year, surpassing the Zacks Consensus Estimate of $1,682 million.

For 2014, Celanese expects earnings growth of 12% to 14% on the back of company-specific initiatives including innovation and productivity programs consistent with its long-term growth plan. These initiatives are expected to drive earnings growth in 2014.

Celanese currently carries a Zacks Rank #2 (Buy).

Other stocks in the chemical industry worth considering include Cabot Corp. CBT, Eastman Chemical Co. EMN and Huntsman Corp. HUN, all carrying a Zacks Rank #2 (Buy).