Celanese to Expand Kentucky Plant - Analyst Blog

Celanese Corporation CE announced that it will expand manufacturing capabilities at its Florence, KY, facility. Its vice president stated that the manufacturing facility at Kentucky is a hub for innovation where R&D along with progression of high performance engineered materials takes place.

The facility also provides technical expertise throughout the product development cycle along with critical design and engineering support. By expanding the manufacturing capacity, Celanese will be able to better serve its customers around the world and improve its operational efficiency.

Celanese will add compounding process lines to support the sustained customer demand for its advanced engineered materials products. The new compounding unit is expected to be operational in the first quarter of 2015.

The addition of these compounding lines the company's strategy to cater to customers around the world where it finds a growth potential, particularly in automotive and transportation, electrical and electronics, consumer goods, and medical and pharma applications.

Celanese posted strong first-quarter 2014 results on Apr 21. It reported adjusted earnings (excluding one-time items) of $1.33 per share, up 16.7% from $1.14 per share reported in the year-ago period. The results topped 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 the earlier year figure of 88 cents per share.

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

Celanese currently carries a Zacks Rank #3 (Hold).

Other companies in the chemical industry worth considering include Compass Minerals International Inc. CMP, L'Air Liquide SA (AIQUY) and Kronos Worldwide, Inc. KRO. While Compass Minerals carries a Zacks Rank #1 (Strong Buy), L'Air Liquide and Kronos retain a Zacks Rank #2 (Buy).