Nasdaq.com — Celanese Corporation CE is set to hike selling prices for Ateva EVA Polymers in Asia by $80 per MT. The company stated that the price hike is effective immediately for orders shipped to Asia or as contracts permit.
Celanese is undertaking price-increase initiatives in the wake of headwinds stemming from raw material cost inflation. The company is facing higher raw material costs across most of its business segments as witnessed in 2018.
Margins in the Acetate Tow segment are affected by higher acetyls raw material costs. The company is also seeing higher costs for acetic acid and methanol in the Acetyl Chain unit. Also, input cost pressure is likely to persist.
Celanese’s shares have lost 5.9% in the past year, against the industry ‘s 2% rise.
The company is exposed to economic weakness across Asia and Europe, which is leading to a slowdown in demand. Notably, Celanese witnessed demand slowdown during fourth-quarter 2018 and the sluggishness is likely to continue through the first half of 2019.
Considering a slower start and expected moderation during the fourth quarter of 2019, the company has issued downbea t earnings guidance for 2019. It expects adjusted earnings per share for 2019 to be roughly $10.50, reflecting a decline from $11.00 in 2018.
Celanese currently carries a Zacks Rank #4 (Sell).
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