Celanese To Shut Down Mexico Facility To Reduce Fixed Costs

By Zacks Investment ResearchStock MarketsJul 01, 2019 08:25AM ET

www.investing.com/analysis/heres-why-big-oil-stocks-such-as-chevron-and-exxon-are-still-risky-200436072

Celanese To Shut Down Mexico Facility To Reduce Fixed Costs

By Zacks Investment Research | Jul 01, 2019 08:25AM ET

Saved. See Saved Items.

This article has already been saved in your Saved Items

MTRN

-2.85%

Add to/Remove from Watchlist

FSI

-3.74%

Add to/Remove from Watchlist

-4.01%

Add to/Remove from Watchlist

FSUGY

-0.95%

Add to/Remove from Watchlist

Celanese Corporation (NYSE:CE) recently announced further consolidation of production operations of its global acetate manufacturing operations by shutting the production facility in Ocotlan, Jalisco, Mexico. The move is aimed to strengthen the company’s competitive position, align production capacities with expected industry demand and reduce fixed costs.

In June 2018, the company stated that it will cease the production of acetate tow at the Ocotlan facility. Now, Celanese will also discontinue production of acetate flake at the facility, essentially shutting all production operations at the site by Oct 31, 2019.

Per management, manufacturers in China are undertaking plans to boost acetate flake capacity in 2020. As such, the demand for imported flake is likely to decline considerably. This along with the company’s ability to source additional volumes from the Narrows, VA site, supports the decision of completely shutting operations at the Ocotlan facility. Moreover, the decision enables the company to optimize cost and footprint, which are part of the long-term strategy for acetate business for maintaining competitive position in the market.

Notably, the company has undertaken steps to strengthen competitive position in the acetate tow market. Initiatives like reducing fixed costs, lowering raw materials cost and aligning with demand trends have enabled the company to achieve the same.

Celanese’s shares have lost 3.2% in the past year, against the industry’s 9.8% rise.

In April 2019, the company backed adjusted earnings per share guidance of roughly $10.50 for 2019, considering that underlying fundamentals will improve later in the year.

The company does not expect improvement in demand in the second quarter. It anticipates second-quarter performance to be similar to first-quarter levels. Celanese will continue to invest in its businesses and further expand capability to boost growth and shareholders’ value.

Zacks Rank & Key Picks

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

Some better-ranked stocks in the basic materials space are Materion Corporation (NYSE:MTRN) , Flexible Solutions International Inc. (NYSE:FSI) and Fortescue Metals Group Ltd. (OTC:FSUGY) . These stocks currently sport a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Materion has an expected earnings growth rate of 27.3% for 2019. The company’s shares have gained 22.5% in the past year.

Flexible Solutions has projected earnings growth rate of 342.9% for the current year. The company’s shares have surged 170.7% in a year’s time.

Fortescue Metals has an estimated earnings growth rate of 230.4% for the current year. Its shares have rallied 98.4% in the past year.

The Hottest Tech Mega-Trend of All

Last year, it generated $8 billion in global revenues. By 2020, it's predicted to blast through the roof to $47 billion. Famed investor Mark Cuban says it will produce "the world's first trillionaires," but that should still leave plenty of money for regular investors who make the right trades early.

See Zacks' 3 Best Stocks to Play This Trend >>

Celanese Corporation (CE): Free Stock Analysis Report

Flexible Solutions International Inc. (FSI): Free Stock Analysis Report

Fortescue Metals Group Ltd. (FSUGY): Free Stock Analysis Report

Materion Corporation (MTRN): Free Stock Analysis Report

Original post

Is Tesla on the Right Track in 2025? By Timothy Fries - Feb 27, 2025 2

Since the Robotaxi event on October 11th, Tesla (NASDAQ:TSLA) stock is up 38%, currently priced at $291.60 per share This is a return to the early November 2024 price level. But...

Q4 Earnings Season Wraps up: US CEOs Signal Highest Confidence in 2... By Christine Short - Feb 27, 2025

The Q4 2024 earnings season tapers off from here, with S&P 500® EPS growth surpassing 17%, the highest in 3 years Large cap outlier earnings dates this week include:...

Will Alibaba’s $53B AI Bet Be the Key to Tech Supremacy? By Leo Miller - Feb 27, 2025 1

Shares of Alibaba (NYSE:BABA) are on a tear to start off 2025. The consumer discretionary and tech stock is up by 52% this year as of the Feb. 25 close. The company’s cloud...

Add a Comment

We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:

Enrich the conversation, don’t trash it.
Stay focused and on track. Only post material that’s relevant to the topic being discussed.
Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.
Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
Only English comments will be allowed.
Any comment you publish, together with your investing.com profile, will be public on investing.com and may be indexed and available through third party search engines, such as Google.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

I have read Investing.com's comments guidelines and agree to the terms described.

I Agree

Write your thoughts here

Are you sure you want to delete this chart?

Delete Cancel

Post

Post also to:

Replace the attached chart with a new chart ?

Replace Cancel

1000

Comment Guidelines

Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.

Please wait a minute before you try to comment again.

Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.

<div id="comment">
				<div class="comment js-comment" data-comment-id="{commentID}" id="comment-{commentID}" data-user-id="">
    <div class="mainComment js-content">
       <div class="commentInnerWrapper">
        <a href="{userLink}" class="js-user-link"><img src="{userImage}" width="33" height="33" alt="{usernameAlt}" class="img" onerror="this.src='https://i-invdn-com.investing.com/defaultUserMaleTmp.png';"></a><div class="commentBody">
                					<span class="commentUsername">
                    	<a href="{userLink}" class="js-user-link js-user-name">{username}</a>
					</span>
                                <span class="js-date" comment-date="{dateFormat}" comment-date-formatted="{dateFormatted}" title="{dateTitle}">Just Now</span>
                <div class="commentDropDown js-commentDropDownWrapper " data-user-id="" data-cid="{commentID}">
	<a href="javascript:void(0);" class="threeDotsIconSmall js-thinDropdownArrow"></a>
	<div class="tooltipPopup commentActionsPop noHeader js-commentDropDownOptions displayNone">
		<div class="addRow js-option share">
			<a href="javascript:void(0);" class="js-commentSharePopup" data-cid="{commentID}" data-curl="{commentLink}"><span class="smallShareIcon middle"></span>Share</a>
		</div>

<div class="js-option addRow follow">
            <div class="js-follow-post-button" data-reg_ep="follow comment">
                <span class="alertfollowIcon middle"></span>Follow this post            </div>
            <div class="js-unfollow-post-button displayNoneImp">
                <span class="alertUnfollowIcon middle"></span>Unfollow this post            </div>
        </div>

<div class="addRow js-option save"  data-reg_ep="save comment">
		<a href="javascript:void(0);" class="js-save-item-btn" data-item-type="comments" data-item-id="{commentID}">
			<i class="saveItemBigIcon middle"></i>
			Save		</a>
	</div>
	<div class="addRow saveItemsConfirmation noHover displayNone js-saveItemResult">
		
<div class="content js-saveItemSuccess displayNone">
	<span class="mediumGreenSuccessIcon"></span><span>Saved. See <a href="/members-admin/saved-items" target="_blank">Saved Items</a>.</span>
	<a href="javascript:void(0);" class="bugCloseIcon js-close"></a>
</div>
<div class="content js-saveItemAlreadySaved saveItemAlreadySaved displayNoneImp">
	<span>This comment has already been saved in your <a href="/members-admin/saved-items" target="_blank">Saved Items</a></span>
	<a href="javascript:void(0);" class="bugCloseIcon js-close"></a>
</div>
	</div>

<div class="addRow shareButtons js-sharePopup displayNone">
			<div class="js-shareComment"><span class="js-shareCommentSpan"></span></div>
		</div>
	</div>
</div>
                 <div class="commentAuthor js-comment-by-author"><span class="commentAuthorIcon"></span>Author's response</div>             </div>
		<div id="commentText-{commentID}" class="js-text-wrapper commentText withImage">
							<div id="commentBigChart{commentID}" class="commentBigChart js-comment-chart" onclick="openViewChartPopup('{commentID}')">
					<img src="https://d1-invdn-com.investing.com/comments_images/{commentImage}" alt="{commentAlt}">
					<i class="newMagnifyChartIcon"></i>
				</div>
						<span class="js-text">{commentContent}</span>
			<div class="clear"></div>
							<div class="commentButtons js-not-master-user">
					<a href="javascript:void(0)" class="reply js-reply-btn" data-real-parent-id="{commentID}" data-to-user-name="{username}" data-to-user-id="">Reply</a>
					<div class="inlineblock likeDislikeBox js-like-dislike-box" data-item-id="{commentID}">
	<input class="js-like-checkbox" type="checkbox" name="option" value="Yes" id="like_{commentID}">
	<label for="like_{commentID}" class="like" title="I agree"></label>
	<span class="numOfLikes js-like-count lighterGrayFont">0</span>
	<input class="js-dislike-checkbox" type="checkbox" name="option" value="No" id="dislike_{commentID}">
	<label for="dislike_{commentID}" class="dislike" title="I disagree"></label>
	<span class="numOfDislikes js-dislike-count lighterGrayFont">0</span>
</div>

<div class="reportComment js-flag float_lang_base_2">
                            <a href="javascript:void(0);" id="commentFlag_{commentID}">
                                <span class="reportCommentIcon middle"></span><span class="inlineblock middle">Report</span>
                            </a>
                        </div>
                    				</div>
					</div>
	   </div>
	</div>
	</div>			</div>
			<div id="reply">
				
    <div class="commentReply js-comment js-comment-reply" data-comment-id="{commentID}" id="comment-{commentID}" data-user-id="">
		<div class="commentInnerWrapper"><a href="{userLink}" class="js-user-link"><img src="{userImage}" width="33" height="33" alt="{usernameAlt}" class="img" onerror="this.src='https://i-invdn-com.investing.com/defaultUserMaleTmp.png';"></a><div class="commentBody js-content">
            				<span class="commentUsername">
					<a href="{userLink}" class="commentUsername js-user-link js-user-name" onMouseOver="">{username}</a>
				</span>
                        <span class="js-date" comment-date="{dateFormat}" comment-date-formatted="{dateFormatted}" title="{dateTitle}">Just Now</span>
			 <div class="commentAuthor js-comment-by-author"><span class="commentAuthorIcon"></span>Author's response</div> 			<div class="commentDropDown js-commentDropDownWrapper " data-user-id="" data-cid="{commentID}">
	<a href="javascript:void(0);" class="threeDotsIconSmall js-thinDropdownArrow"></a>
	<div class="tooltipPopup commentActionsPop noHeader js-commentDropDownOptions displayNone">
		<div class="addRow js-option share">
			<a href="javascript:void(0);" class="js-commentSharePopup" data-cid="{commentID}" data-curl="{commentLink}"><span class="smallShareIcon middle"></span>Share</a>
		</div>

</div>
		<div id="commentText-{commentID}" class="js-text-wrapper commentText withImage">
							<div id="commentBigChart{commentID}" class="replyBigChart displayNone js-comment-chart">
					<img src="https://d1-invdn-com.investing.com/comments_images/{commentImage}" alt="{commentAlt}">
					<i class="newMagnifyChartIcon"></i>
				</div>
				<span id="commentSmallChart{commentID}" class="commentSmallChart pointer js-comment-chart" onclick="openViewChartPopup('{commentID}')">
                    <img src="https://d1-invdn-com.investing.com/comments_images/{commentImageSmall}" width="116" height="52" alt="{commentAlt}">
                    <span class="chartMagnifyOverlay displayNone"></span>
                    <span class="searchGlassIcon chartMagnify displayNone"></span>
                </span>
						<span class="js-text">{commentContent}</span>
			<div class="clear"></div>
							<div class="commentButtons js-not-master-user">
					<a href="javascript:void(0)" class="reply js-reply-btn" data-real-parent-id="{commentID}" data-to-user-name="{username}" data-to-user-id="">Reply</a>
					<div class="inlineblock likeDislikeBox js-like-dislike-box" data-item-id="{commentID}">
	<input class="js-like-checkbox" type="checkbox" name="option" value="Yes" id="like_{commentID}">
	<label for="like_{commentID}" class="like" title="I agree"></label>
	<span class="numOfLikes js-like-count lighterGrayFont">0</span>
	<input class="js-dislike-checkbox" type="checkbox" name="option" value="No" id="dislike_{commentID}">
	<label for="dislike_{commentID}" class="dislike" title="I disagree"></label>
	<span class="numOfDislikes js-dislike-count lighterGrayFont">0</span>
</div>

Are you sure you want to delete this chart?

Delete Cancel

Post

Replace the attached chart with a new chart ?

Replace Cancel

1000

Comment Guidelines

Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.

Please wait a minute before you try to comment again.

I feel that this comment is:

Spam

Offensive

Thank You!

Your report has been sent to our moderators for review

Central Banks

Interest Rates

Next Meeting

FED

4.50%

Mar 19, 2025

ECB

2.90%

Mar 06, 2025

BOE

4.50%

Mar 20, 2025

SNB

0.50%

Mar 20, 2025

RBA

4.10%

Apr 01, 2025

BOC

3.00%

Mar 12, 2025

RBNZ

3.75%

Apr 09, 2025

BOJ

0.50%

Mar 19, 2025

CBR

21.00%

Mar 21, 2025

RBI

6.25%

Mar 10, 2025

PBOC

3.10%

BCB

13.25%

Mar 19, 2025

US 30	43,257.0	-177.3	-0.41%
US 500	5,868.5	-87.7	-1.47%
Dow Jones	43,240.14	-192.98	-0.44%
S&P 500	5,861.70	-94.36	-1.58%
Nasdaq	18,544.42	-530.84	-2.78%
S&P 500 VIX	21.13	+2.03	+10.63%
Dollar Index	107.220	+0.891	+0.84%

Crude Oil WTI	70.11	+1.49	+2.17%
Brent Oil	73.33	+1.26	+1.75%
Natural Gas	3.936	-0.023	-0.58%
Gold	2,887.95	-42.65	-1.46%
Silver	31.565	-0.707	-2.19%
Copper	4.5940	+0.0075	+0.16%
US Soybeans	1,024.75	-0.25	-0.02%

U.S. 10Y	4.263	+0.014	+0.33%
U.S. 30Y	4.534	+0.027	+0.60%
U.S. 5Y	4.077	0.000	0.00%
U.S. 3M	4.306	+0.005	+0.12%
US 10Y T-Note	110.77	-0.08	-0.07%
Euro Bund	132.91	+0.24	+0.18%
10-2 Yield Spread	17.88	-1.73	-8.82%

Apple	237.30	-3.06	-1.27%
Alphabet A	168.50	-4.23	-2.45%
Tesla	281.95	-8.85	-3.04%
Amazon.com	208.74	-5.61	-2.62%
Netflix	963.07	-26.99	-2.73%
Meta Platforms	658.24	-15.46	-2.29%
Bank of America	44.12	+0.18	+0.41%

Celanese To Shut Down Mexico Facility To Reduce Fixed Costs

Related Articles