Shares of Celanese Corp. (CE, Financial) rose more than 3% on Friday after announcing third-quarter results. The company posted earnings of $2.96 per share on $1.77 billion in revenue,Ă‚ growing 12.7% year over year. It beat earnings estimates by 32 cents, but fell $40 million short of revenue expectations.
By segment, Engineered Materials generated net sales of $642 million, up 12% from the prior-year quarter. The GAAP operating profit was $124 million and segment income was $187 million, driven by increased pricing, volume growth and improved product mix that more than offset higher raw material costs. Acetate Tow's GAAP operating profit was $26 million and income was $65 million. Acetyl Chain generated net sales of $1 billion.
Celanese generated $382 million of free cash flow and repurchased $150 million worth of stock.
Looking ahead, the company raised its 2018 guidance to adjusted earnings of $10.90 to $11.10 per share.
Shares of Honeywell International Inc. (HON, Financial) fell 0.5% after posting third-quarter earnings of $2.03 per share on $10.76 billion in revenue, which grew 6.3% year over year.
Aerospace sales rose 10% on an organic basis, boosted by strong demand from business aviation original equipment manufacturers and continued strength in the U.S. and international defense business. Home and Building Technologies sales increased 3% on an organic basis, driven by continued strength in the ADI Global Distribution business, demand for commercial fire products and residential thermal solutions and growth in Building Solutions.
Performance Materials and Technologies sales were up 4%, driven by demand for Solstice low global warming products in Advanced Materials, short-cycle products, services and software demand in Process Solutions and growth in engineering sales in UOP.
Safety and Productivity Solutions revenue rose 12% as a result of double-digit sales growth in the Intelligrated business, strong demand for new mobility solutions in productivity products and higher volumes in sensing and industrial safety.
Disclosure: The author holds no positions in any stocks mentioned.
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