) declared that it will raise the price of ETHANOX 4716
antioxidant on all shipments worldwide by 25 cents per kilogram.
The price hike is effective immediately or as per the contracts.
Albemarle's Polymer Solutions business segment develops and
produces antioxidants for lubricants, petroleum and biodiesel
fuels. ETHANOX antioxidants increase the stability, improve the
performance and expand the storage life of lubricants and fuels
In the recent past, Fine Chemistry Services (FCS), another
segment of Albemarle, commenced the expansion of its custom
manufacturing facility in Tyrone, PA. This is the second
expansion at this site following the previous expansion, which
came on stream in Nov 2012. The costs of the current Tyrone
expansion have been estimated at $30 million.
The expansion is set to improve the infrastructural base at the
site and will enable incremental and low-cost expansions in the
future. It will also fuel further growth at FCS's custom
manufacturing business. The incremental capacity is expected to
be operational in first-quarter 2014. Eventually, the company
will benefit from the estimated 40% increase in reactor
Albemarle's fourth-quarter 2012 results, released on Jan 22,
were impressive as both adjusted earnings and revenues exceeded
the Zacks Consensus Estimates. The company's adjusted earnings
(excluding special items) stood at $1.17 a share in the quarter
compared with $1.13 a share earned in the year-ago quarter. The
results surpassed the Zacks Consensus Estimate of 99 cents,
reflecting a positive surprise of around 18%.
Revenues were $687.6 million in the quarter, down 4% from
$707.4 million in the year-ago quarter, beating the Zacks
Consensus Estimate of $646 million. Sales were impacted by lower
metal surcharges in the Catalysts segment, more than offsetting
Exit from the phosphorus business, lack of pension
obligations, strong balance sheet and investments for future
growth are expected to benefit the company going forward.
However, lower demand for the products coupled with unfavorable
raw material pricing impact resulted in lower operating rates at
the production units in 2012.
Albemarle retains a short-term (1 to 3 months) Zacks Rank #2
Other companies in the diversified chemical industry worth
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). All of these hold a Zacks Rank #1 (Strong Buy).
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