) declared that it will raise elemental bromine and hydrobromic
acid prices in India, China and other parts of Asia by 25%. The
price hike is effective immediately or as per the contracts.
Albemarle's elemental bromine and hydrobromic acid products are
mainly used in agricultural and pharmaceuticals products. These
products fall under the company's Performance Chemicals division
in the Fine Chemistry business segment.
Albemarle is a leading maker of specialty chemicals for consumer
electronics, petroleum refining, utilities, packaging,
construction, automotive/transportation, pharmaceuticals, crop
protection, food-safety and custom chemistry services.
Albemarle came out with its second-quarter 2013 results on Jul
17. The company reported adjusted earnings (excluding
non-operating items) of 97 cents a share in the quarter compared
with $1.28 a share earned in the year-ago quarter. The results
were below the Zacks Consensus Estimate of 99 cents.
Profit, as reported, was $82.7 million or 98 cents per share.
This represents a 65% increase from $50.1 million or 56
cents per share posted in the prior-year quarter.
Revenues decreased 7.4% to $634.2 million in the quarter from
$684.9 million in the year-ago quarter, missing the Zacks
Consensus Estimate of $660 million. The results were impacted by
exit from the phosphorus flame retardants business, lower metals
surcharges, unfavorable pricing in bromine portfolio and lower
Fine Chemistry Services volumes, partly offset by favorable
volumes in Refinery Catalysts and Brominated Flame Retardant
Albemarle faced headwinds including a sluggish economic
environment across Europe, weak electronics and construction
markets, and lower metals surcharges at the beginning of 2013.
However, Albemarle successfully met several key milestones with
the bromine and organometallics expansions, which are expected to
benefit the company on a long-term basis.
Albemarle retains a Zacks Rank #4 (Sell).
Other companies in the chemical industry worth considering are
Northern Technologies International Corp.
Cytec Industries Inc.
Eastman Chemical Co.
). All of them hold a Zacks Rank #2 (Buy).
ALBEMARLE CORP (ALB): Free Stock Analysis
CYTEC INDS INC (CYT): Free Stock Analysis
EASTMAN CHEM CO (EMN): Free Stock Analysis
NORTHERN TECH (NTIC): Free Stock Analysis
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