Fine Chemistry Services (FCS), a segment of specialty chemical
), has commenced the expansion of its custom manufacturing
facility in Tyrone, Penn. This is the second expansion at this
site following the previous expansion, which started operation in
The costs of the current Tyrone expansion have been estimated at
$30 million. The expansion is set 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 capacity.
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 fourth-quarter 2012 results last
month. The company reported adjusted earnings (excluding special
items) of $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%
Profit, as reported, was $37.7 million or 42 cents per share.
This represents a roughly 17% decline from $45.5 million or 51
cents per share posted in the prior-year quarter.
Revenues decreased 4% to $687.6 million in the quarter from
$707.4 million in the year-ago quarter, beating the Zacks
Consensus Estimate of $646 million. The results were impacted by
lower metal surcharges in the Catalysts segment, more than
offsetting volume growth.
Unfavorable raw material pricing impact coupled with lower
demand for the products resulted in lower operating rates at the
production units in 2012. However, exit from the phosphorus
business, lack of pension obligations, strong balance sheet and
investments for future growth are expected to benefit the company
Albemarle retains a short-term (1 to 3 months) Zacks Rank #3
Other companies in the chemical industry worth considering are
Air Products and Chemicals Inc.
). While Arkema retains a Zacks Rank #1 (Strong Buy), both Air
Products and PetroLogistics hold Zacks Rank #2 (Buy).
ALBEMARLE CORP (ALB): Free Stock Analysis
AIR PRODS & CHE (APD): Free Stock Analysis
(ARKAY): ETF Research Reports
PETROLOGISTICS (PDH): Free Stock Analysis
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