) said that it will raise prices of its n-Propyl bromide based
products by up to 20% globally. The price hike is effective
immediately or as per the contracts.
Albemarle's price hike for n-Propyl bromide products includes
n-Propyl bromide Technical product, sold into intermediate and
synthesis applications, and also the ABZOL brand formulated
products sold for precision cleaning applications.
Albemarle's n-Propyl bromide products fall under the 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
its 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
Net sales in the Fine Chemistry segment slipped 16% to $176.1
million in the second quarter from $208.1 million in the
previous-year quarter primarily due to unfavorable sales volumes
Sluggish economic environment across Europe, weak electronics
and construction markets, and lower metals surcharges at the
beginning of 2013 impacted Albemarle's performance. However,
Albemarle successfully met several key milestones with the
bromine and organometallics expansions, which are expected to be
beneficial to the company on a long-term basis.
Albemarle retains a Zacks Rank #5 (Strong 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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