Specialty chemical company
) has acquired UP Chemical Co., Ltd.'s 50% interest in DayStar
Materials, LLC. DayStar is a South Korea based producer and
marketer of high-purity metal organic precursors for the fast
growing light-emitting diode (LED) market.
DayStar was formed in 2011 through a joint venture between
Chemtura and UP Chemical. With the acquisition of the remaining
50% stake in DayStar, Chemtura now holds a 100% interest in the
company. DayStar will be included in Chemtura's Organometallic
Specialties (OMS) business and play a key role in implementing
OMS' strategy to create a sustainable competitive advantage by
providing technologically enhanced products in emerging high-end,
Pursuant to the transaction, Chemtura plans to build a fully
integrated manufacturing, quality, service and distribution
channel in Asia by leveraging its total electronic-grade trialkyl
product portfolio of trimethylgallium, triethylgallium,
trimethylaluminum and trimethylindium.
Chemtura came out with its first-quarter 2013 results on May 2.
The company reported a net loss from continuing operation of $21
million or 21 cents a share compared with a profit of $22 million
or 22 cents a share a year ago. The results were impacted by
higher environmental reserve associated with remediation of a
site in France. Earnings from continuing operation of 15 cents
per share missed the Zacks Consensus Estimate of 19 cents and
were below 18 cents a year ago.
Revenues went down roughly 2% year over year to $606 million in
the quarter and missed the Zacks Consensus Estimate of $634
million. Lower net sales volumes affected revenues. Also,
Chemtura saw weak demand in its industrial engineered products
business which led to the decline despite the remaining three of
four segments delivering improved performances.
Moving ahead, Chemtura expects its Industrial Performance
Products, Consumer Products and Chemtura AgroSolutions segments
to continue their improved performance trends in the second
quarter of 2013. Chemtura further expects demand for insulation
foam and electronics applications to improve in 2013.
However, a significant improvement is not likely in the second
quarter, which may lead only to a modest improvement in the
Industrial Engineered Products segment. Chemtura is focusing on
establishing appropriate pricing levels for bromine based
products and implementing cost effective measures.
Chemtura currently carries a Zacks Rank #5 (Strong Sell).
Other companies in the specialty chemicals industry with
favorable Zacks Rank are
American Pacific Corporation
American Vanguard Corp.
). While American Pacific and American Vanguard holds a Zacks
Rank #1 (Strong Buy), Ferro Corp. retain a Zacks Rank #2 (Buy).
AMER PAC CORP (APFC): Get Free Report
AMER VANGUARD (AVD): Free Stock Analysis
CHEMTURA CORP (CHMT): Free Stock Analysis
FERRO CORP (FOE): Free Stock Analysis Report
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