) recently announced an increase in price for several of its
products for compensating continuous growth in raw material
costs. The price hikes will be effective as of Jan 15, 2014 or as
The company has raised the prices of certain specialty
polyolester (POE) products which are supplied by the Industrial
Performance Products segment. Prices of POE products have risen
by up to $0.30/kg globally. The company is also raising the
price of products supplied by its polyalphaolefins (PAO) business
at a rate of up to $0.15/lb.
Further, Chemtura declared an increase in cost of products
supplied by its Urethanes Business. Pre-polymers and specialty
curative products are set to rise by about 5% in the North
America and Latin America regions.
Chemtura posted its third-quarter 2013 results on Nov 4. Net
income from continuing operations was reported at $10 million or
10 cents a share compared with a profit of $21 million or 21
cents a year ago. Results missed the Zacks Consensus Estimate of
22 cents per share.
Revenues went down roughly 4.2% year over year to $569 million
in the quarter and missed the Zacks Consensus Estimate of $612
million. In Oct 2013, Chemtura also entered into a stock purchase
agreement to sell its Consumer Products business, including
dedicated manufacturing plants in the U.S. and South Africa, to
KIK Custom Products Inc. The deal amounted to $315 million,
subject to certain pre- and post-closing adjustments and is
expected to expand the company's margins to help meet financial
and strategic performance goals.
Chemtura currently carries a Zacks Rank #3 (Hold). However,
some better-ranked stocks in the specialty chemicals industry are
HB Fuller Co.
). All these stocks hold a Zacks Rank #2 (Buy).
CHEMTURA CORP (CHMT): Free Stock Analysis
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FULLER(HB) CO (FUL): Free Stock Analysis
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