Specialty chemical company
) fourth-quarter 2012 profit from continuing operation rose 13%
year over year to $27 million or 27 cents a share from $24
million or 24 cents a share a year ago, aided by higher sales.
Adjusted earnings (excluding one-time items) of 15 cents per
share missed the Zacks Consensus Estimate of 32 cents.
For the full year, profit (from continuing operation) jumped
43% year over year to $134 million or $1.35 per share. Adjusted
earnings of $1.16 per share missed the Zacks Consensus Estimate
Revenues went up 8% year over year to $622 million in the
fourth quarter, but missed the Zacks Consensus Estimate of $681
million. The results were driven by healthy growth across the
company's AgroSolutions and Industrial Engineered Products
divisions. However, Chemtura saw weak demand for its
organometallic tin products used in automotive and glass
For the full year, sales edged up 1% year over year to $2,629
million, falling behind the Zacks Consensus Estimate of $2,974
Revenues from the Industrial Performance Products segment
inched up 1% year over year to $214 million in the reported
quarter. Higher sales volumes were offset by a decline in selling
prices. The company saw weak margin for the petroleum additive
Industrial Engineered Products division's sales jumped 14% to
$221 million on higher volumes and pricing. Higher demand for
oilfield, electronic and insulation foam products masked weakness
across building, construction, automotive applications and
Revenues from the Consumer Products unit rose 2% to $89
million on higher sales volume.
Chemtura AgroSolutions segment's sales jumped 14% to $98
million on higher sales volume and pricing. Sales benefited from
drier climate and gains in resale and seed treatment
Chemtura exited 2012 with cash and cash equivalents of $363
million, more-than-double year over year. Long-term debt jumped
16% year over year to $871 million. Operating cash flow surged
20% year over year to $218 million in 2012.
Moving ahead, Chemtura sees improved demand environment across
the industrial markets in serves. While the company envisions
some challenges in first-quarter 2013, it expects demand to
recover as the year progresses, aided by Asia-Pacific. The
company will remain focused on margin improvement and bringing
new products to its customers.
Chemtura makes and distributes specialty chemical solutions
and consumer products globally. Its broad range of offerings
includes recreational water purification products, petroleum
additives, seed treatments, pesticides, bromine and bromine-based
products and hot cast elastomers. The company serves a host of
industries including agriculture, automotive, building and
construction, electronics, packaging, plastics and
Chemtura currently carries a Zacks Rank #3 (Hold).
Other companies in the specialty chemicals industry with a
favorable Zacks Rank are
Quaker Chemical Corporation
). All of them hold a Zacks Rank #1 (Strong Buy).
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