Specialty chemicals company
) has bought a 20% stake in Japan-based spray polyurethane foam
insulation company Nippon Aqua Co. Ltd. In addition, Huntsman has
inked a ten-year supply pact with the Yokohama-based company. The
terms of the deal were undisclosed.
Nippon Aqua is the market leader in spray polyurethane foam
insulation in Japan. The entity, which is a subsidiary of leading
residential home builder Hinokiya Holdings Co. Ltd, operates in
more than 30 locations across the island nation. Huntsman
supplies a number of advanced methylene diphenyl diisocyanate
(MDI)-based polyurethanes systems to Nippon Aqua.
Following the Fukushima Daiichi nuclear plant disaster in
2011, there is a significant focus on how Japan will source its
energy requirements and an increasing demand amongst consumers
for more effective insulation. The investment in Nippon Aqua will
allow Huntsman to address these significant needs and help Nippon
Aqua to meet strong demand for insulation.
Huntsman announced its fourth-quarter 2012 results last month.
The company turned to a loss in the quarter on a reported basis,
hurt by $78 million of loss on early redemption of debt and $40
million of restructuring charges. Adjusted earnings of 24 cents a
share were in line with the Zacks Consensus Estimate while
trailing the year-ago earnings of 28 cents per share.
Revenues inched down 0.5% year over year to $2,619 million in
the fourth quarter, yet surpassed the Zacks Consensus Estimate of
$2,492 million. Higher sales across Huntsman's polyurethanes and
textile effects businesses were eclipsed by declines across
performance products, advanced materials and pigments
Huntsman currently carries a short-term (1 to 3 months) Zacks
Rank #3 (Hold).
Other companies in the chemical industry with favorable Zacks
Akzo Nobel NV
). All three retain a Zacks Rank #2 (Buy).
AKZO NOBEL NV (AKZOY): Free Stock Analysis
AIR PRODS & CHE (APD): Free Stock Analysis
AXIALL CORP (AXLL): Free Stock Analysis
HUNTSMAN CORP (HUN): Free Stock Analysis
To read this article on Zacks.com click here.