Back to top

Analyst Blog

Albemarle Corporation (ALB - Snapshot Report) announced that its catalyst manufacturing plant at its facility in Yeosu, South Korea, has come online. The plant will produce commercial quantities of single site metallocene catalysts, which will include grades enhanced by Albemarle's proprietary ActivCat activation technology, along with catalyst components such as methylaluminoxane (MAO).

The plant in Yeosu is the latest investment that Albemarle has made to cater to the growing global demand for metallocene and single site finished catalysts. The state-of-the- art Yeosu facility will provide a fully integrated platform to produce lab, pilot and commercial quantities of metallocene catalysts to meet the increasing needs of polyolefin producers around the world, including those in the high-growth Asia-Pacific region. Albemarle now guarantees abundant supply of metallocene catalyst with its plants now located at both Yeosu and Baton Rouge.

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 businesses.

Albemarle retains a Zacks Rank #4 (Sell).

Other companies in the chemical industry worth considering are Northern Technologies International Corp. , Cytec Industries Inc. (CYT - Snapshot Report) and Eastman Chemical Co. (EMN - Analyst Report). All of them hold a Zacks Rank #2 (Buy).

Please login to Zacks.com or register to post a comment.

New to Zacks?

Start Here

Zacks Investment Research

Close

Are you a new Zacks Member or a visitor to Zacks.com?

Top Zacks Features

My Portfolio Tracker

Is it Time to Sell?

One of the most important steps you can take today is to set up your portfolio tracker on Zacks.com. Once you do, you'll be notified of major events affecting your stocks and/or funds with daily email alerts.

More Zacks Resources

Zacks Rank Home - Evaluate your stocks and use the Zacks Rank to eliminate the losers and keep the winners.

Mutual Fund Rank Home - Evaluate your funds with the Mutual Fund Rank for both your personal and retirement funds.

Stock/Mutual Fund Screening - Find better stocks and mutual funds. The ones most likely to beat the market and provide a positive return.

My Portfolio - Track your Portfolio and find out where your stocks/mutual funds stack up with the Zacks Rank.

Zacks #1 Rank Top Movers for Zacks #1 Rank Top Movers

Company Symbol Price %Chg
CENTURY ALU… CENX 22.53 +4.50%
ERBA DIAGNO… ERB 2.91 +4.30%
PLANAR SYST… PLNR 4.31 +3.86%
MALLINCKROD… MNK 72.17 +3.83%
GTT COMMUNI… GTT 12.06 +3.52%