Chemtura Corporation’s (CHMT - Snapshot Report) Petroleum Additives business has declared a price hike for detergent products (Hybase, Lobase, Calcinate, Barium, Surchem) by 11 cents per kilo, effective Sep 20, 2013, or as contracts permit. The price revision came as a compensation for continuous increases in raw material costs.
A few days ago, Petroleum Additives business declared a price hike for Diphenylamine (DPA) in all packages by 10 cents per kilo. The business unit also increased the prices for its natural fatty acid-based lubricant products by up to 20%, effective Oct 1, 2013, or as contracts allow.
Chemtura Petroleum Additives business unit supplies lubricant additives, fuel additives, synthetic basestocks and synthetic finished lubricants that are used in a wide range of applications and industries including automotives, power generation, aviation and certain niches in the industrial market as refrigeration and grease.
Chemtura came out with its second-quarter 2013 results on Jul 30. The company reported net income from continuing operations of $47 million or 47 cents a share compared with a profit of $53 million or 53 cents a share a year ago. Adjusted earnings from continuing operation of 40 cents per share surpassed the Zacks Consensus Estimate of 37 cents.
Revenues went down roughly 1% year over year to $735 million in the quarter and were in line with the Zacks Consensus Estimate. Lower selling prices and unfavorable foreign currency translation affected revenues in the quarter.
Chemtura expects its Industrial Performance Products, Consumer Products and Chemtura AgroSolutions segments to continue their improved performance trends into the second half of 2013. Chemtura further expects demand for insulation foam and electronics applications to improve in 2013.
Chemtura currently carries a Zacks Rank #3 (Hold).
Other companies in the specialty chemicals industry with favorable Zacks Rank are Ferro Corp. (FOE - Snapshot Report), Minerals Technologies Inc. (MTX - Snapshot Report) and Sensient Technologies Corp. (SXT - Snapshot Report). All of them retain a Zacks Rank #2 (Buy).