Discover the best free resources on Zacks.com
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating indiv idual securities.
If you wish to go to ZacksTrade, click
OK. If you do not, click Cancel.
Back to top
Specialty chemical company
Chemtura Corporation ( CHMT - Snapshot Report) has acquired UP Chemical Co., Ltd.’s 50% interest in DayStar Materials, LLC. DayStar is a South Korea based producer and marketer of high-purity metal organic precursors for the fast growing light-emitting diode (LED) market.
DayStar was formed in 2011 through a joint venture between Chemtura and UP Chemical. With the acquisition of the remaining 50% stake in DayStar, Chemtura now holds a 100% interest in the company. DayStar will be included in Chemtura’s Organometallic Specialties (OMS) business and play a key role in implementing OMS’ strategy to create a sustainable competitive advantage by providing technologically enhanced products in emerging high-end, greener-application markets.
Pursuant to the transaction, Chemtura plans to build a fully integrated manufacturing, quality, service and distribution channel in Asia by leveraging its total electronic-grade trialkyl product portfolio of trimethylgallium, triethylgallium, trimethylaluminum and trimethylindium.
Chemtura came out with its first-quarter 2013 results on May 2. The company reported a net loss from continuing operation of $21 million or 21 cents a share compared with a profit of $22 million or 22 cents a share a year ago. The results were impacted by higher environmental reserve associated with remediation of a site in France. Earnings from continuing operation of 15 cents per share missed the Zacks Consensus Estimate of 19 cents and were below 18 cents a year ago.
Revenues went down roughly 2% year over year to $606 million in the quarter and missed the Zacks Consensus Estimate of $634 million. Lower net sales volumes affected revenues. Also, Chemtura saw weak demand in its industrial engineered products business which led to the decline despite the remaining three of four segments delivering improved performances.
Moving ahead, Chemtura expects its Industrial Performance Products, Consumer Products and Chemtura AgroSolutions segments to continue their improved performance trends in the second quarter of 2013. Chemtura further expects demand for insulation foam and electronics applications to improve in 2013.
However, a significant improvement is not likely in the second quarter, which may lead only to a modest improvement in the Industrial Engineered Products segment. Chemtura is focusing on establishing appropriate pricing levels for bromine based products and implementing cost effective measures.
Chemtura currently carries a Zacks Rank #5 (Strong Sell).
Other companies in the specialty chemicals industry with favorable Zacks Rank are American Pacific Corporation , American Vanguard Corp. ( AVD - Snapshot Report) and Ferro Corp. ( FOE - Snapshot Report) . While American Pacific and American Vanguard holds a Zacks Rank #1 (Strong Buy), Ferro Corp. retain a Zacks Rank #2 (Buy).