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Huntsman (HUN) Expands Partnership With Azelis in Americas

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Huntsman Corporation (HUN - Free Report) announced the expansion of its Pan-American business relationship with Azelis Americas CASE, LLC in the United States and Azelis Canada, Inc. in Canada.

Per the agreement, Azelis will lead the distribution arm of the Coatings, Adhesives, Sealants & Elastomers (CASE) business for Huntsman Advanced Materials in Canada and the United States. Notably, the customer offer covers all of Huntsman's CASE business and CVC Thermoset Specialties product lines purchased in April 2020.

Per Huntsman’s management, the extended deal bolsters its footprint in target markets of Canada and the United States. Notably, the formal deals with Azelis are expected to be completed in the coming weeks.

Azelis is a leading distributor of specialty chemicals and food ingredients. Notably, it will be completely prepared to service its expanded territory by Oct 1, 2020.

Huntsman's shares have lost 3.8% in the past year compared with the industry’s 6.5% decline.

 

 

Huntsman, last month, reaffirmed its overall general guidance for the second quarter of 2020. The company expects second-quarter overall sales decline of 30-35% year over year.

In the Polyurethanes segment, the company anticipates results to be slightly better than projected on better-than-expected trends in the United States and China construction.

In the Textiles Effects segment, it expects results to be weaker than forecast primarily due to the prolonged impact of mandatory shutdowns in major textile-manufacturing regions.

For the Advanced Materials segment, the company anticipates results to be a little short of expectations due to a deeper trough in Aerospace, Europe and India than expected on its last quarterly earnings call.

For the Performance Products segment, Huntsman reiterated its prior guidance.

Huntsman Corporation Price and Consensus

 

Zacks Rank & Stocks to Consider

The company currently carries a Zacks Rank #3 (Hold).

Some better-ranked stocks in the basic materials space are Royal Gold, Inc. (RGLD - Free Report) , Equinox Gold Corp. (EQX - Free Report) andHarmony Gold Mining Company Limited (HMY - Free Report) .

Royal Goldhas a projected earnings growth rate of 62.1% for the current year. The company’s shares have gained 14.3% in a year. It currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Equinox Gold has a projected earnings growth rate of 65.5% for the current year. The stock has gained around 94% in a year. It currently has a Zacks Rank of 2 (Buy).

Harmony Gold has an expected earnings growth rate of 264.3% for 2020. The company’s shares have rallied 171.4% in the past year.It is presently a Zacks #2 Ranked player.

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