Albemarle Corporation (ALB - Free Report) said that it will raise the price of its SAYTEX CP-2000 (tetrabromo bisphenol A) flame retardant by up to 15% on all shipments. The price hike is effective immediately or as per the contracts.
SAYTEX bromine-based flame retardants are used for electronic enclosures, electronic and electrical components, insulation foams and textiles. SAYTEX CP-2000 in particular is an immensely pure flame retardant consisting of stable aromatic bromine and can be used as a reactive or additive flame retardant. It can be best applied as a reactive monomer in epoxy and polycarbonate polymers.
SAYTEX CP-2000 is attractive due to its cost-effectiveness and permanent and non-migrating feature when reacted once.
Albemarle’s brominated flame retardant fall under the polymer solutions division in the Fine Chemistry business segment.
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’s second-quarter 2013 adjusted earnings (excluding non-operating items) of 97 cents a share dropped 24% from $1.28 a share earned in the year-ago quarter. The results were below the Zacks Consensus Estimate of 99 cents.
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 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.
Net sales in the Fine Chemistry segment slipped 16% to $176.1 million in the second quarter from $208.1 million in the previous-year quarter, primarily due to unfavorable sales volumes and pricing.
Albemarle also raised prices of its n-Propyl bromide based products by up to 20% globally on Aug 12. The price hike was effective immediately or as per the contracts.
Sluggish economic environment across Europe, weak electronics and construction markets, and lower metals surcharges at the beginning of 2013 impacted Albemarle’s performance. However, Albemarle successfully met several key milestones with the bromine and organometallics expansions, which are expected to be beneficial to the company on a long-term basis.
Albemarle retains a Zacks Rank #4 (Sell).
Other companies in the chemical industry having favorable Zacks Rank are Cytec Industries Inc. , WD-40 Company (WDFC - Free Report) and Eastman Chemical Co. (EMN - Free Report) . All of them carry a Zacks Rank #2 (Buy).