Chemtura Corporation’s (CHMT - Free Report) Petroleum Additives business has declared a price hike for Diphenylamine (DPA) in all packages by 10 cents per kilo, effective Sep 15, 2013, or as contracts allow. The price revision came as a compensation for continuous increases in raw material and manufacturing costs.
DPA is a chemical composition that is broadly used as an antioxidant for lubricants, propellants, and explosives. It is also used as a key intermediate in the dye, agrochemical, pharmaceutical, and rubber and plastic additive industries.
Also, the Petroleum Additives declared a price hike for its Naugalube ADPA products including Naugalube 438L, Naugalube 640, Naugalube 680 and Naugalube 750 by 50 cents per kilo. The price hike is effective Sep 15, 2013, or as per the contracts. This price increase is also a compensatory action against the cost increases.
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. This price hike resulted from a global supply and demand imbalance that led to an escalation of raw material costs required to manufacture the lubricants.
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 automotive industry, power generation, aviation and certain niches in the industrial market such as refrigeration and grease.
Chemtura came out with its second-quarter 2013 results on Jul 30. The company reported a net income from continuing operation 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 in 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 #4 (Sell).
Other companies in the specialty chemicals industry with favorable Zacks Rank are Ferro Corp. (FOE - Free Report) , Minerals Technologies Inc. (MTX - Free Report) and Sensient Technologies Corp. (SXT - Free Report) . While Ferro holds a Zacks Rank #1 (Strong Buy), both Minerals Technologies and Sensient Technologies retain a Zacks Rank #2 (Buy).