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U.S. Silica (SLCA) to Up Price of Industrial & Specialty Products

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U.S. Silica Holdings, Inc. (SLCA - Free Report) announced that it will increase prices of Industrial and Specialty segment products. This will include non-contracted diatomaceous earth, perlite, cellulose, silica and clay products used mainly in filtration, paints, coatings, elastomers, chemicals, glass, building products and other applications.

The upward price revision will be effective for shipments commencing on May 1, 2021 and will range upto 15% depending on the product and grade.

The price increase is driven by the current, significant inflationary pressures from raw materials, packaging, logistics and maintenance expenses.

Shares of U.S. Silica have surged 644.9% in the past year compared with 70.9% rise of the industry.

U.S. Silica, in its fourth-quarter call, stated that it predicts a sustainable long-term growth by serving key industries like food and beverage, production, housing automotive, glass manufacturing, biopharma and energy for 2021 and beyond. It is focused on prioritizing free cash flow, repositioning its Oil & Gas segment and expanding the Industrial and Specialty Products segment.

The company plans to deliver positive cash flow in 2021 and deleverage its balance sheet, keeping $30-40 million of capital expenditures within operating cash flow.

The Industrial & Specialty Products segment started 2021 on a positive note and the company expects growth to outpace U.S. GDP. It has taken initiatives to reduce costs in the Oil & Gas segment. It also expects a strong recovery in energy sector proppant and last mile delivery demand in the first half of 2021.

 

Zacks Rank & Other Key Picks

U.S. Silica currently carries a Zacks Rank #2 (Buy).

Some other top-ranked stocks in the basic materials space are Fortescue Metals Group Limited (FSUGY - Free Report) , Ashland Global Holdings Inc. (ASH - Free Report) and Impala Platinum Holdings Limited (IMPUY - Free Report) .

Fortescue has a projected earnings growth rate of 107.8% for the current fiscal. The company’s shares have surged 147.9% in a year. It currently flaunts a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank  stocks here.

Ashland has an expected earnings growth rate of 83.2% for the current fiscal. The company’s shares have gained 84.9% in the past year. It currently sports a Zacks Rank #1.

Impala has an expected earnings growth rate of 197.6% for the current fiscal. The company’s shares have skyrocketed 357.9% in the past year. It currently flaunts a Zacks Rank #1.

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