The Chemours Company (CC - Free Report) announced a 10% hike in prices for all Methylamines, Dimethylformamide, Dimethylacetamide and Dimethyl Sulfate products sold in North America. The hike will be effective Jul 1, 2018 or as contracts permit.
Chemours is exposed to headwinds from higher costs for certain raw materials. Higher raw material costs hurt margins in its Chemical Solutions segment in the first quarter. It expects input cost pressure to continue for the rest of the year. However, the company has implemented price hikes for certain products, which is likely to offset the impact of higher raw material costs and drive margins.
Chemours’ shares moved up 8.3% over the past six months, outperforming the industry’s 3.6% dip.
Based on its solid first-quarter results and visibility into the balance of 2018, Chemours continues to expect adjusted EBITDA to be at the higher end of its earlier announced range of $1.7-$1.85 billion driven by sustained positive momentum across its businesses. It expects adjusted earnings per share to be in the band of $5-$5.75. Chemours expects to deliver further margin expansion throughout the balance of 2018.
The company is gaining from healthy demand for Ti-Pure titanium dioxide, sustained adoption of Opteon refrigerant and higher demand for fluoropolymers products.
Zacks Rank & Other Stocks to Consider
Chemours currently sports a Zacks Rank #1 (Strong Buy).
Some other top-ranked stocks worth considering in the basic materials space are FMC Corporation (FMC - Free Report) , Westlake Chemical Corporation (WLK - Free Report) and Celanese Corporation (CE - Free Report) , each flaunting a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.
FMC Corp has an expected long-term earnings growth rate of 14.3%. Its shares have moved up 15.1% in a year.
Westlake Chemical has an expected long-term earnings growth rate of 12.2%. Its shares have rallied 86.7% in a year.
Celanese has an expected long-term earnings growth rate of 8.9%. Its shares have gained 31% in a year.
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