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Cabot and Nexeo Expand Deal for Distribution in Canada

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Cabot Corporation (CBT - Free Report) and Nexeo Solutions have expanded their agreement to distribute the former’s specialty carbon, fumed alumina, fumed silica, aerogel and dispersion product lines in Canada.

Cabot stated that working with Nexeo Solutions for distributing its high-value products has proved to be beneficial for customers. The company is pleased to expand the partnership and believes that working with Nexeo Solutions will help to deliver meaningful benefits to its customers in Canada.

Over the last eight months, Nexeo Solutions’ superior supply chain service and technical sales expertise have complemented Cabot’s high-quality products across industries. Customers are likely to benefit from a committed team that delivers the right solutions for their business needs by leveraging its strong distribution network, commercial and market expertise.

Cabot’s shares have gained 7.9% over the past three months, outperforming the industry’s 1.8% rise.

 


 

Cabot, during second-quarter fiscal 2018 earnings call, stated that it expects its Reinforcement Materials segment to continue its strong performance for the remainder of the year on the back of strong execution in a favorable market. For the Performance Chemicals segment, it expects to maintain margins while driving volume growth.

The company sees ongoing competitive pressures to impact results in the Purification Solutions unit amid lower variable costs and higher seasonal volumes in the second half of the year. For the Specialty Fluids segment, it expects the startup of drilling activity on previously awarded projects, which is likely to drive results for rest of the year.  

Zacks Rank & Stocks to Consider

Cabot currently carries a Zacks Rank #3 (Hold).

Some better-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 sporting a Zacks Rank #1 (Strong Buy). 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 18.8% in a year.

Westlake Chemical has an expected long-term earnings growth rate of 12.2%. Its shares have rallied 70.4% in a year.

Celanese has an expected long-term earnings growth rate of 8.9%. Its shares have gained 22.3% in a year.

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