Ingevity Corporation (NGVT - Free Report) has commenced production at its new $20-million state-of-the-art activated carbon extrusion plant in Changshu, China. The new facility allows the company to meet the rising global demand for pelletized carbon products. These products are mainly used in gasoline vapor emission control systems in motorcycles, trucks, cars and boats.
Per the company, the new facility that currently houses one new extrusion line complements its existing activated carbon plants in Zhuhai, China; Covington, VA; and Wickliffe, KY as well as the “honeycomb” scrubber plant in Georgia.
Ingevity has also relocated its extrusion line from its Wujiang, China, facility to Changshu. That line is expected to start production by the end of second-quarter 2019.
On Aug 14, 2018, Ingevity announced that it will boost the extrusion capacity at the facility in Covington. This facility is currently undergoing several upgrades, which include addition of a new pellet extrusion that will employ the same technology as implemented at the new facility in Changshu.
Ingevity’s Performance Materials division continues to witness higher demand for its advanced activated carbon pellet products for automotive applications. Moreover, the company is well positioned to continue investing in production and technical capabilities to meet customers’ requirements.
Ingevity is a global leader in the automotive application with more than 750 million units of globally-installed capacities and over four decades of experience in the automotive market.
The company has outperformed the industry in the past year. The company’s shares have gained 19.8%, against 5.3% decline for the industry.
Ingevity, in its third-quarter earnings call, increased the mid-point and narrowed the range for its 2018 guidance for adjusted EBITDA to $306-$314 million from $302-$314 million. The company reaffirmed its sales guidance of $1.10-$1.13 billion for the year.
In third-quarter 2018, the company’s profit and revenues increased year over year. Adjusted EBITDA climbed year over year on the back of increased volumes, better price and mix, and reduced raw-materials and production costs. Revenues from Performance Chemicals and Performance Materials segments went up year over year.
Ingevity Corporation Price and Consensus
Zacks Rank & Stocks to Consider
Ingevity currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the basic materials space are The Mosaic Company (MOS - Free Report) , Gerdau S.A. (GGB - Free Report) and Air Products and Chemicals, Inc. (APD - Free Report) .
Mosaic has an expected long-term earnings growth rate of 7% and a Zacks Rank #1 (Strong Buy). The company’s shares have rallied 46.3% in the past year. You can see the complete list of today’s Zacks #1 Rank stocks here.
Gerdau has an expected long-term earnings growth rate of 24.3% and a Zacks Rank #2 (Buy). The company’s shares have climbed 16.3% in the past year.
Air Products has an expected long-term earnings growth rate of 11.8% and a Zacks Rank #2 (Buy). The company’s shares have gained 0.3% over the past year.
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