Forsyth doesn't do any analyst meetings/IR discussions anymore. He merely reads the scripted quarterly performance results. And Rogerson is apparently taking the summer off letting his Investor Relations lackies troll around. Must not be anything good to say.
It's Gabelli jacking this up. And the stock buyback reducing shares O/S. Let's see how Q1 is now that they do not have the "seasonal" BS excuses anymore. Those positive earnings projections will be disappointing as usual. I'm sure Forsyth is trying to develop some convoluted story which is why Sokol is making the rounds with the analysts instead.
They are operating with the same G&A levels when they were a $3.8B company with 5 major platforms. Now they are basically Great lakes and Anderol. When are Rogerson and Forsyth going to take pay cuts since they have less than 1/2 the business and work they used to do...$6.7M in 2013 waiting on the proxy to see how much they pulled in 2014.
And Chet Cross-what does he do now? Everything is outsourced. They paid $1M for his relocation to Shanghai (on top of his $1M in comp) only to have him return within a year and give him this plum assignment. Dumb f%ckers.
They also need to cut BOD fees - talk about overkill. They get about $200K for doing nothing. That's $1.4M in BOD fees. The only better scam is a union job.
Market cap is $1.8B, sales are only $2.1B and they will report about $40M earnings (engineered will have losses that even performance barely covers). $0.75 EPS doesn't do it folks. But that's what happens when you sell of the profitable businesses and hold onto the anchor in El Dorado. Drowning in brine....
Sentiment: Strong Sell
It must be 4Q-the annual "restructuring announcement". Never a good sign when the phrase "Despite the success of many of Chemtura's improvement initiatives" is used. The only successes they have had are selling off the profitable businesses. Any restructuring initiatives (ie layoffs) have failed because they seem to keep the fat and trim the muscle. Then they claim they lost weight...
The stranded costs are all the Crop people left in CT who never went with the Devil down to Georgia. Should be easy pickings to cut and all that administrative excess in Middlebury.
It's a shell game. Gabelli will sell off a block of his shares as part of the buyback and make a quick 10%.
Mario is the maestro for the Titanic's little quartet playing their last song before it sinks. The Great Lakes noose around their neck. Now that Noonan is gone, that market is toast. Can't sell it and it is definitely not "specialty" chemicals so they will tread water but there are no rescue boats in sight...and all the life boats have been deployed...executives and sr management first.
Glad to see they announced the 300mil dutch tender offer today. It should allow them to lock in lower prices at these levels, and take some of the uncertainty off the table about how many shares they will be able to buy back.
I agree, assuming they repurchase the 500mil near these levels, that should shrink the total equity pool by around 20-25% or so depending on the avg price. The payment of 250 mil of debt should decrease interest expense which will flow directly to the bottom line. That still leaves 250 mil for either additional buybacks, a dividend or maybe an acquisition. Even if they maintain profitability at current levels there should be at least a 20-25% rise in the equity assuming no mutiple expansion.
Best spin i can put on the continued disappointing performance
Where is the accountability
Cannot believe Gabelli will continue to support
Agreed-got to be a management crdibility issue at this point
Hope the largest holders bring some pressure to bear
And another shocker, they are going to somehow find $50 million of manufacturing cost to shed. They have layoffs every September, who is left. Time to eliminate some redundant senior executives. Chet Cross, your time is up. Mr. Rogerson you need to stop covering all your buddies' butts or yours will be out too.
Rogerson /Forsyth are idiots. Just as video killed the radio star-these 2 killed any hope of Chemtura surviving after the bankruptcy emergence. Since they sold off the profitable pieces, they are left holding the bag on the biggest loser Engineered. And now they are blowing Performance too. Thanks for the negative outlook. Was 20%-30% always pipe dream Craig?
Sentiment: Strong Sell