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
Quelle domage more like it. Rogerson you need to focus on your "core" remaining businesses rather than eeking out the last of Agro. Even your buybacks can't save you. Interested to see the valuation after the Agro sale is finalized. This will unfortunately take a dive unless you use all the cash to buy back shares...
probably thinks they can milk another qtr of Agro until the sale goes through. And maybe he sees unloading industrial engineered business. Although there are absolutely no takers out there. Dow has been trying to unload their equivalent with no luck.