67 WALL STREET, New York - July 22, 2013 - The Wall Street Transcript has just published its Agricultural & Specialty Chemicals Report offering a timely review of the sector to serious investors and industry executives. This special feature contains expert industry commentary through in-depth interviews with public company CEOs and Equity Analysts. The full issue is available by calling (212) 952-7433 or via The Wall Street Transcript Online.
Topics covered: Crop Yield Management - U.S. Corn Crop - Chemicals Companies Pricing Power - Fertilizers, Paints and Coatings, and Petrochemicals - Emerging Market Demand - Specialty Chemicals and Fertilizer Pricing Power
Companies include: PPG Industries Inc. (PPG), RPM International Inc. (RPM), Valspar Corp. (VAL), Sherwin-Williams Co. (SHW), Compass Minerals International (CMP), Cabot Corp. (CBT), NewMarket Corp. (NEU), Innospec Inc. (IOSP), OM Group Inc. (OMG), Huntsman Corp. (HUN), Carlisle Companies Inc. (CSL), Intrepid Potash, Inc. (IPI), Koppers Holdings Inc. (KOP), Polyone Corp. (POL), Cytec Industries Inc. (CYT) and many more.
In the following excerpt from the Agricultural & Specialty Chemicals Report, an expert analyst discusses the outlook for the sector for investors:
TWST: Which segment within the chemicals sector are you most bullish about at the moment and why?
Mr. Marcuse: Right now, the specialty chemical industry as a whole in the near term is likely going to experience low demand, driven by regions in Europe. Sectors that I continue to be fairly positive on are those related to North American housing, so the paints and coatings, and other companies that are impacted in some degree; Sherwin being the biggest exposure to U.S. construction in my space. Valspar and PPG also have decent exposure to North American construction, so I like those companies.
I also like companies where they have a little bit more defensive type of global position. Innospec would be one that comes to mind. I am also becoming more positive on sectors that appear to be close to a trough level, such as tires, and the companies that would benefit from an improving outlook going into next year, such as Cabot Corporation, who is exposed to the global tire industry. But still, I guess the best companies would be anything related to North American construction; residential construction tends should have a pretty good future, at least near term.
TWST: What impact does demand in Asia have on your group?
Mr. Marcuse: It varies. It depends; if you look at a PPG, Asia would have a fairly decent percentage of sales, but they sell mostly into the domestic market versus the export market, so they continue to see a fairly good strength in that market at this point. Companies that sell more into the export market, like a Huntsman or a Chemtura, will be negatively impacted if demand continues to slow, or gets worse, in Asia. That would be a headwind for those companies.
TWST: Last year when you spoke to us, there was some inflation in raw materials costs. What is happening with those costs at this point?
For more of this interview and many others visit the Wall Street Transcript - a unique service for investors and industry researchers - providing fresh commentary and insight through verbatim interviews with CEOs, portfolio managers and research analysts. This special issue is available by calling (212) 952-7433 or via The Wall Street Transcript Online.
- Basic Materials Industry
- Specialty Chemicals