Albemarle Corporation (ALB) announced that it will hike dibromomethane (also referred to as DBM) and bromochloromethane (also referred to as BCM) prices by 25% globally. The price hike is effective immediately or as per the contracts permit.
Albemarle’s dibromomethane and bromochloromethane products belong to its Performance Chemicals unit within the Fine Chemistry business segment and are mainly used in agricultural products.
Based in Baton Rouge, La. Albemarle is a premier global developer, producer, and marketer of highly-engineered specialty chemicals for consumer electronics, petroleum refining, utilities, packaging, construction, automotive/transportation, pharmaceuticals, crop protection, food-safety and custom chemistry services. The company operates with more than 4,000 employees and serves customers around 100 countries.
Albemarle‘s first-quarter 2013 results, released last month, were disappointing as both revenues and adjusted earnings missed the Zacks Consensus Estimates. The company’s adjusted earnings (excluding non-operating items) for the quarter were 93 cents per share, behind the Zacks Consensus Estimate of $1.00, reflecting a negative surprise of around 7%.
Profit, as reported, was $84 million or 94 cents per share. This represents a roughly 26.5% decline from $114.3 million or $1.27 per share posted in the prior-year quarter.
Revenues decreased 9.8% to $641.6 million in the quarter from $711.7 million in the year-ago quarter, missing the Zacks Consensus Estimate of $674 million. The results were impacted by Albemarle’s exit from the phosphorus flame retardants business, lower metals surcharges and pricing on some products.
Albemarle currently retains a Zacks Rank #4 (Sell).
Other companies in the chemical industry with favorable Zacks Rank are Shin-Etsu Chemical Co., Ltd. (SHECY), Celanese Corporation (CE) and Methanex Corporation (MEOH). All of them hold a Zacks Rank #1 (Strong Buy).
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