The Chemours Company CC is set to hike prices by up to 10% of all Dimethylformamide (DMF), Methylamines, Dimethylacetamide (DMAC) and Dimethyl Sulfate (DMS) products sold in North America. The hike will be effective from Jan 1, 2019.
The price hike initiatives are likely to support the company’s margins going forward and help the company offset the impact of raw material cost inflation.
Notably, margins of the company’s Chemical Solutions segment benefited from price increases across mining solutions and performance chemicals and intermediates business lines during the third quarter.
Shares of Chemours have lost 43.2% in the past six months compared with the industry’s 14.8% decline.
Chemours expects all of its segments to deliver solid year-over-year top- and bottom-line growth. For Fluoroproducts, it expects results to improve on the back of continued adoption of Opteon refrigerants and strong demand for fluoropolymers products.
Moreover, the Chemical Solutions unit is projected to continue delivering improved performance driven by strong demand for mining solutions products. Chemours expects the Titanium Technologies segment to witness year-over-year improvement, despite expected volume loss due to customer destocking.
Chemours expects adjusted EBITDA within the lower half of the original guidance of $1.70-$1.85 billion. Free cash flow is expected to be roughly $650 million for 2018. Adjusted earnings per share are projected in the range of $5.10-$5.85.
The Chemours Company Price and Consensus
The Chemours Company Price and Consensus | The Chemours Company Quote
Zacks Rank & Stocks to Consider
Chemours currently carries a Zacks Rank #4 (Sell).
A few better-ranked stocks in the basic materials space include CF Industries Holdings, Inc CF, Methanex Corporation MEOH and The Mosaic Company MOS, each sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
CF Industries has an expected long-term earnings growth rate of 6%. The company’s shares have gained 13.6% in the past year.
Methanex has an expected long-term earnings growth rate of 15%. Its shares have moved up 3.3% in a year’s time.
Mosaic has an expected long-term earnings growth rate of 7%. The company’s shares have surged 45.4% in the past year.
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