Chemtura Corporation’s (CHMT) Petroleum Additives business has increased the price of its Naugalube ADPA products including Naugalube 438L, Naugalube 640, Naugalube 680 and Naugalube 750 by 50 cents per kilo. The price hike is effective Sep 15, 2013, or as per the contracts. This increase is a compensatory action against the cost increases.
Chemtura’s Naugalube greener technologies include Naugalube antioxidants and Naugalube friction modifiers. Naugalube antioxidants have prolonged lubricant life property and help in reducing automotive emissions. Naugalube friction modifiers help minimize fuel consumption in automobiles, helping automakers achieve the number of miles per gallon. Naugalube friction modifiers are also used in engine oils globally.
Chemtura Petroleum Additives business unit supplies lubricant additives, fuel additives, synthetic basestocks and synthetic finished lubricants that are used in a wide range of applications and industries including automotive industry, power generation, aviation and certain niches in the industrial market such as refrigeration and grease.
Chemtura came out with its second-quarter 2013 results on Jul 30. The company reported a net income from continuing operation of $47 million or 47 cents a share compared with a profit of $53 million or 53 cents a share a year ago. Adjusted earnings from continuing operation of 40 cents per share surpassed the Zacks Consensus Estimate of 37 cents.
Revenues went down roughly 1% year over year to $735 million in the quarter and were in line with the Zacks Consensus Estimate. Lower selling prices and unfavorable foreign currency translation affected revenues in the quarter.
Chemtura expects its Industrial Performance Products, Consumer Products and Chemtura AgroSolutions segments to continue their improved performance trends in the second half of 2013. Chemtura further expects demand for insulation foam and electronics applications to improve in 2013.
Chemtura currently carries a Zacks Rank #4 (Sell).
Other companies in the specialty chemicals industry with favorable Zacks Rank are Ferro Corp. ( FOE), Minerals Technologies Inc. ( MTX) and Sensient Technologies Corp. ( SXT). While Ferro Corp. holds a Zacks Rank #1 (Strong Buy), both Minerals Technologies and Sensient Technologies retain a Zacks Rank #2 (Buy).
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