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Rockwood Hikes Dividend by 12.5%

Zacks Equity Research

Specialty chemicals and advanced materials company, Rockwood Holdings, Inc. (ROC), has announced a 12.5% hike in its quarterly cash dividend to 45 cents per share from 40 cents per share. The dividend will be paid on Sep 26, 2013, to shareholders of record at the close of business on Sep 11, 2013.

Rockwood previously increased its dividend by almost 15% in Feb 2013 to 40 cents from 35 cents per share.

Rockwood released its second-quarter 2013 results in Aug 2013. The company’s adjusted earnings (excluding other net charges and gains) of 73 cents per share were down roughly 41% from $1.24 per share earned a year ago, missing the Zacks Consensus Estimate by 3 cents.

Profit, as reported, tumbled 86% year over year to $32.3 million or 41 cents per share in the quarter from $224.9 million or $2.81 per share a year ago. The bottom line was hit by charges associated with sale of non-core assets, especially advanced ceramics and clay-based additives, and lower earnings from the Titanium Dioxide (TiO2) Pigments division.

Net sales rose 7.8% year over year to $822.3 million in the reported quarter. Consolidated sales (including discontinued operations) rose 7.4% to $972.3 million. By that measure, it beat the Zacks Consensus Estimate of $948 million.

Rockwood remains focused on optimizing free cash flow and implementing appropriate capital allocation strategies through dividends and share repurchases and reinvestment in key businesses in 2013.

Rockwood currently holds a Zacks Rank #5 (Strong Sell).

Other companies in the specialty chemical space with favorabe Zacks Rank are Ferro Corp. (FOE), Minerals Technologies Inc. (MTX) and Sensient Technologies Corporation (SXT). While Ferro retains a Zacks Rank #1 (Strong Buy), Minerals Technologies and Sensient Technologies retain a Zacks Rank #2 (Buy).

Read the Full Research Report on SXT

Read the Full Research Report on FOE

Read the Full Research Report on MTX

Read the Full Research Report on ROC

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