Chemical Week • November 4/11 • Specialty earnings trend slightly up despite mixed demand

Specialty chemical producers in the Americas found mixed results in the third-quarter as tepid signs of recovery in volumes lifted earnings just ahead of estimates. The outlook for the fourth quarter remains cautious.

Ecolab reported third-quarter net income of $737 million, an 82% increase from the prior year, primarily due to a gain from the sale of its global surgical solutions business. Adjusted operating income, excluding one-time impacts, was $522 million, up 18% year over year, driven by improved volumes, stronger pricing and modestly lower delivered product costs. Adjusted earnings per share (EPS) were $1.83, up 19% and 1 cent above consensus analysts’ estimates.

Albemarle Corp. reported a net loss of $1.1 billion, compared with a net profit of $302.5 million in the year-ago period, on continued sagging in lithium market prices. Net sales fell 41.4% year over year, to $1.4 billion. The company posted an adjusted loss per share of $1.55, well below analysts’ consensus estimate of a loss of 43 cents per share.

The Chemours Co. reported a third-quarter net loss of $27 million, compared with a net gain of $12 million in the year-ago quarter. Sales were $1.5 billion, up 1% year over year, as volumes were up 5%, offset by a 3% decrease in price. Adjusted EPS totaled 40 cents. Axalta Coatings Systems Ltd. posted net income of $102 million, up 40% year over year. Adjusted EBITDA was $291 million for the quarter, up 12% on lower costs and operating expenses. Net sales were $1.3 billion, up 1% year over year. Adjusted EPS was 59 cents, up 31% year over year and 8 cents above consensus analysts’ estimates.

Cabot Corp. reported fiscal fourth-quarter net income of $137 million, down 41% year over year on sales of $1.001 billion, up 4%. Adjusted EPS came to $1.80, up 9% year over year and just above analysts’ consensus estimate of $1.79. Volumes were down 7% in the Americas due to drought-related constraints at its Altamira, Mexico, plant and lower demand levels from its tire customers due to increased imports from Asia.

Avient Corp. reported net income of $38 million, up 649% year over year from $5 million, on sales of $815 million, up 8%. “Latin America and Asia each delivered organic double-digit topline increases of 27% and 11%, respectively, driven by growth in the packaging and consumer markets,” said Ashish Khandpur, president and CEO. Adjusted EPS came to 65 cents, up 14% year over year.