10 October 2013 23:53 [Source: ICIS news]
HOUSTON (ICIS)--Chemtura expects its third-quarter earnings to be substantially below consensus, the US-based specialty chemicals producer said on Thursday.
Chemtura attributes the Q3 performance to its plans to treat its Consumer Products segment as discontinued operations. Chemtura has reached an agreement to sell the business to KIK Custom Products for $315m (€233m). The deal should close by 31 December.
Operating income for the company's Industrial Engineered Products segment should break even because applications for electronics and insulation foam remain weak, CEO Craig Rogerson said in a statement. As a result of that weakness, Chemtura will record an increase in inventory reserves for some slower moving electronic products.
In addition, the company's Industrial Performance Products segment absorbed the initial start-up costs for its new plants in the Netherlands and China, Rogerson said. However, operating income should be about the same as Q3 2012.
Chemtura AgroSolutions expects operating income to increase by 15% year on year, Rogerson said.
Chemtura is considering selling AgroSolutions.
($1 = €0.74)
|ICIS news FREE TRIAL|
|Get access to breaking chemical news as it happens.|
|ICIS Global Petrochemical Index (IPEX)|
Asian Chemical Connections