Chemtura Corp. (CHMT) rose the most since the chemical maker emerged from bankruptcy in 2010 after sales of pesticides helped boost second-quarter profit more than analysts had estimated.
Chemtura climbed 15 percent to $14.95 at the close in New York. The shares earlier rose as much as 19 percent, the biggest gain since the Philadelphia-based company exited Chapter 11 bankruptcy protection in October 2010.
Profit was 61 cents a share excluding costs related to facility closures and other items, Chemtura said today in a statement. That topped the 52-cent average estimate of three analysts’ estimates compiled by Bloomberg. Operating income in the AgroSolutions business, which sells insecticides, weed killers and seed treatments, nearly doubled to $23 million.
“Ag led the upside with strong margin expansion,” Edward Yang, an Austin, Texas-based analyst at Oppenheimer & Co. who rates the shares outperform, said today in a note to clients. “Chemtura’s results and outlook provide evidence that its rebuilding efforts from bankruptcy are gaining traction.”
The company said results in the third and fourth quarters will increase from a year earlier, and it may double its share repurchase program to $100 million.
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