By Jack Kaskey
Aug. 2 (Bloomberg) -- Chemtura Corp. 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.
For Related News and Information:
Chemtura news: CHMT US CN
Bloomberg Industries Basic Chemicals: BI BDCH
Bloomberg Industries Agricultural Chemicals: BI AGCH
--Editors: Jessica Resnick-Ault, Charles Siler
To contact the reporter on this story:
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To contact the editor responsible for this story:
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