Chemtura Corporation (CHMT) Tops Q1 EPS by 13c

Chemtura Corporation (NYSE: CHMT) reported Q1 EPS of $0.30, $0.13 better than the analyst estimate of $0.17. Revenue for the quarter came in at $438 million versus the consensus estimate of $475.68 million.

"In the first quarter, we delivered significant sequential and year-over-year improvement in managed basis earnings in our Core Segments, despite lower revenues," commented Craig Rogerson, Chemtura's Chairman, President and Chief Executive Officer. "Adjusted EBITDA in our Core Segments was $51 million, an increase of $15 million or 42% compared to prior year and $10 million or 24% sequentially. We continued to make progress on our cost reduction initiatives that benefited our overall results in the first quarter, especially reductions in our selling, general and administrative costs. We continued our share repurchase program in the first quarter, repurchasing 5.1 million shares of our common stock at a cost of $122 million," said Mr. Rogerson.

Commenting on the performance of our segments, Mr. Rogerson noted, "Industrial Performance Products saw lower revenues year-on-year due to changes in product mix. Adjusted EBITDA was impacted by the changes in product mix, but the effect was offset by lower input costs, especially from petroleum-based feed-stocks. Industrial Engineered Products saw sales revenue decline compared to a year ago and, to a lesser extent, sequentially due to lower volume. These declines were driven by the continued erosion of sales in our furniture foam flame retardant business combined with bromine supply disruptions at a third party supplier. IEP also was able to partially offset lower revenue with lower input costs and experienced strong sales of clear brine fluids despite pressure on the drilling industry from lower priced oil. We are encouraged by the sequential performance improvement of our organometallics business. Our Core Segments saw revenue decline due to the negative effects of foreign currency translation, but the nature of our footprint and operations made foreign currency translation's effect on Adjusted EBITDA negligible for the quarter."

For earnings history and earnings-related data on Chemtura Corporation (CHMT) click here.

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