New Threads Only:  Add to Google Reader or Homepage
New Threads & Replies:  Add to Google Reader or Homepage
Forums are for serious investors only. GuruFocus Forum Rules.

Forum List » Business News and Headlines
SEC Filings, Earing Reports, Press Releases
New Topic Search
Goto Thread: PreviousNext
Goto: Forum ListMessage ListNew TopicSearchLog In
Arch Chemicals Inc. Reports Operating Results (10-Q)
Posted by: gurufocus (IP Logged)
Date: August 5, 2011 12:44PM

Arch Chemicals Inc. (ARJ) filed Quarterly Report for the period ended 2011-06-30. Arch Chemicals Inc. has a market cap of $1.19 billion; its shares were traded at around $46.95 with a P/E ratio of 18 and P/S ratio of 0.9. The dividend yield of Arch Chemicals Inc. stocks is 1.7%. Arch Chemicals Inc. had an annual average earning growth of 16.6% over the past 10 years.



Highlight of Business Operations:

In August 2010, the Company announced its decision to consolidate into one facility in Alpharetta, Georgia most of its existing U.S. research and development (“R&D”) and technical service activities currently conducted at three facilities. During the three months ended June 30, 2011, the Company recorded $0.3 million of relocation-related costs and $0.2 million of other costs related to the consolidation. The total pre-tax charge to consolidate these facilities is estimated to be in the range of $5 million to $7 million. Excluding the amounts which have been recorded to date, the remaining charge will consist of (i) $2 million to $3 million of relocation-related and employee severance costs and (ii) $1 million to $2 million of other costs. The Company anticipates that the consolidation will be completed, and the remaining charge recorded, in 2011.

In August 2010, the Company announced its decision to consolidate into one facility in Alpharetta, Georgia most of its existing U.S. R&D and technical service activities currently conducted at three facilities. During the six months ended June 30, 2011, the Company recorded $0.6 million of relocation-related costs and $0.2 million of other costs related to the consolidation.

Operating income increased $1.6 million. Included in 2011 operating income is $1.5 million of one-time legal-related costs for a final resolution of a patent dispute. Excluding the legal-related costs, operating income improved $3.1 million as the increased pricing and favorable foreign exchange more than offset higher raw material costs and the lower volumes.

Sales increased $9.2 million, or 20 percent, due to higher volumes (13 percent) and improved pricing (seven percent). Operating income decreased by $0.9 million.

Sales increased $22.5 million, or 25 percent, due to higher volumes (18 percent) and improved pricing (seven percent). Operating results improved by $0.8 million.

Performance urethanes sales increased $22.9 million, or 28 percent, due to higher volumes (20 percent) and higher pricing (eight percent). Volumes increased primarily due to increased demand for propylene glycol products used in airports for de-icing and related antifreeze applications. Higher pricing was driven by increased raw material costs. Operating results improved by $1.5 million as the higher pricing, and to a lesser extent, the improved volumes, more than offset higher raw material costs.

Read the The complete Report



Stocks Discussed: ARJ,
Rate this post:




Sorry, only registered users may post in this forum.

Please Login if you have an account or Create a Free Account if you don't




Get WordPress Plugins for easy affiliate links on Stock Tickers and Guru Names | Earn affiliate commissions by embedding GuruFocus Charts
GuruFocus Affiliate Program: Earn up to $400 per referral. ( Learn More)
Free 7-day Trial