Arch Chemicals beats expectations
Fri Feb 11, 2005 11:24 AM ET
NEW YORK, Feb 11 (Reuters) - Arch Chemicals Inc. on Friday posted a narrower-than-expected quarterly operating loss as sales grew by nearly a third, and the company forecast first-quarter profit far above Wall Street estimates.
Arch, which makes pool sanitizers and fire retardants, posted a net loss of $13.9 million, or 59 cents a share, for the fourth-quarter, compared with a loss of $2.6 million, or 11 cents, a year earlier.
Excluding special items, it reported a loss of 28 cents a share, a company spokesman said. On that basis analysts had expected a loss of 31 cents a share, according to Reuters Estimates.
Shares of the company rose 54 cents, or nearly 2 percent, to $27.70 in early trade on the New York Stock Exchange.
Sales in the quarter rose 32 percent to $241.8 million, taking 2004 sales up to a total of $1.12 billion which was about 30 percent percent higher than a year earlier.
For the first quarter of 2005, Norwalk, Connecticut-based Arch expected earnings of between 15 cents and 20 cents a share, higher than analysts' expectations of 7 cents.
Arch forecast sales in 2005 increasing by about 8 to 10 percent with earnings of between $1.20 to $1.30 a share, compared with 86 cents in 2004.
Analysts on average expected 2005 earnings of $1.33 a share, according to Reuters Estimates.
Its forecast was based on expectations of building market share in professional pool dealer and mass merchant markets and continuing strong demand for biocides used in marine antifouling paints, building products and anti-dandruff markets.
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