Rockwood Holdings Inc. (NYSE:ROC) delivered a profit and missed Wall Street’s expectations, BUT beat the revenue expectation. The revenue beat is a positive sign to shareholders seeking high growth out of the company.
Rockwood Holdings Inc. Earnings Cheat Sheet
Results: Adjusted Earnings Per Share decreased 41.13% to $0.73 in the quarter versus EPS of $1.24 in the year-earlier quarter.
Revenue: Rose 7.37% to $972.3 million from the year-earlier quarter.
Actual vs. Wall St. Expectations: Rockwood Holdings Inc. reported adjusted EPS income of $0.73 per share. By that measure, the company missed the mean analyst estimate of $0.76. It beat the average revenue estimate of $955.94 million.
Quoting Management: Seifi Ghasemi, Chairman and Chief Executive Officer, commented, “Our core Lithium and Surface Treatment business segments performed well within expectations, delivering improved quarter on quarter Adjusted EBITDA performance and strong margins of 39% and 23%, respectively. These results however, were overshadowed, as we had indicated on our April 30 first quarter earnings call, by continued weak performance from the Titanium Dioxide Pigments business. Our Performance Additives segment did not perform to our expectations due to a slow recovery in consumer discretionary spending for remodeling activities and weaker starts of new homes impacted by both economic and adverse weather conditions in the US.
“We have made significant progress in implementing our stated goal to divest non-strategic businesses by entering into definitive agreements to sell our Advanced Ceramics and Clay-based Additives businesses at very attractive multiples.”
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