As we’ve said frequently over the years the relatively long sales cycle ranging from between 18 months and three years, depending on the customer, and the large nature of HPC orders makes forecasting inherently complex quarter-to-quarter. It’s important to note that we maintained our HPC market share during the second quarter where we were the incumbent supplier we supplied the vast majority of resales in the quarter.
We even picked up a couple hundred net tons in situations where we were not the incumbent. This was simply a quarter when not many of the units we supply were up for resale. Fundamentally our catalyst franchise overall is maintaining market share, remains healthy, and continues to enjoy excellent competitive positioning and growth prospects.
At this time I’d like to elaborate a little on the special item we reported this quarter related to approximately $95 million, $74 million after tax or $0.82 per share of charges related to our previously announced plans to exit the phosphorous flame retardant business. The cash outlay related to this exit is expected to be in the $5 to $15 million range with a payback in approximately one year.
Earning wise, full year 2013 should benefit by somewhere between $0.10 and $0.13 per share from this action. We have a history of managing assets that are not meeting our performance targets and our sites in Avonmouth and Nanjing were disadvantage from a location, scale and product mix standpoint. The charges taken should be sufficient to cover all exit costs and this decision will not impact our ability to achieve 2015.Read the rest of this transcript for free on seekingalpha.com
Select the service that is right for you!COMPARE ALL SERVICES
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV