Chemtura (CEM) - Get Report said it expects third-quarter and second-half earnings to fall "substantially below prior expectations."

The Middlebury, Conn., chemicals company cited "a longer than expected lag between volume recapture and margin recovery" and "softness in Crop in Latin America."

Chemtura also said it sold its majority interest in the Davis-Standard polymer processing equipment joint venture to partner Hamilton Robinson for $72 million in cash, plus an additional $8 million that is contingent upon certain postclosing determinations.

"This transaction is completely consistent with our strategy of focusing our resources on our core businesses," Chemtura said. "Formation of the joint venture with a partner who could improve productivity, had global reach and for whom this was a core business helped us realize significantly higher value than had we kept it in our own portfolio."

Shares were halted late Monday.