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Chemtura Sees Wide Earnings Miss

The shares tank 17%.
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(CEM) - Get ClearBridge MLP and Midstream Fund Inc. Report

said Tuesday it expects third-quarter earnings to fall well below Wall Street's expectations, citing weak volume across its businesses and the impact of Hurricane Katrina.

The specialty chemicals maker now sees earnings for the quarter of about 10 cents a share, before charges. Wall Street analysts were expecting earnings of 19 cents a share, according to Thomson Financial.

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The company said its latest estimate reflects about $40 million in lower-than-expected operating income with about 15% of the shortfall coming from costs related to the hurricane. It observed weakness across its businesses, particularly in its consumer products and fluorine specialties.

"We are extremely disappointed by the softness in volume in the third quarter," Chemtura said in a statement. "While we would have liked strong, uninterrupted earnings growth, we believe this quarter and next will prove to be anomalies in an otherwise strong long-term story."

Shares of Chemtura were recently down $2.59, or 17.1%, to $12.58.