Basic Materials and Chemicals Sector Ideas

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>>> UFP Industries Announces Second Quarter Results


Business Wire

Jul 30, 2024


https://finance.yahoo.com/news/ufp-industries-announces-second-quarter-110000125.html


GRAND RAPIDS, Mich., July 30, 2024--(BUSINESS WIRE)--UFP Industries, Inc. (Nasdaq: UFPI) today announced second quarter 2024 results including net sales of $1.9 billion, net earnings attributable to controlling interest of $126 million, and earnings per diluted share of $2.05.

"Our second quarter results were in line with expectations in a more challenging business cycle, and I am grateful for the efforts of all of our UFP teammates to adapt to this environment and adjust capacity to meet demand," said Chairman and CEO Matthew J. Missad. "The weaker environment and expected near-term softness in demand have enabled us to more aggressively pursue our long-term expansion plans and improvement strategies. These efforts include investments in automation and consolidating operations to eliminate redundancies, lower costs and enhance the profitability of each of our facilities. Additionally, we are using our strong balance sheet to stay on offense by investing in acquisitions, new ventures, new value-added products, and organic expansion, while returning capital to shareholders through our recently increased dividend and share repurchase program. Our long-term outlook for growth remains strong."

Second Quarter 2024 Highlights (comparisons on a year-over-year basis except where noted):

Net sales of $1.9 billion decreased 7 percent due to a 6 percent decrease in selling prices and a 1 percent decrease in organic unit sales. Quarter over quarter, the price of Southern Yellow Pine (SYP) decreased 19 percent, which contributed to our decrease in selling prices.

New product sales of $134 million were 7.0 percent of total sales compared to 7.4 percent in the second quarter of 2023. Many products that were considered new products in 2023 were sunset and not included in 2024 totals.

Net earnings attributable to controlling interests of $126 million represents a 16 percent decrease from last year.

Adjusted EBITDA1 of $204 million represents a decrease of 13 percent while adjusted EBITDA margin1 declined 80 basis points to 10.7 percent.

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1 Represents a non-GAAP measurement; see the reconciliation of non-GAAP financial measures and related explanations below.

Capital Allocation

UFP Industries maintains a strong balance sheet with $1.04 billion in cash on June 29, 2024, compared to $702 million in cash at the end of the second quarter of 2023. The company had approximately $2.3 billion of liquidity as of June 29, 2024. The company’s return-focused approach to capital allocation includes the following:

- Acquisitions and Organic Growth. The company continues to pursue strategic acquisitions and will invest in organic growth opportunities when acquisition targets are not available at valuations that will allow us to meet or exceed targeted return rates. The company is targeting capital investments in 2024 of up to $300 million for automation, technology upgrades, geographic expansion and increased capacity at existing facilities, specifically for its Deckorators, Site Built, metal packaging, and machine-built pallet businesses. Approximately $200 million of projects have been approved in 2024 and another $96 million in projects are pending approval. Longer lead times for equipment and site selection in the case of new locations may delay some investments until 2025.

- Dividend payments. On July 24, 2024, the UFP Industries Board of Directors approved a quarterly dividend payment of $0.33 per share, a 10 percent increase over the quarterly dividend of $0.30 per share paid in September 2023. The dividend is payable on September 16, 2024, to shareholders of record on September 2, 2024.

- Share repurchases. The company was authorized to purchase up to $200 million of outstanding stock through July 31, 2024. From July 26, 2023, through the end of the second quarter of 2024, the company repurchased approximately 1,477,000 shares at an average price of $110.96 (a total of $163.9 million). On July 24, 2024, the Board of Directors for UFP Industries authorized the company to repurchase up to $200 million of shares through July 31, 2025.

By business segment, the company reported the following second quarter 2024 results:

UFP Retail Solutions

Net sales of $809 million, down 14 percent compared to the second quarter of 2023, while gross profit increased 3 percent. Sales performance was attributable to a 7 percent decline in selling prices, a 5 percent decline in organic unit sales, and a 2 percent decline due to the transfer of certain product sales to the Packaging and Construction segments. Organic unit sales decreased 2 percent for Deckorators, 6 percent for ProWood and 4 percent for UFP-Edge. Overall, unit sales decreased 5 percent with big box customers, a decline that largely correlates with an easing in repair and remodel activity, and were flat with independent retailers. Gross profit for the retail segment increased 3 percent to $127 million, primarily due to operational improvements, SKU rationalization, and better inventory positioning and utilization of our managed inventory programs.

UFP Packaging

Net sales of $435 million were down 11 percent compared to the second quarter of 2023, due to an 8 percent decrease in selling prices and a 6 percent decline in organic unit sales, offset by a 3 percent increase from the transfer of certain product sales from the Retail segment. A 10 percent increase in organic unit sales for PalletOne, due to market share gains, partially offset an 11 percent decline in organic unit sales for Protective Packaging and a 12 percent decline in organic unit sales for Structural Packaging, attributable to weaker demand. Gross profit for the packaging segment decreased 29 percent to $84 million due to competitive price pressure and lower sales volumes.

UFP Construction

Net sales of $575 million increased 4 percent compared to the second quarter of 2023 as a 4 percent decrease in selling prices was offset by a 7 percent increase in organic unit sales and a 1 percent increase from the transfer of certain product sales from the Retail segment. Organic unit sales increased in Factory Built, up 19 percent due to an increase in industry production, and Site Built, up 4 percent, we believe due to market share gains in both existing and new product categories. Gross profit for the construction segment decreased 8 percent to $126 million due to competitive price pressure.

Short-Term Outlook

Lumber Market: We continue to anticipate lumber prices will remain at lower levels in 2024 based on current supply and demand dynamics.

End Market Demand: We continue to follow key indicators and forecasts in the markets we serve and have revised our outlook for the balance of 2024. We anticipate demand will decrease in Retail by mid-single digits, decrease in Packaging by mid- to high-single digits, and increase in Construction by low- to mid-single digits, reflecting continued strength in our Factory Built business. Generally, we expect the soft demand and competitive price environment will continue for the remainder of the year, resulting in more challenging year-over-year unit sales and profitability comparisons. We believe market share gains will help offset lower demand in each of our segments for the balance of the year.

CONFERENCE CALL

UFP Industries will conduct a conference call to discuss its outlook and information included in this news release at 9 a.m. ET on Tuesday, July 30, 2024. The call will be hosted by Chairman and CEO Matthew J. Missad and CFO Michael Cole and will be available simultaneously and in its entirety to all interested investors and news media through a webcast at https://www.ufpinvestor.com/news-filings-reports#events---presentations. A replay of the call will be available through the website.

UFP Industries, Inc.

UFP Industries, Inc. is a holding company whose operating subsidiaries – UFP Packaging, UFP Construction and UFP Retail Solutions – manufacture, distribute and sell a wide variety of value-added products used in residential and commercial construction, packaging and other industrial applications worldwide. Founded in 1955, the company is headquartered in Grand Rapids, Mich., with affiliates in North America, Europe, Asia and Australia. UFP Industries is ranked #493 on the Fortune 500 and #128 on Industry Week’s list of America’s Largest Manufacturers. For more about UFP Industries, go to www.ufpi.com.

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>>> Linde plc (LIN) operates as an industrial gas company in the Americas, Europe, the Middle East, Africa, Asia, and South Pacific. It offers atmospheric gases, including oxygen, nitrogen, argon, and rare gases; and process gases, such as carbon dioxide, helium, hydrogen, electronic gases, specialty gases, and acetylene. The company also designs and constructs turnkey process plants for third-party customers, as well as for the gas businesses in various locations, such as air separation, hydrogen, synthesis, olefin, and natural gas plants. It serves a range of industries, including healthcare, chemicals and energy, manufacturing, metals and mining, food and beverage, and electronics. The company was founded in 1879 and is based in Woking, the United Kingdom.

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>>> Scientists create earthquake-proof resin that seals rocks, heals cracks


Interesting Engineering

by Aman Tripathi

4-22-24


https://www.msn.com/en-us/news/technology/scientists-create-earthquake-proof-resin-that-seals-rocks-heals-cracks/ar-BB1mQBSz?OCID=ansmsnnews11


Researchers from Nagoya University have developed a revolutionary resin-based material that has demonstrated unprecedented capabilities in sealing cracks in rocks, even in the face of seismic activity.

This groundbreaking innovation, inspired by the natural fossilization process, holds the potential to transform various industries, from nuclear waste management to infrastructure maintenance.

Their innovation, a “concretion-forming resin,” not only seals cracks and fractures in rock but also demonstrates an unprecedented ability to self-heal after seismic events.

Inspiration from nature’s fossilization process

The resin’s ability to self-heal is particularly noteworthy, as it can potentially extend the lifespan of sealed structures and reduce the need for costly maintenance and repairs.

“I realized that well-preserved fossils in concretions had withstood weathering and the like for tens to hundreds of thousands of years in the natural environment,” said Hidekazu Yoshida, the lead researcher.

“I became inspired by studying how fast concretions were formed and why the fossils inside were preserved so well.”

The resin’s remarkable properties stem from its emulation of the natural formation of calcite concretions around organic matter, a process that has preserved fossils for millennia.

By mixing two agents that trigger rapid calcite crystal formation upon contact with water, the resin effectively fills and seals voids in rock, creating an impenetrable barrier.

Rigorous earthquake strike testing

The resin’s efficacy was rigorously tested in an underground laboratory situated 350 meters beneath Hokkaido, Japan’s northernmost island, a region renowned for its seismic activity.

Interestingly, the area experienced six earthquakes over two days during testing.

Notably, the resin maintained its seal throughout these events and exhibited a self-healing capability, resealing any cracks that formed due to the tremors.

This unparalleled resilience sets the concretion-forming resin apart from conventional cement-based sealants, which often fail to withstand such geological stresses.

“Such a fast-acting and sustained sealing effect of rock fractures, including post-earthquake crack repair, has never been reported before. Conventional cement materials cannot achieve this result,” added Yoshida.

The future of resin sealing

The implications of this innovation are far-reaching, extending beyond the safe disposal of hazardous waste and carbon dioxide.

The researchers are exploring the possibility of using the resin to seal cracks in concrete structures, which could significantly improve the durability and longevity of buildings and other infrastructure. It could be used to reinforce and stabilize tunnels and shafts in mines.

The resin will also prove invaluable in sealing abandoned oil wells, managing groundwater, and repairing aging infrastructure such as roads and buildings.

Additionally, the self-healing properties of the resin can be utilized to repair and protect ancient structures and artifacts from weathering and erosion.

To bring the resin to market, the research team is now collaborating with the Japan Atomic Energy Agency, Sekisui Chemical Co., and Chubu Electric Power Co., Ltd.

Concretions are found worldwide

Globally, remarkable fossils are often discovered encased within solid, spherical rocks known as concretions.

They are formed by the precipitation of mineral cement within the spaces between sediment particles. They are commonly found in sedimentary rocks or soil.

Earlier, Nagoya University researchers had discovered that concretions form rapidly, within months to years. The fast formation of concretions helps to quickly protect fossils.

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>>> Biden Says US Steel Should Stay American Owned and Operated


Bloomberg

by Jordan Fabian, Josh Wingrove and Joe Deaux

March 14, 2024


https://finance.yahoo.com/news/biden-says-us-steel-remain-111003311.html


(Bloomberg) -- President Joe Biden said United States Steel Corp. should retain American ownership, coming out against a takeover by Japan’s Nippon Steel Corp. despite the risk of upsetting a key ally.

US Steel shares retreated in early trading, after plunging 13% on Wednesday when news first broke that Biden would express concern about the deal. The shares are now trading at levels last seen before the Nippon deal was announced in December, suggesting investors are increasingly skeptical about its chances of success amid an ongoing federal review.

“US Steel has been an iconic American steel company for more than a century, and it is vital for it to remain an American steel company that is domestically owned and operated,” Biden said in a statement. “It is important that we maintain strong American steel companies powered by American steel workers. I told our steel workers I have their backs, and I meant it.”

Biden’s statement marks a rare presidential intervention in a transaction that outside an election year would have drawn less public scrutiny. Despite its storied history, US Steel’s role in the economy has diminished over several decades, a period during which producers in Asia have risen to dominate the global steel market. And while Nippon Steel’s proposed $14.1 billion acquisition targets an iconic business name, a takeover in the US commodities industry by a company based in a friendly country is hardly unusual.

Biden was silent on the pending review of the deal by the Committee on Foreign Investment in the United States, or CFIUS, and stopped short of an outright pledge to block it. CFIUS is led by the Treasury Department, and has the power to approve, block or amend the deal on national security grounds, or send it to Biden for a decision.

Timna Tanners, an analyst at Wolfe Research LLC, said the deal suffered from the “unfortunate timing” of being brokered in the midst of an election in which both candidates have vowed to bolster domestic manufacturing and use their power to stop jobs from going overseas.

“The deal is facing a much more difficult chance of going through now that Biden has come out against it,” she said. “It’s an alarming precedent that the US government is setting.”

US Steel fell 2.5% by 10:16 a.m. on Thursday, trading more than 25% below the $55 a share being offered by Nippon Steel. US Steel and Nippon Steel did not immediately respond to request for comment.

Even though its share of the market has shrank, US Steel carries heavy symbolic value. It is based in Pennsylvania, Biden’s birth state and a battleground in the presidential election, and embodied the nation’s economic might in the 20th century.

The announcement of Japanese company’s acquisition triggered opposition from Republican and Democratic lawmakers as well as the influential United Steelworkers union. Biden’s allies have urged the administration to kill the deal over national security concerns and the threat to unionized steel jobs.

The White House issued Biden’s statement as he campaigns in Michigan and Wisconsin, two Midwestern industrial strongholds that are crucial for him to win in November. Presumptive Republican nominee Donald Trump is vying for the same blue-collar workers in those states as Biden and has pledged to block the deal outright.

Biden moved against the deal as he prepares to host Japanese Prime Minister Fumio Kishida for a White House state dinner on April 10. The US president has looked to Japan as a bulwark against China in the Asia-Pacific region, but his opposition to the deal deal could strain the two countries’ relationship.

Bloomberg has reported previously that the Biden administration is examining Nippon Steel’s connections to China in its review of the US Steel deal, as it looks to ratchet up pressure on Beijing.

Biden’s comments on Thursday also drive home the influential position of the steelworkers’ union and its president David McCall. Talks between Nippon Steel and the USW have been rocky so far: the union is seeking written guarantees about honoring all labor contracts, while the company is offering at least $1.4 billion in additional capital spending as a sweetener.

It’s not clear what impact, if any, Biden’s statement will have on the CFIUS review. The Treasury Department did not immediately respond to a request for comment.

Pennsylvania Democratic Senator Bob Casey, who faces reelection in November, praised Biden for his “commitment to maintaining an American steel industry” but did not explicitly oppose the Nippon Steel sale, only saying he would “work like hell against any deal that leaves our Steelworkers behind.” Some stakeholders have concerns that US Steel might shutter facilities and cut jobs without a capital infusion.

John Fetterman, Pennsylvania’s other Democratic senator, cheered on Biden’s statement, posting “jam this up” on X, formerly Twitter.

Biden’s statement also raises the question of whether there’s an American alternative. The combative chief executive officer of Ohio-based Cleveland-Cliffs Inc. has said his offer is off the table. “It’s no longer a backstop for their failure,” he said in an interview last month.

Late Wednesday, US Steel and Nippon Steel said they welcomed scrutiny of the deal, claiming it would strengthen economic and national security.

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>>> Martin Marietta Materials, Inc. (MLM), a natural resource-based building materials company, supplies aggregates and heavy-side building materials to the construction industry in the United States and internationally. It offers crushed stone, sand, and gravel products; ready mixed concrete and asphalt; paving products and services; and Portland and specialty cement for use in the infrastructure projects, and nonresidential and residential construction markets, as well as in the railroad, agricultural, utility, and environmental industries. The company also produces magnesia-based chemicals products; dolomitic lime primarily to customers for steel production and soil stabilization; and cement treated materials. Its chemical products are used in flame retardants, wastewater treatment, pulp and paper production, and other environmental applications. The company was founded in 1939 and is headquartered in Raleigh, North Carolina.

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>>> Commercial Metals Company (CMC) manufactures, recycles, and fabricates steel and metal products, and related materials and services in the United States, Poland, China, and internationally. It operates through two segments, North America and Europe. The company processes and sells ferrous and nonferrous scrap metals to steel mills and foundries, aluminum sheet and ingot manufacturers, brass and bronze ingot makers, copper refineries and mills, secondary lead smelters, specialty steel mills, high temperature alloy manufacturers, and other consumers. It also manufactures and sells finished long steel products, including reinforcing bar, merchant bar, light structural, and other special sections, as well as semi-finished billets for rerolling and forging applications. In addition, the company provides fabricated rebar used to reinforce concrete primarily in the construction of commercial and non-commercial buildings, hospitals, convention centers, industrial plants, power plants, highways, bridges, arenas, stadiums, and dams; sells and rents construction-related products and equipment to concrete installers and other businesses; and manufactures and sells strength bars for the truck trailer industry, special bar steels for the energy market, and armor plates for military vehicles. Further, it manufactures rebars, merchant bars, and wire rods; and sells fabricated rebars, wire meshes, fabricated meshes, assembled rebar cages, and other fabricated rebar by-products to fabricators, manufacturers, distributors, and construction companies. The company was founded in 1915 and is headquartered in Irving, Texas.

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>>> Linde (LIN) -- Industrial stocks have been under pressure this year amid recession fears, but one name that continues to churn out steady results is Linde (NYSE:LIN). The global industrial gas giant just delivered a strong quarterly report driven by pricing power and operating leverage.


https://finance.yahoo.com/news/7-perfect-stock-picks-moody-204445345.html


LIN shares did initially slump post-earnings. But I think this just creates a better buying opportunity. Despite an uncertain macro outlook, Linde still grew earnings per share by 16% year-over-year. Its backlog remains robust at $7.8 billion, including $9-10 billion of clean energy opportunities expected to be decided in the coming years. The company continues to generate ample free cash flow it deploys into growth investments, returning ample capital to shareholders as well.

Some bears will argue that a recession threatens Linde’s end markets like manufacturing, chemicals, and metals. But here’s the thing – Linde operates in every major geography worldwide besides Antarctica. This diversification gives it an uncanny ability to navigate through regional slowdowns. For instance, while volumes are challenged in Europe, Linde continues posting solid growth in the Americas and Asia.

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>>> UFP Global Holdings Ltd. acquires controlling interest in Palets Suller Group


Business Wire

September 20, 2023


https://finance.yahoo.com/news/ufp-global-holdings-ltd-acquires-200500660.html


GRAND RAPIDS, Mich., September 20, 2023--(BUSINESS WIRE)--UFP Global Holdings Ltd., a subsidiary of UFP Industries, Inc. (Nasdaq: UFPI), has acquired 80 percent of the equity in a newly formed company, UFP Palets y Embalajes SL, for approximately $52 million USD. UFP Palets is comprised of the former pallet manufacturing operations of Palets Suller SL, Serrería y Palets Chiva SL and Drevex Castellón SL, collectively known as Palets Suller Group. The company had trailing 12-month sales of approximately $38 million USD through August 2023.

Headquartered in Castellón, Spain, Palets Suller is the market leader in machine-built wood pallets, serving the region’s ceramic tile industry as well as other industries. Spain is one of the largest ceramic tile manufacturing export markets in the world. Founder and CEO Samuel Suller Oliver will retain a 20 percent stake in the company and continue as executive director, managing the day-to-day operations. He will be joined by UFP veteran Alex Kladt, who will work with the Palets Suller leadership team to scale the business and achieve operating synergies.

"Palets Suller provides a strong foundation to expand into Spain and grow our value-added packaging business in Europe," said Dick McBride, UFP Global’s executive vice president. "Samuel and his experienced team have built an impressive and efficient business, and we look forward to learning from them and helping them expand into new markets. This is another step in our goal to be the preferred global packaging solutions provider."

"We are excited to join the UFP Industries family of companies and eager to pursue the new business opportunities this combination will bring to us," said Samuel Suller Oliver. "We’re pleased for our people, who will have new opportunities for growth and the rewards that come with being part of a large, successful multinational corporation. And we’re pleased for our customers because we will be able to offer the same quality products and level of service they’ve grown to expect from us, while adding new products and support from the capabilities of other UFP companies."

UFP Industries, Inc.

UFP Industries is a holding company whose operating segments – UFP Packaging, UFP Construction and UFP Retail Solutions – manufacture, distribute and sell a wide variety of value-added products used in residential and commercial construction, packaging and other industrial applications worldwide. Founded in 1955, the company is headquartered in Grand Rapids, Mich., with affiliates in North America, Europe, Asia and Australia. UFP Industries is ranked #403 on the Fortune 500 and #149 on Industry Week’s list of America’s Largest Manufacturers.

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UFPI - >>> DECKORATORS® VOYAGE DECKING RECOGNIZED IN GOOD HOUSEKEEPING'S 2023 HOME RENOVATION AWARDS


PR Newswire

October 9, 2023


https://finance.yahoo.com/news/deckorators-voyage-decking-recognized-good-142800731.html


GRAND RAPIDS, Mich., Oct. 9, 2023 /PRNewswire/ -- Deckorators®, a leading brand of UFP Industries, Inc. (Nasdaq: UFPI), announced today that its patented Voyage Mineral-Based Composite Decking has been recognized in the prestigious Good Housekeeping 2023 Home Renovation Awards. A full list of winners can be found at

https://www.goodhousekeeping.com/home/renovation/a44870187/home-renovation-awards-2023/.

"We are honored to have our Voyage Decking line recognized with this award," says Michelle Hendricks, Deckorators Category Marketing Manager. "Voyage was specially designed to provide a timeless, versatile look for outdoor living spaces that will stand the test of time."

Deckorators Voyage Decking features a patented mineral-based composite technology that produces a fiber-like structure like wood. It has unmatched strength yet is nearly 35% lighter than other composites. With unique textured embossing for greater surface traction, Voyage is ideal for decks as well as areas around pools, spas, and hot tubs. Voyage Varied-plank Decking is available in four widths and six hues, allowing contractors and do-it-yourselfers to create custom wood-look floors.

"Homeowners are moving away from playing it safe in their outdoor living designs," Hendricks continues. "Now more than ever, they're seeking opportunities to add personality into those spaces. Our Voyage line was developed with that in mind, offering countless combinations for customization."

Compared to other multi-width decking options composed of PVC, Voyage Varied-plank Decking is stronger, allows less thermal movement and absorbs less moisture allowing Deckorators to back Voyage with industry-leading 50-year structural and 25-year stain-and-fade limited warranties.

Deckorators' growing network of more than 800 contractors across North America brings outdoor living to life nationwide.

About Deckorators

Deckorators, the first name in decking, railing and accessories, invented the low-maintenance aluminum balusters category and has since led the industry with innovative decking and railing products. With dependably on-trend designs, Deckorators lets DIYers and builders extend their creative ideas from a home's interior to its outdoor living spaces. Deckorators is a brand of UFP Retail Solutions, LLC, a UFP Industries company.

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>>> Reliance Steel (RS) Gains on Demand Strength, Acquisitions


Zacks Equity Research

June 5, 2023


https://finance.yahoo.com/news/reliance-steel-rs-gains-demand-122700030.html


Reliance Steel & Aluminum Co. RS is gaining from strong demand across key end-use markets, a diversified product base and strategic acquisitions.

Shares of Reliance Steel have gained 23% in the past year compared with 12.8% decline of the industry.

Reliance Steel, a Zacks Rank #3 (Hold) stock, is benefiting from strong underlying demand in its major markets. It envisions healthy demand to continue in the second quarter of 2023.

Demand in non-residential construction, the company’s biggest market, improved in the first quarter. The company is optimistic that demand for non-residential construction activity in the areas in which it operates will remain at healthy levels in the second quarter.

Reliance Steel also witnessed higher year over year demand in the semiconductors market in the first quarter. RS expects the semiconductor market to remain strong and its long-term outlook for semiconductor demand remains favorable.

Demand across the broader manufacturing sectors that it serves improved modestly and the company sees stable demand in the second quarter. Demand in energy (oil and natural gas) improved year over year in the first quarter and the company is cautiously optimistic that demand will remain steady in the second quarter.

The company also witnessed higher demand for the toll processing services that it provides to the automotive market and expects demand to increase in the second quarter. Additionally, demand in commercial aerospace improved during the first quarter and the company is cautiously optimistic that demand will continue to improve in the second quarter.

Reliance Steel has also been following an aggressive acquisition strategy for a while as part of its core business policy to drive operating results. The acquisitions of Rotax Metals, Admiral Metals and Nu-Tech Precision Metals are in sync with its strategy of investing in high-quality businesses.

However, Reliance Steel faces headwinds from cost inflation. It is witnessing higher fuel, freight and labor costs. Its selling, general and administrative expenses went up around 6.4% year over year in the first quarter. The company is expected to continue to face headwinds from inflationary pressure in the second quarter.

The company also continued to face pricing pressure in the first quarter. The first-quarter average selling price per ton sold declined 6.3% from the fourth quarter of 2022, mainly due to shifts in product mix. It also fell 17.7% year over year. RS anticipates its average selling price per ton sold to be flat to up 2% sequentially in the second quarter. However, lower year-over-year selling prices are expected to affect its second-quarter performance.

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Steel sector - >>> Cleveland-Cliffs' bid to keep US blast furnaces smelting


Reuters

by Isla Binnie and Bianca Flowers

September 5, 2023


https://finance.yahoo.com/news/focus-inside-cleveland-cliffs-bid-100000026.html


High costs and environmental opposition have prevented the construction of blast furnaces at steel mills in the United States since 1980. Cleveland-Cliffs Inc CEO Lourenco Goncalves is on a mission to snap up all that are left.

Since joining the U.S. steelmaker in 2014 as part of an activist hedge fund's board takeover, Goncalves has made blast furnaces a hallmark of his strategy, positioning Cliffs as an outlier in an industry shifting towards cheaper and more environmentally friendly electric arc furnaces.

A 65-year-old Brazilian metallurgical engineer, Goncalves transformed Cliffs from an iron ore and coal miner into the largest supplier of steel to the automotive industry in North America by acquiring companies that own blast furnaces to smelt the pig iron it produces.

Now, he has his sights on acquiring U.S. Steel Corp, the other remaining U.S. blast furnace operator, which has been gradually moving into electric arc furnaces, known as mini-mills. Should his $7.3 billion cash-and-stock bid prevail, Cliffs would break into the world's top 10 steel producers, which are mostly from Asia.

Interviews with six people close to the companies and industry insiders, as well a review of regulatory filings, show Goncalves' bet on blast furnaces has yet to pay off, and its success hinges on pulling off the deal with U.S. Steel.

This is because blast furnaces operate around the clock and need more workers. They are more expensive to run when they have to be stopped and restarted to account for changes in demand, as often happens with the automotive sector.

To compensate for that cost, they need a dominant market share so they can charge more for their steel. To build a market position, Cliffs acquired AK Steel for $3 billion and ArcelorMittal's U.S. operations for $3.3 billion in 2020. Cliffs focused on dominating production of U.S.-made steel used in the external panels of cars, which require quality that electric arc furnaces currently cannot achieve.

"By increasing market share, Goncalves has a much more commanding position where he can charge more," said Josh Spoores, principal analyst at CRU Group, a business intelligence firm that provides analysis on global metals and mining.

Goncalves is also betting that producing iron ore in-house for blast furnaces, rather than sourcing scrap steel for electric arc furnaces, will give Cliffs a competitive edge. So far, the nimbler electric arc furnaces have remained cheaper to run, amid fluctuations in demand for steel.

Cliffs' gross margin was 11% last year, down from 35% in 2018, when it focused on iron ore production, according to LSEG data. This was well below Nucor Corp's and Steel Dynamics Inc's margins of 30% and 27.5%, respectively — two rivals that run exclusively on electric arc furnaces. It is also below U.S. Steel's 20.6% margin.

Goncalves has said profitability will improve as Cliffs gains scale, and projects $500 million in annual synergies from the potential U.S. Steel acquisition.

A Cliffs spokesperson said the company is innovating to meet clients' requirements and make U.S. steel competitive.

Focus on car makers

About two-thirds of U.S. steel comes from electric arc furnaces. While Nucor and Steel Dynamics also serve the car sector, they have mostly ceded the market for automotive bodies to Chinese competitors.

This has given Cliffs an opening to serve U.S. car makers that find importing overseas steel expensive, especially following tariffs that former President Donald Trump implemented in 2018. While a few carmakers use aluminum for automotive bodies, most prefer high-grade steel from blast furnaces.

"Materially switching content isn't something these automakers do lightly. I don't think they're going to move away," said KeyBanc equity analyst Phil Gibbs.

Cliffs' devotion to blast furnaces, which are unionized unlike some electric arc furnaces, won it the support of United Steelworkers. The union's international president Thomas Conway said it's backing Cliffs' bid for U.S. Steel because of Goncalves' commitment to blast furnaces. He pointed to Cliffs adding 1,700 new jobs following its last two acquisitions.

Carbon emissions

Goncalves has said in interviews and earnings calls that criticism of blast furnaces' emissions ignores that electric arc furnaces cannot make the steel many car makers want.

"Try to build a car all with steel, flat-rolled steel produced in flat-rolled mini-mills. It doesn't work," Goncalves said on Cliffs' latest quarterly earnings call.

Nucor's and Steel Dynamics' carbon footprints are more than two-thirds smaller than Cliffs' and U.S. Steel's, their sustainability disclosures show.

Cliffs points to having reduced its emissions by 32% since 2017, ahead of a target to achieve this by 2030, primarily by using hot briquetted iron (HBI) in its blast furnaces. HBI is made with natural gas rather than coke from coal, resulting in fewer emissions.

Cliffs is also testing the use of hydrogen to reduce emissions, though the technology's commercially viability remains uncertain.

Last year, President Joe Biden's administration pointed to Cliffs' direct reduction steel plant in Toledo, Ohio, which cost $1 billion and makes HBI, as an example of "clean" U.S. manufacturing.

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>>> The world is running out of helium: Nobel prize winner

Pys.org

https://phys.org/news/2010-08-world-helium-nobel-prize-winner.html#:~:text=There%20is%20no%20chemical%20way,lightest%20element%20in%20the%20Universe.

A renowned expert on helium says we are wasting our supplies of the inert gas helium and will run out within 25 to 30 years, which will have disastrous consequences for hospitals and industry.

Professor of physics, Robert Richardson from Cornell University in Ithaca, New York, won the 1996 Nobel prize for his work on superfluidity in helium, and has issued a warning the supplies of helium are being used at an unprecedented rate and could be depleted within a generation.

Liquid helium is vital for its use in cooling the superconducting magnets in magnetic resonance imaging (MRI) scanners. There is no substitute because no other substance has a lower boiling point. Helium is also vital in the manufacture of liquid crystal displays (LCDs) and fiber optics.

In MRI scanners the helium is recycled, but often the gas is wasted since it is thought of as a cheap gas, and as such is often used to fill party balloons and as a party trick distorting people's voices when it is inhaled.

Professor Richardson warned the gas is not cheap because the supply is inexhaustible, but because of the Helium Privatisation Act passed in 1996 by the US Congress. The Act required the helium stores held underground near Amarillo in Texas to be sold off at a fixed rate by 2015 regardless of the market value, to pay off the original cost of the reserve. The Amarillo storage facility holds around half the Earth's stocks of helium: around a billion cubic meters of the gas. The US currently supplies around 80 percent of the world's helium supplies.

Richardson said it has taken 4.7 billion years for the Earth to accumulate our helium reserves, which we will have exhausted within about a hundred years of the US's National Helium Reserve having been established in 1925. The reserve is a collection of disused underground mines, pipes and vats extending over 300 km from north of Amarillo into Kansas. He warned that when helium is released to the atmosphere, in helium balloons for example, it is lost forever.

There is no chemical way of manufacturing helium, and the supplies we have originated in the very slow radioactive alpha decay that occurs in rocks. It costs around 10,000 times more to extract helium from air than it does from rocks and natural gas reserves.

Helium is the second-lightest element in the Universe. Among helium's other uses include airships, air mixtures used in deep-sea diving, cooling nuclear reactors and infrared detectors, and in satellite and spacecraft equipment, and solar telescopes. NASA also uses massive amounts of helium to clean fuel from its rockets, and because the helium is so cheap, it makes no effort to recycle the gas. As the isotope helium-3, helium is also used in nuclear fusion research.

Professor Richardson was co-chair of a US National Research Council inquiry into the coming helium shortage. The report recommends the US reconsider its policy regarding selling off the helium.

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Avanti Helium Corp (ARGYF) -

re-post from - https://investorshub.advfn.com/boards/read_msg.aspx?message_id=172565598


>>> Helium Wars: Why Are Tech Giants Fighting Over This Rare Gas?


https://oilprice.com/Energy/Energy-General/Helium-Wars-Why-Are-Tech-Giants-Fighting-Over-This-Rare-Gas.html

Snippet:

A daunting list of key industries the world over is now wondering where their future supplies of helium will come from.

What battery metals are to gigafactories, helium is to everything from scientific research, medical technology and high-tech manufacturing to space exploration and national defense.

Avanti Helium Corp. (ARGYF) spec bet?

Avanti Helium Corp. acquires, explores, and develops helium projects in Canada and the United States. The company's principal project is its 100% owned Greater Knappen Project, which covers an area of approximately 70,140 acres located in the Southern Alberta and Northwestern Montana. The company was formerly known as Avanti Energy Inc. and changed its name to Avanti Helium Corp. in August 2022. Avanti Helium Corp. was incorporated in 2011 and is headquartered in Calgary, Canada.

https://finance.yahoo.com/quote/ARGYF/?p=ARGYF



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>>> UFP Industries Announces First Quarter Results


Business Wire

May 2, 2023


https://finance.yahoo.com/news/ufp-industries-announces-first-quarter-200500356.html


Net sales of $1.82 billion, diluted EPS of $1.98

GRAND RAPIDS, Mich., May 02, 2023--(BUSINESS WIRE)--UFP Industries, Inc. (Nasdaq: UFPI) today announced first quarter 2023 results including net sales of $1.82 billion, net earnings attributable to controlling interest of $126 million, and earnings per diluted share of $1.98.

"Given the softer economy and general uncertainty in the markets, these results are in line with our expectations and, in some instances, better than we anticipated, thanks to the hard work of our UFP teammates," said Chairman and CEO Matthew J. Missad. "Our experienced team continues to provide excellent value to our customers while efficiently managing the business with a determination to deliver strong results for our shareholders. Our strong cash flow, excellent balance sheet and prudent capital allocation enable us to take advantage of opportunities that may become available during this cycle. Of course, our operations will continue to make sure we are sized correctly for current demand, while still investing in product and service enhancements and innovations to create value for our customers. Our outlook remains positive, albeit at a lower level than 2021 and 2022."

First Quarter 2023 Highlights (comparisons on a year-over-year basis):

Net sales of $1.82 billion decreased 27 percent due to a 20 percent decrease in prices, an 8 percent decrease in organic unit sales, and a 1 percent increase in sales from acquisitions.

New product sales of $167 million decreased 10 percent, largely due to lower lumber prices. New product sales as a percent of total sales rose to 9.1 percent from 7.4 percent in 2022.

Adjusted EBITDA of $202 million decreased 31 percent, and adjusted EBITDA margin dropped to 11.1 percent from 11.7 percent in 2022.

Diluted EPS of $1.98 represents a 34 percent decrease from last year.

Capital Allocation

UFP Industries maintains a strong balance sheet, with $145.3 million in net surplus cash (surplus cash less interest-bearing debt and cash overdraft) on April 1, 2023, compared to $409.8 million in net debt at the end of the first quarter of 2022. The company had approximately $1.7 billion of liquidity as of April 1, 2023. The company’s return-focused approach to capital allocation includes the following:

- A target of $200 million for capital investments in 2023, including value-added growth investments and significant investments in robotics, automation and technology.

- Repurchases of approximately 451,000 shares of common stock for $35.3 million during the first quarter of 2023 (at an average price of $78.27 per share). The company is authorized to purchase an additional 1.5 million shares through February 3, 2024, and intends to continue to repurchase UFPI shares when the price is advantageous and to offset dilution resulting from long-term, share-based incentive compensation programs.

- A quarterly dividend payment of $0.25 per share, approved by the board of directors on April 26, 2023, payable on June 15, 2023, to shareholders of record on June 1, 2023.

The company continues to seek strategic acquisitions that drive long-term growth and margin improvements, enhance its capabilities, and create incremental value for its customers and shareholders.

By business segment, the company reported the following first-quarter 2023 results:

UFP Retail Solutions

$749.6 million in net sales, down 25 percent compared to the first quarter of 2022, due to a 23 percent decline in selling prices (due to the relative decrease in the lumber market) and a 2 percent decline in organic unit sales. Gross profit decreased 30 percent to $94.4 million, primarily due to the impact of products sold with a variable price. Those products benefited from a significant increase in lumber prices during the first quarter of 2022. Based on anticipated lumber prices, the company expects more favorable comparisons for the second quarter of 2023 over 2022.

UFP Packaging (formerly UFP Industrial)

$486.6 million in net sales, down 20 percent compared to the first quarter of 2022, due to an 18 percent decrease in selling prices, a 4 percent decline in organic unit sales, and a 2 percent increase in sales from acquisitions. Gross profit decreased 19 percent to $120.9 million due to normalizing market pricing and a small decline in volume.

UFP Construction

$515.6 million in net sales, down 34 percent compared to the first quarter of 2022, due to an 18 percent decrease in selling prices and a 16 percent decrease in organic unit sales. Gross profit decreased 25 percent to $121.7 million, largely due to normalizing market pricing and a decline in volume among residential and manufactured housing customers in line with market conditions.

CONFERENCE CALL

UFP Industries will conduct a conference call to discuss its outlook and information included in this news release at 4:30 p.m. ET on Tuesday, May 2, 2023. The call will be hosted by Chairman and CEO Matthew J. Missad and CFO Michael Cole and will be available simultaneously and in its entirety to all interested investors and news media through a webcast at http://www.ufpi.com. A replay of the call will be available through the website.

UFP Industries, Inc.

UFP Industries is a holding company whose operating subsidiaries – UFP Packaging, UFP Construction and UFP Retail Solutions – manufacture, distribute and sell a wide variety of value-added products used in residential and commercial construction, packaging and other industrial applications worldwide. Founded in 1955, the company is headquartered in Grand Rapids, Mich., with affiliates in North America, Europe, Asia and Australia. UFP Industries is ranked #401 on the Fortune 500 and #149 on Industry Week’s list of America’s Largest Manufacturers. For more about UFP Industries, go to www.ufpi.com.

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>>> Playing Copper’s ‘Generational Shift’


ETF.com

Heather Bell

February 14, 2023·


https://finance.yahoo.com/news/playing-copper-generational-shift-213000235.html


A “generational shift” may be coming to copper markets thanks to the net-zero energy trend, BNY Mellon’s Al Chua recently told CNBC. Investors may be curious to know how to participate as this unfolds.

Copper is a crucial metal for green technologies. Goldman Sachs analysts have gone as far as labeling it “the new oil” and “the most cost-effective conductive material” in a research piece published in May. S&P Global last year projected that copper demand may double by 2035.

While short-term demand is expected to strengthen as China’s economy reopens, global climate goals are likely to keep that demand high.

“Every renewable energy pretty much needs copper, because if you’re talking about electrifying something and transmitting electricity, you need copper,” Chu said in the CNBC article.

Playing Copper

Four exchange-traded products—including two equity funds and two futures-based products—provide exposure to copper, and significant differences separate all of them. Since that Goldman research was published in May, the $1.9 billion Global X Copper Miners ETF (COPX) has pulled in more than $97 million, while both the futures-based products have seen outflows.

That’s not shocking —investors can be fickle about futures-based products largely due to their complexity and inherent risks.

The United States Copper Index Fund (CPER) has $154.6 million in assets under management and tracks an index that relies on an optimization process to select the futures contracts it rolls into in an effort to avoid the effects of contango. It comes with an expense ratio of 0.85% and is structured as a commodities pool.

The $67.8 million iPath Series B Bloomberg Copper Subindex Total Return ETN (JJC) is structured as an exchange-traded note, tracking an index that weights contracts by liquidity and production. It has an expense ratio of 0.45%.

Despite this, the two futures-based products exhibit fairly similar performance. Both are up about 7% year to date.

New Addition

Most recently, Sprott rolled out the Sprott Junior Copper Miners IETF (COPJ) at the start of February. That fund has very little in assets, but by targeting smaller-sized copper miners, it offers a slightly different perspective than COPX. These tend to be companies with a lot of growth potential because of their small size but also more risk because they are often not yet at the producing stage. As a result, they often fail.

If you’re looking for relatively hassle-free exposure to the performance of copper, COPX is probably the best choice. It’s also the least risky of the four products. Unlike with COPJ, its holdings are all established producers. In fact, there is no holdings overlap between the top 10 holdings of the two funds.

The two futures-based products, although they offer more direct exposure to the price of copper, carry the potential for the volatility that accompanies the performance of many commodities as well as the risk of contango and roll costs. And while CPER comes with the burden of a K-1 form at tax time, JJC, as an ETN, has counterparty risk attached to it.

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>>> Balchem Corporation Reports Record First Quarter Sales of $232.5 Million, with Net Earnings of $22.7 Million, GAAP EPS of $0.70, and Adjusted EPS of $0.94


GlobeNewswire

Balchem Corp

April 28, 2023


https://finance.yahoo.com/news/balchem-corporation-reports-record-first-110000333.html


MONTVALE, N.J., April 28, 2023 (GLOBE NEWSWIRE) -- Balchem Corporation (NASDAQ: BCPC) reported today first quarter net sales of $232.5 million for 2023, compared to net sales of $228.9 million in the prior year quarter. First quarter net earnings were $22.7 million for 2023, compared to net earnings of $28.9 million for the first quarter 2022, with adjusted net earnings(a) of $30.6 million, compared to $33.4 million in the prior year quarter. First quarter adjusted EBITDA(a) was $56.1 million, compared to $53.6 million in the prior year quarter.

First Quarter 2023 Financial Highlights:

Record first quarter net sales were $232.5 million, an increase of $3.7 million, or 1.6%, compared to the prior year.

Record first quarter adjusted EBITDA was $56.1 million, an increase of $2.5 million, or 4.8%, from the prior year.

GAAP net earnings were $22.7 million, a decrease of $6.2 million, or 21.5% from the prior year. These net earnings resulted in GAAP earnings per share of $0.70.

Adjusted net earnings were $30.6 million, a decrease of $2.8 million or 8.3% from the prior year. These adjusted net earnings resulted in adjusted earnings per share(a) of $0.94.

The effective tax rate of 22.0% was 111 basis points lower than the prior year tax rate of 23.1%.

Cash flows from operations were $34.8 million for the first quarter 2023, an increase of 396.2% from the prior year, with quarterly free cash flow(a) of $25.2 million.

Recent Highlights:

On April 26, we released our 2022 Sustainability Report, which captures the Company’s continued commitment to managing our Environmental, Social and Governance (ESG) performance. Our sustainability initiatives are embedded in our business strategies and our Sustainability Report captures the progress made towards not only our 2030 goals around greenhouse gas emissions and water usage reduction by 25%, but also our continued commitment toward advancing diversity, inclusion, and belonging at Balchem.

Ted Harris, Chairman, President, and CEO of Balchem said, “We delivered solid first quarter financial performance with sales and adjusted EBITDA growth both compared to prior year’s very strong results, and sequentially compared to the fourth quarter of 2022. The markets continue to be challenging with a high degree of uncertainty around the broader economic outlook, but Balchem’s resilience and strong market positions enabled us to continue to deliver solid financial results within this difficult economic backdrop.”

Mr. Harris added, “I am also very pleased with our progress around our environmental, social, and governance efforts as detailed in our Sustainability Report. Sustainability is at the heart of our company’s higher purpose of making the world a healthier place and we continue to make good progress towards our goals, while acting as strong stewards of all of our stakeholders.”

The Human Nutrition & Health segment generated quarterly sales of $132.7 million, an increase of $10.2 million, or 8.3%, compared to the prior year quarter. The increase was primarily driven by the contribution from recent acquisitions, partially offset by lower sales within the minerals and nutrients business and food and beverage markets. First quarter earnings from operations for this segment of $18.4 million decreased $1.9 million, or 9.2%, compared to $20.3 million in the prior year quarter, primarily due to increases in manufacturing input costs and increased operating expenses and amortization related to recent acquisitions, partially offset by higher average selling prices. Excluding the effect of non-cash expense associated with amortization of acquired intangible assets and other adjustments, adjusted earnings from operations(a) for this segment were $26.8 million, compared to $24.3 million in the prior year quarter, an increase of 10.5%. Sequentially, compared with the fourth quarter of 2022, sales increased 1.7% in the first quarter of 2023 and adjusted earnings from operations increased 14.1%.

The Animal Nutrition & Health segment generated quarterly sales of $64.9 million, a decrease of $4.5 million, or 6.4%, compared to the prior year quarter. The decrease was driven by lower sales in both monogastric and ruminant species markets in Europe and an unfavorable impact related to changes in foreign currency exchange rates, partially offset by higher sales in both monogastric and ruminant species markets in North America. First quarter earnings from operations for this segment of $9.5 million decreased $1.8 million, or 16.1%, compared to $11.3 million in the prior year quarter, primarily due to the aforementioned lower sales, increases in manufacturing input costs and higher operating costs, partially offset by pricing actions. Excluding the effect of non-cash expense associated with amortization of acquired intangible assets and other adjustments, adjusted earnings from operations for this segment were $9.9 million compared to $11.5 million in the prior year quarter, a decrease of 13.4%. Sequentially, compared with the fourth quarter of 2022, sales and adjusted earnings were essentially flat in the first quarter of 2023.

The Specialty Products segment generated quarterly sales of $32.2 million, a decrease of $1.1 million, or 3.3%, compared to the prior year quarter, primarily due to lower plant nutrition sales and an unfavorable impact related to changes in foreign currency exchange rates, partially offset by higher sales of products in the performance gases business. Earnings from operations for this segment were $7.9 million, compared to $7.8 million in the prior year comparable quarter, an increase of $0.2 million, or 2.4%, primarily driven by higher average selling prices, partially offset by lower sales volumes, higher manufacturing input costs, and higher operating expenses. Excluding the effect of non-cash expense associated with amortization of acquired intangible assets and other adjustments, adjusted earnings from operations for this segment were $9.0 million, compared to $8.9 million in the prior year quarter, an increase of 1.1%. Sequentially, compared with the fourth quarter of 2022, sales increased 1.3% in the first quarter of 2023 and adjusted earnings from operations were essentially flat.

Consolidated gross margin for the quarter ended March 31, 2023 of $73.2 million increased by $1.7 million or 2.3%, compared to $71.5 million for the prior year comparable period. Gross margin as a percentage of sales was 31.5% as compared to 31.2% in the prior year period, an increase of 30 basis points, primarily due to higher average selling prices partially offset by increases in certain manufacturing input costs. Operating expenses of $38.8 million for the quarter increased $5.6 million from the prior year comparable quarter, primarily due to incremental expenses and amortization from the Kappa and Bergstrom acquisitions. Excluding non-cash operating expenses associated with amortization of intangible assets of $6.7 million, operating expenses were $32.1 million, or 13.8% of sales.

Interest expense was $5.6 million and $0.5 million in the first quarter of 2023 and 2022, respectively. Our effective tax rates for the three months ended March 31, 2023 and 2022 were 22.0% and 23.1%, respectively. The decrease in the effective tax rate from the prior year was primarily due to higher tax benefits from stock based compensation, an increase in certain tax credits and certain lower state taxes.

For the quarter ended March 31, 2023, cash flows provided by operating activities were $34.8 million, and free cash flow was $25.2 million. The $219.1 million of net working capital on March 31, 2023 included a cash balance of $60.2 million, dividend payments of $22.9 million, and capital expenditures and intangible assets acquired of $9.7 million. The cash balance also reflects the net repayments of the revolving loan of $9.0 million.

Ted Harris said, “The Balchem team delivered record first quarter sales and adjusted EBITDA results, once again highlighting the resilience of our business model, particularly in light of the persistent market volatility and economic uncertainty we are experiencing. We are well positioned in the markets we serve and remain confident in the long-term growth outlook for our markets as we continue to focus on progressing our strategic growth initiatives in 2023 and beyond.”

Quarterly Conference Call

A quarterly conference call will be held on Friday, April 28, 2023, at 11:00 AM Eastern Time (ET) to review first quarter 2023 results. Ted Harris, Chairman, President and CEO and Martin Bengtsson, CFO will host the call. We invite you to listen to the conference by calling toll-free 1-877-407-8289 (local dial-in 1-201-689-8341), five minutes prior to the scheduled start time of the conference call. The conference call will be available for replay two hours after the conclusion of the call through end of day Friday, May 12, 2023. To access the replay of the conference call, dial 1-877-660-6853 (local dial-in 1-201-612-7415), and use conference ID #13737969.

Segment Information

Balchem Corporation reports three business segments: Human Nutrition & Health, Animal Nutrition & Health, and Specialty Products. The Human Nutrition & Health segment delivers customized food and beverage ingredient systems, as well as key nutrients into a variety of applications across the food, supplement and pharmaceutical industries. The Animal Nutrition & Health segment manufactures and supplies products to numerous animal health markets. Through Specialty Products, Balchem provides specialty-packaged chemicals for use in healthcare and other industries, and also provides chelated minerals to the micronutrient agricultural market. Sales and production of products outside of our reportable segments and other minor business activities are included in "Other and Unallocated".

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>>> ‘Load Up,’ Says Goldman Sachs About These 3 Metal Stocks


TipRanks

April 27, 2023


https://finance.yahoo.com/news/load-says-goldman-sachs-3-135539451.html


There’s been a lot of buzz lately about the US potentially heading towards a recession this year. That’s a serious issue, and it should prompt investors to start getting creative in portfolio allocation. One idea is to take advantage of growth-oriented sectors – and to start thinking globally for where to find them.

Banking giant Goldman Sachs has done much of the footwork, and the firm’s chief US equity strategist David Kostin has pointed out that China’s pullback from the zero-COVID lockdown policies is likely to ignite a commodities boom. With pundits from the International Monetary Fund and Bloomberg adding their voices – estimating that China will contribute more than 22% of total global economic growth this year – Kostin notes that the metal and mining sectors are best positioned to gain heavily from Chinese demand.

“Metals & Mining stocks stand to benefit from continued China economic growth. China accounts for about half of global demand for industrial metals such as aluminum and copper… US mining companies are not heavily reliant on China as an export market but stand to benefit indirectly from China demand through higher global metals prices,” Kostin explained.

Stock analyst Emily Chieng, one of Goldman’s mining industry experts, is running with Kostin’s lead, and picking out metal stocks that stand to gain in a commodities boom. Using TipRanks, the world’s biggest database of analysts and research, we’ve pulled up the details on three of these stock picks, which are offering up to 60% upside potential.


Cleveland-Cliffs (CLF)

We’ll start with Cleveland-Cliffs, a major producer of flat-rolled steel in the US market, with a diversified portfolio of finished steel products. This company got its start in the mining business, and still operates iron mines in upper Michigan and northern Minnesota, that feed the firm’s steelmaking, metal stamping, tooling production, and tubular component production. In addition to its leading position in the flat-rolled steel segment, Cleveland-Cliffs is also a leader in the production of automotive-grade steel products.

Cleveland-Cliffs benefits greatly from its position as a producer of iron ore, and in addition, the company also mines coking coal, with a mining facility in West Virginia and coking facilities, which turn the raw coal into a vital ingredient for steel-making, in West Virginia, Ohio, and Pennsylvania. The company’s steel and steel products have applications in manufacturing and packaging, as well as the appliance, auto, equipment, construction, and energy industries.

While revenues and earnings have decreased in recent quarters, they have still managed to exceed expectations. In the most recent release, for 1Q23, the company had a top line of $5.3 billion, down 11% from the year-ago period – but the Q1 result beat analyst expectations by $90 million. The bottom line non-GAAP EPS of 11 cents was a far cry from the $1.50 reported in 1Q22, but was a penny better than the forecast.

The company reported total steel sales of 4.1 million tons in Q1, for a year-over-year increase of 14%. The increase in volume sold partially offset a reduction in average net selling price.

In a development that bodes well for the company’s balance sheet, the firm reported $1.65 billion in borrowings under its credit facilities during Q1, and made $1.34 billion in payments against that debt. Cleveland-Cliffs has stated a commitment to paying down short-term revolver debt, and to that end, on April 14, the company announced closure on an offering of unsecured guaranteed notes, to the total of $750 million and due in 2030, at 6.75% annually. Net proceeds from this offering will be used to repay revolver credit borrowings.

That forms the background for the comments by Goldman Sachs’ Emily Chieng, who says of this company: “We believe fixed-price contract renegotiation at higher levels and line of sight on sequential cost reduction will drive margin improvement for CLF this year versus second half of last year, particularly as natural gas prices sit below our forecasts. Further, we expect volume growth of ~8% versus prior year to be driven by automotive end markets on improving supply chain efficiencies, low dealer inventories, and healthy consumer backlogs. While CLF has made progress on improving its balance sheet last year, we continue to expect a focus on deleveraging and remain focused on share buybacks.”

Chieng complements her comments with a Buy rating on CLF shares, and a $24 price target that implies a one-year gain of ~60%. (To watch Chieng’s track record, click here)

Overall, there are 5 recent analyst reviews on record for this stock, and they include 2 Buys and 3 Holds – for a Moderate Buy consensus rating. The stock is priced at $15 and its $22 average price target implies ~47% upside on the one-year horizon. (See CLF stock forecast)


Freeport-McMoRan (FCX)

Now we’ll take a look at Freeport-McMoRan, a straight-out mining firm with a major position in the production of molybdenum, copper, and gold. The company, from its base in Phoenix, Arizona, has extensive mining operations in both North and South America, and operates one of the world’s largest copper and gold mines, the Grasberg mine in Indonesia’s Papua region. Freeport-McMoRan is the world’s largest producer of molybdenum.

Metals prices have been experiencing a surge due to high demand, with copper showing a particularly notable upward trend in recent years. The metal is up 19.5% from a trough last June, and has gained more than 25% in the last 5 years. Freeport-McMoRan produced 832 million pounds of copper in 1Q23, along with 19 million pounds of molybdenum and 270,000 ounces of gold. The company foresees total consolidated sales this year of 4.1 billion pounds of copper, 79 million pounds of molybdenum, and 1.8 million ounces of gold. In the first quarter of this year, the company realized an average price of $4.11 per pound of copper, $30.32 per pound of molybdenum, and $1,949 per ounce for gold.

Those production and price numbers generated the firm’s total Q1 revenue of $5.39 billion, which was down 18% y/y but came in $140 million better than expected. The non-GAAP EPS of 52 cents was less than half the $1.07 reported in 1Q22, but beat the forecast by 6 cents, or 13%. Freeport-McMoRan is supporting its mining ops with extensive exploration activities; the company’s exploration expense in Q1 was up 29% y/y, to $31 million.

All of this adds up to a clear buying opportunity, in the eyes of Goldman’s Chieng, who writes: “We continue to view FCX favorably on consistent operational execution, leverage to copper price upside, and medium-to-long term brownfield growth optionality, and maintain our 12-month price target at $47.”

Chieng’s Buy rating on the stock, and her $47 price target, suggest a 27% upside potential for the year ahead.

Overall, FCX gets a Moderate Buy rating from the analyst consensus, based on 12 recent reviews that include 6 Buys, 5 Holds, and 1 Sell. The shares are priced at $36.87, and their one-year average price target of $46.67 implies a potential gain of ~27%. (See FCX stock forecast)


Alcoa (AA)

Last on our list of Goldman metal/mining picks is a name that may be familiar: Alcoa. Based in Pittsburgh, Pennsylvania, Alcoa is a perennial member of the global ‘top 10’ in aluminum producers, and is known for its production of high-end primary aluminum, fabricated aluminum, and alumina products. Alcoa’s aluminum end products are found in a wide range of products and industries, from automobiles and bicycles to airplanes and spacecraft, and even to such everyday items as home appliances and cookware.

The company has felt pressure from the usual macroeconomic headwinds, in the form of high inflation and interest rates, along with supply chain disruptions, combining to increase the cost of production. At the same time, Alcoa has remained profitable – and has even achieved its industry’s lowest carbon footprint.

The effects of this can be seen in Alcoa’s recent 1Q23 earnings release, and in its outlook for Q2. The company had a Q1 top line of $2.67 billion, down almost 19% year-over-year and missing the forecast by $90 million. The bottom line EPS, in non-GAAP terms, came to a net loss of 23 cents per share – where the Street had expected a break-even. Looking ahead, Alcoa is expecting a $115 million increase in the cost of energy and raw materials to offset a predicted increase in the realized third-party prices of both alumina and aluminum.

In some positive notes, the company’s EBITDA passed $1 billion in 1Q23, setting a company record, and Alcoa finished the quarter with a solid cash balance of $1.1 billion, giving the company deep pockets to withstand a difficult economic situation.

Goldman’s Chieng is bullish on Alcoa, seeing the company as more than capable of expanding its business despite the headwinds. Putting her thoughts in a recent note, she writes: “We continue to view AA positively, driven by (1) ~9% aluminum volume growth in the next two years (driven by production restarts) and (2) the company’s leverage to aluminum price upside which remains the more important driver of the company’s earnings profile; specifically, on our ~$2,700/t assumption for 2023, we estimate that the aluminum segment comprises ~75% of attributable EBITDA.”

Quantifying her stance, Chieng gives Alcoa stock a price target of $54 alongside a Buy rating; this implies an upside of 51% on the one-year time frame.

Even though the Goldman view is bullish here, Wall Street is taking a more cautious approach. Alcoa shares have a Hold rating from the analyst consensus, based on 8 reviews that include 3 Buys, 4 Holds, and 1 Sell. However, the stock’s $35.83 trading price and $47.75 average price target suggest a one-year upside potential of 34%. (See AA stock forecast)

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Linde - >>> Is This Top Dividend Growth Stock a Buy for 2023?


Motley Fool

By Nicholas Rossolillo

Mar 1, 2023


https://www.fool.com/investing/2023/03/01/is-this-top-dividend-growth-stock-a-buy-for-2023/?source=eptyholnk0000202&utm_source=yahoo-host&utm_medium=feed&utm_campaign=article


KEY POINTS

Despite a nasty 2022, Linde still put up double-digit percentage earnings growth.

This company is enjoying a renewed interest in hard-asset investments into infrastructure that could keep its spate of growth going for the foreseeable future.

Linde also has an exceptional track record of doling out dividend raises to its shareholders.

Linde is a premium-priced stock, but for very good reason.


Despite a year of extreme disruption from war in Europe and hot inflation, shares of leading industrial gases company Linde (LIN) are back at record highs. A recent jump in stock price was driven by exceptional quarterly earnings to close out 2022.

At this juncture, Linde carries a premium stock price -- and for good reason. It's benefiting from a renewed global focus on infrastructure investment, like electronics manufacturing and renewable energy production. The company is growing its earnings, and has a long track record of raising its dividend payout for shareholders. Is Linde stock a buy for 2023?

A new project highlights long-term secular growth trends

The world under-invested in hard assets and infrastructure over the last decade. It took a global pandemic and Russia's invasion of Ukraine to expose these fragile supply chains. Suddenly, there's a renewed interest in investing in energy and manufacturing, which plays into Linde's hand.

Early in February 2023, Linde announced a big new project on the U.S. Gulf Coast with nitrogen fertilizer supplier OCI. Linde will invest $1.8 billion in an on-site facility that will supply "clean hydrogen" and other gases to OCI, and extend its industrial gases supply to other companies in the Southeast U.S. This large commitment increased Linde's backlog of work by $2.4 billion, to a total of $9.2 billion, during the final three months of 2022.

Linde is getting boosts from other areas of the global economy too. The U.S. CHIPS Act passed over the summer of 2022 is aimed at increasing semiconductor manufacturing in the country. Similar legislation is being worked on elsewhere -- like in Europe, which wants to grow from just a single-digit-percentage share of global chip production to a 20% share this decade. Linde reported that electronics manufacturers were its fastest-growing segment last year, increasing 21% year over year in the fourth quarter.

Big boosts to profitability

Linde's Q4 2022 revenue was down 5% year over year to $7.9 billion, hurt as it was most of the year from the closure of its Russia business and from a record run-up in the U.S. dollar (a side effect from the U.S. Federal Reserve's interest rate hikes).

In spite of the headwinds, though, earnings per share (EPS) jumped 35% in Q4 (or up 14% on an adjusted basis). On the earnings call, CEO Sanjiv Lamba said:

Overall, 2022 was another stellar year despite the many headwinds. We achieved new highs across several key financial metrics while relentlessly focusing on our core values. This is the fourth year in a row of double-digit EPS growth, and I see no reason why this won't continue. Stated simply, I have confidence that we will deliver strong results irrespective of economic and geopolitical climate. From my vantage point, I've never been more confident about Linde's future.

Encouraging words indeed. To reinforce the growing importance of Linde's operations in the global industrial space, management forecasted adjusted EPS growth of 9% to 12% when excluding currency exchange headwinds for 2023.

Is this dividend stock a buy?

After its final financial update for 2022, Linde stock currently trades for 42 times trailing 12-month EPS (or 30 times trailing 12-month free cash flow), 12-month EPS (or 30 times trailing 12-month free cash flow), but just 24 times EPS on a one-year-forward expected basis. In other words, Linde trades for a premium.

However, the premium could be well-deserved, especially given the secular growth trends working in Linde's favor. There's also that long dividend-increase history that makes this stock a great long-term investment.

Personally, I'm not interested in chasing this stock just yet. I see better deals out there if you believe manufacturing and renewable energy will be a high-growth space for the next five to 10 years. But definitely give Linde a look. This top industrial gases business is worth putting on a dollar-cost average plan for investors looking for growth and income for the long term.

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Air Products & Chemicals - >>> One of the world’s leading industrial gas companies. It supplies essential industrial gasses to the refining, chemical, metals, electronics, manufacturing, and food and beverage industries. It’s also a leading global supplier of liquefied natural gas (LNG) process technology and equipment.


https://www.fool.com/investing/stock-market/market-sectors/materials/


The company is a major supplier of hydrogen, which could play an important role in fueling the economy in the future. In addition, its expertise in carbon capture and storage could help reduce greenhouse gas emissions. Add that to its importance to the growth of LNG, a widely used fuel, and Air Products is playing a vital role in helping the global economy transition to cleaner energy sources.

Air Products also boasts a strong financial profile, including an excellent balance sheet and healthy cash flow. That gives it the financial flexibility to expand its operations and pay a growing dividend. The company is a Dividend Aristocrat and delivered its 40th consecutive annual dividend increase in early 2022.

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>>> Linde (LIN) to Supply Clean Hydrogen to OCI's Texas Plant


Zacks Equity Research

February 8, 2023


https://finance.yahoo.com/news/linde-lin-supply-clean-hydrogen-160704607.html


Linde plc LIN entered an agreement to invest $1.8 billion to supply clean hydrogen to OCI’s blue ammonia facility in Texas.

Linde will supply OCI with clean hydrogen by capturing more than 1.7 million metric tons of carbon dioxide emissions per year once the facility goes online in 2025. The complex will be integrated into Linde’s existing gas infrastructure on the U.S. Gulf Coast.

Linde will develop, own and operate an on-site complex at the OCI facility, which will include auto thermal reforming, a process to produce low-carbon hydrogen with carbon capture. The facility will also include a massive air separation plant.

The agreement has been signed as the world seeks low-carbon sources to meet energy requirements and reduce emissions. Per the International Renewable Energy Agency, ammonia production makes up about 15-20% of carbon dioxide emissions from the chemical sector. However, low-carbon ammonia production methods, such as using blue hydrogen, can reduce emissions.

Linde will also utilize its pipeline network to provide clean hydrogen to its customers in the Gulf Coast area looking to decarbonize their operations while also supplying atmospheric and rare gases.

Linde’s capabilities are enabling the transition to a low-carbon-intensity economy. In 2022, Linde signed multiple deals to develop clean hydrogen projects amid pressure to reduce emissions and scale up renewables to meet the EU’s net-zero emission goal by 2050.

Price Performance

Shares of Linde have outperformed the industry in the past three months. The stock has gained 7.6% compared with the industry’s 6.8% growth.

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Sherwin-Williams - >>> Sherwin-Williams is the world's largest paint and coating manufacturer, recording an all-time-high $22 billion in sales in the last year. However, facing pandemic-aided figures from late 2020 and early 2021, Sherwin Williams saw its stock price drop 15% over the last year.

It was further plagued by higher raw material prices from an inflationary environment, causing its cost of goods sold to balloon.

Ultimately, Sherwin-Williams sees incredible efficiencies during boom cycles when all is well through its global, end-to-end supply chain. However, it also has to put out a lot of fires in more difficult times, making it somewhat cyclical.

So facing these temporary issues -- what makes Sherwin-Williams an all-weather stock to add $1,000 to today?

First, it has a wide moat thanks to cost advantages from its supply chain, its efficient scale in the paint industry, and its vast network of almost 5,000 stores worldwide. Proving the power of this moat, the company has averaged a return on invested capital (ROIC) of 19% over the last two decades.

A stock's ROIC shows its profitability compared to its overall debt and equity. For example, Sherwin-Williams' average of 19% since 2002 would place it in the top quartile of ROICs among the current stocks in the S&P 500 index. These top-tier ROIC generators are proven to outperform their peers over time, highlighting the value wide moats generate.

Furthermore, Sherwin-Williams has become a shareholder returns wizard thanks to this strong profitability. While the company only raised its 1% dividend by $0.02 in 2023 as a precaution with today's environment, it managed to increase its dividends by 331% in the last decade. This dividend only amounts to 27% of its net income, leaving room for future raises -- adding to its 44 years of consecutive dividend increases.

On top of this, the company also continues to reward investors with steady stock buybacks, lowering its outstanding shares by 16% over the last 10 years.

With a price-to-earnings ratio of 31, Sherwin-Williams's steady business commands a premium. However, its wide moat, strong shareholder returns, and stable profitability in trying times make Sherwin-Williams an outstanding all-weather dividend stock to buy after its recent drop.

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>>> Linde plc (LIN) operates as an industrial gas and engineering company in North and South America, Europe, the Middle East, Africa, and the Asia Pacific. It offers atmospheric gases, including oxygen, nitrogen, argon, and rare gases; and process gases, such as carbon dioxide, helium, hydrogen, electronic gases, specialty gases, and acetylene. The company also designs and constructs turnkey process plants for third-party customers, as well as for the gas businesses in various locations, such as olefin, natural gas, air separation, hydrogen, and synthesis gas plants. It serves a range of industries, including healthcare, energy, manufacturing, food, beverage carbonation, fiber-optics, steel making, aerospace, chemicals, and water treatment. The company was founded in 1879 and is based in Woking, the United Kingdom.

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>>> Albemarle Corporation (ALB) develops, manufactures, and markets engineered specialty chemicals worldwide. It operates through three segments: Lithium, Bromine, and Catalysts. The Lithium segment offers lithium compounds, including lithium carbonate, lithium hydroxide, lithium chloride, and lithium specialties; and reagents, such as butyllithium and lithium aluminum hydride for use in lithium batteries for consumer electronics and electric vehicles, high performance greases, thermoplastic elastomers for car tires, rubber soles, plastic bottles, catalysts for chemical reactions, organic synthesis processes in the areas of steroid chemistry and vitamins, life sciences, pharmaceutical industry, and other markets. It also provides cesium products for the chemical and pharmaceutical industries; zirconium, barium, and titanium products for pyrotechnical applications that include airbag initiators; technical services for the handling and use of reactive lithium products; and lithium-containing by-products recycling services. The Bromine segment offers bromine and bromine-based fire safety solutions; specialty chemicals, including elemental bromine, alkyl and inorganic bromides, brominated powdered activated carbon, and other bromine fine chemicals for use in chemical synthesis, oil and gas well drilling and completion fluids, mercury control, water purification, beef and poultry processing, and other industrial applications; and other specialty chemicals, such as tertiary amines for surfactants, biocides, and disinfectants and sanitizers. The Catalysts segment provides hydroprocessing, isomerization, and akylation catalysts; fluidized catalytic cracking catalysts and additives; and organometallics and curatives. The company serves the energy storage, petroleum refining, consumer electronics, construction, automotive, lubricants, pharmaceuticals, and crop protection markets. Albemarle Corporation was founded in 1887 and is headquartered in Charlotte, North Carolina. <<<




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Sherwin-Williams - >>> 3 Unstoppable Investments Everyone Needs in Their Portfolio


Motley Fool

By James Brumley

Nov 3, 2022


https://www.fool.com/investing/2022/11/03/3-unstoppable-investments-everyone-needs/?source=eptyholnk0000202&utm_source=yahoo-host&utm_medium=feed&utm_campaign=article


KEY POINTS

Sherwin-Williams isn't just a house paint company. Even if it was, though, it would be more resilient than you might imagine.

Not every company can thrive in -- or even survive -- a wobbly economy.

There are plenty of stocks worthy of consideration right now, particularly in light of this year's sizable sell-off. In some ways, though, the weakness has distinguished the resilient winners from the marginal, vulnerable players -- not every name out there can truly be considered "unstoppable."

With this market backdrop, here's a closer look at three investments that would be at home in almost anyone's portfolio. Not all of them are high-growth companies, but all three of them are built to thrive in any environment.

Sherwin-Williams

You likely know it as a brand of paint and a chain of paint stores, but that's not all The Sherwin-Williams Company (SHW 0.68%) is. The company also manages an industrial coatings business serving industries ranging from automotive to energy to aerospace to packaging and more. Many of its customers need these goods regardless of the economy's condition, and regardless of these goods' cost.

In the meantime, there's always a respectable market for architectural (home and building) paint.

The homebuilding boom between 2011 and early this year coincides with comparably paced revenue growth for this popular paint brand. Indeed, the only quarter in which sales fell year-over-year within the past decade was the second quarter of 2020, when the COVID-19 pandemic shut down all non-essential consumption. Once that dust settled and stores could reopen, people began improving the homes they were suddenly spending so much time in.

It's a testament to just how marketable architectural paint is. Not only is painting one of the most cost-effective ways of making worn-out walls look new again, it's also one of only a handful of DIY projects most homeowners feel confident enough to take on themselves. Underscoring this idea is how well the company held up even in the wake of 2007's subprime mortgage meltdown, which pushed the U.S. economy into a full-blow recession by 2008. Its 2009 revenue slumped 11% from 2008's stagnant top line, but by 2010, the company was on the mend. By 2011, Sherwin-Williams' sales were back into record-breaking territory, up nearly 10% from 2007's peak.

It remains to be seen just how much the current housing headwind might crimp demand for paint. If the company can recover so well from 2008's devastation, though, it should be able to push through whatever's coming this time around. To this end, the analyst community is calling for sales growth next year despite expectations for economic weakness (if not a full-blown recession) with per-share profits projected to soar to the tune of 18%.

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>>> Balchem Releases 2021 Sustainability Report


Balchem Corporation

April 22, 2022


https://finance.yahoo.com/news/balchem-releases-2021-sustainability-report-110000439.html


NEW HAMPTON, N.Y., April 22, 2022 (GLOBE NEWSWIRE) -- Balchem Corporation (NASDAQ: BCPC) today released its 2021 Sustainability Report, which captures the Company's commitment to managing our Environmental, Social and Governance (ESG) performance. Balchem’s sustainability initiatives are fully integrated into our business strategy and are critical to our vision of making the world a healthier place. Our Sustainability Report demonstrates the Company's continuing promise to provide our employees, customers, shareholders and the communities within which we operate with information on Balchem’s sustainability initiatives.

“I am pleased with the progress Balchem has made over the last year to advance our sustainability efforts,” said Ted Harris, Chairman, Chief Executive Officer, and President. “We are excited about our future and our ability to provide solutions for the health and nutritional needs of the world while acting as strong stewards of all of our stakeholders.”

Highlights of the report include:

We celebrated the one-year anniversary of our commitment to the UN Global Compact, confirming our alignment with the Ten Principles on human rights, labor, the environment, and anti-corruption.

Progress on our 2030 goals and strategies for both emissions and water usage reduction by 25%.

The number of people and animals reached around the world by our health and nutrition products.

Our continuous focus on employee safety and product quality.

We took meaningful steps toward advancing diversity, inclusion, and belonging at Balchem, and remain committed to fostering a diverse and inclusive culture in which everyone feels welcomed, valued, and appreciated, while inspiring our external stakeholders to share our vision.

Expanded our Balchem Helping Hands initiative which includes Balchem’s philanthropic partnerships, a matching donation program, and an employee volunteering program.

Additional transparency surrounding our initiatives in Governance, including Board Diversity and Risk Management.

Newsweek magazine named Balchem one of America’s Most Responsible Companies for the second consecutive year.

For more information visit balchem.com/sustainability

About Balchem Corporation

Balchem Corporation develops, manufactures and markets specialty ingredients that improve and enhance the health and well-being of life on the planet, providing state-of-the-art solutions and the finest quality products for a range of industries worldwide. The company reports three business segments: Human Nutrition & Health; Animal Nutrition & Health; and Specialty Products. The Human Nutrition & Health segment delivers customized food and beverage ingredient systems, as well as key nutrients into a variety of applications across the food, supplement and pharmaceutical industries. The Animal Nutrition & Health segment manufactures and supplies products to numerous animal health markets. Through Specialty Products, Balchem provides specialty-packaged chemicals for use in healthcare and other industries, and also provides chelated minerals to the micronutrient agricultural market.

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Ecolab - >>> This Company's Vision for the Future Could Help You Beat the Market

Ecolab is poised to restart revenue growth and expand its market share in a post-pandemic world.


Motley Fool

by Josh Kohn-Lindquist

Aug 14, 2021


https://www.fool.com/investing/2021/08/14/this-companys-vision-for-the-future-could-help-you/?source=eptyholnk0000202&utm_source=yahoo-host&utm_medium=feed&utm_campaign=article


It is a beautiful thing when a CEO's vision for their company's future lines up with my investment thesis for its stock. This alignment of values seems to be the case for Ecolab (NYSE:ECL), the water, hygiene, and infection prevention services company.

President and CEO Christophe Beck summarized its aims during the Q2 earnings call: "Global trends in people health, like infection prevention and food safety; as well as planet health, like water and carbon emissions, are becoming front and center for every business leader -- and there's no one positioned to help customers on both fronts better than Ecolab."

Sourcing clean water, healthy food, and reliable energy safely will be significant hurdles facing the world as its population grows. Ecolab is off to a great start to meet these challenges. In 2020, it conserved over 200 billion gallons of water, prevented the creation of 3.5 metrics tonnes of CO2, provided 1.3 billion people with safe food, and cleaned 66 billion hands.

Simply put, I think the world needs the services of a company like Ecolab, so long as it remains the top dog in improving sustainability and eliminates a few current weaknesses.

Quick SWOT Analysis

First things first, let's take a brief overview of the company's current operations by looking at the main strengths, weaknesses, opportunities, and threats for Ecolab.

Strengths: Dividend Aristocrat status, fortress-like financial metrics, 9% profit margins, and leadership position give Ecolab a rock-solid foundation for future growth. Thanks to this solid financial footing, the company is positioned beautifully to capture market share as it continues to navigate its way out of the pandemic.

Weaknesses: Revenue per share has only grown from $40 to $42 since 2012. While profitability and efficiencies, in general, have been maximized for the company, it needs to restart revenue growth to become a long-term investing success.

Opportunities: Ecolab saw a 53% increase in data center sales versus Q2 2019, highlighting how valuable trend sustainability may be to the "big tech" companies moving forward. This sales segment is still in its infancy and represents Ecolab's most significant catalyst for revenue growth.

Threats: While COVID-19 did, unfortunately, help highlight the importance of a variety of Ecolab's offerings, EPS was still down 30% in 2020 due to its impact. Investors need to see EPS normalize and expand again when we emerge from the pandemic.

Overall, Ecolab has the resources it needs to overcome the blows its taken to revenue. I think the future could hold good things for the company (and its shareholders), especially if it can capitalize on its massive market opportunity.

A few promising points on market opportunity

Delivering on its promise to help provide safe food, clean water, and healthy environments, Ecolab has positioned itself as the leader within its industry. However, the following two points show that growth is far from over, even though the company sits at a $63 billion market cap.

Ecolab is the true leader in its industry, posting four times the sales of its nearest peer. Despite this leadership position, it only has a 9% overall share of the $135 billion in annual sales.

Due to the highly fragmented industry, Ecolab could capture new sources of sales growth by simply expanding its market share. As one of the few global brands in its sector, Ecolab has the power of scale on its side versus its more localized peers. Furthermore, Ecolab can land significant contracts with some of the largest companies in the world, thanks to its size and ability to offer products that smaller companies cannot.

In addition to market share expansion, the overall market opportunity for Ecolab has grown by 9% annually over the last decade. The facts that environmental, social, and governance investing (ESG) is becoming an area of focus for more investors and Ecolab's core offerings are growing more critical over time suggest a bright future for its stock.

An investor's next move

As the industry leader in sustainability, Ecolab has positioned itself to grow its market share in new, adjacent categories, such as its data center, water management, or its life sciences segment. With its vision of a truly sustainable future, the company offers investors intriguing potential to beat the market.

As is often the case with great businesses, Ecolab trades at a premium valuation posting a price-to-earnings (P/E) ratio of 50 and a price-to-cash-flow (PCF) ratio of 33. Due to these temporarily inflated valuation figures, I believe it is more helpful to look at Ecolab through the lens of its $63 billion market cap versus its $135 billion annually (and growing) market opportunity.

Going forward, I will be holding management's feet to the fire as their long-term sales and EPS growth goals are 6% to 8% and 15%, respectively. Having grown revenue by 7% annually over the last decade, these goals are ambitious yet reasonable. But, perhaps most importantly, I will be watching to ensure Ecolab builds upon its current 9% market share in the coming quarters.

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>>> The Scotts Miracle-Gro Company (SMG) manufactures, markets, and sells consumer lawn and garden products in the United States and internationally. The company operates through three segments: U.S. Consumer, Hawthorne, and Other. It offers lawn care products, such as lawn fertilizers, grass seed products, spreaders, other durable products, and outdoor cleaners, as well as lawn-related weed, pest, and disease control products. The company also provides gardening and landscape products, including water-soluble and continuous-release plant foods, potting mixes and garden soils, mulch and decorative groundcover products, plant-related pest and disease control products, organic garden products, and lives goods and seeding solutions. In addition, it offers hydroponic products that help users to grow plants, flowers, and vegetables using little or no soil; lighting systems and components for use in hydroponic and indoor gardening applications; and insect, rodent, and weed control products for home areas. The company offers its products under the Scotts, Turf Builder, EZ Seed, PatchMaster, Thick'R Lawn, GrubEx, EdgeGuard, Handy Green II, Miracle-Gro, LiquaFeed, Osmocote, Shake Â?N Feed, Hyponex, Earthgro, SuperSoil, Fafard, Nature Scapes, Ortho, Miracle-Gro Performance Organics, Miracle-Gro Organic Choice, Whitney Farms, EcoScraps, Mother Earth, Botanicare, Hydroponics, Vermicrop, Gavita, Agrolux, Can-Filters, Sun System, Gro Pro, Hurricane, AeroGarden, Titan, Tomcat, Ortho Weed B Gon, Roundup, Groundclear, and Alchemist brands. It serves home centers, mass merchandisers, warehouse clubs, large hardware chains, independent hardware stores, nurseries, garden centers, e-commerce platforms, and food and drug stores, as well as indoor gardening and hydroponic distributors, retailers, and growers through a direct sales force, and network of brokers and distributors. The Scotts Miracle-Gro Company was founded in 1868 and is headquartered in Marysville, Ohio.

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>>> WD-40 Company Reports Third Quarter 2021 Financial Results


Yahoo Finance

July 7, 2021


https://finance.yahoo.com/news/wd-40-company-reports-third-200500223.html


~ Third quarter consolidated net sales grew by 39 percent compared to prior year fiscal quarter

~~ Company reports diluted EPS of $1.52 for the third quarter


SAN DIEGO, July 7, 2021 /PRNewswire/ -- WD-40 Company (NASDAQ:WDFC), a global marketing organization dedicated to creating positive lasting memories by developing and selling products that solve problems in workshops, factories and homes around the world, today reported financial results for its third fiscal quarter ended May 31, 2021.

Third Fiscal Quarter Financial Highlights

Total net sales for the third quarter were $136.4 million, an increase of 39 percent compared to the prior year fiscal quarter. Year-to-date total net sales were $372.9 million, an increase of 26 percent compared to the prior year fiscal period.

Translation of the Company's foreign subsidiary results to U.S. dollars had a favorable impact on sales for the current quarter and year-to-date. On a constant currency basis, total net sales would have been $128.7 million for the third quarter and $359.7 million year-to-date.

Net income for the third quarter was $21.0 million, an increase of 45 percent compared to the prior year fiscal quarter. Year-to-date net income was $61.8 million, an increase of 51 percent from the prior year fiscal period.

Diluted earnings per share were $1.52 in the third quarter, compared to $1.06 per share for the prior year fiscal quarter. Year-to-date diluted earnings per share were $4.48 compared to $2.98 in the prior year fiscal period.

Gross margin was 53.1 percent in the third quarter compared to 54.0 percent in the prior year fiscal quarter. Year-to-date gross margin was 54.9 percent compared to 54.0 percent in the prior year fiscal period.

Selling, general and administrative expenses were up 37 percent in the third quarter to $38.1 million when compared to the prior year fiscal quarter. Year-to-date selling, general and administrative expenses were up 21 percent to $109.6 million compared to the prior year fiscal period.

Advertising and sales promotion expenses were up 39 percent in the third quarter to $6.6 million when compared to the prior year fiscal quarter. Year-to-date advertising and sales promotion expenses were up 16 percent to $17.7 million compared to the prior year fiscal period.

"Our tribe continues to work together through the challenges and opportunities associated with the COVID-19 pandemic," said Garry Ridge, WD-40 Company's chairman and chief executive officer. In the third quarter we experienced unprecedented demand for our maintenance products and today we are reporting record net sales of $136.4 million, up 39 percent compared to the third quarter of last year."

"The post-pandemic era is coming. We do not expect to see sales growth of this magnitude over the long-term, however, we believe that the new end users who have interacted with our products during the pandemic will become permanent users of our maintenance products."

"To reflect the strong sales results we experienced in the third quarter, we've increased our revenue expectations and believe that net sales are likely to be in a range of between $475 million to $490 million for the full fiscal year which reflects year-over-year sales growth of between 16 and 20 percent. As things get back to normal post the pandemic, consumer spending patterns will change again, and we expect consolidated net sales to grow in the mid to high single digits," Ridge concluded.

Net sales by segment as a percent of total net sales for the third quarter were as follows: for the Americas, 44 percent; for EMEA, 43 percent; and for Asia-Pacific, 13 percent.

Net sales in the Americas increased 20 percent in the third quarter primarily due to higher sales of WD-40 Multi-Use Product in the United States, Latin America and Canada which increased 24 percent,138 percent and 74 percent, respectively. The increase in sales in the United States and Canada was driven by increased demand linked to renovation trends associated with the pandemic. In addition, sales in the corresponding period of the prior fiscal year were negatively impacted by disruptions and lockdowns related to the early stages of the COVID-19 pandemic. The increase in sales in Latin America was primarily due to higher maintenance product sales in Mexico driven by a successful shift to a direct distribution model that the company began late in the third quarter of the prior fiscal year. In addition, sales in Latin America in the corresponding period of the prior fiscal year were negatively impacted by disruptions and lockdowns related to the early stages of the COVID-19 pandemic.

Net sales in EMEA increased 80 percent in the third quarter primarily due to higher sales of maintenance products in both the EMEA direct and distributor markets, which increased 85 percent and 70 percent, respectively. Higher sales of maintenance products in the EMEA direct markets were primarily due to increased sales of WD-40 Multi-Use Product driven by increased demand linked to renovation trends associated with the pandemic, increased sales through the ecommerce channel and increased promotional activities. In addition, sales in the corresponding period of the prior fiscal year were negatively impacted by disruptions and lockdowns related to the early stages of the COVID-19 pandemic. Higher sales of maintenance products in the EMEA distributor markets were primarily attributable to improved economic conditions as a result of reductions in COVID-19 related movement restrictions. Changes in foreign currency exchange rates had a favorable impact on sales for the EMEA segment from period to period. On a constant currency basis, EMEA sales for the third quarter would have increased by 63 percent compared to the prior fiscal year quarter.

Net sales in Asia-Pacific increased 14 percent in the third quarter. Changes in foreign currency exchange rates had a favorable impact on sales for the Asia-Pacific segment. On a constant currency basis, Asia-Pacific would have increased by 5 percent compared to the prior year fiscal quarter primarily due to higher sales of maintenance products in the Asia-Pacific distributor markets and Australia which increased 26 percent and 14 percent, respectively. Higher sales of maintenance products in the Asia-Pacific distributor markets were primarily attributable to improved economic conditions as a result of reductions in COVID-19 related movement restrictions. Higher sales of maintenance products in the Australia were primarily attributable to increased sales of 3-IN-ONE and WD-40 Specialist driven by increased demand linked to renovation trends associated with the pandemic. Partially offsetting these sales increases were lower sales of WD-40 Multi-Use Product in China which decreased 12 percent compared to the prior year fiscal quarter primarily due to a higher level of sales in the third quarter of fiscal year 2020 associated with the timing of COVID-19 restrictions and shipping activities during that period.

Net sales of maintenance products, which are considered the primary growth focus for the Company, increased 45 percent in the third quarter when compared to the prior year fiscal quarter. This sales increase was primarily attributable to increased sales of WD-40 Multi-Use Product in all three segments driven by increased demand linked to renovation trends associated with the pandemic, improved market conditions due to a reduction of COVID-19 lockdown measures, and increased sales through the ecommerce channel.

Net sales of homecare and cleaning products decreased 13 percent in the third quarter when compared to the prior year fiscal quarter. The Company started to experience an increase in sales of its homecare and cleaning products beginning in the third quarter of fiscal year 2020 due to increased demand for such products as a result of the COVID-19 pandemic. However, sales of homecare and cleaning products have returned to more normal levels due to improvements in public health and safety restrictions related to the pandemic in many regions. The homecare and cleaning products, particularly those in the U.S., are considered harvest brands providing healthy profit returns to the Company and are becoming a smaller part of the business as net sales of multi-purpose maintenance products grow per the execution of the Company's strategic initiatives.

Dividend Information

As previously announced, WD-40 Company's board of directors declared on Tuesday, June 15, 2021 a regular quarterly dividend of $0.72 per share payable on July 30, 2021 to stockholders of record at the close of business on July 16, 2021.

Webcast Information

As previously announced, WD-40 Company management will host a live webcast at approximately 5:00 p.m. ET / 2:00 p.m. PT today to discuss these results. Other forward-looking and material information may also be discussed during this call including management's current view of the business in light of the COVID-19 pandemic. Please visit http://investor.wd40company.com for more information and to view supporting materials.

About WD-40 Company

WD-40 Company is a global marketing organization dedicated to creating positive lasting memories by developing and selling products that solve problems in workshops, factories and homes around the world. The Company markets a wide range of maintenance products and homecare and cleaning products under the following well-known brands: WD-40®, 3-IN-ONE®, GT85®, X-14®, 2000 Flushes®, Carpet Fresh®, no vac®, Spot Shot®, 1001®, Lava® and Solvol®.

Headquartered in San Diego, WD-40 Company recorded net sales of $408.5 million in fiscal year 2020 and its products are currently available in more than 176 countries and territories worldwide. WD-40 Company is traded on the NASDAQ Global Select market under the ticker symbol "WDFC." For additional information about WD-40 Company please visit http://www.wd40company.com.

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>>> Sherwin-Williams to Acquire European Industrial Coatings Business of Sika


Yahoo Finance

August 19, 2021


https://finance.yahoo.com/news/sherwin-williams-acquire-european-industrial-203000590.html


CLEVELAND, Aug. 19, 2021 /PRNewswire/ -- The Sherwin-Williams Company (NYSE: SHW) today announced it has signed an agreement to acquire the European industrial coatings business of Sika AG. The transaction is expected to close in the beginning of 2022.

Based in Germany with additional sales and technical support in Poland, Austria and Switzerland, Sika's European industrial coating business engineers, manufactures and sells corrosion protection coating systems for high value interior and exterior steel infrastructure, bridges, airport and rail, wind and energy, chemicals, power transmission and stations, interior linings for oil and gas tanks, vessels, and pipework, and water and wastewater applications, along with fire protection coating systems to protect and preserve steel, wood and concrete building components. Sales of the business were approximately CHF 75 million ($82 million) for the year ended December 31, 2020. The acquired business will become part of the Company's Performance Coatings Group operating segment. Approximately 130 Sika employees are expected to join Sherwin-Williams.

"This transaction fits our strategy of acquiring complementary, high-quality, differentiated businesses that add to our profitable growth momentum," said Sherwin-Williams Chairman, President and Chief Executive Officer, John G. Morikis. "The business brings us scale, unique technology, a strong sales and marketing team, technical service capabilities, strategically located manufacturing, and leading specification and approval positions, all of which we can leverage further throughout Europe and other regions across the world. Additionally, synergy opportunities give us great confidence in accelerating the already strong financial performance of the business. We look forward to officially welcoming Sika's industrial coating employees to Sherwin-Williams upon the close of the transaction at the beginning of next year."

ABOUT THE SHERWIN-WILLIAMS COMPANY

Founded in 1866, The Sherwin-Williams Company is a global leader in the manufacture, development, distribution, and sale of paint, coatings and related products to professional, industrial, commercial, and retail customers. The Company manufactures products under well-known brands such as Sherwin-Williams®, Valspar®, HGTV HOME® by Sherwin-Williams, Dutch Boy®, Krylon®, Minwax®, Thompson's® Water Seal®, Cabot® and many more. With global headquarters in Cleveland, Ohio, Sherwin-Williams® branded products are sold exclusively through a chain of more than 5,000 Company-operated stores and facilities, while the Company's other brands are sold through leading mass merchandisers, home centers, independent paint dealers, hardware stores, automotive retailers, and industrial distributors. The Sherwin-Williams Performance Coatings Group supplies a broad range of highly-engineered solutions for the construction, industrial, packaging and transportation markets in more than 120 countries around the world. Sherwin-Williams shares are traded on the New York Stock Exchange (symbol: SHW). For more information, visit www.sherwin.com.

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Green Steel - >>> The Green Revolution Is Being Built on a Very Dirty Industry


Bloomberg

By Eddie Spence, Sam Dodge and Akshat Rathi

June 13, 2021


https://www.bloomberg.com/graphics/2021-green-steel/?srnd=premium


The battle against climate change is relying on the same polluting building block that drove the second Industrial Revolution a century and a half ago.

Steel, which transformed everything from guns and bridges to cities and shipping at the end of the 19th century, is also critical to the wind turbines, solar panels and electricity pylons needed to displace fossil fuels. But steel is itself reliant on burning billions of tons of coal, with the industry emitting more carbon dioxide than cars, buses and motorbikes combined.

Weening a low-margin industry off cheap coal and onto more costly green steel technologies will require massive government support and concerted action by steelmakers from Tangshan to Indiana.

In the past year, five of the six biggest steelmakers lined up behind the Paris Agreement, committing to reaching net zero emissions by 2050. U.S. President Joe Biden and Chinese President Xi Jinping are pushing hard to reduce greenhouse-gas emissions, while the European Union plans to slap an import levy on building materials produced in countries with lower environmental standards, making local, low-emission steel more competitive.

“In the last year or so, the steel industry has collectively ‘got it,’” said Doug Parr, Greenpeace U.K.’s chief scientist. “Particularly since Biden got elected, there’s a recognition that climate policies are going to reach into all sectors. If one or two companies start to move to cut emissions, then others in the sector look very exposed.”

The Group of Seven nations, whose leaders are meeting in the U.K. this weekend, plan to take action to decarbonize steel and other industrial sectors, according to an early draft communique. The political impetus couldn't come at a more important time, as renewable-energy technologies need even more steel per unit of energy they produce than the fossil fuels do.

But there's still a long road ahead. We've crunched the numbers on getting steel to net zero in a series of charts showing the vast scale of the challenge.

Modelling by BloombergNEF shows that to build enough wind turbines to reach net zero by 2050, 1.7 billion tons of steel will be needed. That's enough to make 22,224 replicas of San Francisco's iconic Golden Gate Bridge. Solar panels and pylons to expand electricity grids are similarly steel heavy.

Lots of Steel

China will be key to cleaning up the industry, as it produces more than half the world's steel.

Baowu Steel Group, China’s state-owned national champion and the world’s No. 1 producer, is among the steelmakers committed to carbon neutrality by 2050, a decade before the target set by President Xi for the country as whole. Baowu has been at the forefront of technological change in China’s industry for decades and could be pivotal in driving the nation’s green ambitions.

Beijing is aiming for steel to hit peak carbon emissions before 2025, and is pushing for a 30% cut by 2030. It’s a massive task because the industry is dominated by coal-fired blast furnaces that will be difficult to transform, and many of which have years of useful life remaining.

“The industry is looking with a lot of interest at what is happening in China, just because of the sheer size of the Chinese industry,” said Benedikt Zeumer, a consultant at McKinsey & Co. “Because the Chinese industry is centrally driven, direction can be translated into complete action.”

The Steel Industry Is Gradually Committing to Net Zero

Note: Chinese steelmakers have government mandated target of 30% emissions cut by 2030. *Long term, specific numeric goal to reduce greenhouse gas emissions by a significant fraction of current level

Some European and North American steelmakers, such as Nucor Corp., which use recycled steel in electric-arc furnaces, face a smaller challenge: finding greener sources of power supply. But even if every available piece of scrap was recycled, more than half the world’s steel in 2050 will still need to be made by melting down iron ore, according to BNEF.

That leaves companies including ArcelorMittal SA, POSCO and Nippon Steel Corp. searching for ways to replace traditional blast furnaces, where carbon in the form of coal or carbon monoxide is pumped in along with the ore, creating pure liquid iron at temperatures of more than 1,000 degrees Celsius (1,832 degrees Fahrenheit). The carbon latches onto atoms of oxygen in the ore and floats away as carbon dioxide, contributing to global warming.

One option is to substitute coal with biomass, such as wood or agricultural waste, while trapping the emissions underground. For steelmakers it’s an appealing choice because it minimizes the cost of revamping mills. But "scaling biomass is a challenge,” said William Gale, a professor at University of Leeds. For example, planting forests for harvesting wood could mean less land to grow food.

That's encouraging the industry to look at renewable hydrogen as an alternative fuel. The catch is that making green hydrogen, by splitting water using clean electricity, is costly and requires huge amounts of renewable power. Currently planned capacity could produce just 1.8% of the gas the steel industry would need to achieve net zero in 2050, according to BNEF.

Still, progress is being made. Tapping Sweden’s electricity surplus, SSAB AB is using hydrogen to decarbonize its entire business.

“We need acceptance that in the future we will need to use a significant amount of electricity,” said SSAB’s Chief Technology Officer Martin Pei.

Nowhere Near

Planned green hydrogen capacity in 2050 is far less than the needs of industry

But even if enough electricity can be generated to power the transformation, green steel will be more expensive, according to the Rocky Mountain Institute. For example, in northern Europe, costs could be 20% to 30% higher based on current power prices.

Some companies have signaled their willingness to accept the higher costs, with Volvo Group AB and SSAB AB collaborating to make vehicles out of green steel. Renewable energy giant Orsted AS has pledged to use green steel in its wind turbines to fully decarbonize its supply chain by 2040.

“There is quite strong demand for low CO2 steel,” said Matthew Watkins, principle analyst at consultancy CRU Group. “There are sectors of the market that want that, but it’s not seen yet whether they will pay more for it.”

That’s where initiatives such as the EU’s Green Deal become critical in creating a market and making decarbonization a commercial necessity for steelmakers. It will also give a competitive edge to those pioneering green technologies, said Geert Van Poelvoorde, chief executive officer of ArcelorMittal’s European business.

“When you are decarbonizing the world, producing green energy with coal-based produced steel would be crazy,” he said. “When the demand for steel is increasing and you don’t decarbonize, you will nullify all the efforts you have made somewhere else.”

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>>> Sika AG (SXYAY), a specialty chemicals company, develops, produces, and sells systems and products for bonding, sealing, damping, reinforcing, and protecting in the building sector and motor vehicle industry worldwide. It offers tile adhesives and grouts, and systems for under-tile waterproofing and sound reduction, as well as products for exterior and interior walls, such as wall-levelling products, decorative finish renders, and facade systems; and develops and markets various admixtures and additives for use in concrete, cement, and mortar production, as well as single-ply and built-up flat roofing systems. The company also provides a range of technologies used for below and aboveground waterproofing, including flexible membrane systems, liquid applied membranes, joint waterproofing systems, waterproofing mortars and mortar admixtures, and injection resins and grouts for use in various markets, such as commercial and residential basements, tunnels, bridges, and various types of water-retaining structures, such as reservoirs, storage basins, and storage tanks. Further, it offers flooring solutions, such as synthetic resin and cementitious systems for industrial and commercial buildings; and sealants, tapes, spray foams, and elastic adhesives for the building envelope, interior finishing, and infrastructure construction applications. In addition, the company provides repair, strengthening, and protective solutions for concrete structures, such as repair mortars, shrinking grouts, anchoring adhesives, protective coatings, and corrosion control and structural strengthening systems. It serves automobile and commercial vehicle assembly, automotive aftermarket, marine vessels, industrial lamination, renewable energies, and facade engineering industries. The company was founded in 1910 and is headquartered in Baar, Switzerland.

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IQST signed a LOI with a Fortune 500 leader in the chemical industry based upon its award winning IoT tech being used by the company, with an initial 2,500 units planned. This will create another recurring revenue stream for IQST.

https://finance.yahoo.com/news/iqst-iqstel-award-winning-technology-130000878.html?soc_src=social-sh&soc_trk=tw&tsrc=twtr

"IQST - iQSTEL Award Winning Technology Division Recognized Alongside Fortune 500 Luminaries Could Soon Sign Fortune 500 Client

Thu, February 11, 2021, 7:00 AM·3 min read

NEW YORK, Feb. 11, 2021 /PRNewswire/ -- iQSTEL, Inc. (USOTC: IQST) today announced entering into a letter of intent (LOI) agreement with a prominent Fortune 500 company and leader within the global chemical industry.

The potential Fortune 500 client is exploring a potential business engagement with iQSTEL's Technology Division subsidiary, IoT Labs (www.iotlabs.mx).

IoT Labs' landmark Smart Gas technology (www.iotsmartGas.com) won the Smart Appliance of the Year award from IoT Break Through (www.iotbreakthrough.com) joining the ranks of other globally recognized industry leaders including Apple, Amazon and General Electric, among other industry leaders (https://iotbreakthrough.com/2021-winners/).

IoT Labs and the Fortune 500 prospect are exploring a joint effort to develop a two-way communication device of Internet of Things (IoT) for the chemical industry (IoT Smart Tank), to include a back and front-end platform to run as a Mobile App.

The parameters of the agreement are structured around an initial rollout of IoT Smart Tank solution (www.iotsmartTank.com) to be deployed on 2500 devices generating a monthly recurring revenue stream."

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>>> Scotts Miracle-Gro reports first-ever Q1 profit, will air first Super Bowl ad


MarketWatch

Feb. 3, 2021

By Tonya Garcia


https://www.marketwatch.com/story/scotts-miracle-gro-reports-first-ever-q1-profit-will-air-first-super-bowl-ad-2021-02-03?siteid=yhoof2


Scotts Miracle-Gro Co. SMG, -0.04% reported its first-ever fiscal first-quarter profit and sales that reached a record. Shares rose 3.3% in Wednesday premarket trading. Net income totaled $24.4 million, or 43 cents per share, after a loss of $71.4 million, or $1.28 per share, last year. Adjusted EPS of 39 cents blew past the FactSet consensus for a loss of 77 cents. Scotts Miracle-Gro typically reports a loss due to the seasonal nature of the lawn care and gardening business. Sales totaled $748.6 million, up from $365.8 million and also far exceeding the FactSet consensus for $595.0 million. "Our year-round commitment to driving the conversation with consumers will include our first commercial specially produced for the Super Bowl, which is scheduled to appear in the second quarter of this Sunday's game," said Jim Hagedorn, Scotts Miracle-Gro chief executive, in a statement. "That kind of reach, coupled with our data-driven and highly targeted approach to social media, is key in our efforts to retain the millions of new consumers who have entered our category over the past year."

Scotts Miracle-Gro now expects full-year fiscal 2021 sales to grow 1% to 6%, up from previous guidance for flat sales to 5% growth. Adjusted EPS is expected to be $8.00 to $8.40. The FactSet consensus is for sales of $4.257 billion, suggesting 3% growth, and EPS of $8.36. The company is now guiding for 20% to 30% sales growth for the Hawthorne Gardening Company, which specializes in materials for indoor and hydroponic growing, up from previous guidance for 15% to 20% growth. Scotts Miracle-Gro stock has soared 84.5% over the last year, far outpacing the benchmark S&P 500 index SPX, +0.39%, which is up 17.8% for the period.

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Air Products & Chemicals - >>> Have a gas with one of the head honchos in hydrogen


https://www.fool.com/investing/2020/12/05/forget-fuel-cell-stocks-here-are-3-better-stocks-t/


Air Products & Chemicals: Fuel cell stocks have skyrocketed over the past couple of months, thanks to Bloom Energy entering the commercial hydrogen market and its fellow hydrogen specialist Plug Power expanding further into the stationary power market.

But one of the problems with fuel cell stocks like Plug Power and Bloom Energy is that -- though they're experienced noteworthy top-line growth -- they've consistently failed to prove that their endeavors can generate earnings. That doesn't mean, however, that all hope in hitching your wagon to a profitable hydrogen-oriented company is lost.

While investors will find that fuel cell stocks feature bottom lines consistently shaded red, Air Products generates considerable profits. Over the past 10 years, Air Products has generated average annual EPS of $6.60.

Dealing in a variety of industrial gases, Air Products is far from a pure-play on hydrogen, but the company recognizes the substantial opportunity in the burgeoning hydrogen economy. This past April, for example, Air Products went on a $530 million spending spree, acquiring five operating hydrogen plants from PBF Energy. But this pales in scope to its July transaction.

Forming a joint venture with ACWA Power and NEOM, Air Products will work to develop a $5 billion facility that will produce ammonia from wind and solar power. Air Products will then commit an additional $2 billion to develop the infrastructure to convert the ammonia to hydrogen. Located in Saudi Arabia and scheduled to begin operations in 2025, the joint venture project is expected to supply 650 tons of hydrogen daily for transportation applications around the world.

Speaking to the joint venture and the company's leading position in hydrogen writ large, Seifi Ghasemi, the company's president and CEO, stated on the company's third-quarter conference call, "This project is a true game changer for the carbon-free hydrogen market, which as we have always said, we expect to grow significantly in the next decade and we are positioning Air Products to continue to be the leader in the hydrogen space."

I've carved out a nice niche in my portfolio for riskier stocks, and I trust that hydrogen will become increasingly popular in terms of energy solutions. But the risks related to fuel cell stocks are too great for my taste. Air Products seems like a much more reasonable approach.

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>>> WD-40's Valuation Defies Logic

The company is benefiting from the COVID-19 pandemic, but on a risk/reward basis the stock looks overvalued.


Motley Fool

by Lee Samaha

Oct 31, 2020


https://www.fool.com/investing/2020/10/31/wd-40s-valuation-defies-logic/


Some stocks seem to have a set of valuation characteristics of their very own, and WD-40 (NASDAQ:WDFC) is definitely one of them.

Like other companies with exposure to the home improvement sector, WD-40 had a very strong August-ended quarter. In nutshell, global stay-at-home measures have encouraged a shift in spending toward DIY and spending on the home. However, WD-40's valuation looks more up than events would justify and investors need to carefully consider buying into the stock at this level.

Before getting into the details of the company's operations, let's pause for a moment and consider the hefty valuations that WD-40 now trades at. Whether it's enterprise value (market cap plus net debt) to earnings before interest, taxation, depreciation, and amortization (EBITDA); price to free cash flow, or price to earnings, WD-40's valuation is expensive.

Three reasons to be cautious on WD-40

My key points are as follows:

The stay-at-home measures have given a boost to sales in Europe and the Americas, but there's no guarantee they will continue, and before the pandemic hit, the company was tracking behind its long-term aims.
The company's long-term aspirations are partly contingent on growth in emerging markets, but its Asia-Pacific region sales continue to disappoint.

Management's lack of guidance is illustrative of the level of uncertainty still in the marketplace.

A temporary boost?

WD-40's fiscal year finishes at the end of August, so the fourth-quarter earnings refer to the June to August period, with the third quarter being March to May. In this context, it's not difficult to see why third-quarter sales were down 14% year over year -- they came in the middle of the heaviest lockdown period.

However, people eventually started spending on their homes in a phenomenon described by WD-40 management as "isolation renovation." The company's sales bounced back and grew 5% on a year-over-year basis in the fourth quarter, led by a whopping 15% increase in Americas sales and 18% in the Europe, Middle East, and Africa (EMEA) region. The question now is whether this will prove sustainable.

It's very hard to answer that question, because it's far from clear how the pandemic will play out. One thing we do know is that before the pandemic spread out of China, WD-40 was having a hard time tracking management's aim for $700 million in sales in 2025.

Let's put it this way: Sales in 2019 were $423 million, so WD-40 would need to grow sales by 8.7% per annum in order to hit the $700 million target at the end of 2025. To put this figure into context, sales were flat in 2017, grew 7% in 2018, and 4% in 2019. Meanwhile, management started fiscal 2020 forecasting full-year sales growth of 3% to 7%.

Asia-Pacific sales weakness

The following chart shows WD-40's sales by region. As discussed above, the Americas and EMEA regions bounced strongly due to "isolation renovation." On the other hand, Asia-Pacific actually got worse, despite China's economy opening up at a much faster pace.

WD-40 sales growth.

Discussing the matter on the fourth-quarter earnings call, management put it down to a lack of a DIY culture in the region. In addition, management said that it saw relatively less inventory restocking in China, and the company was coming up against a tough growth comparison from the 22% growth reported in the fourth quarter of 2019.

That's fair enough, but it doesn't change the fact that Asia-Pacific sales growth has been negative for four quarters in a row.

Lack of guidance

Finally, the lack of guidance for 2021 is a reminder that it's still a very uncertain environment.

The COVID-19 pandemic has continued to inject a measure of uncertainty into our business, which makes it very difficult for us to accurately forecast short-term financial results for the company and as a result we will not be issuing any guidance for fiscal 2021 at this time," said CFO Jay Rembolt during the Oct. 20 conference call with analysts.

Recalling that management tends to give pretty wide guidance at the start of its fiscal year, it's somewhat puzzling that there was no guidance given for 2021.

Management's initial full-year sales growth guidance for the last three years has been for 4% to 6%, 4% to 7%, and 3% to 7%. Therefore, the lack of any sort of guidance for 2021 suggests there could be a lot of volatility in WD-40's sales.

Looking ahead

It would be a mistake to be too pessimistic about WD-40's prospects. After all, it's a very good company with a globally recognizable product. Furthermore, management has generated substantive amounts of value for shareholders over the years.

On the other hand, with the stock trading on 53 times trailing earnings, it appears that the market has priced in the most optimistic outcome for the company in the coming years, and there are enough question marks around its performance to warrant skepticism around buying the stock at this price.

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>>> Sherwin-Williams Boosts Its Outlook Again: "We're Just Getting Started"

The paint giant sees a bright future ahead.


Motley Fool

by Demitri Kalogeropoulos

Oct 31, 2020


https://www.fool.com/investing/2020/10/31/sherwin-williams-boosts-its-outlook-again-were-jus/


It didn't take Sherwin-Williams (NYSE:SHW) long to return to sales growth following COVID-19 closures. The paint supply giant announced surprisingly strong demand trends as part of its fiscal third-quarter update in late October. Those metrics supported management's second straight upgrade to the 2020 outlook, which now calls for significant growth this year despite several weeks of pandemic disruptions to the business.

In a conference call with Wall street analysts, CEO John Morikis and his team explained the main factors behind Sherwin-Williams' rebound, which they see positioning the company for steady growth into 2021.

Let's look at some highlights.

Colorful results

We generated very solid sales growth in the quarter with all three operating segments growing year-over-year, exceeding the original guidance we provided at the end of July and improving sequentially.
-- Morikis

Sherwin-Williams' growth was powered by surging demand in its U.S. retail business as consumers spent aggressively on home improvement projects. Executives described a supportive selling environment for interior home repaintings, new home purchases, too, which all contributed to global sales gains landing at 5%. That result outpaced the roughly flat forecast they issued back in late July.

The performance coatings division returned to growth in the period, and that just left Sherwin-Williams' commercial segment as the biggest struggling niche. But even that unit is on track for a full recovery as most projects are being delayed rather than canceled, executives said.

Financial wins

The gross margin expansion in the quarter was driven by sales growth, effective pricing, favorable mix and lower input costs.
-- Morikis

Several factors combined to produce some head-turning financial metrics: Adjusted earnings jumped 21% and operating cash soared 54% from the prior-year period.

The biggest contributor to these wins was rising gross profitability, which came from higher margins across Sherwin-Williams' biggest divisions. Input costs dropped, prices rose 2% on average, and shoppers increasingly traded up to more premium products.

As a result, pre-tax income jumped to $876 million from $710 million a year earlier. "This incredible team ... delivered record results in a very challenging environment," Morikis said.

Looking out to 2021

We anticipate fourth quarter 2020 consolidated net sales will increase by 3% to 7% versus the fourth quarter of 2019.
-- Morikis

Sherwin-Williams' short-term outlook implies a second consecutive quarter of strengthening results on a global basis, with the key growth factors holding steady compared to the latest quarter. Executives see plenty of reasons to be optimistic as demand is strong across almost its entire portfolio. The company is adding new stores, raising prices, and continuing to deliver premium paints to both residential and commercial customers.

The fourth quarter is a seasonally weak one for the business, but executives still see the faster growth trends sending sales higher in the low single digits for the full 2020 year. That forecast had called for flat revenue in late July.

The picture is even brighter on earnings, which are now set to land between $21.49 and $21.79 per share, up from the prior prediction range of $16.46 to $18.46 per share. While investors will have to wait until early 2021 for a detailed outlook on the new fiscal year, management sounded optimistic about the broader growth potential. "There is tremendous opportunity in front of us in every one of our businesses," Morikis said, "and in many ways we're just getting started."

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>>> WD-40 posts strong quarter as ‘isolation renovation’ drives sales


MarketWatch

October 21, 2020


https://finance.yahoo.com/video/wd-40-posts-strong-quarter-154035421.html


Yahoo Finance’s Alexis Christoforous and Brian Sozzi speak with Garry Ridge, Chairman and CEO of WD-40, about his company’s big quarterly results and what’s to come next.

BRIAN SOZZI: Many of us have spent this pandemic doing home improvements, and one company benefiting from that is WD-40. Its global sales were up 5% last quarter thanks to what it calls, isolation renovation. Joining us now to discuss is WD-40 Chairman and CEO, Garry Ridge. Garry, good to see you. Like I said in the tease, I've been using your product for about 20 years. Take us through the quarter. What are some of the biggest trends you saw?

GARRY RIDGE: Yeah, g'day, Brian, great to be with you. Yes, this renovation, isolation renovation has really been something that's benefited us in our core business, things like our WD-40 bike product was up 160%. We've done really well on e-commerce. For the year, our e-commerce business in the US was up 93%, up 58% globally.

We're very fortunate, about three years ago, we made a decision to heavily invest in what we call rating our digital IQ. We've got 90 websites across the world in 176 countries we operate in, so our core business. And then our WD-40 specialist business, we released a range of specialist products a number of years ago. We rebranded it to bring in the iconic blue and yellow can with the little red top. So that's been a great success.

So overall, a great quarter, but we're not in the quarter to quarter business. We've been building this business for 67 years and we love creating positive lasting memories with our product. And we really, really are so fortunate to have such an engaged workforce. We have employee engagement at 93%. And it's because of the efforts of those great, as we call them, tribe members, that we got this done. So it's been a real learning opportunity.

ALEXIS CHRISTOFOROUS: And Garry, you're not resting on your laurels, because you continue to innovate. Somebody might go, how do you innovate with WD-40? But you have found a way. Tell us how.

GARRY RIDGE: Yeah. One of the things we do, our purpose is to create positive lasting memory solving problems in factories, homes and workshops around the world. So we do something really interesting. We listen to our end users. And one of our latest innovations is this. This is the WD-40 can with a bendable straw. So if you can imagine an auto mechanic or a tradesman or an artisan who needs to get WD-40 to a special place, you can now do it by bending this straw. It stays in place, gets the job done, and creates a positive lasting memory. So we love it.

BRIAN SOZZI: Yeah, our producer, Nick Monte, certainly loves it too. He says he's going to buy a case of it. I do want to ask, Garry, I've been using your product for many years on, I just realized just thinking about it more, so many different services and so many different uses. But what are some of the three craziest ways you could use WD-40? You've been there for a while. I'm sure you used it in a lot of different ways.

GARRY RIDGE: Yeah, we actually have 2,000 uses for WD-40 that's published on our website, if anyone's interested. Back in the year 2000, we went and we asked our end users, can you tell us all the things you use WD-40 for. And we had about 250,000 entries in this contest that we then distilled down to 2,000 uses.

But a couple of interesting uses for WD-40, there was a lady who lived in the Midwest, she used to love to feed her birds. She had a bird feeder out in the backyard that sat on top of a pole, and squirrels used to run up the pole. So she used to spray the pole with WD-40. Didn't hurt the squirrels, the food stayed uneaten and the birds got it. So that's interesting.

Many years ago, WD-40 was used to release a nude burglar from a air conditioning duct. He was robbing a bank, I believe. So there's, but WD-40, what my favorite use, you know I'm an Aussie, so I have a barbecue, I love shining my stainless steel barbecue with WD-40. I have the cleanest barbecue in San Diego, I guarantee you that.

BRIAN SOZZI: I'm not sure how I can follow that. But leave it there for right now. WD-40 Chairman, CEO, Garry Ridge, really a lot of institutional knowledge there. Good luck on the path forward.

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>>> Ecolab Synergex™ Sanitizer & Disinfectant First to Receive U.S. EPA Biofilm Claim


Business Wire

August 18, 2020


https://finance.yahoo.com/news/ecolab-synergex-sanitizer-disinfectant-first-123000773.html


Helping food and beverage manufacturers increase food safety by killing biofilms with a no-rinse option disinfectant and sanitizer

Ecolab‘s Synergex™ Sanitizer & Disinfectant is the first product to receive U.S. Environmental Protection Agency (EPA) approval for efficacy against biofilms, a complex community of bacteria on food contact surfaces.

According to the EPA, biofilms form when bacteria adhere to environmental surfaces, especially those located in the presence of high moisture. Biofilms typically persist in a matrix containing slimy, glue-like substances which facilitate their attachment to many hard surfaces.1

Although biofilms on food-contact surfaces were an unsolved issue for the food and beverage industry, there was no EPA-approved method to test sanitizer efficacy on biofilms. Ecolab, the global leader in water, hygiene and infection prevention solutions and services, partnered with the EPA to develop the first-ever food-contact biofilm test method.

Ecolab’s Synergex Sanitizer & Disinfectant is an EPA-registered (No. 1677-250) mixed peracetic acid (PAA) based sanitizer and disinfectant that helps food and beverage manufacturers enhance food safety, quality assurance, worker safety and air quality. Synergex Sanitizer & Disinfectant has been developed to kill 99.9999% of Pseudomonas aeruginosa and Listeria monocytogenes pathogens in biofilms on hard, non-porous food contact surfaces, at no-rinse concentration level options.

"Biofilms are a leading cause of quality issues for food and beverage manufacturers, and until now, they have been difficult to destroy on food-contact surfaces," said Ann Gent, senior vice president and general manager of Ecolab Food and Beverage in North America. "Biofilms manifest in ways that mask the root cause of sanitation problems. A customer may see increased food spoilage or decreased shelf-life, for undetectable reasons. Synergex will help address the issues that result from biofilms on food-contact surfaces."

"If biofilms are not killed during the cleaning and sanitizing process, bacteria and organisms are given a ‘head start’ to grow, allowing micro levels to exceed the quality threshold sooner in the food production process," said Jesse Hines, technical accounts program leader for Ecolab Food and Beverage. "Biofilms are one of several microorganism challenges that can be handled using Synergex Sanitizer & Disinfectant. The patented formulation of Synergex helps reduce day-to-day variability and promotes quality assurance."

For more information on Synergex Sanitizer & Disinfectant and biofilms, visit www.ecolab.com/biofilms.

About Ecolab

A trusted partner at nearly three million commercial customer locations, Ecolab (NYSE: ECL) is the global leader in water, hygiene and infection prevention solutions and services. With annual sales of $13 billion and more than 45,000 associates, Ecolab delivers comprehensive solutions, data-driven insights and personalized service to advance food safety, maintain clean and safe environments, optimize water and energy use, and improve operational efficiencies and sustainability for customers in the food, healthcare, hospitality and industrial markets in more than 170 countries around the world. www.ecolab.com

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EESE purchased two new chemical companies in the last year Patriot and Celex. They have gained a lot of traction with both companies and increased their revenue for the third straight year in a row. https://finance.yahoo.com/news/ees-increases-revenue-third-row-210100004.html

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Balchem - >>> NEW APPLICATIONS LAB IN BRIDGETON, MO


By Robert Mason

Senior Scientist, Encapsulates & Inclusions


https://www.sensoryeffects.com/content/new-applications-lab-bridgeton-mo


With the integration of Balchem Corporation and SensoryEffects, the Balchem Encapsulates Applications research lab has relocated from New Hampton, NY to Bridgeton, MO. The Applications lab is now housed in a newly renovated lab space to accommodate all of the equipment moved from New York and is now ready to take on new projects.

Applications research and development is an important part of the SensoryEffects technical team, as they study the performance of our ingredient portfolio in the finished formulations used by customers. The lab has a wide variety of equipment and instrumentation suited for analytical, bakery, meat and confectionery research to support new product development or trouble shoot customer issues.

Our team is comprised of talented scientists trained in bakery, meat and encapsulation technologies and they work diligently to overcome the many challenges our customers encounter in their products and/or processes. They are highly skilled in formula development for meat, bakery and confectionery products and are always willing to share their expertise.

The integration has made a wider range of ingredients available to customers in the bakery and meat industry, including lipid inclusions for Balchem customers and encapsulated ingredients for SensoryEffects customers. Along with the ability to develop bakery, meat and confectionery products, our lab can analyze the raw materials and finished products in-house for CO2 production, pH, texture, moisture, color, flavor matching and conduct sensory tests. The Applications team has been hard at work in their new lab with new product applications research and they are looking forward to supporting our new and existing customers from this new facility.

Looking forward

We currently support many research efforts for European line extensions of our encapsulate and inclusion products, and will be launching lipid inclusions for the European market by the end of 2015. Look for them to roll out at the FI Natural Products in Istanbul and IBA in Munich trade shows!

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Balchem - markets and products -


https://www.balchem.com/our-products/


NUTRITION

ANIMAL
Aquaculture
Beef
Companion
Dairy
Equine
Poultry
Swine

HUMAN
Dietary Supplements
Fortified Foods
Infant & Child
Pharmaceuticals
PLANT
Foliars
Organic Powders


FOOD

Bakery
Beverage
Cereal & Snacks
Confectionery
Dairy
Meats
Nut & Spice Fumigation
Savory


STERILIZATION

Medical Devices


ENERGY

Oil & Gas

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>>> Balchem Corporation develops, manufactures, and markets specialty performance ingredients and products for the food, nutritional, feed, pharmaceutical, medical sterilization, and industrial markets in the United States and internationally. The company's Human Nutrition & Health segment supplies ingredients in the food and beverage industry. Its products include spray dried and emulsified powders, blended lipid systems, liquid flavor delivery systems, juice and dairy bases, chocolate systems, and cereal systems, as well as ice cream bases and variegates. This segment also offers microencapsulation solutions; and human grade choline nutrients and mineral amino acid chelated products for wellness applications. Its Animal Nutrition & Health segment provides microencapsulated products to enhance health and milk production in ruminant animals; chelation technology, which offers enhanced nutrient absorption for various species of production and companion animals; and choline chloride, a nutrient for monogastric animal health. The company's Specialty Products segment offers ethylene oxide primarily for use in the health care industry; and single use canisters with ethylene oxide for sterilizing re-usable devices. It also sells propylene oxide, a fumigant to aid in the control of insects and microbiological spoilage, as well as to reduce bacterial and mold contamination in shell and processed nut meats, processed spices, cacao beans, cocoa powder, raisins, figs, and prunes; and chelated minerals for high value crops. The company's Industrial Products segment provides choline chloride derivatives for hydraulic fracturing of shale natural gas wells; and methylamines, which are building blocks for the manufacture of choline products, as well as used in industrial applications. The company sells its products through sales force, independent distributors, and sales agents. Balchem Corporation was founded in 1967 and is headquartered in New Hampton, New York.

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>>> Sherwin-Williams: Minneapolis 'Like a second headquarters' after Valspar deal


By Mark Reilly

St. Paul Business Journal

Nov 12, 2018



https://finance.yahoo.com/m/93f8f70e-2d42-3858-9de1-5767feb14616/sherwin-williams%3A-minneapolis.html


Minneapolis may have lost a corporate headquarters when The Valspar Corp. was snapped up by the Sherwin-Williams Co. more than a year ago, but the paint giant is making the city a big part of its merged operations.

That's the takeaway from a Star Tribune report, which notes that Cleveland-based Sherwin-Williams (NYSE: SHW) has consolidated research and development work in Minneapolis, moving laboratory jobs here from a Chicago office. All told, five of the company's businesses are based at Valspar's former headquarters on the edge of downtown Minneapolis.

“Minneapolis is like our second headquarters,” said a Sherwin-Williams spokesman, adding that the company has also added information-technology jobs here.

Sherwin-Williams doesn't detail total jobs, however, and much of Valspar's administrative and headquarters jobs — from assistants to lawyers to the C-Suite — have been moved away since the merger closed in July 2017.

Still, even a big R&D hub is a lot better than some had worried about in the wake of the $11.3 billion deal for Valspar, even though Sherwin Williams said it planned to retain a presence here.

RELATED: Valspar loss will leave a mark

Among the businesses that Sherwin-Williams has kept in Minneapolis is its industrial coatings unit — a big business for Valspar that goes beyond basic paints into manufacturing techniques used in food packaging. Other businesses based here include coil coatings, protective/marine coatings and colorants, as well as a blending facility in Edina.

The company also notes that it's kept up Valspar's community ties to local nonprofits like Twin Cities Habitat for Humanity and Hearts and Hammers.

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>>> PPG Industries, Inc. manufactures and distributes a range of coatings and specialty materials. The Company has two segments: Performance Coatings and Industrial Coatings. The Performance Coatings segment includes the refinish, aerospace, protective and marine, architectural businesses. The Industrial Coatings segment includes the automotive original equipment manufacturer (OEM), industrial coatings, packaging coatings, coatings services and specialty coatings and materials businesses. The Company's geographical segments include the United States, Canada, Western Europe, Latin America, Central and Eastern Europe, the Middle East, Africa and Asia Pacific. The Company's brands include PPG, GLIDDEN, COMEX, OLYMPIC, DULUX, SIKKENS, PPG PITTSBURGH PAINTS, MULCO, FLOOD, LIQUID NAILS, SICO, CIL, RENNER, TAUBMANS, WHITE KNIGHT, BRISTOL, HOMAX, DEKORAL, TRILAK, GORI, and BONDEX, among others. <<<

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>>> The Sherwin-Williams Co. engages in the manufacture and trade of paint and coatings. It operates through the following segments: Paint Stores Group; Consumer Group; Global Finishes Group and Latin America Coatings Group; and Administrative. The Paint Stores Group segment develops and sells architectural paint, coatings, and product finishes. The Consumer Group segment produces and distributes paint products to third-party consumers. The Global Finishes Group segment licenses, manufactures, and markets protective and marine materials, automotive finishes, and refinish products. The Latin America Coatings Group segment offers aerospace, automotive, marine, and protective coatings. The Administrative segment refers to the firm's corporate expenses and activities. The company was founded by Henry Sherwin and Edward Williams in 1866 and is headquartered in Cleveland, OH. <<<

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>>> Balchem Corporation Sees Steady Health and Nutrition Growth


Industrial products are still struggling, but health and nutrition is a steady performer for Balchem Corporation.



http://www.fool.com/investing/2016/11/08/balchem-corporation-sees-steady-health-and-nutriti.aspx?source=yahoo-2&utm_campaign=article&utm_medium=feed&utm_source=yahoo-2



Travis Hoium


Nov 8, 2016 at 10:00AM



Healthy Eating

Nutrition is driving Balchem Corporation's results right now. Image source: Getty Images.

The diverse business Balchem Corporation (NASDAQ:BCPC) has built the ability to offset a bad business segment with one or two that are performing well. In the third quarter of 2016, one really bad segment was offset by three that performed very well. And that left investors with relatively flat results. Here's what you should know about the quarter.

Balchem Corporation results: The raw numbers



Metric


Q3 2016


Q3 2015 Actuals


Growth (YOY)



Sales

$138.5 million

$140.1 million

(1.2%)


Adjusted net earnings

$19.5 million

$19.4 million

0.3%


Adjusted earnings per share

$0.61

$0.61

N/A


YOY = Year over year.

What happened with Balchem Corporation this quarter?

The business overall looks fairly stagnant, but the underlying business segments tell a very different story. Broadly, nutrition and health products are improving slowly, but they're being offset by weakness in industrial products. Here are the highlights:
•Human nutrition and health revenue rose 2.7%, to $74.9 million, in the quarter, but earnings from operations fell $1.1 million, to $10.5 million. Lower sales volumes from the powder systems business led to most of the decline in earnings.
•Animal nutrition and health revenue rose 2.5%, to $40.9 million, and earnings from operations rose 20.6%, to $6.8 million. The business saw a 6.6% increase in volume, offset slightly by a decline in sales prices.
•Specialty products was the biggest bright spot, with revenue up 19.2%, to $16.5 million, while adjusted earnings from operations rose 2.4%, to $6.3 million.
•The industrial products segment continues to struggle, with low oil and natural gas prices resulting in less fracking in the U.S. Revenue fell 53.9%, to $7.2 million, and earnings from operations dropped from $1.1 million a year ago to just $0.5 million.
•$25.8 million of principal payments, including early payments, were made on the company's debt.


What management had to say

CEO Ted Harris pointed to Balchem's ability to expand margins and pay down debt as signs the business is slowly improving. And the industrial business is now so small that it'll be less and less of a drag on the top line going forward. That could mean Balchem's top line will return to growth in the near future.

Looking forward

The two things to watch in the future are the top-line sales figure, which may come under pressure due to the slow growth of the economy right now. Another way the company can add value is by expanding margins. Gross margin increased from 30.8% a year ago to 32.2% in the quarter, and if the trend continues, it'll help the bottom line and could give the stock a jolt.

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>>> Amyris Reports Second Quarter 2016 Results



http://investors.amyris.com/releasedetail.cfm?ReleaseID=983049



Strongest Operational Execution to Date while Successfully Moving the Business Beyond Biofuels

•Q2 2016 GAAP revenues of $9.6 million (non-GAAP revenues of $12.4 million), led by product sales growth of 47% over Q2 2015 without any fuel sales

•Largest ever quarter for signing number of new collaborations, including agreements with Givaudan, Ginkgo Bioworks, the Bill & Melinda Gates Foundation, and Janssen Biotech, combined with the recently announced collaboration with Biogen. These collaborations have already delivered over $20 million in payments and are expected to significantly increase revenues in the second half of 2016
•Reduced selling, general and administrative expenses by 21% quarter over quarter

EMERYVILLE, Calif., Aug. 04, 2016 (GLOBE NEWSWIRE) -- Amyris, Inc. (Nasdaq:AMRS), the industrial bioscience company, today announced financial results for the second quarter ended June 30, 2016.

"We're very pleased with reaching our best ever quarter of signing new collaborations that have already funded more than $20 million of payments this year and are expected to more than underpin our full year targets," said John Melo, Amyris President & CEO. "We are encouraged by these results and our success in delivering on our stated milestones and goals thus far this year. Additional progress in the coming months is anticipated to further grow our customer base, improve our balance sheet and further position the company as the leader in industrial biotechnology."

Key Highlights

Other key operating and development highlights during the second quarter and more recently included:
•Entered into an Initial Strategic Partnership Agreement with Ginkgo Bioworks to accelerate commercialization of bio-based ingredients and establish clear leadership in industrial biotechnology with a combined offering that we consider unparalleled. In connection with the agreement, a license fee of $15 million was paid on July 25, 2016, to Amyris in exchange for use of certain Amyris technology and the parties agreed to pursue the negotiation and execution of a definitive partnership agreement that includes significant value sharing. The partnership is expected to deliver more new ingredients into the global market over the next three years than the entire industry has achieved in the last 10 years. Upon executing the definitive partnership agreement in the next several weeks, an amendment extending the maturity of our senior secured debt facility to 2019, and eliminating monthly principal repayments and cash covenants will be closed.
•Announced multi-year, multi-million-dollar collaboration in cosmetic active ingredients with Givaudan to engineer and produce cosmetic active targets for global commercialization by Givaudan.
•Began commercialization of novel fragrance product with Takasago International Corporation.
•Jointly announced with Cathay Pacific a two-year biojet agreement supporting continued strong farnesene demand and the future of sustainable air travel; initial flight on May 12, 2016 using the biojet blend was the longest flight using a renewable jet fuel to date. This fuel is supplied through the Amyris Total partnership that is dedicated to making BioJet an industrial reality.
•Announced American Refining Group's (‘ARG') 33.3% equity investment in Novvi LLC, a joint venture of Amyris and Cosan S.A., enabling market access and acceleration in revenue growth of Novvi's high performance, sustainably sourced, renewable lubricants.
•Entered into research agreement with commercial license option with Janssen Biotech, facilitated by Johnson & Johnson Innovation, to use Amyris's µPharm™ platform for rapid integrated discovery and production of therapeutic compounds thereby opening a new area of compounds previously not accessible for new drug discovery.
•Announced partnership with Biogen, Inc. to develop alternative cell lines supporting production of therapeutics, marking second major partnership in biopharma market, which is now positioned to become Amyris's largest opportunity for collaborations.

Financial Performance

Second Quarter 2016
•Revenues for second-quarter 2016 were $9.6 million, compared with $7.8 million for the second quarter of 2015. The increase from the second quarter of 2015 was driven by a 47% increase in product sales, largely in our personal care segment. Collaboration and grants revenues contributed approximately half of the total revenues for the quarter, which was consistent with the same quarter of 2015. Product revenue for the second quarter of 2016 was $4.9 million, up from $3.3 million for Q2 2015 driven by the shipment of a new novel fragrance product, as well as Neossance® Squalane sales. Contracts signed in the quarter delivered over $20 million in payments year to date
•Q2 2016 selling, general and administrative expenses of $11.4 million, which was a decline of 21% from Q2 2015, reflecting the ongoing actions taken to reduce operating expenses.
•Net loss attributable to Amyris common stockholders for the second quarter of 2016 was $13.6 million, or $0.06 per basic share. Included in the calculation of net loss were several non-cash related items, including a gain from changes in fair value of embedded derivatives. Adjusted net loss, excluding this item, and excluding stock-based compensation, was $32.7 million, or $0.15 per basic share.
•Free Cash Flow for the second quarter of 2016 was -$17.4 million, an improvement over -$28.8 million for the second quarter of 2015, driven by collaboration inflows, as well as higher product sales, gross margins, and lower costs.
•Closed on a $5 million equity investment from the Bill & Melinda Gates Foundation to support the development of a lower cost semi-synthetic artemisinic acid to drive lower cost malaria treatments in emerging markets.
•Closed on a $10 million convertible note and a $5 million senior secured loan with existing investors.

First Half 2016
•Revenues for the first half of 2016 were $18.4 million, compared with $15.7 million for the same period last year. The increase was driven by a 47% increase in product sales led by our personal care business, mainly within Flavors & Fragrances. Collaboration and grant revenues contributed $10.3 million to total revenues for the period, which was flat with the same period in 2015.
•Net loss attributable to Amyris common stockholders for the six months ended June 30, 2016 was $28.9 million, or $0.13 per basic share. This compared with a net loss for the same period of 2015 of $99.4 million, or $1.25 per basic share.

FINANCIAL RESULTS AND NON-GAAP INFORMATION

Condensed consolidated financial information has been presented in accordance with GAAP as well as on a non-GAAP basis. Management believes that it is useful to supplement its GAAP financial statements with this non-GAAP information because management uses such information for its operating, budgeting and financial planning purposes. These non-GAAP financial measures also facilitate management's internal comparisons to Amyris's historical performance as well as comparisons to the operating results of other companies. Management believes these non-GAAP financial measures are useful to investors because they allow for greater transparency into the indicators used by management as a basis for its financial and operational decision-making.

Adjusted net loss is calculated by taking GAAP net loss and excluding stock-based compensation and gains and losses from changes in fair value of derivatives and debt extinguishment.

Non-GAAP revenue represents GAAP product revenue plus the cash received from collaborations. Non-GAAP revenue is calculated using GAAP revenues and adding the related changes in accounts receivable and deferred revenue related to revenue recognized for these collaborations and grants to equal funds received during the period, along with any funding associated with collaborations.

Non-GAAP financial information is not prepared under a comprehensive set of accounting rules and therefore, should only be read in conjunction with financial information reported under U.S. GAAP in order to understand Amyris's operating performance. A reconciliation of the non-GAAP financial measures presented in this release, including non-GAAP net loss, non-GAAP revenue, and other measures, is provided in the tables attached to this press release.

QUARTERLY CONFERENCE CALL TODAY

Amyris will discuss these results and provide a business update in a conference call scheduled for 4:30 p.m. ET (1:30 p.m. PT) today. Investors may access the call by dialing [phone], participant passcode: 49059751.

A live audio webcast of this conference call and accompanying presentation is also available by visiting the investor relations section of the company's website at http://investors.amyris.com. A replay of the webcast will be available at the investor relations section of the company's website approximately two hours after the conclusion of the call.

About Amyris
Amyris is the integrated renewable products company that is enabling the world's leading brands to achieve sustainable growth. Amyris applies its innovative bioscience solutions to convert plant sugars into hydrocarbon molecules, specialty ingredients and consumer products. The company is delivering its No Compromise® products in focused markets, including specialty and performance chemicals, fragrance ingredients, and cosmetic emollients. More information about the company is available at www.amyris.com.

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The Amyris chart looks interesting. Key resistance at .50 cents, then the band from .50-.60 and then could possibly work its way back up to 1.00 (based on the chart). Nice volume coming in yesterday.


>>> Amyris, Inc. provides various alternatives to a range of petroleum-sourced products worldwide. The company uses its industrial bioscience technology to design microbes primarily yeast, as well as to convert plant-sourced sugars into renewable hydrocarbons. It produces and sells Biofene that converts to squalane, which is used as an emollient in cosmetics and other personal care products; and natural oils and aroma chemicals for the flavors and fragrances market. The company also provides renewable solvents, polymers, and renewable lubricants for industrial applications; and renewable fuels for transportation fuels market. It has a collaboration partnership with Total S.A. to produce and commercialize Biofene-based diesel and jet fuels. The company was formerly known as Amyris Biotechnologies, Inc. and changed its name to Amyris, Inc. in June 2010. Amyris, Inc. was founded in 2003 and is headquartered in Emeryville, California. <<<



Amyris has a new way to produce the precursor for an important anti-malarial drug -



https://amyris.com/product-category/health-nutrition/



>>> Malaria Treatment

Amyris’s first major milestone came in 2005 when, through a grant from the Bill & Melinda Gates Foundation, our scientists developed technology capable of creating microbial strains to produce artemisinic acid — a precursor of artemisinin, an effective anti-malarial drug.

Artemisinin-based Combination Therapies (ACTs), are recommended by the World Health Organization (“WHO”) as the primary first-line treatment for malaria and have saved thousands of lives, especially among children.

Prior to Amyris's revolutionary breakthrough, the primary natural source for artemisinin was the Chinese Sweet Wormwood plant, which is difficult, expensive and time-consuming to cultivate and extract artemisinin from thereby preventing millions of people in the developing world from receiving critical ACTs. Through the partnership, Amyris made available artemisinic acid-producing yeast strains to Sanofi on a royalty-free basis via OneWorld Health and approximately 120 million treatments were cost effectively produced by October 2014.

Amyris continues to work to ensure access to affordable malaria treatments to save lives. In April 2016, the company announced that it was once again partnering with the Foundation via an investment from it to fund efforts focused on continued production of high-quality and secure supplies of artemisinic acid and amorphadiene to be converted to artemisinin for use in ACTs.

To find out more about this major breakthrough in the original development of artemisinin by leveraging microbial engineering and process development please visit the scientific journal, Nature. <<<



Fwiw I also see the Amyris website prominently displays the one-eyed Illuminati symbol -

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>>> WD-40 Company develops and sells maintenance products, and homecare and cleaning products. It offers multi-purpose maintenance products, including aerosol sprays, non-aerosol trigger sprays, and in liquid form under the WD-40 Multi-Use brand for various consumer uses; and specialty maintenance products that comprise penetrants, degreasers, corrosion inhibitors, lubricants, and rust removers under the WD-40 Specialist brand name. The company also provides products under the WD-40 Bike product brand consisting of wet and dry chain lubricants, heavy-duty degreasers, foaming wash, and frame protectants for avid cyclists, bike enthusiasts, and mechanics; multi-purpose drip oils and spray lubricant products, as well as other specialty maintenance products under the 3-IN-ONE brand; and professional spray maintenance products and lubricants for the bike market under the GT85 brand. In addition, it offers liquid mildew stain removers and automatic toilet bowl cleaners under the X-14 brand; automatic toilet bowl cleaners under the 2000 Flushes brand; and a range of room and rug deodorizers sold as powder, aerosol quick-dry foam, and trigger spray products under the Carpet Fresh brand. Further, the company provides aerosol carpet stain removers, and liquid trigger carpet stain and odor eliminator under the Spot Shot brand; carpet and household cleaners, and rug and room deodorizers under the 1001 brand; and hand cleaner products under the Lava and Solvol brand names. It offers products primarily through mass retail and home center stores, warehouse club stores, grocery stores, hardware stores, automotive parts outlets, sport retailers, independent bike dealers, and industrial distributors and suppliers in the Americas, Europe, the Middle East, Africa, and the Asia-Pacific. The company was founded in 1953 and is headquartered in San Diego, California. <<<

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>>> Balchem Corporation develops, manufactures, and markets specialty performance ingredients and products for the food, nutritional, feed, pharmaceutical, and medical sterilization industries in the United States and internationally. The company operates in three segments: SensoryEffects, Animal Nutrition & Health, and Specialty Products. The SensoryEffects segment provides creamer systems, dairy replacers, powdered fats, nutritional beverage bases, beverages, juice and dairy bases, chocolate systems, ice cream bases and variegates, ready-to-eat cereals, grain based snacks, and cereal based ingredients; and microencapsulation solutions for various applications, including food, pharmaceutical, and nutritional ingredients. This segment also produces and markets human grade choline nutrient products for use in wellness applications. The Animal Nutrition & Health segment offers microencapsulated products that enhance health and milk production in ruminant animals; choline chloride, an essential nutrient for monogastric animal health that is used in poultry, pet, and swine industries; and methylamines, which acts as building block for the manufacture of choline products, as well as used for a range of industrial applications. The Specialty Products segment offers ethylene oxide primarily for use in the health care industry; and single use canisters with ethylene oxide for sterilizing re-usable devices. This segment also sells propylene oxide, a fumigant to aid in the control of insects and microbiological spoilage; to reduce bacterial and mold contamination in shell and processed nut meats, processed spices, cacao beans, cocoa powder, raisins, figs, and prunes; and to customers seeking smaller quantities and whose requirements include utilization in various chemical synthesis applications. The company sells its products through its sales force, independent distributors, and sales agents. Balchem Corporation was founded in 1967 and is headquartered in New Hampton, New York. <<<