Univar (UNVR) to Distribute Cabot’s Carbon Black Products – June 1, 2022

Univar Solutions Inc. (UNVR Free Report) has been appointed distributor of Cabot Corporationit is (CCT Free report) specialty carbon black products for the plastics and battery markets in Brazil.

The agreement adds to the companies’ current relationship and will provide customers with innovative materials and solutions that help improve product durability and performance.

Cabot’s specialty carbon black products are used for several applications in the automotive market, including improving the efficiency, durability, performance and life of batteries in hybrid and electric vehicles. In addition to batteries, the utility of carbon black products makes them compatible with other specialty applications such as plastics, consumer electronics and industrial parts, delivering value through various features including color , ultraviolet protection, surface smoothness and conductivity.

Univar said it is confident its customers will benefit from its continued focus on the plastic compounds and battery markets, backed by strong local and technical support and commercial excellence.

Univar shares have gained 11.4% over the past year against an industry decline of 4.3%.

Image source: Zacks Investment Research

In its latest earnings call, the company said it expects adjusted EBITDA for the second quarter of 2022 to be $270 million to $290 million. For 2022, adjusted EBITDA is projected in the range of $1,000 to $1,050 million. The forecast takes into account the expected strong business conditions, market share growth and the benefits of Nexeo’s net synergies. The company also forecasts net free cash flow for 2022 in the range of $400 million to $450 million.

Zacks ranking and other key picks

Univar currently sports a Zacks rank #1 (Strong Buy).

Some other top-ranked stocks in the base materials space are Allegheny Technologies Inc. (ATI free report) and Nutrien Ltd. (RNT free report).

Allegheny forecasts a profit growth rate of 871.2% for the current year. The Zacks consensus estimate for ATI’s earnings for the current year has been revised up 27.3% in the past 60 days.

Allegheny’s earnings have exceeded Zacks’ consensus estimate in each of the past four quarters. It has a surprise on earnings for the last four quarters of about 128.9% on average. ATI has gained about 12.5% ​​in one year and currently sports a #1 Zacks ranking. You can see the full list of today’s Zacks #1 Rank stocks here.

Nutrien forecasts a profit growth rate of 159.7% for the current year. The Zacks consensus estimate for NTR’s current-year earnings has been revised up 25.8% in the past 60 days.

Nutrien’s earnings have exceeded the Zacks consensus estimate in three of the past four quarters, averaging 5.8%. NTR gained 54.3% in one year. The company boasts a No. 1 Zacks rank.

Comments are closed.