Univar (UNVR) extends distribution agreement with Calumet – July 15, 2022
Univar Solutions Inc.it is (UNVR – Free Report), Univar BV, has announced the extension of its distribution agreement with Calumet Specialty Products for the latter’s range of naphthenic and paraffinic base oils throughout Europe. Univar customers across Europe can now access more Calumet products with a wide range of viscosity and solvency characteristics in the lubricants, greases, metalworking fluids and adhesives markets.
The new agreement extends an existing relationship built around white oil and petrolatum product portfolios across Europe and North America. It includes premium brands Calpar, Hydrocal and Calsol. Univar can now supply a wide range of specialty base oils for the lubricant and metalworking fluid markets while providing Calumet with a reliable, technical and market-leading partner.
Univar said it is pleased to expand its long-standing relationship with Calumet to provide lubricants and metalworking fluid customers greater access to packaged and bulk naphthenic base oils. Its product portfolio includes a wide range of specialty components and additives as well as mineral and synthetic base oils and solvents, which will help customers meet demand and develop next-generation products, the company noted. .
Shares of Univar have fallen 0.3% over the past year against an industry decline of 13.3%.
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In its latest earnings call, Univar said it expects adjusted EBITDA for the second quarter of 2022 to be $270 million to $290 million. For 2022, adjusted EBITDA is expected to be between $1,000 and $1,050 million. The guidance takes into account expected strong business conditions, market share growth and net synergy benefits from the acquisition of Nexeo.
The company also forecasts 2022 net free cash flow in the range of $400 million to $450 million.
Univar benefits from market share gains, operational execution, cost minimization and a strong liquidity position. Chemical price inflation and rising industrial demand also contributed to its sales growth. Univar also focuses on cost reduction, expense management and productivity actions, helping the company minimize operational costs and increase margins.
Zacks ranking and key picks
Univar currently carries a Zacks rank #4 (sell).
Some top-ranked stocks in the base materials space are Albemarle Society (ALB – free report), Cabot Corporation (CCT – free report) and Allegheny Technologies Inc. (ATI – free report).
Albemarle forecasts a profit growth rate of 231.7% for the current year. The Zacks consensus estimate for ALB’s current-year earnings has been revised up 17.9% over the past 60 days.
Albemarle’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 around 22.5% on average. ALB has gained around 8.9% in one year and currently sports a Zacks rank of No. 1 (Strong Buy). You can see the full list of today’s Zacks #1 Rank stocks here.
Cabot, which currently sports a No. 1 Zacks rank, has an expected earnings growth rate of 22.5% for the current year. The Zacks consensus estimate for CBT earnings for the current year has been revised up 6% in the past 60 days.
Cabot’s earnings have exceeded the Zacks consensus estimate in each of the past four quarters, averaging 16.2%. CBT gained around 17.8% year on year.
Allegheny forecasts a profit growth rate of 1,046.2% for the current year. The Zacks consensus estimate for ATI’s earnings for the current year has been revised up 15.5% in the past 60 days.
Allegheny’s earnings have exceeded the Zacks consensus estimate in each of the past four quarters, averaging 128.9%. ATI gained 12.3% in one year. The company sports a No. 1 Zacks rank.