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Univar Solutions (UNVR) Expands Global Partnership with Dow

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Univar Solutions Inc.’s subsidiary, Univar Solutions China Limited, recently announced an extension of its relationship with Dow in connection with UCON PAG-based synthetic products in China.

The partnership is expected to boost Univar’s portfolio in China with the addition of Dow's UCON PAG-based synthetic base fluids and highlights Univar’s efforts to grow with its key partners in the Asia Pacific. It reflects Univar Solutions' effort to grow and expand its global footprint in the lubricants and metalworking fluids industry.

Univar stated that with the strength of its global network, it focuses on finding solutions, accelerating innovation and advancing product development for customers in mainland China and China Hong Kong. Through its global team of technical, sales, marketing and application development experts, it is able to holistically serve customers as required in a range of important industries, the company noted.

Shares of Univar have gained 32% in the past year against a 0.9% decline of the industry.

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In its last earnings call, the company stated that it expects adjusted EBITDA for first-quarter 2022 in the range of $260-$280 million. For 2022, adjusted EBITDA is forecast in the band of $860-$890 million. Its adjusted EBITDA was $797.7 million in 2021. The company also sees net free cash flow for 2022 in a range of $430-$445 million.

Univar also expects to achieve the targeted $120 million in annual net synergies from the Nexeo acquisition by early 2022 and anticipates continued strong liquidity.

 

Zacks Rank & Other Key Picks

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

Some other top-ranked stocks in the basic materials space are The Mosaic Company (MOS - Free Report) , AdvanSix Inc. (ASIX - Free Report) and Allegheny Technologies Incorporated (ATI - Free Report) .

Mosaic has a projected earnings growth rate of 131.2% for the current year. The Zacks Consensus Estimate for MOS' current-year earnings has been revised 32.7% upward in the past 60 days.

Mosaic’s earnings beat the Zacks Consensus Estimate in three of the last four quarters while missing once. It delivered a trailing four-quarter earnings surprise of roughly 3.7%, on average. MOS has rallied around 129.2% in a year and currently sports a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.

AdvanSix has a projected earnings growth rate of 64.8% for the current year. The Zacks Consensus Estimate for ASIX’s current-year earnings has been revised 58% upward in the past 60 days.

AdvanSix’s earnings beat the Zacks Consensus Estimate in three of the trailing four quarters, the average being 23.6%. ASIX has surged 72.6% in a year. The company sports a Zacks Rank #1.

Allegheny, currently sporting a Zacks Rank #1, has an expected earnings growth rate of 684.6% for the current year. The Zacks Consensus Estimate for ATI's earnings for the current year has been revised 20% upward in the past 60 days.

Allegheny’s earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, the average being 127.2%. ATI has rallied around 26% over a year.


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