Chase Corporation | $CCF Stock | Third-Quarter Profit and Revenue Spike

chase corporation

Chase Corporation (NYSE: CCF)


Chase Corporation investors are expected to keep an eye on CFF stock on Friday, following the release of its third-quarters earnings.

In the final minutes of trading on Thursday, shares hit $120.30, a rise of 1.65, or 1.39%.

The specialty chemicals company announced solid revenue and profit figures that are likely to impact the performance of its shares, as the week comes to a close.

CCF Earnings

chase corporation stock chart

The company reported a net income of $13.54 million, up 14%, from $11.86 million posted in the third quarter of 2017. Revenue was $78.92 million, up 22%, from $64.90 million in the year ago period.

Earnings per diluted share increased by 17 cents to $1.43, from $1.26. Adjusted for one-time items, earnings per share came in at $1.32, an increase of 28%, from $1.03 last year.

Chase Corporation CEO Comments

The President and Chief Executive Officer of Chase Corporation, Mr. Adam P. Chase said, “Strong sales growth, both organic and inorganic, defined our third fiscal quarter, but so too did the effects of rising raw material prices and their continued pressure on margins in certain areas. We also continued to experience a comparatively less favorable product mix in the period, further curtailing results. Our second quarter acquisition, Zappa Stewart, delivered on the top and bottom lines, producing margins accretive to our relative average.”

The CEO continued, “Despite contracted margins on a percentage basis, the growth in overall sales volume in the third quarter produced increased operating income over the prior year. Our overall earnings were also aided by the sale of our structural composites rod business in April, which continued our divestment of non-core businesses, while both providing us with a one-time gain and securing a royalty agreement to provide for future cash inflows.”

Chase Corporation Company Profile

Chase Corporation engages in manufacture and sale of protective materials for use in various applications. The company has two segments of operation: Construction Materials and Industrial Materials.

The Construction Materials category offers lining systems and fluid applied coating for use in the water industry; waterproofing membranes for highway bridge deck metal supported surfaces; and control and expansion joint systems for airport runways, roads, stadiums, and bridges.

In addition, it offers protective pipe coating tapes for metals, valves, joints, regulators, concrete, and casings for pipeline companies, oil companies, and gas utilities. Products of this segment are available under the ServiWrap, Royston, Tapecoat, and Rosphalt50 brands.

The Industrial Materials division provides conducting and insulating materials to cable and wire manufacturers; moisture protective products for electronics industry; laminated film foils for local area network and communication cables; and laminated papers for commercial printing and envelope converting industries.

This segment also offers natural gas and water lines, detection and pulling tapes for fiber optic cables, as well as video, power, and data cables. Products of this segment are marketed under the Dualite, Chase & Sons, HumiSeal, PaperTyger, and Chase BLH2OCK brands.

Chase Corporation sells its products through manufacturers’ distributors and representatives, as well as its salespeople. The company was founded in 1946 by Edward L. Chase and Francis M. Chase. Its headquarters are located in Westwood, Massachusetts. –Reuters