BASF Sells Styrodur Business to Focus on Expandable Polystyrene

BASF SE BASFY entered into an agreement with Karl Bachl Kunststoffverarbeitung GmbH & Co. KG (“BACHL”) to sell its business with Styrodur, which is an insulation material made from extruded polystyrene (XPS). The sale is a strategic move as BACHL has been one of the leading manufacturers of insulation materials in Germany, an experienced XPS producer and a long-standing Styrodur distribution partner of BASF. The divestment also includes the brand Styrodur.Roughly 50 employees in production, marketing and sales at BASFY are involved in this business. The affected employees will remain with BASFY. The divestment is expected to complete by mid-2025, subject to the clearance of the relevant competition authorities.This sale will allow BASFY to focus its strategy on expandable polystyrene with BASF’s well-known brands, Neopor and Styropor. Growing in the expandable polystyrene market has been a significant goal for BASFY. For this purpose, the company also announced the expansion of Neopor production capacity in Ludwigshafen by 50,000 tons to 250,000 tons per year starting in early 2027.BASFY stock has plunged 13.4% in the past year compared with the 11.4% decline in the industry.Image Source: Zacks Investment ResearchBASFY’s Zacks Rank and Key PicksBASF currently carries a Zacks Rank #5 (Strong Sell).Some better-ranked stocks in the Basic Materials space are Carpenter Technology Corporation CRS, MAG Silver Corp. MAG and Fortuna Mining Corp. FSM. While CRS and MAG sport a Zacks Rank #1 (Strong Buy) each, FSM carries a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.The Zacks Consensus Estimate for Carpenter Technology’s current-year earnings is pegged at $6.77. CRS beat the Zacks Consensus Estimate in each of the last four quarters, with the average earnings surprise being 14.1%. CRS’ shares have soared 175.2% in the past year.The Zacks Consensus Estimate for MAG Silver’s current-year earnings is pegged at 75 cents per share. MAG surpassed the Zacks Consensus Estimate in each of the trailing four quarters, with an average earnings surprise of 17.1%. The stock has gained 42.7% in the past year.The Zacks Consensus Estimate for Fortuna Mining’s current-year earnings is pegged at 53 cents, indicating a year-over-year rise of 118.2%. FSM’s earnings beat the Zacks Consensus Estimate in two of the last four quarters while missing in the other two with an average earnings surprise of 53.6%. The stock has gained 15.6% in the past year. 7 Best Stocks for the Next 30 DaysJust released: Experts distill 7 elite stocks from the current list of 220 Zacks Rank #1 Strong Buys. They deem these tickers "Most Likely for Early Price Pops."Since 1988, the full list has beaten the market more than 2X over with an average gain of +24.1% per year. So be sure to give these hand picked 7 your immediate attention. See them now >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report BASF SE (BASFY): Free Stock Analysis Report Carpenter Technology Corporation (CRS): Free Stock Analysis Report Fortuna Mining Corp. (FSM): Free Stock Analysis Report MAG Silver Corporation (MAG): Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks