Innospec reports Q2 EPS 94c, consensus $1.21

Reports Q2 revenue $439.7M, consensus $433.35M. The company said, “This was a balanced quarter overall for Innospec (IOSP). Our diversified portfolio again benefited from strong growth in Fuel Specialties operating income, offsetting lower results in Performance Chemicals and Oilfield Services. Performance Chemicals delivered strong sales growth with a nine percent increase on the prior year driven by lower margin products. As a consequence gross margins fell short of our expectations. Gross margin improvement is a key priority in Performance Chemicals, and our team remains focused on delivering sequential growth in the coming quarters. We continue to see general customer caution in the short term. In the medium term, we intend to accelerate margin-accretive opportunities across all our end markets. We expect no change in our customers’ drive towards clean, mild and performance-boosting technologies, in which Innospec is exceptionally well placed.”