Arch Chemicals to recognize $11 million benefit

Arch Chemicals Inc. said Wednesday it expects to recognize an $11 million pretax benefit in the third quarter after the Commerce Department reduced an antidumping duty rate on material it imported from China.

The Commerce Department cut the rate from 76 percent to about 1 percent on chlorinated isocyanurates, or isos, that Arch imported from June 1, 2006, through May 31, 2007.

Arch Chemicals previously had estimated an $8 million benefit expected in the fourth quarter but increased the amount and moved it to the third quarter after the decision was announced.

The Norwalk, Conn.-based company said the additional $3 million will offset lower volumes that its HTH Water Products business experienced in August.

Arch Chemicals will begin paying cash deposits for future imports of isos at the 1 percent rate, which it expects to mitigate higher product costs expected in the upcoming pool season.

Shares of Arch Chemicals rose 42 cents to $35.66 in morning trading.

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On the Net: http://www.archchemicals.com.