Specialty chemical company
Air Products & Chemicals Inc.
) announced that its Taiwanese subsidiary Air Products San Fu Co.
plans to increase production capacity of ultra high-purity (UHP)
nitrogen and expand its nitrogen pipeline for the electronics
industry in Tainan Science-Based Industrial Park (TSIP) in
Tainan, Taiwan and Tree Valley Science and Industry Park (TVSIP),
located beside TSIP. The company also plans to construct addition
two air separation units to serve the area.
With the expansion of the nitrogen facility, the company will be
able to provide reliable and cost effective supply of UHP
nitrogen to its customers and better serve the growing merchant
needs in the area.
The local subsidiary, Air Products San Fu, has established a
leading supply position in TSIP, and its nitrogen pipeline in the
park has been serving semiconductor and TFT-LCD manufacturers in
the area since 2002. Currently, the pipeline is fed by three of
the world's largest UHP nitrogen facilities that also serve the
local merchant liquid bulk market.
Air Products provides atmospheric, process and specialty
gases; performance materials; equipment; and technology products.
Last month, the company released its fourth quarter and fiscal
2012 results. It logged adjusted earnings from continued
operations of $1.42 a share for the quarter ended September 30,
2012, missing the Zacks Consensus Estimate by a couple of
Consolidated net income, as reported, plunged 57% year over
year to $138.7 million or 65 cents a share, pummeled by hefty
one-time charges. The company reported a profit of $324.8 million
or $1.51 a share a year ago.
Revenues rose 4% to $2,606 million, beating the Zacks
Consensus Estimate of $2,574 million. The revenue growth was
attributable to higher volumes in the Tonnage Gases, Equipment
and Energy, and Electronics and Performance Materials divisions
as well as sales increases due to acquisitions, partly offset by
the impact of unfavorable currency. The company witnessed
sluggish manufacturing activity in the quarter.
For fiscal 2012, adjusted earnings of $5.40 a share missed the
Zacks Consensus Estimate of $5.42 but exceeded the year-ago level
of $5.36. Sales for the year edged down 1% year over year to
$9,612 million, but beat the Zacks Consensus Estimate of $9,577
For fiscal 2013, Air Products plans to take a number of steps
including execution of its new Tonnage investments and sustained
improvement in its Electronics and Performance Materials unit to
attain better productivity.
The company expects that its recent strategic moves will act
favorably for future growth and profitability despite the weak
Air Products anticipates earnings per share between $5.65 and
$5.85 for fiscal 2013 and $1.26 and $1.31 for the first quarter
of fiscal 2013. The company also expects capital expenditures
between $2 billion and $2.2 billion for the year.
Air Products, which competes with
), currently holds a short-term (1 to 3 months) Zacks #4 Rank
(Sell) and we have a long-term (more than 6 months) Underperform
recommendation on the stock.
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