Air Products & Chemicals Inc.
) will hike prices of select Ancamide, Ancamine, and Sunmide
epoxy curing agents and select Nourybond adhesion promoters
worldwide by up to 20 cents per kilogram. The price hike for
these products will be effective from Jun 1, 2014, or per
The price increase is aimed to recover higher operating and
raw material costs, including the recent price increases of
On Apr 23, Air Products posted its second-quarter fiscal 2014
(ended Mar 31, 2014) results. The company's earnings from
continued operations of $1.32 a share in the quarter were down
roughly 4% from $1.37 a share in the year-ago quarter. The
results also missed the Zacks Consensus Estimate of $1.35 per
Higher underlying volumes and a planned execution of
maintenance outages despite adverse weather conditions helped Air
Products to deliver earnings within the guided range. However,
net income from continuing operations decreased 2% to $283.5
million in the quarter from $289.3 recorded in the last-year
Revenues rose 4% year over year to $2,582 million, beating the
Zacks Consensus Estimate of $2,564 million. Higher energy
pass-through and stronger underlying volumes in the Merchant
Gases as well as the Electronics and Performance Materials
segments boosted sales. Underlying sales, barring the company's
exit from the Polyurethane Intermediates (PUI) business, rose 2%
year over year.
Air Products revised its earnings guidance for fiscal 2014 and
now anticipates earnings from continuing operations to be in the
range of $5.70-$5.85 per share versus its previous guidance of
$5.70-$5.90 per share. For the third quarter, earnings from
continuing operations are expected in the band of $1.42-$1.47 per
share. The company has reaffirmed its capital expenditure
forecast of roughly $2 billion for fiscal 2014.
Air Products expects its strategic actions, including
productivity improvement, better asset utilization, disciplined
project execution and cost management initiatives to drive
earnings in fiscal 2014. The company anticipates stronger
momentum in the second half of the year.
Air Products currently holds a Zacks Rank #3 (Hold).
Other companies in the chemical industry worth considering are
Compass Minerals International Inc.
Kronos Worldwide, Inc.
). While Compass Minerals holds a Zacks Rank #1 (Strong Buy),
both Celanese and Kronos retain a Zacks Rank #2 (Buy).
AIR PRODS & CHE (APD): Free Stock Analysis
CELANESE CP-A (CE): Free Stock Analysis
COMPASS MINERLS (CMP): Free Stock Analysis
KRONOS WORLDWD (KRO): Free Stock Analysis
To read this article on Zacks.com click here.