Specialty chemical company
Air Products and Chemicals Inc.
(
APD
) announced that it has received recognition from The Carbon
Disclosure Project (CDP), which holds the largest database of
corporate climate change information in the world. The CDP has also
added Air Products to the Carbon Disclosure Leadership Index (CDLI)
again, which comprise the top 10% of S&P 500 and Global
500 companies with respect to transparency in climate-related
issues. CDLI recognizes companies that execute strong measures to
reduce greenhouse gas emissions and demonstrate a good
understanding of the business issues related to climatic changes.
Air Products remains upbeat regarding its selection in CDLI for its
transparency and leadership in climatic change disclosures. Energy
efficiency and reduction in emissions are the primary objectives of
the company. The company is also set to increase product offerings
and incorporate advanced technologies, thus enabling its customers
to meet their environmental goals.
Air Products is the world's leading supplier of hydrogen for
processing cleaner burning transportation fuels and hydrogen
infrastructure and fueling technology. The company is also the
leading supplier of liquefied natural gas technology and
equipments. Air Products became the only industrial company to be
listed on Global and S&P 500 CDLI for 2012.
In July 2012, Air Products released its results for fiscal
third-quarter 2012 ended June 30, 2012. The company reported
adjusted (excluding one-time items) earnings from continued
operations of $1.41 a share for the quarter, in line with the Zacks
Consensus Estimate.
Consolidated net income, as reported, surged 48% year over year to
$484.5 million or $2.26 a share compared with $326.5 million or
$1.50 a year ago. The increase in profits was attributable to lower
costs and one-time gains, which more than offset the impact of
lower sales.
Revenues dipped 5% year over year to $2,340.1 million, missing the
Zacks Consensus Estimate of $2,455 million. Challenging conditions
in Europe and Asia as well as unfavorable currency (stemming from a
stronger dollar) weighed on the company's top line in the
quarter.
Air Products' healthy project backlog and solid bidding activity
strongly positions it to achieve its long-term growth target. Given
its leading position in the gases business, the company is well
positioned to capitalize on the cyclical recovery in its core
industrial end markets. Further, new business deals are expected to
boost profits in 2012. However, soaring energy and raw material
costs pose a threat to margin expansion.
Air Products, which competes with
Praxair Inc.
(
PX
), has a short-term Zacks #3 Rank (Hold) currently and we have a
long-term Neutral recommendation on its shares.
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