Industrial gas giant
Air Products & Chemicals Inc.
) declared that it will raise the price of its products and
monthly charges for North American merchant customers. The price
hike will be effective May 1, 2013, or as per the contracts.
The price increase is expected to be up to 10% for liquid and
bulk industrial gas products, which include liquid argon, liquid
oxygen, liquid nitrogen, liquid and bulk hydrogen, bulk carbon
monoxide, and liquid carbon dioxide. However, some price
revisions may be kept out of these ranges depending on some
The price hike was attributable to various supply and demand
product imbalances, which resulted in higher costs in nearly
every aspect of producing and delivering industrial gases.
Moreover, Air Products has been affected by higher energy costs
from utility companies and higher distribution expenses.
Air Products, which has annual sales of $9.6 billion, offers
industrial gases as well as a variety of polymer and performance
chemicals and serves technology, energy, industrial and health
care customers globally.
Few days ago, Air Products received an LNG heat exchanger
order from Malaysian integrated oil and gas company Petroliam
Nasional Berhad (PETRONAS) for a major LNG Train 9 project at the
Bintulu facility in Malaysia. As per the deal, Air Products'
SplitMR liquefaction process and technology will be supplied to
the PETRONAS LNG Train 9 Project.
The PETRONAS LNG Train 9 Project is an extension of an already
existing PETRONAS LNG Complex in Bintulu, Sarawak, Malaysia. The
project is expected to produce 3.6 million tons per year (MTPY)
of LNG. The company targets to start its operations by end of
Air Products benefits from a diverse customer base, sustained
pricing power and cost-reduction measures. New business deals and
strategic investments are expected to support its results in
However, volume in Air Products' core Merchant Gases segment
is expected remain under pressure partly due to the recessionary
conditions in Europe. The electronics business may continue to
see weak demand.
Air Products is slated to release its results for
second-quarter fiscal 2013 before the market opens on Apr 23.
Air Products currently holds a short-term Zacks Rank #3
Other companies in the chemical industry that are worth
Eastman Chemical Co.
LyondellBasell Industries NV
). While Olin retains a Zacks Rank #1 (Strong Buy), both Eastman
and LyondellBasell hold a Zacks Rank #2 (Buy).
AIR PRODS & CHE (APD): Free Stock Analysis
EASTMAN CHEM CO (EMN): Free Stock Analysis
LYONDELLBASEL-A (LYB): Free Stock Analysis
OLIN CORP (OLN): Free Stock Analysis Report
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