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 Oct 1, 2013, or as per the contracts.
The price increase is expected to be up to 12% for liquid
oxygen, liquid nitrogen, and liquid carbon dioxide. The price for
liquid argon, liquid and bulk hydrogen, and bulk carbon monoxide
is expected to rise by 20%. The pricing adjustments for liquid
and bulk helium will be determined on a contract by contract
basis. However, some price revisions may be kept out of these
ranges depending on some specific situations.
The price hike was attributable to various supply and demand
product imbalances, which resulted in higher costs and higher
operating expenses such as employee labor and benefits, natural
gas and energy, and maintenance.
Air Products, on Jul 23, logged third-quarter fiscal 2013
(ended Jun 30, 2013) earnings from continued operations of $1.36
a share. The results were at par with the Zacks Consensus
Estimate, but dropped from the year-ago earnings of $1.66 (or
$1.41 per share as adjusted).
Productivity and strong execution of plans, which offset the
continued economic weakness, helped Air Products to deliver
earnings within guidance. However, net income from continuing
operations decreased 19% year over year to $287.8 million.
Revenues rose 9% year over year to $2,547.3 million, beating the
Zacks Consensus Estimate of $2,543 million. Acquisitions and
higher energy cost pass-through boosted sales. Underlying sales
declined 2% due to Air Products' previously announced decision to
exit the Polyurethane Intermediates business.
Air Products' healthy project backlog strongly positions it to
achieve its long-term growth target. Given its leading position
in the gas business, the company is well positioned to capitalize
on the cyclical recovery in its core industrial end markets.
Air Products currently maintains a Zacks Rank #3 (Hold).
Other companies in the chemical industry having favorable
Zacks Rank are
Cytec Industries Inc.
Eastman Chemical Co.
Akzo Nobel NV
). All of them retain a Zacks Rank #2 (Buy).
AKZO NOBEL NV (AKZOY): Get Free Report
AIR PRODS & CHE (APD): Free Stock Analysis
CYTEC INDS INC (CYT): Free Stock Analysis
EASTMAN CHEM CO (EMN): Free Stock Analysis
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