Air Products and Chemicals Inc.
) announced that it has signed a contract with Jinxin Glass in
Jiyuan, located in Henan Province in China, to supply its
integrated oxy-fuel solution. The supply of integrated fuel oxygen
to Jinxin will help in reducing emissions in its glass melting
process by substituting it with the conventional air-fuel
combustion. Therefore, with this agreement, Jinxin will be able to
adhere to the local government's emissions regulations.
Jinxin uses coal oven gas for manufacturing pharmaceutical
borosilicate glass. Tying up with Air Products will enable Jinxin
to cater to the strict environmental regulations while improving
the productivity and quality of its glass production.
The integrated oxy-fuel solution includes the supply of Cleanfire
HRi oxy-fuel burners and a PRISM vacuum swing adsorption (VSA)
oxygen generator, which will supply reliable and economical oxygen.
Air Products will not only enter Henan in Central China but will
also cater to the needs of the glass industry in China. The company
has also signed contracts with other borosilicate and fiberglass
manufacturers in the southern and eastern parts of China to supply
integrated oxy-fuel solutions.
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, which was 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 profit was attributable to lower
costs and one-time gains, which more than offset the impact of
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
), has a short-term Zacks #3 Rank (Hold) currently and we have a
long-term Neutral recommendation on its shares.
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