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Air Products (APD) to Launch Fluxless Soldering Technology

Air Products and Chemicals Inc.APD is set to unveil a break-through fluxless soldering technology that uses electron attachment ("EA") technology for wafer level packaging at the IPC APEX Expo, to be held from Feb 27-Mar 1 in San Diego, CA.

The EA technology enhances bump reflow quality due to flux induced solder voids and wafer contaminations that naturally disappear. It is also known for improving productivity from in-line process capability, which lessens or eliminates post wafer cleaning and furnace downtime for cleaning.

The EA technology has a lower cost of ownership for end users, courtesy of its ability to reduce or eliminate costs associated with cleaning equipment, cleaning solution, labor work and flux. The technology is considered to be an eco-friendly one by the virtue of its lower organic vapor, hazard residues and carbon dioxide emissions.

Air Products has teamed up with Sikama International to offer an electron attachment fluxless reflow system. The furnace has been geared to remove metal oxides from solder bumps on UBM wafers and solder caps from copper pillar wafers with the help of EA technology.

Air Products' shares have moved up 0.8% in the last three months, outperforming the industry 's 0.4% gain.

In first-quarter fiscal 2018, the company reported adjusted earnings of $1.79 per share, up 22% from the year-ago quarter. The bottom line also surpassed the Zacks Consensus Estimate of $1.66. Meanwhile, revenues were $2,216.6 million, up around 18% year over year. The top line outpaced the Zacks Consensus Estimate of $2,159.2 million.

For fiscal 2018, the company anticipates adjusted earnings in the range of $7.15-$7.35 per share, up 13-16% from the prior year. The guidance includes an expected benefit of 20-25 cents per share from the U.S. Tax Cuts and Jobs Act. For the fiscal second quarter, Air Products expects the same in the band of $1.65 to $1.70 per share. Also, it projects capital expenditure of $1.2-$1.4 billion for the current year.

Air Products has built a strong project backlog. These projects are anticipated to be accretive to earnings and cash flow over the next few years. In addition, strategic investments in high-return projects, new business deals and acquisitions are expected to drive results in fiscal 2018. The company also remains on track with its cost-reduction programs, which is likely to support margins.

Air Products and Chemicals, Inc. Price and Consensus

Air Products and Chemicals, Inc. Price and Consensus | Air Products and Chemicals, Inc. Quote

Zacks Rank & Other Stocks to Consider

Air Products currently carries a Zacks Rank #2 (Buy).

Some other top-ranked stocks in the basic materials space are Methanex Corporation MEOH , LyondellBasell Industries N.V. LYB and The Chemours Company CC . All three stocks sport a Zacks Rank #1 (Strong Buy). You can see the complete list of today's Zacks #1 Rank stocks here .

Methanex has an expected long-term earnings growth rate of 15%. Its shares have gained 8.7% over a year.

LyondellBasell has an expected long-term earnings growth rate of 9%. The company's shares have rallied 14.9% in a year.

Chemours has an expected long-term earnings growth rate of 15.5%. Its shares have surged 42.8% over a year.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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