Air Products & Chemicals Inc. APD announced the completion of the divestment of its liquefied natural gas (LNG) process technology and equipment business to Honeywell for $1.81 billion in cash. All closing conditions of the transaction, which was first announced in July 2024, have been met. All regulatory approvals have been received as well.
The sale of the LNG process technology and equipment business is strategic, reflecting Air Products' profound commitment to its two-pillar growth strategy. The strategy seeks to profitably grow its core industrial gases and related equipment businesses and deliver clean hydrogen at scale to decarbonize the industrial and heavy-duty transportation sectors. Air Products stated that the LNG business is at its peak, owing to a dedicated team, and it will flourish within Honeywell's portfolio.
Honeywell currently provides a pre-treatment solution for LNG customers globally. Air Products' LNG process technology and equipment division will broaden its offering, including the design and production of coil-wound heat exchangers (CWHE) and related equipment. CWHEs provide high natural gas throughput in a small footprint while operating reliably and safely onshore and offshore.
The transaction successfully transferred related assets, manufacturing capabilities and personnel associated with the LNG process technology and equipment business to Honeywell, including roughly 475 workers and the CWHE manufacturing site in Port Manatee, FL.
Shares of Air Products have gained 6.7% over the past year compared with its industry’s 6.1% growth.
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Air Products, on its fiscal third-quarter call, maintained its fiscal 2024 full-year projected adjusted earnings per share (EPS) range of $12.20-$12.50, indicating a 6-9% increase from the previous year. The company’s adjusted EPS guided range for the fiscal fourth quarter is $3.33-$3.63. Air Products expects capital expenditure to be in the range of $5-$5.5 billion in fiscal 2024.
Air Products and Chemicals, Inc. Price and Consensus
Air Products and Chemicals, Inc. price-consensus-chart | Air Products and Chemicals, Inc. Quote
Zacks Rank & Key Picks
APD currently carries a Zacks Rank #3 (Hold).
Better-ranked stocks in the basic materials space are Carpenter Technology Corporation CRS, Eldorado Gold Corporation EGO and Hawkins, Inc. HWKN.
Carpenter Technology currently sports a Zacks Rank #1 (Strong Buy). CRS beat the Zacks Consensus Estimate in the last four quarters, with the average earnings surprise being 15.9%. The company's shares have soared 139.7% in the past year. You can see the complete list of today's Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Eldorado’s current-year earnings is pegged at $1.40 per share, indicating a year-over-year rise of 145.6%. The consensus estimate for current-year earnings has gone up in the past 30 days. EGO, which currently carries a Zacks Rank #2 (Buy), beat the consensus estimate in the last four quarters, with the average earnings surprise being 430.3%. The company's shares have gained roughly 106% in the past year.
The Zacks Consensus Estimate for Hawkins’ current fiscal-year earnings is pegged at $4.14 per share, indicating a rise of 15.3% from the year-ago level. The consensus estimate for current fiscal-year earnings has increased 12.8% in the past 60 days. HWKN, which currently carries a Zacks Rank of 2, has gained around 111.6% in the past year.
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