Industrial-gas company Air Products and Chemicals Inc. ( APD ) recently said that it will showcase its proprietary oxygen injection technologies at the forthcoming IEEE-IAS/PCA cement industry conference scheduled to be held in San Antonio, Texas, from May 13-17.
Cement makers looking to improve combustion and reduce costs can visit Air Products' booth, at the IEEE-IAS/PCA conference, to get an insight into the benefits of the company's oxygen injection technology, which can be set up by specialists at various pyroprocessing (an energy-intensive process in cement manufacturing) zones.
Air Products' flexible, cost-effective oxygen enrichment technology helps cement manufacturers to improve the profitability of operations by implementing oxygen-enhanced combustion. It allows the manufacturers to boost cement production by 5%-30%, increase alternative fuel usage by 30%-80% while reducing emissions.
Air Products offers industrial gases as well as a variety of polymer and performance chemicals and serves technology, energy, industrial and health care customers globally. The company competes with Praxair Inc. ( PX ) among others.
Air Products has been offering oxygen-based combustion technologies for more than five decades, helping manufacturers boost production rates, curb energy consumption, lower emissions while reducing overall operational costs. The company's state-of-the-art lab in Allentown, Pennsylvania, facilitates development and testing of combustion and gasification systems using a comprehensive range of gaseous, liquid and solid fuels from customers.
Air Products benefits from a long-term take-or-pay contract, a consolidated industry structure, diverse customer base and sustained pricing power. However, soaring energy and raw material costs pose a threat to margin expansion.
The company's profit fell nearly 3% year over year in the most recent quarter. Sales dipped 2% due to lower volumes, reflecting challenging conditions in Europe.
Air Products anticipates that both revenues and earnings will rise during the remainder of 2012 as well as in 2013. New business deals are also expected to boost growth this year. We are currently Neutral on Air Products. The stock retains a short-term Zacks #5 Rank (Strong Sell).