Air Products to Exhibit Technologies & Solutions in Toronto

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Air ProductsAPD will exhibit its advanced gas technologies and range of industrial gas supply options at PBS Toronto from May 16-18. The company provides liquid nitrogen-based technologies that help manufacturers enhance efficiency and safety in many processes.

The company also offers particle size reduction solutions, particularly for heat-sensitive or difficult-to-mill materials, that can help processors grind more effectively and efficiently.

Air Products provides PolarFit cryogenic grinding solutions which include consultative services and turn-key offerings that cover everything from design to installation of a complete cryogrinding system. The company has a testing lab in Allentown, PA, where it can run a customer's product on production-scale equipment to help determine the feasibility of using cryogenics in their process, quantify the cost versus benefits of using cryogenics, and optimize their cryogrinding operation.

The company has a strong computational modeling center through which it helps to improve processes using Computational Fluid Dynamics (CFD) and other programs for the early conceptual studies of new designs, product development, scale-up, and troubleshooting. In particular, CFD can be useful when designing inerting systems for combustible dust protection.

Air Products' shares rose around 3.4% over the last three months, outperforming the Zacks categorized Chemicals-Diversified industry's 2.1% gain.

Air Products is well positioned to capitalize on the cyclical recovery in core industrial end-markets. The company has built a strong project backlog. These projects are expected to be accretive to earnings and cash flow over the next few years. Acquisitions and new business wins are expected to continue to drive results in the near term. The company is also progressing well with its $600 million cost-cutting program.

However, Air Product's industrial gases business in the EMEA region is witnessing pressure from a weak operating environment. The company is also seeing lower volumes in Latin America due to weak demand. Moreover, volumes in packaged gases continue to be weak while LNG sales remain under pressure due to low project activity. The company is also exposed to currency headwinds.

Air Products beat earnings expectations in second-quarter fiscal 2017 (ended Mar 31, 2017). The company logged second-quarter adjusted earnings of $1.43 per share, up 4% from the year-ago quarter. Earnings surpassed the Zacks Consensus Estimate of $1.38. Revenues rose 11% year over year to $1.98 billion in the reported quarter, beating the Zacks Consensus Estimate of $1.83 billion.

Air Products has a significant amount of cash to invest in its core industrial gases business. The company expects to have roughly $8 billion to deploy in strategic, high-return opportunities to create shareholders value over the next three years. For third-quarter fiscal 2017, Air Products anticipates adjusted earnings per share from continuing operations of $1.55 to $1.60 per share, which at midpoint, also represents a 9% increase over last year.

Air Products and Chemicals, Inc. Price and Consensus

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

Air Products currently carries a Zacks Rank #3 (Hold).

Stocks to Consider

Better-ranked companies in the chemical space include BASF SE BASFY , The Chemours Company CC and Kronos Worldwide Inc KRO . All the three stocks sport a Zacks Rank #1 (Strong Buy). You can see the complete list of today's Zacks #1 Rank stocks here.

BASF has expected long-term growth of 8.6%.

Chemours has expected long-term growth of 15.5%.

Kronos has expected long-term growth of 5%.

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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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