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Air Products to Install Energy Storage Systems in Korea

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Air Products and Chemicals Inc . APD is installing energy storage systems at its industrial gas sites in Gumi City, as well as Onsan and Yongyeon of Ulsan City, South Korea. The systems are expected to come online in the second half of 2018.

The company has adopted the energy storage technology that will improve energy efficiency of its production facilities. Energy storage technologies capture and store excess energy during low demand periods for later use to improve overall energy consumption. Air Products' move will support Korea's efforts toward more sustainable and efficient energy consumption.

Air Products' shares have moved up 16.6% over a year, outperforming the industry 's 12.1% growth.

In April, Air Products raised its fiscal 2018 earnings outlook taking expected contributions from the Lu'An syngas project into account. The company now expects adjusted earnings in the range of $7.25-$7.40 per share (a 15-17% increase from the prior year), up from its earlier view of $7.15-$7.35.

Moreover, the company expects adjusted earnings in the band of $1.80-$1.85 per share for the fiscal third quarter, up 9-12% year over year. It also foresees capital expenditure of $1.8-$2 billion for fiscal 2018.

Air Products has built a strong project backlog. These projects are expected to be accretive to earnings and cash flow, as they come on stream over the next few years. The company will also benefit from its actions to cut operational costs. Moreover, strategic investments in high-return projects, new business deals and acquisitions should drive results in fiscal 2018.

Air Products and Chemicals, Inc. Price and Consensus

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

Zacks Rank & Stocks to Consider

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

Some better-ranked companies in the basic materials space are FMC Corp. FMC , Celanese Corp. CE 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 .

FMC Corp has an expected long-term earnings growth rate of 16.4%. Its shares have gained around 17.9% over a year.

Celanese has an expected long-term earnings growth rate of 8.9%. Its shares have moved up around 30.8% over a year.

Chemours has an expected long-term earnings growth rate of 15.5%. Its shares have gained around 28.3% over a year.

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Air Products and Chemicals, Inc. (APD): Free Stock Analysis Report

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Chemours Company (The) (CC): Free Stock Analysis Report

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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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