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Air Products (APD) to Hike Prices of Industrial Products

Air Products and Chemicals Inc. (APD) has announced it plans to increase product prices and monthly service charges for merchant customers in North America, effective Oct 1, 2014. The company is set to hike liquid oxygen, liquid nitrogen, liquid and bulk hydrogen, helium and bulk carbon monoxide prices by up to 15%. Liquid carbon dioxide and liquid argon prices will be increased by up to 20% and 25%, respectively.

The company’s decision to increase the prices of these products came in response to a number of factors including demand and supply imbalance which led to production increase as well as rise of distribution costs. The price adjustments are expected to counter the increases in operating expenses for natural gas and electrical power, plant maintenance, and employee labor and benefits. The price hikes are also likely to recover higher operating and raw material costs.

Air Products benefits from a diverse customer base, sustained pricing power and cost-reduction measures. New business deals and strategic investments are expected to support results in fiscal 2014. Moreover, the acquisition of a 67% stake in Chilean industrial gas company, Indura S.A., has ushered in substantial growth opportunity for Air Products.

Air Products provides atmospheric, process and specialty gases, performance materials, equipment, and technology. It not only strives to meet international industry standards but also satisfies the most demanding requirements for specific products and superior technology and services.

Air Products expects its strategic actions, including productivity improvement, better asset utilization, disciplined project execution and cost management initiatives to drive earnings growth in fiscal 2014. Moreover, it remains committed to maximizing its shareholder return. The company anticipates stronger momentum in the second half of the year.

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

Better-ranked companies in the chemical space worth considering include Green Plains Inc. (GPRE), Valhi, Inc. (VHI) and LyondellBasell Industries NV (LYB). While both Green Plains and LyondellBasell sport a Zacks Rank #1 (Strong Buy), Valhi holds a Zacks Rank #2 (Buy).

Read the Full Research Report on APD
Read the Full Research Report on LYB
Read the Full Research Report on VHI
Read the Full Research Report on GPRE


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