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Air Products (APD) to Build & Operate New ASU in Minnesota

Air Products and Chemicals, Inc. APD declared that it will build, own and operate an air separation unit (ASU) in the Twin Cities area of Minnesota. This new facility is will provide reliable liquid industrial gas option to distributors and customers in the region, and is scheduled to be onstream between early-2020 and mid-2020.

Per the company, the new large-scale ASU will produce liquid oxygen, nitrogen and argon, which will allow it to strengthen its presence in a dynamic environment. Air Products supplied onsite and merchant liquid gases to Minnesota and the surrounding region’s customers for decades. The latest investment is in sync with the company’s commitment to customers in the Midwest region, which is likely to provide reliable product supply to new customers.

Air Products makes necessary investment in order to provide consistent and excellent service to its customers. The company currently owns and operates more than 300 ASU plants in over 40 countries globally.

Shares of Air Products have lost 4.8% in the past six months compared with the industry’s decline of 21.6%.


 

Air Products projects adjusted earnings of $8.05-$8.30 per share for fiscal 2019, reflecting a 10% increase at the midpoint year over year. Moreover, it expects adjusted earnings of $1.85-$1.90 per share for first-quarter fiscal 2019, up 5% at the midpoint year over year. The company also anticipates capital expenditure of $2.3-$2.5 billion for fiscal 2019.

Air Products has a capacity to deploy at least $14 billion in high-return investments over the next four years, aimed at creating significant shareholder value. Acquisitions and new business deals are also expected to continue driving results in the near term.

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).

A few better-ranked stocks in the basic materials space are The Mosaic Company MOS, Nexeo Solutions, Inc. NXEO and BHP Billiton PLC BBL.

Mosaic’s shares have rallied 24.1% in the past year. The company has an expected long-term earnings growth rate of 7% and a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Nexeo has an expected long-term earnings growth rate of 30.6% and a Zacks Rank #1. The company’s shares have gained 6.6% in the past year.

BHP Billiton has an expected long-term earnings growth rate of 5.3% and a Zacks Rank #2 (Buy). The company’s shares have gained 8.6% over the past year.

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