Air Products and Chemicals, Inc. APD has been awarded the on-site oxygen and nitrogen supply for POSCO Chemical's new cathode material manufacturing site in Gwangyang, South Korea.
POSCO Chemical is an affiliate of POSCO Group, the biggest integrated steel producer in Korea. Air Products will construct, own and operate two air separation units to support POSCO Chemical's new production line. These units are slated to come online next year.
Air Products has been supplying pipeline oxygen to POSCO Chemical's existing site in Gumi, South Korea for making cathode materials for secondary batteries. Cathode materials are a key component of secondary batteries and are generally used in devices including mobile phones, consumer devices, energy storage systems and electric vehicles. POSCO Group has been expanding its business into the growing secondary battery market.
According to Air Products, demand for secondary batteries is rising sharply in Korea, partly driven by the rapid growth of electric vehicles and energy storage systems due to environmental trends. The company will continue to look for opportunities to provide reliable and efficient gas solutions to this rapidly growing industry.
Air Products, which is among the prominent players in the chemicals space along with DowDuPont Inc. DWDP, Eastman Chemical Company EMN and LyondellBasell Industries N.V. LYB, topped earnings expectations in second-quarter fiscal 2019. Its adjusted earnings rose 12% year over year to $1.92 per share in the quarter, topping the Zacks Consensus Estimate of $1.88.
The company logged fiscal second-quarter revenues of $2,187.7 million, up around 2% year over year on the back of higher volumes and pricing. However, revenues missed the Zacks Consensus Estimate of $2,199.4 million.
Air Products raised its adjusted earnings per share guidance for fiscal 2019 to the range of $8.15-$8.30 from the previous expectation of $8.05-$8.30. This suggests 10% rise year over year at the midpoint.
The company expects adjusted earnings for third-quarter fiscal 2019 in the band of $2.10-$2.15 per share, which indicates 8-10% rise year over year. Also, it increased capital expenditure expectations for fiscal 2019 to the range of $2.4-$2.5 billion, from the previous range of $2.3-$2.5 billion.
Biggest Tech Breakthrough in a Generation
Be among the early investors in the new type of device that experts say could impact society as much as the discovery of electricity. Current technology will soon be outdated and replaced by these new devices. In the process, it’s expected to create 22 million jobs and generate $12.3 trillion in activity.
A select few stocks could skyrocket the most as rollout accelerates for this new tech. Early investors could see gains similar to buying Microsoft in the 1990s. Zacks’ just-released special report reveals 7 stocks to watch. The report is only available for a limited time.
See 7 breakthrough stocks now>>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
LyondellBasell Industries N.V. (LYB) : Free Stock Analysis Report
Eastman Chemical Company (EMN) : Free Stock Analysis Report
Air Products and Chemicals, Inc. (APD) : Free Stock Analysis Report
Dow Chemical Company (The) (DWDP) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research