Air Products Wins Contract to Supply KCC in South Korea
Air Products and Chemicals, Inc. APD has been awarded a contract to supply oxygen and oxy-fuel combustion equipment for the new glass fiber production line at Sejong site, South Korea, by KCC Corporation. The production line is slated to come online next year.
Air Products will provide integrated solutions, including long-term gaseous oxygen and oxy-fuel combustion equipment, which includes its state-of-the-art Cleanfire burner. The integrated solutions will support KCC's production of glass fiber, which is used in lightweight automobiles and electric vehicles. For economical and environment-friendly, on-site gas supply, the company will also install a Prism vacuum swing adsorption (VSA) oxygen generator.
KCC Corporation is the biggest glass and construction material maker in South Korea. It focuses on developing high value-added products leveraging high energy efficiency and environment-friendly technology. The company has an extensive business portfolio covering the float glass, glass fiber, glass wool and other markets.
Air Products has been supplying various products and offerings to KCC Corporation's Sejong site and its other production lines. The company has enabled a long list of glass makers globally to become more productive, sustainable and energy efficient. Air Products is also committed to serving customers in Korea in order to build a greener country.
Air Products’ shares have moved up 12.1% in a year against the industry’s 0.7% decline.
Air Products, in July, raised its adjusted earnings guidance for fiscal 2018. It now anticipates adjusted earnings per share in the range of $7.40 to $7.45 (a 17-18% increase from the prior year) compared with the earlier view of $7.25 to $7.40. The company expects adjusted earnings in a band of $1.95 to $2.00 for the fiscal fourth quarter, up 11-14% year over year.
Revenues in the Industrial Gases – America segment increased year over year in the fiscal-third quarter, supported by strong hydrogen demand and favorable merchant gases volumes. Sales from Industrial Gases – Europe, Middle East, and Africa (EMEA) and Industrial Gases – Asia segments climbed year over year on the back of higher volumes and pricing as well as favorable currency swings.
Air Products remains focused on growing its core industrial gases business. Moreover, the company’s strong balance sheet and cash flow will allow it to make strong investments in the next few years. The company has a capacity to deploy at least $15 billion in high-return investments over the next five years, which will boost shareholders’ value.
Air Products and Chemicals, Inc. Price and Consensus
Air Products and Chemicals, Inc. Price and Consensus | Air Products and Chemicals, Inc. Quote
Zacks Rank & Other Stocks to Consider
Air Products is a Zacks Rank #2 (Buy) stock.
Some other top-ranked companies in the basic materials space are Ingevity Corp. NGVT, Celanese Corporation CE and CF Industries Holdings, Inc. CF.
Ingevity has an expected long-term earnings growth rate of 12% and a Zacks Rank #1 (Strong Buy). The company’s shares have rallied 68.5% in the past year. You can see the complete list of today’s Zacks #1 Rank stocks here.
Celanese has an expected long-term earnings growth rate of 10% and a Zacks Rank #1. Its shares have gained 10.7% in a year’s time.
CF Industries has an expected long-term earnings growth rate of 6% and a Zacks Rank #2. The company’s shares have gained 46.2% in the past year.
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