58.64 -0.43 (-0.73%)
After hours: 6:07PM EDT
|Bid||58.29 x 1000|
|Ask||0.00 x 1200|
|Day's Range||58.88 - 59.34|
|52 Week Range||53.91 - 64.17|
|PE Ratio (TTM)||N/A|
|Expense Ratio (net)||0.14%|
On August 12, Air Products and Chemicals announced that it signed an agreement to form a joint venture with Saudi Aramco and ACWA Power. The joint venture is valued at over $8 billion. The joint venture is for gasification at Jazan Economic City in Saudi Arabia.
The global economy is sending bearish signals for energy and base metals, such as copper, as major emerging market economies such as China and Turkey are experiencing a downturn. According to the International Energy Administration (IEA), developing markets are likely to generate around 1 million barrels a day of incremental demand in 2018, or about 75% of the global growth, which is a bullish sign.
PPG Industries (PPG) is all set to pay its 480th consecutive dividend payment. The company has been paying uninterrupted dividends to its shareholders since 1899. PPG has announced the key dates for the payment of its next dividend.
To help investors keep up with the markets, we present our ETF Scorecard. The Scorecard takes a step back and looks at how various asset classes across the globe are performing. The weekly performance is from last Thursday’s open to this week’s Wednesday close.
Last week, which ended August 10, potash prices were flat to positive at the locations in the chart below. They started rising as a result of tighter supply and strong demand. Usually, the demand for fertilizer is inelastic since farmers need fertilizers to achieve yields in order to meet the global food demand.
For the week ended August 10, MAP (monoammonium phosphate) prices remained firm, mirroring DAP (diammonium phosphate) price movements. The supply-demand conditions for phosphate fertilizers were tight, similar to what CF Industries (CF) indicated about nitrogen fertilizers. Companies (XLB) such as Mosaic (MOS), Nutrien (NTR), and Israel Chemicals (ICL) have managed to control their capacities to contribute to the supply dynamics.
Natural gas is one of the most important inputs required for nitrogen fertilizers. Companies such as CF Industries (CF) that are located in the United States are at a unique advantage with access to low natural gas prices. In its quarterly earnings, CF Industries cited low natural gas as a key driver for improvement in margins.
In our recent series Where Does the Fertilizer Industry Go from Here? we saw the outlook for fertilizer prices provided by CF Industries (CF), Mosaic (MOS), and Nutrien (NTR) in their second-quarter earnings releases. We saw how fertilizer prices have been a key driver of these companies’ better-than-expected results.
International Flavors & Fragrances’ (IFF) Fragrances segment is a major revenue contributor to IFF’s overall revenue. The Fragrances segment reported revenue of $469.47 million in the second quarter, an increase of 9.5% on a YoY basis. The segment’s revenue growth was driven by solid growth across all of its businesses and geographical regions.
Albemarle’s (ALB) Bromine Specialties segment accounted for 25.8% of the company’s total revenues in Q2 2018 compared to 27.7% in Q2 2017, which implies a decline of 1.9 percentage points on a YoY (year-over-year) basis. The segment reported revenues of $220.51 million in Q2 2018, a rise of 8.1% on a YoY basis. In Q2 2017, the segment reported revenues of $203.94 million.
With the supply environment for phosphate fertilizers tightening, we must also look at how the demand will likely play out. The demand could impact prices and phosphate producers (XLB) like Mosaic (MOS), Nutrien (NTR), and Israel Chemicals (ICL).
For nitrogen fertilizer investors, the energy cost is one of the most important considerations because it can account for 60%–70% of the raw materials costs. Companies located in the United States have an advantage compared to companies outside the United States. During the second-quarter earnings call, CF Industries (CF) said, “Increased energy costs, particularly for producers in Europe and China, have raised and flattened the upper half of the global cost curve necessitating higher nitrogen prices.”
Month-over-month, the number of analysts recommending a “strong buy” remained unchanged at five. Consequently, the number of analysts recommending a “hold” rose to seven from six a month ago. This price target was close to what the analysts had at the beginning of this year.
The current consensus price target for CF Industries stood at $47.95, which rose by almost 9.9% from $43.63 a month ago. The median price target also rose to $50 from $43 a month ago. The stock closed at $48.57 on August 8, which was already above the mean price target and only 2.9% below the median price target.
DowDuPont (DWDP) reported Q2 2018 revenues of $24.24 billion, an increase of 17.0% over its pro forma revenues of $20.7 billion in Q2 2017. Analysts expected DWDP to report revenues of ~$23.59 billion. The company’s revenues are reported on a continuing operations basis. It should be noted that Dow Chemical and DuPont made several significant divestitures to facilitate the merger.
MARKET PULSE Shares of Mosaic Co. (mos) rallied toward an 18-month high in afternoon trade Tuesday, to pace the materials sector's gainers, after the fertilizer company beat second-quarter earnings expectations and provided an upbeat outlook.
Mosaic (MOS) has a significant exposure to phosphate fertilizers (XLB), but it also has a potash division that is a participant in the Canpotex consortium with Nutrien (NTR). For the upcoming second-quarter results, Wall Street analysts are estimating that Mosaic will report overall sales of $2.2 billion, a 27% YoY (year-over-year) growth from $1.8 billion in the second quarter of 2017. For each of the last four quarters, Mosaic has managed to beat analysts’ estimates.
Air Products and Chemicals (APD) reported revenues of $2.26 billion in its fiscal third quarter, implying 6.6% YoY (year-over-year) growth. In the fiscal third quarter of 2017, APD reported revenues of $2.12 billion. However, APD’s reported revenues missed the analysts’ estimate of $2.31 billion.
Praxair (PX) announced its Q2 2018 earnings on July 26. Its adjusted EPS rose 17.8% YoY (year-over-year) to $1.72 from $1.46, beating analysts’ estimate of $1.70. The company’s EPS excluded transaction costs of $0.07 per share related to its proposed merger with Linde. In this series, we’ll look at Praxair’s Q2 revenue, earnings growth, and segment-wise performance.
Low natural gas prices have boosted nitrogen fertilizer companies in the US. In the second quarter, CVR Partners (UAN) stated that it experienced a $3 million decline in costs partly due to lower natural gas costs along with lower freight costs.
The US and China are set to resume talks to avert a trade war, according to a report by Bloomberg. Yahoo Finance’s Seana Smith, Dion Rabouin and Rick Newman discuss.