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Air Products (APD) to Build & Operate New Air Separation Units

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Air Products & Chemicals Inc. (APD - Free Report) has announced two projects to improve the sustainability, productivity and operational flexibility of its base industrial gas business, as well as a continued commitment to the merchant industrial gas market. APD will build two new air separation units (ASU) at its current Conyers, GA and Reidsville, NC, facilities. The new ASUs will replace older ones, increase capacity at the locations and are expected to be operational in 2026.

Conyers and Reidsville have very appealing customer markets, which Air Products has served for nearly 50 years. The ASU assets at these locations have served Air Products and its customers with great reliability. 

Air Products is a global leader in the manufacturing and supply of oxygen, nitrogen and argon. Industrial gas products produced at Conyers and Reidsville will comprise liquid oxygen, liquid nitrogen and liquid argon for regional supply to establish and emerging merchant markets. The various facilities service a variety of customers from markets such as chemicals, food, metals processing, primary materials, fabricated metals, electronics and distributors.

Air Products is committed to its strong base industrial gas business, as indicated by its investment in these two new ASUs. The company can improve product reliability for regional customers by having these new units function as backups for each other as well as other corporate facilities producing the same products in neighboring and nearby states.

Shares of Air Products have lost 9.4% over the past year compared with a 7.8% decline of its industry.

Zacks Investment Research
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Air Products, on its fiscal second-quarter call, said that it continues to expect fiscal 2024 adjusted earnings per share (EPS) of $12.20-$12.50, indicating 6-9% growth from the prior year’s adjusted EPS. For the third quarter of fiscal 2024, the company expects adjusted EPS in the range of $3-$3.05.

Zacks Rank & Key Picks

APD currently carries a Zacks Rank #4 (Sell).

Better-ranked stocks in the basic materials space include Carpenter Technology Corporation (CRS - Free Report) , Eldorado Gold Corporation (EGO - Free Report) and Kronos Worldwide, Inc. (KRO - Free Report) . 

Carpenter Technology currently carries a Zacks Rank #1 (Strong Buy). CRS beat the Zacks Consensus Estimate in each of the last four quarters, with the average earnings surprise being 15.1%. The company's shares have soared 104.5% in the past year. You can see the complete list of today's Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for Eldorado’s current-year earnings is pegged at $1.10 per share, indicating a year-over-year rise of 93%. EGO, a Zacks Rank #1 stock, beat the consensus estimate in each of the last four quarters, with the average earnings surprise being 430.7%. The company's shares have rallied roughly 47.9% in the past year.

Kronos Worldwide currently carries a Zacks Rank #1. KRO has a projected earnings growth rate of 297.7% for the current year. The company’s shares have rallied around 13.4% in the past year.

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