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Air Products to Hike Liquid & Bulk Industrial Gas Prices

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Air Products and Chemicals Inc. (APD - Free Report) will raise product prices, monthly service charges, and surcharges of liquid and bulk industrial gas products for the North American merchant customers. The price hike will be effective Jan 1, 2019 or as contracts permit.

The move is in response to increasing sourcing, production and delivery costs as well as support investments in reliability, security, and safety.

The company is raising prices for liquid argon by up to 20%. Pricing adjustments also include an up to 10% hike for liquid oxygen, liquid nitrogen and liquid carbon dioxide as well as monthly service charges. Based on specific situations, some price adjustments may also be beyond these ranges.

The company will raise Helium prices based on demand, supply and cost situations.
 
Shares of Air Products have lost 3.6% in the past six months compared with the industry’s decline of 21.9%.



Air Products projects adjusted earnings per share of $8.05-$8.30 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

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 CF Industries Holdings, Inc. (CF - Free Report) , The Mosaic Company (MOS - Free Report) and Cameco Corporation (CCJ - Free Report) .
 
CF Industries has an expected earnings growth rate of 748% for the current year and a Zacks Rank #1 (Strong Buy). The company’s shares have inched up 0.5% in the past year. You can see the complete list of today’s Zacks #1 Rank stocks here.

Mosaic has an expected earnings growth rate of 75.2% for the current year and a Zacks Rank #2 (Buy). The company’s shares have gained 22.8% in the past year.

Cameco has an expected earnings growth rate of 66.7% for the current year and a Zacks Rank #2. Its shares have gained 11.8% in a year’s time.

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