Effective April 4, 2011, Air Products and Chemicals Inc. (APD) will increase prices of its Tomamine, Tomadry and Tomadyne surfactants by $0.05 per pound and Tomadol, Nonidet and Nonatell surfactants prices by $0.04 per pound driven by increase in raw material costs.
A few days back, Air Products also announced that, effective April 1, 2011, it will hike prices globally up to 5% for its range of epoxy curing agents, accelerators and adhesion promoters, and up to 10% for diluents and specialty resins.
Air Products is the world’s largest supplier of hydrogen and helium and has a leading position in the gases business. In fiscal 2010, ended December 31, 2010, Air Products recorded earnings per share (EPS) of $1.35, which increased from $1.16 in the prior-year quarter. Quarterly revenues rose 10% year over year to $2.4 million on higher volumes across all business segments due to new contract wins.
Air Products raised its fiscal 2011 EPS range to $5.55–$5.70 per share from $5.50–$5.70 per share. The company expects its second-quarter 2011 EPS to be in the range of $1.36–$1.40 per share.
Air Products plans to build, own and operate a new liquid nitrogen production facility in Mooreland, Oklahoma by 2012, which will strengthen its existing leadership position in supplying the region’s oilfield services market.
Air Products also has additional Oklahoma operations, in Pryor, that produce liquid products for other markets including food, chemicals, metal processing, electronics and medical applications.
Air Products faces stiff competition from Praxair Inc. (PX), L’Air Liquide SA (AIQUY.PK) and The Linde Group (LNAGF.PK).
Currently, Air Products has a short-term (1 to 3 months) Zacks #3 Rank (Hold) and a long-term (6+ months) Neutral recommendation.
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