Air Products and Chemicals, Inc.’s APD Materials Technologies unit has declared an increase in the prices for process materials and advanced materials supplied by its Electronics business. The increase will be effective immediately or as contracts permit.
The company has increased the prices in order to recover the rising raw material costs, production expenses, and continued supply reliability, quality improvements and research and development activities so that it can reinvest to cater to the global market needs.
Air Products, in Sep 2015, announced its plans to separate its Materials Technologies unit through a tax-free spinoff (expected to be complete by Sep 2016).
Following the spinoff, both Air Products and the Materials Technologies businesses will operate as two best-in-class public companies with separate business models. The spinoff will enable Air Products to become the safest and most profitable industrial gas company in the world, providing outstanding service to its customers. Also, it will allow the company to focus entirely on specialty materials.
Air Products topped earnings expectations in fourth-quarter fiscal 2015 (ended Sep 30, 2015) and saw a healthy jump in its profits, helped by its cost-management initiatives and improved pricing. But its sales fell year over year and trailed expectations.
The industrial gases giant logged fourth-quarter adjusted earnings of $1.82 per share, up from $1.66 per share recorded in the year-ago quarter. Earnings also beat the Zacks Consensus Estimate of $1.80. Adjusted earnings exclude one-time items, including charges associated with business restructuring and cost-saving actions.
Net income from continuing operations, as reported, rocketed more than three-fold year over year to $345 million or $1.58 per share. The bottom line was supported by lower costs. Cost of sales for the reported quarter fell roughly 12% year over year to around $1.7 billion. Selling & administrative and R&D expenses also fell year over year.
Air Products currently carries a Zacks Rank #3 (Hold).
Some better-ranked companies in the diversified chemical space include Celanese Corporation CE, Innospec Inc. IOSP and Akzo Nobel N.V. AKZOY. All of them sport a Zacks Rank #1 (Strong Buy).
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