Specialty chemical company Air Products and Chemicals Inc. (APD) announced that it has received recognition from The Carbon Disclosure Project (CDP), which holds the largest database of corporate climate change information in the world. The CDP has also added Air Products to the Carbon Disclosure Leadership Index (CDLI) again, which comprise the top 10% of S&P 500 and Global 500 companies with respect to transparency in climate-related issues. CDLI recognizes companies that execute strong measures to reduce greenhouse gas emissions and demonstrate a good understanding of the business issues related to climatic changes.
Air Products remains upbeat regarding its selection in CDLI for its transparency and leadership in climatic change disclosures. Energy efficiency and reduction in emissions are the primary objectives of the company. The company is also set to increase product offerings and incorporate advanced technologies, thus enabling its customers to meet their environmental goals.
Air Products is the world’s leading supplier of hydrogen for processing cleaner burning transportation fuels and hydrogen infrastructure and fueling technology. The company is also the leading supplier of liquefied natural gas technology and equipments. Air Products became the only industrial company to be listed on Global and S&P 500 CDLI for 2012.
In July 2012, Air Products released its results for fiscal third-quarter 2012 ended June 30, 2012. The company reported adjusted (excluding one-time items) earnings from continued operations of $1.41 a share for the quarter, in line with the Zacks Consensus Estimate.
Consolidated net income, as reported, surged 48% year over year to $484.5 million or $2.26 a share compared with $326.5 million or $1.50 a year ago. The increase in profits was attributable to lower costs and one-time gains, which more than offset the impact of lower sales.
Revenues dipped 5% year over year to $2,340.1 million, missing the Zacks Consensus Estimate of $2,455 million. Challenging conditions in Europe and Asia as well as unfavorable currency (stemming from a stronger dollar) weighed on the company’s top line in the quarter.
Air Products’ healthy project backlog and solid bidding activity strongly positions it to achieve its long-term growth target. Given its leading position in the gases business, the company is well positioned to capitalize on the cyclical recovery in its core industrial end markets. Further, new business deals are expected to boost profits in 2012. However, soaring energy and raw material costs pose a threat to margin expansion.
Air Products, which competes with Praxair Inc. (PX), has a short-term Zacks #3 Rank (Hold) currently and we have a long-term Neutral recommendation on its shares.
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