Air Products and Chemicals Inc. (APD) announced that it will raise the prices globally for process materials and advanced materials supplied by its Electronics business. The hike will be effective immediately or as contracts permit.
The price adjustments are expected to counter the increasing raw material and production costs, enhance supply reliability and improve profitability of the business.
Air Products benefits from its diverse customer base, sustained pricing power and cost-reduction measures. New business deals and strategic investments are expected to support results in fiscal 2014. Moreover, the acquisition of a 67% stake in Chilean industrial gas company, Indura S.A., has ushered in substantial growth opportunity for Air Products.
Air Products provides atmospheric, process and specialty gases, performance materials, equipment, and technology. It not only strives to meet international industry standards but also satisfies the most demanding requirements for specific products and superior technology and services.
Air Products expects its strategic actions, including productivity improvement, better asset utilization, disciplined project execution and cost management initiatives to drive earnings growth in fiscal 2014. Moreover, it remains committed to maximizing its shareholder return. The company anticipates stronger momentum in the second half of the year.
Air Products currently carries a Zacks Rank #4 (Sell).
Better-ranked stocks worth considering in the chemical space include Valhi Inc. (VHI), LyondellBasell Industries N.V. (LYB) and Koppers Holdings Inc. (KOP). While Valhi sports a Zacks Rank #1 (Strong Buy), LyondellBasell and Koppers Holdings have a Zacks Rank #2 (Buy).
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