Industrial gas producer and supplier Praxair Inc. PX recently secured an important contract from the world’s largest glass container manufacturer, Owens-Illinois. With this move, Praxair penetrated further into the glass container manufacturing industry.
Per the terms of the contract, Praxair has started operating a non-cryogenic plant, with an installed daily capacity of 180 tons, for Owens-Illinois. The company will be supplying gaseous oxygen to Owens-Illinois’ glass facility in Muskogee, OK, which will run on oxy-fuel combustion technology.
In addition, Praxair has extended its dilute oxygen combustion Wide Flame Burner technology to Owens-Illinois’ glass facility, apart from providing the oxy-fuel combustion flow control skids. The advanced technologies will help Owens-Illinois control furnace emissions as well as make the glass-melting process energy-efficient.
We believe that such contract wins reflect growing customer preferences for Praxair’s world-class products and services. Also, increasing use of industrial gases in manufacturing, transportation, healthcare, food and beverages, and metal fabrication industries is a boon for industrial gas producers.
Despite such contract wins and bright prospects, certain near-term headwinds are affecting Praxair’s performances. The stock currently carries a Zacks Rank #4 (Sell), with a market capitalization of $35.1 billion. The Zacks Consensus Estimate is pegged at $6.32 for 2015 and $7.02 for 2016.
Some better-ranked stocks in the chemical diversified industry include Asahi Kasei Corporation AHKSY, Air Products & Chemicals Inc. APD and Innospec Inc. IOSP. While Asahi Kasei sports a Zacks Rank #1 (Strong Buy), both Air Products & Chemicals and Innospec carry a Zacks Rank #2 (Buy).
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Be the first to comment