Aldrich Materials Science, part of Sigma-Aldrich Corporation (SIAL), has signed an agreement to collaborate on the scale-up and commercialization of hydrogen storage materials with Ilika plc, the Southampton, UK-based cleantech materials company.
Both the companies believe that this collaboration will become an important component of the energy industry’s efforts to develop consumer-friendly hydrogen storage materials for fuel cell and clean combustion technology.
While many methods consume a lot of energy through compression and conversion, Ilika claims its cylinder storage method combats this by allowing for moderate pressure and temperatures.
Hydrogen combustion or conversion into electricity through a fuel cell does not produce carbon dioxide emissions. The element can also be used as an alternative energy carrier to battery technology since the energy density of hydrogen can be substantially higher than that of batteries.
Hydrogen for transport purposes is required to enable a driving range of approximately 500km, which is nearly double the range provided by electric vehicles.
Hydrogen technology is also required under guidelines outlined by the US Freedom Car initiative to produce the element quickly enough for vehicular operation of cars and trains.
The partnership was brought by Ilika’s need for Aldrich’s mechano chemistry and manufacturing expertise. Aldrich, in turn, was attracted by Ilika’s high-throughput discovery capabilities, which are complementary to its scale-up facilities.
Sigma-Aldrich's technical know-how and processing is a proven tool for the preparation of novel materials for industrial purposes. This agreement is a great example of how Ilika works with its partners to develop innovative materials that solve complex industrial challenges.
As per the CEO of Ilika, this agreement is a great example of how Ilika, together with its partners, develops innovative materials that solve complex industrial challenges and shares in the commercial upside that these technological advances make possible.
St. Louis, Missouri-based Sigma-Aldrich Corporation is a leading life sciences and high technology company. It develops, manufactures and distributes various biochemicals and organic chemicals.
Apart from acquisitions, in order to enhance its growth, Sigma-Aldrich plans to increase its focus on marketing, business development, R&D, full leverage of its sales force and continuing with its efforts to improve process and operations management.
In April 2011, the company delivered first quarter earnings of 97 cents, which surpassed both the Zacks Consensus Estimate of 89 cents and prior-year earnings per share (EPS) of 81 cents. The company incurred a tax benefit of 4 cents, partially offset by restructuring costs of 1 cent leading to adjusted earnings of 94 cents per share, an increase of 12% year over year.
Reported sales in the first quarter of 2011 were $632 million, increasing 10% year over year and outperforming the Zacks Consensus Estimate of $607 million. Excluding a 2% impact from currency exchange rates and 1% from acquisitions first- quarter organic sales growth was 7%.
For full-year 2011, the company reiterated its organic sales to grow in the mid-single digit range. The company anticipates that this organic growth, along with benefits from currency and acquisitions are expected to drive overall growth to low double digits.
The company is on route to execute its strategic initiatives to drive sales of its Research business and to deliver high single digit organic growth in SAFC for the full year and enhance the e-commerce and Asia Pacific-Latin American market sales.
Based on the strong operating performance in the first quarter of 2011 and more favorable foreign currency exchange rates, Sigma increased its diluted adjusted EPS outlook for 2011 to a new range of $3.60 to $3.75 (excluding the impact of restructuring and other extraordinary special charges) higher than the previous expectation of $3.45 to $3.60.
Sigma-Aldrich faces stiff competition from Bayer AG (BAYRY) and privately held companies Brenntag AG and VWR International, LLC.
We currently maintain a Zacks #2 Rank (short-term Buy recommendation) on Sigma and a long-term Neutral recommendation.
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