Air Products and Chemicals, Inc. APD declared that it will raise product pricing and monthly service charges for merchant customers in North America.
The company said that it will hike the price of liquid argon by up to 20%, for liquid oxygen, liquid nitrogen, liquid and bulk hydrogen by up to 15%, and for liquid carbon dioxide, liquid and bulk helium by up to 10%. The company also announced that it will increase the tank monthly service charges by up to 10%.
The price hike will be effective Oct 1, 2016, or as contracts permit. The company announced these price adjustments due to rising costs. Additionally, it will also support continued investments to improve the reliability, security, safety and efficiency of operations.
Air Products' shares closed roughly 0.2% lower at $146.58 on Sep 15.
Air Products saw higher profits in the third quarter of fiscal 2016 (ended Jun 30, 2016), backed by restructuring and operational improvements. Adjusted earnings of $1.92 per share for the quarter beat the Zacks Consensus Estimate, while revenues of $2,434.4 million missed the same. The company reported double-digit EPS growth for the eighth consecutive quarter.
Revenues from the Materials Technologies business fell 4% year over year to $520 million, hurt by 2% lower pricing, 1% lower volumes and currency headwinds. Sales of Electronics Materials declined 8% due to lower volumes and unfavorable currency movement. Performance Materials’ sales were relatively flat year over year as higher volumes were offset by lower pricing resulting from lower raw material costs.
Air Products currently has a Zacks Rank #3 (Hold).
Some better-ranked stocks in the chemical space include Innophos Holdings Inc IPHS, Mitsubishi Chemical Holdings Corporation MTLHY and Innospec Inc. IOSP, all sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
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