Tags: gas | APD | emerging | market

APD Surges on Emerging Market Business

By    |   Wednesday, 02 Nov 2011 11:13 AM

 Air Products and Chemicals (APD) is keeping a close eye on the global economy. The maker of industrial gases and chemicals depends on growing economic output for business. So far, however, global demand, including in its emerging market businesses, has been good.

Sales during the fourth quarter of fiscal 2011 hit $2.6 billion, up 11 percent from the same period a year earlier. Net income came in at $325 million, up 19 percent from $272 million earned during the fourth quarter of fiscal 2010. Business outside of the United States in particular drove growth for the company during the quarter, which ended Sept. 30, despite a sluggish global economy.

"This quarter's improvements were driven by growth in emerging markets and strong performance in our tonnage gases business. Overall economic activity for this quarter continued at the slower underlying growth rate we saw last quarter," says John McGlade, chairman, president and CEO of APD.

"We achieved another solid year of key project wins, double digit sales and earnings growth despite a slowing global economy in the second half of 2011"

Standard and Poor's in a recent note says growing energy and chemical demand would benefit Air Products and Chemicals. "Given its leadership position in refinery hydrogen, the company is well-positioned to take advantage of growing energy areas such as gasification, gas-to-liquids, and nonconventional fuels processing," says Standard & Poor's credit analyst Liley Mehta.

Watch the economy

As always, keep an eye on the global economy, as hints of recession or cool downs in both developed and developing economies can hurt industrial concerns, which could ultimately hit the top line at Air Products and Chemicals.

Company officials are keeping an eye on the global economy as well but remain optimistic. "While the near-term economic outlook is for continued slow growth and is clouded by global economic and policy uncertainties, we are well positioned with a large backlog of projects backed by signed customer contracts," McGlade says.

"We are confident that the prospects for industrial gases and Air Products, in particular, remain bright and we remain committed to achieving our 2015 goals for growth, margin and, most importantly, return on capital."

Sixteen analysts have buy or outperform ratings on APD stock and none are calling it a sell. The company next reports on Jan. 24.

© 2017 Newsmax Finance. All rights reserved.

 
1Like our page
2Share
Companies
Air Products and Chemicals (APD) is keeping a close eye on the global economy. The maker of industrial gases and chemicals depends on growing economic output for business. So far, however, global demand, including in its emerging market businesses, has been good. Sales...
gas,APD,emerging,market
382
2011-13-02
Wednesday, 02 Nov 2011 11:13 AM
Newsmax Inc.
 

Newsmax, Moneynews, Newsmax Health, and Independent. American. are registered trademarks of Newsmax Media, Inc. Newsmax TV, and Newsmax World are trademarks of Newsmax Media, Inc.

NEWSMAX.COM
MONEYNEWS.COM
© Newsmax Media, Inc.
All Rights Reserved