Air Products and Chemicals Inc. APD signed a second long-term oxygen and nitrogen supply contract with a leading global materials supplier in Guangdong in South China. The move will help to strengthen Air Products' position in the strategic industrial base as well as its relationship with this global customer.
Per the deal, the company will build two sets of state-of-the-art cryogenic air separation plants in Guangdong to produce gaseous oxygen and nitrogen. The new plants are expected to come online in 2018. With the help of existing and new plants, Air Products will be able to increase gas supply capacity.
Air Products has underperformed the industry it belongs to over the last six months. The company's shares have moved up 12.7% over this period, compared with roughly 15.7% gain recorded by its industry.
Air Products logged fourth-quarter fiscal 2017 adjusted earnings of $1.76 per share, up 18% from the year-ago quarter. Earnings surpassed the Zacks Consensus Estimate of $1.69. Revenues rose 13% year over year to $2.2 billion in the reported quarter, beating the Zacks Consensus Estimate of $2.09 billion.
Air Products expects adjusted earnings per share of $1.60-$1.70 for first-quarter fiscal 2018, up 9-16% from the year-ago quarter. For fiscal 2018, Air Products expects adjusted earnings per share of $6.85-$7.05, up 9-12% year over year.
Air Products has a strong project backlog and benefits from actions to cut operational costs. Moreover, strategic investments in high-return projects, new business deals and acquisitions are expected to drive results in fiscal 2018.
Air Products and Chemicals, Inc. Price and Consensus
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