Zacks_Analysts' Blog : APD Raises Product Prices - Analyst Blog

Effective May 1, 2011, Air Products and Chemicals Inc. (APD) will increase prices of its Tomamine, Tomadry, Tomadyne, Tomadol, Nonidet and Nonatell surfactants by $0.05 per pound driven by increase in raw material costs.

On April 1, 2011, Air Products also increased the prices globally up to 5% for its range of epoxy curing agents, accelerators and adhesion promoters, and up to 10% for diluents and specialty resins.

Air Products is the world’s largest supplier of hydrogen and helium and has a leading position in the gases business. In fiscal 2010, ended December 31, 2010, Air Products recorded earnings per share (EPS) of $1.35, which accelerated from $1.16 in the prior-year quarter. Quarterly revenues rose 10% year over year to $2.4 million on higher volumes across all business segments due to new contract wins.

Air Products raised its fiscal 2011 EPS range to $5.55–$5.70 per share from $5.50–$5.70 per share. The company expects its second-quarter 2011 EPS to be in the range of $1.36–$1.40 per share.

Air Products plans to build, own and operate a new liquid nitrogen production facility in Mooreland, Oklahoma by 2012, which will strengthen its existing leadership position in supplying the region's oilfield services market.

Air Products also has additional Oklahoma operations in Pryor, that produce liquid products for other markets including food, chemicals, metal processing, electronics and medical applications.

Air Products faces stiff competition from Praxair Inc. (PX), L'Air Liquide SA (AIQUY.PK) and The Linde Group (LNAGF.PK).

Currently, Air Products has a short-term (1 to 3 months) Zacks #3 Rank (Hold) and a long-term (6+ months) Neutral recommendation.