Air Products (APD) Wins Contract To Supply MEMC Korea's Fab

Air Products and Chemicals, Inc. (NYSE:APD) has been awarded a supply contract by MEMC Korea, a fully-owned subsidiary of GlobalWafers. The industrial gases giant will support MEMC Korea’s new 300mm silicon wafer fab that is under construction and adjacent to the existing fab in Cheonan, South Korea.

Notably, GlobalWafers is the third largest silicon wafer manufacturer globally and a leading wafer supplier for the semiconductor industry. Air Products will provide turnkey solutions that will include liquid argon, a PRISM high purity nitrogen (“HPN”) on-site generator along with associated systems, maintenance and other operation services.

Emerging technologies like the Internet of Things (IoT), artificial intelligence, 5G and virtual reality and autonomous vehicles are driving demand for silicon wafers. Air Products’ latest deal supports the robust development of semiconductor and electronics industries in Korea.

Moreover, Air Products’ PRISM product line provides economic, reliable and eco-friendly on-site supply solutions. The modular, packaged design enables easy integration, quick installation along with flexible operating patterns. Also, the PRISM HPN system generates one of the purest grades of nitrogen in the industry.

Air Products’ shares have rallied 43.6% in the past year, against the industry’s 33.9% decline.

In April 2019, the company raised adjusted earnings per share (EPS) guidance for fiscal 2019 to the range of $8.15-$8.30 from the previous expectation of $8.05-$8.30. This indicates 10% rise year over year at the midpoint.

The company expects adjusted EPS for third-quarter fiscal 2019 in the band of $2.10-$2.15, which calls for 8-10% rise year over year. Also, the company raised capital expenditure expectations for fiscal 2019 to the range of $2.4-$2.5 billion, from the previous band of $2.3-$2.5 billion.

Zacks Rank & Other Key Picks

Air Products currently carries a Zacks Rank #2 (Buy).

Some other top-ranked stocks in the basic materials space are Materion Corporation (NYSE:MTRN) , Flexible Solutions International Inc (NYSE:FSI) and AngloGold Ashanti Limited (NYSE:AU) . These stocks currently sport a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Materion has an expected earnings growth rate of 27.3% for 2019. The company’s shares have gained 20.1% in the past year.

Flexible Solutions has a projected earnings growth rate of 342.9% for the current year. The company’s shares have surged 143.2% in a year’s time.

AngloGold has an estimated earnings growth rate of 90.6% for the current year. Its shares have rallied 125.5% in the past year.

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