Air Products' Pipeline Initiates Gas Supply To HP In Malaysia

Air Products’ (NYSE:APD) declared that its pipeline in Batu Kawan Industrial Park, Penang, has come on-stream for the leading global printing company, HP. It is the Park’s first gas pipeline and an extension of Air Products' existing network in Prai.

Air Products’ new pipeline is supplying supply gases to HP in a cost-effective and reliable manner, supporting the latter’s innovation, reduce carbon footprint and also stimulate growth of other manufacturers in the Park. Further, the strategic location of the Batu Kawan Industrial Park offers high standard infrastructure facilities and excellent accessibility.

According to Air Products, this infrastructural investment highlights its commitment toward the economic and social development of Northern Malaysia and the rest of the country.

Shares of Air Products have moved up 3.8% in the last three months, underperforming the industry’s 4.8% growth.

Air Products has topped earnings estimates in third-quarter fiscal 2017 (ended Jun 30, 2017). The industrial gases giant logged third-quarter adjusted earnings of $1.65 per share, up 15% from the year-ago quarter. Earnings surpassed the Zacks Consensus Estimate of $1.60.

Air Products has increased its adjusted earnings per share guidance for the full year. For fiscal 2017, Air Products expects adjusted earnings per share of $6.20-$6.25 (up from $6.00-$6.25 expected earlier), which at midpoint, represents a 10% increase over last year. For fourth-quarter fiscal 2017, Air Products anticipates adjusted earnings per share from continuing operations of $1.65–$1.70 per share, which at midpoint, also represents a 12% increase over last year.

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

Stocks to Consider

Some better-ranked stocks in the basic materials space are Smurfit Kappa Group PLC (OTC:SMFKY) , POSCO (NYSE:PKX) and Kronos Worldwide Inc (NYSE:KRO) . All three stocks sport a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks Rank #1 stocks here.

Smurfit Kappa has expected long-term earnings growth rate of 4%.

POSCO has expected long-term earnings growth rate of 5%.

Kronos Worldwide has expected long-term earnings growth rate of 5%.

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