Back to top

Analyst Blog

Industrial gas giant Air Products (APD - Analyst Report) declared that its South American joint venture INDURA intends to construct a new plant in Antofagasta, Chile, and expand production capacity at its Graneros plant located south of Santiago.  INDURA will be investing over $15 million for these initiatives.

Investments in these new endeavors attempt to meet the increasing demand for industrial gases in the northern and central regions of Chile, driven mostly by the mining, metal fabrication and food industries.

The new plant in Antofagasta is expected to produce oxygen, nitrogen and argon. Its construction follows the opening of a new facility in Puerto Varas, Chile, in 2012, that was built to support local industries, including the growing aquaculture market.

Chilean industrial gas company INDURA has annual sales of $478 million and its integrated gas and retail business comprise liquid bulk, small on-sites and packaged gases. Air Products acquired 67% stake in INDURA in Jul 2012. It has ushered in a substantial growth opportunity for Air Products.

Air Products’ second-quarter fiscal 2013 (ended Mar 31, 2013) earnings from continued operations was $1.37 a share, in line with the Zacks Consensus Estimate. Revenues rose 6% year over year to $2,484.2 million aided by acquisitions, but missed the Zacks Consensus Estimate of $2,585 million. Management cut its earnings guidance for fiscal 2013 citing challenging economic conditions.

Air Products benefits from a diverse customer base, sustained pricing power and cost-reduction measures. New business deals and strategic investments are expected to support results in fiscal 2013.

Air Products retains a short-term (1 to 3 months) Zacks Rank #4 (Sell).

Other companies in the chemical industry with favorable Zacks Rank are Shin-Etsu Chemical Co., Ltd. , Celanese Corporation (CE - Analyst Report) and Methanex Corporation (MEOH - Analyst Report). All of them hold a Zacks Rank #1 (Strong Buy).

Please login to or register to post a comment.

New to Zacks?

Start Here

Zacks Investment Research


Are you a new Zacks Member or a visitor to

Top Zacks Features

My Portfolio Tracker

Is it Time to Sell?

One of the most important steps you can take today is to set up your portfolio tracker on Once you do, you'll be notified of major events affecting your stocks and/or funds with daily email alerts.

More Zacks Resources

Zacks Rank Home - Evaluate your stocks and use the Zacks Rank to eliminate the losers and keep the winners.

Mutual Fund Rank Home - Evaluate your funds with the Mutual Fund Rank for both your personal and retirement funds.

Stock/Mutual Fund Screening - Find better stocks and mutual funds. The ones most likely to beat the market and provide a positive return.

My Portfolio - Track your Portfolio and find out where your stocks/mutual funds stack up with the Zacks Rank.

Zacks #1 Rank Top Movers for Zacks #1 Rank Top Movers

Company Symbol Price %Chg
TRIQUINT SE… TQNT 20.67 +6.52%
RF MICRO DE… RFMD 12.47 +6.04%
VASCO DATA… VDSI 14.77 +4.68%
BANCO DO BR… BDORY 15.53 +3.95%
STRATTEC SE… STRT 80.24 +3.00%