Air Products and Chemicals (APD Quick QuoteAPD - Free Report) has signed a supplier contract agreement with Vizient Inc, the biggest domestic member-owned healthcare company. Vizient accounts for over $100 billion in healthcare purchasing. The company encourages its suppliers to deliver exceptional and cost-effective care through its strong network system. Headquartered in Irving, TX, it serves more than 5,200 health system members and their affiliates. 

 

Air Products is likely to benefit in terms of being able to provide Vizient’s members with medical gases at negotiated prices as an approved supplier. Vizient’s wide member base includes academic medical centers, community hospitals, pediatric facilities, and non-acute healthcare providers who access the Vizient contract portfolio. Air Products will be able to provide these new customers with good quality medical gases at the required purity levels. 

 

Air Products has been supplying medical gases to its customers for over 70 years. Additionally, it provides equipment, turnkey services and cryogenic services for magnetic resonance imaging (MRI) to hospitals and institutions worldwide. The company is also the largest helium supplier globally and has recently built a pioneer helium plant in Doe Canyon, CO. 

 

Air Products operates 30 facilities in the U.S. and provides reliable delivery options from these. Small volume consumers can take advantage of the company’s CyroEase microbulk solutions which eliminate the problem of cylinder handling. Larger volume consumers are offered traditional liquid and gas supply. Air Products provides customers with expert advice on the most cost-effective method of transportation. With the new agreement, the company will be able to further expand and utilize its services. 

 

Shares of Air Products rose around 1.9% in the trading session on Monday, before closing the day around 0.5% higher at $144.04.

 

Air Products saw higher profits in the second quarter of fiscal 2016 (ended Mar 31, 2016), backed by restructuring and self-help measures. Adjusted earnings of $1.82 per share for the quarter beat the Zacks Consensus Estimate, while revenues of $2,271.2 million missed the same. The company reported double-digit EPS growth for the seventh consecutive quarter. 

 

Air Products expects earnings from continuing operations in the third quarter of fiscal 2016 to be higher than the prior-year quarter by 13%–16%. Management raised its earnings guidance for fiscal 2016 from $7.25−$7.50 to $7.40−$7.55 per share. However, it lowered its capital expenditure guidance by $0.1 billion to $1.2 billion.

 

Air Products currently has a Zacks Rank #3 (Hold).

 

Better-ranked companies in the chemicals industry include Innophos Holdings Inc , Innospec Inc. (IOSP Quick QuoteIOSP - Free Report) and Asahi Kasei Corp. (AHKSY Quick QuoteAHKSY - Free Report) , all sporting a Zacks Rank #1 (Strong Buy).

 

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