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Air Products to Launch IIoT-Enabled Systems This Heat Treat

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Air Products and Chemicals, Inc. (APD - Free Report) will launch its Intelligent Atmosphere Analyzers, which is enabled by the Industrial Internet of Things (IIoT), at Heat Treat 2017 in Columbus, OH, from Oct 24-26.  

The atmosphere supply and process management system, which features the company’s process intelligence, allows metals processors to capture relevant process and atmosphere data, improve product reliability, analyze savings potential, perform preventive maintenance and optimize process.

With the help of Intelligent Atmosphere Analyzers, metals processors will be able to run furnaces with precision. This will reduce operating costs, improve product quality and increase yield.

Air Products will also highlight its Tank Monitoring System at the show, which also features the company’s process intelligence. The system can remotely monitor gas storage tank levels, detect abnormal gas usage, track tank gas and liquid vaporizer temperature as well as help metals processors manage industrial gas supply. All data can be remotely accessed through a secure system and stored conveniently.

Shares of Air Products have moved up 13.9% in the last six months, outperforming the industry’s 12.7% growth.

 

 

Air Products, in August, increased its adjusted earnings per share guidance for the full year. The company now 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, which at midpoint, also represents a 12% increase over last year.

Air Products is well placed to leverage the cyclical recovery in core industrial end-markets. The company has a strong project backlog. These projects are expected to be accretive to earnings and cash flow over the next few years. Acquisitions and new business wins are expected to continue to drive results.

Air Products also remains on track in delivering on its cost-reduction programs, which should lend support to its margins. The company is progressing well with $600 million cost-cutting program.

Moreover, Air Products has significant amount of cash to invest in its core industrial gases business. The company expects to have roughly $8 billion to deploy in strategic, high-return opportunities (including acquisitions and large industrial gases projects) to create shareholders value over the next three years.

 

Zacks Rank & Other Stocks to Consider

Air Products currently sports a Zacks Rank #1 (Strong Buy).

Some other top-ranked stocks in the basic materials space are Sociedad Quimica y Minera de Chile S.A. (SQM - Free Report) , The Chemours Company (CC - Free Report) and FMC Corporation (FMC - Free Report) . All three stocks flaunt a Zacks Rank #1. You can see the complete list of today’s Zacks Rank #1 stocks here.

Sociedad Quimica has an expected long-term earnings growth rate of 32.5%.

Chemours has an expected long-term earnings growth rate of 15.5%.

FMC has an expected long-term earnings growth rate of 11.3%.

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