Air Products and Chemicals Inc. (APD - Analyst Report) announced that it will demonstrate the environmental and operational benefits of its Cryo-Condap nitrogen condensation system for the recovery and abatement of volatile organic compounds (VOCs) at the 2012 ChemInnovations Conference & Exhibition in New Orleans, Louisiana (LA).
The Cryo-Condap system removes VOCs from gas streams. CryoCondap works in direct contact with liquid nitrogen to cool the solvent-laden gas stream. The VOCs condense out of the gas stream and solidifies to form a snow, which is removed by filters made from stainless steel. Periodically, the filters are cleaned using reverse pulses of compressed gas, causing the VOC snow to fall to the bottom of the filter vessel. At the bottom of the filter vessel, an electric heater melts the snow and liquid VOCs are discharged.
A conventional cryogenic condensation system operates semi-continuously, with two condenser vessels used alternately. CryoCondap, in contrast, uses a single process vessel and removes VOCs effectively down to low concentrations without the need for a demister or carbon bed.
Air Products will also feature PRISM Hydrogen Generator, which is based on advanced proprietary technology. The PRISM hydrogen generators and purification equipment deploy a highly efficient process to satisfy a broad range of requirements. The company’s proprietary technology and design facilitates localized fabrication, allowing it to deliver superior, cost-effective hydrogen generation systems to customers around the world.
Air Products will also highlight its new Gas Converter mobile app, which quickly and easily converts weight and volume measures for common industrial gases including nitrogen, oxygen, argon, hydrogen, helium and carbon dioxide.
Recently, Air Products released its fourth quarter and fiscal 2012 results. The company logged adjusted earnings from continued operations of $1.42 a share for the quarter ended September 30, 2012, missing the Zacks Consensus Estimate by a couple of cents.
Consolidated net income, as reported, plunged 57% year over year to $138.7 million (or 65 cents a share), pummeled by hefty one-time charges. The company reported a profit of $324.8 million (or $1.51 a share) a year ago.
Revenues rose 4% to $2,606 million, beating the Zacks Consensus Estimate of $2,574 million. The revenue growth was attributable to higher volumes in the Tonnage Gases, Equipment and Energy, and Electronics and Performance Materials divisions as well as sales increases due to acquisitions, partly offset by the impact of unfavorable currency. The company witnessed sluggish manufacturing activity in the quarter.
For fiscal 2012, adjusted earnings of $5.40 a share missed the Zacks Consensus Estimate of $5.42 and exceeded the year-ago level of $5.36. Sales for the year edged down 1% year over year to $9,612 million, but beat the Zacks Consensus Estimate of $9,577 million.
For fiscal 2013, Air Products plans to take a number of steps including execution of its new Tonnage investments and sustained improvement in its Electronics and Performance Materials unit to attain better productivity. The company expects that its recent strategic moves will act favorably for future growth and profitability despite the weak macroeconomic backdrop.
The company anticipates earnings between $5.65 and $5.85 per share for fiscal 2013. For first-quarter fiscal 2013, earnings are expected in the band of $1.26 to $1.31 per share. Air Products expects capital expenditures between $2 billion and $2.2 billion for the year.
Air Products, which competes with Praxair Inc. (PX - Analyst Report), currently holds a short-term (1 to 3 months) Zacks #4 Rank (Sell) and we have a long-term (more than 6 months) Neutral recommendation on the stock.