Industrial gas giant Air Products (APD - Free Report) has selected Sea-Land Chemical Company as Central U.S. distributor for several of its functional additives products. These products include Tomadol, Tomamine, Nonidet, Tomakleen, Tomadry and Tomadyne.
Sea-Land has more than five decades of experience in offering specialty chemicals globally. Its sales team has vast technical knowledge of these product lines and their applications.
Sea-Land will replace Harcros Chemicals, Inc. as Air Products' distributor in Minnesota, Iowa, Missouri, Kansas, Colorado, Nebraska, Montana, South Dakota and North Dakota, effective Nov 1, 2016.
Currently, Sea-Land distributes these product lines for Air Products functional additives offerings in the Midwest and Southeast regions of the U.S. These products are used as surfactants in a range of markets including industrial and institutional cleaning and metalworking.
Air Products’ shares closed roughly 6.5% lower at $140.57 on Oct 3.
Air Products recently completed the separation of its Electronics Materials Division through the spin-off of Versum Materials, Inc. The company is also on track to complete the sale of the Performance Materials Division (“PMD”) of its Materials Technologies segment to Germany's Evonik Industries AG. These actions will allow Air Products to direct resources to grow its core and stable industrial gases business.
Air Products should gain from cost-cutting measures, new business deals and strategic investments. However, its industrial gases business in the Europe, Middle East, and Africa (“EMEA”) region is seeing pressure from a weak operating environment. The company is also exposed to currency headwinds and still has a debt-laden balance sheet.
Air products is a Zacks Rank #4 (Sell) stock.
Stocks to Consider
Some better-ranked stocks in the chemical space include Innophos Holdings Inc. (IPHS - Free Report) , Olin Corp. (OLN - Free Report) and The Chemours Company (CC - Free Report) .
Innophos Holdings sports a Zacks Rank #1 (Strong Buy). The company has an expected earnings growth of 48.6% for the current year. You can see the complete list of today’s Zacks #1 Rank stocks here.
Olin, also a Zacks Rank #1 stock, has an expected earnings growth of around 46% for the current year.
Chemours is a Zacks Rank #1 stock with an expected earnings growth of 20.3% for the current year.
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