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$VSM, which spun off from $APD and started trading as an independent company from Oct. 2016, reported that costs and timeline for establishing the independent governance and administrative structuring are within its expectations. $VSM added that ERP project is expected to be completed in 12 to 18 months and R&D relocations are progressing.
$APD is focused on making acquisitions where there are opportunities to increase its percentage of onsite business. In terms of geography, the company is focused on areas where it believes there are growth opportunities such as China, India, Mexico and Russia.
In 1Q17, $APD’s Industrial Gases EMEA segment sales of $400MM were down 9% on 2% lower volumes, flat pricing and negative 1% impact from lower energy passthrough and a negative 6% impact from currency, primarily the British pound. Industrial Gases Asia segment sales of $438MM increased 6% versus last year on volume growth of 10%.
During 1Q17, in $APD’s Industrial Gases Americas segment, sales of $864MM were up 3% versus last year as 2% lower volumes were more than offset by 5% higher energy passthrough. Latin American volumes were down close to 10% primarily on packaged gases and welding consumables. North America volumes also impacted overall Americas volumes by 1%.
$APD's cash as of December 31 decreased by approx. $700MM versus September 30 to a balance of $600MM as a result of utilizing the cash from Versum spin-off to repay commercial paper. The pro forma cash balance after receiving PMD sales proceeds of $3.8Bil is approx. $4.4Bil. $APD is investing the PMD proceeds in short-term deposits.
$APD expects FY17 adjusted EPS of $6.00-6.25, which at midpoint, represents an increase of 9% over last year. This includes an expected full-year adjusted tax rate of approx. 23%. For 2Q17, the company expects adjusted EPS from continuing operations of $1.30-1.40. CapEx for FY17 is expected to be approx. $1Bil on a GAAP and non-GAAP basis.
Industrial gases and equipment supplier $APD posted a decline in 1Q17 earnings. Net income for the quarter fell 17.54% to $299.8MM or $1.37 per share from $363.6MM or $1.67 per share a year ago. Sales rose 1% YoverY to $1.88Bil, driven by a 2% higher volumes and 2% favorable energy pass-through, partially offset by 3% unfavorable currency.
$APD and Grupa Azoty Zakłady Azotowe Kędzierzyn S.A., part of Grupa Azoty, signed a long-term contract for delivery of oxygen and nitrogen. The agreement will remain valid until end of 2035 and extends cooperation between companies which dates back to 1997. The contract also secures $APD's position as key supplier to major industries in Poland.
Excluding Electronic Materials and including Performance Materials, $APD expects 1Q17 adjusted EPS from continuing operations of $1.60-1.70, up 7-13% over last year. For FY17, the company projects its adjusted EPS from continuing operations of $7.10-7.35, up 9-13% over prior year results.
Excluding Electronic Materials and Performance Materials, $APD expects 1Q17 adjusted EPS from continuing operations of $1.40-1.50, up 3-10% over last year. For FY17, the company projects its adjusted EPS from continuing operations of $6.25-6.50, up 9-13% over prior year results.
Industrial gases and equipment supplier $APD reported a rise in 4Q16 earnings driven by lower costs and expenses. Net income grew 14.5% to $400.9MM, and EPS rose 14% to $1.80. Sales rose 1% to $2.46Bil as higher volumes more than offset by lower energy pass-through and unfavorable currency impacts. Adjusted EPS increased 10% to $2.01.
$APD signed an agreement for supply of multiple industrial gases to Chemours. $APD will build, own and operate air separation unit (ASU) in New Johnsonville, Tennessee to produce oxygen, nitrogen, and argon, and will also supply Chemours with compressed dry air and breathing air for established titanium dioxide (TiO2) production facility.
$APD has completed the separation of its Electronics Materials Division through the spin-off of Versum Materials, Inc. Versum begins "regular way" trading Oct. 3, 2016 on NYSE under the symbol "VSM." $APD common stockholders receive 1 share of common stock of Versum for every 2 shares of its stock held as of the close of business on Sept. 21, 2016.