Air Products Buys ROVI - Analyst Blog
February 14 2012 - 10:25AM
Zacks
Air Products and Chemicals Inc. (APD) announced
that it has acquired Schluchtern, Germany-based ROVI Cosmetics
International GmbH at undisclosed terms. ROVI Cosmetics specializes
in delivery systems for skin care and hair care products. It has 18
employees.
Air Products considers the acquisition as an opportunity to
develop into a company providing differentiated personal care
products. The combined companies will provide advanced skin care
products.
Air Products believes that ROVI's technically advanced product
lines will complement its current offering of polymers, including
temperature switch polymers under the Intelimer brand,
functional-feel polymers under Deposilk brand, and Hybridur
urethane-acrylic interpenetrating network polymers.
Recently, Air Products released its first-quarter 2012 results.
The company reported an EPS of $1.36 in the quarter versus $1.35 in
the year-earlier quarter, which is in line with the Zacks Consensus
Estimate.
Net sales amounted to $2.4 billion, up 1% year over year, but
down 7% sequentially. The increase was due to higher prices in
Merchant Gases and Performance Materials. However, sales were below
the Zacks Consensus Estimate of $2.5 billion.
Looking ahead, management expects second-quarter 2012 results to
remain disappointing. However, growth in Asia and North America is
expected to accelerate in the second half of 2012, coupled with
improved operating performance and new plant on-streams, leading to
stronger sales and earnings growth in the later half of 2012. The
company’s recent orders, strong project backlog and robust bidding
activity position it well to achieve 2015 goals for growth, margin
and returns.
Air Products continues to maintain EPS guidance in the range of
$5.90 to $6.30 for fiscal 2012. The company expects second-quarter
EPS to be between $1.37 and $1.43.
Based in Pennsylvania, Air Products benefits from a long-term
take-or-pay contract, a consolidated industry structure, diverse
customer base and sustained pricing power. However, soaring energy
and raw material costs pose a threat to margin expansion.
In order to compensate for escalating raw material costs, Air
Products has been increasing the price for a range of chemicals
manufactured for industrial use. Air Products faces stiff
competition from Praxair Inc. (PX) and The Linde
Group.
Currently, the company retains a Zacks #3 Rank, which translates
into a short-term (1 to 3 months) Hold rating and we have
recommended the shares of the company as Neutral for the long-term
(more than 6 months).
AIR PRODS & CHE (APD): Free Stock Analysis Report
PRAXAIR INC (PX): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
Air Products and Chemicals (NYSE:APD)
Historical Stock Chart
From May 2024 to Jun 2024
Air Products and Chemicals (NYSE:APD)
Historical Stock Chart
From Jun 2023 to Jun 2024