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Company Update: Air Products & Chemicals Inc (NYSE:APD) – Air Products Will Exit Energy-from-Waste Business

[PR Newswire] – LEHIGH VALLEY, Pa., April 4, 2016 /PRNewswire/ — Air Products (APD) has announced that the Company will exit its Energy-from-Waste (EfW) business. As a result, the EfW business segment will be accounted for as a discontinued operation effective in the Company’s second fiscal quarter. Also in the second quarter, Air Products expects to record a pre-tax charge in the range of $900 million to $1.0 billion in discontinued operations, primarily to write down assets associated with the EfW business to their realizable value. In previous public comments, Air Products’ management has communicated the challenges with the Tees Valley, UK projects. Testing and analysis completed during the Company’s fiscal second quarter indicated that additional design and operational challenges would require significant time and cost to rectify. Consequently, the Board of Directors has decided that it is no longer in the best interest of the Company and its shareholders to continue the Tees Valley projects. Air Products will work to optimize the cash value of its investments. Exiting the EfW business will allow the Company to direct its resources to its core business of Industrial Gases. Read more on this. Air Products and Chemicals, Inc. (APD) , with a current value of $30.95B, started the session at $143.73. During today’s session, APD traded between $142.82 to $144.10 with a one year range of $114.64 to $153.93. Priced at 19.61x this year’s forecasted earnings, APD shares are relatively expensive compared to the industry’s 15.23x forward p/e ratio. The company pays shareholders $3.44 per share in dividend income per year, for a current yield of 2.37%. In a review of the consensus earnings estimate this quarter, 16 sell-side analysts are looking at $1.80 per share, which would be $0.25 better than the year-ago quarter and a $0.04 sequential increase. Furthermore, our analysis shows the full-year EPS estimate to be $7.41, which would be a $0.84 better when compared to the last year’s annual results. The quarterly earnings estimate is based on a consensus revenue forecast of the current quarter of $2.38 Billion. If realized, that would be a 1.24% decrease over the year-ago quarter. In terms of ratings, KeyBanc Capital Mkts upgraded APD from Sector Weight to Overweight (Jan 11, 2016). Previously, Citigroup downgraded APD from Buy to Neutral. When considering if perhaps the stock is under or overvalued, the average price target is $148.76, which is 3.50% above where the stock opened this morning. See more in (NYSE:APD) Similar Articles: Company Update: Air Products & Chemicals Inc (NYSE:APD) – Chemicals – Major Diversified Stocks Review — The Dow Chemical, Huntsman, Air Products and Chemicals, and Praxair Company Update: Air Products & Chemicals Inc (NYSE:APD) – Air Products Moves Forward with its Materials Technologies Business Spin-Off to Versum Materials Company Update: Air Products & Chemicals Inc (NYSE:APD) – Versum Materials is the selected name for the Materials Technologies Business spin-off of Air Products
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