Strong growth outlook for Air Products - bank

30 September 2008 15:14  [Source: ICIS news]

TORONTO (ICIS news)--US industrial gases major Air Products will likely achieve over 10% earnings per share (EPS) growth over the next two years despite challenging markets in electronics and slower growth in Europe, Deutsche Bank said on Tuesday.

 

Air Products had a record project backlog with no cancellations or significant delays, Deutsche said, citing a meeting last week with Air Products’ top management.

 

“In addition, bidding activity remains high and new project announcements [in hydrogen] are likely over the next few months,” it said.

 

The company remained confident of expanding operating margin on the back of lower costs, plant efficiencies and a better product mix, the bank said.

 

Underpinning these drivers were Air Products’ fully operational SAP busines software system and continued migration of production to high growth regions, including a new nitrogen trifluoride (NF3) plant in Korea.

 

Meanwhile, management believed that the weakness in electronics was limited to two quarters, Deutsche said.

 

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By: Stefan Baumgarten
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