|Bid||171.54 x 1000|
|Ask||171.61 x 800|
|Day's Range||170.69 - 171.98|
|52 Week Range||145.95 - 171.98|
|Beta (3Y Monthly)||0.52|
|PE Ratio (TTM)||34.80|
|Forward Dividend & Yield||3.30 (1.97%)|
|1y Target Est||175.21|
Update on Chemical Companies Last Week(Continued from Prior Part)Praxair announced an expansionOn February 11, Praxair, the wholly owned subsidiary of Linde (LIN), announced that it will double the capacity of the plant in Neosho, Missouri. The
Update on Chemical Companies Last WeekDowDuPont declared its quarterly dividendIn a press release on February 14, DowDuPont (DWDP) announced its regular quarterly dividend for the first quarter. In order to be eligible for the
FWB:LIN), has announced the completion of a major investment project at its Geismar, Louisiana facility, bringing a new plant online that will increase carbon monoxide supply to customers in the Geismar area. The plant incorporates a new carbon monoxide purification train with more than 13 million cubic feet per day of capacity. This facility is part of a much larger investment that Praxair has embarked upon in Louisiana and the US Gulf Coast and leverages proprietary technologies to improve the overall efficiency of the site and maintain its long-term reliability and competitiveness.
Industrial gas producers' strong records highlight the importance of economic moats: All three industrial gas companies we cover-- Air Liquide, Air Products, and Linde--have consistently earned excess economic profits despite selling what are essentially commodities. The industrial gas sector benefits from high switching costs and long-term customer agreements, which often include take-or-pay clauses and indexed electricity costs. Industrial gases typically account for a relatively small fraction of customers' costs but are a vital input to ensure uninterrupted production.
FWB:LIN), has announced it will expand production capacity at its Neosho, Missouri air separation plant. The expansion is in response to the growing demand from customers in southwestern Missouri and neighboring parts of Arkansas, Oklahoma and Kansas in the food, aerospace, electronics, refining, chemicals and other industries. The project is expected to be completed in 2020 and will double capacity at the company’s Neosho facility.
DowDuPont's Q4 Earnings: What Investors Can ExpectDowDuPont’s fourth-quarter revenue estimatesDowDuPont (DWDP) is expected to report revenues of $20.92 billion in the fourth quarter—an increase of ~4.3% compared to the revenues in the fourth
XETRA: LIN) announced today that due to the US government shutdown, the Federal Trade Commission (FTC) extended the 29 January 2019 date for completion of the sales of certain US-based assets (as previously announced in October 2018) until 1 March 2019. Linde plc continues to work diligently to conclude the FTC review process and complete the US divestiture transactions by or before 1 March 2019. Linde plc is a leading industrial gases and engineering company with market capitalization of approximately USD 90 billion (EUR 78 billion) and 2017 pro forma sales of USD 27 billion (EUR 24 billion).
FWB:LIN), has been named to Bloomberg's 2019 Gender-Equality Index (GEI) and Forbes’ America’s Best Employers for Diversity 2019 list, recognizing the company’s strong commitment to diversity and inclusion. This is the second consecutive year Praxair has been included on the Bloomberg GEI, which distinguishes companies committed to transparency in gender reporting and advancing women’s equality. Additionally, Forbes recognized Praxair as one of America’s Best Employers for Diversity.
PPG Industries' Q4 Earnings Beat the Street—Stock Rises(Continued from Prior Part)PPG’s fourth-quarter revenue misses estimates marginally For the fourth quarter, PPG Industries (PPG) reported revenue of $3.64 billion, a fall of 1.0% YoY
FWB: LIN) today announced its Board of Directors has authorized a share repurchase program for up to USD 6.0 billion of its ordinary shares. "Linde plc is committed to investing for future growth, paying a competitive dividend and maintaining an A/A2 credit rating," said Steve Angel, CEO of Linde plc. "And while there continues to be attractive growth opportunities within our investment criteria, the merger of our two strong companies has resulted in surplus cash. Linde plc is a leading industrial gases and engineering company with market capitalization of approximately USD 90 billion (EUR 78 billion) and 2017 pro forma sales of USD 27 billion (EUR 24 billion).
Linde Plc, the industrial gases giant created by the merger of U.S. group Praxair and German rival Linde AG, said it would buy back up to $6 billion of own shares, returning proceeds from assets it had to sell to win antitrust approval. Under the repurchase programme, Linde plans to acquire up to 15 percent of its outstanding shares between May 1, 2019, and Feb. 1, 2021. Linde may start the programme earlier if its existing $1 billion share repurchase programme is concluded ahead of schedule.
FWB: LIN) announces that today its Board of Directors has authorized a share repurchase program for up to USD 6.0 billion of its ordinary shares. Under this program, Linde plc may acquire up to 15% of its currently outstanding ca. The purpose of the program shall be to reduce the share capital or to meet obligations under Linde plc equity awards.
France’s Safran is attractive because of its jet-engine venture with the U.S. firm. Also looking good: Hexcel, Linde, Alphabet, Takeda Pharmaceutical, and a soon-to-be-broken-up DowDuPont.
Linde (LIN) possesses the right combination of the two key ingredients for a likely earnings beat in its upcoming report. Get prepared with the key expectations.
Celanese to Acquire Linde's Synthesis Gas Production UnitCelanese to acquire synthesis gas production unitOn January 15, Celanese (CE) announced that it entered into a definitive agreement with Linde (LIN) to acquire a synthesis gas production unit
PPG Industries: What to Expect from Its Q4 Earnings(Continued from Prior Part)Adjusted EPS forecastWall Street analysts expect PPG Industries (PPG) to post an adjusted EPS of $1.10 for the fourth quarter, which reflects a decline of 7.6% YoY
Specialty Chemicals: Updates for the Week Ending January 11 ## W.R. Grace gets a new order On January 8, W.R. Grace (GRA) announced that it got a new order for its UNIPOL PP Process Technology. W.R. Grace will grant the licenses to Hanwha Total Petrochemical for its new PP production plant in Daesan, South Korea. The new facility will have the capacity to produce 400 kilotons per year. The plant is expected to be completed by 2021. W.R. Grace didn’t specify anything about the financial aspects of the deal. Hanwha Total Petrochemical is a joint venture between Hanwha General Chemicals and Total S.A.—a French oil and gas company. The companies have 13 plants in Daesan producing polymers, oil products, and base chemicals. Laura Schwinn, the president of W.R. Grace’s Specialty Catalysts business segment, said, “Grace is pleased to be selected to provide our technology and catalysts to Hanwha Total Petrochemical and to help them offer the broad capability and most advanced resins that deliver significant value to their customers.” ## Stock update W.R. Grace stock gained 1.4% for the previous week and closed at $67.81. Since the beginning of 2019, the stock has gained 4.5%. In 2018, the stock fell 7.4%. Analysts expect W.R. Grace’s target price to be $82.83, which implies a return potential of 22.2% over the closing price on January 11. W.R. Grace’s 14-day relative strength index of 66 suggests that the stock is moving closer to the “overbought” position. Investors could hold W.R. Grace indirectly by investing in the iShares U.S. Basic Materials ETF (IYM). IYM has invested 0.8% of its portfolio in W.R. Grace. The fund also has exposure to DowDuPont (DWDP), Linde (LIN), and LyondellBasell (LYB) with weights of 21.5%, 15%, and 4.6%, respectively, as of January 11. Continue to Next Part Browse this series on Market Realist: * Part 2 - IFF Collaborates with Aryballe on Digital Nose * Part 3 - PPG Industries Launched a New Polyurethane Primer * Part 4 - Axalta: ‘Sahara’ Is the 2019 Automotive Color of the Year
APD to Build Second Hydrogen Plant in California ## APD to build second hydrogen facility in California On January 7, Air Products and Chemicals (APD) announced that it plans to build a second liquid hydrogen plant in California. The decision came on the back of the increase in demand from various consumer markets, specifically from the growing demand for hydrogen fuel cell vehicles. APD also said the project development work is already underway and expects the plant to be commissioned in the first quarter of 2019. However, APD did not specify the financial aspects of building the plant. Liquefied hydrogen is used in several industries like electronics, material handling, float glass, edible fats and oils, chemical and petrochemical, and so on. In September 2018, APD announced its plan to build a liquid hydrogen plant in La Porte, Texas. Marie Folkes, APD’s president for the Americas segment, said, “Current customer demand for liquid hydrogen is driving the need for this new investment as we are experiencing growth from many traditional market segments, for which a reliable source of this product is vitally important. Additionally, this new capacity will be available for the steadily increasing demand from hydrogen fuel cell vehicles.” ## Stock prices APD stock declined 1.0% and closed at $159.93. The decline in the stock price pushed the stock to trade 0.8% below its 100-day moving average price of $161.31. In 2018, APD declined by 2.5% and outperformed the S&P 500. With several projects scheduled to be commissioned in 2019, APD’s growth path looks intact. Investors can indirectly hold APD by investing in the iShares U.S. Basic Materials ETF (IYM). IYM invests 6.2% of its portfolio in APD. The fund also provides exposure to DowDuPont (DWDP), Linde (LIN), and LyondellBasell (LYB) with weights of 21.8%, 14.9%, and 4.70%, respectively, as of January 7, 2019.
Analyzing Chemical Companies in the Week Ending January 4 ## Corteva sold its herbicide product line On January 3, American Vanguard (AVD) announced that it acquired the Quizalofop product line of herbicides from Corteva Agriscience—DowDuPont’s (DWDP) agriculture division. However, the parties didn’t disclose any of the financial aspects of the deal. The product line includes soybeans, canola, and pulses sold in the US and Canada. As part of the transaction, American Vanguard will get technical registrations, commercial sales information, and the transfer of existing product supply arrangements. Eric Wintemute, American Vanguard’s chairman and CEO, said, “Our acquisition of the QPE product line from Corteva Agriscience provides our crop protection business with a portfolio of valuable herbicide brands that hold significant leadership positions in the North American market. These products are complementary to existing glyphosate, glufosinate and 2,4D use, and are highly regarded for weed and grass control by providing a broad window of application and excellent crop safety.” ## DowDuPont’s stock price DowDuPont’s stock prices gained 3.2% and closed at $54.73 for the week ending January 4. Despite the gain in the stock price, DowDuPont traded 9.8% below the 100-day moving average price of $60.71. DowDuPont’s 100-day moving average has fallen from a high of $72.06 to the current levels, which indicates weakness in the stock. DowDuPont struggled in 2018 with a decline of 24.9%. However, DowDuPont has started 2019 on a positive note. DowDuPont’s 14-day relative strength index of 52 indicates that the stock isn’t overbought or oversold. Investors could hold DowDuPont indirectly by investing in the Materials Select Sector SPDR Fund (XLB). XLB has invested 21.9% of its portfolio in DowDuPont. XLB also provides exposure to Linde (LIN), Air Products and Chemicals (APD), and LyondellBasell (LYB) with weights of 15.1%, 6.2%, and 4.7%, respectively, as of January 4. Continue to Next Part Browse this series on Market Realist: * Part 2 - Celanese Completed the Next Polymers Acquisition * Part 3 - Westlake Chemical Completed the Nakan Acquisition * Part 4 - A. Schulman Announces Dividend for the Convertible Special Stock
Axalta Signs a Three-Year Global Alliance with Plenham ## Axalta in a global alliance On January 4, Axalta (AXTA) announced a three-year global alliance with Plenham—the parent company of Bodyshop and IBIS Worldwide. The alliance aims to share business improvement ideas, innovation, best practices, new process establishment, and knowledge through media and social interactions. The alliance is expected to help Axalta leverage its global refinish expertise to enhance Plenham’s worldwide media platforms and networks. The partnership will likely start with the IBIS USA 2019 symposium in San Diego on February 13–15. Jim Muse, Axalta’s Vice President of Global Refinish sales, said, “I am confident that this new alliance between Plenham and Axalta will significantly benefit our customers and the overall global collision repair industry. Axalta’s long and successful track record in helping our customers enhance efficiency by using new products and technologies combined with Plenham’s extensive network of body shops around the world make this a powerful combination. Together, we can advance new thinking and technologies quicker and get faster feedback on ideas that will make our industry better and more cost-effective than ever before. This is truly a win-win for our two companies and, as importantly, for the entire industry. We are excited to get started in 2019.” ## Axalta’s stock performance Axalta started 2019 on a positive note and rose 4.1% in the first week of 2019. In 2018, Axalta fell 27.6%. Axalta is trading 10.2% below the 100-day moving average price of $26.50, which indicates that the stock is on a downward trend. Analysts are positive about Axalta. Analysts recommended a target price of $29.40, which implies a potential return of ~23.5% over the closing price as of January 4. The company’s 14-day relative strength index indicates that the stock isn’t overbought or oversold. Investors could hold Axalta indirectly by investing in the iShares U.S. Basic Materials ETF (IYM), which has invested 0.9% of its portfolio in Axalta. The fund also provides exposure to DowDuPont (DWDP), Linde (LIN), and Air Products and Chemicals (APD) with weights of 22.4%, 15.4%, and 6.3%, respectively, as of January 4.
The latest report of December 14 indicates that Air Products and Chemicals’ (APD) short interest has increased marginally on a sequential biweekly basis. The short interest has increased for the second consecutive week. However, the short interest is just marginally above 1% of Air Products and Chemicals’ outstanding shares. Air Products and Chemicals’ short interest as a percentage of its outstanding shares increased to 1.13 % from 1.06% on November 30.
Analyzing Specialty Chemical Companies Last Week(Continued from Prior Part)Praxair Surface Technologies won an award On December 20, Linde’s (LIN) subsidiary Praxair announced that its subsidiary Praxair Surface Technologies won Pratt & Whitney’s 2018 Supplier Sustainability Award.
Praxair Surface Technologies received Pratt & Whitney’s 2018 Supplier Sustainability Award. This award is given yearly to recognize a Pratt & Whitney supplier that demonstrates exemplary commitment to environmental sustainability.