LEHIGH VALLEY, Pa. - Air Products (NYSE:APD), a leading industrial gases company, acknowledged today the receipt of a nomination notice for director candidates from Mantle Ridge for election at the company's 2025 Annual Meeting. The current Air Products Board of Directors is set to evaluate the nominees and will issue a formal recommendation to its shareholders in the proxy materials, which are to be filed with the Securities and Exchange Commission at a future date.
The shareholders of Air Products have been advised that no immediate action is necessary on their part regarding this development.
Air Products, with over 80 years in operation, has established itself as a significant player in the industrial gases sector, focusing on energy, environment, and emerging markets to foster a cleaner future. The company, which prides itself on being a top global supplier of hydrogen, operates in around 50 countries and reported fiscal 2024 sales of $12.1 billion. Air Products also has a reputation for its commitment to sustainability and environmental solutions, as demonstrated by its involvement in large-scale clean hydrogen projects and the sale of equipment businesses that include turbomachinery and cryogenic containers.
As of now, the company boasts a market capitalization exceeding $65 billion and employs approximately 23,000 people worldwide.
The statement from Air Products also included a cautionary note regarding forward-looking statements, reminding that such statements are not guarantees of future performance and actual results may differ materially due to various factors.
Shareholders and interested parties are directed to read the upcoming proxy statement and any related documents filed with the SEC carefully once they become available, as they will contain important information about the board nominations and the annual meeting.
This news article is based on a press release statement from Air Products.
In other recent news, Air Products & Chemicals Inc. reported strong fourth-quarter results, surpassing market expectations, which led BMO Capital to maintain its Outperform rating and increase the price target to $350. The company's fiscal year guidance, excluding the liquefied natural gas (LNG) segment, aligns with forecasts, indicating a steady course ahead. Notably, management has taken steps to address investor concerns, including the cancellation of the Texas green energy project and a pause on the sustainable aviation fuel initiative.
In further developments, Air Products reported a 13% year-over-year increase in adjusted earnings per share for the fourth quarter of 2024, meeting their guidance. The company anticipates EPS growth of 6% to 9% for the fiscal year 2025, despite the sale of its LNG business to Honeywell (NASDAQ:HON). It is strategically positioning itself to capitalize on the growing clean hydrogen market, with several projects underway.
Air Products' strategy of focusing on its core business while advancing long-term projects is expected to contribute to its upward trajectory. BMO Capital's revised price target reflects optimism about the company's future performance, driven by its recent moves to streamline operations and disciplined project management. Lastly, Air Products aims to return approximately $1.6 billion to shareholders in dividends, demonstrating its commitment to enhancing shareholder value.
InvestingPro Insights
As Air Products (NYSE:APD) navigates the recent nomination notice from Mantle Ridge, it's worth examining some key financial metrics and insights from InvestingPro that shed light on the company's current position.
According to InvestingPro data, Air Products boasts a market capitalization of $72.08 billion, slightly higher than the $65 billion mentioned in the article. This valuation reflects the company's strong market presence and investor confidence. The company's P/E ratio stands at 27.59 (adjusted for the last twelve months), indicating that investors are willing to pay a premium for APD's earnings, possibly due to its growth prospects and market position.
An InvestingPro Tip highlights that Air Products has raised its dividend for 41 consecutive years, demonstrating a long-standing commitment to shareholder returns. This is particularly relevant given the company's focus on sustainability and long-term growth strategies mentioned in the article. The current dividend yield is 2.16%, which may be attractive to income-focused investors.
Another InvestingPro Tip notes that APD is trading near its 52-week high, with a strong return of 20.31% over the last three months. This performance aligns with the company's robust market position and its ongoing involvement in large-scale clean hydrogen projects, as mentioned in the article.
For readers interested in a more comprehensive analysis, InvestingPro offers 12 additional tips for Air Products, providing a deeper understanding of the company's financial health and market position.
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