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AIR PRODUCTS REPORTS SECOND QUARTER EPS
OF 62 CENTS
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981-5522 and entering passcode 465665, or listen on the
Web at www.airproducts.com/Invest/EarningsReleases.htm.
Access the teleconference slides at www.airproducts.com/Invest/EarningsReleases/Teleconference.htm.
LEHIGH VALLEY, Pa. (April 28, 2004) - Air Products (NYSE:APD)
today reported net income of $141 million or diluted earnings
per share (EPS) of $.62 for its second fiscal quarter ended
March 31, 2004. Net income increased 24 percent and diluted
EPS was up 22 percent compared with the prior year. Sequentially,
net income and EPS increased seven percent.
Record quarter revenues of $1,857 million were up 18 percent
from the prior year on stronger volumes across the company's
Gases and Chemicals segments, acquisitions, and favorable
currency effects. Sequentially, revenues increased 10 percent,
driven by improved volumes and favorable currency effects.
Operating income of $210 million was up 19 percent from
the prior year and up six percent sequentially.
John P. Jones, Air Products' chairman and chief executive
officer, said, "As the manufacturing environment continued
to improve, we saw significant volume increases based on
strong demand in our growth platforms and our ability to
leverage our existing asset base."
Gases segment sales of $1,285 million increased 14 percent
over the prior year, mainly on higher volumes and acquisitions
in the company's Electronics and Healthcare growth platforms,
and favorable currency effects. Operating income of $189
million increased 26 percent, as operating leverage from
improved asset loadings more than offset higher costs.
Sequentially, Gases revenues increased seven percent, principally
due to stronger volumes in Electronics and Energy and Process
Industries. Operating income increased four percent as volume
growth was partially offset by higher costs.
Chemicals segment sales of $483 million increased 21 percent
versus the prior year due to strong volume growth across
the company's Performance Materials growth platform and
base Intermediates businesses. Operating income of $35 million
increased three percent, as higher volumes were largely
offset by higher raw material and other costs.
Sequentially, Chemicals revenues were up 18 percent and
operating income increased 42 percent on expected seasonally
stronger volumes and new business signings.
Equipment segment revenues of $89 million were up over
the prior year on higher air separation unit sales. Operating
income declined on lower liquefied natural gas (LNG) heat
exchanger activity. Air Products received a new LNG heat
exchanger order at the end of the second quarter.
Looking forward, Mr. Jones said, "Our solid volume
gains during the first half of the year, coupled with improving
manufacturing in North America and Asia, should improve
earnings in the second half of our fiscal year. We are now
projecting a full-year EPS range of $2.45 to $2.65 and a
third fiscal quarter EPS range of $.63 to $.68."
Mr. Jones continued, "Our continued earnings improvement
is evidence that the strategies we embarked upon a few years
ago are working and delivering value for Air Products' shareholders
and customers. Our top line growth remains strong and our
SAP project, an integral part of our productivity efforts,
is on budget and on schedule."
Air Products will continue to drive portfolio management
and cost reduction actions similar to prior years. Upfront
costs associated with such actions could reduce Air Products'
projected earnings for the current fiscal year.
Air Products (NYSE:APD) serves customers in technology,
energy, healthcare and industrial markets worldwide with
a unique portfolio of products, services and solutions,
providing atmospheric gases, process and specialty gases,
performance materials and chemical intermediates. Founded
in 1940, Air Products has built leading positions in key
growth markets such as semiconductor materials, refinery
hydrogen, home healthcare services, natural gas liquefaction,
and advanced coatings and adhesives. The company is recognized
for its innovative culture, operational excellence and commitment
to safety and the environment. With annual revenues of $6.3
billion and operations in over 30 countries, the company's
18,500 employees build lasting relationships with their
customers and communities based on understanding, integrity
and passion. For more information, visit www.airproducts.com.
NOTE: The forward-looking statements contained
in this presentation are based on current expectations regarding
important risk factors. Actual results may differ materially
from those expressed. Factors that might cause forward-looking
statements to differ materially from actual results include,
among other things, overall economic and business conditions
different than those currently anticipated and demand for
Air Products' goods and services; competitive factors in
the industries in which it competes; interruption in ordinary
sources of supply; the ability to recover unanticipated
increased energy and raw material costs from customers;
uninsured litigation judgments or settlements; spikes in
the pricing of natural gas; changes in government regulations;
consequences of acts of war or terrorism impacting the United
States' and other markets; charges related to currently
unplanned portfolio management and cost reduction actions;
the success of implementing cost reduction programs; the
timing, impact and other uncertainties of future acquisitions
or divestitures; significant fluctuations in interest rates
and foreign currencies from that currently anticipated;
the impact of tax and other legislation and regulations
in jurisdictions in which Air Products and its affiliates
operate; and the timing and rate at which tax credits can
be utilized.
Please review the attached financial tables, including
the Summary of Consolidated Financial Information:
AIR PRODUCTS AND CHEMICALS, INC.
SUMMARY OF CONSOLIDATED FINANCIAL INFORMATION
(Unaudited)
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