By Everdeen Mason
Air Products & Chemicals Inc. (APD) said its fiscal
first-quarter earnings climbed 4.3% as the industrial-gas
provider's improved operating margins offset a slight decline in
revenue.
The company, whose products include oxygen, helium and welding
and cutting gases, backed its full-year earnings outlook of $5.70
to $5.90 a share. Second-quarter earnings are expected to be $1.32
to $1.37 a share, compared with $1.44 a share expected by analysts
polled by Thomson Reuters.
Chief Executive John McGlade said Air Products' cost reduction
efforts and signings helped boost profits, and said the company was
bringing on new plants in China. Mr. McGlade said in September he
planned to retire this year and the company will add three new
independent directors.
For the quarter ended Dec. 31, Air Products reported earnings of
$290.2 million, or $1.35 a share, up from $278.3 million, or $1.33
a share, a year earlier. Discontinued operations remained flat at a
profit of a penny a share.
The company had predicted per-share adjusted earnings between
$1.30 and $1.35.
Sales slid to $2.55 billion from $2.56 billion a year ago as
slightly lower volumes and stable pricing offset higher energy
pass-through. Analysts recently expected $2.57 billion in
revenue.
The operating margin widened to 15.1% from 14.5% as input costs
fell 1.8%.
Sales in the company's merchant gases segment rose 3.8% to $1.05
billion. Air Products' tonnage gases segment, which provides gases
to refineries and steelmaking industries, reported a 10% drop in
revenue. Sales in electronics and performance materials increased
5.5%.
Shares closed Monday at $106.24 and were inactive premarket. The
stock is up 21% over the past 12 months.
Write to Everdeen Mason at everdeen.mason@wsj.com
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