DOW JONES NEWSWIRES
Air Products & Chemicals Inc.'s (APD) fiscal second-quarter
profit jumped 21% on higher sales volumes in its major segments and
increased revenue from Asia.
The results beat expectations.
The industrial-gas maker also raised its current fiscal-year
earnings outlook by 5 cents over its most recent February forecast
to $5.65 to $5.75 a share. For the current quarter, Air Products
projected a per-share profit between $1.42 and $1.47, bracketing
the $1.45 estimate from analysts polled by Thomson Reuters.
Air Products has posted expectation-beating results of late as
its merchant gases business, its largest by revenue, grows on
booming sales in Asia. Rising raw materials costs have forced the
company to hike prices, but it still managed to raise its quarterly
dividend 18% last month in a bid to return value to shareholders
after the company's bruising attempt to take over rival Airgas Inc.
(ARG).
For the quarter ended March 31, Air Products reported a profit
of $304.3 million, or $1.39 a share, up from $252 million, or $1.16
a share, a year earlier. The latest results included 2 cents a
share in after-tax charges related to the failed Airgas bid. The
company in January had predicted earnings of $1.36 to $1.40.
Revenue rose 11% to $2.5 billion, ahead of Wall Street
expectations of $2.43 billion.
Operating margin widened to 16.8% from 15.1%.
Sales in Air Products' merchant gases business rose 10% on
higher volumes, especially in Asia. The company's tonnage gases
segment, which sells hydrogen, synthesis gas and carbon monoxide to
refineries and other large manufacturers, reported a 5.6% revenue
increase. Sales in the electronics and performance materials
segment surged 28% on higher volumes and pricing.
Shares closed Wednesday at $93.72 and were inactive premarket.
The stock has gained 22% over the past 12 months.
-By Drew FitzGerald, Dow Jones Newswires; 212-416-2909; Andrew.FitzGerald@dowjones.com