Air Products increases Q3 net profit, cuts 1,150 jobs

22 July 2009 12:19  [Source: ICIS news]

LONDON (ICIS news)--Air Products posted a 61% year-on-year increase in third quarter net income to $113.2m, but operating income more than halved over the period, the US industrial gases producer said on Wednesday.

Air Products’ sales dropped 28% year on year to $1.98bn, while operating income was down 63% to $143.8m.

The company said it would cut about 1,150 jobs across the global workforce and close some plants to reduce costs.

The positive net profit comparison benefitted from $225m in losses from discontinued operations reported in the second quarter of 2008.

The results included charges of $110m for the company's cost reduction plan, a customer bankruptcy and a pension settlement, the company said.

The company reported weaker volumes, low energy and raw material cost pass-through and unfavourable currency effects.

"While we are still seeing the impact of the global recession on our volumes, we've seen signs of improvement during this quarter in some of our end markets, particularly in Electronics and Asia,” said CEO John McGlade.

“The productivity and continuous improvement efforts of our employees are having an impact, as margins improved substantially both sequentially and versus prior year,” he added.

Air Products, which reported earnings per share (EPS) from continuing operations of $0.54 in the third quarter, said it expected fourth quarter EPS to be in the range of $1.04-1.14.

($1 = €0.70)

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By: Mark Watts
+44 20 8652 3214

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