Air Products Q3 net income rises 29% to $326.5m, sales rise 14%

22 July 2011 14:19  [Source: ICIS news]

HOUSTON (ICIS)--Air Products' fiscal 2011 third-quarter net income rose 29% year on year to $326.5m (€228.6m) as sales rose 14%, the US-based industrial gases major said on Friday.

Air Products’ sales for the three months ended 30 June were $2.58bn. Sales volumes for the period rose 7% year on year, the company added.

Third-quarter operating income from Air Products' four core segements - tonnages gases; merchant gases; electronics and performance materials; equipment and energy - rose 11% year on year to $417m.

"We continued to see strong volume growth across a number of our businesses,” CEO John McGlade said.

“Growth in the Asia merchant business and more broadly in the energy and electronics markets was strong, while both the US and Europe merchant businesses were slower.” he said.

McGlade added that in the three months from April to June, Air Products saw a “significant number” of planned maintenance outages among customers in its industrial tonnage gases business.

Third-quarter operating income in Air Products’ tonnage gases segment fell 4% year on year to $115m, as volume gains were more than offset by higher maintenance costs, primarily from customer scheduled outages.

McGlade also said that the company is taking steps to counter high operating and maintenance costs in its merchant gases segment.

Third-quarter operating income in Air Products’ merchant gases business rose 3% year on year to $182m on favourable currency effects and higher volumes. However, higher operating costs and pricing pressure in Europe mostly offset the improvement.

($1 = €0.70)

For more on Air Products and other producers visit ICIS company intelligence

By: Stefan Baumgarten
+1 713 525 2653

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