US Air Products fiscal Q2 net income falls 2.7% to $296m

24 April 2012 11:40  [Source: ICIS news]

LONDON (ICIS)--Air Products’ net income in its fiscal second quarter was hit by lower demand, falling 2.7% year on year to $296m from the same period the year before, the US industrial gases major said on Tuesday.

Sales for the three months ended on 31 March 2012 fell 2.4% to $2.34bn (€1.78bn) on lower-than-expected volumes and a stronger dollar.

Air Products’ operating income fell by 27% to $287.9m compared with the same period the year before.

"Overall, second-quarter volumes were below our expectations, as business activity did not pick up as much as we expected,” said John McGlade, chairman, president and CEO of Air Products.

“With Europe in recession, we have taken actions to improve our business portfolio and cost positions. While our volumes were held down by lower demand, we did see positive impact from our pricing efforts and new plants," he added.

Looking ahead, McGlade said: "We are entering the second half of the year at lower levels of business activity than originally anticipated, reducing growth in both sales and earnings for fiscal 2012.”

The CEO expects the group’s capital spending for its fiscal year to come in at approximately $2.2bn.

“We expect to sign a record amount of new business this year and to continue to deliver gains in productivity that will contribute to strong, profitable growth," he said.

Air Products expects third-quarter adjusted earnings per share from continuing operations to be between $1.40-1.45 per share. The company's adjusted guidance for continuing operations for fiscal 2012 is $5.47-5.60 per share.

($1 = €0.76)

By: Franco Capaldo
+44 (0)20 8652 3214

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