US Air Products fiscal Q2 net income up 3.7% to $289m

23 April 2013 13:53  [Source: ICIS news]

LONDON (ICIS)--Air Products’ fiscal second-quarter net income from continuing operations increased by 3.7% year on year to $289m (€223m) on higher sales, the US-based industrial gases major said on Tuesday.

Sales of $2.48bn for the quarter ended 31 March 2013 were 6.0% higher than in the same period in the previous year. Air Products said acquisitions contributed 6% to sales.

The group’s operating income from continuing operations in its fiscal second-quarter rose 35% year on year to $390m.

John McGlade, chairman, president and CEO, said: “Good cost performance helped offset weaker-than-expected volumes in the second quarter. Global economic growth continued to be a challenge, with a slower US, contraction in Europe, softness in China, and an electronics market much weaker than we expected.

“With a project backlog totalling over $3bn and significant leverage to an economic recovery, Air Products remains well positioned for growth over the long term,” he added.

Sales during the quarter from the group’s Merchant Gases business rose 14% to $1.0bn, while its Tonnage Gases segment sales grew 3% to $809m versus the prior-year period on new plant volumes and higher energy pass-through.

Equipment and Energy business sales of $124m increased 12% versus the same quarter of the company's last year, due to higher liquefied natural gas project activity, while sales in Air Products’ Electronics and Performance Materials segment fell 3% to $549m.

Looking ahead, McGlade said: “Given the weakness we saw coming out of Q2, we are tempering our expectations for economic growth in the second half of our fiscal year …. In light of our view of continuing slow growth, we are actively assessing whether there are additional actions we can take that would result in increased value to our shareholders.”

($1 = €0.77)

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

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