23 April 2014 21:50 [Source: ICIS news]
HOUSTON (ICIS)--The severe weather that gripped much of the US this winter cost Air Products 3-4 cents/share of earnings in fiscal Q2, the US-based merchant gases producer said on Wednesday.
The culprit was not feedstock shortages but a run-up in electricity prices fuelled by the surge in natural gas prices that occurred while in the deepest throes of winter, said Scott Crocco, chief financial officer of Air Products. He made his comments during a fiscal Q2 earnings conference call.
“The biggest driver of the weather impact that we saw in the second quarter was from power, including especially in the northeast and the Midwest where … the feedstock for power is going to be natural gas, and there was a big run-up in natural gas,” Crocco said.
Air Products had a fiscal Q2 net income of $283.5m, down 2.4% year on year.
Crocco and CEO John McGlade both said that the company expects to make up the weather-related losses in its fiscal third and fourth quarters.
Director of investor relations Simon Moore said the company would work to recover the impact “through pricing”.
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