Edited from: “2008 outlook” and 10-K annual report 2007
Air Products states that it is transforming itself into a “more focused, less cyclical, higher growth and higher return” company. Following double-digit sales and earnings growth, the company says that it overcame challenges such as the previous year’s hurricanes; its decision to explore the sale and restructuring of a major portion of its chemicals business; the divesture of its amines business and its dinitrotoluene (DNT) plant in Geismar, Louisiana, US; and the acquisition of Tomah3 Products to grow its Performance Materials business. 
The reorganising of Air Products is believed to be consistent with its strategy of “going forward”.
“We begin our fiscal year building off the strong momentum we experienced in our fourth quarter. While we expect slower economic growth in 2008, we see healthy top-line growth continuing to drive higher earnings and returns”, says chairman and chief executive officer, John Jones.
The company anticipates earnings growth of between $3.84 and $4/share in fiscal 2008, up 10-14% from fiscal 2007.
Outlook for 2008
Air Products will continue to drive productivity improvements as it focuses on achieving its 2008 return on capital goal of 12.5%;
Its R&D investment should approximate 2007 levels and will continue to be focused on the requirements of emerging businesses;
The company expects interest incurred to be higher relative to 2007. The increase is expected to result from a higher average debt balance as the company continues its $1,500 share repurchase programme and makes additional pension contributions;
The company expects the effective tax rate in 2008 to remain approximately equal to the 2007 adjusted rate of 27.1%. The 2007 adjusted rate excludes the impact of the sale of the DNT production facility, the global cost reduction plan charge, and the impairment of loans receivable;
and
The company is currently marketing its Polymer Emulsions business and actively engaging its partner and potential buyers. The company continues to make progress on the restructuring of its polyurethane intermediates business.
ICIS Chemical Business magazine has unveiled the ICIS Top 100 Chemical Companies, with rankings based on 2008 sales.
A PDF of the ICIS Top 100 Chemical Companies is available for download on ICIS connect.
See the article and analysis of the ICIS Top 100 on ICIS news.
Financial highlights: Air Products, year ended 30 September
| |
2009 |
2008 |
2007 |
2006 |
2005 |
| Sales ($ m) |
8,256 |
10,414.5 |
9,148 |
8,753 |
7,673 |
| Operating Profit ($ m) |
846 |
1,496 |
1,376 |
1,056 |
991 |
| Net Profit ($ m) |
631 |
910 |
1,036 |
723 |
712 |
| Total Assets ($ m) |
13,079.5 |
12,571 |
12,659.5 |
11,181 |
10,409 |
|
Diluted earnings per share ($) |
2.96 |
4.15 |
4.64 |
3.18 |
3.08 |
| Number of Employees |
18,900 |
22,000 |
22,100 |
20,700 |
20,200 |
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Air Products
Company Structure
Air Products serves customers in industrial, energy, technology and healthcare markets worldwide with a portfolio of atmospheric gases, process and specialty gases, performance materials, and equipment and services. Air Products was founded in 1940 with the concept of on-site production and selling of industrial gases, primarily oxygen.
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