Air Products & Chemicals Inc.'s (APD) fiscal fourth-quarter
profit fell a less-than-feared 6.8% as sales continued to decline,
but it said it is seeing a pickup in business.
Air Products said much of the 22% revenue drop was due to lower
prices and currency changes. Meanwhile, the company saw lower
volumes in its merchant gases and electronic and performance
materials segments.
"Sequentially, we are seeing volume improvement in all our
businesses," said Chief Executive John McGlade. "We see significant
future opportunities in the evolving energy, environment and
emerging market sectors."
The industrial gas maker has cut staff and costs as it has
streamlined its portfolio amid declining sales. The company on
Monday sold its Norwegian inert gas generation business and earlier
this quarter, it shed its polyurethane prepolymers business. The
company noted Wednesday it had completed its planned divestiture in
the U.S. health care business.
For the quarter ended Sept. 30, Air Products reported earnings
of $243.9 million, or $1.13 a share, down from $261.6 million, or
$1.21, a year earlier. Sales fell to $2.13 billion. Analysts polled
by Thomson Reuters had most most recently forecast earnings of
$1.12 a share on $2.09 billion in sales.
Gross margin rose to 27.4% from 25.3%.
Looking ahead, the company said it expects fiscal first-quarter
earnings of $1.07 to $1.15 a share and a profit of $4.65 to $4.90
for the year. Analysts on average projected $1.14 and $4.76,
respectively.
Shares closed at $83.24 Tuesday and didn't trade premarket. They
have gained 66% this year.
-By Nathan Becker, Dow Jones Newswires; 212-416-2855; nathan.becker@dowjones.com;