Air Products & Chemicals Inc.'s (APD) fiscal first-quarter
profit more than tripled, beating analysts' estimates, as the
company said it benefited from an improving economy and
cost-cutting measures.
The industrial gas maker also raised its earnings target for the
year to $4.75 to $4.95 a share from $4.65 to $4.90 as the global
economy, led by Asia, continues to improve and the company cuts
costs further.
"We continued our margin improvement putting us on track to meet
our 17% goal in 2011," said Chief Executive John McGlade. "Both our
sequential and year-over-year results benefited from an improving
global economy and our efforts to move Air Products to a
sustainable, lower cost structure."
For the quarter ended Dec. 31, Air Products reported a profit of
$251.8 million, or $1.16 a share, up from $68.6 million, or 32
cents, a year earlier. Sales dropped 1% to $2.17 billion.
Analysts polled by Thomson Reuters had most recently forecast
earnings of $1.14 on $2.21 billion in revenue.
Gross margin rose to 27.8% from 25.8%.
The company's merchant-gases segment--its biggest by
revenue--saw sales rise 0.9% while operating income jumped 11%.
Sales at its electronics and performance materials business rose
6.6%, and profit in the segment nearly doubled.
The company also forecast earnings current-quarter earnings from
continuing operations of $1.15 and $1.20 a share, while analysts
expect $1.19.
Shares closed at $79.86 Thursday and were inactive
premarket.
-By Nathan Becker, Dow Jones Newswires; 212-416-2855; nathan.becker@dowjones.com;