DOW JONES NEWSWIRES
Air Products & Chemicals Inc.'s (APD) fiscal second-quarter
profit rose 30% on higher volumes and margins.
The industrial-gas maker also raised its earnings target for the
year to $4.90 to $5 a share from $4.75 to $4.95. The company also
raised current-quarter estimates for earnings from continuing
operations to $1.25 to $1.29 from $1.15 to $1.20.
"We are seeing improvement across our businesses. Our second
quarter had strong underlying revenue growth, continued margin
improvement and significant earnings growth," said Chairman and
Chief Executive John McGlade.
The company has embarked on a $5.12 billion hostile takeover
effort for Airgas Inc. (ARG). The deal, if successful, will create
the largest industrial-gas maker in North America by revenue.
Air Products reported a profit of $252 million, or $1.16 a
share, up from $205.6 million, or 97 cents a share, a year earlier.
The latest results included a 7-cent charge related to the Airgas
bid. Air Products had predicted earnings of $1.15 to $1.20.
Sales increased 15% to $2.25 billion amid improved volumes
especially in tonnage gases and electronics and performance
materials. Analysts polled by Thomson Reuters most recently
estimated $2.25 billion.
Operating margin rose to 15.1% from 13.3%.
The company's merchant-gases segment--its biggest by
revenue--saw sales rise 6% while operating income jumped 14% on
higher volumes and lower costs. Sales at its electronics and
performance materials business, which makes intermediate chemicals
that enhances performance such as coating quality, rose 36%.
Shares closed at $76.67 Wednesday and were inactive
premarket.
-By Jodi Xu, Dow Jones Newswires; 212-416-3037;
jodi.xu@dowjones.com