LEHIGH VALLEY, Pa.,
July 22 /PRNewswire-FirstCall/ --
Access the Q3 earnings teleconference scheduled for
10:00 a.m. Eastern Time on
July 22 by calling
719-325-2432 and entering passcode 4716570, or listen on
the Web at:
www.airproducts.com/Invest/financialnews/Earnings_Releases/Teleconference.htm.
Highlights
- Sales increased 14% versus prior year, underlying sales up
12%
- Operating margin improved to 16.6%*
- Earnings per share of $1.28, up
22%*
- Fiscal 2010 EPS guidance of $4.94 to
$5.00*
- Recent project awards strengthen backlog
Air Products (NYSE: APD) today reported net income of
$277 million, or diluted earnings per
share (EPS) of $1.28, for its fiscal
third quarter ended June 30, 2010.
This result excludes an after-tax charge of $24 million, or $0.11 per share, for costs associated with the
tender offer for the outstanding shares of Airgas, Inc.
The discussion of third quarter results and guidance in this
release is based on non-GAAP comparisons. A reconciliation can be
found at the end of this release.*
Third quarter revenues of $2,252
million increased 14 percent from the prior year, and
operating income of $374 million rose
22 percent from the prior year on significantly improved
volumes.
John McGlade, chairman, president
and chief executive officer, said, "Our Tonnage, Merchant, and
Electronics and Performance Materials businesses had significant
increases in volume this quarter. Our continued improvements in
margin, earnings growth and return on capital show that we remain
focused on delivering the value our shareholders expect."
Third Quarter Segment Performance
- Merchant Gases sales of $915
million increased 4 percent versus prior year on improved
volumes across all regions. Operating income of $176 million improved 5 percent versus prior year
on better volumes. Volumes were particularly strong in Asia and are improving in both the US and
Europe liquid bulk
businesses.
- Tonnage Gases sales of $725
million were up 28 percent from the prior year, principally
due to new projects coming onstream and improved volumes from
existing steel and chemicals customers. Higher energy and raw
material cost pass-through also contributed. Operating income of
$120 million increased 37 percent on
higher volumes.
- Electronics and Performance Materials sales of
$497 million improved 21 percent, and
operating income of $62 million
increased 60 percent over the prior year mainly on higher volumes,
which have recovered to pre-recession levels. Electronics
sales increased 18 percent versus prior year and 11 percent
sequentially on improved volumes driven by higher customer
utilization. The recent restructuring efforts in Electronics have
been completed. Performance Materials volumes grew 26 percent
versus prior year and improved 10 percent sequentially on strength
in the underlying business supported by new product sales.
- Equipment and Energy sales of $116 million were down slightly versus the prior
year. Operating income of $21 million
increased from the prior year on higher LNG activity.
Outlook
McGlade said, "As the global economy recovers, we are well
positioned to serve our broad customer base. As seen by the recent
announcements from our Tonnage and Electronics businesses, we
continue to win new business and our project backlog remains
strong. Successes in applications development have generated
substantial new business signings in our Merchant segment. Our
operating leverage across the company will continue to drive margin
improvement. We expect earnings growth to exceed 20 percent for
fiscal 2010 and are on track to hit our margin goal of 17 percent
in 2011."
Air Products now expects fourth quarter EPS from continuing
operations to be between $1.27 and
$1.33 per share and full-year EPS from continuing operations
to be between $4.94 and $5.00 per
share.
Air Products (NYSE: APD) serves customers in industrial, energy,
technology and healthcare markets worldwide with a unique portfolio
of atmospheric gases, process and specialty gases, performance
materials, and equipment and services. Founded in 1940,
Air Products has built leading positions in key growth markets
such as semiconductor materials, refinery hydrogen, home healthcare
services, natural gas liquefaction, and advanced coatings and
adhesives. The company is recognized for its innovative culture,
operational excellence and commitment to safety and the
environment. In fiscal 2009, Air Products had revenues of
$8.3 billion, operations in over 40
countries, and 18,900 employees around the globe. For more
information, visit www.airproducts.com.
NOTE: The information above contains "forward-looking
statements," within the safe harbor provisions of the Private
Securities Litigation Reform Act of 1995, including earnings
guidance for the fourth quarter and full year. These
forward-looking statements are based on management's reasonable
expectations and assumptions as of the date of this press release.
Actual performance and financial results may differ materially from
projections and estimates expressed in the forward-looking
statements because of many factors, including, without limitation,
stalling of the global economic recovery; renewed deterioration in
economic and business conditions; weakening demand for the
Company's products, future financial and operating performance of
major customers and industries served by the Company; unanticipated
contract terminations or customer cancellations or postponement of
projects and sales; asset impairments due to economic conditions or
specific product or customer events; the impact of competitive
products and pricing; interruption in ordinary sources of supply of
raw materials; the ability to recover unanticipated increased
energy and raw material costs from customers; costs and outcomes of
litigation or regulatory activities; consequences of acts of war or
terrorism impacting the United
States' and other markets; the effects of a pandemic or
epidemic or a natural disaster; charges related to current
portfolio management and cost reduction actions; the success of
implementing cost reduction programs and achieving anticipated
acquisition synergies; the timing, impact, and other uncertainties
of future acquisitions or divestitures; significant fluctuations in
interest rates and foreign currencies from that currently
anticipated; the continued availability of capital funding sources
in all of the Company's foreign operations; the impact of new or
changed environmental, healthcare, tax or other legislation and
regulations in jurisdictions in which the Company and its
affiliates operate; the impact of new or changed financial
accounting standards; and the timing and rate at which tax credits
can be utilized and other risk factors described in the Company's
Form 10-K for its fiscal year ended September 30, 2009. The Company disclaims any
obligation or undertaking to disseminate any updates or revisions
to any forward-looking statements contained in this document to
reflect any change in the Company's assumptions, beliefs or
expectations or any change in events, conditions or circumstances
upon which any such forward-looking statements are based.
*The presentation of non-GAAP measures is intended to enhance
the usefulness of financial information by providing measures which
the Company’s management uses internally to evaluate the Company’s
baseline performance. Presented below are reconciliations of
reported GAAP results to non-GAAP measures.
CONSOLIDATED
RESULTS
|
|
|
|
Continuing
Operations
|
|
|
Q3
|
Q3
|
Q3
|
Q4
|
YTD
|
|
Millions of dollars
|
Operating
Income
|
Net
Income
|
Diluted
EPS
|
Diluted
EPS
|
Diluted
EPS
|
|
2010 GAAP
|
$336.4
|
|
$1.17
|
|
|
|
2009 GAAP
|
143.8
|
|
.54
|
|
|
|
% Change GAAP
|
134%
|
|
117%
|
|
|
|
|
|
|
|
|
|
|
2010 GAAP
|
$336.4
|
$253.2
|
$1.17
|
|
|
|
Acquisition-related
costs
(tax impact $14.2)
(a)
|
37.9
|
23.7
|
.11
|
|
|
|
2010 Non-GAAP Measure
|
$374.3
|
$276.9
|
$1.28
|
|
|
|
|
|
|
|
|
|
|
2009 GAAP
|
$143.8
|
$114.6
|
$.54
|
|
$3.00
|
|
Global cost reduction
plan
(Q3 tax impact $39.8)
(b)
|
124.0
|
84.2
|
.39
|
|
.94
|
|
Customer
bankruptcy and asset actions
(Q3 tax impact $11.1)
(c)
|
32.1
|
21.0
|
.10
|
|
.10
|
|
Pension settlement
(Q3 tax impact $3.0)
(a)
|
8.0
|
5.0
|
.02
|
|
.02
|
|
2009 Non-GAAP Measure
|
$307.9
|
$224.8
|
$1.05
|
|
$4.06
|
|
|
|
|
|
|
|
|
% Change Non-GAAP
Measure
|
22%
|
23%
|
22%
|
|
|
|
|
|
|
|
|
|
|
2010 Guidance (d)
|
|
|
|
$1.27-$1.33
|
$4.94-$5.00
|
|
2009 GAAP
|
|
|
|
|
$3.00
|
|
% Change
|
|
|
|
|
65%-67%
|
|
|
|
|
|
|
|
|
% Change Non-GAAP
Measure
|
|
|
|
|
22%-23%
|
|
|
|
|
|
|
|
|
|
|
|
Q3
Sales
|
Q3
Operating
Income
|
Margin
|
|
2010 GAAP
|
|
|
$2,252.3
|
$336.4
|
14.9%
|
|
2010 Non-GAAP Measure
|
|
|
2,252.3
|
374.3
|
16.6%
|
|
|
|
|
|
|
|
|
(a) Based on statutory tax rate
of 37.4%
(b) Based on average
statutory tax rate of
32.1%
(c) Based on average statutory
tax rate of 34.6%
(d) Guidance excludes the impact
of acquisition-related costs
|
|
|
|
|
|
|
|
AIR PRODUCTS AND CHEMICALS, INC.
and Subsidiaries
CONSOLIDATED INCOME
STATEMENTS
(Unaudited)
|
|
|
Three Months
Ended
30 June
|
Nine Months Ended
30 June
|
|
(Millions of dollars, except for
share data)
|
2010
|
2009
|
2010
|
2009
|
|
Sales
|
$2,252.3
|
$1,976.2
|
$6,674.8
|
$ 6,126.9
|
|
Cost of sales
|
1,611.0
|
1,427.5
|
4,808.3
|
4,497.1
|
|
Selling and
administrative
|
241.2
|
232.3
|
725.7
|
709.9
|
|
Research and
development
|
29.3
|
24.1
|
82.8
|
86.9
|
|
Global cost reduction
plan
|
—
|
124.0
|
—
|
298.2
|
|
Acquisition-related
costs
|
37.9
|
—
|
61.3
|
—
|
|
Customer bankruptcy
|
(1.8)
|
22.2
|
(1.8)
|
22.2
|
|
Pension settlement
|
6.3
|
8.0
|
6.3
|
8.0
|
|
Other (income), net
|
(8.0)
|
(5.7)
|
(29.8)
|
(13.7)
|
|
Operating Income
|
336.4
|
143.8
|
1,022.0
|
518.3
|
|
Equity affiliates'
income
|
32.5
|
28.5
|
91.6
|
80.0
|
|
Interest expense
|
30.0
|
27.5
|
91.1
|
94.0
|
|
Income from Continuing
Operations before Taxes
|
338.9
|
144.8
|
1,022.5
|
504.3
|
|
Income tax
provision
|
77.6
|
25.4
|
246.0
|
99.0
|
|
Income from Continuing
Operations
|
261.3
|
119.4
|
776.5
|
405.3
|
|
Loss from Discontinued
Operations, net of tax
|
—
|
(1.4)
|
—
|
(6.5)
|
|
Net Income
|
261.3
|
118.0
|
776.5
|
398.8
|
|
Less: Net Income Attributable to
Noncontrolling Interests
|
8.1
|
4.8
|
19.5
|
11.4
|
|
Net Income Attributable to Air
Products
|
$253.2
|
$113.2
|
$757.0
|
$387.4
|
|
|
|
|
|
|
|
Net Income Attributable to Air
Products
|
|
|
|
|
|
Income from continuing
operations
|
$253.2
|
$114.6
|
$757.0
|
$393.9
|
|
Loss from discontinued
operations
|
—
|
(1.4)
|
—
|
(6.5)
|
|
Net Income Attributable to Air
Products
|
$253.2
|
$113.2
|
$757.0
|
$387.4
|
|
|
|
|
|
|
|
Basic Earnings per Common Share
Attributable to Air Products
|
|
|
|
|
|
Income from continuing
operations
|
$1.19
|
$.55
|
$3.57
|
$1.88
|
|
Loss from discontinued
operations
|
—
|
(.01)
|
—
|
(.03)
|
|
Net Income Attributable to Air
Products
|
$1.19
|
$.54
|
$3.57
|
$1.85
|
|
Diluted Earnings per Common
Share Attributable to Air Products
|
|
|
|
|
|
Income from continuing
operations
|
$1.17
|
$.54
|
$3.49
|
$1.85
|
|
Loss from discontinued
operations
|
—
|
(.01)
|
—
|
(.03)
|
|
Net Income Attributable to Air
Products
|
$1.17
|
$.53
|
$3.49
|
$1.82
|
|
Weighted Average of Common
Shares Outstanding
(in millions)
|
212.3
|
209.8
|
212.0
|
209.6
|
|
Weighted Average of Common
Shares Outstanding
Assuming Dilution
(in millions)
|
216.9
|
214.0
|
216.9
|
212.8
|
|
Dividends Declared per Common
Share – Cash
|
$.49
|
$.45
|
$1.43
|
$1.34
|
|
Other Data from Continuing
Operations:
|
|
|
|
|
|
Depreciation and
amortization
|
$214.4
|
$217.1
|
$648.8
|
$614.8
|
|
Capital
expenditures on a non-GAAP Basis
(see reconciliation at end of
announcement)
|
294.5
|
356.1
|
993.7
|
1,041.8
|
|
|
|
|
|
|
|
|
AIR PRODUCTS AND CHEMICALS, INC.
and Subsidiaries
CONDENSED CONSOLIDATED BALANCE
SHEETS
(Unaudited)
|
|
(Millions of dollars)
|
30 June
2010
|
30 September
2009
|
|
Assets
|
|
|
|
Current Assets
|
|
|
|
Cash and cash items
|
$405.3
|
$488.2
|
|
Trade receivables, less
allowances for doubtful accounts
|
1,416.4
|
1,363.2
|
|
Inventories
|
499.2
|
509.6
|
|
Contracts in progress, less
progress billings
|
120.6
|
132.3
|
|
Prepaid expenses
|
72.8
|
99.7
|
|
Other receivables and current
assets
|
431.1
|
404.8
|
|
Total Current
Assets
|
2,945.4
|
2,997.8
|
|
Investment in Net Assets of and
Advances to Equity Affiliates
|
856.9
|
868.1
|
|
Plant and Equipment,
at cost
|
15,646.9
|
15,751.3
|
|
Less: Accumulated
depreciation
|
8,876.1
|
8,891.7
|
|
Plant and
Equipment, net
|
6,770.8
|
6,859.6
|
|
Goodwill
|
842.5
|
916.0
|
|
Intangible Assets,
net
|
263.9
|
262.6
|
|
Noncurrent Capital Lease
Receivables
|
738.1
|
687.0
|
|
Other Noncurrent
Assets
|
581.8
|
438.0
|
|
Total Assets
|
$12,999.4
|
$13,029.1
|
|
|
|
|
|
Liabilities and
Equity
|
|
|
|
Current
Liabilities
|
|
|
|
Payables and accrued
liabilities
|
$1,415.3
|
$1,674.8
|
|
Accrued income taxes
|
75.9
|
42.9
|
|
Short-term
borrowings
|
341.2
|
333.8
|
|
Current
portion of long-term debt
|
480.4
|
452.1
|
|
Total Current
Liabilities
|
2,312.8
|
2,503.6
|
|
Long-Term Debt
|
3,366.4
|
3,715.6
|
|
Deferred Income and Other
Noncurrent Liabilities
|
1,474.7
|
1,522.0
|
|
Deferred Income
Taxes
|
473.6
|
357.9
|
|
Total Liabilities
|
7,627.5
|
8,099.1
|
|
Total Air Products Shareholders'
Equity
|
5,231.4
|
4,791.9
|
|
Noncontrolling
Interests
|
140.5
|
138.1
|
|
Total Equity
|
5,371.9
|
4,930.0
|
|
Total Liabilities and
Equity
|
$12,999.4
|
$ 13,029.1
|
|
|
|
|
|
|
AIR PRODUCTS AND CHEMICALS, INC.
and Subsidiaries
CONSOLIDATED STATEMENTS OF CASH
FLOWS
(Unaudited)
|
|
|
Nine Months Ended
30 June
|
|
(Millions of dollars)
|
2010
|
2009
|
|
Operating
Activities
|
|
|
|
Net Income
|
$776.5
|
$398.8
|
|
Less: Net income attributable to
noncontrolling interests
|
19.5
|
11.4
|
|
Net income attributable to Air
Products
|
$757.0
|
$387.4
|
|
Adjustments to reconcile income
to cash provided by operating activities:
|
|
|
|
Depreciation and
amortization
|
648.8
|
614.8
|
|
Impairment of assets of
continuing operations
|
3.8
|
67.7
|
|
Impairment of assets of
discontinued operations
|
—
|
48.7
|
|
Deferred income taxes
|
80.7
|
(41.6)
|
|
Undistributed earnings of
unconsolidated affiliates
|
(35.2)
|
(45.5)
|
|
(Gain) loss on sale of assets
and investments
|
(9.1)
|
7.0
|
|
Share-based
compensation
|
36.6
|
45.1
|
|
Noncurrent
capital lease receivables
|
(72.7)
|
(74.9)
|
|
Acquisition-related
costs
|
52.5
|
—
|
|
Customer bankruptcy
|
—
|
22.2
|
|
Other adjustments
|
35.5
|
(28.8)
|
|
Working
capital changes that provided (used) cash, excluding effects
of
acquisitions and
divestitures:
|
|
|
|
Trade receivables
|
(151.3)
|
160.0
|
|
Inventories
|
(9.5)
|
(10.8)
|
|
Contracts in progress
|
4.6
|
29.8
|
|
Payables and accrued
liabilities
|
(315.9)
|
(313.2)
|
|
Other working capital
|
7.4
|
(2.9)
|
|
Cash Provided by Operating
Activities
|
1,033.2
|
865.0
|
|
Investing
Activities
|
|
|
|
Additions to plant and
equipment
|
(757.2)
|
(899.3)
|
|
Acquisitions, less cash
acquired
|
(37.2)
|
(29.8)
|
|
Investment in and advances to
unconsolidated affiliates
|
(4.7)
|
(1.1)
|
|
Investment in Airgas
stock
|
(69.6)
|
—
|
|
Proceeds from sale of assets and
investments
|
32.6
|
30.1
|
|
Proceeds from sale of
discontinued operations
|
—
|
39.0
|
|
Change in restricted
cash
|
28.2
|
82.2
|
|
Cash Used for Investing
Activities
|
(807.9)
|
(778.9)
|
|
Financing
Activities
|
|
|
|
Long-term debt
proceeds
|
110.9
|
120.9
|
|
Payments on long-term
debt
|
(109.8)
|
(70.0)
|
|
Net (decrease) increase in
commercial paper and short-term borrowings
|
(50.0)
|
99.2
|
|
Dividends paid to
shareholders
|
(294.6)
|
(278.8)
|
|
Proceeds from stock option
exercises
|
42.3
|
14.9
|
|
Excess tax benefit from
share-based compensation
|
11.1
|
4.1
|
|
Other financing
activities
|
(9.9)
|
(7.8)
|
|
Cash Used for Financing
Activities
|
(300.0)
|
(117.5)
|
|
|
|
|
|
|
AIR PRODUCTS AND CHEMICALS, INC.
and Subsidiaries
CONSOLIDATED STATEMENTS OF CASH
FLOWS (CONTINUED)
(Unaudited)
|
|
|
Nine Months Ended
30 June
|
|
(Millions of dollars)
|
2010
|
2009
|
|
Effect of Exchange Rate Changes
on Cash
|
(8.2)
|
(1.8)
|
|
Decrease in Cash and Cash
Items
|
(82.9)
|
(33.2)
|
|
Cash and Cash Items – Beginning
of Year
|
488.2
|
103.5
|
|
Cash and Cash Items – End of
Period
|
$405.3
|
$70.3
|
|
|
|
|
|
Supplemental Cash Flow
Information
|
|
|
|
Pension plan
contributions
|
$348.2
|
$169.5
|
|
Significant noncash
transactions:
|
|
|
|
Short-term
borrowings associated with SAGA acquisition
|
54.6
|
—
|
|
Noncurrent
liability related to the purchase of shares from
noncontrolling
interests
|
39.8
|
—
|
|
|
|
|
|
|
|
|
|
|
AIR PRODUCTS AND CHEMICALS, INC.
and Subsidiaries
SUMMARY BY BUSINESS
SEGMENTS
(Unaudited)
|
|
|
Three Months
Ended
30 June
|
Nine Months Ended
30 June
|
|
(Millions of dollars)
|
2010
|
2009
|
2010
|
2009
|
|
Revenues from External
Customers
|
|
|
|
|
|
Merchant Gases
|
$915.0
|
$882.6
|
$2,770.3
|
$2,678.2
|
|
Tonnage Gases
|
724.5
|
565.0
|
2,179.1
|
1,933.6
|
|
Electronics and Performance
Materials
|
496.9
|
409.2
|
1,381.5
|
1,148.0
|
|
Equipment and Energy
|
115.9
|
119.4
|
343.9
|
367.1
|
|
Segment and Consolidated
Totals
|
$2,252.3
|
$1,976.2
|
$6,674.8
|
$6,126.9
|
|
|
|
|
|
|
|
Operating Income
|
|
|
|
|
|
Merchant Gases
|
$176.4
|
$168.8
|
$544.1
|
$495.5
|
|
Tonnage Gases
|
119.8
|
87.6
|
327.2
|
294.4
|
|
Electronics and Performance
Materials
|
62.4
|
39.0
|
167.8
|
52.5
|
|
Equipment and Energy
|
21.1
|
13.1
|
47.1
|
36.4
|
|
Segment Totals
|
$379.7
|
$308.5
|
$1,086.2
|
$878.8
|
|
Global cost reduction
plan
|
—
|
(124.0)
|
—
|
(298.2)
|
|
Acquisition-related
costs
|
(37.9)
|
—
|
(61.3)
|
—
|
|
Customer bankruptcy and asset
actions
|
1.8
|
(32.1)
|
1.8
|
(32.1)
|
|
Pension settlement
|
(6.3)
|
(8.0)
|
(6.3)
|
(8.0)
|
|
Other
|
(.9)
|
(.6)
|
1.6
|
(22.2)
|
|
Consolidated
Totals
|
$336.4
|
$143.8
|
$1,022.0
|
$518.3
|
|
|
|
|
|
|
|
30 June
|
30 September
|
|
(Millions of dollars)
|
2010
|
2009
|
|
Identifiable Assets
(a)
|
|
|
|
Merchant Gases
|
$4,734.8
|
$4,917.0
|
|
Tonnage Gases
|
3,752.5
|
3,597.8
|
|
Electronics and Performance
Materials
|
2,195.4
|
2,249.5
|
|
Equipment and Energy
|
311.1
|
303.3
|
|
Segment Totals
|
$10,993.8
|
$11,067.6
|
|
Other
|
1,148.7
|
1,093.4
|
|
Consolidated
Totals
|
$12,142.5
|
$12,161.0
|
|
|
|
|
|
(a) Identifiable assets are
equal to total assets less investments in and advances to equity
affiliates.
|
|
|
|
|
AIR PRODUCTS AND CHEMICALS, INC.
and Subsidiaries
|
|
NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS
|
|
(Unaudited)
|
|
|
(Millions of dollars, except for share data)
AIRGAS TRANSACTION
In February 2010, the Company
commenced a tender offer to acquire all the outstanding common
stock of Airgas, Inc. (Airgas), including the associated preferred
stock purchase rights, for $60.00 per
share in cash. Airgas, a Delaware
company, is the largest U.S. distributor of industrial, medical,
specialty gases and hardgoods. On 8 July
2010, the Company increased the value of its tender offer to
$63.50 per share. The total value of
the transaction approximates $7.3
billion, including $5.5
billion of equity and $1.8
billion of assumed debt. The offer and withdrawal rights are
scheduled to expire on 13 August
2010, unless further extended.
Prior to the tender offer, the Company purchased approximately
1.5 million shares of Airgas stock for $69.6. This amount was recorded as an
available-for-sale investment within other noncurrent assets on the
consolidated balance sheet. For the nine months ended 30 June 2010, an after-tax unrealized holding
gain of $15.4 was recorded in other
comprehensive income within total equity on the consolidated
balance sheet.
In connection with this tender offer, the Company has secured
committed financing in the form of a $6.7
billion term loan credit facility. Fees incurred to secure
this credit facility have been deferred and are being amortized
over the term of the arrangement.
For the three and nine months ended 30
June 2010, $37.9 ($23.7 after-tax, or $.11 per share) and $61.3 ($38.3
after-tax, or $.18 per share),
respectively, in expense was recognized related to this transaction
and is included within acquisition-related costs on the
consolidated income statement. This includes amortization of the
fees related to the term loan credit facility and other
acquisition-related costs.
RECONCILIATION
|
|
NON-GAAP MEASURE
|
|
|
The Company utilizes a non-GAAP measure in the computation of
capital expenditures and includes spending associated with
facilities accounted for as capital leases and purchases of
noncontrolling interests. Certain contracts associated with
facilities that are built to provide product to a specific customer
are required to be accounted for as leases, and such spending is
reflected as a use of cash within cash provided by operating
activities. Additionally, the purchase of noncontrolling interests
in a subsidiary is accounted for as an equity transaction and will
be reflected as a financing activity in the statement of cash
flows.
The presentation of this non-GAAP measure is intended to enhance
the usefulness of information by providing a measure which the
Company's management uses internally to evaluate and manage the
Company's expenditures.
Below is a reconciliation of capital expenditures on a GAAP
basis to a non-GAAP measure.
|
|
|
Three Months
Ended
30 June
|
Nine Months Ended
30 June
|
|
(Millions of dollars)
|
2010
|
2009
|
2010
|
2009
|
|
Capital expenditures – GAAP
basis
|
$236.8
|
$312.7
|
$853.7
|
$930.2
|
|
Capital lease
expenditures
|
17.9
|
43.4
|
100.2
|
111.6
|
|
Noncurrent
liability related to purchase of shares from
noncontrolling
interests
|
39.8
|
—
|
39.8
|
—
|
|
Capital expenditures – non-GAAP
basis
|
$294.5
|
$356.1
|
$993.7
|
$1,041.8
|
|
|
|
|
|
|
|
|
SOURCE Air Products