Air Products & Chemicals Inc.'s (APD) fiscal third-quarter
profit more than doubled on increased volume, though revenue fell
slightly short of analysts' expectations.
The industrial-gas maker raised the low end of its fiscal-year
earnings target, citing based on new business and backlog, and
projected a fourth-quarter profit also of $1.27 to $1.33 a share.
Analysts on average estimated $1.33, according to Thomson
Reuters.
Air Products has been trying since February to acquire Airgas
Inc. (ARG), with bid of $5.3 billion, or $63.50 a share, on the
table. But Airgas on Wednesday said its board voted unanimously to
reject that raised offer as its fiscal first-quarter earnings rose
18% amid its first sales growth since late 2008. The deal, if
successful, will create the largest industrial-gas maker in North
America by revenue.
For the quarter ended June 30, Air Products reported a profit of
$253.2 million, or $1.17 a share, up from $113.2 million, or 53
cents a share, a year earlier. The latest results included a
11-cent tax charge. Air Products had predicted earnings of $1.25 to
$1.29.
Sales increased 14% to $2.25 billion. Analysts most recently
estimated $2.3 billion.
Operating margin rose to 28.5% from 27.8%.
The company's merchant-gases segment, its biggest by revenue,
saw sales rise 4% while operating income increased 5%. Sales at
tonnage gases business--which supplies hydrogen, synthesis gas and
carbon monoxide--climbed 28% and profit jumped 37%.
Shares closed at $70.05 Wednesday and were inactive premarket.
The stock has fallen 14% this year.
-By Jodi Xu, Dow Jones Newswires; 212-416-3037;
jodi.xu@dowjones.com;