Air Products & Chemicals Inc.'s (APD) fiscal third-quarter
profit jumped 29% on continued volume growth in Asia and higher
sales in its electronics and performance materials and tonnage
segments.
The industrial-gas maker also raised its fiscal-year earnings
outlook to $5.70 to $5.75 a share, up 5 cents from its April view.
For the fourth quarter, it projected a per-share profit between
$1.48 and $1.53, bracketing the $1.52 estimate from analysts polled
by Thomson Reuters.
Air Products has posted expectation-beating results on increased
volume in recent quarters as its merchant gases business--its
largest by revenue--continues to grow in Asia. The company, which
withdrew its $5.9 billion hostile takeover offer for rival Airgas
Inc. (ARG) earlier this year, has had to raise prices to keep up
with rising raw material costs.
For the quarter ended June 30, Air Products reported a profit of
$326.5 million, or $1.50 a share, up from $253.2 million, or $1.17
a share, a year earlier. The latest results included a 4 cent
per-share gain in discontinued operations on a tax benefit, while
the year-ago period included a loss on the Airgas transaction and
other items. The company in April predicted earnings of $1.42 and
$1.47.
Revenue rose 14% to $2.58 billion, ahead of analysts' projection
of $2.52 billion.
Operating margin widened to 16.3% from 14.9%.
Sales in Air Products' merchant gases business rose 12%, driven
by higher volume in Asia. The company's tonnage gases segment,
which sells hydrogen, synthesis gas and carbon monoxide to
refineries and other large manufacturers, reported a 20% revenue
increase. Sales in the electronics and performance materials
segment rose 21% while sales in the equipment and energy segment
fell 31%.
Shares closed at $95.41 on Thursday and were inactive premarket.
Through Thursday's close, the stock has gained 33% over the past 12
months.
-By Nathalie Tadena, Dow Jones Newswires; 212-416-3287;
nathalie.tadena@dowjones.com