Air Products & Chemicals Posts Higher 2Q Results, Expects Declines for 3Q

   By Dave Sebastian

Air Products & Chemicals Inc. posted higher profit and sales for its fiscal second quarter as pricing and volume rose, though it expects more pronounced declines in the third quarter due to the Covid-19 pandemic.

The Allentown, Pa., atmospheric gas manufacturer reported earnings of $477.8 million, or $2.15 a share, compared with $421.3 million, or $1.90 a share, in the same period last year. The Covid-19 pandemic hurt earnings by 6 cents a share to 8 cents a share, the company said.

Adjusted earnings were $2.04 a share, missing the $2.08 a share analysts polled by FactSet were expecting.

The company also withdrew its guidance for fiscal 2020 and isn't providing earnings guidance for the third quarter.

Sales rose to $2.22 billion from $2.19 billion, ahead of the $2.16 billion analysts had expected. Business growth, new plants, acquisition and a short-term contract in Asia drove sales, the company said, partially offset by an approximately 1% effect of Covid-19.

The company said Asia merchant volumes fell about 25% for about six weeks following the Lunar New Year holiday before recovering in late March.

Merchant volumes for the Americas and Europe, the Middle East and Africa fell mostly during the last week of March, it said. The company expects declines in those regions to continue.

Write to Dave Sebastian at dave.sebastian@wsj.com

(END) Dow Jones Newswires

April 23, 2020 06:32 ET (10:32 GMT)

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