By Angela Chen
Air Products & Chemicals Inc. said that higher volumes in
several segments were unable to offset the impact of the stronger
dollar in the first quarter, leading to weaker-than-expected
revenue.
However, its earnings beat expectations, and the company raised
the bottom end of its full-year earnings guidance by 5 cents, now
expecting $6.35 to $6.55 a share.
Allentown, Pa.-based Air Products--which produces chemical
ingredients for antifreeze, semiconductors, food and other
items--has been reorganizing following pressure from activist
investor William Ackman. In September, the company announced that
it will restructure into seven reporting segments, months after the
company named Mr. Ghasemi its new chief executive.
In the latest quarter, Air Products reported earnings of $325
million, or $1.50 cents a share, up from $290 million, or $1.35 a
share, a year earlier.
However, excluding special items such as restructuring fees,
per-share earnings were $1.55, up from $1.34 a year ago.
The company had projected earnings of $1.45 and $1.50 per share,
compared with analysts' estimates of $1.49.
Sales rose 1% to $2.56 billion from a year ago. Higher volumes
and pricing were offset by unfavorable currency impacts, as well as
the company's exit from its polyurethane intermediates business.
Excluding these impacts, sales increased 5%.
Analysts had projected a top line of $2.65 billion.
The stronger dollar hit hardest in Europe, the Middle East, and
Africa, where sales fell 9% to $501 million due to the 7% currency
impact.
Sales in the Americas increased 6% from the year earlier, due to
higher volume and pricing.
Asia sales increased 1%, with higher volumes offset by lower
currency as well.
Revenue in materials technologies, including electronics, grew
9% to $524 million, mostly due to 11% higher sales volume.
For the current quarter, the company expects earnings per share
between $1.50 and $1.55, compared to analysts' forecast of
$1.54.
Shares of Air Products have been up about 31% in the past 12
months through Wednesday's close.
Write to Angela Chen at angela.chen@wsj.com
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