Air Products Reports Higher Profit On Lower Costs
October 29 2015 - 7:33AM
Dow Jones News
By Ezequiel Minaya
Air Products & Chemicals Inc. reported better-than-expected
earnings on Thursday, despite a decline in sales, as the industrial
gas company completed a restructuring of operations that eliminated
about 2,000 jobs during the year but increased profitability.
Operating margin for the fourth quarter of the company's 2015
fiscal year reached 19.3%, up from 5.4% during the same period last
year. Earnings also got a boost from the sale of land that helped
propel profit up to $344.5 million from $102.5 million a year
earlier.
For the current quarter, the first of the 2016 fiscal year, Air
Products expects per-share earnings between $1.65 and $1.75, up 6%
to 13% from the previous year. For the year, the company plans on
earnings per share of $7.25 to $7.50, up 10% to 14% from the prior
year.
In the fourth quarter, the company's per-share earnings rose to
$1.58 from 47 cents. On an adjusted basis, per-share earnings
increased to $1.82 up from $1.66.
The company's cost of sales fell to $1.7 billion from $1.93
billion, and its selling and administrative expenses declined to
$200.4 million from $243 million.
Revenue declined 8.5% to $2.45 billion, as the company faced
currency headwinds and global slowdown in industrial markets.
Industrial gas sales decreased across all regions except for Asia,
which climbed 7%. Sales in the company's materials segment fell 13%
to $490 million.
During the quarter, the company said it intends to spin-off its
Materials Technologies business.
Write to Ezequiel Minaya at Ezequiel.Minaya@wsj.com
Subscribe to WSJ: http://online.wsj.com?mod=djnwires
(END) Dow Jones Newswires
October 29, 2015 07:18 ET (11:18 GMT)
Copyright (c) 2015 Dow Jones & Company, Inc.
Air Products and Chemicals (NYSE:APD)
Historical Stock Chart
From Mar 2024 to Apr 2024
Air Products and Chemicals (NYSE:APD)
Historical Stock Chart
From Apr 2023 to Apr 2024