Air Products & Chemicals Profit Increases
January 29 2016 - 7:12AM
Dow Jones News
By Austen Hufford
Air Products & Chemicals Inc. reported better-than-expected
profit on Friday and an upbeat earnings forecast, despite a decline
in sales, as the industrial gas company readies to spin-off its
materials technologies business.
Operating margin for the quarter reached 20.9%, up from 16.8%
during the same period last year.
For the current quarter, Air Products expects adjusted per-share
earnings of between $1.78 and $1.83. Analysts polled by Thomson
Reuters had expected earnings per share of $1.75.
Air Products kept its yearly earnings forecast unchanged.
Profit rose to $363.6 million from $324.6 million a year prior.
In the most recent quarter, the first of the 2016 fiscal year, the
company's per-share earnings rose to $1.67 from $1.50. On an
adjusted basis, per-share earnings increased to $1.78 from
$1.55.
Revenue declined 8% to $2.36 billion, as the company faced
currency headwinds and global slowdown in industrial markets.
The company's cost of sales fell more than revenue, decreasing
13% to $1.6 billion, as its selling and administrative expenses
decreased 18%.
Industrial gas sales decreased in the Americas and the Europe,
Middle East and Africa regions. In Asia, sales climbed 3.6%. Sales
in the company's materials segment fell 6.5% to $490 million.
The company said it intends to spin-off its materials
technologies business, to be known as Versum Materials, prior to
September.
Write to Austen Hufford at austen.hufford@wsj.com
(END) Dow Jones Newswires
January 29, 2016 06:57 ET (11:57 GMT)
Copyright (c) 2016 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