("Air Products 3Q Earnings Up On 2008 Loss; Demand Weak,"
published at 6:40 a.m. EDT, failed to make clear that the company
may sell just its U.S. health-care business. A revised story
appears below.)
DOW JONES NEWSWIRES
Air Products & Chemicals Inc.'s (APD) fiscal third-quarter
earnings soared 62% on prior-year losses from discontinued
operations, but the company's ongoing business slumped as sales
were worse than analysts expected.
Still, income topped expectations and Air Products sees
fiscal-year earnings at the higher end of its target. Chief
Executive John McGlade added that despite recession-related volume
woes, "we've seen signs of improvement during this quarter in some
of our end markets, particularly in Electronics and Asia." He noted
that margins have improved from both the prior quarter and year-ago
period.
The industrial gas maker cut its staff by 7% last year and
continued to pare costs, warning in April it may record
restructuring charges this year as it looks for further long-term
savings. They totaled $110 million in the latest quarter.
Air Products has also trimmed and focused its portfolio,
recently selling three health-care businesses and its U.S. home
infusion therapy business. Air Products is looking to exit theU.S.
health-care business entirely by September.
For the period ended June 30, Air Products reported earnings of
$113.2 million, or 53 cents a share, down from $70.1 million, or 32
cents a share, a year earlier. The latest quarter included charges
of 51 cents a share, including the cost of 1,150 job cuts.
Excluding charges, income from continuing operations fell to
$1.05 a share from $1.35 a share. In April, the company projected
per-share earnings of 93 cents to $1.02 a share, below analysts'
then-estimates.
Sales fell 28% to $1.98 billion. Analysts polled by Thomson
Reuters forecast $2.13 billion.
Air Products said underlying revenue, which strips out impacts
from lower prices and currency impacts, fell 11%.
Looking ahead, the company expects fiscal fourth-quarter
earnings from continuing operations of $1.04 to $1.14 a share.
Analysts expected $1.12 a share.
Shares closed Tuesday at $69.70 and were inactive premarket. The
stock is up 39% year-to-date but still down 29% in the last 12
months.
-By Mike Barris and Melissa Korn; Dow Jones Newswires;
201-938-5658; mike.barris@dowjones.com