Air Products 1Q Net Slumps 74%, Cuts View On Demand Drop
21 1월 2009 - 9:10PM
Dow Jones News
DOW JONES NEWSWIRES
Air Products & Chemicals Inc.'s (APD) fiscal first-quarter
net income tumbled 74% on restructuring costs and slumping demand
as the industrial gas maker cut expectations for the year and
projected second-quarter earnings below analysts' estimates.
President and Chief Executive John McGlade said Air Products saw
further deterioration in business conditions during the quarter,
which resulted "in one of the weakest economic environments we've
ever seen." He added the shock to the global economy has "shattered
consumer confidence, which has significantly impacted customers'
operating rates" across most of its markets. The company is
continuing to take "aggressive actions to reduce costs."
Still, he said the company has "a good backlog of projects and
opportunities in front of us," with a solid balance sheet and
access to capital.
For the period ended Dec. 31, Air Products reported net income
of $68.6 million, or 32 cents a share, down from $263.7 million, or
$1.19 a share, a year earlier. Excluding restructuring charges,
earnings from continuing operations fell to 97 cents from $1.18.
The company in December lowered its per-share earnings outlook to
95 cents to $1.
Revenue fell 8.8% to $2.2 billion on weaker volumes and the
stronger dollar. Analysts as polled by Thomson Reuters most
recently were expecting $2.2 billion
Gross margin slumped to 25.8% from 27.2% amid the sales
decline.
The company posted weaker results across the board, most notably
at its much smaller electronics and performance-materials segment.
Its profits tumbled 63% as sales dropped 21% amid the demand woes
in the semiconductor industry, which has been cutting expectations
far and wide as sales slump.
Meanwhile, Air Products lowered its forecast for fiscal 2009
earnings to a range of $4 to $4.30 from October's bearish outlook
of $5.10 to $5.35. Analysts most recently were looking for $4.49 a
share. For the current quarter, profit of 80 cents to 90 cents was
projected by the company; analysts were expecting $1.07.
Air Products had posted several years of consistent profit and
sales growth before the fall's demand slump, which has led to
layoffs. The stronger dollar also has damped results.
Shares closed Tuesday's session at $52.64 and weren't active in
premarket trading. The stock is down by half since June.
-By Shirleen Dorman, Dow Jones Newswires; 201-938-2310;
shirleen.dorman@dowjones.com
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