Air Products (NYSE: APD), Lehigh Valley, PA, reported sales for fiscal 2013 were $10.2 billion, an increase of 6 percent compared to the same period a year ago, with acquisitions contributing 5 percent and higher energy pass-through contributing 2 percent, partially offset by 1 percent lower volumes driven by the previously announced decision to exit the Polyurethane Intermediates business. Profit decreased 14.8 percent to $994.2 million.
Merchant gases sales of $1.1 billion increased 4 percent versus prior year on higher volumes and improved pricing. Operating income of $177 million increased 10 percent versus prior year, largely due to higher volumes and improved pricing, and the completion of prior year cost reductions in Europe.
Tonnage gases sales of $835 million decreased 1 percent versus the prior year mostly due to lower PUI volumes offsetting higher energy pass-through and positive currency impact. Excluding PUI, volumes were down 1 percent, with strong U.S. hydrogen volumes offset by a contract termination in Latin America. Operating income of $135 million was down 4 percent versus prior year due to higher maintenance costs, higher pension costs and the impact of the contract termination.
Electronics and performance materials sales of $580 million were down 6 percent versus prior year, primarily driven by lower eectronics equipment sales. Operating income of $96 million increased 12 percent, primarily due to higher inventory costs in the prior year.
Equipment and energy sales of $118 million were down 7 percent versus prior year due to lower ASU sales, partially offset by higher LNG project activity. Operating income of $21 million increased 16 percent versus prior year due to higher LNG project activity.
Fourth-quarter sales for Air Products were $2.6 billion, a decrease of 1 percent compared to the same period a year ago, on 2 percent lower base volumes, and a negative 2 percent impact due to the PUI business exit. Higher energy pass-through and positive currency impacts partially offset the lower volumes. Profit for the fourth quarter decreased 1.2 percent to $137.1 million.
