Air Products Revenues Fall 2% in Second Quarter 2012

Sales decline for Air Products was due primarily to lower energy pass-through and a stronger dollar.

Air Products (NYSE:APD) reported sales of $2.3 billion in the second quarter ended March 31, 2012, down 2 percent from the prior year, primarily on lower energy pass-through and a stronger dollar.

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Underlying sales were up 2 percent on higher tonnage gases volumes and improved pricing in merchant gases.

Profit was $281 million.

Sequentially, sales increased 1 percent, with underlying sales up 3 percent, primarily due to increased volumes in performance materials and equipment.
Merchant Gases sales of $884 million decreased 3 percent and operating income of $153 million declined 8 percent versus prior year, with positive pricing offset by weaker volumes in all regions and currency impacts.

Tonnage Gases sales of $784 million decreased 2 percent versus the prior year, with lower energy pass-through, mostly offset by improved volumes of 7 percent. Operating income of $125 million was up 4 percent from the prior year driven by the volume growth.

Electronics and Performance Materials sales of $567 million declined 2 percent versus the prior year, primarily due to weaker Electronics volumes, partially offset by stronger Performance Materials volumes. Operating income of $86 million was down 7 percent versus prior year, primarily due to lower volumes and higher raw material costs in Electronics. These were partially offset by higher Performance Materials volumes.

Equipment and Energy sales of $110 million were down 3 percent versus prior year due to lower project activity. Operating income of $10 million declined 56 percent from the prior year on lower LNG activity. Equipment sales backlog is up 69 percent versus prior year.

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