Air Products (NYSE: APD), Lehigh Valley, PA, reported sales for the first quarter ended Dec. 31, 2011, were $2.4 billion, up 1 percent over the same period a year ago. Profit fell 7.1 percent to $256.3 million.
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Sequentially, sales declined 7 percent due to seasonality in Electronics and Performance Materials and Merchant Gases, plus currency effects.
\”As we expected, economic growth continued to slow this quarter, depressing volumes and limiting earnings growth,\” said John McGlade, president and CEO. \”In spite of these economic headwinds, we did improve our operating performance, while lowering costs and winning significant new tonnage contracts.\”
Merchant Gases sales of $989 million were unchanged versus prior year as lower volumes were offset by higher pricing in U.S./Canada and Europe Liquid Bulk and Packaged Gases. Operating income of $192 million decreased 4 percent from the prior year, due principally to weaker volumes.
Tonnage Gases sales of $810 million were up 6 percent on improved volumes from new plants. Operating income of $111 million decreased 4 percent from the prior year due to higher maintenance costs from outages.
Electronics and Performance Materials sales of $535 million increased 2 percent on higher volumes and pricing. Electronics sales were up 4 percent while Performance Materials sales decreased 1 percent versus last year. Operating income of $78 million increased 13 percent from the prior year primarily due to improved cost performance.
Equipment and Energy sales of $89 million and operating income of $7 million were down 21 percent and 64 percent respectively versus prior year, driven by lower ASU and LNG project activity.
