Air Products has reported net income of $210 million or diluted earnings per share (EPS) of $.92 for its third fiscal quarter ended June 30, 2006.
Net income increased 10 per cent and diluted EPS was up 12 per cent compared with the prior year.
Third quarter earnings comparisons are affected by the adoption of Statement of Financial Accounting Standards No. 123R and expensing of stock options as of 1 October 2005. On a comparable basis (including stock compensation expenses), net income increased 14 per cent and diluted EPS increased 16 per cent. A reconciliation can be found at the end of this release. The following discussion of third quarter results is on a comparable basis.
Revenues of $2,320m were up 12 per cent and operating income of $298m was up 18 per cent over the prior year on strong gases volumes and higher equipment activity.
John P. Jones, chairman and chief executive officer, said: \\$quot;We produced record earnings and sales this quarter and continued to improve our return on capital. This performance was powered by strong volumes across our global energy and process industries (EPI), electronics, and merchant gas businesses, demonstrating the strength of our business and market positions to continue to deliver profitable growth and higher returns.\\$quot;
Strong volumes drove record gases segment sales of $1,689m up 14 per cent and operating income of $241m up 19 per cent over the prior year. EPI reflected the positive impact of five new hydrogen plants which have come on-stream in fiscal 2006. Electronics gases and specialty materials continued to grow, with solid demand from semiconductor and flat panel markets. The global merchant gas business also saw volume growth in all regions of the world with improved recovery of energy costs in North America.
Looking forward, Mr. Jones said: \\$quot;For the third consecutive year, we are on track to deliver double-digit sales growth, double-digit earnings growth, and improved return on capital.