Air Products announced that its net income for the quarter of 2005 as $175 million, representing an increase of 24% on the same quarter the previous year.

Revenues for the quarter were up 8% at $2.003 million over 2004, driven mainly by higher volumes across the gases segment and higher pricing in Chemicals. Operating income of $252 million was up 20% principally driven by volume gains and lower costs from ongoing productivity projects.

Commenting on the results Mr. John P. Jones, Air Products' chairman and chief executive officer said, \\$quot;This is the fifth consecutive quarter we improved our return on capital and posted a greater than 20 percent earnings per share increase. Strong volume gains in Gases and Equipment coupled with significant improvement in our Chemicals business produced those results. By loading our assets and delivering on productivity commitments, we increased our operating margin to 12.6 percent. We also generated strong cash flows, announced a $500 million share repurchase program and increased our dividend for the 23rd consecutive year.\\$quot;

Air Products results by division:
 SalesOperating Profit
DivisionsQ1 2005 Q1 2004 % Increase Q1 2005 Q1 2004 % Increase
Gases Segment$1,412$1,28510%$207$1899%
Chemicals Segment$499$4833%$45$3530%
Equipment Segment$93$894%$8$2300%


The company projects a full-year EPS range of $3.00 to $3.15 and a third fiscal quarter EPS range of $0.77 to $0.82.