UPDATE: Air Products Posts Better-Than-Expected Q4 Earnings

Air Products & Chemicals

reported better-than-expected earnings for the fourth quarter. The Allentown, Pennsylvania-based company reported quarterly earnings of $104 million, or $0.48 per share, compared to $137.1 million, or $0.64 per share, in the year-ago period. Excluding special items, the company earned $1.66 per share. Air Products had expected earnings of $1.60 to $1.65 per share. Its sales gained 3.5% to $2.68 billion in the period. However, analysts were expecting earnings of $1.61 per share on revenue of $2.72 billion. The company's sales in merchant gases segment rose 3% to $1.09 billion, while sales in its tonnage gases segment dropped 3.5% to $806 million. Sales in its electronics and performance materials segment surged 14% to $660.4 million in the quarter, while equipment and energy sales climbed 6% to $125 million. Operating income rose 12% y/y to $472 million. For the full year, Air Products projects earnings of $6.30 to $6.55 per share, versus analysts' estimates of $6.37 per share. For the current quarter, Air Products projects earnings from continuing operations of $1.45 to $1.50 per share, versus estimates of $1.47 per share. Seifi Ghasemi, chairman, president and chief executive officer, said, "The outlook for the global economy is unclear, and as a result, we will focus on implementing our plan to restructure the company, reduce costs, and improve cash flow.” Air Products shares gained 4.27% to $134.35 at 9:35 a.m. ET..