For the first quarter 1996-97 ending on 31 December 1996, Air Products and Chemicals, Inc. of the United States has reported net income of US$ 100 million, or 91 cents per share. This compares to US$…
For the first quarter 1996-97 ending on 31 December 1996, Air Products and Chemicals, Inc. of the United States has reported net income of US$ 100 million, or 91 cents per share. This compares to US$ 89 million, or 80 cents per share in the year ago quarter, a per-share increase of 14%. Sales of US$ 1.1 billion were up 18% versus US$ 947 million previously. Results for the quarter included a 5 cent per share gain from the sale of the company“s landfill gas business and a 5 cent per share loss related to the anticipated sale of a small European product line in performance chemicals. The acquisition of Carburos Metalicos, a Spanish industrial gas company, was also completed in the quarter. Commenting on these results, Air Products Chairman H. A. Wagner said, “Major positive factors for the quarter included improving worldwide industrial gas margins and solid volume and profit growth for our chemicals business.” Industrial gas sales for the quarter increased 12%, while operating income rose 14%. According to Air Products, performance from industrial gas operations in the US reflected higher plant loading, more efficient production and distribution, and tighter controls on related overhead costs. In chemicals, first quarter sales increased 12%. Excluding the writedown of a small product line, operating income rose 12%, as a result of volume gains across all major businesses. The Equipment and Services segment, which now includes power generation and air pollution control results on a comparable basis, recorded significantly higher sales and a modest increase in operating income for the quarter due to increased commercial activity. The business has a record backlog of high-quality projects. The Corporate and Other segment included a gain on the sale of the landfill gas business, and also benefited from favourable foreign exchange. The quarter“s results were also influenced by higher interest payable related to debt for the acquisition of Carburos Metalicos, new capital investments, and the firm“s share repurchase programme. The company also announced that while progress is being made, its planned divestiture of American Ref-Fuel would take longer than anticipated given the venture“s partnership structure and project complexities. The objective remains to leave the business while obtaining its full value.