Air Products And Chemicals, Inc. · NYSE:APD

Air Products And Chemicals — Q1 2010 Earnings Presentation

18 slides from Air Products And Chemicals's earnings presentation, Jan 22, 2010

  1. Slide 1: Q1 FY'10 Earnings Conference Call

    Q1 FY’10 Earnings Conference Call January 22, 2010

  2. Slide 2: Forward Looking Statement

    Q1 FY’10 Earnings Forward Looking Statement This presentation contains “forward-looking statements” within the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, including earnings guidance. These forward-looking statements are based on management’s reasonable expectatio

  3. Slide 3: Q1 Financials

    Q1 FY’10 Earnings Q1 Financials Fav/(Unfav) vs. ($millions, Continuing Operations) Q1 FY10 Q1 FY09* Q4 FY09 Sales $2,174 (1%) 2% - Underlying business 2% (1%) - Energy/RM pass-thru (7%) 2% - Currency 4% 1% Operating Income $345 20% 5% Operating Margin (%) 15.9% 280bp 50bp Net Income $252 22% 2% Dilu

  4. Slide 4: Q1 EPS Analysis

    Q1 FY’10 Earnings Q1 EPS Analysis Q1 FY10 Q1 FY09 Change As-reported diluted EPS $1.16 $0.32 - discontinued ops (loss) - (0.10) - restructuring charge - (0.55) Adjusted cont ops EPS $1.16 $0.97 $0.19 Volume $0.12 Price / raw materials (0.05) $0.13 Cost 0.06 Currency 0.07 Equity Affiliates income 0.0

  5. Slide 5: Merchant Gases

    Q1 FY’10 Earnings Merchant Gases Fav/(Unfav) vs. Q1 FY10 Q1 FY09 Q4 FY09 Sales $934 1% -% - Volume (5%) (1%) - Price -% -% - Currency 6% 1% Operating Income $190 11% 14% Operating Margin 20.3% 190bp 250bp  Underlying volume momentum continues  Prices holding 5

  6. Slide 6: Merchant Gases: Q1 Sales Analysis vs PY

    Q1 FY’10 Earnings Merchant Gases: Q1 Sales Analysis vs PY North America Europe Asia Sales % change (11%) 6% 13% - Volume (9%) (4%) 11% - Price (2%) 1% (3%) - Currency - 9% 5%  Tough comps in North America  Europe includes homecare  Asia strong recovery 6 Note: The above excludes Latin America and

  7. Slide 7: Tonnage Gases

    Q1 FY’10 Earnings Tonnage Gases Fav/(Unfav) vs. Q1 FY10 Q1 FY09 Q4FY09 Sales $698 (6%) 9% - Volume 11% -% - Energy/RM pass thru (21%) 8% - Currency 4% 1% Operating Income $100 (8%) (5%) Operating Margin 14.4% (20bp) (200bp)  Volumes up on rebound in chemical & steel and new plant on-streams  Highe

  8. Slide 8: Electronics & Performance Materials

    Q1 FY’10 Earnings Electronics & Performance Materials Fav/(Unfav) vs. Q1 FY10 Q1 FY09 Q4 FY09 Sales $433 7% -% - Volume 11% -% - Price (6%) (1%) - Currency 2% 1% Operating Income $48 97% (1%) Operating Margin 11.2% 510bp (10bp)  Electronics sales (2%) -%  Performance Materials sales 18% -% 8

  9. Slide 9: Equipment & Energy

    Q1 FY’10 Earnings Equipment & Energy Fav/(Unfav) vs. Q1 FY10 Q1 FY09 Q4 FY09 Sales $109 (9%) (11%) Operating Income $8 11% 34% Sales Backlog $327 1% 37%  Lower sales volume  Lower energy development spending partially offset by restructuring costs  Backlog increases on Gorgon LNG order 9

  10. Slide 10: Q2 FY'10 Outlook

    Q1 FY’10 Earnings Q2 FY’10 Outlook } Q1 FY’10 EPS $1.16  Improving economy  New plants on-stream EPS  Lower maint spending, higher bonuses }  Lunar new year  Lower Equip/Energy results  Higher tax rate Q2 FY’10 EPS $1.15-$1.20 10

  11. Slide 11: FY'10 Full Year Outlook Update

    Q1 FY’10 Earnings FY’10 Full Year Outlook Update ● FY’10 overall… expecting a  FY’09 Adjusted Diluted EPS $4.06 gradual and modest recovery – Merchant loading – Tonnage new projects/loading ● WW manufacturing growth – E&E similar to last year – Globally up 1% to 2% – E&PM loading, partially offset

  12. Slide 12: Appendix Slides

    Q1 FY’10 Earnings Appendix Slides Q1 FY’10 Earnings

  13. Slide 13: Appendix: Q1 Sales Analysis

    Q1 FY’10 Earnings Appendix: Q1 Sales Analysis Change versus Q1 FY09 Q4 FY09 Total Consolidated (1%) 2% Comprised of:  Base business growth 2% (1%) – Volume 3% (1%) – Price (1%) -%  Energy/RM pass thru (7%) 2%  Currency 4% 1% 13

  14. Slide 14: Appendix: "Other" Segment

    Q1 FY’10 Earnings Appendix: “Other” Segment Q1 FY10 Q1 FY09 Operating Inc/(Loss) ($1) ($23)  FX Gain/(Loss) ($1) ($8)  LIFO reserve $1 ($11)  All other ($1) ($4) 14

  15. Slide 15: Appendix: Q110 Results and FY10 Guidance

    Q1 FY’10 Earnings Appendix: Q110 Results and FY10 Guidance ($ Millions, except per share data) Non GAAP GAAP Measure Adjustment Non GAAP Measure $ % $ % Q110 vs. Q109 - Total Co. Q110 Q109 Change Change Q109 (1) Q110 Q109 Change Change Sales 2,173.5 2,195.3 (21.8) (1%) 2,173.5 2,195.3 (21.8) (1%) Op

  16. Slide 16: Appendix: ROCE

    Q1 FY’10 Earnings Appendix: ROCE $ Millions Quarter Ended Q108 Q208 Q308 Q408 Q109 Q209 Q309 Q409 Q110 Numerator Operating Income Reported 348.6 393.7 373.1 114.1 260.4 143.8 328.0 345.0 Equity Affiliate Income 42.4 46.5 30.8 24.5 27.0 28.5 32.2 26.9 Earnings before tax as reported 391.0 440.2 403.9

  17. Slide 17: Appendix: ROCE Tax Rate

    Q1 FY’10 Earnings Appendix: ROCE Tax Rate Q208 Q308 Q408 Q109 Q209 Q309 Q409 Q110 Reported Income from Cont. Ops. Bef. Tax 352.1 400.7 361.1 102.1 257.4 144.8 332.3 340.3 Noncontrolling Interest (4.5) (7.6) (4.8) (5.0) (1.6) (4.8) - (5.0) Income from Cont. Ops. Before Tax, after Noncontrolling Inter

  18. Slide 18: Thank you

    Thank you www.airproducts.com

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