Air Products And Chemicals, Inc. · NYSE:APD

Air Products And Chemicals — Q2 2011 Earnings Presentation

15 slides from Air Products And Chemicals's earnings presentation, Apr 21, 2011

  1. Slide 1: Q2 FY'11 Earnings Conference Call

    Q2 FY’11 Earnings Conference Call April 21, 2011

  2. Slide 2: Forward Looking Statement

    Forward Looking Statement Note: This presentation contains "forward-looking statements" within the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, including earnings guidance, projections and targets. These forward-looking statements are based on management's reasonab

  3. Slide 3: Q2 Financials

    Q2 Financials Fav/(Unfav) vs. ($millions, excluding items) Q2 FY11 Q2 FY10 Q1 FY11 Sales $2,501 11% 5% - Volume 11% 2% - Price 1% 1% - Energy/RM pass-thru (2%) 1% - Currency 1% 1% Operating Income $425 17% 5% Operating Margin 17.0% 80bp 10bp Net Income $309 16% 4% Diluted EPS ($/share) 1.41 15% 4% R

  4. Slide 4: Q2 EPS Analysis

    Q2 EPS Analysis Q2 FY11 Q2 FY10 Change As-reported diluted EPS $1.39 $1.16 - acquisition-related exp. (0.09) (0.07) - acquisition-related gain 0.07 - Adjusted EPS $1.41 $1.23 $0.18 Volume $0.27 Price / raw materials (0.02) $0.21 Cost (0.04) Currency/FX (0.01) Higher tax rate (0.01) Higher shares out

  5. Slide 5: Merchant Gases

    Merchant Gases Fav/(Unfav) vs. Q2 FY11 Q2 FY10 Q1 FY11 Sales $1,013 10% 3% - Volume 8% 1% - Price 1% 1% - Currency 1% 1% Operating Income $185 4% (8%) Operating Margin 18.3% (100bp) (200bp)  Significant Asia volume growth  Positive price in North America and Asia  Energy, operations and distribut

  6. Slide 6: Merchant Gases: Q2 Sales Analysis vs PY

    Merchant Gases: Q2 Sales Analysis vs PY North America Europe Asia Sales % change 5% 3% 30% - Volume 3% 4% 18% - Price 2% (1%) 7% - Currency - -% 5%  Strong Asia volumes and continued argon pricing  Positive North America volume and price strength  Strong Europe liquid/bulk volumes  Weak Europe l

  7. Slide 7: Tonnage Gases

    Tonnage Gases Fav/(Unfav) vs. Q2 FY11 Q2 FY10 Q1 FY11 Sales $799 6% 4% - Volume 10% -% - Energy/RM pass thru (5%) 4% - Currency 1% -% Operating Income $121 13% 5% Operating Margin 15.1% 90bp -bp  Volume growth driven by new investments  Pipeline system efficiency improvements 7

  8. Slide 8: Electronics & Performance Materials

    Electronics & Performance Materials Fav/(Unfav) vs. Q2 FY11 Q2 FY10 Q1 FY11 Sales $576 28% 9% - Volume 23% 6% - Price 3% 2% - Currency 2% 1% Operating Income $92 61% 33% Operating Margin 15.9% 330bp 280bp  Electronics sales 33% 6%  Performance Materials sales 22% 14%  No significant Japan impact

  9. Slide 9: Equipment & Energy

    Equipment & Energy Fav/(Unfav) vs. Q2 FY11 Q2 FY10 Q1 FY11 Sales $114 (5%) 1% Operating Income $23 24% 11% Sales Backlog $184 (46%) (12%)  Lower sales on less ASU activity  Higher operating income on more LNG activity  One LNG exchanger order added to backlog 9

  10. Slide 10: Outlook

    Outlook FQ2 2011 EPS $1.41 • Higher Merchant volumes • Improved cost performance • Higher E&PM volumes EPS • Lower tax rate • Tonnage - lower bonuses and higher maintenance costs • Lower Equipment results EPS • Japan uncertainty FQ3 2011 EPS $1.42-$1.47 FY 2011 EPS $5.65-$5.75 10 Non-GAAP, see appen

  11. Slide 11: Appendix Slides

    Appendix Slides

  12. Slide 12: Appendix: Q2 FY11 Results and Guidance

    Appendix: Q2 FY11 Results and Guidance ($ Millions, except per share data) Non GAAP GAAP Measure Adjustments Non GAAP Measure $ % $ % Q211 vs. Q210 - Total Co. Q211 Q210 Change Change Q211 (1) Q210 (1) Q211 Q210 Change Change Sales 2,501.3 2,249.0 252.3 11% 2,501.3 2,249.0 252.3 11% Operating Income

  13. Slide 13: Appendix: ROCE

    Appendix: ROCE $ Millions Quarter Ended Q109 Q209 Q309 Q409 Q110 Q210 Q310 Q410 Q111 Q211 Numerator Operating Income Reported 260.4 143.8 328.0 345.0 340.6 336.4 367.0 360.6 419.5 Equity Affiliate Income 27.0 28.5 32.2 26.9 32.2 32.5 35.3 27.8 31.7 Earnings before tax as reported 287.4 172.3 360.2 3

  14. Slide 14: Appendix: ROCE Tax Rate

    Appendix: ROCE Tax Rate Q209 Q309 Q409 Q110 Q210 Q310 Q410 Q111 Q211 Reported Income Before Taxes 257.4 144.8 332.3 340.3 343.3 338.9 371.5 357.4 421.8 Tax Expense 66.5 25.4 86.3 83.5 84.9 77.6 93.5 81.5 110.3 Tax Rate Reported 25.8% 17.5% 26.0% 24.5% 24.7% 22.9% 25.2% 22.8% 26.1% ITEMS Operating In

  15. Slide 15: Thank you... tell me more

    Thank you... tell me more proputis £=:

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