Air Products And Chemicals, Inc. · NYSE:APD

Air Products And Chemicals — Q3 FY2009 Earnings Presentation

19 slides from Air Products And Chemicals's earnings presentation, Jul 22, 2009

  1. Slide 1: Q3 FY'09 Earnings Conference Call

    Q3 FY’09 Earnings Conference Call July 22, 2009

  2. Slide 2: Forward Looking Statement

    Q3 FY’09 Earnings 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 for the fourth quarter and full year. These forward-looking statements are

  3. Slide 3: Q3 Items

    Q3 FY’09 Earnings Q3 Items  $124MM pretax restructuring charge − ~3/4 for 1,150 position eliminations − ~6% of workforce − ~1/4 for asset actions and business exits − FY2011 and beyond savings of ~$50MM/yr  $8MM supplemental pension settlement charge  $32MM customer bankruptcy write-off and other

  4. Slide 4: Electronics Update and Outlook

    Q3 FY’09 Earnings Electronics Update and Outlook Q3 Review  Business still attractive – margin and return targets are achievable  Further business simplification necessary Actions  Streamlined organization  Re-segmented customers for better match of service level to their needs  Refocused techn

  5. Slide 5: Consolidated Q3 Financials

    Q3 FY’09 Earnings Consolidated Q3 Financials Fav/(Unfav) vs. ($Millions, Continuing Operations) Q3 FY09 Q3 FY08 Q2 FY09 Sales $1,976 (28%) 1% - Underlying business (11%) 1% - Currency (6%) 3% - Energy/RM pass-thru (11%) (3%) Operating Income $308 (22%) 18% Operating Margin % 15.6% 130bp 230bp Net In

  6. Slide 6: Q3 EPS Analysis

    Q3 FY’09 Earnings Q3 EPS Analysis Q3 FY09 Q3 FY08 Change As-reported diluted EPS $0.53 $0.32 - Discontinued Ops (0.01) (1.03) - Q3 items (appx. slide #15) (0.51) - Continuing Operations EPS $1.05 $1.35 ($0.30) Volume ($0.47) Price / raw materials 0.06 ($0.21) Cost 0.20 Currency (0.09) Equity Affilia

  7. Slide 7: Merchant Gases

    Q3 FY’09 Earnings Merchant Gases Fav/(Unfav) vs. Q3 FY09 Q3 FY08 Q2 FY09 Sales $883 (19%) 1% - Volume (11%) (1%) - Price 2% (2%) - Currency (10%) 4% Operating Income $169 (17%) 8% Operating Margin 19.1% 30bp 120bp  Continued weak volumes globally  Cost management actions drive results 7

  8. Slide 8: Merchant Gases: Q3 Sales Analysis vs PY

    Q3 FY’09 Earnings Merchant Gases: Q3 Sales Analysis vs PY North America Europe Asia Sales % change (16%) (21%) (16%) - Volume (19%) (8%) (10%) - Price 3% 3% 1% - Currency - (16%) (7%)  Weak demand across most industries 8

  9. Slide 9: Tonnage Gases

    Q3 FY’09 Earnings Tonnage Gases Fav/(Unfav) vs. Q3 FY09 Q3 FY08 Q2FY09 Sales $565 (42%) (10%) - Volume (6%) (1%) - Energy/RM pass thru (32%) (11%) - Currency (4%) 2% Operating Income $88 (30%) (11%) Operating Margin 15.5% 260bp (20bp)  Refinery hydrogen volumes up modestly  Steel and chemical indu

  10. Slide 10: Electronics & Performance Materials

    Q3 FY’09 Earnings Electronics & Performance Materials Fav/(Unfav) vs. Q3 FY09 Q3 FY08 Q2 FY09 Sales $409 (29%) 23% - Volume (24%) 26% - Price (2%) (4%) - Currency (3%) 1% Operating Income $39 (45%) Operating Margin 9.5% (260bp)  Electronics sales (35%) 21%  Performance Materials volume (23%) 26% 1

  11. Slide 11: Equipment & Energy

    Q3 FY’09 Earnings Equipment & Energy Fav/(Unfav) vs. Q3 FY09 Q3 FY08 Q2 FY09 Sales $119 12% (7%) Operating Income $13 (20%) Sales Backlog $253 11% (10%)  Favorable cost performance 11

  12. Slide 12: Outlook

    Q3 FY’09 Earnings Outlook FQ4 2009 EPS $1.04 - $1.14  Continued weak end markets  Volumes modestly higher sequentially  Cost improvement offset by further asset actions FY2009 EPS $3.95 - $4.05*  WW manufacturing declines (~12-15%)  MSI declines ~40%  Capex in-line with prior year 12 *Non-GAAP

  13. Slide 13: Appendix Slides

    Q3 FY’09 Earnings Appendix Slides Q3 FY’09 Earnings

  14. Slide 14: Appendix: Q3 Sales Analysis

    Q3 FY’09 Earnings Appendix: Q3 Sales Analysis Change versus Q3 FY08 Q2 FY09 Total Consolidated (28%) 1% Comprised of:  Base business growth (11%) 1% – Volume (11%) 3% – Price --% (2%)  Energy/RM pass thru (11%) (3%)  Currency (6%) 3% 14

  15. Slide 15: Appendix: Q3 FY'09 Results

    Q3 FY’09 Earnings Appendix: Q3 FY’09 Results ($ Millions, except per share data) Non GAAP GAAP Measure Adjusts. Non GAAP Measure % Change % Non GAAP Q309 vs. Q308 - Total Co. Q309 Q308 Change Q309 (1) Q309 Q308 Measure Sales 1,976.2 2,749.7 (28%) 1,976.2 2,749.7 (28%) Operating Income 143.8 393.7 (6

  16. Slide 16: Appendix: ROCE

    Q3 FY’09 Earnings Appendix: ROCE $ Millions Quarter Ended Q107 Q207 Q307 Q407 Q108 Q208 Q308 Q408 Q109 Q209 Q309 Numerator Operating Income Reported 313.6 360.0 380.4 380.4 348.6 393.7 373.1 114.1 260.4 143.8 Equity Affiliate Income 27.5 29.5 30.1 25.3 42.4 46.5 30.8 24.5 27.0 28.5 Earnings before t

  17. Slide 17: Appendix: ROCE Tax Rate

    Q3 FY’09 Earnings Appendix: ROCE Tax Rate Q207 Q307 Q407 Q108 Q208 Q308 Q408 Q109 Q209 Q309 Reported Income from Cont. Ops. Bef. Tax and Min. Int 303.9 345.4 368.4 364.9 352.1 400.7 361.1 102.1 257.4 144.8 Minority Interest (4.4) (5.1) (6.2) (6.1) (4.5) (7.6) (4.8) (5.0) (1.6) (4.8) Income from Cont

  18. Slide 18: Appendix: FY'09 Guidance

    Q3 FY’09 Earnings Appendix: FY’09 Guidance Full Year FY09 Guidance Diluted EPS - Continuing Ops. GAAP $2.89-$2.99 Q109 Global Cost Reduction Plan $0.55 Q309 Global Cost Reduction Plan $0.39 Q309 Pension Settlement $0.02 Q309 Customer Bankruptcy and Asset Actions $0.10 Non GAAP $3.95-$4.05 18

  19. Slide 19: Thank you

    Thank you www.airproducts.com

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