Air Products And Chemicals, Inc. · NYSE:APD

Air Products And Chemicals — Q2 2009 Earnings Presentation

17 slides from Air Products And Chemicals's earnings presentation, Apr 22, 2009

  1. Slide 1: Q2 FY09 Earnings Conference Call

    Q2 FY09 Earnings Conference Call April 22, 2009

  2. Slide 2: Forward-Looking Statements

    Forward-Looking Statements NOTE: This presentation contains “forward-looking statements” within the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are based on management’s reasonable expectations and assumptions as of the date of thi

  3. Slide 3: Consolidated Q2 Financials

    Consolidated Q2 Financials Fav/(Unfav) vs. ($Millions, Continuing Operations) Q2 FY09 Q2 FY08 Q1 FY09 Sales $1,955 (23%) (11%) - Underlying business (11%) (4%) - Currency (7%) (2%) - Nat’l Gas/RM pass-thru (5%) (5%) Operating Income $260 (31%) (10%) Operating Margin % 13.3% (140bp) 20bp Net Income $

  4. Slide 4: Q2 EPS Analysis

    Q2 EPS Analysis Q2 FY09 Q2 FY08 Change As-reported diluted EPS $0.97 $1.43 - Discontinued Ops 0.08 0.25 - Pension settlement charge - (0.08) Continuing Operations EPS $0.89 $1.26 ($0.37) Volume ($0.52) Price / raw materials Cost 0.13 0.12 } ($0.27) Currency (0.11) Equity Affiliates income (0.05) Low

  5. Slide 5: Merchant Gases

    Merchant Gases Fav/(Unfav) vs. Q2 FY09 Q2 FY08 Q1 FY09 Sales $870 (14%) (6%) - Volume (8%) (5%) - Price 6% 1% - Currency (12%) (2%) Operating Income $156 (17%) (8%) Operating Margin 17.9% (90bp) (50bp)  Lower volumes globally  Pricing actions continue to deliver 5

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

    Merchant Gases: Q2 Sales Analysis vs PY North America Europe Asia Sales % change (10%) (18%) (17%) - Volume (15%) (7%) (12%) - Price 5% 6% 5% - Currency - (17%) (10%)  Weak demand across most industries as customers extended holiday-related shutdowns 6

  7. Slide 7: Tonnage Gases

    Tonnage Gases Fav/(Unfav) vs. Q2 FY09 Q2 FY08 Q1FY09 Sales $625 (28%) (16%) - Volume (7%) -% - Nat’l gas/RM pass thru (15%) (14%) - Currency (6%) (2%) Operating Income $98 (12%) (10%) Operating Margin 15.7% 290bp 110bp  Refinery hydrogen volumes remain strong  Steel and chemical industry volumes l

  8. Slide 8: Electronics & Performance Materials

    Electronics & Performance Materials Fav/(Unfav) vs. Q2 FY09 Q2 FY08 Q1 FY09 Sales $332 (41%) (18%) - Volume (38%) (16%) - Price - (1%) - Currency (3%) (1%) Operating Income ($11) Operating Margin (3.3%)  Electronics sales (47%) (21%)  Performance Materials volume (31%) (12%) 8

  9. Slide 9: Equipment & Energy

    Equipment & Energy Fav/(Unfav) vs. Q2 FY09 Q2 FY08 Q1 FY09 Sales $128 22% 7% Operating Income $16 63% 133% Sales Backlog $281 38% (13%)  Favorable cost performance 9

  10. Slide 10: Outlook

    Outlook FQ3 2009 EPS $0.93 - $1.02*  Continued weak end markets  Sales up sequentially, down (~25%) vs. PY  Cost improvement actions FY2009 EPS $3.85 - $4.05**  WW manufacturing declines (9%) to (10%)  MSI declines ~35%  Capex in-line with prior year * This forecast excludes potential charges

  11. Slide 11: Appendix slides

    11 Appendix slides a

  12. Slide 12: Appendix: Q2 Sales Analysis

    Appendix: Q2 Sales Analysis Change versus Q2 FY08 Q1 FY09 Total Consolidated (23%) (11%) Comprised of:  Base business growth (11%) (4%) – Volume (13%) (4%) – Price 2% -  Nat’l gas/RM pass thru (5%) (5%)  Currency (7%) (2%) 12

  13. Slide 13: Appendix Q2 FY2009 Comparisons

    Appendix Q2 FY2009 Comparisons ($ Millions, except per share data) Non GAAP GAAP Measure Adjustments Non GAAP Measure % Change % Non GAAP Q209 vs. Q208 - Total Co. Q209 Q208 Change Q208 (1) Q209 Q208 Measure Sales 1,955.4 2,542.7 (23%) 1,955.4 2,542.7 (23%) Operating Income 260.4 348.6 (25%) 26.3 26

  14. Slide 14: Appendix: ROCE

    Appendix: ROCE $ Millions Quarter Ended Q107 Q207 Q307 Q407 Q108 Q208 Q308 Q408 Q109 Q209 Numerator Operating Income Reported 313.6 360.0 380.4 380.4 348.6 393.7 373.1 114.1 260.4 Equity Affiliate Income 27.5 29.5 30.1 25.3 42.4 46.5 30.8 24.5 27.0 Earnings before tax as reported 341.1 389.5 410.5 4

  15. Slide 15: Appendix: ROCE Tax Rate

    Appendix: ROCE Tax Rate Q207 Q307 Q407 Q108 Q208 Q308 Q408 Q109 Q209 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 Minority Interest (4.4) (5.1) (6.2) (6.1) (4.5) (7.6) (4.8) (5.0) (1.6) Income from Cont. Ops. Before Tax 299.5 340.3 362.2

  16. Slide 16: Appendix FY2009 Guidance

    Appendix FY2009 Guidance Full Year FY09 Guidance Diluted EPS - Continuing Ops. GAAP $3.30-$3.50 * Q109 Global Cost Reduction Plan $0.55 Non GAAP $3.85-$4.05 * This forecast excludes potential charges for future cost reduction plans and pension settlements. 16

  17. Slide 17: Thank you

    Thank you tell me more www.airproducts.com 17

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