Air Products And Chemicals, Inc. · NYSE:APD

Air Products And Chemicals — Q1 FY2009 Earnings Presentation

18 slides from Air Products And Chemicals's earnings presentation, Jan 21, 2009

  1. Slide 1: Q1 FY09 Earnings Conference Call

    Q1 FY09 Earnings Conference Call January 21, 2009

  2. Slide 2: Forward-Looking Statements

    Forward-Looking Statements NOTE: This presentation contains “forward-looking statements” based on management’s reasonable expectations and assumptions as of the date of this document. Events or results described in forward-looking statements may be influenced by many factors not anticipated by manag

  3. Slide 3: Consolidated Q1 Financials

    Consolidated Q1 Financials Fav/(Unfav) vs. ($Millions, Continuing Operations) Q1 FY09 Q1 FY08 Q4 FY08 Sales $2,195 (9%) (19%) - Underlying business (5%) (8%) - Currency (5%) (6%) - Nat’l Gas/RM pass-thru 1% (5%) Operating Income $288 (24%) (23%) Operating Margin % 13.1% (270bp) (60bp) Net Income $20

  4. Slide 4: EPS

    EPS Q1 FY09 Q1 FY08 Change As-reported diluted EPS $0.32 $1.19 - Discontinued operations (0.10) 0.01 - Restructuring charge (0.55) -- Adjusted cont. ops. EPS* $0.97 $1.18 ($0.21) } Volume ($0.25) Price / raw materials 0.05 ($0.17) Cost 0.03 Currency/FX (0.13) Lower interest expense 0.01 Lower tax ra

  5. Slide 5: Merchant Gases

    Merchant Gases Fav/(Unfav) vs. Q1 FY09 Q1 FY08 Q4 FY08 Sales $925 (8%) (16%) - Volume (6%) (7%) - Price 6% - - Currency (8%) (9%) Operating Income $171 (15%) (13%) Operating Margin 18.4% (150bp) 50bp  Weak economies resulting in volume declines globally  Prices holding 5

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

    Merchant Gases: Q1 Sales Analysis vs PY North America Europe Asia Sales % change 2% (13%) (8%) - Volume (6%) (7%) (6%) - Price 8% 6% 5% - Currency - (12%) (7%)  Volume decline accelerated in quarter with weak holiday period  Weak demand across most industries  Steel shutdowns impacting LAR supply

  7. Slide 7: Tonnage Gases

    Tonnage Gases Fav/(Unfav) vs. Q1 FY09 Q1 FY08 Q4FY08 Sales $744 (6%) (21%) - Volume (excl. hurricanes) (2%) (7%) - Hurricane impact (2%) 3% - Nat’l gas/RM pass thru 2% (13%) - Currency (4%) (4%) Operating Income $109 (2%) (19%) Operating Margin 14.6% 60bp 30bp  Hydrogen volumes up despite hurricane

  8. Slide 8: Electronics & Performance Materials

    Electronics & Performance Materials Fav/(Unfav) vs. Q1 FY09 Q1 FY08 Q4 FY08 Sales $407 (21%) (27%) - Volume (20%) (24%) - Price 1% - - Currency (2%) (3%) Operating Income $25 (63%) (41%) Operating Margin 6.1% (670bp) (150bp)  Electronics sales (28%) (26%)  Lower fab utilization rates  Performance

  9. Slide 9: Equipment & Energy

    Equipment & Energy Fav/(Unfav) vs. Q1 FY09 Q1 FY08 Q4 FY08 Sales $120 19% (5%) Operating Income $7 (25%) (55%) Sales Backlog $324 32% (19%)  Backlog increases from prior year on higher ASU activity 9

  10. Slide 10: Outlook

    Outlook FQ2 2009 EPS $0.80 - $0.90  Weaker end markets  Cost improvement actions FY2009 EPS $4.00 - $4.30*  WW manufacturing declines (4%) to (5%)  MSI declines >20%  Capex in-line with prior year 10 *Non-GAAP, see appendix for reconciliation

  11. Slide 11: Appendix slides

    11 Appendix slides ae

  12. Slide 12: Appendix: Q1 Sales Analysis

    Appendix: Q1 Sales Analysis Change versus Q1 FY08 Q4 FY08 Total Consolidated (9%) (19%) Comprised of:  Base business growth (5%) (8%) – Volume (7%) (9%) – Hurricane impact (1%) 1% – Price 3% -  Currency (5%) (6%)  Nat’l gas/RM pass thru 1% (5%) 12

  13. Slide 13: Appendix: "Other" Segment

    Appendix: “Other” Segment Q1 FY09 Q1 FY08 Operating Loss ($23) ($4)  FX Gain/(Loss) ($8) $5  LIFO reserve ($11) ($6)  All other ($4) ($3) 13

  14. Slide 14: Appendix: Q1 FY2009 Comparisons

    Appendix Q1 FY2009 Comparisons ($ Millions, except per share data) FY09 Non GAAP GAAP Measure Adjustment Non GAAP Measure % Change % Non GAAP Q109 vs. Q108 - Total Co. Q109 Q108 Change Q109 (1) Q109 Q108 Measure Sales 2,195.3 2,407.4 (9%) 2,195.3 2,407.4 (9%) Operating Income 114.1 380.4 (70%) 174.2

  15. Slide 15: Appendix: ROCE

    Appendix: ROCE $ Millions Quarter Ended Q107 Q207 Q307 Q407 Q108 Q208 Q308 Q408 Q109 Numerator Operating Income Reported 313.6 360.0 380.4 380.4 348.6 393.7 373.1 114.1 Equity Affiliate Income 27.5 29.5 30.1 25.3 42.4 46.5 30.8 24.5 Earnings before tax as reported 341.1 389.5 410.5 405.7 391.0 440.2

  16. Slide 16: Appendix: ROCE Tax Rate

    Appendix: ROCE Tax Rate Q207 Q307 Q407 Q108 Q208 Q308 Q408 Q109 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 Minority Interest (4.4) (5.1) (6.2) (6.1) (4.5) (7.6) (4.8) (5.0) Income from Cont. Ops. Before Tax 299.5 340.3 362.2 358.8 347.6 393.

  17. Slide 17: Appendix: FY2009 Guidance

    Appendix FY2009 Guidance Full Year FY09 Guidance Diluted EPS - Continuing Ops. GAAP $3.45-$3.75 Q109 Global Cost Reduction Plan $0.55 Non GAAP $4.00-$4.30 17

  18. Slide 18: Thank you

    Thank you tell me more www.airproducts.com 18

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