Air Products Reports Q1 EPS Up 16% on Volume Growth and Improved Margins; Raises 2008 Full Year EP... ( First Quarter Segment Performance ....)

Air Products Reports Q1 EPS Up 16% on Volume Growth and Improved Margins; Raises 2008 Full Year EPS Guidance

Date:1/23/2008

First Quarter Segment Performance

-- Merchant Gases sales of $897 million were up 21 percent and operating

income of $175 million increased 26 percent over the prior year on

higher volumes, improved pricing, a weaker dollar and productivity.

Margins increased to 19.6 percent, up 80 basis points versus the prior

year.

-- Tonnage Gases sales of $791 million were up 15 percent and operating

income of $111 million increased 16 percent over the prior year.

Revenues increased from higher volumes, increased natural gas costs and

a weaker dollar. The operating income increases were driven by higher

volumes, improved plant efficiencies and asset sales. These were

partially offset by planned maintenance costs for a number of plant

outages and higher bidding expenses related to the significant growth

opportunities in this segment.

-- Electronics and Performance Materials sales of $514 million were up six

percent and operating income of $66 million increased 33 percent over

the prior year on improved volumes. Electronics sales were driven by

higher specialty materials and bulk gas volumes, while Performance

Materials volume gains were driven by demand for surfactants and

specialty additives used in environmentally friendly formulations.

Margins increased significantly to 12.8 percent, a 260 basis point

improvement over the prior year, reflecting the impact of restructuring

actions in Electronics and increased sales of formulated products in

Performance Materials.

-- Equipment and Energy sales of $100 million and operating income of $9

million decreased from the prior year, as expected. The company

received one new LNG heat exchanger order during the quarter.

-- Healthcare sales of $171 million were up 10 percent and operating

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Air Products Reports Q1 EPS Up 16% on Volume Growth and Improved Margins; Raises 2008 Full Year EP...( First Quarter Segment Performance ....),Health