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
-- 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
-- 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'/>"/>
|SOURCE Air Products|
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