Air Products Reports Q1 EPS Up 16% on Volume Growth and Improved Margins; Raises 2008 Full Year EP...($4.20 2008 Forecast GAAP ...),Health

2008 Forecast GAAP $1.09-$1.13 $4.76-$4.91

Pension settlement .08 .09

2008 Forecast Non-GAAP $1.17-$1.21 $4.85-$5.00

2008 Forecast GAAP $4.76-$4.91

2007 GAAP $4.50

% Change GAAP 6%-9%

2008 Forecast Non-GAAP $4.85-$5.00

2007 Non-GAAP $4.20

% Change Non-GAAP 15%-19%

AIR PRODUCTS AND CHEMICALS, INC. and Subsidiaries

CONSOLIDATED INCOME STATEMENTS

(Unaudited)

(Millions of dollars, except for share data)

Three Months Ended

31 December

2007 2006

SALES $2,473.6 $2,267.8

COSTS AND EXPENSES

Cost of sales 1,788.5 1,649.7

Selling and administrative 296.8 275.4

Research and development 30.3 32.1

Pension settlement 1.4 --

Other (income) expense, net (15.4) (6.8)

OPERATING INCOME 372.0 317.4

Equity affiliates' income 25.3 27.3

Interest expense 41.0 39.1

INCOME FROM CONTINUING OPERATIONS BEFORE TAXES

AND MINORITY INTEREST 356.3
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