Air Products misses by $0.03, beats on revs; guides Q3 EPS below consensus; guides FY14 EPS in-line
Reports Q2 (Mar) earnings of $1.32 per share, $0.03 worse than the Capital IQ Consensus Estimate of $1.35; revenues rose 3.9% year/year to $2.58 bln vs the $2.54 bln consensus.
- Co issues downside guidance for Q3, sees EPS of $1.42-1.47 vs. $1.50 Capital IQ Consensus Estimate.
- Co issues in-line guidance for FY14, lowers top end of EPS to $5.70-5.85 from prior guidance of $5.70-5.90 vs. $5.78 Capital IQ Consensus Estimate.
- Merchant Gases sales of $1,040 million increased four percent versus prior year, primarily on higher volumes in U.S./Canada, Asia and Latin America, partially offset by lower helium volumes due to continued global supply constraints. Operating income of $143 million was down 15 percent versus prior year and operating margin of 13.8% was down 300 basis points, primarily due to higher costs, including weather-related impacts in U.S./Canada.
- Outlook Details: Capital expenditure forecast for the current fiscal year is unchanged at approximately $2.0 billion...Air Products' momentum will continue to increase as we load assets, win new business and bring projects on-stream. Going forward, we remain focused on continuing to increase productivity and generate benefits from further price and cost actions. We are confident in our ability to deliver strong earnings growth in the second half of this year."