Air Products profit rises as operating margin improves

|About: Air Products and Chemicals,... (APD)|By:, SA News Editor

Air Products & Chemicals (APD) +0.8% premarket after reporting its FQ1 earnings rose 4.3% as improved operating margins offset a slight decline in revenue.

APD backs its full-year EPS outlook of $5.70-$5.90, and expects FQ2 earnings of $1.32-$1.37/share vs. $ 1.44 analyst consensus.

CEO John McGlade says APD's cost reduction efforts and signings helped boost profits, and says the company was bringing on new plants in China.

Sales in the merchant gases segment rose 3.8% to $1.05B, the tonnage gases segment reported a 10% drop in revenue, and sales in electronics and performance materials added 5.5%.

The operating margin widened to 15.1% from 14.5% as input costs fell 1.8%.