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More on Air Products and Chemicals (APD) FQ2: Net profit slips 2.7% to $296M, hurt by a fall in...

More on Air Products and Chemicals (APD) FQ2: Net profit slips 2.7% to $296M, hurt by a fall in sales across its operations. The industrial gas company plans to cut 600 jobs, which will cost $86.8M. Lowers FY EPS guidance to $5.47-$5.60 from $5.90-$6.30 prior. For FQ3, predicts $1.40-$1.45 vs. consensus of $1.51. Shares -3.1%.
Comments (2)
  • Charles A. Smith
    , contributor
    Comments (1116) | Send Message
     
    APD a short-cycle biz that often flashes yellow when economy is slowing.
    24 Apr 2012, 10:56 AM Reply Like
  • aholzer
    , contributor
    Comments (59) | Send Message
     
    Normally, I would agree but there are indications that the very low natural gas prices are going to create significant leverage going forward. I think the slight slowdown of the last quarter is being used as an excuse. I have a friend in the industry who tells me the new project plans across the industry are very strong. It often take 6-9 months for energy prices to impact profitability as prior hedging activities get unwound. I still like the company and may nibble some more if i can get it a bit cheaper.
    24 Apr 2012, 11:54 AM Reply Like
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