Air Products Exceeds Q1 Profit Expectations, Boosted by Asia and Americas Sales
ALLENTOWN, Pa. - Air Products & Chemicals, Inc. (NYSE:APD) reported strong first-quarter results, surpassing Wall Street's profit estimates despite expenses related to a recent boardroom battle.
Financial Highlights:
* Net income attributable to Air Products rose 1.3% to $617.4 million.
* Adjusted earnings per share (EPS) of $2.85 beat analysts' estimates of $3.05.
* Quarterly dividend increased to $1.79 per share from $1.77.
* Company expects to return approximately $1.6 billion to shareholders in 2025.
Business Performance:
Increased sales in Asia and the Americas, which account for two of Air Products' largest segments, drove growth. The company benefited from positive signs of recovery in U.S. manufacturing, leading to increased demand for its gases in sectors including refining, chemicals, and metals.
Boardroom Changes:
Earlier this year, activist investor Mantle Ridge replaced long-time CEO Seifi Ghasemi with Eduardo Menezes, a former executive from Air Products rival Linde. The transition resulted in a $29.9 million charge in the first quarter.
Outlook:
Air Products projects second-quarter adjusted EPS in the range of $2.75 to $2.85, below analysts' expectations of $3.05. However, the company remains optimistic about its long-term growth prospects.