Air Products reported third quarter results led by strong performance in Merchant Gases, and Electronics and Performance Materials.
For the quarter ended June 30, 2014, net income was $314 million, up nine percent, and diluted earnings per share (EPS) was $1.46, an increase of seven percent, compared with results for the third quarter of 2013.
Third quarter sales of $2,635 million increased three percent versus prior year, driven by higher volumes across all business segments. Excluding the prior exit from the Polyurethane Intermediates business (PUI), underlying sales improved four percent versus prior year on three percent higher volumes. Sequentially, sales increased two percent on four percent higher volumes in Electronics and Performance Materials, Tonnage Gases, and Merchant Gases.
Operating income of $414 million increased eight percent versus prior year, largely on higher volumes in Electronics and Performance Materials, and better pricing in Merchant Gases. Operating margin of 15.7 percent improved 70 basis points, with positive volumes more than offsetting higher costs, primarily from maintenance outages. Adjusted EBITDA* for the third quarter was $653 million, up seven percent versus the prior year and six percent sequentially.
Press Release, July 24, 2014; Image: Air Products