The Rising Influence of Rising Affluence

[DewDiligence]

APD Reports FY4Q10 Results

[APD’s fiscal year ends Sep 30. FY4Q10 was another solid quarter with sales of $2.35B (+10% YoY) and non-GAAP EPS of $1.35 (+18% YoY). For FY2011, APD is guiding for non-GAAP EPS of $5.50-5.70 vs $5.02 in FY2010; at the midpoint of this range, the FY2011 EPS growth rate is 16% and the current share price of $84.74 represents a forward P/E of 15x.

APD is a major beneficiary of The Global Demographic Tailwind for the reasons presented in #msg-53070399 and #msg-46518659 and exemplified in several recent posts on this board.]

http://www.reuters.com/article/idCNN2126507220101021

›Oct 21, 2010 7:54am EDT
By Ernest Scheyder

NEW YORK, Oct 21 (Reuters) - Air Products and Chemicals Inc (APD) posted a better-than-expected profit and a bullish forecast, giving the industrial gas supplier ammunition in its $5.5 billion effort to take over rival Airgas Inc (ARG).

Air Products earned $272.1 million, or $1.25 per share, in its fiscal fourth quarter, besting the year-ago period's $246 million, or $1.14 per share. The company, which took a $22 million charge during the quarter for the takeover effort, wants Airgas' vast network of retail distribution locations. Excluding that charge, worth about 10 cents per share, Air Products earned $1.35 per share for the quarter. By that measure, analysts expected earnings of $1.32 per share, according to Thomson Reuters I/B/E/S.

The company's capital expenditure forecast of $1.5 billion to $1.7 billion for 2011 "is a very good signal for future tonnage business," Air Products' second-largest unit, said Monness, Crespi, Hardt & Co analyst Christopher Shaw.

Earlier this month a Delaware Chancery Court judge refused to throw out a new Airgas bylaw that will advance Airgas' annual meeting by eight months, to January 2011. That bylaw lets Air Products nominate three more members to the Airgas board after its first three nominees were seated last month. Airgas said it will appeal the ruling.

Air Products said its fiscal fourth quarter revenue rose 10.4 percent to $2.35 billion, in line with Wall Street's expectations.

"We expect a continued, gradual global economic recovery in 2011," Air Products Chief Executive Officer John McGlade said in a statement.

For the fiscal first quarter, Air Products expects earnings per share in the range of $1.31 to $1.35 per share. Analysts expect $1.31 per share for the period.‹