Lehigh Valley, Pennsylvania - Air Products reported record net income of $293 million for its fiscal 2007 fourth quarter, compared to $128 million for the same quarter of 2006.
Record Q4 revenues of $2603 million were up 12 percent from Q4 2006 as a result of higher pricing and volumes in Merchant Gases, and higher volumes in Tonnage Gases, Electronics and Performance Materials, the group said.
The company said its chemicals business' sales of $252 million were up 13 percent and operating income of $29 million rose 96 percent, as a result of higher polymers and polyurethane intermediates volumes.
The group's fiscal 2007 sales of $10 038 million were up 15 percent, while its net income of $1036 million was up 43 percent over the prior year, which the company attributes to "higher volumes broadly" across its gases, electronics, performance materials, and energy and equipment businesses. Gases are the bulk of Air Products' business, with total sales of $1454 million in Q4 2007.
Air Products said the Q4 results included a gain on a polyurethane intermediates contract settlement, plus a loss for discontinued operations related to the pending sale of the company's High Purity Process Chemicals business, announced 24 Oct.
Commenting on the results, John McGlade, president and chief executive officer, said, "We had strong operating performance in our fiscal 2007 fourth quarter, closing out our fourth consecutive year of double-digit sales and earnings growth. Most importantly, we significantly improved our return on capital … Our employees' focus on becoming a higher growth, higher return company delivered these outstanding results."
Looking forward, McGlade added, "We are targeting our fifth consecutive year of double-digit earnings growth in fiscal 2008 based on a strong project workload around the world and continued growth in global manufacturing."