Air Products & Chemicals Cuts FY24 Earnings View After 1Q Revenue Declines

By Dean Seal

Air Products & Chemicals cut its annual earnings outlook after recording an unexpected decline in fiscal first-quarter sales as lower energy-cost pass through offset higher prices and volumes.

The provider of essential industrial gases and chemicals posted a profit of $609.3 million, or $2.73 a share, for the quarter ended Dec. 31, compared with $572.2 million, or $2.57 a share, in the same quarter a year ago.

Stripping out one-time items, adjusted earnings were $2.82 a share. Analysts polled by FactSet had been looking for $3 a share.

Sales slid to $3 billion from $3.17 billion, below analyst projections for growth to $3.2 billion, according to FactSet.

The shortfall was attributed to an 11% drop in energy cost-pass through, which affected sales but not earnings. The decline more than offset 3% higher volumes, 1% higher prices and favorable foreign currency translation.

The company now expects adjusted earnings of $12.20 to $12.50 a share for fiscal 2024, a 60-cent cut to upper and lower ends of its previous guidance range. Analysts surveyed by FactSet had been forecasting $12.97 a share.

For the current quarter, adjusted earnings are expected to hit $2.60 to $2.75 a share, below current estimates for $3.16 a share, according to FactSet.

Write to Dean Seal at dean.seal@wsj.com

(END) Dow Jones Newswires

February 05, 2024 06:42 ET (11:42 GMT)

Copyright (c) 2024 Dow Jones & Company, Inc.