UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
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FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
Date of Report (Date of earliest event reported) 19 October 2000
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<CAPTION>
Air Products and Chemicals, Inc.
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(Exact name of registrant as specified in charter)
<S> <C> <C>
Delaware 1-4534 23-1274455
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(State of other jurisdiction of incorporation) (Commission file number) (IRS Identification number)
7201 Hamilton Boulevard, Allentown, Pennsylvania 18195-1501
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(Address of principal executive offices) (Zip Code)
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Registrant's telephone number, including area code (610) 481-4911
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Item 5. Other Events.
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AIR PRODUCTS PRE-ANNOUNCES STRONG
SEPTEMBER QUARTER OPERATING RESULTS
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LEHIGH VALLEY, Pa. (October 19, 2000) - Air Products and Chemicals,
Inc. (NYSE:APD) announced today operating results for its fourth fiscal
quarter ended September 30, 2000, of $.64 cents per share, an increase
of 19 percent from last year's $.54 cents, based on record sales and
net income from operations. These results do not include the special
items noted in the footnotes to the financial summaries.
Operating results were driven by strong industrial gases performance.
Gases sales increased 23 percent, operating income was up 41 percent,
and the worldwide gases operating margin was 20.2 percent.
Chemicals sales increased 4 percent, but operating income fell
primarily due to higher energy and raw material costs.
As previously announced, the company will release its complete
financial statements on Monday, October 23, in a press release followed
by a teleconference at 10:00 a.m. EDT.
Air Products and Chemicals, Inc. is an international supplier of
industrial gases and related equipment, and selected chemicals. With
corporate headquarters in eastern Pennsylvania's Lehigh Valley, near
Allentown, the company has annual sales of more than $5 billion,
operations in over 30 countries and 17,000 employees around the globe.
Financial summaries follow:
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AIR PRODUCTS AND CHEMICALS, INC.
SUMMARY OF CONSOLIDATED FINANCIAL INFORMATION
(Unaudited)
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(Millions of dollars, except per share)
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Three Months Ended Twelve Months Ended
30 September 30 September
2000 1999 2000 1999
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<S> <C> <C> <C> <C>
Sales $1,449.1 $1,254.4 $5,467.1 $5,020.1
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Net Income:
As reported $218.5 $122.6 $124.2 $450.5
Exclusive of special items $139.4(a) $115.8(c) $532.6(b) $450.8(d)
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Basic Earnings Per Share:
As reported $1.02 $.58 $.58 $2.12
Exclusive of special items $.65 $.55 $2.50 $2.12
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Diluted Earnings Per Share:
As reported $1.01 $.57 $.57 $2.09
Exclusive of special items $.64(a) $.54(c) $2.46(b) $2.09(d)
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(a) Excludes an after-tax gain of $79.1 million, or $.37 per share, on the sale
of the polyvinyl alcohol business.
(b) Excludes an after-tax gain of $79.1 million, or $.37 per share, on the sale
of the polyvinyl alcohol business, an after-tax charge of $456.5 million,
or $2.12 per share, for costs related to the BOC transaction, an after-tax
charge of $35.0 million, or $.16 per share, for a global cost reduction
plan, and an after-tax gain of $4.0 million, or $.02 per share, on the sale
of packaged gas facilities.
(c) Excludes a net after-tax gain of $4.4 million, or $.02 per share, from BOC
currency options net of expenses and includes an after-tax gain of
$2.4 million, or $.01 per share, due to reductions in costs for the
formation of Air Products Polymers.
(d) Excludes a net after-tax gain of $4.4 million, or $.02 per share, from BOC
currency options net of expenses, an after-tax gain of $23.6 million, or
$.11 per share, related to the formation of Air Products Polymers, an
after-tax charge of $21.9 million, or $.10 per share, related to the global
cost reduction programs, and an after-tax charge of $6.4 million, or $.03
per share, primarily related to Chemicals facility closure costs.
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AIR PRODUCTS AND CHEMICALS, INC. and Subsidiaries
SUMMARY BY BUSINESS SEGMENTS
(Unaudited)
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<CAPTION>
Business segment information is shown below:
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(Millions of dollars) Three Months Ended Twelve Months Ended
30 September 30 September
2000 1999 2000 1999
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<S> <C> <C> <C> <C>
Revenues from external customers
Gases $948.0 $770.4 $3,465.5 $2,996.4
Equipment 59.4 61.1 228.8 366.3
Chemicals 441.7 422.9 1,772.8 1,657.4
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Segment Totals 1,449.1 1,254.4 5,467.1 5,020.1
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Consolidated Totals $1,449.1 $1,254.4 $5,467.1 $5,020.1
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Operating income
Gases $191.5 $135.8 $673.1(a)(b) $521.9(c)
Equipment 6.7 4.6 9.9(a) 34.7(c)
Chemicals 35.7 52.1 182.1(a) 193.7(c)(d)
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Segment Totals 233.9 192.5 865.1 750.3
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Corporate research and development and (4.6) (7.2) (34.3)(a) (25.6)(c)
other income/(expense)
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Consolidated Totals $229.3 $185.3 $830.8 $724.7
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Operating income (excluding special
items)
Gases $191.5 $135.8 $698.8 $548.9
Equipment 6.7 4.6 16.8 37.4
Chemicals 35.7 52.1 197.7 208.0
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Segment Totals 233.9 192.5 913.3 794.3
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Corporate research and development and (4.6) (7.2) (33.4) (25.1)
other income/(expense)
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Consolidated Totals $229.3 $185.3 $879.9 $769.2
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Equity affiliates' income
Gases 21.0 $18.3 $73.6 $46.8
Equipment .2 .5 2.0 1.6
Chemicals 3.8 3.5 12.5 12.4
Other .6 .1 (.5) .7
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Segment Totals 25.6 22.4 87.6 61.5
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Consolidated Totals $25.6 $22.4 $87.6 $61.5
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(a) The results for the twelve months ended 30 September 2000 include the cost
reduction charge in Gases ($32.0 million), Equipment ($6.9 million),
Chemicals ($15.6 million), and Corporate ($.9 million).
(b) The results for the twelve months ended 30 September 2000 include a gain on
the sale of packaged gas facilities of $6.3 million.
(c) The results for the twelve months ended 30 September 1999 include the cost
reduction charge in Gases ($27.0 million), Equipment ($2.7 million),
Chemicals ($4.0 million), and Corporate ($.5 million).
(d) The results for the twelve months ended 30 September 1999 include a charge
of $10.3 million primarily related to Chemicals facility closure costs.
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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned, thereunto duly authorized.
Air Products and Chemicals, Inc.
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(Registrant)
Dated: 20 October 2000 By: /s/ Leo J. Daley
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Leo J. Daley
Vice President - Finance and Controller
(Chief Financial Officer)
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