- Air Products reported income from continuing operations of $294 million versus $246 million for the fourth quarter of fiscal 2009.
- Fourth quarter revenues of $2,351 million increased 10 percent versus prior year and four percent sequentially.
- Operating income of $402 million rose 22 percent versus prior year and seven percent sequentially on higher volumes across all segments. For the year, operating income was up 25% on an adjusted basis. Operating margin of 16.5%, up 220 basis points.
- Merchant Gases sales of $948 million (40% of total) up 2% yoy
- Tonnage Gases sales of $752 million (32% of total) up 17% yoy
- Electronics and Performance Materials sales of $523 million (22% of total) up 20% yoy
- Equipment and Energy sales of $128 million (5% of total) up 5% yoy
Outlook: committed to delivering 2011 targets of double digit earnings growth, improving return on capital and achieving a 17 percent operating margin." Capex will fall between $1.5 - $1.7B.
Stats:
Debt/Cap: 42% vs 44% (6/10) and 48% (9/09)
2010 CFO: $1,552; CAPEX: $1,030; Div: $398 = FCF of $124MM (vs -$223MM in 2009)
EBITDA: $2.4B vs. $1.8B '09
Debt/EBITDA: 1.7x vs 2.5x '09
The credit metrics and performance would serve to increase their ability to make the ARG acquisition happen without a significant deterioration of underlying fundamentals.
ARG 2.85 '13s +145
ARG 3.25 '15 +175
APD 4.375 '19 +95
Trade Ideas:
S ARG 13s B ARG 15s - curve is very steep.
S APD 19s B ARG 15s
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