Air Products Reports Fiscal Q3 EPS from Continuing Operations of $1.32, Up 18%*

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LEHIGH VALLEY, Pa., July 23 /PRNewswire-FirstCall/ -- Air Products
(NYSE: APD) today reported net income of $70 million, or diluted earnings per
share (EPS) of $0.32, for its fiscal third quarter ended June 30, 2008. These
results include an impairment charge for its U.S. Healthcare business of $237
million after-tax, or $1.09 per share, and income from discontinued operations
of $19 million after-tax, or $0.09 per share, principally from the company's
sale of its remaining polymer emulsions assets. Excluding these items, income
from continuing operations of $288 million increased 16 percent and diluted
EPS of $1.32 increased 18 percent over the prior year.
Third quarter revenues of $2,808 million were up 16 percent from the prior
year on higher volumes in the Merchant Gases and Electronics and Performance
Materials segments, higher pricing in Merchant Gases, favorable currency, and
higher natural gas cost pass through. Excluding the U.S. Healthcare
impairment charge, operating income of $382 million increased nine percent
versus the prior year. In addition, higher equity affiliate income
contributed to the quarter's results, with continued growth and operating
performance in a number of countries.
John McGlade, chairman, president and chief executive officer, said, "Our
businesses again delivered strong growth in a challenging economic
environment. Our consistent operating performance reflects the actions we
have taken to transform Air Products into a higher growth and less cyclical
company under any economic scenario. We also announced two major orders in
Tonnage Gases, completed the sale of our remaining polymer emulsions assets
and, as we announced yesterday, are moving forward with the decision to sell
our U.S. Healthcare business."
Third Quarter Segment Performance
-- Merchant Gases sales of $973 million were up 19 percent. Operating
income of $177 million increased 20 percent over the prior year on improved
volumes across all regions, continued strong pricing in North America, and
favorable currency impacts.
-- Tonnage Gases sales of $976 million were up 26 percent on higher
natural gas price pass through. Operating income of $126 million increased
four percent over the prior year due to improved plant efficiencies.
-- Electronics and Performance Materials sales of $580 million were up
nine percent, and operating income of $70 million increased 13 percent over
the prior year on higher volumes. Electronics sales were driven by higher
specialty materials and tonnage volumes, while Performance Materials volume
gains were driven by growth in Asia and higher prices.
-- Equipment and Energy sales of $107 million declined 20 percent, and
operating income of $4 million decreased significantly from the prior year,
reflecting the expected lower liquefied natural gas heat exchanger activity.
-- Healthcare sales of $172 million were up nine percent, and excluding
the impairment charge, operating income of $13 million increased over the
prior year, driven by favorable currency and continued volume growth and good
cost performance in Europe.
Outlook
McGlade said, "We expect to continue to benefit from our very strong new
business signings and the geographic diversity of our markets and portfolio of
businesses. We are not, however, relying on growth and pricing alone. We
will continue to focus relentlessly on driving productivity and reducing
costs."
The company currently anticipates fiscal fourth quarter EPS from
continuing operations in the range of $1.37 to $1.42 per share, or 19 to 23
percent year-on-year earnings growth.
Air Products (NYSE: APD) serves customers in industrial, energy,
technology and healthcare markets worldwide with a unique portfolio of
atmospheric gases, process and specialty gases, performance materials, and
equipment and services. Founded in 1940, Air Products has built leading
positions in key growth markets such as semiconductor materials, refinery
hydrogen, home healthcare services, natural gas liquefaction, and advanced
coatings and adhesives. The company is recognized for its innovative culture,
operational excellence and commitment to safety and the environment. Air
Products has annual revenues of $10 billion, operations in over 40 countries,
and 22,000 employees around the globe. For more information, visit
www.airproducts.com.
NOTE: This document contains "forward-looking statements" within the safe
harbor provisions of the Private Securities Litigation Reform Act of 1995.
These forward-looking statements are based on management's reasonable
expectations and assumptions as of the date of this document regarding
important risk factors. Actual performance and financial results may differ
materially from projections and estimates expressed in the forward-looking
statements because of many factors, including, without limitation, overall
economic and business conditions different than those currently anticipated;
future financial and operating performance of major customers and industries
served by the Company; the impact of competitive products and pricing;
interruption in ordinary sources of supply of raw materials; the ability to
recover unanticipated increased energy and raw material costs from customers;
costs and outcomes of litigation or regulatory activities; consequences of
acts of war or terrorism impacting the United States' and other markets; the
effects of a pandemic or a natural disaster; the ability to attract, hire and
retain qualified personnel in all regions of the world where the company
operates; charges related to portfolio management, goodwill recoverability,
business restructuring and cost reduction actions; the success of implementing
cost reduction programs; the timing, impact, and other uncertainties of future
acquisitions or divestitures; unanticipated contract terminations or customer
cancellation or postponement of projects or sales; significant fluctuations in
interest rates and foreign currencies from that currently anticipated; the
continued availability of capital funding sources in all of the company's
foreign operations; the impact of new or changed environmental, healthcare,
tax or other legislation and regulations in jurisdictions in which the Company
and its affiliates operate; the impact of new or changed financial accounting
standards; and the timing and rate at which tax credits can be utilized. The
Company disclaims any obligation or undertaking to disseminate any updates or
revisions to any forward-looking statements contained in this document to
reflect any change in the Company's assumptions, beliefs or expectations or
any change in events, conditions or circumstances upon which any such
forward-looking statements are based.

*The presentation of non-GAAP measures is intended to enhance the
usefulness of financial information by providing measures which the Company's
management uses internally to evaluate the Company's baseline performance.
Presented below is a reconciliation of reported GAAP results to non-GAAP
measures.

Continuing Operations
Q3 Q3 Q3 Q4
Operating Income Diluted Diluted
Income EPS EPS

2008 GAAP $67.6 $50.8 $.23
2007 GAAP 352.4 275.5 1.24
% Change GAAP (81%) (82%) (81%)

2008 GAAP $67.6 $50.8 $.23
U.S. Healthcare impairment 314.8 237.0 1.09
2008 Non-GAAP Measure $382.4 $287.8 $1.32

2007 GAAP $352.4 $275.5 $1.24 $1.30
Gain on contract settlement -- -- -- (.11)
Global cost reduction plan -- -- -- .04
Pension settlement -- -- -- .03
Donation/sale of cost
investment -- -- -- (.09)
Tax audit
settlements/adjustments -- (27.5) (.12) (.05)
U.S. Healthcare results (a) -- -- -- .03
2007 Non-GAAP Measure $352.4 $248.0 $1.12 $1.15

% Change Non-GAAP Measure 9% 16% 18%

2008 Forecast $1.37-$1.42
2007 GAAP $1.30
% Change GAAP 5%-9%

2008 Forecast $1.37-$1.42
2007 Non-GAAP $1.15
% Change Non-GAAP 19%-23%

HEALTHCARE
2008 GAAP $(301.7)
U.S. Healthcare impairment 314.8
2008 Non-GAAP Measure $13.1

(a) The U.S. Healthcare business will be reported as a discontinued
operation beginning in the fourth quarter of 2008.

AIR PRODUCTS AND CHEMICALS, INC. and Subsidiaries
CONSOLIDATED INCOME STATEMENTS
(Unaudited)

(Millions of dollars, except for share data)
Three Months Ended Nine Months Ended
30 June 30 June
2008 2007 2008 2007

SALES $2,808.0 $2,416.2 $7,886.9 $6,982.0
COSTS AND EXPENSES
Cost of sales 2,073.0 1,749.5 5,765.3 5,075.1
Selling and administrative 320.7 295.0 929.3 854.0
Research and development 33.1 33.0 97.7 97.4
U.S. Healthcare impairment 314.8 -- 314.8 --
Pension settlement 1.0 -- 28.7 --
Other (income) expense, net (2.2) (13.7) (26.7) (22.9)
OPERATING INCOME 67.6 352.4 777.8 978.4
Equity affiliates' income 46.5 29.5 114.2 84.3
Interest expense 39.6 44.2 119.7 120.6
INCOME FROM CONTINUING OPERATIONS
BEFORE TAXES AND MINORITY INTEREST 74.5 337.7 772.3 942.1
Income tax provision 16.1 57.1 193.2 214.2
Minority interest in earnings of
subsidiary companies 7.6 5.1 18.2 14.6
INCOME FROM CONTINUING OPERATIONS 50.8 275.5 560.9 713.3
INCOME FROM DISCONTINUED
OPERATIONS, net of tax 19.3 9.4 87.2 29.5
NET INCOME $70.1 $284.9 $648.1 $742.8
BASIC EARNINGS PER COMMON SHARE
Income from continuing operations $.24 $1.28 $2.64 $3.29
Income from discontinued operations .09 .04 .41 .14
Net Income $.33 $1.32 $3.05 $3.43
DILUTED EARNINGS PER COMMON SHARE
Income from continuing operations $.23 $1.24 $2.55 $3.20
Income from discontinued operations .09 .04 .40 .13
Net Income $0.32 $1.28 $2.95 $3.33
WEIGHTED AVERAGE OF COMMON
SHARES OUTSTANDING (in millions) 211.2 216.1 212.8 216.4
WEIGHTED AVERAGE OF COMMON
SHARES OUTSTANDING ASSUMING
DILUTION (in millions) 218.2 223.1 219.9 223.3
DIVIDENDS DECLARED PER
COMMON SHARE - Cash $.44 $.38 $1.26 $1.10

Other Data from Continuing
Operations:
Capital Expenditures $276.3 $748.3 $808.2 $1,259.3
Depreciation and Amortization 226.6 195.2 668.7 582.1

AIR PRODUCTS AND CHEMICALS, INC. and Subsidiaries
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited)

(Millions of dollars)
30 June 30 September
2008 2007
ASSETS
CURRENT ASSETS
Cash and cash items $126.2 $40.5
Trade receivables, less allowances for doubtful
accounts 1,826.7 1,578.5
Inventories and contracts in progress 715.3 746.2
Prepaid expenses 117.0 108.2
Other receivables and current assets 333.4 240.1
Current assets of discontinued operations 3.0 144.9
TOTAL CURRENT ASSETS 3,121.6 2,858.4
INVESTMENT IN NET ASSETS OF AND ADVANCES TO
EQUITY AFFILIATES 865.0 778.1
PLANT AND EQUIPMENT, at cost 15,515.5 14,600.3
Less accumulated depreciation 8,656.2 7,996.6
PLANT AND EQUIPMENT, net 6,859.3 6,603.7
GOODWILL 994.7 1,199.9
INTANGIBLE ASSETS, net 300.2 276.2
OTHER NONCURRENT ASSETS 935.1 638.6
NONCURRENT ASSETS OF DISCONTINUED OPERATIONS -- 304.6
TOTAL ASSETS $13,075.9 $12,659.5

LIABILITIES AND SHAREHOLDERS' EQUITY
CURRENT LIABILITIES
Payables and accrued liabilities $1,633.1 $1,550.9
Accrued income taxes 112.3 108.6
Short-term borrowings and current portion of
long-term debt 382.8 694.4
Current liabilities of discontinued operations .3 68.8
TOTAL CURRENT LIABILITIES 2,128.5 2,422.7
LONG-TERM DEBT 3,647.2 2,976.5
DEFERRED INCOME & OTHER NONCURRENT LIABILITIES 993.0 872.0
DEFERRED INCOME TAXES 623.0 705.6
NONCURRENT LIABILITIES OF DISCONTINUED
OPERATIONS -- 9.8
TOTAL LIABILITIES 7,391.7 6,986.6
Minority interest in subsidiary companies 115.5 92.9
Minority interest of discontinued operations -- 84.4
TOTAL MINORITY INTEREST 115.5 177.3
TOTAL SHAREHOLDERS' EQUITY 5,568.7 5,495.6
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $13,075.9 $12,659.5

AIR PRODUCTS AND CHEMICALS, INC. and Subsidiaries
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)

(Millions of dollars)
Nine Months Ended
30 June
2008 2007
OPERATING ACTIVITIES FROM CONTINUING OPERATIONS
Net income $648.1 $742.8
Income from discontinued operations, net of tax (87.2) (29.5)
Income from continuing operations 560.9 713.3
Adjustments to reconcile income to cash provided
by operating activities:
U.S. Healthcare impairment 314.8 --
Depreciation and amortization 668.7 582.1
Deferred income taxes (69.6) (6.5)
Undistributed earnings of unconsolidated
affiliates (59.6) (48.1)
Gain on sale of assets and investments (.2) (5.6)
Share-based compensation 47.1 49.2
Noncurrent capital lease receivables (160.5) (46.4)
Pension and other postretirement costs 110.8 103.2
Other 29.8 (5.1)
Working capital changes that provided (used) cash,
excluding effects of acquisitions and divestitures:
Trade receivables (200.6) (102.5)
Inventories (39.4) (16.2)
Contracts in progress 84.8 (29.3)
Prepaid expenses (7.8) (83.2)
Payables and accrued liabilities (74.5) (264.5)
Other (98.0) (30.5)
CASH PROVIDED BY OPERATING ACTIVITIES (a) 1,106.7 809.9
INVESTING ACTIVITIES FROM CONTINUING OPERATIONS
Additions to plant and equipment (b) (802.5) (730.5)
Acquisitions, less cash acquired (3.1) (527.1)
Investment in and advances to unconsolidated
affiliates (1.8) (.4)
Proceeds from sale of assets and investments 18.8 45.2
Proceeds from insurance settlements -- 14.9
Change in restricted cash (135.6) --
Other -- (4.7)
CASH USED FOR INVESTING ACTIVITIES (924.2) (1,202.6)
FINANCING ACTIVITIES FROM CONTINUING OPERATIONS
Long-term debt proceeds 480.7 503.3
Payments on long-term debt (97.8) (67.0)
Net (decrease) increase in commercial paper and
short-term borrowings (236.0) 389.4
Dividends paid to shareholders (256.1) (229.9)
Purchase of Treasury Stock (560.2) (380.9)
Proceeds from stock option exercises 80.9 145.4
Excess tax benefit from share-based
compensation/other 50.3 34.7
CASH (USED FOR) PROVIDED BY FINANCING ACTIVITIES (538.2) 395.0
DISCONTINUED OPERATIONS
Cash provided by (used for) operating activities 22.8 (1.1)
Cash provided by (used for) investing activities 413.5 (13.0)
Cash provided by financing activities -- 8.4
CASH PROVIDED BY (USED FOR) DISCONTINUED OPERATIONS 436.3 (5.7)
Effect of Exchange Rate Changes on Cash 5.1 2.3
Increase (decrease) in Cash and Cash Items 85.7 (1.1)
Cash and Cash Items - Beginning of Year 40.5 31.0
Cash and Cash Items - End of Period $126.2 $29.9

(a) Pension plan contributions were $123.0 $273.3
(b) Excludes capital lease additions of .8 1.3

AIR PRODUCTS AND CHEMICALS, INC. and Subsidiaries
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)

(Millions of dollars)

1. U.S. HEALTHCARE IMPAIRMENT
For the third quarter 2008, the Company performed an impairment analysis
and recorded a charge of $314.8 ($237.0 after-tax, or $1.09 per share) related
to its U.S. Healthcare business. The charge relates to the impairment of
goodwill for $294.3, intangible assets for $11.7, plant and equipment for
$7.8, and other assets for $1.0. The impairment reduces the carrying amount
of the U.S. Healthcare reporting unit goodwill and intangible assets to zero.
The impairment charge will not result in cash disbursement.
In 2007, the Company implemented several changes to improve performance,
including management changes, product and service offering simplification, and
other measures. However, market and competitive conditions have been more
challenging than anticipated and financial results have not met expectations.
In response to the disappointing financial results, during the third quarter
management conducted an evaluation of the strategic alternatives for the
business.
In accordance with FASB Statement No. 142, "Goodwill and Other Intangible
Assets" (SFAS No. 142), and FASB Statement No. 144, "Accounting for the
Impairment or Disposal of Long-Lived Assets" (SFAS No. 144), the Company
determined an interim test for impairment was required for its U.S. Healthcare
reporting unit during the third quarter of 2008, based on the combination of
events described above. The Company reforecast its cashflows and utilized
the expected present value of the future cash flows to calculate fair value of
the U.S. Healthcare reporting unit in completing its SFAS No. 142 and 144
impairment tests.
In July 2008, the Board of Directors authorized management to pursue the
sale of the U.S. Healthcare business, which will be reported as a discontinued
operation beginning in the fourth quarter of 2008. Additional charges may be
recorded in future periods dependent upon the timing and method of ultimate
disposition.
Below are the consolidated results of the Company as if the U.S.
Healthcare business was reported as a discontinued operation in the third
quarter of 2008.

Three Months Ended Nine Months Ended
30 June 30 June
2008 2007 2008 2007
Sales
As Reported $2,808.0 $2,416.2 $7,886.9 $6,982.0
U.S. Healthcare 58.3 67.3 187.1 205.1
Pro Forma $2,749.7 $2,348.9 $7,699.8 $6,776.9

Three Months Ended Nine Months Ended
30 June 30 June
2008 2007 2008 2007

Income from continuing
operations
As Reported $50.8 $275.5 $560.9 $713.3
U.S. Healthcare (244.2) (4.9) (256.2) (10.7)
Pro Forma $295.0 $280.4 $817.1 $724.0

Basic EPS Income from
continuing operations
As Reported $.24 $1.28 $2.64 $3.29
U.S. Healthcare (1.16) (.02) (1.20) (.05)
Pro Forma $1.40 $1.30 $3.84 $3.34

Diluted EPS Income from
continuing operations
As Reported $.23 $1.24 $2.55 $3.20
U.S. Healthcare (1.12) (.02) (1.16) (.05)
Pro Forma $1.35 $1.26 $3.71 $3.25

2. DISCONTINUED OPERATIONS
The Polymer Emulsions business and the High Purity Process Chemicals
(HPPC) business have been accounted for as discontinued operations. The
results of operations and cash flows of these businesses have been removed
from the results of continuing operations for all periods presented. The
balance sheet items of discontinued operations have been reclassified and are
segregated in the consolidated balance sheets.
Polymer Emulsions Business
On 30 June 2008, the Company sold its Elkton, Md., and Piedmont, S.C.
production facilities and the related North American atmospheric emulsions and
global pressure sensitive adhesives businesses to Ashland Inc. for $92.0. The
Company recorded a gain of $30.5 ($18.5 after-tax) in connection with the
sale, which included the recording of a retained environmental obligation
associated with the Piedmont site. The expense to record the environmental
obligation was $24.0 ($14.5 after-tax). The Piedmont site is under active
remediation for contamination caused by an insolvent prior owner. Before the
sale, which triggered expense recognition, remediation costs had been
capitalized since they improved the property as compared to its condition when
originally acquired. The sale of the Elkton and Piedmont facilities completed
the disposal of the Company's Polymer Emulsions business.
On 31 January 2008, the Company closed on the sale of its interest in its
vinyl acetate ethylene (VAE) polymers joint ventures to Wacker Chemie AG, its
long-time joint venture partner. As part of that agreement, the Company
received Wacker Chemie AG's interest in the Elkton, Md., and Piedmont, S.C.,
production facilities and their related businesses plus cash proceeds of
$258.2. The Company recognized a gain of $89.5 ($57.7 after-tax) in the
second quarter of 2008 for this sale which consisted of the global VAE
polymers operations including production facilities located in Calvert City,
Ky.; South Brunswick, N.J.; Cologne, Germany; and Ulsan, Korea; and commercial
and research capabilities in Allentown, Pa., and Burghausen, Germany. The
business produces VAE for use in adhesives, paints and coatings, paper, and
carpet applications.
The operating results of the Polymer Emulsions business have been
classified as discontinued operations and are summarized below:

Three Months Ended Nine Months Ended
30 June 30 June
2008 2007 2008 2007
Sales $31.4 $157.6 $261.4 $452.6

Income before taxes $1.9 $14.4 $17.5 $44.4
Income tax provision .8 5.4 6.3 16.7
Income from operations of $1.1 $9.0 $11.2 $27.7
discontinued operations
Gain on sale of business, net
of tax 18.5 -- 76.2 --
Income from discontinued
operations, net of tax $19.6 $9.0 $87.4 $27.7

HPPC Business
In September 2007, the Company's Board of Directors approved the sale of
its HPPC business, which had previously been reported as part of the
Electronics and Performance Materials operating segment. The Company's HPPC
business consisted of the development, manufacture, and supply of high-purity
process chemicals used in the fabrication of integrated circuits in the United
States and Europe. The Company wrote down the assets of the HPPC business to
net realizable value as of 30 September 2007, resulting in a loss of $15.3
($9.3 after-tax) in the fourth quarter of 2007.
In October 2007, the Company executed an agreement of sale with KMG
Chemicals, Inc. The sale closed on 31 December 2007 for cash proceeds of
$69.3 and included manufacturing facilities in the United States and Europe.
Subsequent to the sale, certain receivables and inventories are being sold to
KMG Chemicals, Inc. In the first quarter of 2008, this business generated
sales of $22.9 and income, net of tax, of $.2. Also, the Company recorded an
additional loss of $.5 ($.3 after-tax) on the sale of the business. In 2007,
the HPPC business generated sales of $21.2 and $66.2 and income, net of tax,
of $.4 and $1.8 in the three and nine months ended 30 June 2007, respectively.
3. NEW ACCOUNTING STANDARD
The Company adopted FASB Interpretation No. 48, "Accounting for
Uncertainty in Income Taxes-an interpretation of FASB Statement No. 109," (FIN
No. 48) on 1 October 2007. Upon adoption, the Company recognized a $25.1
increase to its liability for uncertain tax positions. This increase was
recorded as an adjustment to beginning retained earnings for $13.3 and
goodwill for $11.8.
4. PENSION SETTLEMENT
A number of corporate officers and others who were eligible for
supplemental pension plan benefits retired in fiscal year 2007. The Company's
supplemental pension plan provides for a lump sum benefit payment option at
the time of retirement, or for corporate officers six months after the
participant's retirement date. The Company recognizes pension settlements
when payments exceed the sum of service and interest cost components of net
periodic pension cost of the plan for the fiscal year. However, a settlement
loss may not be recognized until the time the pension obligation is settled.
Based on cash payments made, the Company recognized $10.3 for settlement
losses in the fourth quarter of 2007 and an additional $1.0 and $28.7 in the
three and nine months ended 30 June 2008, respectively. The Company expects
to recognize an additional $1 for settlement losses in the fourth quarter of
2008.
5. INCOME TAXES
In June 2007, the Company settled tax audits through fiscal year 2004 with
the Internal Revenue Service. The audit settlement resulted in a tax benefit
of $27.5 ($.12 per share).
6. BOC GAZY ACQUISITION
On 30 April 2007, the Company acquired 98.1% of the Polish industrial gas
business of BOC Gazy Sp z.o.o. (BOC Gazy) from The Linde Group for 370
million Euros or $506.8. The results of operations for BOC Gazy were included
in the Company's consolidated income statement after the acquisition date.
During the fourth quarter of 2007, the Company increased its ownership
percentage to 99.9%. The total acquisition cost, less cash acquired, was 380
million Euros or $518.4.
7. SHARE REPURCHASE PROGRAM
On 20 September 2007, the Board of Directors authorized the repurchase of
up to $1,000 of the Company's outstanding common stock. This action was in
addition to an existing $1,500 share repurchase authorization which was
announced in March 2006. As of 30 September 2007, the Company had purchased
15.0 million of its outstanding shares at a cost of $1,063.4. During the
first nine months of fiscal year 2008, the Company purchased 6.0 million of
its outstanding shares at a cost of $554.3. The Company has completed the
2006 authorization and will continue to purchase shares under the 2007
authorization at its discretion while maintaining sufficient funds for
investing in its businesses and growth opportunities.
8. BUSINESS SEGMENTS
Previously, the Company reported results for the Chemicals segment, which
consisted of the Polymer Emulsions business and the Polyurethane Intermediates
(PUI) business. Beginning with the first quarter of 2008, the Polymer
Emulsions business has been accounted for as discontinued operations as
discussed in Note 2. Also beginning with the first quarter of 2008, the PUI
business is reported as part of the Tonnage Gases segment and prior period
information has been restated to reflect this business reorganization.

AIR PRODUCTS AND CHEMICALS, INC. and Subsidiaries
SUMMARY BY BUSINESS SEGMENTS
(Unaudited)

(Millions of dollars)
Three Months Ended Nine Months Ended
30 June 30 June
2008 2007 2008 2007
Revenues from external customers
Merchant Gases $973.4 $817.1 $2,772.0 $2,341.6
Tonnage Gases 975.8 775.7 2,634.1 2,161.0
Electronics and Performance
Materials 579.7 530.5 1,656.1 1,546.2
Equipment and Energy 106.9 134.3 311.9 461.7
Healthcare 172.2 158.6 512.8 471.5
Segment and Consolidated Totals $2,808.0 $2,416.2 $7,886.9 $6,982.0

Operating income
Merchant Gases $177.2 $147.4 $519.5 $427.8
Tonnage Gases 125.5 120.6 347.7 308.2
Electronics and Performance
Materials 70.4 62.1 204.0 168.4
Equipment and Energy 4.0 15.8 23.3 59.0
Healthcare (a) (301.7) 8.5 (278.7) 24.9
Segment Totals 75.4 354.4 815.8 988.3
Other (b) (7.8) (2.0) (38.0) (9.9)
Consolidated Totals $67.6 $352.4 $777.8 $978.4

(Millions of dollars)
30 June 30 September
2008 2007
Identifiable assets (c)
Merchant Gases $4,555.1 $3,984.4
Tonnage Gases 3,494.6 3,328.4
Electronics and Performance Materials 2,466.1 2,435.3
Equipment and Energy 344.8 362.6
Healthcare 642.9 918.9
Segment Totals 11,503.5 11,029.6
Other 704.4 402.3
Discontinued operations 3.0 381.6
Consolidated Totals $12,210.9 $11,813.5

(a) Healthcare includes an impairment charge of $314.8 for the three and
nine months ended 30 June 2008. See Note 1 to the consolidated financial
statements.
(b) Other includes pension settlement charges of $1.0 and $28.7 for the
three and nine months ended 30 June 2008, respectively.
(c) Identifiable assets are equal to total assets less investments in and
advances to equity affiliates.
SOURCE Air Products

Katie McDonald of Air Products, +1-610-481-3673, mcdonace@airproducts.com