Air Products and Chemicals misses profit estimates on higher costs

(Reuters) - Air Products and Chemicals Inc missed analysts’ estimates for first-quarter profit on Thursday, as higher costs offset sustained demand for its industrial gas products in end-markets.

The company’s adjusted income was $2.64 per share in the quarter, compared with analysts’ expectations of $2.70, according to Refinitiv IBES data.

The company performed well in the quarter despite facing “significant economic weakness, currency challenges and other headwinds”, Chief Executive Seifi Ghasemi said in a statement.

Chemical companies have been battling higher production costs in recent quarters due to energy inflation after Russia’s invasion of Ukraine, while China’s COVID-led lockdowns and the prospect of a global slowdown has hit demand.

Air Products — a provider of industrial gases and related equipment to industries such as refining, chemicals, metals, electronics, manufacturing and food — forecast second-quarter adjusted earnings of $2.50 to $2.70 per share. Analysts on average were expecting $2.68.

The company’s first-quarter sales increased 6% to $3.2 billion from a year earlier, but missed analysts’ estimate of the $3.3 billion.

Reporting by Ankit Kumar; Editing by Shilpi Majumdar