(Reuters) – Industrial gases manufacturer Air Products beat Wall Street’s expectations for first quarter profit on Thursday, as higher sales in key markets helped offset an expensive boardroom battle.
The industrial gas giant, which produces helium and hydrogen, recently emerged from a months-long boardroom battle, absorbing a $29.9 million charge in the first quarter due to related costs.
Earlier this week, activist investor Mantle Ridge succeeded in replacing long-serving CEO, Seifi Ghasemi, with Eduardo Menezes, a former executive from Air Products’ rival, Linde.
Higher sales in Asia and the Americas – two of its largest segments, according to LSEG data – resulted in a 1.3% rise in net income attributable to Air Products, coming in at $617.4 million in the first quarter.
In December, U.S. manufacturing showed positive signs of recovery with increased production and new orders, boosting demand for Air Products’ services across various sectors such as refining, chemicals, metals, electronics, manufacturing, and food.
The Lehigh Valley, Pennsylvania-based company increased its quarterly dividend to $1.79 per share, from $1.77 per share previously and expects to return about $1.6 billion to shareholders in 2025.
However, Air Products forecast second-quarter adjusted profit between $2.75 per share and $2.85 per share, falling short of analysts’ expectations of $3.05 per share, according to data compiled by LSEG.
The company marginally beat analysts’ estimates for first quarter adjusted profit at $2.85 per share.
(Reporting by Vallari Srivastava in Bengaluru; Editing by Tasim Zahid)
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