— Jeff Ward, Lehigh Valley News Briefs
Air Products posted preliminary fiscal first-quarter 2025 earnings Tuesday evening, reporting adjusted earnings per share of $2.86.
That would exceed the company’s earlier forecast of $2.75 to $2.85. Final results for the fiscal quarter ended Dec. 31 are due Feb. 6.
The statement includes this interesting note about the company’s proxy battle over board seats and leadership with activist investor Mantle Ridge. From the statement:
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Shareholder Activism Costs
During the first quarter of fiscal year 2025, we incurred costs of $29.9 ($21.9 after tax, or $0.10 per share) in connection with our response to a proxy contest led by activist shareholder, Mantle Ridge L.P. These costs include legal and other professional service fees as well as incremental proxy solicitation costs related to the 2025 Annual Meeting of Shareholders.
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So it cost 10 cents per share to fight this proxy battle, with results being known at the Jan. 23 annual meeting of shareholders.
Mantle Ridge and at least one other investor, along with firms that advise investors, support change on the board and at the company.
Air Products says it has been progressing and seeking a successor to Chief Executive Seifi Ghasemi, who is 80.
There is a lot at stake for the Lehigh Valley; Air Products’ headquarters is in Upper Macungie Township, Lehigh County. It is the biggest New York Stock Exchange-traded company based in the Lehigh Valley. The other two are Shift4 (NYSE:FOUR) and PPL (NYSE:PPL).
Both sides have engaged in a war of press releases (see here for more) but in short, Mantle Ridge owns $1.3 billion in stock (NYSE:APD) in the company and contends the shares could be worth $425, instead of the $305.34 price at 10:08 a.m. today.
Air Products faults Mantle Ridge’s approach and wants to keep running the maker of industrial gases (helium, hydrogen) as both a base business and a “first mover” in the move toward environmentally friendly hydrogen as a fuel.
The company’s market capitalization is about $68 billion.
Air Products’ preliminary fiscal first-quarter earnings under Generally Accepted Accounting Principles (GAAP) are $2.77 per share. GAAP does not allow for exclusions, while adjusted earnings exclude costs and gains companies consider to be one-time or unusual.
Most companies report adjusted earnings, which are what Wall Street is looking for when numbers come out.
— Disclosure: I own shares in Air Products as part of a buy-and-hold strategy.
Lehigh Valley News Briefs 