Air Products Issues Statement Regarding Pershing Square Investment

      Air Products Issues Statement Regarding Pershing Square Investment

PR Newswire

LEHIGH VALLEY, Pa., July 31, 2013

LEHIGH VALLEY, Pa., July 31, 2013 /PRNewswire/ --Air Products (NYSE: APD)
today issued the following statement in response to Pershing Square Capital
Management's confirmation of its investment in the Company:

Air Products maintains an active dialogue with and carefully considers the
views of its shareholders. The Company has not been contacted by Pershing
Square Capital Management but welcomes new investors and looks forward to
engaging with Pershing Square to understand its views. In keeping with its
long-standing practice, Air Products will thoroughly review constructive input
from shareholders as part of its commitment to increasing shareholder value.

Air Products has taken significant, proactive steps in recent years to deliver
earnings and operating cash flow growth in a very challenging economic
environment. The Company noted that its 2013 total shareholder return of
21.6% through July 24 (the last trading day prior to announcing the adoption
of a stockholder rights plan) is more than double that of its industrial gas
peer group, and that on a one- and three-year basis total returns have
exceeded that of its closest peer (Praxair).[1]

As stated on earnings calls in April and July, Air Products continues to
actively assess additional steps it can take to further improve operations and
increase value to shareholders. That assessment is ongoing and has already
resulted in additional cost-reduction initiatives in those regions and
businesses facing the greatest challenges from slower market growth.

Recent actions taken by Air Products include:

  oStreamlining its portfolio, including selling its European home care
    business, exiting the polyurethane intermediates (PUI) business and
    restructuring its market position in photovoltaics
  oExpanding in key high-growth markets through strategic initiatives such as
    acquiring Indura, South America's largest independent industrial gas
  oReducing its cost base by over $150 million annually, with recently
    announced plans for additional cost reductions of approximately $60
    million per year beginning in the fiscal 2013 fourth quarter
  oMaintaining a regular program for returning capital to shareholders,
    including increasing its dividend for the 31^st consecutive year and
    repurchasing $460 million of its shares in fiscal 2013 year to date
  oBuilding a record $3 billion project backlog, which is over 80% on-site or
    pipeline business with long-term take-or-pay contract terms; these
    projects are expected to be immediately accretive to earnings and cash
    flow as they come on line over the next several years

Air Products remains focused on disciplined capital allocation, cost-effective
project execution, driving greater productivity, and delivering on its cash
priorities. The Company believes it has significant operating leverage in its
existing assets, making it well positioned for accelerated earnings growth in
an economic recovery.

About Air Products

Air Products (NYSE:APD) provides atmospheric, process and specialty gases;
performance materials; equipment; and technology. For over 70 years, the
company has enabled customers to become more productive, energy efficient and
sustainable. More than 20,000 employees in over 50 countries supply innovative
solutions to the energy, environment and emerging markets. These include
semiconductor materials, refinery hydrogen, coal gasification, natural gas
liquefaction, and advanced coatings and adhesives. In fiscal 2012, Air
Products had sales approaching $10 billion. For more information, visit

Note: This release contains "forward-looking statements" within the safe
harbor provisions of the Private Securities Litigation Reform Act of 1995,
including statements about anticipated future business performance. These
forward-looking statements are based on management's reasonable expectations
and assumptions as of the date of this release. Actual performance and
financial results may differ materially from projections and estimates
expressed in the forward-looking statements because of many factors not
anticipated by management, and outside the control of the Company including,
without limitation, further deterioration in global or regional economic and
business conditions; weakening demand for the Company's products and services;
future financial and operating performance of major customers; unanticipated
contract terminations or customer cancellations or postponement of projects
and sales; the impact of competitive products and pricing; interruption in
ordinary sources of supply of raw materials; the success of productivity
programs; significant fluctuations in interest rates and foreign currencies
from that currently anticipated; the impact of changes in environmental, tax
or other legislation and regulations in jurisdictions in which the Company and
its affiliates operate; and other risk factors described in the Company's Form
10K for its fiscal year ended September 30, 2012. 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.

[1] Industrial gas peer group includes Praxair, Linde, Air Liquide and Airgas.

SOURCE Air Products

Contact: Media Inquiries: George Noon, tel: (610) 481-1990; e-mail:; George Sard/David Reno, Sard Verbinnen & Co, tel: (212)
687-8080; Investor Inquiries: Simon Moore, tel: (610) 481-7461; e-mail:
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