Air Products: In the Pipeline - 'ZIFFPAGE TITLEAir Products Base Case '

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Air Products Base Case

Headquarters: 7201 Hamilton Blvd., Allentown, PA 18195
Phone: (610) 481-4911
Business: Supplier of industrial gases, chemicals and related equipment.
Chief Executive: John Jones
Financials in 2004: $7.4 billion in sales; $604 million in profits.
Challenge: Increase return on company's investment in plants and equipment by better aligning customer demand with production capabilities.
BASELINE GOALS:

• Increase the operating return on net assets to 13% by 2007, from 9.5% in 2004.
• Achieve an additional $150 million in operating income by 2007, a 17% increase over 2004.
• Increase productivity and add 15 to 20 cents per share in earnings in 2005, an increase of 7% from 2004.
• Focus 75% of R&D spending, or about $95 million, on key growth areas: hydrogen production, and specialty materials and gases for the electronics industry, up from 66% in 2003.

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