Air Products to book charge, exit energy-from-waste business
Air Products will book a pre-tax charge ranging from $900 million to $1 billion in its fiscal second quarter, as the industrial gas supplier leaves its energy-from-waste business.
The Allentown, Pennsylvania, company said Monday the charge stems mainly from writing down assets from the business. Air Products also expects a modest future tax benefit from the write-off.
Company officials said in a statement they pushed to make the business work, but testing "indicated that additional design and operational challenges would require significant time and cost to rectify."
The company expects to discuss the move's financial impact when it announces fiscal second quarter earnings on April 28.
Air Products & Chemicals Inc. provides atmospheric and process gases and equipment to food and beverage businesses as well as petrochemical and electronics customers.