May 10, 2004 Lehigh Valley, Pa.
As a result of higher costs required to support its comprehensive product portfolio and to continue to meet customers' needs, Air Products (NYSE:APD) has announced a general market price increase on select Electronic Specialty Materials in North America. In conjunction, the company also will modify certain discounts on container rental charges. These increases will be effective 1 June 2004, which marks Air Products' first general market increase on Electronic Specialty Materials since 2000.
In anticipation of its customers' growing demands and to adhere to its broad support philosophy to the semiconductor industry, Air Products has continued to reinvest in its worldwide Electronic Specialty Materials business, even during the semiconductor industry downturn. This includes ongoing investment in manufacturing facilities and the company's global distribution infrastructure, a significant component of which is dedicated to an extensive, specialized packaging fleet required to support a safe and robust supply chain.
"At Air Products, supporting our growing customer base and their specialty material requirements is our highest priority. We have continued to reinvest in our business while avoiding a general market increase on our portfolio of Electronic Specialty Materials for four years, a notable period of time that included the worst industry downturn in history," said Bruce Hargus, vice president and general manager, Sales and Operations. "However, as unrecovered but necessary investments continue to grow, we can no longer absorb these costs alone."
As these and other costs continue to escalate, the company will modify container discounts on certain electronics specialty products and implement recovery efforts needed to continue supporting the many resource-intensive, specialized requirements that customers demand.
Air Products (NYSE:APD) serves customers in technology, energy, healthcare and industrial markets worldwide with a unique portfolio of products, services and solutions, providing atmospheric gases, process and specialty gases, performance materials and chemical intermediates. Founded in 1940, Air Products has built leading positions in key growth markets such as semiconductor materials, refinery hydrogen, home healthcare services, natural gas liquefaction, and advanced coatings and adhesives. The company is recognized for its innovative culture, operational excellence and commitment to safety and the environment. With annual revenues of $6.3 billion and operations in over 30 countries, the company's 18,500 employees build lasting relationships with their customers and communities based on understanding, integrity and passion. For more information, visit www.airproducts.com.
NOTE: This release may contain forward-looking statements. Actual results could vary materially, due to changes in current expectations.