LEHIGH VALLEY, Pa. (March 12, 2003) — Speaking before a group of analysts earlier today in New York, Air Products (NYSE:APD) executives talked about significant trends that are contributing to the success of the company's more than $550 million Healthcare business.
Citing healthcare economics that are sending patients home from the hospital sooner and an increasing demand for treatments that can be administered in the home, Robert Gadomski, executive vice president, Gases and Equipment Group, said that Air Products' total Healthcare business is growing at about 10 percent annually-and said it is a business in which Air Products will continue to play a leadership role.
"Today, Healthcare is one of four global growth platforms for our gases, chemicals, equipment and services-along with Electronics, Refinery Hydrogen and Energy Solutions, and Performance Materials. In total, these areas represent over half of our sales and about two-thirds of our development spending," he said.
Joining Mr. Gadomski at the CANY Conference were Karel Schröder, Air Products' vice president and general manager, Global Healthcare, and Robert Cucuel, CEO of American Homecare Supply (AHS), a wholly-owned subsidiary of Air Products (acquired in October 2002), with leading operations throughout the northeastern U.S. Both noted that while the supply of oxygen and medical gases and services to the institutional market (hospitals and clinics) is an important piece of the company's overall Healthcare business (approximately 40 percent of revenues today), the fastest-growing sector is homecare services.
"We are playing in a $15 billion segment of an overall $50 billion U.S. homecare market that involves the supply of respiratory therapies, infusion services and home medical equipment," said Mr. Cucuel. "Air Products entered the U.S. market with the acquisition of AHS last year, and we have made three small additional acquisitions since then. We expect to be able to continue growing at about 12 percent through these kinds of acquisitions and by innovating new service offerings for our patients."
Mr. Schröder noted that the foundation for this success is based on Air Products' 50-year history serving the European homecare market. "Today we hold the leading homecare services position in Spain, Portugal and Mexico, and a number-two overall position in Europe, serving approximately 300,000 patients in 14 countries," he said. "We can share our experiences and knowledge around the world, creating efficiencies and synergies. And we can leverage our scale, know-how, equipment, systems and purchasing."
Mr. Schröder also pointed out that homecare is a service business with a stable growth profile, and that it is independent from economic cycles that affect most other businesses. "In the end, the reliability, safety record and compliance expertise we bring to this business will help move us closer to our vision of being the best company to invest in, buy from and work for," he said.
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. The company is the largest global supplier of electronic materials, hydrogen, helium and select performance chemicals. Founded in 1940, Air Products is recognized for its innovative culture, operational excellence and commitment to safety and the environment. With annual revenues of $5.4 billion and operations in over 30 countries, the company's 17,200 employees build lasting relationships with their customers and communities based on understanding, integrity and passion. For more information, visit www.airproducts.com. |
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