Apr. 22--Air Products & Chemicals Inc. of Allentown today posted a 36-percent drop in its second-quarter profit, which it blamed on the worldwide decline in manufacturing.

Air Products supplies industrial gases that manufacturers use in production.

Like many other companies in the Philadelphia area and nationally, the company also reduced its earnings forecast for the fiscal year.

"The unprecedented deterioration in global manufacturing continued into our second quarter, as producers extended their holiday shutdowns," chief executive officer John McGlade said.

The company's revenue for the quarter fell 23 percent, which it attributed to weak sales volumes, unfavorable currency exchange and lower natural gas and raw material pass-throughs from customers. Air Products bills customers for its commodity costs, which have dropped sharply in the last year.

The company had net income for the quarter ended March 31 of $205.6 million, or 97 cents a share, compared with a profit of $314.3 million, or $1.43 a share, in the year-before quarter.

Earnings from continuing operations totaled $189.3 million, or 89 cents per share. That beat analysts' forecasts by seven cents a share, but it was less than the $1.18 a share recorded a year ago.

The company cut its forecast of operating earnings to between $3.85 and $4.05 for the full fiscal year. Previously, it projected $4.00 to $4.30 a share.

"In this economic environment," McGlade said, "the visibility is limited, and the business climate remains weak." He also said the company is looking at possible costs reductions. Air Products in December said it would eliminate 7 percent of its workforce.

Air Products supplies gases to the semiconductor, home healthcare, coatings and other industries.

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