(Reuters) -Air Products cut its annual profit forecast on Thursday and the industrial gas maker reported lower-than-expected quarterly earnings, hurt by lower sales volumes and higher costs, sending the company's shares down 4% premarket.

U.S. manufacturing activity contracted in March after growing for two months straight as President Donald Trump's wave of tariffs eroded business and consumer confidence, impacting demand for Air Products' gases and related services.

The company said volumes were squeezed due to weak global helium demand and the divestiture of its LNG process technology and equipment business.

Air Products, which makes a range of industrial gases including hydrogen, helium and nitrogen, now expects annual adjusted earnings to be between $11.85 and $12.15 per share. Prior expectation was a range of $12.70 to $13.00 per share.

It also forecast third-quarter adjusted profit between $2.90 and $3.00 per share, falling short of the average analyst estimate of $3.28, according to data compiled by LSEG.

The dour results and forecast come after Air Products lost the proxy fight against activist investor Mantle Ridge, which had been pushing the company to replace its 80-year-old CEO.

On an adjusted basis, the company earned $2.69 per share in the second quarter, below analysts' estimates of $2.83.

Air Products also recorded a charge of $2.3 billion in the reported quarter due to costs related to its exit from three projects in the U.S.