Summary
Air Products & Chemicals, Inc. (APD) reported a challenging fiscal year 2012, with sales down 1% to $9.6 billion and operating income down 15% to $1.28 billion (or down 1% excluding special items). This performance was impacted by a tougher-than-expected global economic environment, particularly in Europe, and a stronger U.S. dollar, which offset modest underlying volume growth and strategic acquisitions. Key strategic moves in 2012 included the sale of the Homecare business (completed in Europe) and significant acquisitions in Latin America (Indura S.A.) and Saudi Arabia (Abdullah Hashim Industrial Gases & Equipment Co. Ltd.). The company also took steps to restructure its Polyurethane Intermediates and Photovoltaic businesses to align with market conditions. Despite the economic headwinds, APD continued its commitment to shareholders by increasing its quarterly dividend for the 30th consecutive year and maintained substantial share repurchase authorization. Looking ahead to 2013, APD anticipated modest economic growth globally, with potential earnings improvement from new plant onstreams and the Indura S.A. acquisition, tempered by higher pension expenses and ongoing restructuring impacts.
Financial Highlights
56 data points| Revenue | $9.61B |
| Cost of Revenue | $7.05B |
| Gross Profit | $2.56B |
| R&D Expenses | $126.40M |
| SG&A Expenses | $946.80M |
| Operating Income | $1.28B |
| Interest Expense | $123.70M |
| Net Income | $1.17B |
| EPS (Basic) | $5.53 |
| EPS (Diluted) | $5.44 |
| Shares Outstanding (Basic) | 211.20M |
| Shares Outstanding (Diluted) | 214.70M |
Key Highlights
- 1Sales for fiscal year 2012 were $9.61 billion, a slight decrease of 1% from the prior year, impacted by currency headwinds and lower energy cost pass-through.
- 2Operating income on a GAAP basis was $1.28 billion, down 15%, but on a non-GAAP basis (excluding restructuring charges and other items), it decreased only 1% to $1.53 billion, indicating operational resilience.
- 3The company completed the sale of its European Homecare business in April 2012 and recorded a gain of $207.4 million.
- 4Significant strategic acquisitions were made in Latin America (Indura S.A.) and Saudi Arabia (Abdullah Hashim Industrial Gases & Equipment Co. Ltd.) to bolster its global presence.
- 5APD increased its quarterly dividend to $0.64 per share, marking the 30th consecutive annual dividend increase.
- 6Capital expenditures increased significantly to $2.56 billion (GAAP basis) and $2.78 billion (non-GAAP basis), driven largely by the Indura S.A. acquisition and new plant construction.
- 7The company incurred substantial business restructuring and cost reduction charges totaling $327.4 million in 2012, primarily related to its Polyurethane Intermediates, Electronics, and European Merchant businesses.