Summary
Air Products & Chemicals, Inc. (APD) reported $10.18 billion in sales for the fiscal year ended September 29, 2013, a 6% increase driven by acquisitions and higher energy cost pass-through. While underlying sales saw a modest 1% increase, this was impacted by the company's strategic exit from its Polyurethane Intermediates (PUI) business. Operating income grew 3% to $1.32 billion, and income from continuing operations attributable to Air Products rose slightly to $1.00 billion, translating to diluted earnings per share of $4.73. The company highlighted strong performance in its Tonnage Gases segment and continued growth in its Equipment and Energy division, particularly in LNG equipment. However, the Electronics and Performance Materials segment experienced a sales decrease due to weaker demand in electronics. APD also completed several acquisitions in 2013, including EPCO Carbon Dioxide Products, Inc. and Wuxi Chem-Gas Company, Ltd., which contributed to sales growth and expanded its geographic presence. Financially, APD maintained a strong liquidity position, with capital expenditures totaling $1.75 billion on a GAAP basis, mainly for plant and equipment additions. The company also increased its quarterly dividend by 11% and continued its share repurchase program, demonstrating a commitment to returning value to shareholders. Looking ahead to 2014, APD anticipates modest global economic growth and expects improved earnings from new plant operations and higher LNG activity, though partially offset by increased maintenance expenses.
Financial Highlights
56 data points| Revenue | $10.18B |
| Cost of Revenue | $7.47B |
| Gross Profit | $2.71B |
| R&D Expenses | $133.70M |
| SG&A Expenses | $1.07B |
| Operating Income | $1.32B |
| Interest Expense | $141.80M |
| Net Income | $994.20M |
| EPS (Basic) | $4.74 |
| EPS (Diluted) | $4.68 |
| Shares Outstanding (Basic) | 209.70M |
| Shares Outstanding (Diluted) | 212.30M |
Key Highlights
- 1Total sales reached $10.18 billion, a 6% increase year-over-year, primarily due to acquisitions and energy cost pass-through.
- 2Operating income increased by 3% to $1.32 billion, with on-site/pipeline (Tonnage Gases) and Equipment & Energy segments showing positive contributions.
- 3Income from continuing operations attributable to Air Products grew slightly to $1.00 billion, resulting in diluted EPS of $4.73.
- 4The company executed a 2013 business restructuring and cost reduction plan, recording a $231.6 million charge aimed at improving cost structure and operational efficiency, with expected annual savings of $75 million.
- 5APD completed three acquisitions in 2013, including EPCO Carbon Dioxide Products, Inc., expanding its presence in the North American industrial gas market.
- 6Capital expenditures on a GAAP basis were $1.75 billion, largely for plant and equipment, with a significant portion supporting Tonnage Gases and new projects.
- 7The quarterly dividend was increased by 11% to $0.71 per share, marking the 31st consecutive year of dividend increases.