Summary
Air Products & Chemicals, Inc. (APD) reported strong financial performance for the fiscal year ended September 29, 2018. The company saw a significant increase in sales, driven by higher volumes and new large industrial gas projects coming online. This growth was complemented by strategic advancements, including the completion of a syngas supply joint venture in China and new gasification projects announced in China and Saudi Arabia. The company also demonstrated a commitment to shareholder returns by increasing its quarterly dividend by 16%, marking the 36th consecutive year of dividend increases. Operationally, APD highlighted improvements in operating income and adjusted EBITDA, alongside a robust growth in diluted earnings per share. The company's diversified industrial gases business, with operations across the Americas, EMEA, and Asia, remains the core driver of its performance. While the company faces various risks including economic conditions, international operations, and regulatory changes, its strong execution and strategic investments position it for continued growth. The outlook for fiscal year 2019 remains positive, with continued focus on base business improvements and the integration of new large-scale projects.
Financial Highlights
58 data points| Revenue | $8.93B |
| Cost of Revenue | $6.19B |
| Gross Profit | $2.74B |
| R&D Expenses | $64.50M |
| SG&A Expenses | $760.80M |
| Operating Income | $1.97B |
| Interest Expense | $130.50M |
| Net Income | $1.50B |
| EPS (Basic) | $6.83 |
| EPS (Diluted) | $6.78 |
| Shares Outstanding (Basic) | 219.30M |
| Shares Outstanding (Diluted) | 220.80M |
Key Highlights
- 1Sales increased by 9% to $8.93 billion, driven by underlying volume growth and favorable currency impacts.
- 2Operating income surged by 37% to $1.97 billion, with an operating margin of 22.0%.
- 3Diluted EPS from continuing operations increased by 28% to $6.59.
- 4Adjusted EBITDA grew by 11% to $3.12 billion, with an improved margin of 34.9%.
- 5The company increased its quarterly dividend by 16% to $1.10 per share, continuing its track record of 36 consecutive annual dividend increases.
- 6Significant strategic progress was made with the completion of a syngas supply joint venture in China and announcements of new large gasification projects.
- 7International operations continue to be a substantial contributor, with over 60% of sales derived from outside the United States.