Summary
Air Products & Chemicals, Inc. (APD) reported flat sales for fiscal year 2019, with revenue of $8.9 billion, primarily due to a balance of positive pricing and volume growth offset by unfavorable currency impacts and a contract modification. The company demonstrated strong operational performance, with operating income increasing by 9% and net income rising by 18% year-over-year, leading to a significant improvement in margins. Adjusted EBITDA also saw a healthy increase of 11%, reflecting effective cost management and business execution. APD's strategic focus on large, complex industrial gas projects, including gasification initiatives, continues to drive growth. The company highlighted its ongoing commitment to shareholder returns through a 5% increase in its quarterly dividend, marking its 37th consecutive annual increase. Looking ahead to fiscal year 2020, Air Products anticipates further earnings growth, supported by its strong financial position and planned investments in key growth projects.
Financial Highlights
58 data points| Revenue | $8.92B |
| Cost of Revenue | $5.98B |
| Gross Profit | $2.91B |
| R&D Expenses | $72.90M |
| SG&A Expenses | $750.00M |
| Operating Income | $2.14B |
| Interest Expense | $137.00M |
| Net Income | $1.76B |
| EPS (Basic) | $7.99 |
| EPS (Diluted) | $7.94 |
| Shares Outstanding (Basic) | 220.30M |
| Shares Outstanding (Diluted) | 221.60M |
Key Highlights
- 1Sales remained flat at $8.9 billion in fiscal year 2019, with a 3% increase in pricing and a 2% increase in volumes offset by a 3% negative currency impact and a 2% impact from a contract modification.
- 2Operating income increased by 9% to $2.14 billion, and operating margin improved by 200 basis points to 24.0%.
- 3Net income rose by 18% to $1.81 billion, and net income margin improved by 310 basis points to 20.3%.
- 4Adjusted EBITDA increased by 11% to $3.47 billion, with adjusted EBITDA margin improving by 400 basis points to 38.9%.
- 5Diluted EPS increased by 20% to $7.94, and adjusted diluted EPS increased by 10% to $8.21.
- 6The company increased its quarterly dividend by 5% to $1.16 per share, marking the 37th consecutive year of dividend increases.
- 7Capital expenditures in fiscal year 2020 are projected to be approximately $4 billion to $4.5 billion, reflecting significant investments in growth projects like the Jazan gas and power project.