Summary
Air Products & Chemicals, Inc. (APD) reported its financial results for the quarter ended December 31, 2009. The company demonstrated a significant rebound in profitability compared to the prior year, driven by a substantial increase in operating income. This improvement was largely attributed to the absence of a significant global cost reduction charge that impacted the prior year's results, coupled with underlying business growth and favorable currency movements. Key financial metrics show a notable recovery. Sales saw a slight year-over-year decline, primarily due to lower energy and raw material cost pass-throughs, but underlying volume increases in key segments like Tonnage Gases and Electronics & Performance Materials provided a positive offset. The company's strategic focus on cost improvements and operational efficiencies is evident in the operating income figures. Investors should note the company's continued investment in capital expenditures, though cash flow from operations experienced a decrease due to changes in working capital, particularly higher pension contributions.
Financial Highlights
52 data points| Revenue | $2.17B |
| Cost of Revenue | $1.57B |
| Gross Profit | $604.90M |
| R&D Expenses | $27.20M |
| SG&A Expenses | $244.10M |
| Operating Income | $345.00M |
| Interest Expense | $31.60M |
| Net Income | $251.80M |
| EPS (Basic) | $1.19 |
| EPS (Diluted) | $1.16 |
| Shares Outstanding (Basic) | 211.70M |
| Shares Outstanding (Diluted) | 217.00M |
Key Highlights
- 1Net income attributable to Air Products surged to $251.8 million, a substantial increase from $68.6 million in the prior year quarter.
- 2Diluted earnings per share from continuing operations rose significantly to $1.16, up from $0.42 in the same period last year.
- 3Operating income saw a remarkable increase of 202% to $345.0 million, primarily due to the lapping of a $174.2 million global cost reduction charge in the prior year.
- 4Sales decreased by 1% to $2,173.5 million, impacted by lower energy and raw material cost pass-throughs, but underlying sales grew by 2% driven by volume increases.
- 5The company repurchased $649.2 million worth of common stock under its authorized program, indicating a commitment to returning value to shareholders.
- 6Cash provided by operating activities decreased to $193.9 million from $199.2 million, largely due to unfavorable changes in working capital, particularly higher pension contributions.
- 7Capital expenditures remained robust, with additions to plant and equipment totaling $288.8 million.