What was the impact of the Airgas transaction on APD's financial results?

APD withdrew its tender offer for Airgas, Inc. during the quarter. This resulted in a net loss on the Airgas transaction, which included amortization of financing fees and other acquisition-related costs. For Q2 2011, this amounted to a $5.0 million net loss ($0.02 per share). While impacting GAAP results, the company provided non-GAAP figures that exclude this item to show underlying operational performance.

Which business segments performed the strongest during the quarter?

The Electronics and Performance Materials segment was a standout performer, with sales increasing by 28% and operating income surging by 61% in the second quarter of 2011. Merchant Gases and Tonnage Gases also showed solid growth in sales and operating income, driven by volume increases in key markets.

How is APD returning value to shareholders?

Air Products & Chemicals, Inc. continues to prioritize shareholder returns. In the second quarter of 2011, the company increased its quarterly dividend to $0.58 per share, marking its 29th consecutive annual increase. Additionally, APD actively repurchased shares, acquiring approximately 3.8 million shares in the first six months of the fiscal year under its share repurchase program.

What is the outlook for APD's liquidity and capital resources?

The company maintained a strong financial position with consistent access to commercial paper markets and cash flow from operations expected to meet liquidity needs. Net cash provided by operating activities increased significantly, driven by higher net income and favorable working capital changes. APD also managed its capital expenditures, with additions to plant and equipment increasing, alongside significant capital lease expenditures.

APD 10-Q Quarterly Report Q2 FY2011 — Revenue, Net Income, EPS

Summary

Air Products & Chemicals, Inc. (APD) reported strong financial results for the second quarter and first six months of fiscal year 2011, demonstrating significant year-over-year growth. Sales increased by 11% in the second quarter, driven by robust volume growth across key segments including Electronics and Performance Materials, Merchant Gases, and Tonnage Gases. This top-line growth translated into substantial improvements in profitability, with operating income up 23% and diluted earnings per share (EPS) rising 20% to $1.39 on a GAAP basis. The company also highlighted its continued commitment to shareholder returns through a significant share repurchase program and a 29th consecutive annual dividend increase. The company successfully navigated the impact of withdrawing its tender offer for Airgas, Inc., recognizing a net loss on the transaction but demonstrating resilience in its core operations. Management's focus on operational efficiencies, strategic volume growth, and prudent financial management positions APD favorably. Investors should note the strong performance in the Electronics and Performance Materials segment as a key growth driver, alongside consistent contributions from Merchant and Tonnage Gases.

Financial Highlights

54 data points

Beta

Revenue

$2.40B

0.3% Gross Margin

Net Income

$304.30M

0.1% Net Margin

EPS (Diluted)

$1.39

Total Assets

$13.82B

Cash & Equivalents

$270.00M

Free Cash Flow

-$15.00M

Financial Statements

Beta

Revenue	$2.40B
Cost of Revenue	$1.75B
Gross Profit	$654.80M
R&D Expenses	$27.90M
SG&A Expenses	$242.00M
Operating Income	$393.80M
Interest Expense	$29.40M
Net Income	$304.30M
EPS (Basic)	$1.42
EPS (Diluted)	$1.39
Shares Outstanding (Basic)	213.80M
Shares Outstanding (Diluted)	218.80M

Key Highlights

1Sales increased by 11% to $2,501.3 million in Q2 2011 compared to Q2 2010, driven primarily by an 11% volume increase across key segments.
2Operating income rose 23% to $419.5 million, and operating margin improved by 170 basis points to 16.8% in Q2 2011.
3Diluted earnings per share (EPS) increased by 20% to $1.39 in Q2 2011, reflecting strong operational performance.
4The company withdrew its tender offer for Airgas, Inc., incurring a net loss on the transaction but demonstrating resilience in core business growth.
5APD increased its quarterly dividend to $0.58 per share, marking the 29th consecutive year of dividend increases, underscoring its commitment to shareholder returns.
6Share repurchases continued, with 3.8 million shares bought back in the first six months of 2011 under a $1 billion program, with $299.2 million remaining authorization.
7The Electronics and Performance Materials segment showed exceptional growth, with sales up 28% and operating income up 61% in Q2 2011.

Air Products & Chemicals, Inc. Quarterly Report for Q2 Ended Mar 31, 2011

Summary

Financial Highlights

Key Highlights

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