Summary
Air Products & Chemicals, Inc. (APD) reported strong third quarter 2011 results, with net sales increasing by 14% to $2,577.8 million, driven by a 7% increase in underlying sales primarily from higher volumes in Tonnage Gases and Electronics and Performance Materials segments. This top-line growth translated into robust profit expansion, with GAAP operating income up 24% and diluted earnings per share from continuing operations rising 25% to $1.46. While the company also noted positive year-over-year performance for the first nine months of fiscal year 2011, including a 12% increase in sales and a 17% rise in operating income, a key event impacting comparability was the withdrawal of their tender offer for Airgas, Inc. The company provided non-GAAP measures to present a clearer view of underlying operational performance, excluding the net loss associated with the Airgas transaction. Investors should note the company's continued commitment to shareholder returns, highlighted by an increase in its quarterly dividend and ongoing share repurchase program.
Financial Highlights
55 data points| Revenue | $2.47B |
| Cost of Revenue | $1.83B |
| Gross Profit | $646.30M |
| R&D Expenses | $29.30M |
| SG&A Expenses | $234.50M |
| Operating Income | $387.70M |
| Interest Expense | $26.50M |
| Net Income | $326.50M |
| EPS (Basic) | $1.54 |
| EPS (Diluted) | $1.50 |
| Shares Outstanding (Basic) | 212.50M |
| Shares Outstanding (Diluted) | 217.30M |
Key Highlights
- 1Consolidated sales increased 14% to $2,577.8 million in Q3 2011, with underlying sales up 7% driven by volume growth in Tonnage Gases and Electronics and Performance Materials.
- 2GAAP diluted earnings per share (EPS) from continuing operations grew 25% to $1.46 in Q3 2011.
- 3Non-GAAP operating income increased 11% and non-GAAP diluted EPS increased 14% in Q3 2011, excluding the net loss from the Airgas transaction.
- 4The Electronics and Performance Materials segment showed significant strength with sales up 21% and operating income up 75% in Q3 2011.
- 5The company increased its quarterly dividend from $0.49 to $0.58 per share and has a remaining share repurchase authorization of $299.2 million.
- 6Net cash provided by operating activities increased 9% for the first nine months of fiscal year 2011, driven by higher net income and favorable working capital changes.
- 7Total debt increased to $4,497.7 million at June 30, 2011, from $4,128.3 million at September 30, 2010, while the total debt to equity ratio remained strong at 41.3%.