Summary
Air Products & Chemicals, Inc. (APD) reported solid financial results for the quarter ended March 31, 2013. Sales increased by 6% year-over-year, driven by a combination of acquisitions and improved performance in several segments, particularly Merchant Gases, which saw a 14% sales increase partly due to the acquisition of Indura S.A. Operating income also showed a significant improvement of 35% on a GAAP basis, largely due to the absence of a significant restructuring charge recorded in the prior year. On a non-GAAP basis, operating income still grew by 4%, demonstrating underlying business strength. Key financial highlights include a 5% increase in diluted earnings per share from continuing operations to $1.37. The company continued its commitment to shareholder returns by increasing its quarterly dividend by 11%, marking the 31st consecutive year of dividend increases. While underlying sales showed a modest decrease of 2% due to volume declines in certain segments, the overall revenue growth, coupled with effective cost management and strategic acquisitions, indicates a positive operational trajectory for Air Products.
Financial Highlights
55 data points| Revenue | $2.48B |
| Cost of Revenue | $1.81B |
| Gross Profit | $670.60M |
| R&D Expenses | $32.30M |
| SG&A Expenses | $266.60M |
| Operating Income | $389.70M |
| Interest Expense | $35.20M |
| Net Income | $290.40M |
| EPS (Basic) | $1.39 |
| EPS (Diluted) | $1.38 |
| Shares Outstanding (Basic) | 208.40M |
| Shares Outstanding (Diluted) | 211.00M |
Key Highlights
- 1Sales increased by 6% to $2,484.2 million, driven by acquisitions and strong performance in the Merchant Gases segment.
- 2Operating income rose by 35% to $389.7 million (GAAP basis), benefiting from the absence of prior-year restructuring charges.
- 3Diluted earnings per share from continuing operations increased by 5% to $1.37.
- 4The company increased its quarterly dividend by 11% to $0.71 per share, highlighting a consistent commitment to shareholder returns.
- 5Acquisitions, including Indura S.A. and DA NanoMaterials, contributed positively to sales growth.
- 6Underlying sales experienced a 2% decrease, primarily due to lower volumes in Merchant Gases and Electronics and Performance Materials, indicating some segment-specific headwinds.
- 7The company continued its share repurchase program, with $485.3 million remaining authorization as of March 31, 2013.