Summary
Air Products & Chemicals, Inc. (APD) reported its financial results for the third quarter and the first nine months of fiscal year 2015, ending June 29, 2015. For the quarter, sales decreased by 6% to $2,470.2 million compared to the prior year, impacted by unfavorable currency movements and lower energy cost pass-throughs, though underlying sales showed a 4% increase driven by volume and pricing. Operating income saw a modest 2% increase to $422.5 million, with a notable improvement in operating margin. Net income attributable to Air Products rose slightly to $318.8 million, resulting in diluted EPS of $1.47. For the nine-month period, sales declined by 4% to $7,445.5 million. Despite this, operating income grew by 4% to $1,226.9 million, and net income attributable to Air Products increased by 6% to $933.4 million, with diluted EPS reaching $4.30. The company highlighted strong performance in its Industrial Gases – Asia and Materials Technologies segments, contributing to underlying sales growth. APD also continued its commitment to shareholder returns by increasing its quarterly dividend for the 33rd consecutive year.
Financial Highlights
53 data points| Revenue | $2.47B |
| Cost of Revenue | $1.72B |
| Gross Profit | $755.00M |
| R&D Expenses | $33.40M |
| SG&A Expenses | $241.50M |
| Operating Income | $424.80M |
| Interest Expense | $28.20M |
| Net Income | $318.80M |
| EPS (Basic) | $1.48 |
| EPS (Diluted) | $1.47 |
| Shares Outstanding (Basic) | 215.20M |
| Shares Outstanding (Diluted) | 217.40M |
Key Highlights
- 1For Q3 2015, sales were $2,470.2 million, a 6% decrease year-over-year, primarily due to unfavorable currency impacts and lower energy cost pass-throughs, although underlying sales grew 4%.
- 2Operating income for Q3 2015 increased by 2% to $422.5 million, with a 140 basis point improvement in operating margin to 17.1%.
- 3Net income attributable to Air Products for Q3 2015 was $318.8 million, up slightly from $314.0 million in the prior year, leading to diluted EPS of $1.47.
- 4For the nine months ended June 30, 2015, sales were $7,445.5 million, a 4% decrease year-over-year, with underlying sales up 4%.
- 5Nine-month operating income grew 4% to $1,226.9 million, and net income attributable to Air Products rose 6% to $933.4 million, with diluted EPS of $4.30.
- 6The company announced a 5% increase in its quarterly dividend to $0.81 per share, marking the 33rd consecutive year of dividend increases.
- 7Restructuring and cost reduction actions resulted in charges of $58.2 million in Q3 2015 and $146.0 million for the nine-month period.