Air Products & Chemicals, Inc. Quarterly Report for Q2 Ended Mar 31, 2019

Summary

Air Products & Chemicals, Inc. (APD) reported solid financial results for the quarter and six months ended March 31, 2019. Sales saw a modest increase driven by higher underlying volumes and pricing, partially offset by currency headwinds and a contract modification. Operating income and margins showed significant improvement, reflecting strong operational performance across key segments, particularly in Asia. The company also demonstrated continued financial strength through a 5% increase in its quarterly dividend, marking the 37th consecutive year of dividend growth. Key operational drivers included growth from new project onstreams, notably the Lu'An project in Asia, and positive base business growth. The company also made strategic acquisitions, including the purchase of ACP Europe SA, to expand its European footprint. While facing some challenges like unfavorable currency movements and a customer facility shutdown impacting a specific charge, APD's overall performance indicates resilience and a positive outlook.

Key Highlights

• 1Sales increased by 1% to $2,187.7 million for the three months ended March 31, 2019.
• 2Operating income increased by 13% to $516.5 million for the three months ended March 31, 2019, with operating margin improving by 250 basis points.
• 3Diluted EPS increased by 1% to $1.90 for the three months ended March 31, 2019.
• 4The company increased its quarterly dividend by 5% to $1.16 per share, demonstrating consistent shareholder returns.
• 5Acquisition of ACP Europe SA for $106.3 million in the second quarter of fiscal year 2019 to enhance European presence.
• 6Six-month sales increased by 1% to $4,411.7 million, while operating income saw a 6% increase to $971.5 million.
• 7Strong growth in the Industrial Gases – Asia segment, with sales up 12% and operating income up 34% for the quarter.

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