Early Access

10-QPeriod: Q1 FY2021

Air Products & Chemicals, Inc. Quarterly Report for Q1 Ended Dec 31, 2020

Filed February 4, 2021For Securities:APD

Summary

Air Products & Chemicals, Inc. (APD) reported results for the first quarter of fiscal year 2021, ending December 30, 2020. The company demonstrated resilience despite the ongoing COVID-19 pandemic, which management estimates had a negative impact of approximately $0.10-$0.15 per share. Sales increased by 5% year-over-year to $2,375.2 million, driven by favorable currency movements, pricing actions, and higher energy cost pass-throughs. However, operating income saw a slight decline of 4% to $539.1 million due to lower volumes and increased operating costs, partially offset by pricing improvements. Net income remained flat year-over-year at $486.7 million, with diluted EPS slightly decreasing by 1% to $2.12. The company highlighted strong performance in its Industrial Gases – EMEA segment with a 13% sales increase. Despite operational challenges, APD maintained its commitment to shareholders, increasing its quarterly dividend by 12% and demonstrating robust cash flow generation from operations, which increased by 16% to $774.7 million. The company continues to manage its capital effectively and maintain a strong balance sheet.

Financial Highlights

57 data points
Beta

Revenue

$2.38B

0.3% Gross Margin

Net Income

$482.00M

0.2% Net Margin

EPS (Diluted)

$2.17

Total Assets

$26.09B

Cash & Equivalents

$5.79B

Free Cash Flow

$110.50M

Financial Statements
Beta
Revenue$2.38B
Cost of Revenue$1.63B
Gross Profit$742.80M
R&D Expenses$23.50M
SG&A Expenses$202.70M
Operating Income$539.10M
Interest Expense$36.70M
Net Income$482.00M
EPS (Basic)$2.18
EPS (Diluted)$2.17
Shares Outstanding (Basic)221.50M
Shares Outstanding (Diluted)222.60M

Key Highlights

  • 1Sales grew 5% to $2,375.2 million, driven by currency, pricing, and energy cost pass-through, though volumes slightly declined.
  • 2Operating income decreased 4% to $539.1 million due to lower volumes and higher costs, partially offset by pricing actions and favorable currency.
  • 3Net income was flat at $486.7 million, and Diluted EPS slightly decreased by 1% to $2.12.
  • 4The company estimates a COVID-19 impact of approximately $0.10-$0.15 per share on its Q1 FY21 diluted EPS.
  • 5Cash provided by operating activities increased significantly by 16% to $774.7 million.
  • 6The quarterly dividend was increased by 12% to $1.50 per share, marking the 39th consecutive annual increase.
  • 7Industrial Gases – EMEA segment showed strong performance with a 13% increase in sales, driven by currency, volume, and pricing.

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