07.31.15
Air Products reported net income of $359 million, up 14% versus prior year, and diluted earnings per share (EPS) of $1.65, up 13% versus prior year for its fiscal third quarter ended June 30, 2015.
On a GAAP basis, net income and diluted EPS from continuing operations were $319 million and $1.47, respectively, for the quarter.
Third quarter sales of $2,470 million decreased 6% versus prior year, as underlying sales growth of 4% was offset by unfavorable currency and lower energy pass-through. Volumes increased 3%, primarily in Industrial Gases–Asia, Materials Technologies and the LNG business, and pricing was up 1%.
Operating income of $482 million increased 17% versus prior year, and operating margin of 19.5% improved 380 basis points, driven by cost performance, higher pricing and higher volumes. Adjusted EBITDA of $758 million increased 9% over prior year, and EBITDA margin of 30.7% improved 430 basis points, reflecting strong operating leverage.
“The Air Products team delivered another quarter of great results, with particular strength in our regional Industrial Gases segments, while Materials Technologies continued to improve,” Seifi Ghasemi, chairman, president and CEO, said. “We again showed strong improvement in safety, and despite significant currency headwinds and stagnant economic conditions around the globe, our earnings per share were up by 13%, EBITDA margins increased to more than 30%, and this quarter’s operating margin is the highest in more than 25 years. This significant improvement is a direct result of our people executing our five-point strategy. As a result, we have again increased our full year guidance to $6.50 - $6.60, which at midpoint is up 13% over last year.”
On a GAAP basis, net income and diluted EPS from continuing operations were $319 million and $1.47, respectively, for the quarter.
Third quarter sales of $2,470 million decreased 6% versus prior year, as underlying sales growth of 4% was offset by unfavorable currency and lower energy pass-through. Volumes increased 3%, primarily in Industrial Gases–Asia, Materials Technologies and the LNG business, and pricing was up 1%.
Operating income of $482 million increased 17% versus prior year, and operating margin of 19.5% improved 380 basis points, driven by cost performance, higher pricing and higher volumes. Adjusted EBITDA of $758 million increased 9% over prior year, and EBITDA margin of 30.7% improved 430 basis points, reflecting strong operating leverage.
“The Air Products team delivered another quarter of great results, with particular strength in our regional Industrial Gases segments, while Materials Technologies continued to improve,” Seifi Ghasemi, chairman, president and CEO, said. “We again showed strong improvement in safety, and despite significant currency headwinds and stagnant economic conditions around the globe, our earnings per share were up by 13%, EBITDA margins increased to more than 30%, and this quarter’s operating margin is the highest in more than 25 years. This significant improvement is a direct result of our people executing our five-point strategy. As a result, we have again increased our full year guidance to $6.50 - $6.60, which at midpoint is up 13% over last year.”