Demo
APD NYSE· Air Products & Chemicals Inc
FundamentalsNews digest Peer analysis
Login
APD NYSE· Air Products & Chemicals Inc
Earnings report Q4 2023

Air Products and Chemicals, Inc. Reports 6% Decrease in Sales in Q1 2024

Segments of revenue

  • Americas segment: Sales in the Americas segment decreased by 10% or $132.1 million in Q1 2024 compared to the same period in the previous year. This decline was primarily driven by a 15% decrease in energy cost pass-through to customers, resulting from lower natural gas prices. However, the segment saw a 3% increase in volumes and a 2% increase in pricing, partially offsetting the overall decline in sales.
  • Other segments: No specific information is provided in the report regarding the performance of other segments.

Strengths

  • Despite the overall decrease in sales, Air Products and Chemicals, Inc. managed to achieve a 2% increase in operating income, amounting to $666.9 million. This growth was primarily driven by positive pricing and higher volumes, which partially offset higher costs.
  • The company's operating margin also improved by 170 basis points to 22.2%, benefiting from positive pricing, higher volumes, and a positive impact from lower energy cost pass-through to customers.
  • Air Products and Chemicals, Inc. experienced a significant increase of 44% in equity affiliates' income, amounting to $158.4 million. This growth was primarily attributed to higher income from the JIGPC joint venture and the company's affiliate in Mexico.

Challenges

  • The company faced a 6% decrease in sales, amounting to $177.3 million, primarily due to lower energy cost pass-through to customers. This decline was partially offset by higher volumes, higher pricing, and a favorable impact from currency.
  • The Americas segment, which represents a significant portion of Air Products and Chemicals, Inc.'s business, experienced a 10% decrease in sales. This decline was primarily driven by lower energy cost pass-through to customers, resulting from lower natural gas prices.

Noteworthy

  • Air Products and Chemicals, Inc. achieved a 6% increase in net income, amounting to $621.6 million, primarily driven by higher equity affiliates' income, favorable pricing, and higher volumes. The net income margin also improved by 230 basis points to 20.7%.
  • The company's adjusted EBITDA increased by 8% to $1.17 billion, with an adjusted EBITDA margin of 39.2%, representing a 510 basis point improvement.

Summary

Air Products and Chemicals, Inc. faced a 6% decrease in sales in Q1 2024, primarily due to lower energy cost pass-through to customers. However, the company managed to achieve growth in operating income, net income, and equity affiliates' income. The Americas segment experienced a significant decline in sales, but the overall financial performance of the company was supported by positive pricing, higher volumes, and improved margins. Air Products and Chemicals, Inc. remains focused on managing costs and leveraging its equity affiliates to drive future growth.

Source documents

Form 10-Q  filed on Feb 05, 2024
118 pages scanned

Reference data

Company financials Q4 revenue 0
Analyst estimates Q4 EPS missed by 0.00%
Sign up to Fey

Get in-depth analysis on thousands of stocks for just $30/month. Cancel anytime.