Stock to Track: Air Products and Chemicals, Inc. (NYSE: APD)

On Friday, Shares of Air Products and Chemicals, Inc. (NYSE: APD) showed the bearish trend with a lower momentum of -0.66% and ended its trading session at $159.77. The company traded total volume of 1,560,262 shares as contrast to its average volume of 1.12M shares. The company has a market value of $35.19B and about 220.27M shares outstanding. During the 52-week trading session, the minimum price at which share price traded was registered at $133.63 and reached the max level of $175.17.

Air Products (APD) recently stated GAAP net income from continuing operations of $156.0M and GAAP diluted earnings per share (EPS) from continuing operations of $.70, down 38 and 39 percent, respectively from the prior year, for its fiscal first quarter ended December 31, 2017. These results included a net $239.0M, or $1.09 per share, charge related to the U.S. Tax Cuts and Jobs Act (“Tax Act”).

For the quarter, on a non-GAAP basis, adjusted net income from continuing operations of $395.0M increased 23 percent and diluted adjusted EPS from continuing operations of $1.79 increased 22 percent over prior year. Apart From a $.06 benefit from the new Tax Act, EPS increased 18 percent.

First quarter sales of $2.20B increased 18 percent from the prior year on 13 percent higher volumes, two percent higher pricing and three percent favorable currency. Volumes were higher in all three Industrial Gas regions, driven by new plants, a contract termination resulting in a plant sale in China, and base business growth.

For the quarter, adjusted EBITDA of $735.0M increased 12 percent over the prior year, driven by the higher volumes and Asia pricing. Adjusted EBITDA margin of 33.2 percent reduced 160 basis points from the prior year, mainly driven by the China contract termination/plant sale and higher energy pass-through.

First Quarter Results by Business Segment:

  • Industrial Gases – Americas sales of $910.0M increased five percent over prior year, driven by higher volumes, mainly strong hydrogen demand. Adjusted EBITDA of $354.0M increased one percent over the prior year, with higher volumes more than offsetting costs from higher planned maintenance outages. Adjusted EBITDA margin of 38.9 percent reduced 160 basis points from the prior year.
  • Industrial Gases – EMEA sales of $516.0M increased 29 percent over prior year, driven by 17 percent higher volumes, as well as nine percent favorable currency and three percent favorable energy pass through. The higher volumes were mainly from a new hydrogen plant in India; merchant volumes were also positive. Adjusted EBITDA of $167.0M increased 18 percent over the prior year, mainly driven by the volume increase and the positive currency impact. Adjusted EBITDA margin of 32.3 percent reduced 320 basis points from the prior year; apart from the impact of higher energy pass through and high natural gas prices in India, margins were roughly flat.
  • Industrial Gases – Asia sales of $644.0M increased 47 percent over prior year, mainly because of the contract termination/plant sale in China; apart from this, volumes were up eight percent from both new plants and strong base merchant business. Pricing increased seven percent over prior year, driven by China merchant pricing. Adjusted EBITDA of $247.0M increased 38 percent from the contract termination and plant sale, strong volumes, higher pricing and favorable currency. Apart From the contract termination/plant sale, adjusted EBITDA margins increased 240 basis points.

The Company offered net profit margin of 33.50% while its gross profit margin was 29.50%. ROE was recorded as 29.30% while beta factor was 1.25. The stock, as of recent close, has shown the weekly downbeat performance of -2.74% which was maintained at -2.63% in this year.

Leon Constant


I am Leon Constant and I focus on breaking news stories and ensuring we (“The Stock Gem”) offer timely reporting on some of the most recent stories released through market wires about “Basic Material Stocks”. I have formerly spent over 3 years as a trader in U.S. Stock Market and is now semi-stepped down. I work on a full time basis for specializing in quicker moving active shares with a short term view on investment opportunities and trends.

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