Air Products Posts Higher Profit on Stronger Demand, Pricing

Air Products and Chemicals Inc. has reported $3.56 in adjusted earnings per share (EPS) from continuing operations for its fiscal fourth quarter, up 13 percent compared to the same period a year ago as volumes and prices rose.

The figure beat the Zacks Consensus Estimate, an average of projections from brokerage analysts, of $3.44.

EBITDA adjusted for non-recurring or extraordinary items came at $1.4 billion, up 12 percent year-on-year. Net profit grew 181 percent to $2 billion, benefitting from Air Products’ sale of its liquefied natural gas (LNG) process technology and equipment business, the Allentown, Pennsylvania-based company said in a statement.

Honeywell International Inc. took over the LNG assets for $1.81 billion. Air Products made the sale to focus on its core industrial gases and related equipment business.

Air Products’ sales in the quarter ended September generated $3.2 billion, flat against the corresponding three-month period the prior year as lower energy cost pass-through offset higher volumes and prices.

Sales in the Americas fell three percent year-over-year to $1.3 billion “as five percent lower energy cost pass-through and one percent unfavorable currency were partially offset by three percent higher pricing”.

“Volume was flat as higher on-site was offset by lower merchant demand”, Air Products said of the figure for the Americas.

In Asia, sales increased seven percent to $861 million “on seven percent higher volumes and one percent higher energy cost pass-through, partially offset by one percent lower pricing”.

European sales climbed three percent to $731 million “as two percent higher pricing and two percent favorable currency were partially offset by one percent lower energy cost pass-through”.

“[European] Volume was flat as new on-site assets were offset by lower merchant demand”, Air Products said.

“Corporate and other sales of $257 million decreased 11 percent compared to the prior year, primarily due to lower equipment sales and higher cost estimates related to sale of equipment activities”, it said.

“Fourth quarter fiscal 2024 items include a gain of $5.38 per share resulting from the sale of the LNG business, partially offset by non-operating costs of $0.09 per share and $0.03 per share for non-service pension costs and a loss on de-designated cash flow hedges, respectively”, Air Products said. “Items for the prior year quarter included a non-operating cost of $0.08 per share for non-service pension costs”.

Air Products expects to pay about $1.6 billion in dividends for fiscal year 2024.

It expects fiscal 2025 adjusted EPS to land between $12.7 and $13.

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