Delaware | 001-04534 | 23-1274455 | ||
(State or Other Jurisdiction of Incorporation) | (Commission File Number) | (IRS Employer Identification No.) |
7201 Hamilton Boulevard, Allentown, Pennsylvania | 18195-1501 | |
(Address of Principal Executive Offices) | (Zip Code) |
¨ | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) | |
¨ | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) | |
¨ | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) | |
¨ | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Emerging growth company | ¨ |
Exhibit No. | Description | |
99.1 |
Air Products and Chemicals, Inc. | ||
(Registrant) | ||
Date: 25 January 2019 | By: | /s/ M. Scott Crocco |
M. Scott Crocco | ||
Executive Vice President and Chief Financial Officer |
News Release | |
• | GAAP EPS of $1.57, up 124 percent; GAAP net income of $348 million |
• | Adjusted EPS of $1.86*, up four percent; adjusted EPS up nine percent excluding the impact of a plant sale in the prior-year quarter |
• | Adjusted EBITDA margin of 35.7 percent*, up 250 basis points |
• | Lu'An gasification project continues to drive sales and profit growth |
• | Investments around the world, including second liquid hydrogen plant in California, new air separation unit (ASU) in Minnesota, ASU plant onstream in India, and helium investments in Algeria |
• | Awarded sixth on-site nitrogen facility in Tianjin, China to supply major electronic components manufacturer’s new production line |
• | 37th consecutive year of dividend increase, with $1 billion expected to be paid to shareholders in 2019 |
• | Maintaining fiscal 2019 full-year adjusted EPS guidance of $8.05 to $8.30* per share, up 10 percent* at midpoint over prior year; fiscal 2019 second quarter adjusted EPS guidance of $1.80 to $1.90 per share*, up eight percent* at midpoint over fiscal 2018 second quarter |
• | Continue to expect fiscal year 2019 capital spending of $2.3 to $2.5 billion |
• | Industrial Gases – Americas sales of $989 million increased nine percent over prior year. Volumes and pricing each contributed two percent and higher energy pass-through added seven percent, partially offset by two percent unfavorable currency. New plants and merchant volumes were positive, partially offset by refinery customer planned maintenance outages. Adjusted EBITDA of $367 million increased four percent over the prior year, as the improved volumes and pricing, as well as higher equity affiliate income, were partially offset by increased costs. Adjusted EBITDA margin of 37.1 percent declined 180 basis points from the prior year; excluding the impact of higher energy pass-through, adjusted EBITDA margin was up 50 basis points. |
• | Industrial Gases – EMEA sales of $524 million increased two percent over prior year. Positive pricing contributed two percent, higher volumes contributed one percent, and higher energy pass-through added six percent, partially offset by four percent unfavorable currency and three percent from the India contract modification. Adjusted EBITDA of $166 million decreased one percent from prior year, as good business performance was offset by unfavorable currency. Adjusted EBITDA margin of 31.6 percent decreased 70 basis points; excluding the impact of higher energy pass-through, adjusted EBITDA margin was up 80 basis points. |
• | Industrial Gases – Asia sales of $627 million decreased three percent from prior year. Excluding the impact of the prior-year plant sale, sales increased 16 percent, with volumes up 17 percent, largely from the Lu'An gasification project. Pricing increased one percent, representing the seventh consecutive quarter of year-over-year improvement, and currency was negative three percent. Adjusted EBITDA of $298 million increased 21 percent, and adjusted EBITDA margin of 47.5 percent was up 920 basis points over prior year. Excluding the prior-year plant sale, adjusted EBITDA increased 33 percent and adjusted EBITDA margin was up 470 basis points on strong volumes and higher pricing, as well as productivity. |
Continuing Operations | |||||||||||||||||
Q1 2019 vs. Q1 2018 | Operating Income | Operating Margin(A) | Equity Affiliates' Income | Income Tax Provision | Net Income | Diluted EPS | |||||||||||
2019 GAAP | $455.0 | 20.5 | % | $52.9 | $132.1 | $347.5 | $1.57 | ||||||||||
2018 GAAP | 460.7 | 20.8 | % | 13.8 | 291.8 | 155.6 | .70 | ||||||||||
Change GAAP | ($5.7 | ) | (30 | )bp | $39.1 | ($159.7 | ) | $191.9 | $.87 | ||||||||
% Change GAAP | (1 | )% | 283 | % | (55 | )% | 123 | % | 124 | % | |||||||
2019 GAAP | $455.0 | 20.5 | % | $52.9 | $132.1 | $347.5 | $1.57 | ||||||||||
Facility closure | 29.0 | 1.3 | % | — | 6.9 | 22.1 | .10 | ||||||||||
Tax reform repatriation | — | — | % | — | 15.6 | (15.6 | ) | (.07 | ) | ||||||||
Tax reform adjustment related to deemed foreign dividends | — | — | % | — | (56.2 | ) | 56.2 | .26 | |||||||||
2019 Non-GAAP Measure | $484.0 | 21.8 | % | $52.9 | $98.4 | $410.2 | $1.86 | ||||||||||
2018 GAAP | $460.7 | 20.8 | % | $13.8 | $291.8 | $155.6 | $.70 | ||||||||||
Tax reform repatriation | — | — | % | 32.5 | (420.5 | ) | 453.0 | 2.06 | |||||||||
Tax reform rate change and other | — | — | % | — | 214.0 | (214.0 | ) | (.97 | ) | ||||||||
2018 Non-GAAP Measure | $460.7 | 20.8 | % | $46.3 | $85.3 | $394.6 | $1.79 | ||||||||||
Change Non-GAAP Measure | $23.3 | 100 | bp | $6.6 | $13.1 | $15.6 | $.07 | ||||||||||
% Change Non-GAAP Measure | 5 | % | 14 | % | 15 | % | 4 | % | 4 | % |
(A) | Operating margin is calculated by dividing operating income by sales. |
Three Months Ended | |||||||||||
31 December | |||||||||||
2018 | 2017 | Change | % Change | ||||||||
Non-GAAP Diluted EPS | $1.86 | $1.79 | $.07 | 4 | % | ||||||
Plant sale | — | (.08 | ) | ||||||||
Non-GAAP Diluted EPS – Excluding the plant sale | $1.86 | $1.71 | $.15 | 9 | % |
Three Months Ended | ||||||
31 December | ||||||
Operating Income | 2018 | 2017 | ||||
Consolidated total | $455.0 | $460.7 | ||||
Facility closure | 29.0 | — | ||||
Segment total | $484.0 | $460.7 |
Three Months Ended | ||||||
31 December | ||||||
Equity Affiliates' Income | 2018 | 2017 | ||||
Consolidated total | $52.9 | $13.8 | ||||
Tax reform repatriation - equity method investment | — | 32.5 | ||||
Segment total | $52.9 | $46.3 |
2019 | Q1 | Q2 | Q3 | Q4 | FY2019 | |||||||||||||||
Income From Continuing Operations(A) | $357.0 | $357.0 | ||||||||||||||||||
Add: Facility closure | 29.0 | 29.0 | ||||||||||||||||||
Add: Interest expense | 37.3 | 37.3 | ||||||||||||||||||
Less: Other non-operating income (expense), net | 18.5 | 18.5 | ||||||||||||||||||
Add: Income tax provision | 132.1 | 132.1 | ||||||||||||||||||
Add: Depreciation and amortization | 258.0 | 258.0 | ||||||||||||||||||
Adjusted EBITDA | $794.9 | $794.9 | ||||||||||||||||||
2018 | Q1 | Q2 | Q3 | Q4 | FY2018 | |||||||||||||||
Income From Continuing Operations(A) | $162.7 | $423.6 | $444.7 | $459.7 | $1,490.7 | |||||||||||||||
Less: Change in inventory valuation method | — | — | — | 24.1 | 24.1 | |||||||||||||||
Add: Interest expense | 29.8 | 30.4 | 34.9 | 35.4 | 130.5 | |||||||||||||||
Less: Other non-operating income (expense), net | 9.8 | 11.1 | 12.8 | (28.6 | ) | 5.1 | ||||||||||||||
Add: Income tax provision | 291.8 | 56.2 | 107.1 | 69.2 | 524.3 | |||||||||||||||
Add: Depreciation and amortization | 227.9 | 240.0 | 245.6 | 257.2 | 970.7 | |||||||||||||||
Add: Tax reform repatriation - equity method investment | 32.5 | — | — | (4.0 | ) | 28.5 | ||||||||||||||
Adjusted EBITDA | $734.9 | $739.1 | $819.5 | $822.0 | $3,115.5 |
(A) | Includes net income attributable to noncontrolling interests. |
Q1 2019 vs. Q1 2018 | Q1 | |||||||||||
Change GAAP | ||||||||||||
Income from continuing operations change | $194.3 | |||||||||||
Income from continuing operations % change | 119 | % | ||||||||||
Change Non-GAAP | ||||||||||||
Adjusted EBITDA change | $60.0 | |||||||||||
Adjusted EBITDA % change | 8 | % |
Industrial Gases– Americas | Industrial Gases– EMEA | Industrial Gases– Asia | Industrial Gases– Global | Corporate and other | Segment Total | |||||||||||||
GAAP MEASURE | ||||||||||||||||||
Three Months Ended 31 December 2018 | ||||||||||||||||||
Operating income (loss) | $219.2 | $105.6 | $201.8 | $3.9 | ($46.5 | ) | $484.0 | |||||||||||
Operating margin | 22.2 | % | 20.1 | % | 32.2 | % | 21.8 | % | ||||||||||
Three Months Ended 31 December 2017 | ||||||||||||||||||
Operating income (loss) | $217.2 | $104.5 | $175.5 | $9.5 | ($46.0 | ) | $460.7 | |||||||||||
Operating margin | 23.9 | % | 20.3 | % | 27.3 | % | 20.8 | % | ||||||||||
Operating income (loss) change | $2.0 | $1.1 | $26.3 | ($5.6 | ) | ($.5 | ) | $23.3 | ||||||||||
Operating income (loss) % change | 1 | % | 1 | % | 15 | % | (59 | )% | (1 | )% | 5 | % | ||||||
Operating margin change | (170 | ) bp | (20 | ) bp | 490 | bp | 100 | bp | ||||||||||
NON-GAAP MEASURE | ||||||||||||||||||
Three Months Ended 31 December 2018 | ||||||||||||||||||
Operating income (loss) | $219.2 | $105.6 | $201.8 | $3.9 | ($46.5 | ) | $484.0 | |||||||||||
Add: Depreciation and amortization | 125.6 | 46.3 | 79.9 | 2.1 | 4.1 | 258.0 | ||||||||||||
Add: Equity affiliates' income | 22.6 | 13.7 | 16.2 | .4 | — | 52.9 | ||||||||||||
Adjusted EBITDA | $367.4 | $165.6 | $297.9 | $6.4 | ($42.4 | ) | $794.9 | |||||||||||
Adjusted EBITDA margin | 37.1 | % | 31.6 | % | 47.5 | % | 35.7 | % | ||||||||||
Three Months Ended 31 December 2017 | ||||||||||||||||||
Operating income (loss) | $217.2 | $104.5 | $175.5 | $9.5 | ($46.0 | ) | $460.7 | |||||||||||
Add: Depreciation and amortization | 117.8 | 49.1 | 56.8 | 1.6 | 2.6 | 227.9 | ||||||||||||
Add: Equity affiliates' income | 18.6 | 13.1 | 14.2 | .4 | — | 46.3 | ||||||||||||
Adjusted EBITDA | $353.6 | $166.7 | $246.5 | $11.5 | ($43.4 | ) | $734.9 | |||||||||||
Adjusted EBITDA margin | 38.9 | % | 32.3 | % | 38.3 | % | 33.2 | % | ||||||||||
Adjusted EBITDA change | $13.8 | ($1.1 | ) | $51.4 | ($5.1 | ) | $1.0 | $60.0 | ||||||||||
Adjusted EBITDA % change | 4 | % | (1 | )% | 21 | % | (44 | )% | 2 | % | 8 | % | ||||||
Adjusted EBITDA margin change | (180 | ) bp | (70 | ) bp | 920 | bp | 250 | bp |
Effective Tax Rate | ||||||
Three Months Ended 31 December | ||||||
2018 | 2017 | |||||
Income Tax Provision—GAAP | $132.1 | $291.8 | ||||
Income From Continuing Operations Before Taxes—GAAP | $489.1 | $454.5 | ||||
Effective Tax Rate—GAAP | 27.0 | % | 64.2 | % | ||
Income Tax Provision—GAAP | $132.1 | $291.8 | ||||
Facility closure | 6.9 | — | ||||
Tax reform repatriation | 15.6 | (420.5 | ) | |||
Tax reform adjustment related to deemed foreign dividends | (56.2 | ) | — | |||
Tax reform rate change and other | — | 214.0 | ||||
Income Tax Provision—Non-GAAP Measure | $98.4 | $85.3 | ||||
Income From Continuing Operations Before Taxes—GAAP | $489.1 | $454.5 | ||||
Facility closure | 29.0 | — | ||||
Tax reform repatriation - equity method investment | — | 32.5 | ||||
Income From Continuing Operations Before Taxes—Non-GAAP Measure | $518.1 | $487.0 | ||||
Effective Tax Rate—Non-GAAP Measure | 19.0 | % | 17.5 | % |
Three Months Ended | ||||||
31 December | ||||||
2018 | 2017 | |||||
Additions to plant and equipment | $403.4 | $256.6 | ||||
Acquisitions, less cash acquired | — | 237.1 | ||||
Capital expenditures | $403.4 | $493.7 |
2019 | 2018 | 2017 | |||||||||||||||||||||||||||
Q1 | Q4 | Q3 | Q2 | Q1 | Q4 | Q3 | Q2 | Q1 | |||||||||||||||||||||
Net income from continuing operations attributable to Air Products | $ | 347.5 | $ | 452.9 | $ | 430.7 | $ | 416.4 | $ | 155.6 | $ | 474.2 | $ | 104.2 | $ | 304.4 | |||||||||||||
Interest expense | 37.3 | 35.4 | 34.9 | 30.4 | 29.8 | 30.8 | 29.8 | 30.5 | |||||||||||||||||||||
Interest expense tax impact | (10.1 | ) | (4.6 | ) | (6.8 | ) | (3.6 | ) | (19.1 | ) | .1 | (13.6 | ) | (7.1 | ) | ||||||||||||||
Interest expense, after-tax | 27.2 | 30.8 | 28.1 | 26.8 | 10.7 | 30.9 | 16.2 | 23.4 | |||||||||||||||||||||
Net income attributable to noncontrolling interests of continuing operations | 9.5 | 6.8 | 14.0 | 7.2 | 7.1 | 6.3 | 2.2 | 5.7 | |||||||||||||||||||||
Earnings After-Tax—GAAP | $ | 384.2 | $ | 490.5 | $ | 472.8 | $ | 450.4 | $ | 173.4 | $ | 511.4 | $ | 122.6 | $ | 333.5 | |||||||||||||
Disclosed items, after-tax | |||||||||||||||||||||||||||||
Change in inventory valuation method | $ | — | $ | (17.5 | ) | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | ||||||||||||
Facility closure | 22.1 | — | — | — | — | — | — | — | |||||||||||||||||||||
Tax benefit associated with business separation | — | — | — | — | — | — | (8.2 | ) | — | ||||||||||||||||||||
Cost reduction and asset actions | — | — | — | — | — | 30.9 | 30.0 | 7.2 | |||||||||||||||||||||
Goodwill and intangible asset impairment charge | — | — | — | — | — | — | 154.1 | — | |||||||||||||||||||||
Gain on land sale | — | — | — | — | — | (7.6 | ) | — | — | ||||||||||||||||||||
Equity method investment impairment charge | — | — | — | — | — | — | 79.5 | — | |||||||||||||||||||||
Pension settlement loss | — | 33.2 | — | — | — | .6 | 3.4 | 2.6 | |||||||||||||||||||||
Tax reform repatriation | (15.6 | ) | 24.1 | — | — | 453.0 | — | — | — | ||||||||||||||||||||
Tax reform adjustment related to deemed foreign dividends | 56.2 | (56.2 | ) | — | — | — | — | — | — | ||||||||||||||||||||
Tax reform rate change and other | — | 2.2 | — | — | (214.0 | ) | — | — | — | ||||||||||||||||||||
Tax restructuring | — | 3.1 | — | (38.8 | ) | — | — | — | — | ||||||||||||||||||||
Tax election benefit | — | — | — | — | — | (111.4 | ) | — | — | ||||||||||||||||||||
Earnings After-Tax—Non‑GAAP | $ | 446.9 | $ | 479.4 | $ | 472.8 | $ | 411.6 | $ | 412.4 | $ | 423.9 | $ | 381.4 | $ | 343.3 | |||||||||||||
Total Capital | |||||||||||||||||||||||||||||
Short-term borrowings | $ | 23.0 | $ | 54.3 | $ | 90.4 | $ | 112.5 | $ | 87.1 | $ | 144.0 | $ | 143.4 | $ | 122.3 | $ | 156.1 | |||||||||||
Current portion of long-term debt | 430.3 | 406.6 | 5.0 | 11.6 | 11.3 | 416.4 | 416.0 | 420.5 | 873.3 | ||||||||||||||||||||
Long-term debt | 2,954.4 | 2,967.4 | 3,377.1 | 3,442.4 | 3,414.9 | 3,402.4 | 3,366.6 | 3,300.4 | 3,289.0 | ||||||||||||||||||||
Long-term debt – related party | 360.2 | 384.3 | 398.7 | — | — | — | — | — | — | ||||||||||||||||||||
Total Debt | 3,767.9 | 3,812.6 | 3,871.2 | 3,566.5 | 3,513.3 | 3,962.8 | 3,926.0 | 3,843.2 | 4,318.4 | ||||||||||||||||||||
Total Equity | 11,203.4 | 11,176.3 | 10,810.0 | 10,693.2 | 10,321.2 | 10,185.5 | 9,509.9 | 9,420.2 | 7,261.1 | ||||||||||||||||||||
Assets of discontinued operations | — | — | — | — | (10.2 | ) | (10.2 | ) | (9.8 | ) | (9.8 | ) | (860.2 | ) | |||||||||||||||
Total Capital | $ | 14,971.3 | $ | 14,988.9 | $ | 14,681.2 | $ | 14,259.7 | $ | 13,824.3 | $ | 14,138.1 | $ | 13,426.1 | $ | 13,253.6 | $ | 10,719.3 | |||||||||||
Earnings After Tax—GAAP | $ | 1,797.9 | $ | 1,140.9 | |||||||||||||||||||||||||
Five-quarter average total capital | 14,545.1 | 13,072.3 | |||||||||||||||||||||||||||
ROCE—GAAP items | 12.4 | % | 8.7 | % | |||||||||||||||||||||||||
Change GAAP-based Measure | 370 | bp | |||||||||||||||||||||||||||
Earnings After Tax—Non-GAAP | $ | 1,810.7 | $ | 1,561.0 | |||||||||||||||||||||||||
Five-quarter average total capital | 14,545.1 | 13,072.3 | |||||||||||||||||||||||||||
ROCE—Non-GAAP items | 12.4 | % | 11.9 | % | |||||||||||||||||||||||||
Change Non-GAAP-based Measure | 50 | bp |
Diluted EPS | ||||||||
Q2 | Full Year | |||||||
2018 GAAP | $1.89 | $6.59 | ||||||
Change in inventory valuation method | — | (.08 | ) | |||||
Pension settlement loss | — | .15 | ||||||
Tax reform repatriation | — | 2.16 | ||||||
Tax reform adjustment related to deemed foreign dividends | — | (.25 | ) | |||||
Tax reform rate change and other | — | (.96 | ) | |||||
Tax restructuring | (.18 | ) | (.16 | ) | ||||
2018 Non-GAAP Measure | $1.71 | $7.45 | ||||||
2019 Non-GAAP Outlook | 1.80–1.90 | 8.05–8.30 | ||||||
Change Non-GAAP | .09–.19 | .60–.85 | ||||||
% Change Non-GAAP | 5%–11% | 8%–11% |
Three Months Ended | ||||||
31 December | ||||||
(Millions of dollars, except for share and per share data) | 2018 | 2017 | ||||
Sales | $2,224.0 | $2,216.6 | ||||
Cost of sales | 1,544.0 | 1,571.8 | ||||
Facility closure | 29.0 | — | ||||
Selling and administrative | 189.6 | 191.6 | ||||
Research and development | 15.0 | 14.6 | ||||
Other income (expense), net | 8.6 | 22.1 | ||||
Operating Income | 455.0 | 460.7 | ||||
Equity affiliates' income | 52.9 | 13.8 | ||||
Interest expense | 37.3 | 29.8 | ||||
Other non-operating income (expense), net | 18.5 | 9.8 | ||||
Income From Continuing Operations Before Taxes | 489.1 | 454.5 | ||||
Income tax provision | 132.1 | 291.8 | ||||
Income From Continuing Operations | 357.0 | 162.7 | ||||
Loss From Discontinued Operations, net of tax | — | (1.0 | ) | |||
Net Income | 357.0 | 161.7 | ||||
Net Income Attributable to Noncontrolling Interests of Continuing Operations | 9.5 | 7.1 | ||||
Net Income Attributable to Air Products | $347.5 | $154.6 | ||||
Net Income Attributable to Air Products | ||||||
Income from continuing operations | $347.5 | $155.6 | ||||
Loss from discontinued operations | — | (1.0 | ) | |||
Net Income Attributable to Air Products | $347.5 | $154.6 | ||||
Basic Earnings Per Common Share Attributable to Air Products | ||||||
Income from continuing operations | $1.58 | $.71 | ||||
Loss from discontinued operations | — | — | ||||
Net Income Attributable to Air Products | $1.58 | $.71 | ||||
Diluted Earnings Per Common Share Attributable to Air Products | ||||||
Income from continuing operations | $1.57 | $.70 | ||||
Loss from discontinued operations | — | — | ||||
Net Income Attributable to Air Products | $1.57 | $.70 | ||||
Weighted Average Common Shares – Basic (in millions) | 219.9 | 218.9 | ||||
Weighted Average Common Shares – Diluted (in millions) | 221.0 | 220.4 | ||||
Other Data from Continuing Operations | ||||||
Depreciation and amortization | $258.0 | $227.9 | ||||
Capital expenditures – Refer to page 9 | $409.6 | $500.1 |
31 December | 30 September | |||||
(Millions of dollars) | 2018 | 2018 | ||||
Assets | ||||||
Current Assets | ||||||
Cash and cash items | $2,923.3 | $2,791.3 | ||||
Short-term investments | 12.3 | 184.7 | ||||
Trade receivables, net | 1,268.2 | 1,207.2 | ||||
Inventories | 403.4 | 396.1 | ||||
Prepaid expenses | 74.9 | 129.6 | ||||
Other receivables and current assets | 407.8 | 373.3 | ||||
Total Current Assets | 5,089.9 | 5,082.2 | ||||
Investment in net assets of and advances to equity affiliates | 1,242.4 | 1,277.2 | ||||
Plant and equipment, at cost | 21,586.5 | 21,490.2 | ||||
Less: accumulated depreciation | 11,626.7 | 11,566.5 | ||||
Plant and equipment, net | 9,959.8 | 9,923.7 | ||||
Goodwill, net | 780.4 | 788.9 | ||||
Intangible assets, net | 416.9 | 438.5 | ||||
Noncurrent capital lease receivables | 985.9 | 1,013.3 | ||||
Other noncurrent assets | 666.7 | 654.5 | ||||
Total Noncurrent Assets | 14,052.1 | 14,096.1 | ||||
Total Assets | $19,142.0 | $19,178.3 | ||||
Liabilities and Equity | ||||||
Current Liabilities | ||||||
Payables and accrued liabilities | $1,738.3 | $1,817.8 | ||||
Accrued income taxes | 111.9 | 59.6 | ||||
Short-term borrowings | 23.0 | 54.3 | ||||
Current portion of long-term debt | 430.3 | 406.6 | ||||
Total Current Liabilities | 2,303.5 | 2,338.3 | ||||
Long-term debt | 2,954.4 | 2,967.4 | ||||
Long-term debt – related party | 360.2 | 384.3 | ||||
Other noncurrent liabilities | 1,551.6 | 1,536.9 | ||||
Deferred income taxes | 768.9 | 775.1 | ||||
Total Noncurrent Liabilities | 5,635.1 | 5,663.7 | ||||
Total Liabilities | 7,938.6 | 8,002.0 | ||||
Air Products Shareholders’ Equity | 10,882.9 | 10,857.5 | ||||
Noncontrolling Interests | 320.5 | 318.8 | ||||
Total Equity | 11,203.4 | 11,176.3 | ||||
Total Liabilities and Equity | $19,142.0 | $19,178.3 |
Three Months Ended | ||||||
31 December | ||||||
(Millions of dollars) | 2018 | 2017 | ||||
Operating Activities | ||||||
Net income | $357.0 | $161.7 | ||||
Less: Net income attributable to noncontrolling interests of continuing operations | 9.5 | 7.1 | ||||
Net income attributable to Air Products | 347.5 | 154.6 | ||||
Loss from discontinued operations | — | 1.0 | ||||
Income from continuing operations attributable to Air Products | 347.5 | 155.6 | ||||
Adjustments to reconcile income to cash provided by operating activities: | ||||||
Depreciation and amortization | 258.0 | 227.9 | ||||
Deferred income taxes | (1.0 | ) | (76.7 | ) | ||
Tax reform repatriation | 46.2 | 310.3 | ||||
Facility closure | 29.0 | — | ||||
Undistributed losses of unconsolidated affiliates | 1.0 | 29.9 | ||||
Gain on sale of assets and investments | (.7 | ) | (.6 | ) | ||
Share-based compensation | 9.3 | 11.8 | ||||
Noncurrent capital lease receivables | 24.8 | 23.3 | ||||
Other adjustments | 12.7 | 5.3 | ||||
Working capital changes that provided (used) cash, excluding effects of acquisitions: | ||||||
Trade receivables | (73.6 | ) | (34.2 | ) | ||
Inventories | (10.4 | ) | (8.4 | ) | ||
Other receivables | 10.3 | 23.8 | ||||
Payables and accrued liabilities | (55.4 | ) | (113.5 | ) | ||
Other working capital | 57.5 | 5.5 | ||||
Cash Provided by Operating Activities | 655.2 | 560.0 | ||||
Investing Activities | ||||||
Additions to plant and equipment | (403.4 | ) | (256.6 | ) | ||
Acquisitions, less cash acquired | — | (237.1 | ) | |||
Proceeds from sale of assets and investments | 1.1 | 10.6 | ||||
Purchases of investments | (5.3 | ) | (212.2 | ) | ||
Proceeds from investments | 178.0 | 208.9 | ||||
Other investing activities | 3.1 | 5.6 | ||||
Cash Used for Investing Activities | (226.5 | ) | (480.8 | ) | ||
Financing Activities | ||||||
Payments on long-term debt | (2.6 | ) | (408.6 | ) | ||
Net decrease in commercial paper and short-term borrowings | (38.0 | ) | (40.7 | ) | ||
Dividends paid to shareholders | (241.5 | ) | (207.5 | ) | ||
Proceeds from stock option exercises | 4.7 | 34.4 | ||||
Other financing activities | (12.4 | ) | (18.7 | ) | ||
Cash Used for Financing Activities | (289.8 | ) | (641.1 | ) | ||
Discontinued Operations | ||||||
Cash used for operating activities | — | (3.1 | ) | |||
Cash provided by investing activities | — | — | ||||
Cash provided by financing activities | — | — | ||||
Cash Used for Discontinued Operations | — | (3.1 | ) | |||
Effect of Exchange Rate Changes on Cash | (6.9 | ) | 14.0 | |||
Increase (Decrease) in Cash and Cash Items | 132.0 | (551.0 | ) | |||
Cash and Cash items - Beginning of Year | 2,791.3 | 3,273.6 | ||||
Cash and Cash items - End of Period | $2,923.3 | $2,722.6 | ||||
Supplemental Cash Flow Information | ||||||
Cash paid for taxes (net of refunds) - Continuing operations | $28.7 | $61.0 |
(Millions of dollars) | Industrial Gases – Americas | Industrial Gases – EMEA | Industrial Gases – Asia | Industrial Gases – Global | Corporate and other | Segment Total | ||||||||||||
Three Months Ended 31 December 2018 | ||||||||||||||||||
Sales | $989.2 | $524.2 | $626.8 | $68.2 | $15.6 | $2,224.0 | ||||||||||||
Operating income (loss) | 219.2 | 105.6 | 201.8 | 3.9 | (46.5 | ) | 484.0 | |||||||||||
Depreciation and amortization | 125.6 | 46.3 | 79.9 | 2.1 | 4.1 | 258.0 | ||||||||||||
Equity affiliates' income | 22.6 | 13.7 | 16.2 | .4 | — | 52.9 | ||||||||||||
Three Months Ended 31 December 2017 | ||||||||||||||||||
Sales | $909.8 | $515.9 | $643.6 | $133.0 | $14.3 | $2,216.6 | ||||||||||||
Operating income (loss) | 217.2 | 104.5 | 175.5 | 9.5 | (46.0 | ) | 460.7 | |||||||||||
Depreciation and amortization | 117.8 | 49.1 | 56.8 | 1.6 | 2.6 | 227.9 | ||||||||||||
Equity affiliates' income | 18.6 | 13.1 | 14.2 | .4 | — | 46.3 |
Total Assets | ||||||||||||||||||
31 December 2018 | $5,859.6 | $3,214.6 | $6,037.0 | $255.4 | $3,775.4 | $19,142.0 | ||||||||||||
30 September 2018 | 5,904.0 | 3,280.4 | 5,899.5 | 240.1 | 3,854.3 | 19,178.3 |
Three Months Ended | ||||||
31 December | ||||||
Operating Income | 2018 | 2017 | ||||
Segment total | $484.0 | $460.7 | ||||
Facility closure | (29.0 | ) | — | |||
Consolidated Total | $455.0 | $460.7 |
Three Months Ended | ||||||
31 December | ||||||
Equity Affiliates' Income | 2018 | 2017 | ||||
Segment total | $52.9 | $46.3 | ||||
Tax reform repatriation - equity method investment | — | (32.5 | ) | |||
Consolidated Total | $52.9 | $13.8 |