Air Products Chemicals Inc
For the period ended Mar 31, 2024. Filed Apr 30, 2024.
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A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Mar 31, 2024 · Filed Apr 30, 2024
Extracted filing text, with the paragraph anchors used by the comparison.
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Second Quarter 2024 in Summary
SECOND QUARTER 2024 VS. SECOND QUARTER 2023
SECOND QUARTER 2024 IN SUMMARY
Sales of $2,930.2 decreased 8%, or $269.9, as lower energy cost pass-through to customers of 6%, lower volumes of 2%, and an unfavorable impact from currency of 1% were partially offset by higher pricing of 1%.
Operating income of $637.2 increased 39%, or $177.4, as lower costs and positive pricing were partially offset by lower volumes and unfavorable currency impacts. Operating margin of 21.7% increased 730 basis points ("bp") due to these factors as well as a positive impact from lower energy cost pass-through to customers.
Equity affiliates' income of $143.3 decreased 14%, or $22.6, as lower contributions from affiliates in our Europe and Middle East and India segments were partially offset by higher income from affiliates in the Americas segment.
Net income of $580.9 increased 29%, or $131.0, primarily due to lower costs and positive pricing, partially offset by lower equity affiliates' income, lower volumes, and higher interest expense. Net income margin of 19.8% increased 570 bp due to these factors as well as a positive impact from lower energy cost pass-through to customers.
Adjusted EBITDA of $1,198.3 increased 4%, or $47.4, and adjusted EBITDA margin of 40.9% increased 490 bp.
Diluted EPS of $2.57 increased 30%, or $0.60 per share. Diluted EPS for the second quarter of fiscal years 2024 and 2023 included unfavorable impacts from business and asset actions as well as non-service related pension costs. On a non-GAAP basis, adjusted diluted EPS of $2.85 increased 4%, or $0.11 per share. A summary table of changes in diluted EPS is presented below.
In January 2024, the Board of Directors increased the quarterly dividend to $1.77 per share, representing our 42 nd consecutive year of dividend increases.
Changes in Diluted EPS Attributable to Air Products
The per share impacts presented in the tables below were calculated independently and may not sum to the total change in diluted EPS due to rounding.
| Three Months Ended | |||
|---|---|---|---|
| 31 March · Increase | |||
| 2024 | 2023 | (Decrease) | |
| Diluted EPS | $2.57 | $1.97 | $0.60 |
| Operating Impacts | |||
| Underlying business | |||
| Volume | (0.07) | ||
| Price, net of variable costs | 0.16 | ||
| Other costs | 0.12 | ||
| Currency | (0.03) | ||
| Business and asset actions | 0.49 | ||
| Total Operating Impacts | $0.67 | ||
| Other Impacts | |||
| Equity affiliates' income | ($0.08) | ||
| Interest expense | (0.07) | ||
| Other non-operating income/expense, net | 0.02 | ||
| Change in effective tax rate | 0.03 | ||
| Noncontrolling interests | 0.03 | ||
| Total Other Impacts | ($0.07) | ||
| Total Change in Diluted EPS | $0.60 | ||
| % Change from prior year | 30% | ||
The table below summarizes the diluted per share impact of our non-GAAP adjustments for the second quarter of fiscal years 2024 and 2023:
| Three Months Ended | |||
|---|---|---|---|
| 31 March · Increase | |||
| 2024 | 2023 | (Decrease) | |
| Diluted EPS | $2.57 | $1.97 | $0.60 |
| Business and asset actions | 0.20 | 0.69 | (0.49) |
| Non-service pension cost, net | 0.08 | 0.08 | — |
| Adjusted Diluted EPS | $2.85 | $2.74 | $0.11 |
| % Change from prior year | 4% | ||
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