Air Products Home

News ReleaseAir Products Reports Fiscal 2015 Third Quarter EPS Up 13 Percent*

July 30, 2015 Lehigh Valley, Pa.

  • EPS of $1.65*, up 13 percent* versus prior year on a non-GAAP diluted basis despite significant currency headwinds
  • Adjusted EBITDA margin of 30.7* percent up 430* basis points versus prior year
  • Accelerating benefits from restructuring, enabled by the new organization 
  • Awarded major gases supply contract for new semiconductor giga fab in South Korea
  • EPS of $1.47 versus prior year of $1.46 on a GAAP diluted basis

Air Products (NYSE: APD) today reported net income of $359 million*, up 14 percent* versus prior year, and diluted earnings per share (EPS) of $1.65*, up 13 percent* versus prior year for its fiscal third quarter ended June 30, 2015.

On a GAAP basis, net income and diluted EPS from continuing operations were $319 million and $1.47, respectively, for the quarter.

*The results and guidance in this release, unless otherwise indicated, are based on non-GAAP continuing operations. A reconciliation of GAAP to non-GAAP results can be found at the end of this release.

Third quarter sales of $2,470 million decreased six percent versus prior year, as underlying sales growth of four percent was offset by unfavorable currency and lower energy pass-through. Volumes increased three percent, primarily in Industrial Gases–Asia, Materials Technologies and the LNG business, and pricing was up one percent.

Operating income of $482 million increased 17 percent versus prior year, and operating margin of 19.5 percent improved 380 basis points, driven by cost performance, higher pricing and higher volumes. Adjusted EBITDA of $758 million increased nine percent over prior year, and EBITDA margin of 30.7 percent improved 430 basis points, reflecting strong operating leverage.

Commenting on the quarter, Seifi Ghasemi, chairman, president and chief executive officer, said, “The Air Products team delivered another quarter of great results, with particular strength in our regional Industrial Gases segments, while Materials Technologies continued to improve. We again showed strong improvement in safety, and despite significant currency headwinds and stagnant economic conditions around the globe, our earnings per share were up by 13 percent, EBITDA margins increased to more than 30 percent, and this quarter’s operating margin is the highest in more than 25 years. This significant improvement is a direct result of our people executing our five-point strategy. As a result, we have again increased our full year guidance to $6.50 - $6.60, which at midpoint is up 13% over last year.”

Third Quarter Results by Business Segment:

  • Industrial Gases – Americas sales of $898 million decreased 16 percent versus prior year on 13 percent lower energy pass-through and three percent unfavorable currency. Underlying sales were flat, as higher pricing offset lower volumes. Operating income of $207 million increased nine percent. Operating margin of 23 percent improved 520 basis points over prior year, driven by cost performance, lower energy pass-through, and higher pricing. Adjusted EBITDA of $328 million increased six percent, and EBITDA margin of 36.5 percent improved 740 basis points over prior year. Sequentially, operating income increased 13 percent on higher volumes and price and lower costs. 

  • Industrial Gases – Europe, Middle East, and Africa (EMEA) sales of $455 million declined 15 percent versus last year, driven by 16 percent unfavorable currency. Volumes and pricing were both up one percent. Operating income of $88 million increased two percent as strong cost performance was largely offset by unfavorable currency, while record operating margin of 19.2 percent increased 330 basis points. Adjusted EBITDA of $147 million decreased five percent versus prior year, and record EBITDA margin of 32.2 percent increased 350 basis points.

  • Industrial Gases – Asia sales of $418 million increased 14 percent versus prior year, primarily on 11 percent volume growth mainly from new plants. Unfavorable currency impacts reduced sales by three percent. Operating income of $101 million increased 20 percent, and operating margin of 24.2 percent improved 130 basis points over prior year due to higher volumes from the new plants and strong cost performance overcoming negative pricing. Adjusted EBITDA of $166 million increased 12 percent. Sequentially, operating income increased 19 percent on strong cost performance and higher seasonal volumes. 

  • Materials Technologies sales of $540 million increased three percent over the prior year. Underlying sales were up seven percent on four percent higher volume growth and three percent positive pricing, partially offset by unfavorable currency of four percent. On a constant currency basis, Electronics Materials sales were up 18 percent on strong volume growth and positive price. On a constant currency basis, Performance Materials sales declined two percent from the prior year on softer volumes. Record operating income of $132 million increased 36 percent, and record operating margin of 24.4 percent improved 600 basis points versus prior year, primarily due to higher pricing and volumes. Record adjusted EBITDA of $155 million increased 27 percent, and record EBITDA margin of 28.6 percent improved 540 basis points over prior year.

Non-GAAP results for the company exclude a pre-tax charge of $59.8 million, or $0.18 per share, for business restructuring and pension settlement.


Looking ahead, Air Products expects fourth quarter EPS from continuing operations to be between $1.75 and $1.85 per share. For the full fiscal year, the Company is raising its guidance from continuing operations to $6.50 to $6.60 per share, which at the midpoint, represents a 13 percent increase over fiscal 2014.

Subsequent Event

Earlier in July, Air Products acquired 30.5 percent of the outstanding shares of Indura−an industrial gas business in Latin America−increasing its ownership position to 97.8 percent. The valuation was agreed at the time of initial purchase in 2012 and will be a use of cash of $278 million in the company’s fiscal fourth quarter.

Air Products Q315 Earnings Release – Tables
Reconciliation of Non-GAAP Measures, Consolidated Income Statements, Consolidated Balance Sheets, Consolidated Statements of Cash Flows, Summary by Business Segments, Notes to Consolidated Financial Statements
Download PDF (1,052 KB)
Access the Q3 earnings teleconference scheduled for 10:00 a.m. Eastern Time on July 30 by calling 888-500-6954 (domestic) or 719-457-2715 (international) and entering passcode 1083893, or access the Event Details page on Air Products’ Investor Relations web site.

About Air Products
Air Products (NYSE:APD) is a leading industrial gases company. For nearly 75 years, the Company has provided atmospheric, process and specialty gases, and related equipment to manufacturing markets, including metals, food and beverage, refining and petrochemical, and natural gas liquefaction. Air Products’ Materials Technologies segment serves the semiconductor, polyurethanes, cleaning and coatings, and adhesives industries. Over 20,000 employees in 50 countries are working to make Air Products the world’s safest and best performing industrial gases company, providing sustainable offerings and excellent service to all customers. In fiscal 2014, Air Products had sales of $10.4 billion and was ranked number 276 on the Fortune 500 annual list of public companies. For more information, visit

NOTE: This release contains "forward-looking statements" within the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, including statements about earnings guidance and business outlook. These forward-looking statements are based on management's reasonable expectations and assumptions as of the date of this release. Actual performance and financial results may differ materially from projections and estimates expressed in the forward-looking statements because of many factors not anticipated by management, including, without limitation, global or regional economic conditions and supply and demand dynamics in market segments into which the Company sells; significant fluctuations in interest rates and foreign currencies from that currently anticipated; future financial and operating performance of major customers; unanticipated contract terminations or customer cancellations or postponement of projects and sales; asset impairments due to economic conditions or specific events; the impact of competitive products and pricing; challenges of implementing new technologies; ability to protect and enforce the Company's intellectual property rights; unexpected changes in raw material supply and markets; the impact of price fluctuations in natural gas and disruptions in markets and the economy due to oil price volatility; the ability to recover increased energy and raw material costs from customers; costs and outcomes of litigation or regulatory investigations; the impact of management and organizational changes; the success of productivity and cost reduction programs; the timing, impact, and other uncertainties of future acquisitions or divestitures; political risks, including the risks of unanticipated government actions; acts of war or terrorism; the impact of changes in environmental, tax or other legislation and regulatory activities in jurisdictions in which the Company and its affiliates operate; and other risk factors described in the Company's Form 10-K for its fiscal year ended September 30, 2014. The Company disclaims any obligation or undertaking to disseminate any updates or revisions to any forward-looking statements contained in this release to reflect any change in the Company's assumptions, beliefs or expectations or any change in events, conditions, or circumstances upon which any such forward-looking statements are based.
Air Products Q315 Earnings Release – Tables
Reconciliation of Non-GAAP Measures, Consolidated Income Statements, Consolidated Balance Sheets, Consolidated Statements of Cash Flows, Summary by Business Segments, Notes to Consolidated Financial Statements
Download PDF (776 KB)

Air Products Q315 Earnings Release – Tables
Reconciliation of Non-GAAP Measures, Consolidated Income Statements, Consolidated Balance Sheets, Consolidated Statements of Cash Flows, Summary by Business Segments, Notes to Consolidated Financial Statements
Download PDF (776 KB)

Connect with us on:


Contact Information

  • Press Contact
    Katie McDonald
    Air Products and Chemicals, Inc.
    7201 Hamilton Boulevard
    Allentown, PA 18195-1501
    (610) 481-6642
  • Investor Contact
    Simon Moore
    (610) 481-7461
    Air Products and Chemicals, Inc.
    7201 Hamilton Boulevard
    Allentown, PA 18195-1501
    (610) 481-2729
An error has occured, please fix the highlighted fields.
To request a quote or for more information about Air Products, please fill out the form below, and an Air Products representative will contact you shortly.
Please use the form below to contact us.

What can we answer for you?

  1. What kind of inquiry?

If you would prefer to contact us by phone, you can call any of our Air Products locations worldwide by visiting Worldwide Locations & Phone Numbers.


This site uses cookies to store information on your computer. Some are essential to make our site work; others help us to better understand our users. By using the site, you consent to the placement of these cookies. Read our Legal Notice to learn more.