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News ReleaseAir Products Reports Strong Fiscal 2018 Second Quarter Results; GAAP EPS Up 36 Percent and Adjusted EPS Up 20 Percent over Prior Year

April 26, 2018 Lehigh Valley, Pa.

Q2 FY18 (all from continuing operations):

  • GAAP EPS of $1.89, up 36 percent from the prior year; GAAP net income of $416 million 
  • Adjusted EPS of $1.71*, up 20 percent versus prior year
  • Adjusted EBITDA margin of 34.3 percent*, up 140 basis points versus prior year


  • Expect to close on $1.3 billion Lu'An syngas supply joint venture in fiscal 2018 third quarter, onstream in phases 
  • Awarded industrial gases supply to Samsung Electronics' second 3D V-NAND Fab in Western China
  • Signed agreement to purchase largest carbon dioxide business in Continental Europe, ACP Europe SA 


  • Increased fiscal 2018 adjusted EPS guidance to $7.25 to $7.40 per share, now up 15 to 17 percent over prior year. This increase is due in part to the expected contribution from the Lu'An project. Fiscal 2018 third quarter adjusted EPS guidance of $1.80 to $1.85 per share, up nine to 12 percent over fiscal 2017 third quarter. 
  • Including the Lu'An project, expected fiscal year 2018 capital spending of $1.8 to $2.0 billion

*The results and guidance in this release, including in the highlights above, include references to non-GAAP continuing operations measures. These exclude discontinued operations and are identified by the word “adjusted” preceding the measure. A reconciliation of GAAP to non-GAAP results can be found below.

Air Products (NYSE: APD) today reported GAAP net income from continuing operations of $416 million and GAAP diluted earnings per share (EPS) from continuing operations of $1.89, up 37 and 36 percent, respectively from the prior year, for its fiscal second quarter ended March 31, 2018. These results include an income tax benefit of $0.18 EPS due to the restructuring of select foreign subsidiaries. 

For the quarter, on a non-GAAP basis, adjusted net income from continuing operations of $378 million and diluted adjusted EPS from continuing operations of $1.71 both increased 20 percent over prior year.

Second quarter sales of $2.2 billion increased nine percent from the prior year on four percent higher volumes and five percent favorable currency. Volumes were higher in all three Industrial Gas regions, partially offset by lower activity from the Jazan project in Saudi Arabia. Pricing increased one percent, driven primarily by the China merchant business.

For the quarter, adjusted EBITDA of $739 million increased 13 percent over the prior year, driven by the higher volumes, positive pricing and favorable currency. Adjusted EBITDA margin of 34.3 percent increased 140 basis points over the prior year, primarily on the higher volumes.

Commenting on the results, Seifi Ghasemi, chairman, president and chief executive officer, said, “Our talented and committed Air Products team delivered another strong quarter, further improving safety performance and financial results. Adjusted EPS of $1.71 increased 20 percent over prior year, our 16th consecutive quarter of year-on-year adjusted EPS growth. We also continued to generate a significant amount of investable cash. Adjusted EBITDA margin of 34.3 percent shows our people are continuing to focus on delivering strong operating performance while successfully winning new growth opportunities," he said.

Air Products Q2FY18 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 (880 KB)

Second Quarter Results by Business Segment

  • Industrial Gases – Americas sales of $913 million increased three percent over prior year, driven by higher hydrogen and merchant gases volumes. Adjusted EBITDA of $362 million increased three percent over the prior year, primarily driven by the higher volumes.

  • Industrial Gases – EMEA sales of $562 million increased 36 percent over prior year, driven by 20 percent higher volumes, 15 percent favorable currency and one percent favorable pricing. The higher volumes were primarily from the new hydrogen plant in India; merchant volumes also contributed positively. Adjusted EBITDA of $179 million increased 29 percent over the prior year on the higher volumes, pricing and currency. Adjusted EBITDA margin of 31.8 percent decreased 160 basis points from the prior year; excluding the India plant, which has comparatively high natural gas costs, adjusted EBITDA margin was up slightly compared to prior year.

  • Industrial Gases – Asia sales of $558 million increased 28 percent over prior year, driven by 17 percent higher volumes from new plants and base business growth, eight percent favorable currency, and three percent higher pricing. Adjusted EBITDA of $227 million increased 30 percent on the strong volumes, favorable currency and higher pricing. 


Ghasemi said, “Our team's performance continues to have us operating from a position of great strength. Air Products people around the world are working hard, every day, to drive our safety, productivity and operational performance higher. In addition, our very strong balance sheet and cash flow position mean we have the capability to invest at least $13 billion over the next five years in many growth opportunities we see, including acquisitions, asset buybacks and large projects. Our absolute focus on these two areas -- delivering operational excellence and strategically deploying capital for growth -- are our playbook for continuing to create value for our customers and shareholders."

Increasing guidance for fiscal 2018, Air Products now expects full-year adjusted EPS of $7.25 to $7.40 per share, up 15 to 17 percent over prior year. For the fiscal 2018 third quarter, Air Products expects adjusted EPS of $1.80 to $1.85 per share, up nine to 12 percent over the fiscal 2017 third quarter.

Including the Lu'An project, the capital expenditure forecast for fiscal year 2018 now is expected to be in the range of $1.8 to $2.0 billion on a GAAP and non-GAAP basis.

Management has provided adjusted EPS and adjusted tax rate guidance on a continuing operations basis. While Air Products might have additional impacts from the U.S. Tax Cuts and Jobs Act adopted in late 2017, or incur additional costs for items such as cost reduction actions and pension settlements in future periods, it is not possible, without unreasonable efforts, to identify the amount or significance of these events or the potential for other transactions that may impact future GAAP EPS or the effective tax rate. Management does not believe these items to be representative of underlying business performance. Accordingly, management is unable to reconcile, without unreasonable effort, the Company’s forecasted range of adjusted EPS or the impact of the adjusted tax rate to a comparable GAAP range.

Earnings Teleconference
Access the Q2 earnings teleconference scheduled for 10:00 a.m. Eastern Time on April 26 by calling (323) 794-2551 and entering passcode 6702758, or access the Event Details page on Air Products’ Investor Relations web site.

About Air Products
Air Products (NYSE:APD) is a world-leading Industrial Gases company in operation for over 75 years. The Company’s core industrial gases business provides atmospheric and process gases and related equipment to manufacturing markets, including refining and petrochemical, metals, electronics, and food and beverage. Air Products is also the world’s leading supplier of liquefied natural gas process technology and equipment.

The Company had fiscal 2017 sales of $8.2 billion from continuing operations in 50 countries and has a current market capitalization of about $35 billion. Approximately 15,000 passionate, talented and committed employees from a diversity of backgrounds are driven by Air Products’ higher purpose to create innovative solutions that benefit the environment, enhance sustainability and address the challenges facing customers, communities, and the world. 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, business outlook and investment opportunities. These forward-looking statements are based on management’s reasonable expectations and assumptions as of the date this release is furnished. 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; political risks, including the risks of unanticipated government actions; acts of war or terrorism; 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; our ability to execute the projects in our backlog; asset impairments due to economic conditions or specific events; the impact of price fluctuations in natural gas and disruptions in markets and the economy due to oil price volatility; costs and outcomes of litigation or regulatory investigations; the success of productivity and operational improvement programs; the timing, impact, and other uncertainties of future acquisitions or divestitures, including reputational impacts; the Company’s ability to implement and operate with new technologies; the impact of changes in environmental, tax or other legislation, economic sanctions 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, 2017. 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.

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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
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