LEHIGH
VALLEY, Pa., Nov. 7, 2023
/PRNewswire/ --
Fiscal Year 2023 (comparisons versus prior
year):
- GAAP EPS# of $10.30,
up two percent; GAAP net income of $2.3
billion, up three percent; and GAAP net income margin of
18.6 percent, up 80 basis points
- Adjusted EPS* of $11.51, up 12
percent; adjusted EBITDA* of $4.7
billion, up 11 percent; and adjusted EBITDA margin* of 37.3
percent, up 390 basis points
Q4 FY23 (comparisons versus prior year):
- GAAP EPS# of $3.08, up
20 percent; GAAP net income of $694
million, up 17 percent; and GAAP net income margin of 21.8
percent, up 520 basis points
- Adjusted EPS* of $3.15, up 11
percent; adjusted EBITDA* of $1.3
billion, up 10 percent; and adjusted EBITDA margin* of 39.5
percent, up 740 basis points
Fiscal 2023 and Recent Highlights
- Increased quarterly dividend eight percent to $1.75 per share in January, the 41st
consecutive year of increases
- Issued inaugural green bonds in concurrent $600 million and €700 million debt offerings in
March, making Air Products the first U.S. chemical company to
qualify green and blue hydrogen projects as an eligible expenditure
category
- Advanced the energy transition:
- Completed financial close on the world's largest green
hydrogen-based ammonia production facility with equal joint venture
partners, ACWA Power and NEOM, in May; the total value of
$8.4 billion is being financed with
$6.1 billion non-recourse financing
from 23 local, regional and international banks and financial
institutions; Air Products will be the exclusive off-taker of the
green ammonia from the facility, which it intends to transport to
end-markets to be dissociated to produce green hydrogen for
transportation and industrial markets
- Announced plan to build, own and operate state-of-the-art
carbon capture and carbon dioxide treatment facility at Air
Products' existing hydrogen production plant in Rotterdam, the Netherlands; the facility is
expected to be on-stream in 2026, and the resulting "blue" hydrogen
product will serve ExxonMobil's (Esso) Rotterdam refinery and additional customers
via Air Products' hydrogen pipeline network system
- Announced joint venture with AES Corporation to build, own
and operate the U.S.'s largest green hydrogen facility in
Wilbarger County, Texas in
December 2022
- Achieved financial close and transfer of the second group of
assets for the $12 billion
gasification and power joint venture with Aramco, ACWA Power and
Air Products Qudra in the Jazan Economic City, Saudi Arabia in January
2023
- Signed $1 billion investment
agreement with the Republic of Uzbekistan and Uzbekneftegaz JSC to acquire,
own and operate a natural gas-to-syngas processing facility within
Uzbekneftegaz JSC's multi-billion dollar gas-to-liquids facility,
one of the most advanced energy plants in the world; brought
project on-stream in October 2023,
which is expected to be accretive to earnings in fiscal 2024
- Announced major liquefied natural gas (LNG) technology and
equipment project wins, including: Petronas LNG Complex (Bintulu,
Sarawak, Malaysia), Qatargas
(North Field South Project, Ras Laffan, the State of Qatar), Bechtel Energy Inc.
(NextDecade's Rio Grande LNG Phase I project, Port of Brownsville, Texas), and Technip Energies'
Xi'An LNG project with Shaanxi LNG Reserves & Logistics Company
Ltd. (Shaanxi Province,
China); increased equipment
winding capacity at LNG manufacturing facility in Port Manatee, Florida
- Entered into an amended employment agreement with Chairman,
President and CEO Seifi Ghasemi to
extend the term of his employment until September 30, 2028. On September 30, 2024 and on each anniversary
thereof, the term of the employment agreement will automatically
renew to be a five-year term unless either party provides notice of
non-renewal or the agreement is otherwise terminated in accordance
with its terms.
Guidance
- Fiscal 2024 full-year adjusted EPS guidance* of $12.80 to $13.10,
up 13 percent at the midpoint over prior year adjusted EPS*; fiscal
2024 first quarter adjusted EPS guidance* of $2.90 to $3.05, up
13 percent at the midpoint over prior year first quarter adjusted
EPS*
- Expect fiscal year 2024 capital expenditures* of $5.0 billion to $5.5
billion
#Earnings per share is calculated and
presented on a diluted basis from continuing operations
attributable to Air Products.
*Certain results in this release, including in the highlights
above, include references to non-GAAP financial measures on a
consolidated, continuing operations basis and a segment basis.
Additional information regarding these measures and reconciliations
of GAAP to non-GAAP historical results can be found below. In
addition, as discussed below, it is not possible, without
unreasonable efforts, to identify the timing or occurrence of
future events, transactions, and/or investment activity that could
have a significant effect on the Company's future GAAP EPS or cash
flow used for investing activities if any of these events were to
occur.
Fiscal 2023 Consolidated Results
Air Products (NYSE:APD) today reported fiscal year 2023 results,
including GAAP EPS from continuing operations of $10.30, up two percent over prior year. The
current year includes an unfavorable $1.21 per share cost for business and asset
actions as well as costs for the non-service related components of
the Company's defined benefit pension plans, both of which are
reflected as adjustments in the non-GAAP measures discussed below.
GAAP net income of $2.3 billion
increased three percent over prior year, primarily on favorable
pricing, which was partially offset by business and asset actions
and higher other costs. GAAP net income margin of 18.6 percent
increased 80 basis points, which included a positive impact of
about 100 basis points from lower energy cost pass-through.
For the year, on a non-GAAP basis, adjusted EPS from continuing
operations of $11.51 increased 12
percent over the prior year. Adjusted EBITDA of $4.7 billion increased 11 percent over the prior
year as higher pricing more than offset higher costs. Adjusted
EBITDA margin of 37.3 percent increased 390 basis points, which
included a positive impact of about 200 basis points from lower
energy cost pass-through.
Full-year sales of $12.6 billion
decreased one percent from the prior year, as five percent higher
pricing and three percent higher volumes were more than offset by a
six percent reduction in energy cost pass-through and a three
percent reduction due to unfavorable currency. Pricing improved in
the Company's largest segments and volume growth was primarily
driven by the on-site business.
Fiscal 2023 Fourth Quarter Consolidated Results
For its fiscal fourth quarter 2023, Air Products reported GAAP
EPS from continuing operations of $3.08, up 20 percent from prior year. The current
year includes an unfavorable $0.08
per share cost for the non-service related components of the
Company's defined benefit pension plans, which is reflected as an
adjustment in the non-GAAP measures discussed below. GAAP net
income of $694 million was up 17
percent due to higher pricing and higher equity affiliates' income,
partially offset by higher costs. GAAP net income margin of
21.8 percent increased 520 basis points over the prior year, which
included a positive impact of about 250 basis points from lower
energy cost pass-through.
For the quarter, on a non-GAAP basis, adjusted EPS from
continuing operations of $3.15
increased 11 percent over the prior year. Adjusted EBITDA of
$1.3 billion was up 10 percent due to
higher pricing and higher equity affiliates' income, partially
offset by higher costs. Adjusted EBITDA margin of 39.5 percent
increased 740 basis points over the prior year, which included a
positive impact of about 450 basis points from lower energy cost
pass-through.
Fourth quarter sales of $3.2
billion decreased 11 percent from the prior year, as two
percent higher pricing and one percent favorable currency were more
than offset by 14 percent lower energy cost pass-through which
negatively affected sales but not profits.
Commenting on the results, Air Products' Chairman, President and
Chief Executive Officer Seifi
Ghasemi said, "Our growth strategy is evident in the
results that our hard working and committed team again delivered.
Our people around the world provided excellent service to our core
industrial gas customers across dozens of industries while
continuing to execute our first-mover clean hydrogen megaprojects
to decarbonize the heavy-duty transportation and industrial sectors
of our global economy. Working together, we continue to demonstrate
the stability and resilience of our business despite challenging
economic conditions. As we invest strategically for growth, we have
also continued to increase the dividend, paying out approximately
$1.5 billion to our shareholders
during the year."
Fiscal 2023 Fourth Quarter Results by Business
Segment
- Americas sales of $1.4
billion were down 12 percent versus the prior year, as four
percent higher pricing and three percent higher volumes were more
than offset by 19 percent lower energy cost pass-through. Operating
income of $398 million increased 20
percent and adjusted EBITDA of $601
million increased 17 percent, in each case due to higher
pricing and higher volumes, partially offset by higher costs.
Operating margin of 29.4 percent increased 780 basis points and
adjusted EBITDA margin of 44.5 percent increased 1,110 basis
points. The operating margin and adjusted EBITDA margin
improvements included positive impacts from lower energy cost
pass-through of approximately 450 basis points and 750 basis
points, respectively.
- Asia sales of
$802 million decreased seven percent
over the prior year, as two percent higher pricing and two percent
higher energy cost pass-through were more than offset by seven
percent lower volumes and four percent unfavorable currency.
Operating income of $197 million
decreased 25 percent and adjusted EBITDA of $318 million decreased 15 percent, primarily due
to unfavorable volume. Operating margin of 24.6 percent decreased
600 basis points and adjusted EBITDA margin of 39.6 percent
decreased 370 basis points.
- Europe sales of
$712 million decreased 18 percent
from the prior year, as seven percent favorable currency and flat
volumes were more than offset by 24 percent lower energy cost
pass-through and one percent lower pricing. Operating income of
$168 million increased 12 percent and
adjusted EBITDA of $250 million
increased 15 percent, primarily driven by lower variable costs.
Operating margin of 23.6 percent increased 620 basis points and
adjusted EBITDA margin of 35.1 percent increased 1,000 basis
points. The operating margin and adjusted EBITDA margin
improvements included positive impacts from lower energy cost
pass-through of approximately 400 basis points and 600 basis
points, respectively.
- Middle East and
India equity affiliates'
income of $91 million increased 44
percent compared to the prior year, primarily due to the completion
of the second phase of the Jazan project in January 2023.
- Corporate and other sales of $290
million increased 11 percent compared to the prior year,
driven by higher LNG sale of equipment activity.
Outlook
Air Products expects full-year fiscal 2024 adjusted EPS
guidance* of $12.80 to $13.10, up 13 percent at the midpoint over prior
year adjusted EPS. For the fiscal 2024 first quarter, Air Products'
adjusted EPS guidance* is $2.90 to
$3.05, up 13 percent at the midpoint
over fiscal 2023 first quarter adjusted EPS.
Air Products expects capital expenditures* of $5.0 billion to $5.5
billion for full-year fiscal 2024.
*Management is unable
to reconcile, without unreasonable effort, the Company's forecasted
range of adjusted EPS or capital expenditures to a comparable GAAP
range. Air Products provides adjusted EPS guidance on a continuing
operations basis, excluding the impact of certain items that
management believes are not representative of the Company's
underlying business performance, such as the incurrence of
costs for cost reduction actions and impairment charges, or the
recognition of gains or losses on certain disclosed items. It is
not possible, without unreasonable efforts, to predict the timing
or occurrence of these events or the potential for other
transactions that may impact future GAAP EPS. Similarly, it is not
possible, without unreasonable efforts, to reconcile forecasted
capital expenditures to future cash used for investing activities
because management is not able to identify the timing or occurrence
of future investment activity, which is driven by management's
assessment of competing opportunities at the time the Company
enters into transactions. Furthermore, it is not possible to
identify the potential significance of these events in advance, but
any of these events, if they were to occur, could have a
significant effect on the Company's future GAAP results.
|
Earnings Teleconference
Access the fiscal 2023 fourth quarter earnings teleconference
scheduled for 8:30 a.m. Eastern Time
on November 7, 2023 by calling 323-794-2551 and entering
passcode 2770249 or by accessing the Event Details page on Air
Products' Investor Relations website.
About Air Products
Air Products (NYSE:APD) is a world-leading industrial gases
company in operation for over 80 years focused on serving energy,
environmental, and emerging markets. The Company has two growth
pillars driven by sustainability. Air Products' base business
provides essential industrial gases, related equipment and
applications expertise to customers in dozens of industries,
including refining, chemicals, metals, electronics, manufacturing,
and food. The Company also develops, engineers, builds, owns and
operates some of the world's largest clean hydrogen projects
supporting the transition to low- and zero-carbon energy in the
heavy-duty transportation and industrial sectors. Additionally, Air
Products is the world leader in the supply of liquefied natural gas
process technology and equipment, and provides turbomachinery,
membrane systems and cryogenic containers globally.
The Company had fiscal 2023 sales of $12.6 billion from operations in
approximately 50 countries and has a current market
capitalization of about $65 billion.
Approximately 23,000 passionate, talented and committed employees
from diverse backgrounds are driven by Air Products' higher purpose
to create innovative solutions that benefit the environment,
enhance sustainability and reimagine what's possible to address the
challenges facing customers, communities, and the world. For more
information, visit www.airproducts.com or follow us on LinkedIn, X,
Facebook or Instagram.
Cautionary Note Regarding Forward-Looking Statements
This release contains "forward-looking statements" within the
safe harbor provisions of the Private Securities Litigation Reform
Act of 1995, including statements about earnings and capital
expenditure guidance, business outlook and investment
opportunities. Forward-looking statements are based on management's
expectations and assumptions as of the date of this release and are
not guarantees of future performance. While forward-looking
statements are made in good faith and based on assumptions,
expectations and projections that management believes are
reasonable based on currently available information, actual
performance and financial results may differ materially from
projections and estimates expressed in the forward-looking
statements because of many factors, including, without limitation:
changes in global or regional economic conditions, inflation, and
supply and demand dynamics in the market segments we serve,
including demand for technologies and projects to limit the impact
of global climate change; changes in the financial markets that may
affect the availability and terms on which we may obtain financing;
the ability to implement price increases to offset cost increases;
disruptions to our supply chain and related distribution delays and
cost increases; risks associated with having extensive
international operations, including political risks, risks
associated with unanticipated government actions and risks of
investing in developing markets; project delays, scope changes,
cost escalations, contract terminations, customer cancellations, or
postponement of projects and sales; our ability to safely develop,
operate, and manage costs of large-scale and technically complex
projects; the future financial and operating performance of major
customers, joint ventures, and equity affiliates; our ability to
develop, implement, and operate new technologies and to market
products produced utilizing new technologies; our ability to
execute the projects in our backlog and refresh our pipeline of new
projects; tariffs, economic sanctions and regulatory activities in
jurisdictions in which we and our affiliates and joint ventures
operate; the impact of environmental, tax, safety, or other
legislation, as well as regulations and other public policy
initiatives affecting our business and the business of our
affiliates and related compliance requirements, including
legislation, regulations, or policies intended to address global
climate change; changes in tax rates and other changes in tax law;
safety incidents relating to our operations; the timing, impact,
and other uncertainties relating to acquisitions and divestitures,
including our ability to integrate acquisitions and separate
divested businesses, respectively; risks relating to cybersecurity
incidents, including risks from the interruption, failure or
compromise of our information systems or those of our business
partners or service providers; catastrophic events, such as natural
disasters and extreme weather events, pandemics and other public
health crises, acts of war, including Russia's invasion of Ukraine and new and ongoing conflicts in the
Middle East, or terrorism; the
impact on our business and customers of price fluctuations in oil
and natural gas and disruptions in markets and the economy due to
oil and natural gas price volatility; costs and outcomes of legal
or regulatory proceedings and investigations; asset impairments due
to economic conditions or specific events; significant fluctuations
in inflation, interest rates, and foreign currency exchange rates
from those currently anticipated; damage to facilities, pipelines
or delivery systems, including those we are constructing or that we
own or operate for third parties; availability and cost of electric
power, natural gas, and other raw materials; the success of
productivity and operational improvement programs; and other risks
described in our Annual Report on Form 10-K for the fiscal year
ended September 30, 2022 and
subsequent filings we have made with the U.S. Securities and
Exchange Commission. You are cautioned not to place undue reliance
on our forward-looking statements. Except as required by law, we
disclaim any obligation or undertaking to update or revise any
forward-looking statements contained herein to reflect any change
in assumptions, beliefs, or expectations or any change in events,
conditions, or circumstances upon which any such forward-looking
statements are based.
Air Products and
Chemicals, Inc. and Subsidiaries
|
CONSOLIDATED INCOME
STATEMENTS
|
(Unaudited)
|
|
|
Three Months
Ended
|
Twelve Months
Ended
|
|
30 September
|
30 September
|
(Millions of U.S.
Dollars, except for share and per share data)
|
2023
|
2022
|
2023
|
2022
|
Sales
|
$3,191.3
|
$3,570.0
|
$12,600.0
|
$12,698.6
|
Cost of
sales
|
2,207.2
|
2,621.2
|
8,833.0
|
9,338.5
|
Selling and
administrative expense
|
232.7
|
223.9
|
957.0
|
900.6
|
Research and
development expense
|
24.7
|
31.1
|
105.6
|
102.9
|
Business and asset
actions
|
—
|
73.7
|
244.6
|
73.7
|
Other income (expense),
net
|
11.9
|
6.4
|
34.8
|
55.9
|
Operating
Income
|
738.6
|
626.5
|
2,494.6
|
2,338.8
|
Equity affiliates'
income
|
163.4
|
96.8
|
604.3
|
481.5
|
Interest
expense
|
48.0
|
32.5
|
177.5
|
128.0
|
Other non-operating
income (expense), net
|
(12.8)
|
20.2
|
(39.0)
|
62.4
|
Income From
Continuing Operations Before Taxes
|
841.2
|
711.0
|
2,882.4
|
2,754.7
|
Income tax
provision
|
154.2
|
130.6
|
551.2
|
500.8
|
Income From
Continuing Operations
|
687.0
|
580.4
|
2,331.2
|
2,253.9
|
Income from
discontinued operations, net of tax
|
7.4
|
12.6
|
7.4
|
12.6
|
Net
Income
|
694.4
|
593.0
|
2,338.6
|
2,266.5
|
Net income attributable
to noncontrolling interests of continuing operations
|
1.8
|
9.9
|
38.4
|
10.4
|
Net Income
Attributable to Air Products
|
$692.6
|
$583.1
|
$2,300.2
|
$2,256.1
|
|
|
|
|
|
Net Income
Attributable to Air Products
|
|
|
|
|
Net income from
continuing operations
|
$685.2
|
$570.5
|
$2,292.8
|
$2,243.5
|
Net income from
discontinued operations
|
7.4
|
12.6
|
7.4
|
12.6
|
Net Income
Attributable to Air Products
|
$692.6
|
$583.1
|
$2,300.2
|
$2,256.1
|
|
|
|
|
|
Per Share
Data(A) (U.S. Dollars per share)
|
|
|
|
|
Basic EPS from
continuing operations
|
$3.08
|
$2.57
|
$10.31
|
$10.11
|
Basic EPS from
discontinued operations
|
0.03
|
0.06
|
0.03
|
0.06
|
Basic EPS
attributable to Air Products
|
$3.11
|
$2.63
|
$10.35
|
$10.16
|
|
|
|
|
|
Diluted EPS from
continuing operations
|
$3.08
|
$2.56
|
$10.30
|
$10.08
|
Diluted EPS from
discontinued operations
|
0.03
|
0.06
|
0.03
|
0.06
|
Diluted EPS
attributable to Air Products
|
$3.11
|
$2.62
|
$10.33
|
$10.14
|
|
|
|
|
|
Weighted Average
Common Shares (in millions)
|
|
|
|
|
Basic
|
222.4
|
222.1
|
222.3
|
222.0
|
Diluted
|
222.8
|
222.5
|
222.7
|
222.5
|
|
(A) Earnings
per share ("EPS") is calculated independently for each component
and may not sum to total EPS due to rounding.
|
Air Products and
Chemicals, Inc. and Subsidiaries
|
CONSOLIDATED BALANCE
SHEETS
|
(Unaudited)
|
|
|
30 September
|
30 September
|
(Millions of U.S.
Dollars)
|
2023
|
2022
|
Assets
|
|
|
Current
Assets
|
|
|
Cash and cash
items
|
$1,617.0
|
$2,711.0
|
Short-term
investments
|
332.2
|
590.7
|
Trade receivables,
net
|
1,700.4
|
1,794.4
|
Inventories
|
651.8
|
514.2
|
Prepaid
expenses
|
177.0
|
156.8
|
Other receivables and
current assets
|
722.1
|
515.8
|
Total Current
Assets
|
5,200.5
|
6,282.9
|
Investment in net
assets of and advances to equity affiliates
|
4,617.8
|
3,353.8
|
Plant and equipment, at
cost
|
32,746.3
|
28,160.1
|
Less: accumulated
depreciation
|
15,274.2
|
13,999.6
|
Plant and equipment,
net
|
17,472.1
|
14,160.5
|
Goodwill,
net
|
861.7
|
823.0
|
Intangible assets,
net
|
334.6
|
347.5
|
Operating lease
right-of-use assets, net
|
974.0
|
694.8
|
Noncurrent lease
receivables
|
494.7
|
583.1
|
Financing
receivables
|
817.2
|
—
|
Other noncurrent
assets
|
1,229.9
|
947.0
|
Total Noncurrent
Assets
|
26,802.0
|
20,909.7
|
Total
Assets
|
$32,002.5
|
$27,192.6
|
Liabilities and
Equity
|
|
|
Current
Liabilities
|
|
|
Payables and accrued
liabilities
|
$2,890.1
|
$2,771.6
|
Accrued income
taxes
|
131.2
|
135.2
|
Short-term
borrowings
|
259.5
|
10.7
|
Current portion of
long-term debt
|
615.0
|
548.3
|
Total Current
Liabilities
|
3,895.8
|
3,465.8
|
Long-term
debt
|
9,280.6
|
6,433.8
|
Long-term debt –
related party
|
150.7
|
652.0
|
Noncurrent operating
lease liabilities
|
631.1
|
592.1
|
Other noncurrent
liabilities
|
1,118.0
|
1,099.1
|
Deferred income
taxes
|
1,266.0
|
1,247.4
|
Total Noncurrent
Liabilities
|
12,446.4
|
10,024.4
|
Total
Liabilities
|
16,342.2
|
13,490.2
|
Air Products
Shareholders' Equity
|
14,312.9
|
13,144.0
|
Noncontrolling
Interests
|
1,347.4
|
558.4
|
Total
Equity
|
15,660.3
|
13,702.4
|
Total Liabilities
and Equity
|
$32,002.5
|
$27,192.6
|
Air Products
and Chemicals, Inc. and Subsidiaries
|
CONSOLIDATED
STATEMENTS OF CASH FLOWS
|
(Unaudited)
|
|
|
Twelve Months
Ended
|
|
30 September
|
(Millions of U.S.
Dollars)
|
2023
|
2022
|
Operating
Activities
|
|
|
Net income
|
$2,338.6
|
$2,266.5
|
Less: Net income
attributable to noncontrolling interests of continuing
operations
|
38.4
|
10.4
|
Net income attributable
to Air Products
|
2,300.2
|
2,256.1
|
Net income from
discontinued operations
|
(7.4)
|
(12.6)
|
Net income from
continuing operations attributable to Air Products
|
2,292.8
|
2,243.5
|
Adjustments to
reconcile income to cash provided by operating
activities:
|
|
|
Depreciation and
amortization
|
1,358.3
|
1,338.2
|
Deferred income
taxes
|
(24.7)
|
32.3
|
Business and asset
actions
|
244.6
|
73.7
|
Undistributed earnings
of equity method investments
|
(261.2)
|
(214.7)
|
Gain on sale of assets
and investments
|
(15.8)
|
(24.1)
|
Share-based
compensation
|
59.9
|
48.4
|
Noncurrent lease
receivables
|
79.6
|
94.0
|
Other
adjustments
|
(103.0)
|
(304.9)
|
Working capital changes
that provided (used) cash, excluding effects of
acquisitions:
|
|
|
Trade
receivables
|
130.7
|
(475.2)
|
Inventories
|
(129.4)
|
(94.3)
|
Other
receivables
|
(93.8)
|
(1.8)
|
Payables and accrued
liabilities
|
(213.3)
|
532.5
|
Other working
capital
|
(119.0)
|
(77.0)
|
Cash Provided by
Operating Activities
|
3,205.7
|
3,170.6
|
Investing
Activities
|
|
|
Additions to plant and
equipment, including long-term deposits
|
(4,626.4)
|
(2,926.5)
|
Acquisitions, less cash
acquired
|
—
|
(65.1)
|
Investment in and
advances to unconsolidated affiliates
|
(912.0)
|
(1,658.4)
|
Investment in financing
receivables
|
(665.1)
|
—
|
Proceeds from sale of
assets and investments
|
25.4
|
46.2
|
Purchases of
investments
|
(640.1)
|
(1,637.8)
|
Proceeds from
investments
|
897.0
|
2,377.4
|
Other investing
activities
|
4.8
|
7.0
|
Cash Used for
Investing Activities
|
(5,916.4)
|
(3,857.2)
|
Financing
Activities
|
|
|
Long-term debt
proceeds
|
3,516.2
|
766.2
|
Payments on long-term
debt
|
(615.4)
|
(400.0)
|
Net increase in
commercial paper and short-term borrowings
|
268.2
|
17.9
|
Dividends paid to
shareholders
|
(1,496.6)
|
(1,383.3)
|
Proceeds from stock
option exercises
|
24.0
|
19.3
|
Investments by
noncontrolling interests
|
234.9
|
21.0
|
Distributions to
noncontrolling interests
|
(115.9)
|
(4.8)
|
Other financing
activities
|
(205.8)
|
(36.9)
|
Cash Provided by
(Used for) Financing Activities
|
1,609.6
|
(1,000.6)
|
Discontinued
Operations
|
|
|
Cash provided by
operating activities
|
0.6
|
59.6
|
Cash provided by
investing activities
|
—
|
—
|
Cash provided by
financing activities
|
—
|
—
|
Cash Provided by
Discontinued Operations
|
0.6
|
59.6
|
Effect of Exchange
Rate Changes on Cash
|
6.5
|
(130.3)
|
Decrease in cash and
cash items
|
(1,094.0)
|
(1,757.9)
|
Cash and cash items –
Beginning of year
|
2,711.0
|
4,468.9
|
Cash and Cash Items
– End of Period
|
$1,617.0
|
$2,711.0
|
Supplemental Cash
Flow Information
|
|
|
Cash paid for taxes,
net of refunds (continuing operations)
|
$645.8
|
$428.8
|
Income tax refunds
(discontinued operations)
|
0.6
|
59.6
|
Air Products and
Chemicals, Inc. and Subsidiaries
|
BUSINESS SEGMENT
INFORMATION
|
(Unaudited)
|
|
(Millions of U.S.
Dollars)
|
Americas
|
Asia
|
Europe
|
Middle East
and
India
|
Corporate
and other
|
Total
|
|
Three Months Ended
30 September 2023
|
Sales
|
$1,351.3
|
$801.5
|
$711.7
|
$36.6
|
$290.2
|
$3,191.3
|
|
Operating income
(loss)
|
397.7
|
196.8
|
168.3
|
3.1
|
(27.3)
|
738.6
|
(A)
|
Depreciation and
amortization
|
168.5
|
113.3
|
55.0
|
7.3
|
13.2
|
357.3
|
|
Equity affiliates'
income
|
34.8
|
7.5
|
26.5
|
91.3
|
3.3
|
163.4
|
(A)
|
Three Months Ended
30 September 2022
|
Sales
|
$1,541.9
|
$860.3
|
$863.7
|
$41.5
|
$262.6
|
$3,570.0
|
|
Operating income
(loss)
|
332.8
|
263.0
|
150.4
|
4.6
|
(50.6)
|
700.2
|
(A)
|
Depreciation and
amortization
|
160.0
|
106.3
|
46.2
|
7.1
|
13.2
|
332.8
|
|
Equity affiliates'
income
|
22.5
|
3.6
|
20.4
|
63.3
|
1.8
|
111.6
|
(A)
|
|
|
|
|
|
|
|
|
Twelve Months Ended
30 September 2023
|
Sales
|
$5,369.3
|
$3,216.1
|
$2,963.1
|
$162.5
|
$889.0
|
$12,600.0
|
|
Operating income
(loss)
|
1,439.7
|
906.5
|
663.4
|
16.9
|
(287.3)
|
2,739.2
|
(A)
|
Depreciation and
amortization
|
649.3
|
433.5
|
196.2
|
27.5
|
51.8
|
1,358.3
|
|
Equity affiliates'
income
|
109.2
|
29.7
|
102.5
|
349.8
|
13.1
|
604.3
|
(A)
|
Twelve Months Ended
30 September 2022
|
Sales
|
$5,368.9
|
$3,143.3
|
$3,086.1
|
$129.5
|
$970.8
|
$12,698.6
|
|
Operating income
(loss)
|
1,174.4
|
898.3
|
503.4
|
21.1
|
(184.7)
|
2,412.5
|
(A)
|
Depreciation and
amortization
|
629.5
|
436.5
|
195.2
|
26.9
|
50.1
|
1,338.2
|
|
Equity affiliates'
income
|
98.2
|
22.1
|
78.2
|
293.9
|
3.9
|
496.3
|
(A)
|
|
|
|
|
|
|
|
|
Total
Assets
|
|
|
|
|
|
|
|
30 September
2023
|
$9,927.5
|
$7,009.6
|
$4,649.8
|
$5,708.4
|
$4,707.2
|
$32,002.5
|
|
30 September
2022
|
8,237.7
|
6,968.7
|
3,645.1
|
2,980.7
|
5,360.4
|
27,192.6
|
|
|
(A) Refer to the
"Reconciliations to Consolidated Results" below.
|
Reconciliations to Consolidated Results
The table below reconciles total operating income disclosed in
the table above to consolidated operating income as reflected on
our consolidated income statements:
|
Three Months
Ended
|
Twelve Months
Ended
|
|
30 September
|
30 September
|
Operating
Income
|
2023
|
2022
|
2023
|
2022
|
Total
|
$738.6
|
$700.2
|
$2,739.2
|
$2,412.5
|
Business and asset
actions
|
—
|
(73.7)
|
(244.6)
|
(73.7)
|
Consolidated
Operating Income
|
$738.6
|
$626.5
|
$2,494.6
|
$2,338.8
|
The table below
reconciles total equity affiliates' income disclosed in the table
above to consolidated equity affiliates' income as reflected on our
consolidated income statements:
|
|
Three Months
Ended
|
Twelve Months
Ended
|
|
30 September
|
30 September
|
Equity Affiliates'
Income
|
2023
|
2022
|
2023
|
2022
|
Total
|
$163.4
|
$111.6
|
$604.3
|
$496.3
|
Equity method
investment impairment charge
|
—
|
(14.8)
|
—
|
(14.8)
|
Consolidated Equity
Affiliates' Income
|
$163.4
|
$96.8
|
$604.3
|
$481.5
|
RECONCILIATIONS OF NON-GAAP FINANCIAL
MEASURES
(Millions of U.S. Dollars unless otherwise
indicated, except for per share data)
We present certain financial measures, other than in accordance
with U.S. generally accepted accounting principles ("GAAP"), on an
"adjusted" or "non-GAAP" basis. On a consolidated basis, these
measures include adjusted diluted earnings per share ("EPS"),
adjusted EBITDA, adjusted EBITDA margin, and capital expenditures.
On a segment basis, these measures include adjusted EBITDA and
adjusted EBITDA margin. In addition to these measures, we also
present certain supplemental non-GAAP financial measures to help
the reader understand the impact that certain disclosed items, or
"non-GAAP adjustments," have on the calculation of our adjusted
diluted EPS. For each non-GAAP financial measure, we present a
reconciliation to the most directly comparable financial measure
calculated in accordance with GAAP.
In many cases, non-GAAP financial measures are determined by
adjusting the most directly comparable GAAP measure to exclude
non-GAAP adjustments that we believe are not representative of our
underlying business performance. For example, we exclude the impact
of the non-service components of net periodic benefit/cost for our
defined benefit pension plans as further discussed below.
Additionally, we may exclude certain expenses associated with cost
reduction actions, impairment charges, and gains on disclosed
transactions. The reader should be aware that we may recognize
similar losses or gains in the future.
When applicable, the tax impact of our pre-tax non-GAAP
adjustments reflects the expected current and deferred income tax
impact of our non-GAAP adjustments. These tax impacts are primarily
driven by the statutory tax rate of the various relevant
jurisdictions and the taxability of the adjustments in those
jurisdictions.
We provide these non-GAAP financial measures to allow investors,
potential investors, securities analysts, and others to evaluate
the performance of our business in the same manner as our
management. We believe these measures, when viewed together with
financial results computed in accordance with GAAP, provide a more
complete understanding of the factors and trends affecting our
historical financial performance and projected future results.
However, we caution readers not to consider these measures in
isolation or as a substitute for the most directly comparable
measures calculated in accordance with GAAP. Readers should also
consider the limitations associated with these non-GAAP financial
measures, including the potential lack of comparability of these
measures from one company to another.
NON-GAAP ADJUSTMENTS
Our non-GAAP adjustments for the fourth quarter and fiscal year
ended 30 September 2023 are detailed
below. For information related to non-GAAP adjustments for the
fourth quarter and fiscal year ended 30
September 2022, refer to Exhibit 99.1 to our Current Report
on Form 8-K dated 3 November
2022.
Business and Asset Actions
Our consolidated income statement for the fiscal year ended
30 September 2023 reflects an expense
of $244.6 ($204.9 attributable to Air Products after tax, or
$0.92 per share) for strategic
business and asset actions intended to optimize costs and focus
resources on our growth projects. The expense included a noncash
charge of $217.6 to write off assets
related to our exit from certain projects previously under
construction as well as an expense of $27.0 for severance and other benefits associated
with position eliminations and the restructuring of certain
organizations globally. The charges we record for business and
asset actions are not recorded in segment results.
Discontinued Operations
In the fourth quarter of fiscal year 2023, we recognized income
from discontinued operations, net of tax, of $7.4 ($0.03 per
share). This primarily resulted from a net tax benefit recorded
upon release of tax liabilities for uncertain tax positions
associated with our former Performance Materials Division for which
the statute of limitations expired.
Non-service Pension Cost (Benefit), Net
Effective beginning in fiscal year 2023, our adjusted EPS
excludes the impact of non-service related components of net
periodic benefit/cost for our defined benefit pension plans. The
prior year non-GAAP financial measures presented below have been
recast accordingly to conform to the fiscal year 2023 presentation.
Non-service related components are recurring, non-operating items
that include interest cost, expected returns on plan assets, prior
service cost amortization, actuarial loss amortization, as well as
special termination benefits, curtailments, and settlements. The
net impact of non-service related components is reflected within
"Other non-operating income (expense), net" on our consolidated
income statements. Adjusting for the impact of non-service pension
components provides management and users of our financial
statements with a more accurate representation of our underlying
business performance because these components are driven by factors
that are unrelated to our operations, such as recent changes to the
allocation of our pension plan assets associated with de-risking as
well as volatility in equity and debt markets. Further, non-service
related components are not indicative of our defined benefit plans'
future contribution needs due to the funded status of the
plans.
ADJUSTED DILUTED EPS
The tables below provide a reconciliation to the most directly
comparable GAAP measure for each of the major components used to
calculate adjusted diluted EPS from continuing operations, which we
view as a key performance metric. In periods that we have non-GAAP
adjustments, we believe it is important for the reader to
understand the per share impact of each such adjustment because
management does not consider these impacts when evaluating
underlying business performance. Per share impacts are calculated
independently and may not sum to total diluted EPS and total
adjusted diluted EPS due to rounding.
|
Three Months Ended 30
September
|
Q4 2023 vs. Q4
2022
|
Operating
Income
|
Equity Affiliates' Income
|
Other Non-
Operating
Income/
Expense,
Net
|
Income
Tax Provision
|
Net Income
Attributable to
Air Products
|
Diluted
EPS
|
Q4 2023 GAAP
|
$738.6
|
$163.4
|
($12.8)
|
$154.2
|
$685.2
|
$3.08
|
Q4 2022 GAAP
|
626.5
|
96.8
|
20.2
|
130.6
|
570.5
|
2.56
|
$ Change
GAAP
|
|
|
|
|
|
$0.52
|
% Change
GAAP
|
|
|
|
|
|
20 %
|
|
|
|
|
|
|
|
Q4 2023 GAAP
|
$738.6
|
$163.4
|
($12.8)
|
$154.2
|
$685.2
|
$3.08
|
Non-service pension
cost, net
|
—
|
—
|
22.4
|
5.6
|
16.8
|
0.08
|
Q4 2023 Non-GAAP ("Adjusted")
|
$738.6
|
$163.4
|
$9.6
|
$159.8
|
$702.0
|
$3.15
|
|
|
|
|
|
|
|
Q4 2022 GAAP
|
$626.5
|
$96.8
|
$20.2
|
$130.6
|
$570.5
|
$2.56
|
Business and asset
actions
|
73.7
|
—
|
—
|
12.7
|
61.0
|
0.27
|
Equity method
investment impairment charge
|
—
|
14.8
|
—
|
3.7
|
11.1
|
0.05
|
Non-service pension
benefit, net
|
—
|
—
|
(11.3)
|
(2.7)
|
(8.6)
|
(0.04)
|
Q4 2022 Non-GAAP ("Adjusted")
|
$700.2
|
$111.6
|
$8.9
|
$144.3
|
$634.0
|
$2.85
|
$ Change Non-GAAP
("Adjusted")
|
|
|
|
|
|
$0.30
|
% Change Non-GAAP
("Adjusted")
|
|
|
|
|
|
11 %
|
|
|
|
|
|
|
|
|
Twelve Months Ended 30
September
|
2023 vs.
2022
|
Operating
Income
|
Equity Affiliates' Income
|
Other Non-
Operating
Income/
Expense,
Net
|
Income
Tax Provision
|
Net Income
Attributable to
Air Products
|
Diluted
EPS
|
2023 GAAP
|
$2,494.6
|
$604.3
|
($39.0)
|
$551.2
|
$2,292.8
|
$10.30
|
2022 GAAP
|
2,338.8
|
481.5
|
62.4
|
500.8
|
2,243.5
|
10.08
|
$ Change
GAAP
|
|
|
|
|
|
$0.22
|
% Change
GAAP
|
|
|
|
|
|
2 %
|
|
|
|
|
|
|
|
2023 GAAP
|
$2,494.6
|
$604.3
|
($39.0)
|
$551.2
|
$2,292.8
|
$10.30
|
Business and asset
actions(A)
|
244.6
|
—
|
—
|
34.7
|
204.9
|
0.92
|
Non-service pension
cost, net
|
—
|
—
|
86.8
|
21.6
|
65.2
|
0.29
|
2023 Non-GAAP
("Adjusted")
|
$2,739.2
|
$604.3
|
$47.8
|
$607.5
|
$2,562.9
|
$11.51
|
|
|
|
|
|
|
|
2022 GAAP
|
$2,338.8
|
$481.5
|
$62.4
|
$500.8
|
$2,243.5
|
$10.08
|
Business and asset
actions
|
73.7
|
—
|
—
|
12.7
|
61.0
|
0.27
|
Equity method
investment impairment charge
|
—
|
14.8
|
—
|
3.7
|
11.1
|
0.05
|
Non-service pension
benefit, net
|
—
|
—
|
(44.7)
|
(10.8)
|
(33.9)
|
(0.15)
|
2022
Non-GAAP ("Adjusted")
|
$2,412.5
|
$496.3
|
$17.7
|
$506.4
|
$2,281.7
|
$10.25
|
$ Change Non-GAAP
("Adjusted")
|
|
|
|
|
|
$1.26
|
% Change Non-GAAP
("Adjusted")
|
|
|
|
|
|
12 %
|
|
|
|
|
|
|
|
(A ) Charge
includes $5.0 attributable to noncontrolling interests.
|
ADJUSTED EBITDA AND ADJUSTED EBITDA MARGIN
We define adjusted EBITDA as net income less income from
discontinued operations, net of tax, and excluding non-GAAP
adjustments, which we do not believe to be indicative of underlying
business trends, before interest expense, other non-operating
income (expense), net, income tax provision, and depreciation and
amortization expense. Adjusted EBITDA and adjusted EBITDA margin
provide useful metrics for management to assess operating
performance. Margins are calculated independently for each period
by dividing each line item by consolidated sales for the respective
period and may not sum to total margin due to rounding.
The tables below present consolidated sales and a reconciliation
of net income on a GAAP basis to adjusted EBITDA and net income
margin on a GAAP basis to adjusted EBITDA margin:
|
Q1
|
|
Q2
|
|
Q3
|
|
Q4
|
|
FY Total
|
2023
|
$
|
Margin
|
|
$
|
Margin
|
|
$
|
Margin
|
|
$
|
Margin
|
|
$
|
Margin
|
Sales
|
$3,174.7
|
|
|
$3,200.1
|
|
|
$3,033.9
|
|
|
$3,191.3
|
|
|
$12,600.0
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income and net
income margin
|
$583.8
|
18.4 %
|
|
$449.9
|
14.1 %
|
|
$610.5
|
20.1 %
|
|
$694.4
|
21.8 %
|
|
$2,338.6
|
18.6 %
|
Less: Income from
discontinued operations, net of tax
|
—
|
— %
|
|
—
|
— %
|
|
—
|
— %
|
|
7.4
|
0.2 %
|
|
7.4
|
0.1 %
|
Add: Interest
expense
|
41.2
|
1.3 %
|
|
40.9
|
1.3 %
|
|
47.4
|
1.6 %
|
|
48.0
|
1.5 %
|
|
177.5
|
1.4 %
|
Less: Other
non-operating income (expense), net
|
(0.6)
|
— %
|
|
(13.9)
|
(0.4 %)
|
|
(11.7)
|
(0.4 %)
|
|
(12.8)
|
(0.4 %)
|
|
(39.0)
|
(0.3 %)
|
Add: Income tax
provision
|
136.4
|
4.3 %
|
|
121.0
|
3.8 %
|
|
139.6
|
4.6 %
|
|
154.2
|
4.8 %
|
|
551.2
|
4.4 %
|
Add: Depreciation and
amortization
|
321.5
|
10.1 %
|
|
339.6
|
10.6 %
|
|
339.9
|
11.2 %
|
|
357.3
|
11.2 %
|
|
1,358.3
|
10.8 %
|
Add: Business and asset
actions
|
—
|
— %
|
|
185.6
|
5.8 %
|
|
59.0
|
1.9 %
|
|
—
|
— %
|
|
244.6
|
1.9 %
|
Adjusted EBITDA and
adjusted EBITDA margin
|
$1,083.5
|
34.1 %
|
|
$1,150.9
|
36.0 %
|
|
$1,208.1
|
39.8 %
|
|
$1,259.3
|
39.5 %
|
|
$4,701.8
|
37.3 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Q1
|
|
Q2
|
|
Q3
|
|
Q4
|
|
FY Total
|
2022
|
$
|
Margin
|
|
$
|
Margin
|
|
$
|
Margin
|
|
$
|
Margin
|
|
$
|
Margin
|
Sales
|
$2,994.2
|
|
|
$2,945.1
|
|
|
$3,189.3
|
|
|
$3,570.0
|
|
|
$12,698.6
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income and net
income margin
|
$549.6
|
18.4 %
|
|
$536.8
|
18.2 %
|
|
$587.1
|
18.4 %
|
|
$593.0
|
16.6 %
|
|
$2,266.5
|
17.8 %
|
Less: Income from
discontinued operations, net of tax
|
—
|
— %
|
|
—
|
— %
|
|
—
|
— %
|
|
12.6
|
0.4 %
|
|
12.6
|
0.1 %
|
Add: Interest
expense
|
30.5
|
1.0 %
|
|
32.3
|
1.1 %
|
|
32.7
|
1.0 %
|
|
32.5
|
0.9 %
|
|
128.0
|
1.0 %
|
Less: Other
non-operating income (expense), net
|
22.6
|
0.8 %
|
|
9.1
|
0.3 %
|
|
10.5
|
0.3 %
|
|
20.2
|
0.6 %
|
|
62.4
|
0.5 %
|
Add: Income tax
provision
|
113.3
|
3.8 %
|
|
122.7
|
4.2 %
|
|
134.2
|
4.2 %
|
|
130.6
|
3.7 %
|
|
500.8
|
3.9 %
|
Add: Depreciation and
amortization
|
332.3
|
11.1 %
|
|
335.9
|
11.4 %
|
|
337.2
|
10.6 %
|
|
332.8
|
9.3 %
|
|
1,338.2
|
10.5 %
|
Add: Business and asset
actions
|
—
|
— %
|
|
—
|
— %
|
|
—
|
— %
|
|
73.7
|
2.1 %
|
|
73.7
|
0.6 %
|
Add: Equity method
investment impairment charge
|
—
|
— %
|
|
—
|
— %
|
|
—
|
— %
|
|
14.8
|
0.4 %
|
|
14.8
|
0.1 %
|
Adjusted EBITDA and
adjusted EBITDA margin
|
$1,003.1
|
33.5 %
|
|
$1,018.6
|
34.6 %
|
|
$1,080.7
|
33.9 %
|
|
$1,144.6
|
32.1 %
|
|
$4,247.0
|
33.4 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2023
vs. 2022
|
Q1
|
|
Q2
|
|
Q3
|
|
Q4
|
|
FY Total
|
Change
GAAP
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income $
change
|
$34.2
|
|
($86.9)
|
|
$23.4
|
|
$101.4
|
|
$72.1
|
Net income %
change
|
6 %
|
|
(16 %)
|
|
4 %
|
|
17 %
|
|
3 %
|
Net income margin
change
|
— bp
|
|
(410) bp
|
|
170 bp
|
|
520 bp
|
|
80 bp
|
Change
Non-GAAP
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA $
change
|
$80.4
|
|
$132.3
|
|
$127.4
|
|
$114.7
|
|
$454.8
|
Adjusted EBITDA %
change
|
8 %
|
|
13 %
|
|
12 %
|
|
10 %
|
|
11 %
|
Adjusted EBITDA margin
change
|
60 bp
|
|
140 bp
|
|
590 bp
|
|
740 bp
|
|
390 bp
|
The tables below present sales and a reconciliation of operating
income and operating margin to adjusted EBITDA and adjusted EBITDA
margin for the Company's three largest regional segments for the
three months ended 30 September 2023
and 2022:
Americas
|
Q4 FY23
|
Q4 FY22
|
|
$ Change
|
Change
|
Sales
|
$1,351.3
|
$1,541.9
|
|
($190.6)
|
(12 %)
|
|
|
|
|
|
|
Operating
income
|
$397.7
|
$332.8
|
|
$64.9
|
20 %
|
Operating
margin
|
29.4 %
|
21.6 %
|
|
|
780
bp
|
|
|
|
|
|
|
Reconciliation of GAAP
to Non-GAAP:
|
|
|
|
|
|
Operating
income
|
$397.7
|
$332.8
|
|
|
|
Add: Depreciation and
amortization
|
168.5
|
160.0
|
|
|
|
Add: Equity affiliates'
income
|
34.8
|
22.5
|
|
|
|
Adjusted
EBITDA
|
$601.0
|
$515.3
|
|
$85.7
|
17 %
|
Adjusted EBITDA
margin
|
44.5 %
|
33.4 %
|
|
|
1,110 bp
|
|
Asia
|
Q4 FY23
|
Q4 FY22
|
|
$ Change
|
Change
|
Sales
|
$801.5
|
$860.3
|
|
($58.8)
|
(7 %)
|
|
|
|
|
|
|
Operating
income
|
$196.8
|
$263.0
|
|
($66.2)
|
(25 %)
|
Operating
margin
|
24.6 %
|
30.6 %
|
|
|
(600) bp
|
|
|
|
|
|
|
Reconciliation of GAAP
to Non-GAAP:
|
|
|
|
|
|
Operating
income
|
$196.8
|
$263.0
|
|
|
|
Add: Depreciation and
amortization
|
113.3
|
106.3
|
|
|
|
Add: Equity affiliates'
income
|
7.5
|
3.6
|
|
|
|
Adjusted
EBITDA
|
$317.6
|
$372.9
|
|
($55.3)
|
(15 %)
|
Adjusted EBITDA
margin
|
39.6 %
|
43.3 %
|
|
|
(370) bp
|
|
Europe
|
Q4 FY23
|
Q4 FY22
|
|
$ Change
|
Change
|
Sales
|
$711.7
|
$863.7
|
|
($152.0)
|
(18 %)
|
|
|
|
|
|
|
Operating
income
|
$168.3
|
$150.4
|
|
$17.9
|
12 %
|
Operating
margin
|
23.6 %
|
17.4 %
|
|
|
620
bp
|
|
|
|
|
|
|
Reconciliation of GAAP
to Non-GAAP:
|
|
|
|
|
|
Operating
income
|
$168.3
|
$150.4
|
|
|
|
Add: Depreciation and
amortization
|
55.0
|
46.2
|
|
|
|
Add: Equity affiliates'
income
|
26.5
|
20.4
|
|
|
|
Adjusted
EBITDA
|
$249.8
|
$217.0
|
|
$32.8
|
15 %
|
Adjusted EBITDA
margin
|
35.1 %
|
25.1 %
|
|
|
1,000 bp
|
CAPITAL EXPENDITURES
Capital expenditures is a non-GAAP financial measure that we
define as the sum of cash flows for additions to plant and
equipment, including long-term deposits, acquisitions (less cash
acquired), investment in and advances to unconsolidated affiliates,
and investment in financing receivables on our consolidated
statements of cash flows. Additionally, we adjust additions to
plant and equipment to exclude NEOM Green Hydrogen Company ("NGHC")
expenditures funded by the joint venture's non-recourse project
financing as well as our partners' equity contributions to arrive
at a measure that we believe is more representative of our
investment activities. Substantially all the funding we provide to
NGHC is limited for use by the venture for capital
expenditures.
A reconciliation of cash used for investing activities to our
reported capital expenditures is provided below:
|
Twelve Months
Ended
|
|
30 September
|
|
2023
|
2022
|
Cash used for investing
activities
|
$5,916.4
|
$3,857.2
|
Proceeds from sale of
assets and investments
|
25.4
|
46.2
|
Purchases of
investments
|
(640.1)
|
(1,637.8)
|
Proceeds from
investments
|
897.0
|
2,377.4
|
Other investing
activities
|
4.8
|
7.0
|
NGHC expenditures not
funded by Air Products' equity(A)
|
(979.1)
|
—
|
Capital
expenditures
|
$5,224.4
|
$4,650.0
|
|
(A)
|
Reflects the portion of
"Additions to plant and equipment, including long-term deposits"
that is associated with NGHC, less our approximate cash investment
in the joint venture.
|
The components of our capital expenditures are detailed in the
table below:
|
Twelve Months
Ended
|
|
30 September
|
|
2023
|
2022
|
Additions to plant and
equipment, including long-term deposits
|
$4,626.4
|
$2,926.5
|
Acquisitions, less cash
acquired
|
—
|
65.1
|
Investment in and
advances to unconsolidated affiliates
|
912.0
|
1,658.4
|
Investment in financing
receivables
|
665.1
|
—
|
NGHC expenditures not
funded by Air Products' equity(A)
|
(979.1)
|
—
|
Capital
expenditures
|
$5,224.4
|
$4,650.0
|
|
(A)
|
Reflects the portion of
"Additions to plant and equipment, including long-term deposits"
that is associated with NGHC, less our approximate cash investment
in the joint venture.
|
Outlook for Investing Activities
It is not possible, without unreasonable efforts, to reconcile
our forecasted capital expenditures to future cash used for
investing activities because we are unable to identify the timing
or occurrence of our future investment activity, which is driven by
our assessment of competing opportunities at the time we enter into
transactions. These decisions, either individually or in the
aggregate, could have a significant effect on our cash used for
investing activities.
We expect capital expenditures for fiscal year 2024 to be
$5.0 billion to $5.5 billion.
OUTLOOK
The guidance provided below is on an adjusted continuing
operations basis and is compared to adjusted historical diluted EPS
attributable to Air Products. These adjusted measures exclude the
impact of certain items that we believe are not representative of
our underlying business performance, such as the non-service
components of net periodic benefit/cost for our defined benefit
pension plans, the incurrence of costs for business, asset, and
cost reduction actions and impairment charges, or the recognition
of gains or losses on certain disclosed items. The per share impact
for each of our non-GAAP adjustments is calculated independently
and may not sum to total adjusted diluted EPS due to rounding.
It is not possible, without unreasonable efforts, to identify
the timing or occurrence of similar future events or the potential
for other transactions that may impact future GAAP EPS.
Furthermore, it is not possible to identify the potential
significance of these events in advance; however, any of these
events, if they were to occur, could have a significant effect on
our future GAAP EPS. Accordingly, management is unable to fully
reconcile, without unreasonable efforts, our forecasted range of
adjusted EPS on a continuing operations basis to a comparable GAAP
range.
|
|
|
|
Diluted
EPS
|
|
Q1
|
Full Year
|
2023
Diluted EPS
|
$2.57
|
$10.30
|
Business and asset
actions
|
—
|
0.92
|
Non-service pension
cost, net
|
0.07
|
0.29
|
2023
Adjusted Diluted EPS
|
$2.64
|
$11.51
|
2024
Adjusted Diluted EPS Outlook
|
$2.90–$3.05
|
$12.80–$13.10
|
$ Change
|
0.26–0.41
|
1.29–1.59
|
% Change
|
10%–16%
|
11%–14%
|
View original
content:https://www.prnewswire.com/news-releases/air-products-reports-fiscal-2023-fourth-quarter-gaap-eps-of-3-08-and-adjusted-eps-of-3-15--301979860.html
SOURCE Air Products