LEHIGH VALLEY, Pa.,
Nov. 11, 2020 /PRNewswire/ --
Fiscal 2020 (comparisons versus prior year):
- GAAP EPS of $8.55, up eight
percent, including an estimated $0.60-$0.65
negative impact from COVID-19; GAAP net income of $1,931 million, up seven percent; and GAAP net
income margin of 21.8 percent, up 150 basis points
- Adjusted EPS* of $8.38, up two
percent, including an estimated $0.60-$0.65
negative impact from COVID-19; adjusted EBITDA margin* of 40.9
percent, up 200 basis points
Q4 FY20 (comparisons versus prior year):
- GAAP EPS of $2.19, down four
percent, including an estimated $0.15-$0.20
negative impact from COVID-19; GAAP net income of $495 million, down five percent; and GAAP net
income margin of 21.3 percent, down 140 basis points
- Adjusted EPS* of $2.19, down four
percent, including an estimated $0.15-$0.20
negative impact from COVID-19; adjusted EBITDA margin* of 40.4
percent, down 150 basis points
Fiscal 2020 Highlights
- Demonstrated strength, character and compassion during
COVID-19: supported the talented, dedicated Air Products workforce;
kept global plants running and supplied critical products; won
significant new growth projects worldwide; supported local
communities
- Announced $7 billion NEOM
project, which will enable Air Products to supply carbon-free
hydrogen to power buses and trucks around the world by 2025 and
eliminate three million tons per year ("TPY") of carbon dioxide
("CO₂") emissions and eliminate smog-forming emissions and other
pollutants from the equivalent of over 700,000 cars
- Signed long-term on-site contract for world-scale
coal-to-methanol production facility in Indonesia, supporting energy independence and
enabling the production of nearly two million TPY of methanol
- Announced additional large-scale projects and acquisitions:
largest-ever U.S. investment in Gulf Coast Ammonia project
(Texas City, Texas); completed
acquisition of five operating U.S. hydrogen plants from and
supplied hydrogen to PBF Energy (California and Delaware); brought steam methane reformer and
cold box onstream (Geismar,
Louisiana) supplying products to the Gulf Coast pipeline
network; began construction of three nitrogen plants to condition
imported natural gas for Gasunie national energy project
(Groningen, Netherlands); won
on-site supply contracts with next-generation electronics
manufacturers in China and
Malaysia
- Selected to supply world-leading LNG process technology and
equipment for Mozambique's first
onshore LNG project; Qatargas' massive LNG production expansion
project in Ras Laffan, State of
Qatar; and Sonatrach's GL1Z LNG facility in Arzew,
Algeria
- Executed successful debt offering of about US$5 billion (US$3.8
billion and €1.0 billion), supporting significant
opportunities to invest in high-return industrial gas projects
- Raised dividend more than 15 percent to $1.34 per share per quarter, the largest per
share dividend increase in the company's history
- Set new sustainability goals aligned with Air Products'
business strategy and higher purpose to reduce CO2
emissions intensity (kg CO2/MM BTU) by one-third by the
year 2030 from a 2015 baseline; achieve at least 28 percent female
representation in the professional and managerial population
globally, and at least 20 percent minority representation in that
same population in the United
States by 2025 from a 2020 baseline
#Earnings per share is calculated and
presented on a diluted basis from continuing operations and
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 a
reconciliation of GAAP to non-GAAP historical results can be found
below.
Air Products (NYSE: APD) today reported fiscal year 2020
results, including GAAP EPS from continuing operations of
$8.55, up eight percent over the
prior year, as higher pricing helped to overcome an
estimated $0.60-$0.65 per share
negative impact from COVID-19. GAAP net income of $1,931 million was up seven percent on higher
pricing. GAAP net income margin of 21.8 percent was up 150 basis
points.
For the year, on a non-GAAP basis, adjusted EPS from continuing
operations of $8.38 increased two
percent over the prior year, as higher pricing helped to overcome
an estimated $0.60-$0.65 per share negative impact from COVID-19.
Adjusted EBITDA of $3.6 billion was
up four percent on higher pricing, and adjusted EBITDA margin of
40.9 percent was up 200 basis points.
Full-year sales of $8.9 billion
decreased one percent from the prior year, as three percent higher
pricing and two percent higher volumes were more than offset by
four percent unfavorable energy pass-through, one percent
unfavorable currency and one percent from a contract modification
to a tolling agreement in India.
The volume growth was primarily driven by acquisitions and higher
sale-of-equipment activities, which more than offset the negative
impact from COVID-19.
Fiscal Fourth Quarter Results (Q4FY20)
For its fiscal fourth quarter ended September 30, 2020, Air Products reported GAAP
EPS from continuing operations of $2.19, down four percent; GAAP net income of
$495 million, down five percent,
primarily driven by lower volumes; and GAAP net income margin of
21.3 percent, down 140 basis points, each versus prior year.
For the fiscal fourth quarter, on a non-GAAP basis, adjusted EPS
from continuing operations of $2.19
was down four percent; adjusted EBITDA of $938 million was down two percent, primarily
driven by lower volumes; and adjusted EBITDA margin of 40.4 percent
was down 150 basis points, each versus prior year.
Fourth quarter sales of $2.3
billion increased two percent, as two percent higher pricing
and one percent favorable currency more than offset one percent
lower energy pass-through.
Commenting on the results, Air Products' Chairman, President and
Chief Executive Officer Seifi
Ghasemi said, "Despite the challenging COVID-19
environment, the Air Products team around the world demonstrated
its commitment by keeping our plants running, supplying customers
with essential products, and improving our profitability.
Meanwhile, our existing on-site business—which represents more than
half of our sales—continued to deliver stable cash flow. I would
like to thank all of our more than 19,000 employees for their
unwavering commitment to keep Air Products operating successfully
during these difficult times, which we expect to continue during
2021. We were proud to announce landmark gasification and hydrogen
for mobility megaprojects to meet the world's increasing energy
needs and move us all towards a better future. With our continued
focus on creating shareholder value, we also increased our dividend
for the 38th consecutive year,
representing the largest per-share dividend increase in Air
Products' 80-year history."
Fiscal Fourth Quarter Results by Business
Segment
- Industrial Gases - Americas sales of $912 million decreased three percent from the
prior year. Three percent lower volumes, primarily due to lower
merchant demand impacts from COVID-19, one percent unfavorable
currency and one percent lower energy pass-through were partially
offset by two percent higher pricing. Operating income of
$239 million decreased eight percent,
as higher pricing was more than offset by lower volumes and higher
planned maintenance. Operating margin of 26.2 percent decreased 160
basis points. Adjusted EBITDA of $411
million was flat, as higher pricing and a hydrogen
acquisition were offset by lower volumes and higher planned
maintenance activities. Adjusted EBITDA margin of 45.0 percent
increased 110 basis points.
Sequentially, sales increased seven percent on four percent higher
volumes, two percent favorable energy pass-through and one percent
higher pricing.
- Industrial Gases - EMEA sales of $505 million increased three percent over
the prior year. Volumes were flat despite lower merchant demand
from COVID-19. Two percent higher pricing and four percent
favorable currency more than offset three percent lower energy
pass-through. Operating income of $123
million increased two percent, primarily due to higher
pricing and favorable currency but partially offset by lower
volumes and increased costs, and operating margin of 24.4 percent
decreased 30 basis points. Adjusted EBITDA of $200 million increased four percent, primarily
due to higher pricing and favorable currency, partially offset by
lower volumes and increased costs. Adjusted EBITDA margin of
39.6 percent increased 10 basis points.
Sequentially, sales increased 18 percent on 11 percent higher
volumes, driven by COVID-19-related recovery in the merchant
business and acquisitions, six percent favorable currency, and one
percent higher energy pass-through.
- Industrial Gases - Asia sales of $714 million decreased two percent from the prior
year. Volumes decreased five percent, primarily due to continuing
adverse effects of COVID-19, the impact of a customer outage, and
the end of a short-term contract that contributed to the prior
year. Pricing increased two percent, with higher pricing across
most major product lines. Operating income of $211 million decreased nine percent, primarily
due to the lower volume, and operating margin of 29.5 percent
decreased 210 basis points. Adjusted EBITDA of $330 million decreased seven percent, primarily
due to lower volume, and adjusted EBITDA margin of 46.3 percent
decreased 200 basis points.
Sequentially, sales increased nine percent on seven percent higher
volumes from new plants and base business recovery, and two percent
favorable currency.
Ghasemi added, "Despite significant uncertainty in the global
economy and ongoing challenges from COVID-19, we continue to
deliver value through our stable business model, financial
position, exciting growth opportunities, and the unwavering
commitment and discipline of our people. Around the world, the
energy transition is a focus for economic recovery, and our
expertise, technology and people put Air Products at the heart of
providing sustainable energy and environmental solutions. As we put
our higher purpose into action, including our focus on
sustainability and diversity, we continue to stand together and
work together to make a difference."
New Accounting Guidance
Effective October 1, 2019, Air
Products adopted accounting standards pertaining to leases and
hedging activities. In accordance with the new lease guidance, we
recorded lease liabilities and right-of-use assets on our
consolidated balance sheets for operating leases where we are the
lessee. In adopting the new hedging guidance, we presented the
impacts of excluded components from our cash flow hedges on
intercompany loans in other non-operating income (expense),
net. In the prior year, these impacts were included in
interest expense. The adoption of these accounting standards did
not have a significant impact on the Company's net income in fiscal
2020 or the fourth quarter of fiscal 2020.
Earnings Teleconference
Access the Q4 earnings teleconference scheduled for 10:00 a.m. Eastern Time on November 11, 2020
by calling 323-794-2093 and entering passcode 5106187 or access 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 80 years. Focused on serving energy,
environment and emerging markets, the Company provides essential
industrial gases, related equipment and applications expertise to
customers in dozens of industries, including refining, chemical,
metals, electronics, manufacturing, and food and beverage. Air
Products is also the global leader in the supply of liquefied
natural gas process technology and equipment. The Company develops,
engineers, builds, owns and operates some of the world's largest
industrial gas projects, including: gasification projects that
sustainably convert abundant natural resources into syngas for the
production of high-value power, fuels and chemicals; carbon capture
projects; and world-scale carbon-free hydrogen projects supporting
global transportation and the energy transition.
The Company had fiscal 2020 sales of $8.9
billion from operations in 50 countries and has a current
market capitalization of about $65
billion, making it the largest American chemical company by
market capitalization. More than 19,000 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 address the
challenges facing customers, communities, and the world. For more
information, visit www.airproducts.com or follow us on LinkedIn,
Twitter, 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 guidance, business
outlook and investment opportunities. These 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: the duration and impacts of the novel
coronavirus ("COVID-19") global pandemic and efforts to contain its
transmission, including the effect of these factors on our
business, our customers, economic conditions and markets generally;
changes in global or regional economic conditions, supply and
demand dynamics in market segments we serve, or in the financial
markets that may affect the availability and terms on which we may
obtain financing; 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, contract
terminations or customer cancellations or postponement of projects
and sales; future financial and operating performance of major
customers and joint venture partners; our ability to develop,
implement, and operate new technologies; our ability to execute the
projects in our backlog; our ability to develop and operate large
scale and technically complex projects, including gasification
projects; tariffs, economic sanctions and regulatory activities in
jurisdictions in which we and our affiliates and joint ventures
operate; the impact of environmental, tax or other legislation, as
well as regulations affecting our business and related compliance
requirements, including legislation or regulations related to
global climate change; changes in tax rates and other changes in
tax law; 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;
catastrophic events, such as natural disasters, public health
crises, acts of war, 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 interest
rates and foreign currency exchange rates from those currently
anticipated; damage to facilities, pipelines or delivery systems,
including those we own or operate for third parties; availability
and cost of raw materials; the success of productivity and
operational improvement programs; and other risk factors described
in the Company's Form 10-K for its fiscal year ended September 30, 2019 and Quarterly Report on Form
10-Q for the period ended June 30,
2020. Except as required by law, the Company disclaims any
obligation or undertaking to update or revise any forward-looking
statements contained herein to reflect any change in the
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
dollars, except for share and per share data)
|
2020
|
2019
|
2020
|
2019
|
Sales
|
$2,320.1
|
|
$2,283.2
|
|
$8,856.3
|
|
$8,918.9
|
|
Cost of
sales
|
1,566.5
|
|
1,490.8
|
|
5,858.1
|
|
5,975.5
|
|
Facility
closure
|
—
|
|
—
|
|
—
|
|
29.0
|
|
Selling and
administrative
|
195.6
|
|
181.9
|
|
775.9
|
|
750.0
|
|
Research and
development
|
27.1
|
|
22.9
|
|
83.9
|
|
72.9
|
|
Cost reduction
actions
|
—
|
|
—
|
|
—
|
|
25.5
|
|
Gain on exchange of
equity affiliate investments
|
—
|
|
—
|
|
—
|
|
29.1
|
|
Company headquarters
relocation income (expense)
|
—
|
|
—
|
|
33.8
|
|
—
|
|
Other income
(expense), net
|
29.3
|
|
15.6
|
|
65.4
|
|
49.3
|
|
Operating
Income
|
560.2
|
|
603.2
|
|
2,237.6
|
|
2,144.4
|
|
Equity affiliates'
income
|
67.2
|
|
59.9
|
|
264.8
|
|
215.4
|
|
Interest
expense
|
39.2
|
|
30.1
|
|
109.3
|
|
137.0
|
|
Other non-operating
income (expense), net
|
6.4
|
|
16.9
|
|
30.7
|
|
66.7
|
|
Income From
Continuing Operations Before Taxes
|
594.6
|
|
649.9
|
|
2,423.8
|
|
2,289.5
|
|
Income tax
provision
|
99.9
|
|
131.2
|
|
478.4
|
|
480.1
|
|
Income From
Continuing Operations
|
494.7
|
|
518.7
|
|
1,945.4
|
|
1,809.4
|
|
Loss from
discontinued operations, net of tax
|
—
|
|
—
|
|
(14.3)
|
|
—
|
|
Net
Income
|
494.7
|
|
518.7
|
|
1,931.1
|
|
1,809.4
|
|
Net income
attributable to noncontrolling interests of continuing
operations
|
7.9
|
|
15.5
|
|
44.4
|
|
49.4
|
|
Net Income
Attributable to Air Products
|
$486.8
|
|
$503.2
|
|
$1,886.7
|
|
$1,760.0
|
|
|
|
|
|
|
Net Income
Attributable to Air Products
|
|
|
|
|
Net income from
continuing operations
|
$486.8
|
|
$503.2
|
|
$1,901.0
|
|
$1,760.0
|
|
Net loss from
discontinued operations
|
—
|
|
—
|
|
(14.3)
|
|
—
|
|
Net Income
Attributable to Air Products
|
$486.8
|
|
$503.2
|
|
$1,886.7
|
|
$1,760.0
|
|
|
|
|
|
|
Per Share
Data*
|
|
|
|
|
Basic EPS from
continuing operations
|
$2.20
|
|
$2.28
|
|
$8.59
|
|
$7.99
|
|
Basic EPS from
discontinued operations
|
—
|
|
—
|
|
(0.06)
|
|
—
|
|
Basic EPS
Attributable to Air Products
|
$2.20
|
|
$2.28
|
|
$8.53
|
|
$7.99
|
|
Diluted EPS from
continuing operations
|
$2.19
|
|
$2.27
|
|
$8.55
|
|
$7.94
|
|
Diluted EPS from
discontinued operations
|
—
|
|
—
|
|
(0.06)
|
|
—
|
|
Diluted EPS
Attributable to Air Products
|
$2.19
|
|
$2.27
|
|
$8.49
|
|
$7.94
|
|
|
|
|
|
|
Weighted Average
Common Shares (in millions)
|
|
|
|
|
Basic
|
221.3
|
|
220.7
|
|
221.2
|
|
220.3
|
|
Diluted
|
222.6
|
|
222.1
|
|
222.3
|
|
221.6
|
|
|
*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
dollars)
|
2020
|
2019
|
Assets
|
|
|
Current
Assets
|
|
|
Cash and cash
items
|
$5,253.0
|
|
$2,248.7
|
|
Short-term
investments
|
1,104.9
|
|
166.0
|
|
Trade receivables,
net
|
1,274.8
|
|
1,260.2
|
|
Inventories
|
404.8
|
|
388.3
|
|
Prepaid
expenses
|
164.5
|
|
77.4
|
|
Other receivables and
current assets
|
482.9
|
|
477.7
|
|
Total Current
Assets
|
8,684.9
|
|
4,618.3
|
|
Investment in net
assets of and advances to equity affiliates
|
1,432.2
|
|
1,276.2
|
|
Plant and equipment,
at cost
|
25,176.2
|
|
22,333.7
|
|
Less: accumulated
depreciation
|
13,211.5
|
|
11,996.1
|
|
Plant and equipment,
net
|
11,964.7
|
|
10,337.6
|
|
Goodwill,
net
|
891.5
|
|
797.1
|
|
Intangible assets,
net
|
435.8
|
|
419.5
|
|
Noncurrent lease
receivables
|
816.3
|
|
890.0
|
|
Other noncurrent
assets
|
943.1
|
|
604.1
|
|
Total Noncurrent
Assets
|
16,483.6
|
|
14,324.5
|
|
Total
Assets
|
$25,168.5
|
|
$18,942.8
|
|
Liabilities and
Equity
|
|
|
Current
Liabilities
|
|
|
Payables and accrued
liabilities
|
$1,833.2
|
|
$1,635.7
|
|
Accrued income
taxes
|
105.8
|
|
86.6
|
|
Short-term
borrowings
|
7.7
|
|
58.2
|
|
Current portion of
long-term debt
|
470.0
|
|
40.4
|
|
Total Current
Liabilities
|
2,416.7
|
|
1,820.9
|
|
Long-term
debt
|
7,132.9
|
|
2,907.3
|
|
Long-term debt –
related party
|
297.2
|
|
320.1
|
|
Other noncurrent
liabilities
|
1,916.0
|
|
1,712.4
|
|
Deferred income
taxes
|
962.6
|
|
793.8
|
|
Total Noncurrent
Liabilities
|
10,308.7
|
|
5,733.6
|
|
Total
Liabilities
|
12,725.4
|
|
7,554.5
|
|
Air Products
Shareholders' Equity
|
12,079.8
|
|
11,053.6
|
|
Noncontrolling
Interests
|
363.3
|
|
334.7
|
|
Total
Equity
|
12,443.1
|
|
11,388.3
|
|
Total Liabilities
and Equity
|
$25,168.5
|
|
$18,942.8
|
|
AIR PRODUCTS AND
CHEMICALS, INC. and Subsidiaries CONSOLIDATED STATEMENTS
OF CASH FLOWS (Unaudited)
|
|
Twelve Months
Ended
|
|
30
September
|
(Millions of
dollars)
|
2020
|
2019
|
Operating
Activities
|
|
|
Net income
|
$1,931.1
|
|
$1,809.4
|
|
Less: Net income
attributable to noncontrolling interests of continuing
operations
|
44.4
|
|
49.4
|
|
Net income
attributable to Air Products
|
1,886.7
|
|
1,760.0
|
|
Loss from
discontinued operations
|
14.3
|
|
—
|
|
Income from
continuing operations attributable to Air Products
|
1,901.0
|
|
1,760.0
|
|
Adjustments to
reconcile income to cash provided by operating
activities:
|
|
|
Depreciation and
amortization
|
1,185.0
|
|
1,082.8
|
|
Deferred income
taxes
|
165.0
|
|
57.6
|
|
Tax reform
repatriation
|
—
|
|
49.4
|
|
Facility
closure
|
—
|
|
29.0
|
|
Undistributed
(earnings) losses of unconsolidated affiliates
|
(161.9)
|
|
(75.8)
|
|
Gain on sale of assets
and investments
|
(45.8)
|
|
(24.2)
|
|
Share-based
compensation
|
53.5
|
|
41.2
|
|
Noncurrent lease
receivables
|
91.6
|
|
94.6
|
|
Other
adjustments
|
116.4
|
|
(19.4)
|
|
Working capital
changes that provided (used) cash, excluding effects of
acquisitions:
|
|
|
Trade
receivables
|
43.2
|
|
(69.0)
|
|
Inventories
|
(5.2)
|
|
(3.0)
|
|
Other
receivables
|
84.4
|
|
79.8
|
|
Payables and accrued
liabilities
|
(31.9)
|
|
(41.8)
|
|
Other working
capital
|
(130.6)
|
|
8.7
|
|
Cash Provided by
Operating Activities
|
3,264.7
|
|
2,969.9
|
|
Investing
Activities
|
|
|
Additions to plant
and equipment, including long-term deposits
|
(2,509.0)
|
|
(1,989.7)
|
|
Acquisitions, less
cash acquired
|
(183.3)
|
|
(123.2)
|
|
Investment in and
advances to unconsolidated affiliates
|
(24.4)
|
|
(15.7)
|
|
Proceeds from sale of
assets and investments
|
80.3
|
|
11.1
|
|
Purchases of
investments
|
(2,865.5)
|
|
(172.1)
|
|
Proceeds from
investments
|
1,938.0
|
|
190.5
|
|
Other investing
activities
|
3.9
|
|
(14.3)
|
|
Cash Used for
Investing Activities
|
(3,560.0)
|
|
(2,113.4)
|
|
Financing
Activities
|
|
|
Long-term debt
proceeds
|
4,895.8
|
|
—
|
|
Payments on long-term
debt
|
(406.6)
|
|
(428.6)
|
|
Net decrease in
commercial paper and short-term borrowings
|
(54.9)
|
|
3.9
|
|
Dividends paid to
shareholders
|
(1,103.6)
|
|
(994.0)
|
|
Proceeds from stock
option exercises
|
34.1
|
|
68.1
|
|
Other financing
activities
|
(80.1)
|
|
(19.9)
|
|
Cash Provided by
(Used for) Financing Activities
|
3,284.7
|
|
(1,370.5)
|
|
Effect of Exchange
Rate Changes on Cash
|
14.9
|
|
(28.6)
|
|
Increase (Decrease)
in Cash and Cash Items
|
3,004.3
|
|
(542.6)
|
|
Cash and Cash items -
Beginning of Year
|
2,248.7
|
|
2,791.3
|
|
Cash and Cash
items - End of Period
|
$5,253.0
|
|
$2,248.7
|
|
Supplemental Cash
Flow Information
|
|
|
Cash paid for taxes
(net of refunds)
|
$379.9
|
|
$323.6
|
|
AIR PRODUCTS AND
CHEMICALS, INC. and Subsidiaries SUMMARY BY BUSINESS
SEGMENTS (Unaudited)
|
|
(Millions of
dollars)
|
Industrial
Gases –
Americas
|
Industrial
Gases –
EMEA
|
Industrial
Gases –
Asia
|
Industrial
Gases –
Global
|
Corporate
and other
|
Total
|
|
Three Months Ended
30 September 2020
|
|
|
|
|
|
|
|
Sales
|
$912.2
|
|
$505.2
|
|
$713.7
|
|
$115.4
|
|
$73.6
|
|
$2,320.1
|
|
|
Operating income
(loss)
|
238.9
|
|
123.1
|
|
210.8
|
|
(10.4)
|
|
(2.2)
|
|
560.2
|
|
|
Depreciation and
amortization
|
149.4
|
|
52.6
|
|
100.8
|
|
2.5
|
|
5.2
|
|
310.5
|
|
|
Equity affiliates'
income
|
22.2
|
|
24.6
|
|
18.6
|
|
1.8
|
|
—
|
|
67.2
|
|
|
Three Months Ended
30 September 2019
|
|
|
|
|
|
|
|
Sales
|
$937.3
|
|
$489.3
|
|
$732.0
|
|
$81.1
|
|
$43.5
|
|
$2,283.2
|
|
|
Operating income
(loss)
|
260.7
|
|
120.9
|
|
231.3
|
|
6.2
|
|
(15.9)
|
|
603.2
|
|
|
Depreciation and
amortization
|
128.4
|
|
49.1
|
|
108.8
|
|
2.3
|
|
5.0
|
|
293.6
|
|
|
Equity affiliates'
income
|
22.7
|
|
23.2
|
|
13.5
|
|
0.5
|
|
—
|
|
59.9
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Industrial
Gases –
Americas
|
Industrial
Gases –
EMEA
|
Industrial
Gases –
Asia
|
Industrial
Gases –
Global
|
Corporate
and other
|
Total
|
|
Twelve Months
Ended 30 September 2020
|
|
|
|
|
|
|
|
Sales
|
$3,630.7
|
|
$1,926.3
|
|
$2,716.5
|
|
$364.9
|
|
$217.9
|
|
$8,856.3
|
|
|
Operating income
(loss)
|
1,012.4
|
|
473.3
|
|
870.3
|
|
(40.0)
|
|
(112.2)
|
|
2,203.8
|
|
(A)
|
Depreciation and
amortization
|
559.5
|
|
195.9
|
|
399.4
|
|
9.6
|
|
20.6
|
|
1,185.0
|
|
|
Equity affiliates'
income
|
84.3
|
|
74.8
|
|
61.0
|
|
10.9
|
|
—
|
|
231.0
|
|
(A)
|
Twelve Months
Ended 30 September 2019
|
|
|
|
|
|
|
|
Sales
|
$3,873.5
|
|
$2,002.5
|
|
$2,663.6
|
|
$261.0
|
|
$118.3
|
|
$8,918.9
|
|
|
Operating income
(loss)
|
997.7
|
|
472.4
|
|
864.2
|
|
(11.7)
|
|
(152.8)
|
|
2,169.8
|
|
(A)
|
Depreciation and
amortization
|
505.2
|
|
189.5
|
|
361.5
|
|
8.6
|
|
18.0
|
|
1,082.8
|
|
|
Equity affiliates'
income
|
84.8
|
|
69.0
|
|
58.4
|
|
3.2
|
|
—
|
|
215.4
|
|
(A)
|
|
|
|
|
|
|
|
|
Total
Assets
|
|
|
|
|
|
|
|
30 September
2020
|
$6,610.1
|
|
$3,917.0
|
|
$6,842.9
|
|
$397.8
|
|
$7,400.7
|
|
$25,168.5
|
|
|
30 September
2019
|
5,832.2
|
|
3,250.8
|
|
6,240.6
|
|
325.7
|
|
3,293.5
|
|
18,942.8
|
|
|
|
(A)
Refer to the Reconciliations to Consolidated
Results section below.
|
Reconciliations to Consolidated Results
The table below reconciles full year total operating income
disclosed in the table above to consolidated operating income as
reflected on our consolidated income statements:
|
Twelve Months
Ended
|
|
30
September
|
Operating
Income
|
2020
|
2019
|
Total
|
$2,203.8
|
|
$2,169.8
|
|
Facility
closure
|
—
|
|
(29.0)
|
|
Cost reduction
actions
|
—
|
|
(25.5)
|
|
Gain on exchange of
equity affiliate investments
|
—
|
|
29.1
|
|
Company headquarters
relocation income (expense)
|
33.8
|
|
—
|
|
Consolidated
Operating Income
|
$2,237.6
|
|
$2,144.4
|
|
The table below reconciles full year total equity affiliates'
income disclosed in the table above to consolidated equity
affiliates' income as reflected on our consolidated income
statements:
|
Twelve Months
Ended
|
|
30
September
|
Equity Affiliates'
Income
|
2020
|
2019
|
Total
|
$231.0
|
|
$215.4
|
|
India Finance Act
2020
|
33.8
|
|
—
|
|
Consolidated
Equity Affiliates'
Income
|
$264.8
|
|
$215.4
|
|
RECONCILIATIONS OF NON-GAAP FINANCIAL
MEASURES
(Millions of 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 adjusted effective tax
rate. On a segment basis, these measures include adjusted EBITDA
and adjusted EBITDA margin. In addition to these measures, we also
include certain supplemental non-GAAP financial measures that are
presented below to help the reader understand the impact that our
non-GAAP adjustments have on the calculation of our adjusted
diluted EPS. For each non-GAAP financial measure, we present below
a reconciliation to the most directly comparable financial measure
calculated in accordance with GAAP.
Our non-GAAP financial measures are not meant to be considered
in isolation or as a substitute for the most directly comparable
measure calculated in accordance with GAAP. We believe these
non-GAAP financial measures provide investors, potential investors,
securities analysts, and others with useful information to evaluate
the performance of our business because such 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.
In many cases, non-GAAP financial measures are determined by
adjusting the most directly comparable GAAP measure to exclude
certain disclosed items, or "non-GAAP adjustments," that we believe
are not representative of underlying business performance. For
example, we previously excluded 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. 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.
The tax impact on 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.
NON-GAAP ADJUSTMENTS
There were no non-GAAP adjustments in the fourth quarters of
fiscal years 2020 and 2019. The non-GAAP adjustments for the fiscal
year ended 30 September 2020 are
detailed below. For information related to non-GAAP adjustments for
the fiscal year ended 30 September
2019, refer to Exhibit 99.1 to the Company's Current Report
on Form 8-K dated 7 November
2019.
Company Headquarters Relocation
Income (Expense)
During the second quarter of
fiscal year 2020, we sold property at our current corporate
headquarters located in Trexlertown,
Pennsylvania, for net proceeds of $44.1. The sale was completed in anticipation of
relocating our U.S. headquarters and resulted in a gain of
$33.8 ($25.6 after-tax, or $0.12 per share). This gain is reflected on our
consolidated income statements as "Company headquarters relocation
income (expense)" for the twelve months ended 30 September 2020 and has been excluded from the
results of the Corporate and other segment.
India Finance Act
2020
On 27 March
2020, the Indian government passed Finance Act 2020 (the
"India Finance Act"), which amended rules regarding the taxation of
dividends declared and distributed by Indian companies. Under the
India Finance Act, future dividends declared or distributed by an
Indian company are no longer subject to dividend distribution tax.
Instead, the non-resident recipient will be subject to a
withholding tax.
As a result of the India Finance
Act, we recorded a net benefit of $13.5 ($0.06 per
share) related to our equity affiliate investment in INOX Air
Products Private Limited ("INOX") during the second quarter of
fiscal year 2020. This included a benefit of $33.8 for our share of accumulated dividend
distribution taxes released with respect to INOX. This benefit is
reflected within "Equity affiliates' income" on our consolidated
income statements and has been excluded from the results of our
Industrial Gases – Asia segment.
In addition, our income tax provision reflects an expense of
$20.3 for estimated withholding taxes
that we may incur on future dividends.
Discontinued Operations
During the second quarter of
fiscal year 2020, we completed an updated review of the
environmental remediation status at the Pace facility. This review
resulted in recognition of an expense of $19.0 ($14.3
after-tax, or $0.06 per share) as a
component of loss from discontinued operations.
ADJUSTED DILUTED EPS
The table below provides 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. We believe it is important for
the reader to understand the per share impact of our non-GAAP
adjustments as management does not consider these impacts when
evaluating underlying business performance. The per share impact
for each non-GAAP adjustment was calculated independently and may
not sum to total adjusted diluted EPS due to rounding.
|
|
|
|
|
|
Q4 2020 vs. Q4
2019
|
Operating
Income
|
Equity
Affiliates'
Income
|
Income Tax
Provision
|
Net
Income
Attributable
to Air
Products
|
Diluted
EPS
|
2020 GAAP
|
$560.2
|
|
$67.2
|
|
$99.9
|
|
$486.8
|
|
$2.19
|
|
No non-GAAP
adjustments
|
|
|
|
|
—
|
|
2020 Non-GAAP Measure
("Adjusted")
|
$560.2
|
|
$67.2
|
|
$99.9
|
|
$486.8
|
|
$2.19
|
|
|
|
|
|
|
|
2019 GAAP
|
$603.2
|
|
$59.9
|
|
$131.2
|
|
$503.2
|
|
$2.27
|
|
No non-GAAP
adjustments
|
|
|
|
|
—
|
|
2019 Non-GAAP Measure
("Adjusted")
|
$603.2
|
|
$59.9
|
|
$131.2
|
|
$503.2
|
|
$2.27
|
|
Change GAAP and
Non-GAAP Measure ("Adjusted")
|
|
|
|
($16.4)
|
|
($0.08)
|
|
% Change GAAP and
Non-GAAP Measure ("Adjusted")
|
|
|
|
(3)
|
%
|
(4)
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
FY20 vs.
FY19
|
Operating
Income
|
Equity
Affiliates'
Income
|
Income Tax
Provision
|
Net
Income
Attributable
to Air
Products
|
Diluted
EPS
|
2020 GAAP
|
$2,237.6
|
|
$264.8
|
|
$478.4
|
|
$1,901.0
|
|
$8.55
|
|
2019 GAAP
|
2,144.4
|
|
215.4
|
|
480.1
|
|
1,760.0
|
|
7.94
|
|
Change
GAAP
|
|
|
|
$141.0
|
|
$0.61
|
|
% Change
GAAP
|
|
|
|
8
|
%
|
8
|
%
|
2020 GAAP
|
$2,237.6
|
|
$264.8
|
|
$478.4
|
|
$1,901.0
|
|
$8.55
|
|
Company headquarters
relocation (income) expense
|
(33.8)
|
|
—
|
|
(8.2)
|
|
(25.6)
|
|
(0.12)
|
|
India Finance Act
2020
|
—
|
|
(33.8)
|
|
(20.3)
|
|
(13.5)
|
|
(0.06)
|
|
2020 Non-GAAP Measure
("Adjusted")
|
$2,203.8
|
|
$231.0
|
|
$449.9
|
|
$1,861.9
|
|
$8.38
|
|
2019 GAAP
|
$2,144.4
|
|
$215.4
|
|
$480.1
|
|
$1,760.0
|
|
$7.94
|
|
Facility
closure
|
29.0
|
|
—
|
|
6.9
|
|
22.1
|
|
0.10
|
|
Cost reduction
actions
|
25.5
|
|
—
|
|
6.7
|
|
18.8
|
|
0.08
|
|
Gain on exchange of
equity affiliate investments
|
(29.1)
|
|
—
|
|
—
|
|
(29.1)
|
|
(0.13)
|
|
Pension settlement
loss(A)
|
—
|
|
—
|
|
1.2
|
|
3.8
|
|
0.02
|
|
Tax reform
repatriation
|
—
|
|
—
|
|
12.4
|
|
(12.4)
|
|
(0.06)
|
|
Tax reform adjustment
related to deemed foreign dividends
|
—
|
|
—
|
|
(56.2)
|
|
56.2
|
|
0.26
|
|
2019 Non-GAAP Measure
("Adjusted")
|
$2,169.8
|
|
$215.4
|
|
$451.1
|
|
$1,819.4
|
|
$8.21
|
|
Change Non-GAAP
Measure ("Adjusted")
|
|
|
|
$42.5
|
|
$0.17
|
|
% Change Non-GAAP
Measure ("Adjusted")
|
|
|
|
2
|
%
|
2
|
%
|
|
(A) Before-tax impact of $5.0 is
reflected on the consolidated income statements within "Other
non-operating income (expense), net."
|
ADJUSTED EBITDA AND ADJUSTED EBITDA MARGIN
We define adjusted EBITDA as net income less income (loss) 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.
Below is a presentation of 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
|
|
Total
|
Sales
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2020
|
|
$2,254.7
|
|
|
|
$2,216.3
|
|
|
|
$2,065.2
|
|
|
|
$2,320.1
|
|
|
|
$8,856.3
|
|
2019
|
|
2,224.0
|
|
|
|
2,187.7
|
|
|
|
2,224.0
|
|
|
|
2,283.2
|
|
|
|
8,918.9
|
|
|
|
|
Q1
|
|
Q2
|
|
Q3
|
|
Q4
|
|
FY2020
|
2020
|
$
|
Margin
|
|
$
|
Margin
|
|
$
|
Margin
|
|
$
|
Margin
|
|
$
|
Margin
|
Net income and net
income margin
|
$488.9
|
|
21.7
|
%
|
|
$490.4
|
|
22.1
|
%
|
|
$457.1
|
|
22.1
|
%
|
|
$494.7
|
|
21.3
|
%
|
|
$1,931.1
|
|
21.8
|
%
|
Less: Loss from
discontinued operations, net of tax
|
—
|
|
—
|
%
|
|
(14.3)
|
|
(0.6)
|
%
|
|
—
|
|
—
|
%
|
|
—
|
|
—
|
%
|
|
(14.3)
|
|
(0.2)
|
%
|
Add: Interest
expense
|
18.7
|
|
0.8
|
%
|
|
19.3
|
|
0.9
|
%
|
|
32.1
|
|
1.6
|
%
|
|
39.2
|
|
1.7
|
%
|
|
109.3
|
|
1.2
|
%
|
Less: Other
non-operating income (expense), net
|
9.1
|
|
0.4
|
%
|
|
7.1
|
|
0.3
|
%
|
|
8.1
|
|
0.4
|
%
|
|
6.4
|
|
0.3
|
%
|
|
30.7
|
|
0.3
|
%
|
Add: Income tax
provision
|
120.7
|
|
5.4
|
%
|
|
148.5
|
|
6.7
|
%
|
|
109.3
|
|
5.3
|
%
|
|
99.9
|
|
4.3
|
%
|
|
478.4
|
|
5.4
|
%
|
Add: Depreciation and
amortization
|
289.2
|
|
12.8
|
%
|
|
294.7
|
|
13.3
|
%
|
|
290.6
|
|
14.1
|
%
|
|
310.5
|
|
13.4
|
%
|
|
1,185.0
|
|
13.4
|
%
|
Less: Company
headquarters relocation income (expense)
|
—
|
|
—
|
%
|
|
33.8
|
|
1.5
|
%
|
|
—
|
|
—
|
%
|
|
—
|
|
—
|
%
|
|
33.8
|
|
0.4
|
%
|
Less: India Finance
Act 2020 - equity affiliate income impact
|
—
|
|
—
|
%
|
|
33.8
|
|
1.5
|
%
|
|
—
|
|
—
|
%
|
|
—
|
|
—
|
%
|
|
33.8
|
|
0.4
|
%
|
Adjusted EBITDA
and adjusted EBITDA margin
|
$908.4
|
|
40.3
|
%
|
|
$892.5
|
|
40.3
|
%
|
|
$881.0
|
|
42.7
|
%
|
|
$937.9
|
|
40.4
|
%
|
|
$3,619.8
|
|
40.9
|
%
|
|
|
|
Q1
|
|
Q2
|
|
Q3
|
|
Q4
|
|
FY2019
|
2019
|
$
|
Margin
|
|
$
|
Margin
|
|
$
|
Margin
|
|
$
|
Margin
|
|
$
|
Margin
|
Net income and net
income margin
|
$357.0
|
|
16.0
|
%
|
|
$433.5
|
|
19.8
|
%
|
|
$500.2
|
|
22.5
|
%
|
|
$518.7
|
|
22.7
|
%
|
|
$1,809.4
|
|
20.3
|
%
|
Less: Income (Loss)
from discontinued operations
|
—
|
|
—
|
%
|
|
—
|
|
—
|
%
|
|
—
|
|
—
|
%
|
|
—
|
|
—
|
%
|
|
—
|
|
—
|
%
|
Add: Interest
expense
|
37.3
|
|
1.7
|
%
|
|
35.4
|
|
1.6
|
%
|
|
34.2
|
|
1.5
|
%
|
|
30.1
|
|
1.3
|
%
|
|
137.0
|
|
1.5
|
%
|
Less: Other
non-operating income (expense), net
|
18.5
|
|
0.8
|
%
|
|
13.7
|
|
0.6
|
%
|
|
17.6
|
|
0.8
|
%
|
|
16.9
|
|
0.7
|
%
|
|
66.7
|
|
0.7
|
%
|
Add: Income tax
provision
|
132.1
|
|
5.9
|
%
|
|
107.5
|
|
4.9
|
%
|
|
109.3
|
|
4.9
|
%
|
|
131.2
|
|
5.7
|
%
|
|
480.1
|
|
5.4
|
%
|
Add: Depreciation and
amortization
|
258.0
|
|
11.6
|
%
|
|
262.1
|
|
12.0
|
%
|
|
269.1
|
|
12.1
|
%
|
|
293.6
|
|
12.9
|
%
|
|
1,082.8
|
|
12.1
|
%
|
Add: Facility
closure
|
29.0
|
|
1.3
|
%
|
|
—
|
|
—
|
%
|
|
—
|
|
—
|
%
|
|
—
|
|
—
|
%
|
|
29.0
|
|
0.3
|
%
|
Add: Cost reduction
actions
|
—
|
|
—
|
%
|
|
—
|
|
—
|
%
|
|
25.5
|
|
1.2
|
%
|
|
—
|
|
—
|
%
|
|
25.5
|
|
0.3
|
%
|
Less: Gain on
exchange of equity affiliate investments
|
—
|
|
—
|
%
|
|
—
|
|
—
|
%
|
|
29.1
|
|
1.3
|
%
|
|
—
|
|
—
|
%
|
|
29.1
|
|
0.3
|
%
|
Adjusted EBITDA
and adjusted EBITDA margin
|
$794.9
|
|
35.7
|
%
|
|
$824.8
|
|
37.7
|
%
|
|
$891.6
|
|
40.1
|
%
|
|
$956.7
|
|
41.9
|
%
|
|
$3,468.0
|
|
38.9
|
%
|
|
|
|
Q1
|
|
Q2
|
|
Q3
|
|
Q4
|
|
Total
|
2020 vs.
2019
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Change
GAAP
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income $
change
|
|
$131.9
|
|
|
|
$56.9
|
|
|
|
($43.1)
|
|
|
|
($24.0)
|
|
|
|
$121.7
|
|
Net income %
change
|
|
37
|
%
|
|
|
13
|
%
|
|
|
(9)
|
%
|
|
|
(5)
|
%
|
|
|
7
|
%
|
Net income margin
change
|
|
570
|
bp
|
|
|
230
|
bp
|
|
|
(40)
|
bp
|
|
|
(140)
|
bp
|
|
|
150
|
bp
|
Change
Non-GAAP
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA $
change
|
|
$113.5
|
|
|
|
$67.7
|
|
|
|
($10.6)
|
|
|
|
($18.8)
|
|
|
|
$151.8
|
|
Adjusted EBITDA %
change
|
|
14
|
%
|
|
|
8
|
%
|
|
|
(1)
|
%
|
|
|
(2)
|
%
|
|
|
4
|
%
|
Adjusted EBITDA margin
change
|
|
460
|
bp
|
|
|
260
|
bp
|
|
|
260
|
bp
|
|
|
(150)
|
bp
|
|
|
200
|
bp
|
Adjusted EBITDA and Adjusted EBITDA Margin by Regional
Segment
Below is a presentation of sales and a reconciliation of
operating income and operating margin to adjusted EBITDA and
adjusted EBITDA margin for each regional segment:
Sales
|
Industrial
Gases–
Americas
|
Industrial
Gases–
EMEA
|
Industrial
Gases–
Asia
|
Three Months Ended 30
September 2020
|
$912.2
|
|
$505.2
|
|
$713.7
|
|
Three Months Ended 30
September 2019
|
937.3
|
|
489.3
|
|
732.0
|
|
|
|
|
|
|
|
|
|
|
Industrial
Gases–
Americas
|
Industrial
Gases–
EMEA
|
Industrial
Gases–
Asia
|
GAAP
MEASURES
|
|
|
|
Three Months Ended
30 September 2020
|
|
|
Operating income
(loss)
|
$238.9
|
|
$123.1
|
|
$210.8
|
|
Operating
margin
|
26.2
|
%
|
24.4
|
%
|
29.5
|
%
|
Three Months Ended
30 September 2019
|
|
|
Operating income
(loss)
|
$260.7
|
|
$120.9
|
|
$231.3
|
|
Operating
margin
|
27.8
|
%
|
24.7
|
%
|
31.6
|
%
|
Q4 2020 vs. Q4
2019
|
|
|
|
Operating income $
change
|
($21.8)
|
|
$2.2
|
|
($20.5)
|
|
Operating income %
change
|
(8)
|
%
|
2
|
%
|
(9)
|
%
|
Operating margin
change
|
(160)
|
bp
|
(30)
|
bp
|
(210)
|
bp
|
NON-GAAP
MEASURES
|
|
|
|
Three Months Ended
30 September 2020
|
|
|
Operating income
(loss)
|
$238.9
|
|
$123.1
|
|
$210.8
|
|
Add: Depreciation and
amortization
|
149.4
|
|
52.6
|
|
100.8
|
|
Add: Equity
affiliates' income
|
22.2
|
|
24.6
|
|
18.6
|
|
Adjusted
EBITDA
|
$410.5
|
|
$200.3
|
|
$330.2
|
|
Adjusted EBITDA
margin
|
45.0
|
%
|
39.6
|
%
|
46.3
|
%
|
Three Months Ended
30 September 2019
|
|
|
Operating income
(loss)
|
$260.7
|
|
$120.9
|
|
$231.3
|
|
Add: Depreciation and
amortization
|
128.4
|
|
49.1
|
|
108.8
|
|
Add: Equity
affiliates' income
|
22.7
|
|
23.2
|
|
13.5
|
|
Adjusted
EBITDA
|
$411.8
|
|
$193.2
|
|
$353.6
|
|
Adjusted EBITDA
margin
|
43.9
|
%
|
39.5
|
%
|
48.3
|
%
|
Q4 2020 vs. Q4
2019
|
|
|
|
Adjusted EBITDA $
change
|
($1.3)
|
|
$7.1
|
|
($23.4)
|
|
Adjusted EBITDA %
change
|
—
|
%
|
4
|
%
|
(7)
|
%
|
Adjusted EBITDA
margin change
|
110
|
bp
|
10
|
bp
|
(200)
|
bp
|
ADJUSTED EFFECTIVE TAX RATE
The tax impact of our pre-tax non-GAAP adjustments reflects the
expected current and deferred income tax expense associated with
each adjustment and is primarily dependent upon the statutory tax
rate of the various relevant jurisdictions and the taxability of
the adjustments in those jurisdictions.
|
Effective Tax
Rate
|
|
|
Twelve Months
Ended
30
September
|
|
|
2020
|
2019
|
Income Tax
Provision
|
|
$478.4
|
|
$480.1
|
|
Income From
Continuing Operations Before Taxes
|
|
$2,423.8
|
|
$2,289.5
|
|
Effective Tax
Rate
|
|
19.7
|
%
|
21.0
|
%
|
Income Tax
Provision
|
|
$478.4
|
|
$480.1
|
|
Facility
closure
|
|
—
|
|
6.9
|
|
Cost reduction
actions
|
|
—
|
|
6.7
|
|
Company headquarters
relocation
|
|
(8.2)
|
|
—
|
|
India Finance Act
2020
|
|
(20.3)
|
|
—
|
|
Pension settlement
loss
|
|
—
|
|
1.2
|
|
Tax reform
repatriation
|
|
—
|
|
12.4
|
|
Tax reform adjustment
related to deemed foreign dividends
|
|
—
|
|
(56.2)
|
|
Adjusted Income Tax
Provision
|
|
$449.9
|
|
$451.1
|
|
Income From
Continuing Operations Before Taxes
|
|
$2,423.8
|
|
$2,289.5
|
|
Facility
closure
|
|
—
|
|
29.0
|
|
Cost reduction
actions
|
|
—
|
|
25.5
|
|
Gain on exchange of
equity affiliate investments
|
|
—
|
|
(29.1)
|
|
Company headquarters
relocation (income) expense
|
|
(33.8)
|
|
—
|
|
India Finance Act 2020
- equity affiliate income impact
|
|
(33.8)
|
|
—
|
|
Pension settlement
loss
|
|
—
|
|
5.0
|
|
Adjusted Income From
Continuing Operations Before Taxes
|
|
$2,356.2
|
|
$2,319.9
|
|
Adjusted Effective
Tax Rate
|
|
19.1
|
%
|
19.4
|
%
|
View original
content:http://www.prnewswire.com/news-releases/air-products-reports-fiscal-2020-fourth-quarter-gaap-eps-and-adjusted-eps-of-2-19--301170788.html
SOURCE Air Products