Air Products Reports 2nd-Qtr Adjusted Earnings of $1.92; Beats Estimate

Air Products and Chemicals Inc., a maker of industrial gases, reported second-quarter adjusted earnings per share of $1.92 as sales and pricing improved. The Allentown, Pennsylvania-based company also increased its earnings forecast.

The earnings per share beat the $1.87 average analyst estimate, as compiled by MarketWatch. Analysts estimates usually exclude adjustments for one-time items.

Chief Executive Seifi Ghasemi said “… we are forging a new path for growth through successful execution of world-scale projects. As a result, we remain confident that we will continue to deliver on our commitments.”

Sales rose one percent from the year-ago quarter to $2.2 billion. Foreign currency translations reduced reported sales by four percent, while a contract change in India lowered sales by two percent.

Air Products raised its full-year fiscal 2019 adjusted EPS forecast from $8.05 to $8.30 to a $8.15 to $8.30 per share. For its third quarter, Air Products expects adjusted EPS of $2.10 to $2.15 per share, up eight to 10 percent over the year-ago quarter.

Air Products forecasts 2019 capital expenditures of $2.4 billion to $2.5 billion.

Based on Generally Accepted Accounting Principles, net income from continuing operations was $421 million and GAAP diluted EPS from continuing operations was $1.90 in the second fiscal quarter ended March 31. These results include a two-cent per share cost from a pension settlement, Air Products said in a statement distributed by PRNewswire.

On a non-GAAP basis, quarterly adjusted net income from continuing operations was $425 million, up 13 percent over the year-ago quarter, resulting in adjusted diluted EPS from continuing operations of $1.92.

The company also reported a record adjusted EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization) margin of 37.7 percent. EBITDA is not a GAAP measure, but is used as a measure of cash flow from operations to compare companies that operate in different countries, have different capital structures or takeover histories.

Air Products shares closed at $196.67 yesterday. The shares rose 2.2 percent in early trading today to $201.00, according to yahoo! Finance.