gasworld Business Intelligence provides you with the latest analysis of Air Products’ Q1 2016 earnings report.
Headlines
- Total reported sales again down -6% YoY, slower decline than previous quarter, at $2.27Bn.
- Operating Income at $532m in Q1 drives growth to over +20% YoY, its best performance in nearly 5 years.
- Operating margin at over 23% continued improving trend of last 2 years and was up 500bp YoY and reached its highest rate in over 25 years. Helped by lower energy cost pass-through.
- Equity Affiliates Income (highest amongst peers) virtually flat YoY.
- Selling & Admin costs down -14% YoY reflecting recent actions while Cost of Sales were down over -10%.
- Focus on EBITDA reflected in +12% growth YoY in CYQ1 and 560bp improvement in EBITDA margin to to over 35% of sales.
- Reported ROCE up 200bp at 13%.
- Free cash flow more than doubled YoY in Q1 due to lower growth capex.
- EPS up +17% YoY in first quarter of CY2016.
- Proceeding on schedule with spin off Materials Technoloies business during FY2016.
- Announced exit from UK Waste for Energy project with $946m charge in Q1.
- EPS outlook for FY2016 raised at $7.40-7.55 (up +12-14% vs FY2015).
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