Air Products & Chemicals (APD) has reported an 11.85 percent rise in profit for the quarter ended Dec. 31, 2014. The company has earned $324.60 million, or $1.50 a share in the quarter, compared with $290.20 million, or $1.35 a share for the same period last year. On the other hand, adjusted net income for the quarter stood at $335.10 million, or $1.55 a share compared with $287.10 million or $1.34 a share, a year ago. Revenue during the quarter went up marginally by 0.60 percent to $2,560.80 million from $2,545.50 million in the previous year period. Gross margin for the quarter expanded 180 basis points over the previous year period to 28.50 percent. Total expenses were 83.21 percent of quarterly revenues, down from 84.85 percent for the same period last year. This has led to an improvement of 164 basis points in operating margin to 16.79 percent.
Operating income for the quarter was $430 million, compared with $385.60 million in the previous year period.
However, the adjusted operating income for the quarter stood at $444.50 million compared to $385.60 million in the prior year period. At the same time, adjusted operating margin improved 221 basis points in the quarter to 17.36 percent from 15.15 percent in the last year period.
Commenting on the quarter, Seifi Ghasemi, chairman, president and chief executive officer, said, “We started fiscal 2015 strong, delivering double-digit EBITDA and earnings growth. These results clearly demonstrate our people’s focus on safety, cost, and serving our customers in the new organization. Despite economic uncertainty, we are greatly encouraged by these results, and the team is focused on the actions we can control to deliver on our commitments.”
The capital expenditure forecast for the fiscal year 2015 remains between $1.7 billion and $1.9 billion. Looking ahead, Air Products expects second quarter EPS from continuing operations to be between $1.50 and $1.55 per share, and guidance for continuing operations for fiscal 2015 of $6.35 to $6.55 per share.
Operating cash flow declines
Air Products & Chemicals has generated cash of $486.60 million from operating activities during the quarter, down 10.91 percent or $ 59.60 million, when compared with the last year period. The company has spent $463.20 million cash to meet investing activities during the quarter as against cash outgo of $385.60 million in the last year period. It has incurred capital expenditure of $442.80 million on net basis during the quarter, up 14.83 percent or $57.20 million from year ago period.
The company has spent $111.90 million cash to carry out financing activities during the quarter as against cash outgo of $238.20 million in the last year period. It has made net debt repayment of $37.60 million. It has raised net of $42.10 million by selling common stocks.
Cash and cash equivalents stood at $238.80 million as on Dec. 31, 2014, down 38.39 percent or $148.80 million from $387.60 million on Dec. 31, 2013.
Working capital drops significantly
Air Products & Chemicals has witnessed a decline in the working capital over the last year. It stood at $135.30 million as at Dec. 31, 2014, down 26.83 percent or $49.60 million from $184.90 million on Dec. 31, 2013. Current ratio was at 1.05 as on Dec. 31, 2014, down from 1.06 on Dec. 31, 2013.
Days sales outstanding went down to 26 days for the quarter compared with 56 days for the same period last year.
Days inventory outstanding has decreased to 18 days for the quarter compared with 35 days for the previous year period.
Debt comes down marginally
Air Products & Chemicals has recorded a decline in total debt over the last one year. It stood at $6,089 million as on Dec. 31, 2014, down 1.29 percent or $79.30 million from $6,168.30 million on Dec. 31, 2013. Total debt was 34.53 percent of total assets as on Dec. 31, 2014, compared with 1,591.41 percent on Dec. 31, 2013. Debt to equity ratio was at 0.81 as on Dec. 31, 2014, down from 0.83 as on Dec. 31, 2013. Interest coverage ratio improved to 14.78 for the quarter from 11.58 for the same period last year.
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