Air Products and Chemicals, Inc. (APD) has reported 14.37 percent rise in profit for the quarter ended Sep. 30, 2016. The company has earned $394 million, or $1.80 a share in the quarter, compared with $344.50 million, or $1.58 a share for the same period last year.
Revenue during the quarter went up marginally by 0.56 percent to $2,463 million from $2,449.40 million in the previous year period. Gross margin for the quarter expanded 230 basis points over the previous year period to 33.06 percent. Total expenses were 77.79 percent of quarterly revenues, down from 80.64 percent for the same period last year. This has led to an improvement of 284 basis points in operating margin to 22.21 percent.
Operating income for the quarter was $547 million, compared with $474.30 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at $854.70 million compared with $787.50 million in the prior year period. At the same time, adjusted EBITDA margin improved 255 basis points in the quarter to 34.70 percent from 32.15 percent in the last year period.
Seifi Ghasemi, chairman, president and chief executive officer, said, "The people of Air Products continually strive to be the best in the industrial gases industry, always looking for improvement opportunities and staying focused on what they can control. They delivered again, with our ninth consecutive quarter of double-digit adjusted earnings growth and improved margins across our segments."
Operating cash flow improves
Air Products and Chemicals, Inc. has generated cash of $2,707.40 million from operating activities during the year, up 10.67 percent or $261 million, when compared with the last year.
The company has spent $972 million cash to meet investing activities during the year as against cash outgo of $1,250.50 million in the last year. It has incurred net capital expenditure of $970.30 million on net basis during the year, down 20.11 percent or $244.30 million from year ago.
The company has spent $271.10 million cash to carry out financing activities during the year as against cash outgo of $945.40 million in the last year period.
Cash and cash equivalents stood at $1,501.30 million as on Sep. 30, 2016, up 627.37 percent or $1,294.90 million from $206.40 million on Sep. 30, 2015.
Debt moves up
Air Products and Chemicals, Inc. has witnessed an increase in total debt over the last one year. It stood at $6,225.20 million as on Sep. 30, 2016, up 5.89 percent or $346.20 million from $5,879 million on Sep. 30, 2015. Total debt was 34.48 percent of total assets as on Sep. 30, 2016, compared with 33.71 percent on Sep. 30, 2015. Debt to equity ratio was at 0.86 as on Sep. 30, 2016, up from 0.80 as on Sep. 30, 2015. Interest coverage ratio deteriorated to 16.78 for the quarter from 20.80 for the same period last year.
