LEHIGH VALLEY, Pa.,
Oct. 29, 2015 /PRNewswire/ --
- Quarterly EPS of $1.82* up 10*
percent versus prior year, and fiscal 2015 EPS of $6.57* up 14* percent versus prior year on a
non-GAAP diluted basis, despite significant currency headwinds
- Quarterly adjusted EBITDA margin of 32.1* percent up 350* basis
points, and ROCE of 12.4* percent up 140* basis points versus prior
year
- Quarterly EPS of $1.58 versus
prior year of $0.47, and fiscal 2015
EPS of $5.88 versus prior year of
$4.59 on a continuing operations GAAP
diluted basis
- Announced intention to separate Materials Technologies business
through a tax-free spin-off
- Key wins with major customers, including projects in
Saudi Arabia, Korea, United States
- Fiscal 2016 EPS guidance of $7.25* to
$7.50*, up 10* to 14* percent versus fiscal 2015, and fiscal
2016 first quarter EPS guidance of $1.65* to
$1.75* up six* to 13* percent versus prior year
Air Products (NYSE: APD) today reported net income of
$397* million, up 11* percent versus
prior year, and diluted earnings per share (EPS) of $1.82*, up 10* percent versus prior year for its
fiscal fourth quarter ended September 30,
2015.
On a GAAP basis, net income and diluted EPS from continuing
operations were $345 million and
$1.58, respectively, for the
quarter.
*The results and guidance in this release, unless otherwise
indicated, are based on non-GAAP continuing operations. A
reconciliation of GAAP to non-GAAP results can be found at the end
of this release.
Fourth quarter sales of $2,449
million decreased nine percent from the prior year on seven
percent unfavorable currency and three percent lower energy
pass-through. Volumes were unchanged as Industrial Gases –
Asia growth continued and the LNG
business posted another solid quarter, while Materials Technologies
and Industrial Gases – Americas volumes were lower.
Operating income of $515 million
increased nine percent versus prior year, and operating margin of
21 percent improved 340 basis points, driven by higher pricing and
good cost performance. Adjusted EBITDA of $785 million increased two percent over prior
year, and EBITDA margin of 32.1 percent improved 350 basis points,
reflecting strong operating leverage.
For fiscal 2015, sales of $9.9
billion decreased five percent versus prior year. Underlying
sales increased by three percent on two percent higher volumes,
driven by Industrial Gases – Asia
and Materials Technologies, and one percent higher pricing.
Operating income of $1.9 billion
increased 14 percent, and operating margin of 19 percent improved
310 basis points. Adjusted EBITDA of $3.0
billion improved eight percent and EBITDA margin of 30.1
percent improved 360 basis points. ROCE of 11.3 percent was up 150
basis points.
Commenting on the quarter, Seifi Ghasemi, chairman, president
and chief executive officer, said, "The people of Air Products
excelled again this quarter, delivering significant profit
improvement in spite of increasingly challenging economic
conditions around the globe. Compared to last year, EPS in the
fourth quarter increased 10 percent, EBITDA margins were up 350
basis points to 32.1 percent, and operating margin of 21 percent
was another record. For the year, EPS of $6.57 was above the top of our original guidance
despite a significant currency headwind of about 40 cents. We delivered this performance while
improving safety, completing the most significant organizational
change in Air Products' 75-year history, winning a number of
important projects with major customers around the world, and
announcing the separation of our Materials Technologies business.
We made significant progress on our five-point plan this year, and
this strong performance is a testament to our people's hard work
and their commitment to move Air Products forward."
Fourth Quarter Results by Business Segment:
- Industrial Gases – Americas sales of $902 million decreased 13 percent versus prior
year, as lower energy pass-through reduced sales by nine percent
and currency reduced sales by four percent. Underlying sales were
flat, as two percent higher pricing offset two percent lower
volumes. Operating income of $209
million decreased five percent and adjusted EBITDA of
$330 million decreased three percent,
as unfavorable currency and lower energy pass-through more than
offset the benefits of restructuring actions. Record operating
margin of 23.1 percent improved 190 basis points, and record EBITDA
margin of 36.6 percent improved 370 basis points over prior
year.
- Industrial Gases – Europe,
Middle East, and Africa (EMEA) sales of $460 million declined 12 percent versus last
year, driven by unfavorable currency. Underlying sales were up two
percent, with pricing and volumes each up one percent. Operating
income of $91 million decreased two
percent from the prior year, as strong pricing and cost performance
were offset by unfavorable currency. On a constant currency basis,
operating income was up 11 percent. Record operating margin of 19.7
percent increased 190 basis points, and record EBITDA margin of
32.9 percent increased 220 basis points over the prior year, driven
by the benefits of restructuring actions. Adjusted EBITDA of
$151 million decreased five percent
versus prior year.
- Industrial Gases – Asia
sales of $428 million increased seven
percent versus prior year, as 15 percent volume growth, primarily
from new plants, was partially offset by seven percent unfavorable
currency. Operating income of $104
million increased 44 percent, and operating margin of 24.4
percent improved 620 basis points over prior year due to higher
volumes from the new plants and strong cost performance. Adjusted
EBITDA of $165 million increased 17
percent, and EBITDA margin of 38.5 percent increased 330 basis
points.
- Materials Technologies sales of $490 million decreased 13 percent versus the
prior year as positive pricing of two percent was more than offset
by 11 percent lower volumes, and four percent unfavorable currency.
Electronics Materials underlying sales declined nine percent from
the prior year on significantly lower delivery systems. Excluding
delivery systems, Electronics Materials underlying sales would have
been up 15 percent versus prior year. Performance Materials
underlying sales decreased eight percent from the prior year on
lower volumes. Operating income was $116
million, and operating margin of 23.8 percent was up 160
basis points. Adjusted EBITDA was $140
million, and EBITDA margin of 28.5 percent was up 130 basis
points. For the fiscal year, Materials Technologies sales of
$2,087 million were up one percent,
adjusted EBITDA of $572 million was
up 19 percent, and EBITDA margin of 27.4 percent was up 410 basis
points.
Non-GAAP results for the company exclude a pre-tax charge of
$59 million, or $0.24 per share. Details are provided in the
footnotes to the financial statements.
Outlook
The capital expenditure forecast for fiscal year 2016 is between
$1.5 billion and $1.6 billion.
Air Products expects fiscal 2016 first quarter EPS from
continuing operations to be between $1.65
and $1.75 per share, up six to 13 percent versus prior year,
and fiscal 2016 EPS of $7.25 to $7.50
per share, up 10 to 14 percent over prior year.
Access the Q4 earnings teleconference scheduled for
10:00 a.m. Eastern Time on
October 29 by calling 719-457-2654
and entering passcode 513902, or access the Event
Details page on Air Products' Investor Relations web
site.
About Air Products
Air Products (NYSE:APD) is a world-leading Industrial Gases
company celebrating 75 years of operation. The company's core
Industrial Gases business provides atmospheric and process gases
and related equipment to manufacturing markets, including refining
and petrochemical, metals, electronics, and food and beverage. Air
Products is also the world's leading supplier of liquefied natural
gas process technology and equipment. The company's Materials
Technologies business, which Air Products intends to spin-off by
September 2016, serves the
semiconductor, polyurethanes, cleaning and coatings, and adhesives
industries.
The company had fiscal 2015 sales of $9.9
billion and was ranked number 284 on the Fortune 500 annual
list of public companies. Approximately 20,000 employees in 50
countries strive to make Air Products the world's safest and best
performing Industrial Gases company, providing sustainable
offerings and excellent service to all customers. For more
information, visit www.airproducts.com.
NOTE: 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 and business outlook. These forward-looking statements are
based on management's reasonable expectations and assumptions as of
the date of this release. Actual performance and financial results
may differ materially from projections and estimates expressed in
the forward-looking statements because of many factors not
anticipated by management, including, without limitation, global or
regional economic conditions and supply and demand dynamics in
market segments into which the Company sells; significant
fluctuations in interest rates and foreign currencies from that
currently anticipated; future financial and operating performance
of major customers; unanticipated contract terminations or customer
cancellations or postponement of projects and sales; asset
impairments due to economic conditions or specific events; the
impact of competitive products and pricing; challenges of
implementing new technologies; ability to protect and enforce the
Company's intellectual property rights; unexpected changes in raw
material supply and markets; the impact of price fluctuations in
natural gas and disruptions in markets and the economy due to oil
price volatility; the ability to recover increased energy and raw
material costs from customers; costs and outcomes of litigation or
regulatory investigations; the success of productivity and cost
reduction programs; the timing, impact, and other uncertainties of
future acquisitions or divestitures; political risks, including the
risks of unanticipated government actions; acts of war or
terrorism; the impact of changes in environmental, tax or other
legislation and regulatory activities in jurisdictions in which the
Company and its affiliates operate; and other risk factors
described in the Company's Form 10-K for its fiscal year ended
September 30, 2014. The Company
disclaims any obligation or undertaking to disseminate any updates
or revisions to any forward-looking statements contained in this
release to reflect any change in the Company's assumptions, beliefs
or expectations or any change in events, conditions, or
circumstances upon which any such forward-looking statements are
based.
* Presented below are reconciliations of the reported GAAP
results to the non-GAAP measures.
RECONCILIATION OF NON-GAAP FINANCIAL
MEASURES
(Millions of dollars unless otherwise indicated,
except for share data)
The discussion of fourth quarter and year-to-date results
includes comparisons to non-GAAP financial measures, including
Adjusted EBITDA and non‑GAAP Capital Expenditures. The presentation
of non-GAAP measures is intended to enhance the usefulness of
financial information by providing measures which management uses
internally to evaluate our operating performance and manage our
capital expenditures.
We use non-GAAP measures to assess our operating performance by
excluding certain disclosed items that we believe are not
representative of our underlying business. We believe non-GAAP
financial measures provide investors with meaningful information to
understand our underlying operating results and to analyze
financial and business trends. Non-GAAP financial measures,
including Adjusted EBITDA, should not be viewed in isolation, are
not a substitute for GAAP measures, and have limitations which
include but are not limited to:
- Our measure excludes certain disclosed items, which we do not
consider to be representative of underlying business operations.
However, these disclosed items represent costs (benefits) to the
Company.
- Though not business operating costs, interest expense and
income tax provision represent ongoing costs of the Company.
- Depreciation, amortization, and impairment charges represent
the wear and tear and/or reduction in value of the plant,
equipment, and intangible assets which permit us to manufacture
and/or market our products.
- Other companies may define non-GAAP measures differently than
we do, limiting their usefulness as comparative measures.
A reader may find any one or all of these items important in
evaluating our performance. Management compensates for the
limitations of using non-GAAP financial measures by using them only
to supplement our GAAP results to provide a more complete
understanding of the factors and trends affecting our business. In
evaluating these financial measures, the reader should be aware
that we may incur expenses similar to those eliminated in this
presentation in the future.
CONSOLIDATED
RESULTS
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Continuing
Operations
|
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Q4
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YTD
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Operating
|
|
Operating
|
|
Net
|
|
Diluted
|
|
Operating
|
|
Operating
|
|
Net
|
|
Diluted
|
|
|
Income
|
|
Margin
|
|
Income
|
|
EPS
|
|
Income
|
|
Margin
|
|
Income
|
|
EPS
|
2015 GAAP
|
|
$
|
472.2
|
|
|
|
19.3%
|
|
|
$
|
344.5
|
|
|
$
|
1.58
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|
|
$
|
1,699.1
|
|
|
|
17.2%
|
|
|
$
|
1,277.9
|
|
|
$
|
5.88
|
2014 GAAP
|
|
|
144.1
|
|
|
|
5.4%
|
|
|
|
102.5
|
|
|
|
.47
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|
|
|
1,328.2
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|
|
|
12.7%
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|
|
|
987.1
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|
|
|
4.59
|
Change
GAAP
|
|
$
|
328.1
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|
|
1,390bp
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|
|
$
|
242.0
|
|
|
$
|
1.11
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$
|
370.9
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|
450bp
|
|
|
$
|
290.8
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|
|
$
|
1.29
|
% Change
GAAP
|
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|
228%
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|
|
|
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236%
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236%
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28%
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29%
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28%
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|
|
|
|
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|
|
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|
|
2015 GAAP
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|
$
|
472.2
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|
19.3%
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|
|
$
|
344.5
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|
|
$
|
1.58
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|
$
|
1,699.1
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|
|
|
17.2%
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|
|
$
|
1,277.9
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|
$
|
5.88
|
Business
restructuring and cost reduction
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|
actions (tax impact
$7.2 and $54.5)
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61.7
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|
2.5%
|
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|
54.5
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|
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|
.25
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|
|
|
207.7
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|
|
|
2.1%
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|
153.2
|
|
|
|
.71
|
Pension settlement
loss (tax impact $2.2
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and $7.5)
|
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|
7.0
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|
.3%
|
|
|
|
4.8
|
|
|
|
.02
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|
|
|
21.2
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|
|
.2%
|
|
|
|
13.7
|
|
|
|
.06
|
Business separation
costs
|
|
|
7.5
|
|
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|
.3%
|
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|
|
7.5
|
|
|
|
.03
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|
7.5
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.1%
|
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|
7.5
|
|
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|
.03
|
Gain on previously
held equity interest
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(tax impact
$6.7)
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-
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-%
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-
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-
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(17.9)
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(.2)%
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|
(11.2)
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|
(.05)
|
Gain on land sales
(tax impact $5.3)(A)
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(33.6)
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(1.4)%
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(28.3)
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(.13)
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(33.6)
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(.4)%
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|
(28.3)
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(.13)
|
Loss on early
retirement of debt
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(tax impact
$2.4)(B)
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-
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-%
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14.2
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|
.07
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-
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-%
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|
14.2
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|
.07
|
2015 Non-GAAP
Measure
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|
$
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514.8
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21.0%
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|
$
|
397.2
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$
|
1.82
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|
$
|
1,884.0
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19.0%
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|
$
|
1,427.0
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$
|
6.57
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2014 GAAP
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$
|
144.1
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5.4%
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$
|
102.5
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|
$
|
.47
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$
|
1,328.2
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|
12.7%
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$
|
987.1
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|
$
|
4.59
|
Business
restructuring and cost reduction
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|
actions (tax impact
$4.5)
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12.7
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.4%
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|
8.2
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|
.04
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|
12.7
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|
.1%
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|
8.2
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|
.04
|
Pension settlement
loss (tax impact $1.9)
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|
5.5
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|
.2%
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|
|
3.6
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|
.02
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|
|
|
5.5
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|
.1%
|
|
|
|
3.6
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|
.02
|
Goodwill and
intangible asset
|
|
|
|
|
|
|
|
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|
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|
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|
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|
|
impairment
charge(C)
|
|
|
310.1
|
|
|
|
11.6%
|
|
|
|
275.1
|
|
|
|
1.27
|
|
|
|
310.1
|
|
|
|
3.0%
|
|
|
|
275.1
|
|
|
|
1.27
|
Chilean tax rate
change
|
|
|
-
|
|
|
|
-%
|
|
|
|
20.6
|
|
|
|
.10
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|
-
|
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|
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-%
|
|
|
|
20.6
|
|
|
|
.10
|
Tax election
benefit
|
|
|
-
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-%
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|
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|
(51.6)
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|
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|
(.24)
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|
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|
-
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-%
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|
(51.6)
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|
(.24)
|
2014 Non-GAAP
Measure
|
|
$
|
472.4
|
|
|
|
17.6%
|
|
|
$
|
358.4
|
|
|
$
|
1.66
|
|
|
$
|
1,656.5
|
|
|
|
15.9%
|
|
|
$
|
1,243.0
|
|
|
$
|
5.78
|
|
|
|
|
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|
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|
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|
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|
|
Change Non-GAAP
Measure
|
|
$
|
42.4
|
|
|
|
340bp
|
|
|
$
|
38.8
|
|
|
$
|
.16
|
|
|
$
|
227.5
|
|
|
|
310bp
|
|
|
$
|
184.0
|
|
|
$
|
.79
|
% Change Non-GAAP
Measure
|
|
|
9%
|
|
|
|
|
|
|
|
11%
|
|
|
|
10%
|
|
|
|
14%
|
|
|
|
|
|
|
|
15%
|
|
|
|
14%
|
|
|
|
|
|
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|
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|
(A)Reflected on the consolidated income
statements in "Other income (expense), net."
|
(B)Income
from continuing operations before taxes impact of $16.6.
|
(C)Noncontrolling interests impact of
$33.7 and tax impact of $1.3.
|
|
|
QTD
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
|
|
Operating
|
|
Net
|
|
Diluted
|
|
|
2015 Q4 vs. 2015
Q3
|
|
Income
|
|
Margin
|
|
Income
|
|
EPS
|
|
|
2015 Q4
GAAP
|
|
$
|
472.2
|
|
|
|
19.3%
|
|
|
$
|
344.5
|
|
|
$
|
1.58
|
|
|
2015 Q3
GAAP
|
|
|
422.5
|
|
|
|
17.1%
|
|
|
|
318.8
|
|
|
|
1.47
|
|
|
Change
GAAP
|
|
$
|
49.7
|
|
|
|
220bp
|
|
|
$
|
25.7
|
|
|
$
|
.11
|
|
|
% Change
GAAP
|
|
|
12%
|
|
|
|
|
|
|
|
8%
|
|
|
|
7%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2015 Q4
GAAP
|
|
$
|
472.2
|
|
|
|
19.3%
|
|
|
$
|
344.5
|
|
|
$
|
1.58
|
|
|
Business
restructuring and cost reduction actions (tax impact
$7.2)
|
|
61.7
|
|
|
|
2.5%
|
|
|
|
54.5
|
|
|
|
.25
|
|
|
Pension settlement
loss (tax impact $2.2)
|
|
7.0
|
|
|
|
.3%
|
|
|
|
4.8
|
|
|
|
.02
|
|
|
Business separation
costs
|
|
7.5
|
|
|
|
.3%
|
|
|
|
7.5
|
|
|
|
.03
|
|
|
Gain on land sales
(tax impact $5.3)(A)
|
|
(33.6)
|
|
|
|
(1.4)%
|
|
|
|
(28.3)
|
|
|
|
(.13)
|
|
|
Loss on early
retirement of debt (tax impact $2.4)(B)
|
|
-
|
|
|
|
-%
|
|
|
|
14.2
|
|
|
|
.07
|
|
|
2015 Q4 Non-GAAP
Measure
|
|
$
|
514.8
|
|
|
|
21.0%
|
|
|
$
|
397.2
|
|
|
$
|
1.82
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2015 Q3
GAAP
|
|
$
|
422.5
|
|
|
|
17.1%
|
|
|
$
|
318.8
|
|
|
$
|
1.47
|
|
|
Business
restructuring and cost reduction actions (tax impact
$19.4)
|
|
58.2
|
|
|
|
2.4%
|
|
|
|
38.8
|
|
|
|
.18
|
|
|
Pension settlement
loss (tax impact $.6)
|
|
1.6
|
|
|
|
-%
|
|
|
|
1.0
|
|
|
|
-
|
|
|
2015 Q3 Non-GAAP
Measure
|
|
$
|
482.3
|
|
|
|
19.5%
|
|
|
$
|
358.6
|
|
|
$
|
1.65
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Change Non-GAAP
Measure
|
|
$
|
32.5
|
|
|
|
150bp
|
|
|
$
|
38.6
|
|
|
$
|
.17
|
|
|
% Change Non-GAAP
Measure
|
|
|
7%
|
|
|
|
|
|
|
|
11%
|
|
|
|
10%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(A)Reflected on the consolidated income
statements in "Other income (expense), net."
|
|
|
(B)Income
from continuing operations before taxes impact of $16.6.
|
|
|
OPERATING INCOME – CONSTANT CURRENCY BASIS
Industrial Gases – EMEA
Operating income on a constant currency basis equals current
year GAAP operating income adjusted for prior period average
exchange rates to show the underlying growth rate versus the prior
year.
|
|
Three Months
Ended
|
|
|
|
|
|
|
|
30
September
|
|
|
|
|
|
|
2015
|
|
2014
|
|
|
% Change
|
|
|
Industrial Gases –
EMEA
|
|
|
|
|
|
|
|
|
|
|
|
GAAP Operating
Income
|
$
|
90.8
|
|
$
|
92.8
|
|
|
|
(2)%
|
|
|
Currency
Adjustment
|
|
12.1
|
|
|
-
|
|
|
|
|
|
|
Non-GAAP Constant
Currency Operating Income
|
$
|
102.9
|
|
$
|
92.8
|
|
|
|
11%
|
|
|
ADJUSTED EBITDA
We define Adjusted EBITDA as income from continuing operations
(including noncontrolling interests) excluding certain disclosed
items, which the Company does not believe to be indicative of
underlying business trends, before interest expense, income tax
provision, and depreciation and amortization expense. Adjusted
EBITDA provides a useful metric for management to assess operating
performance.
Below is a reconciliation of Income from Continuing Operations
on a GAAP basis to Adjusted EBITDA:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2015
|
Q1
|
|
|
Q2
|
|
|
Q3
|
|
|
Q4
|
|
|
Total
|
|
Income from
Continuing Operations(A)
|
$
|
337.5
|
|
|
$
|
296.9
|
|
|
$
|
333.2
|
|
|
$
|
350.0
|
|
|
$
|
1,317.6
|
|
Add: Interest
expense
|
|
29.1
|
|
|
|
23.4
|
|
|
|
28.2
|
|
|
|
22.8
|
|
|
|
103.5
|
|
Add: Income tax
provision
|
|
106.5
|
|
|
|
87.1
|
|
|
|
103.5
|
|
|
|
118.8
|
|
|
|
415.9
|
|
Add: Depreciation and
amortization
|
|
235.5
|
|
|
|
233.3
|
|
|
|
233.0
|
|
|
|
234.6
|
|
|
|
936.4
|
|
Add: Business
restructuring and cost reduction actions
|
|
32.4
|
|
|
|
55.4
|
|
|
|
58.2
|
|
|
|
61.7
|
|
|
|
207.7
|
|
Add: Pension
settlement loss
|
|
-
|
|
|
|
12.6
|
|
|
|
1.6
|
|
|
|
7.0
|
|
|
|
21.2
|
|
Add: Business
separation costs
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
7.5
|
|
|
|
7.5
|
|
Less: Gain on
previously held equity interest
|
|
17.9
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
17.9
|
|
Less: Gain on land
sales(B)
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
33.6
|
|
|
|
33.6
|
|
Add: Loss on early
retirement of debt
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
16.6
|
|
|
|
16.6
|
|
Adjusted
EBITDA
|
$
|
723.1
|
|
|
$
|
708.7
|
|
|
$
|
757.7
|
|
|
$
|
785.4
|
|
|
$
|
2,974.9
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2014
|
Q1
|
|
|
Q2
|
|
|
Q3
|
|
|
Q4
|
|
|
Total
|
|
Income from
Continuing Operations(A)
|
$
|
296.0
|
|
|
$
|
291.5
|
|
|
$
|
323.5
|
|
|
$
|
77.5
|
|
|
$
|
988.5
|
|
Add: Interest
expense
|
|
33.3
|
|
|
|
31.5
|
|
|
|
31.3
|
|
|
|
29.0
|
|
|
|
125.1
|
|
Add: Income tax
provision
|
|
94.5
|
|
|
|
92.1
|
|
|
|
102.1
|
|
|
|
77.3
|
(C)
|
|
|
366.0
|
|
Add: Depreciation and
amortization
|
|
234.2
|
|
|
|
229.1
|
|
|
|
239.0
|
|
|
|
254.6
|
|
|
|
956.9
|
|
Add: Business
restructuring and cost reduction actions
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
12.7
|
|
|
|
12.7
|
|
Add: Pension
settlement loss
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
5.5
|
|
|
|
5.5
|
|
Add: Goodwill and
intangible asset impairment charge
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
310.1
|
|
|
|
310.1
|
|
Adjusted
EBITDA
|
$
|
658.0
|
|
|
$
|
644.2
|
|
|
$
|
695.9
|
|
|
$
|
766.7
|
|
|
$
|
2,764.8
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(A)Includes net income attributable to
noncontrolling interests.
|
|
(B)Reflected on the consolidated income
statements in "Other income (expense), net."
|
|
(C)Includes an income tax benefit of $51.6
from the favorable impact of a tax election in a non-U.S.
subsidiary partially offset by $20.6 of income
|
|
tax
expense from Chilean tax reform.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2015 vs.
2014
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA
change
|
$
|
65.1
|
|
|
$
|
64.5
|
|
|
$
|
61.8
|
|
|
$
|
18.7
|
|
|
$
|
210.1
|
|
Adjusted EBITDA %
change
|
|
10
|
%
|
|
10
|
%
|
|
9
|
%
|
|
2
|
%
|
|
|
8
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2015 Q4 vs. 2015
Q3
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA
change
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
27.7
|
|
|
|
|
|
Adjusted EBITDA %
change
|
|
|
|
|
|
|
|
|
|
|
|
4
|
%
|
|
|
|
|
Below is a reconciliation of segment Operating Income to
Adjusted EBITDA:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Industrial
|
|
Industrial
|
|
Industrial
|
|
Industrial
|
|
|
|
|
Energy-
|
|
|
|
|
|
|
|
|
|
|
Gases–
|
|
Gases–
|
|
Gases–
|
|
Gases–
|
|
Materials
|
|
from-
|
|
Corporate
|
|
Segment
|
|
|
|
Americas
|
|
EMEA
|
|
Asia
|
|
Global
|
|
Technologies
|
|
Waste
|
|
and other
|
|
Total
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
30 September 2015
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating income
(loss)
|
$
|
208.7
|
|
$
|
90.8
|
|
$
|
104.4
|
|
$
|
(1.7)
|
|
$
|
116.4
|
|
$
|
(2.3)
|
|
$
|
(1.5)
|
|
$
|
514.8
|
|
Add: Depreciation and
amortization
|
|
106.1
|
|
|
48.6
|
|
|
51.1
|
|
|
2.5
|
|
|
22.8
|
|
|
-
|
|
|
3.5
|
|
|
234.6
|
|
Add: Equity
affiliates' income (loss)
|
|
15.0
|
|
|
12.0
|
|
|
9.4
|
|
|
(1.0)
|
|
|
.6
|
|
|
-
|
|
|
-
|
|
|
36.0
|
|
Adjusted
EBITDA
|
$
|
329.8
|
|
$
|
151.4
|
|
$
|
164.9
|
|
$
|
(.2)
|
|
$
|
139.8
|
|
$
|
(2.3)
|
|
$
|
2.0
|
|
$
|
785.4
|
|
Adjusted EBITDA
margin
|
|
36.6%
|
|
|
32.9%
|
|
|
38.5%
|
|
|
|
|
|
28.5%
|
|
|
|
|
|
|
|
|
32.1%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
30 September 2014
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating income
(loss)
|
$
|
219.6
|
|
$
|
92.8
|
|
$
|
72.7
|
|
$
|
(18.0)
|
|
$
|
124.3
|
|
$
|
(2.8)
|
|
$
|
(16.2)
|
|
$
|
472.4
|
|
Add: Depreciation and
amortization
|
|
105.4
|
|
|
55.4
|
|
|
60.8
|
|
|
2.1
|
|
|
27.4
|
|
|
-
|
|
|
3.5
|
|
|
254.6
|
|
Add: Equity
affiliates' income
|
|
16.0
|
|
|
11.6
|
|
|
7.4
|
|
|
4.1
|
|
|
.6
|
|
|
-
|
|
|
-
|
|
|
39.7
|
|
Adjusted
EBITDA
|
$
|
341.0
|
|
$
|
159.8
|
|
$
|
140.9
|
|
$
|
(11.8)
|
|
$
|
152.3
|
|
$
|
(2.8)
|
|
$
|
(12.7)
|
|
$
|
766.7
|
|
Adjusted EBITDA
margin
|
|
32.9%
|
|
|
30.7%
|
|
|
35.2%
|
|
|
|
|
|
27.2%
|
|
|
|
|
|
|
|
|
28.6%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA
change
|
$
|
(11.2)
|
|
$
|
(8.4)
|
|
$
|
24.0
|
|
$
|
11.6
|
|
$
|
(12.5)
|
|
$
|
.5
|
|
$
|
14.7
|
|
$
|
18.7
|
|
Adjusted EBITDA %
change
|
|
(3)%
|
|
|
(5)%
|
|
|
17%
|
|
|
98%
|
|
|
(8)%
|
|
|
18%
|
|
|
116%
|
|
|
2%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA
margin change
|
|
370bp
|
|
|
220bp
|
|
|
330bp
|
|
|
|
|
|
130bp
|
|
|
|
|
|
|
|
|
350bp
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Twelve Months
Ended 30 September 2015
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating income
(loss)
|
$
|
808.4
|
|
$
|
330.7
|
|
$
|
380.5
|
|
$
|
(51.6)
|
|
$
|
476.7
|
|
$
|
(10.1)
|
|
$
|
(50.6)
|
|
$
|
1,884.0
|
|
Add: Depreciation and
amortization
|
|
416.9
|
|
|
194.3
|
|
|
202.9
|
|
|
16.5
|
|
|
92.8
|
|
|
-
|
|
|
13.0
|
|
|
936.4
|
|
Add: Equity
affiliates' income (loss)
|
|
64.6
|
|
|
42.4
|
|
|
46.1
|
|
|
(.8)
|
|
|
2.2
|
|
|
-
|
|
|
-
|
|
|
154.5
|
|
Adjusted
EBITDA
|
$
|
1,289.9
|
|
$
|
567.4
|
|
$
|
629.5
|
|
$
|
(35.9)
|
|
$
|
571.7
|
|
$
|
(10.1)
|
|
$
|
(37.6)
|
|
$
|
2,974.9
|
|
Adjusted EBITDA
margin
|
|
34.9%
|
|
|
30.4%
|
|
|
38.4%
|
|
|
|
|
|
27.4%
|
|
|
|
|
|
|
|
|
30.1%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Twelve Months
Ended 30 September 2014
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating income
(loss)
|
$
|
762.6
|
|
$
|
351.2
|
|
$
|
310.4
|
|
$
|
(57.3)
|
|
$
|
379.0
|
|
$
|
(12.4)
|
|
$
|
(77.0)
|
|
$
|
1,656.5
|
|
Add: Depreciation and
amortization
|
|
414.4
|
|
|
220.2
|
|
|
205.3
|
|
|
7.1
|
|
|
99.1
|
|
|
-
|
|
|
10.8
|
|
|
956.9
|
|
Add: Equity
affiliates' income
|
|
60.9
|
|
|
44.1
|
|
|
38.0
|
|
|
5.8
|
|
|
2.6
|
|
|
-
|
|
|
-
|
|
|
151.4
|
|
Adjusted
EBITDA
|
$
|
1,237.9
|
|
$
|
615.5
|
|
$
|
553.7
|
|
$
|
(44.4)
|
|
$
|
480.7
|
|
$
|
(12.4)
|
|
$
|
(66.2)
|
|
$
|
2,764.8
|
|
Adjusted EBITDA
margin
|
|
30.4%
|
|
|
28.6%
|
|
|
36.3%
|
|
|
|
|
|
23.3%
|
|
|
|
|
|
|
|
|
26.5%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA
change
|
$
|
52.0
|
|
$
|
(48.1)
|
|
$
|
75.8
|
|
$
|
8.5
|
|
$
|
91.0
|
|
$
|
2.3
|
|
$
|
28.6
|
|
$
|
210.1
|
|
Adjusted EBITDA %
change
|
|
4%
|
|
|
(8)%
|
|
|
14%
|
|
|
19%
|
|
|
19%
|
|
|
19%
|
|
|
43%
|
|
|
8%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA
margin change
|
|
450bp
|
|
|
180bp
|
|
|
210bp
|
|
|
|
|
|
410bp
|
|
|
|
|
|
|
|
|
360bp
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CAPITAL EXPENDITURES
We utilize a non-GAAP measure in the computation of capital
expenditures and include spending associated with facilities
accounted for as capital leases and purchases of noncontrolling
interests. Certain contracts associated with facilities that are
built to provide product to a specific customer are required to be
accounted for as leases, and such spending is reflected as a use of
cash within cash provided by operating activities if the
arrangement qualifies as a capital lease. Additionally, the
purchase of noncontrolling interests in a subsidiary is reflected
as a financing activity in the statement of cash flows.
Below is a reconciliation of capital expenditures on a GAAP
basis to a non-GAAP measure:
|
|
|
Three Months
Ended
|
|
Twelve Months
Ended
|
|
|
|
|
30
September
|
|
30
September
|
|
|
|
2015
|
|
2014
|
|
2015
|
|
2014
|
|
Capital expenditures
– GAAP basis
|
|
$
|
400.1
|
|
$
|
419.6
|
|
$
|
1,653.6
|
|
$
|
1,682.2
|
|
Capital lease
expenditures
|
|
|
16.6
|
|
|
45.6
|
|
|
95.6
|
|
|
202.4
|
|
Purchase of
noncontrolling interests in a subsidiary
|
|
|
278.4
|
|
|
-
|
|
|
278.4
|
|
|
.5
|
|
Capital expenditures
– Non-GAAP basis
|
|
$
|
695.1
|
|
$
|
465.2
|
|
$
|
2,027.6
|
|
$
|
1,885.1
|
|
We expect capital expenditures for fiscal year 2016 to range
from $1,500 to $1,600.
OUTLOOK
Guidance provided is on a non-GAAP basis, which excludes the
impact of certain items that we believe are not representative of
our underlying business.
|
|
Diluted
EPS
|
|
|
|
Q1 FY16
|
|
|
FY16
|
|
|
2015
Non-GAAP
|
$
|
1.55
|
|
$
|
6.57
|
|
|
2016 Non-GAAP
Outlook
|
|
1.65–1.75
|
|
|
7.25–7.50
|
|
|
Change
Non-GAAP
|
$
|
.10–.20
|
|
$
|
.68–.93
|
|
|
% Change
Non-GAAP
|
|
6%–13%
|
|
|
10%–14%
|
|
RETURN ON CAPITAL EMPLOYED (ROCE)
Return on capital employed is calculated as earnings after-tax
divided by average total capital. Earnings after-tax is defined as
operating income and equity affiliate income, after tax, at our
effective tax rate. On a non-GAAP basis, operating income and taxes
have been adjusted for the impact of the disclosed items detailed
below. Total capital consists of total debt, total equity, and
redeemable noncontrolling interest.
|
|
Three Months
Ended
|
Twelve Months
Ended
|
|
|
30
September
|
30
September
|
|
|
2015
|
|
2014
|
|
2015
|
|
2014
|
Earnings before-tax
GAAP
|
$
|
508.2
|
|
$
|
183.8
|
|
$
|
1,853.6
|
|
$
|
1,479.6
|
Business
restructuring and cost reduction actions
|
|
61.7
|
|
|
12.7
|
|
|
207.7
|
|
|
12.7
|
Pension settlement
loss
|
|
7.0
|
|
|
5.5
|
|
|
21.2
|
|
|
5.5
|
Goodwill and
intangible asset impairment charge
|
|
-
|
|
|
310.1
|
|
|
-
|
|
|
310.1
|
Business separation
costs
|
|
7.5
|
|
|
-
|
|
|
7.5
|
|
|
-
|
Gain on previously
held equity interest
|
|
-
|
|
|
-
|
|
|
(17.9)
|
|
|
-
|
Gain on land
sales(A)
|
|
(33.6)
|
|
|
-
|
|
|
(33.6)
|
|
|
-
|
Earnings
Before-Tax Non-GAAP
|
$
|
550.8
|
|
$
|
512.1
|
|
$
|
2,038.5
|
|
$
|
1,807.9
|
Non-GAAP tax
adjustment
|
|
130.5
|
|
|
122.9
|
|
|
493.3
|
|
|
434.8
|
Earnings After-Tax
Non-GAAP
|
$
|
420.3
|
|
$
|
389.2
|
|
$
|
1,545.2
|
|
$
|
1,373.1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2015
|
|
2014
|
|
2015
|
|
2014
|
Earnings after-tax
non-GAAP
|
$
|
420.3
|
|
$
|
389.2
|
|
$
|
1,545.2
|
|
$
|
1,373.1
|
Average total
capital(B)
|
|
13,566.3
|
|
|
14,130.4
|
|
|
13,725.4
|
|
|
14,019.4
|
ROCE
|
|
12.4%
|
|
|
11.0%
|
|
|
11.3%
|
|
|
9.8%
|
Change
|
|
140bp
|
|
|
|
|
|
150bp
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(A)Reflected on the consolidated income
statements in "Other income (expense), net."
|
(B)The
three month and fiscal year averages consider two-quarters and
five-quarters, respectively.
|
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 data)
|
2015
|
|
|
2014
|
|
|
2015
|
|
|
2014
|
Sales
|
$
|
2,449.4
|
|
|
$
|
2,677.0
|
|
|
$
|
9,894.9
|
|
|
$
|
10,439.0
|
Cost of
sales
|
|
1,697.1
|
|
|
|
1,932.4
|
|
|
|
6,944.1
|
|
|
|
7,634.6
|
Selling and
administrative
|
|
200.4
|
|
|
|
243.0
|
|
|
|
941.7
|
|
|
|
1,059.3
|
Research and
development
|
|
33.3
|
|
|
|
40.9
|
|
|
|
138.8
|
|
|
|
141.4
|
Business
restructuring and cost reduction actions
|
|
61.7
|
|
|
|
12.7
|
|
|
|
207.7
|
|
|
|
12.7
|
Pension settlement
loss
|
|
7.0
|
|
|
|
5.5
|
|
|
|
21.2
|
|
|
|
5.5
|
Goodwill and
intangible asset impairment charge
|
|
-
|
|
|
|
310.1
|
|
|
|
-
|
|
|
|
310.1
|
Business separation
costs
|
|
7.5
|
|
|
|
-
|
|
|
|
7.5
|
|
|
|
-
|
Gain on previously
held equity interest
|
|
-
|
|
|
|
-
|
|
|
|
17.9
|
|
|
|
-
|
Other income
(expense), net
|
|
29.8
|
|
|
|
11.7
|
|
|
|
47.3
|
|
|
|
52.8
|
Operating
Income
|
|
472.2
|
|
|
|
144.1
|
|
|
|
1,699.1
|
|
|
|
1,328.2
|
Equity affiliates'
income
|
|
36.0
|
|
|
|
39.7
|
|
|
|
154.5
|
|
|
|
151.4
|
Interest
expense
|
|
22.8
|
|
|
|
29.0
|
|
|
|
103.5
|
|
|
|
125.1
|
Loss on early
retirement of debt
|
|
16.6
|
|
|
|
-
|
|
|
|
16.6
|
|
|
|
-
|
Income from
Continuing Operations before Taxes
|
|
468.8
|
|
|
|
154.8
|
|
|
|
1,733.5
|
|
|
|
1,354.5
|
Income tax
provision
|
|
118.8
|
|
|
|
77.3
|
|
|
|
415.9
|
|
|
|
366.0
|
Income from
Continuing Operations
|
|
350.0
|
|
|
|
77.5
|
|
|
|
1,317.6
|
|
|
|
988.5
|
Income from
Discontinued Operations, net of tax
|
|
-
|
|
|
|
1.5
|
|
|
|
-
|
|
|
|
4.6
|
Net
Income
|
|
350.0
|
|
|
|
79.0
|
|
|
|
1,317.6
|
|
|
|
993.1
|
Less: Net Income
(Loss) Attributable to Noncontrolling Interests
|
|
5.5
|
|
|
|
(25.0)
|
|
|
|
39.7
|
|
|
|
1.4
|
Net Income
Attributable to Air Products
|
$
|
344.5
|
|
|
$
|
104.0
|
|
|
$
|
1,277.9
|
|
|
$
|
991.7
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Income
Attributable to Air Products
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income from
continuing operations
|
$
|
344.5
|
|
|
$
|
102.5
|
|
|
$
|
1,277.9
|
|
|
$
|
987.1
|
Income from
discontinued operations
|
|
-
|
|
|
|
1.5
|
|
|
|
-
|
|
|
|
4.6
|
Net Income
Attributable to Air Products
|
$
|
344.5
|
|
|
$
|
104.0
|
|
|
$
|
1,277.9
|
|
|
$
|
991.7
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic Earnings Per
Common Share Attributable to Air Products
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income from
continuing operations
|
$
|
1.60
|
|
|
$
|
.48
|
|
|
$
|
5.95
|
|
|
$
|
4.64
|
Income from
discontinued operations
|
|
-
|
|
|
|
.01
|
|
|
|
-
|
|
|
|
.02
|
Net Income
Attributable to Air Products
|
$
|
1.60
|
|
|
$
|
.49
|
|
|
$
|
5.95
|
|
|
$
|
4.66
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted Earnings
Per Common Share Attributable to Air Products
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income from
continuing operations
|
$
|
1.58
|
|
|
$
|
.47
|
|
|
$
|
5.88
|
|
|
$
|
4.59
|
Income from
discontinued operations
|
|
-
|
|
|
|
.01
|
|
|
|
-
|
|
|
|
.02
|
Net Income
Attributable to Air Products
|
$
|
1.58
|
|
|
$
|
.48
|
|
|
$
|
5.88
|
|
|
$
|
4.61
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted Average
Common Shares — Basic (in millions)
|
|
215.5
|
|
|
|
213.7
|
|
|
|
214.9
|
|
|
|
212.7
|
Weighted Average
Common Shares — Diluted (in millions)
|
|
217.7
|
|
|
|
216.2
|
|
|
|
217.3
|
|
|
|
215.2
|
Dividends Declared
Per Common Share — Cash
|
$
|
.81
|
|
|
$
|
.77
|
|
|
$
|
3.20
|
|
|
$
|
3.02
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other Data from
Continuing Operations
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation and
amortization
|
$
|
234.6
|
|
|
$
|
254.6
|
|
|
$
|
936.4
|
|
|
$
|
956.9
|
|
Capital expenditures
on a Non-GAAP basis
|
|
695.1
|
|
|
|
465.2
|
|
|
|
2,027.6
|
|
|
|
1,885.1
|
|
|
(see page 10 for
reconciliation)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
AIR PRODUCTS AND
CHEMICALS, INC. and Subsidiaries
CONSOLIDATED BALANCE SHEETS
(Unaudited)
|
|
|
|
30
September
|
30
September
|
(Millions of
dollars)
|
|
2015
|
|
|
2014
|
|
Assets
|
|
|
|
|
|
|
|
|
Current
Assets
|
|
|
|
|
|
|
|
|
Cash and cash
items
|
|
$
|
206.4
|
|
|
$
|
336.6
|
|
Trade receivables,
net
|
|
|
1,406.2
|
|
|
|
1,486.0
|
|
Inventories
|
|
|
657.8
|
|
|
|
706.0
|
|
Contracts in
progress, less progress billings
|
|
|
110.8
|
|
|
|
155.4
|
|
Prepaid
expenses
|
|
|
67.3
|
|
|
|
87.8
|
|
Other receivables and
current assets
|
|
|
462.3
|
|
|
|
523.0
|
|
Total Current
Assets
|
|
|
2,910.8
|
|
|
|
3,294.8
|
|
Investment in net
assets of and advances to equity affiliates
|
|
|
1,265.7
|
|
|
|
1,257.9
|
|
Plant and equipment,
at cost
|
|
|
20,354.6
|
|
|
|
20,223.5
|
|
Less: accumulated
depreciation
|
|
|
10,717.7
|
|
|
|
10,691.4
|
|
Plant and equipment,
net
|
|
|
9,636.9
|
|
|
|
9,532.1
|
|
Goodwill,
net
|
|
|
1,131.3
|
|
|
|
1,237.3
|
|
Intangible assets,
net
|
|
|
508.3
|
|
|
|
615.8
|
|
Noncurrent capital
lease receivables
|
|
|
1,350.2
|
|
|
|
1,414.9
|
|
Other noncurrent
assets
|
|
|
634.9
|
|
|
|
426.3
|
|
Total Noncurrent
Assets
|
|
|
14,527.3
|
|
|
|
14,484.3
|
|
Total
Assets
|
|
$
|
17,438.1
|
|
|
$
|
17,779.1
|
|
|
|
|
|
|
|
|
|
|
Liabilities and
Equity
|
|
|
|
|
|
|
|
|
Current
Liabilities
|
|
|
|
|
|
|
|
|
Payables and accrued
liabilities
|
|
$
|
1,662.4
|
|
|
$
|
1,591.0
|
|
Accrued income
taxes
|
|
|
55.8
|
|
|
|
78.0
|
|
Short-term
borrowings
|
|
|
1,494.3
|
|
|
|
1,228.7
|
|
Current portion of
long-term debt
|
|
|
435.6
|
|
|
|
65.3
|
|
Total Current
Liabilities
|
|
|
3,648.1
|
|
|
|
2,963.0
|
|
Long-term
debt
|
|
|
3,949.1
|
|
|
|
4,824.5
|
|
Other noncurrent
liabilities
|
|
|
1,556.5
|
|
|
|
1,187.5
|
|
Deferred income
taxes
|
|
|
903.3
|
|
|
|
995.5
|
|
Total Noncurrent
Liabilities
|
|
|
6,408.9
|
|
|
|
7,007.5
|
|
Total
Liabilities
|
|
|
10,057.0
|
|
|
|
9,970.5
|
|
Redeemable
Noncontrolling Interest
|
|
|
-
|
|
|
|
287.2
|
|
Air Products
Shareholders' Equity
|
|
|
7,249.0
|
|
|
|
7,365.8
|
|
Noncontrolling
Interests
|
|
|
132.1
|
|
|
|
155.6
|
|
Total
Equity
|
|
|
7,381.1
|
|
|
|
7,521.4
|
|
Total Liabilities
and Equity
|
|
$
|
17,438.1
|
|
|
$
|
17,779.1
|
|
|
|
|
|
|
|
|
|
|
AIR PRODUCTS AND
CHEMICALS, INC. and Subsidiaries
|
|
CONSOLIDATED
STATEMENTS OF CASH FLOWS
|
|
(Unaudited)
|
|
|
|
|
|
Twelve Months
Ended
|
|
|
|
30
September
|
|
(Millions of
dollars)
|
2015
|
|
|
2014
|
|
Operating
Activities
|
|
|
|
|
|
|
|
Net Income
|
$
|
1,317.6
|
|
|
$
|
993.1
|
|
Less: Net income
attributable to noncontrolling interests
|
|
39.7
|
|
|
|
1.4
|
|
Net income
attributable to Air Products
|
|
1,277.9
|
|
|
|
991.7
|
|
Income from
discontinued operations
|
|
-
|
|
|
|
(4.6)
|
|
Income from
continuing operations attributable to Air Products
|
|
1,277.9
|
|
|
|
987.1
|
|
Adjustments to
reconcile income to cash provided by operating
activities:
|
|
|
|
|
|
|
|
|
Depreciation and
amortization
|
|
936.4
|
|
|
|
956.9
|
|
|
Deferred income
taxes
|
|
2.9
|
|
|
|
125.5
|
|
|
Loss on early
retirement of debt
|
|
16.6
|
|
|
|
-
|
|
|
Gain on previously
held equity interest
|
|
(17.9)
|
|
|
|
-
|
|
|
Undistributed
earnings of unconsolidated affiliates
|
|
(102.6)
|
|
|
|
(76.0)
|
|
|
(Gain) Loss on sale
of assets and investments
|
|
(30.1)
|
|
|
|
4.3
|
|
|
Share-based
compensation
|
|
45.7
|
|
|
|
44.0
|
|
|
Noncurrent capital
lease receivables
|
|
(9.5)
|
|
|
|
20.0
|
|
|
Goodwill and
intangible asset impairment charge
|
|
-
|
|
|
|
310.1
|
|
|
Write-down of
long-lived assets associated with restructuring
|
|
47.4
|
|
|
|
-
|
|
|
Other
adjustments
|
|
52.2
|
|
|
|
61.0
|
|
Working capital
changes that provided (used) cash, excluding effects of
acquisitions and divestitures:
|
|
|
|
|
|
|
|
|
Trade
receivables
|
|
(29.7)
|
|
|
|
(2.7)
|
|
|
Inventories
|
|
8.3
|
|
|
|
(23.5)
|
|
|
Contracts in
progress, less progress billings
|
|
37.4
|
|
|
|
(5.4)
|
|
|
Other
receivables
|
|
49.3
|
|
|
|
(33.0)
|
|
|
Payables and accrued
liabilities
|
|
157.8
|
|
|
|
(234.8)
|
|
|
Other working
capital
|
|
(4.3)
|
|
|
|
52.9
|
|
Cash Provided by
Operating Activities
|
|
2,437.8
|
|
|
|
2,186.4
|
|
Investing
Activities
|
|
|
|
|
|
|
|
Additions to plant
and equipment
|
|
(1,614.8)
|
|
|
|
(1,684.2)
|
|
Acquisitions, less
cash acquired
|
|
(34.5)
|
|
|
|
-
|
|
Investment in and
advances to unconsolidated affiliates
|
|
(4.3)
|
|
|
|
2.0
|
|
Proceeds from sale of
assets and investments
|
|
55.3
|
|
|
|
45.6
|
|
Other investing
activities
|
|
(1.4)
|
|
|
|
(1.4)
|
|
Cash Used for
Investing Activities
|
|
(1,599.7)
|
|
|
|
(1,638.0)
|
|
Financing
Activities
|
|
|
|
|
|
|
|
Long-term debt
proceeds
|
|
338.8
|
|
|
|
461.0
|
|
Payments on long-term
debt
|
|
(708.7)
|
|
|
|
(608.6)
|
|
Net increase in
commercial paper and short-term borrowings
|
|
284.0
|
|
|
|
148.7
|
|
Dividends paid to
shareholders
|
|
(677.5)
|
|
|
|
(627.7)
|
|
Proceeds from stock
option exercises
|
|
121.3
|
|
|
|
141.6
|
|
Excess tax benefit
from share-based compensation
|
|
31.9
|
|
|
|
28.3
|
|
Payment for
subsidiary shares from noncontrolling interests
|
|
(278.4)
|
|
|
|
(.5)
|
|
Other financing
activities
|
|
(56.8)
|
|
|
|
(47.1)
|
|
Cash Used for
Financing Activities
|
|
(945.4)
|
|
|
|
(504.3)
|
|
Discontinued
Operations
|
|
|
|
|
|
|
|
Cash provided by
operating activities
|
|
-
|
|
|
|
.7
|
|
Cash provided by
investing activities
|
|
-
|
|
|
|
9.8
|
|
Cash used for
financing activities
|
|
-
|
|
|
|
(157.1)
|
|
Cash Used for
Discontinued Operations
|
|
-
|
|
|
|
(146.6)
|
|
Effect of Exchange
Rate Changes on Cash
|
|
(22.9)
|
|
|
|
(11.3)
|
|
Decrease in Cash and
Cash Items
|
|
(130.2)
|
|
|
|
(113.8)
|
|
Cash and Cash Items –
Beginning of Year
|
|
336.6
|
|
|
|
450.4
|
|
Cash and Cash
Items – End of Period
|
$
|
206.4
|
|
|
$
|
336.6
|
|
|
|
|
|
|
|
|
|
|
Supplemental Cash
Flow Information
|
|
|
|
|
|
|
|
Cash paid for taxes
(net of cash refunds)
|
$
|
392.9
|
|
|
$
|
160.6
|
|
|
|
|
|
|
|
|
|
|
AIR PRODUCTS AND
CHEMICALS, INC. and Subsidiaries
|
|
SUMMARY BY
BUSINESS SEGMENTS
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Industrial
|
|
Industrial
|
|
Industrial
|
|
Industrial
|
|
|
|
|
Energy-
|
|
|
|
|
|
|
|
|
Gases–
|
|
Gases–
|
|
Gases–
|
|
Gases–
|
|
Materials
|
|
from-
|
|
Corporate
|
|
Segment
|
|
(Millions of
dollars)
|
Americas
|
|
EMEA
|
|
Asia
|
|
Global
|
|
Technologies
|
|
Waste
|
|
and other
|
|
Total
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
30 September 2015
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sales
|
$
|
902.3
|
|
$
|
460.1
|
|
$
|
428.2
|
|
$
|
89.4
|
|
$
|
490.0
|
|
$
|
-
|
|
$
|
79.4
|
|
$
|
2,449.4
|
|
Operating income
(loss)
|
|
208.7
|
|
|
90.8
|
|
|
104.4
|
|
|
(1.7)
|
|
|
116.4
|
|
|
(2.3)
|
|
|
(1.5)
|
|
|
514.8
|
|
Depreciation and
amortization
|
|
106.1
|
|
|
48.6
|
|
|
51.1
|
|
|
2.5
|
|
|
22.8
|
|
|
-
|
|
|
3.5
|
|
|
234.6
|
|
Equity affiliates'
income (loss)
|
|
15.0
|
|
|
12.0
|
|
|
9.4
|
|
|
(1.0)
|
|
|
.6
|
|
|
-
|
|
|
-
|
|
|
36.0
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
30 September 2014
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sales
|
$
|
1,037.7
|
|
$
|
520.7
|
|
$
|
399.8
|
|
$
|
89.6
|
|
$
|
560.8
|
|
$
|
-
|
|
$
|
68.4
|
|
$
|
2,677.0
|
|
Operating income
(loss)
|
|
219.6
|
|
|
92.8
|
|
|
72.7
|
|
|
(18.0)
|
|
|
124.3
|
|
|
(2.8)
|
|
|
(16.2)
|
|
|
472.4
|
|
Depreciation and
amortization
|
|
105.4
|
|
|
55.4
|
|
|
60.8
|
|
|
2.1
|
|
|
27.4
|
|
|
-
|
|
|
3.5
|
|
|
254.6
|
|
Equity affiliates'
income
|
|
16.0
|
|
|
11.6
|
|
|
7.4
|
|
|
4.1
|
|
|
.6
|
|
|
-
|
|
|
-
|
|
|
39.7
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Twelve Months
Ended 30 September 2015
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sales
|
$
|
3,693.9
|
|
$
|
1,864.9
|
|
$
|
1,637.5
|
|
$
|
286.8
|
|
$
|
2,087.1
|
|
$
|
-
|
|
$
|
324.7
|
|
$
|
9,894.9
|
|
Operating income
(loss)
|
|
808.4
|
|
|
330.7
|
|
|
380.5
|
|
|
(51.6)
|
|
|
476.7
|
|
|
(10.1)
|
|
|
(50.6)
|
|
|
1,884.0
|
|
Depreciation and
amortization
|
|
416.9
|
|
|
194.3
|
|
|
202.9
|
|
|
16.5
|
|
|
92.8
|
|
|
-
|
|
|
13.0
|
|
|
936.4
|
|
Equity affiliates'
income (loss)
|
|
64.6
|
|
|
42.4
|
|
|
46.1
|
|
|
(.8)
|
|
|
2.2
|
|
|
-
|
|
|
-
|
|
|
154.5
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Twelve Months
Ended 30 September 2014
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sales
|
$
|
4,078.5
|
|
$
|
2,150.7
|
|
$
|
1,527.0
|
|
$
|
296.0
|
|
$
|
2,064.6
|
|
$
|
-
|
|
$
|
322.2
|
|
$
|
10,439.0
|
|
Operating income
(loss)
|
|
762.6
|
|
|
351.2
|
|
|
310.4
|
|
|
(57.3)
|
|
|
379.0
|
|
|
(12.4)
|
|
|
(77.0)
|
|
|
1,656.5
|
|
Depreciation and
amortization
|
|
414.4
|
|
|
220.2
|
|
|
205.3
|
|
|
7.1
|
|
|
99.1
|
|
|
-
|
|
|
10.8
|
|
|
956.9
|
|
Equity affiliates'
income
|
|
60.9
|
|
|
44.1
|
|
|
38.0
|
|
|
5.8
|
|
|
2.6
|
|
|
-
|
|
|
-
|
|
|
151.4
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
Assets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
30 September
2015
|
$
|
5,774.9
|
|
$
|
3,323.9
|
|
$
|
4,154.0
|
|
$
|
370.5
|
|
$
|
1,741.9
|
|
$
|
894.4
|
|
$
|
1,178.5
|
|
$
|
17,438.1
|
|
30 September
2014
|
|
6,240.7
|
|
|
3,521.0
|
|
|
4,045.6
|
|
|
389.4
|
|
|
1,835.7
|
|
|
591.9
|
|
|
1,154.8
|
|
|
17,779.1
|
|
Below is a
reconciliation of segment total operating income to consolidated
operating income:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
|
Twelve Months
Ended
|
|
|
|
|
30
September
|
|
|
30
September
|
|
Operating
Income
|
|
2015
|
|
|
2014
|
|
|
2015
|
|
|
2014
|
|
Segment
total
|
$
|
514.8
|
|
$
|
472.4
|
|
$
|
1,884.0
|
|
$
|
1,656.5
|
|
Business
restructuring and cost reduction actions
|
|
(61.7)
|
|
|
(12.7)
|
|
|
(207.7)
|
|
|
(12.7)
|
|
Pension settlement
loss
|
|
(7.0)
|
|
|
(5.5)
|
|
|
(21.2)
|
|
|
(5.5)
|
|
Goodwill and
intangible asset impairment charge
|
|
-
|
|
|
(310.1)
|
|
|
-
|
|
|
(310.1)
|
|
Business separation
costs
|
|
(7.5)
|
|
|
-
|
|
|
(7.5)
|
|
|
-
|
|
Gain on previously
held equity interest
|
|
-
|
|
|
-
|
|
|
17.9
|
|
|
-
|
|
Gain on land
sales
|
|
33.6
|
|
|
-
|
|
|
33.6
|
|
|
-
|
|
Consolidated
Total
|
$
|
472.2
|
|
$
|
144.1
|
|
$
|
1,699.1
|
|
$
|
1,328.2
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
AIR PRODUCTS AND CHEMICALS, INC. and
Subsidiaries
NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS
(Unaudited)
(Millions of dollars, unless otherwise indicated)
1. BUSINESS RESTRUCTURING
On 18 September 2014, we announced
plans to reorganize the Company, including realignment of our
businesses in new reporting segments and other organizational
changes, effective as of 1 October
2014. As a result of this reorganization, we have incurred
ongoing severance and other charges. For the three and twelve
months ended 30 September 2015, we
recognized an expense of $61.7
($54.5 after-tax, or $.25 per share) and $207.7 ($153.2
after-tax, or $.71 per share),
respectively. Severance and other benefits totaled $41.6 and $151.9
for the three and twelve months ended 30
September 2015, respectively. During fiscal year 2015, the
reorganization has resulted in the elimination of approximately
2,000 positions. The 2015 fourth quarter before-tax expense
included $20.1 for asset actions
primarily related to a plant shutdown in the Corporate and other
segment. Also, in the fourth quarter of 2015, the income tax
provision included $7.3 to establish
a valuation allowance on deferred tax assets related to the plant
shutdown. Additional charges may be recorded in future periods as
the Company commits to specific actions.
2. PENSION SETTLEMENT
Certain of our pension plans provide for a lump sum benefit
payment option at the time of retirement, or for corporate
officers, six months after the participant's retirement date. We
recognize pension settlement losses when cash payments exceed the
sum of service and interest cost components of net periodic pension
cost of the plan for the fiscal year. For the three and twelve
months ended 30 September 2015, we
recognized a pension settlement charge of $7.0 ($4.8
after-tax, or $.02 per share) and
$21.2 ($13.7 after-tax, or $.06 per share). These settlements accelerated
the recognition of a portion of actuarial losses deferred in
accumulated other comprehensive loss primarily associated with our
U.S. supplemental pension plan.
3. BUSINESS SEPARATION COSTS
On 16 September 2015, the Company
announced that it intends to fully separate its Materials
Technologies business via a spin-off. During the fourth quarter, we
incurred legal and other advisory fees of $7.5 ($.03 per
share). The results of operations, financial condition, and cash
flows of the Materials Technologies business will continue to be
presented within our consolidated financial statements as
continuing operations until the Board of Directors approves the
final separation, at which point in time the financial presentation
of this business will be reflected as a discontinued operation.
4. BUSINESS COMBINATION
On 30 December 2014, we acquired
our partner's equity ownership interest in a liquefied industrial
gases production joint venture in North
America for $22.6, which
increased our ownership from 50% to 100%. The transaction was
accounted for as a business combination, and subsequent to the
acquisition, the results are consolidated within our Industrial
Gases – Americas segment. The assets acquired, primarily plant and
equipment, were recorded at their fair market values as of the
acquisition date.
The acquisition date fair value of the previously held equity
interest was determined using a discounted cash flow analysis. The
gain of $17.9 ($11.2 after-tax, or $.05 per share), as a result of revaluing our
previously held equity interest to fair value as of the acquisition
date, is reflected on the consolidated income statements as "Gain
on previously held equity interest."
5. GAIN ON LAND SALES
During the fourth quarter of 2015, we sold two parcels of land
resulting in a gain of $33.6
($28.3 after-tax, or $.13 per share). The gain is reflected on the
consolidated income statements in "Other income (expense),
net."
6. LOSS ON EARLY RETIREMENT OF DEBT
In September 2015, we made a
payment of $146.6 to redeem 3,000,000
Unidades de Fomento ("UF") Series E 6.30% Bonds due 22 January
2030 that had a carrying value of $130.0 and resulted in a net loss of $16.6 ($14.2
after-tax, or $.07 per share).
7. BUSINESS SEGMENT INFORMATION
Effective 1 October 2014, we began
operating under a new structure and reporting our results under the
following seven new segments:
- Industrial Gases – Americas
- Industrial Gases – EMEA (Europe, Middle
East, and Africa)
- Industrial Gases – Asia
- Industrial Gases – Global
- Materials Technologies
- Energy-from-Waste
- Corporate and other
Each of the three regional Industrial Gases segments (Americas,
EMEA, Asia) includes, with respect
to such region, onsite Air Separation Units (ASUs producing
primarily oxygen, nitrogen and argon), Hydrogen/HyCO Plants
(producing primarily hydrogen, carbon monoxide, syngas and steam),
and the regional Merchant Gases businesses (including liquid/bulk,
packaged gases and related equipment). The Industrial Gases –
Global segment includes atmospheric sale of equipment businesses,
such as ASUs and noncryogenic generators, as well as global
resources associated with the Industrial Gases business. The
Materials Technologies segment includes the Electronics Materials
and Performance Materials businesses, but excludes the previous
Electronics tonnage gases business which is now part of the three
regional Industrial Gases segments. The Energy-from-Waste segment
consists of the Tees Valley projects in the United Kingdom. The Corporate and other
segment includes two ongoing global businesses (our liquefied
natural gas, or LNG, sale of equipment business and our helium
storage and distribution vessel sale of equipment business), the
polyurethane intermediates business that was exited in early fiscal
year 2014, and corporate support functions that benefit all of the
business segments. Support functions that support a specific
business are allocated directly to the related segment.
Prior year information conforms with the fiscal year 2015
presentation. For additional historical financial information
comparable to the 2015 presentation, see our Form 8-K filed on
5 January 2015.
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/air-products-reports-fiscal-2015-fourth-quarter-eps-up-10-percent-300168616.html
SOURCE Air Products