LEHIGH
VALLEY, Pa., Nov. 3, 2022
/PRNewswire/ --
Fiscal Year 2022 (comparisons versus prior year):
- GAAP EPS# of $10.08,
up 11 percent; GAAP net income of $2,267
million, up seven percent; and GAAP net income margin of
17.8 percent, down 270 basis points
- Adjusted EPS* of $10.41, up 15
percent; adjusted EBITDA* of $4,247
million, up nine percent; and adjusted EBITDA margin* of
33.4 percent, down 420 basis points
Q4 FY22 (comparisons versus prior year):
- GAAP EPS# of $2.56, up
two percent; GAAP net income of $593
million, down four percent; and GAAP net income margin of
16.6 percent, down 520 basis points
- Adjusted EPS* of $2.89, up 15
percent; adjusted EBITDA* of $1,145
million, up 10 percent; and adjusted EBITDA margin* of 32.1
percent, down 450 basis points
Fiscal 2022 and Recent Highlights
- Increased quarterly dividend eight percent to $1.62 per share, the 40th consecutive
year of increases
- Demonstrated sustainability in action:
-
- Increased sustainability commitment to $15 billion for capital investments in
first-mover zero- and low-carbon hydrogen projects through
2027
- Set new goal to reduce Scope 3 CO2 emissions
intensity by one-third by 2030 and path to achieve net zero
operations by 2050
- Announced engagement with the Science Based Targets Initiative
to help support development of the sectoral framework that will
shape the methodology for the chemicals sector
- Advanced the energy transition:
-
- Announced multi-billion project in Paramount, California, to supply sustainable
aviation fuel (SAF) to World Energy under a long-term on-site
contract
- Announced long-term supply agreement for Imperial Oil's
proposed Strathcona renewable
diesel complex, with Air Products supplying about half the
low-carbon hydrogen output from its net-zero hydrogen energy
complex in Edmonton, Alberta,
Canada
- Announced plans to invest approximately $500 million to build, own and operate a 35
metric ton per day facility to produce green liquid hydrogen at a
greenfield site in Massena, New
York, as well as liquid hydrogen distribution and dispensing
operations
- Signed two major on-site agreements valued at $1.3 billion to supply industrial gases to major
semiconductor manufacturers
- Closed Phase I of the Jazan project, delivering significant
FY22 contribution; expect Phase II to close in Q2FY23
Guidance
- Fiscal 2023 full-year adjusted EPS guidance* of $11.20 to $11.50,
up nine to 12 percent over prior year adjusted EPS* calculated on
the same basis; fiscal 2023 first quarter adjusted EPS guidance* of
$2.60 to $2.80, up five to 13 percent over prior year
first quarter adjusted EPS* calculated on the same basis
- Expect fiscal year 2023 capital expenditures* of $5.0 - $5.5
billion
#Earnings per share is calculated and
presented on a diluted basis from continuing operations
attributable to Air Products.
*Certain results in this release, including in the highlights
above, include references to non-GAAP financial measures on a
consolidated, continuing operations basis and a segment basis.
Additional information regarding these measures and reconciliations
of GAAP to non-GAAP historical results can be found below. In
addition, as discussed below, it is not possible, without
unreasonable efforts, to identify the timing or occurrence of
events and transactions that could significantly impact future GAAP
EPS or cash flow used for investing activities if they were to
occur.
Air Products (NYSE:APD) today reported fiscal year 2022 results,
including GAAP EPS from continuing operations of $10.08, up 11 percent over prior year, which
includes a negative impact of $0.32
in the fourth quarter for the loss on the divestiture of the
Russia business and the impairment
of two equity affiliates in the Asia segment. GAAP net income of $2,267 million was up seven percent over prior
year, as higher pricing and volumes, as well as equity affiliates'
income driven by the Jazan project, more than offset higher costs,
including the loss on the Russia
business divestiture and the equity affiliate impairment, and
unfavorable currency due to the strengthening of the U.S. dollar.
GAAP net income margin of 17.8 percent was down 270 basis points,
which included a negative impact of about 200 basis points from
higher energy cost pass-through.
For the year, on a non-GAAP basis, adjusted EPS from continuing
operations of $10.41 increased 15
percent over the prior year. Adjusted EBITDA of $4,247 million was up nine percent over the prior
year, as higher pricing and volumes, as well as equity affiliates'
income driven by the Jazan project, more than offset higher costs
and unfavorable currency. Adjusted EBITDA margin of 33.4 percent
decreased 420 basis points, which included a negative impact of
about 400 basis points from higher energy cost pass-through.
Full-year sales of $12.7 billion
increased 23 percent over the prior year on 13 percent higher
energy cost pass-through, eight percent higher volumes, and six
percent higher pricing, partially offset by four percent
unfavorable currency. Volume growth was primarily driven by
hydrogen, new plants, merchant and sale of equipment activities.
Pricing improved in the Americas, Asia and Europe — the Company's three largest segments
— and across most major product lines.
Fiscal Fourth Quarter Results
For its fiscal fourth quarter 2022 results, Air Products
reported GAAP EPS from continuing operations of $2.56, up two percent over prior year, which
includes a negative impact of $0.32
for the loss on the Russia
business divestiture and the impairment of two equity affiliates in
the Asia segment. GAAP net income
of $593 million was down four percent
over prior year as higher volumes, pricing, and equity affiliates'
income were more than offset by higher costs, including the loss on
the Russia business divestiture
and the equity affiliate impairment, and unfavorable currency due
to the strengthening of the U.S. dollar. GAAP net income margin of
16.6 percent decreased 520 basis points, which included a
negative impact of about 250 basis points from higher energy cost
pass-through.
For the quarter, on a non-GAAP basis, adjusted EPS from
continuing operations of $2.89
increased 15 percent over the prior year. Adjusted EBITDA of
$1,145 million was up 10 percent over
the prior year, as higher volumes, pricing and equity affiliates'
income more than offset higher costs as well as unfavorable
currency due to the strengthening of the U.S. dollar. Adjusted
EBITDA margin of 32.1 percent decreased 450 basis points, which
included a negative impact of about 450 basis points from higher
energy cost pass-through.
Fourth quarter sales of $3.6
billion increased 26 percent over the prior year on 15
percent higher energy cost pass-through, nine percent higher
volumes, and eight percent higher pricing, partially offset by six
percent unfavorable currency. Volume growth, primarily in
Asia and the Americas, was driven
by new plants, recovery in hydrogen and better merchant demand.
Pricing improved in the three largest regional segments.
Commenting on the results, Air Products' Chairman, President and
Chief Executive Officer Seifi
Ghasemi said, "Working together, the Air Products team
delivered higher volume and pricing in our base industrial gas
business while investing in and executing world-class projects to
drive the energy transition forward. Despite significant
macroeconomic challenges, our people stayed focused and agile,
serving our customers and demonstrating a bold commitment to make a
cleaner, better future a reality. These results demonstrate the
ability of Air Products to deliver strong near-term results while
pursuing our longer-term growth strategy. "
Fiscal Fourth Quarter Results by Business Segment
- Americas sales of $1,542
million were up 38 percent over the prior year on 19 percent
higher energy cost pass-through, 12 percent higher volumes, and
eight percent higher pricing, partially offset by one percent
unfavorable currency. Operating income of $333 million increased 15 percent and adjusted
EBITDA of $515 million increased
eight percent, in each case due to the higher pricing and higher
volumes, partially offset by higher costs. Adjusted EBITDA also
reflects lower equity affiliates' income. Operating margin of 21.6
percent decreased 440 basis points and adjusted EBITDA margin of
33.4 percent decreased 930 basis points, each of which included a
negative impact from energy cost pass-through of about 400 basis
points and about 650 basis points, respectively.
- Asia sales of
$860 million increased 14 percent
over the prior year on 16 percent higher volumes, three percent
higher pricing, and two percent higher energy cost pass-through,
partially offset by seven percent unfavorable currency. Operating
income of $263 million increased 28
percent and adjusted EBITDA of $373
million increased 13 percent, in each case due to the
favorable volumes and pricing, which were partially offset by
higher costs and unfavorable currency. Operating margin of 30.6
percent increased 330 basis points while adjusted EBITDA margin of
43.3 percent decreased 50 basis points.
- Europe sales of
$864 million increased 34 percent
over the prior year on 30 percent higher energy cost pass-through
and 19 percent higher pricing across all product lines and
sub-regions, partially offset by 15 percent unfavorable currency.
Volumes were stable despite the challenging economic environment.
Operating income of $150 million
increased 20 percent and adjusted EBITDA of $217 million increased eight percent, in each
case primarily driven by higher pricing, which was partially offset
by unfavorable currency and higher costs. Operating margin of 17.4
percent decreased 200 basis points and adjusted EBITDA margin of
25.1 percent decreased 600 basis points, each of which included a
negative impact from energy cost pass-through of about 450 basis
points and about 750 basis points, respectively.
- Middle East and
India equity affiliates'
income of $63 million was up
$41 million over the prior year,
primarily from the Jazan joint venture.
- Corporate and other sales of $263
million decreased 12 percent compared to the prior year,
driven by lower sale of equipment activity.
Outlook
Effective beginning in the first quarter of fiscal year 2023,
management will review adjusted earnings per share excluding the
impact of non-service related components of the net periodic
benefit/cost for our defined benefit pension plans. Air Products
expects full-year fiscal 2023 adjusted EPS guidance of $11.20 to $11.50,
up nine to 12 percent over prior year adjusted EPS. For the fiscal
2023 first quarter, Air Products' adjusted EPS guidance is
$2.60 to $2.80, up five to 13 percent over fiscal 2022
first quarter adjusted EPS. The projected percentage increase in
adjusted EPS for full year fiscal 2023 and fiscal 2023 first
quarter is calculated using adjusted fiscal 2022 results in order
to present this information on a consistent basis using the
calculation of adjusted EPS that will be applied in fiscal year
2023. Refer to the reconciliations of GAAP to non-GAAP historical
results below for additional information.
Air Products expects capital expenditures of $5.0 - $5.5 billion
for full-year fiscal 2023.
Management has provided adjusted EPS guidance on a continuing
operations basis, which excludes the impact of certain items that
we believe are not representative of our underlying business
performance, such as the incurrence of additional costs for cost
reduction actions and impairment charges, or the recognition of
gains or losses on disclosed items. It is not possible, without
unreasonable efforts, to predict the timing or occurrence of these
events or the potential for other transactions that may impact
future GAAP EPS or the effective tax rate. Similarly, it is not
possible, without unreasonable efforts, to reconcile our forecasted
capital expenditures to future cash used for investing activities
because we are unable to identify the timing or occurrence of our
future investment activity, which is driven by our assessment of
competing opportunities at the time we enter into transactions.
Furthermore, it is not possible to identify the potential
significance of these events in advance, but any of these events,
if they were to occur, could have a significant effect on our
future GAAP results. Management therefore is unable to reconcile,
without unreasonable effort, the Company's forecasted range of
adjusted EPS, the effective tax rate and our capital expenditures
to a comparable GAAP range.
Earnings Teleconference
Access the fiscal 2022 fourth quarter earnings teleconference
scheduled for 8:30 a.m. Eastern Time
on November 3, 2022 by calling 323-794-2093 and entering
passcode 7733307 or by accessing the Event Details page on Air
Products' Investor Relations website.
About Air Products
Air Products (NYSE:APD) is a world-leading industrial gases
company in operation for over 80 years focused on serving energy,
environmental, and emerging markets. The Company has two growth
pillars driven by sustainability. Air Products' base business
provides essential industrial gases, related equipment and
applications expertise to customers in dozens of industries,
including refining, chemicals, metals, electronics, manufacturing,
and food. The Company also develops, engineers, builds, owns and
operates some of the world's largest industrial gas and
carbon-capture projects, supplying world-scale clean hydrogen for
global transportation, industrial markets, and the broader energy
transition. Additionally, Air Products is the world leader in the
supply of liquefied natural gas process technology and equipment,
and globally provides turbomachinery, membrane systems and
cryogenic containers.
The Company had fiscal 2022 sales of $12.7 billion from operations in over 50
countries and has a current market capitalization of about
$55 billion. More than
21,000 passionate, talented and committed employees from
diverse backgrounds are driven by Air Products' higher purpose to
create innovative solutions that benefit the environment, enhance
sustainability and reimagine what's possible to address the
challenges facing customers, communities, and the world. For more
information, visit www.airproducts.com or follow us on LinkedIn,
Twitter, Facebook or Instagram.
Cautionary Note Regarding Forward-Looking Statements
This release contains "forward-looking statements" within the
safe harbor provisions of the Private Securities Litigation Reform
Act of 1995, including statements about earnings and capital
expenditure guidance, business outlook and investment
opportunities. Forward-looking statements are based on management's
expectations and assumptions as of the date of this release and are
not guarantees of future performance. While forward-looking
statements are made in good faith and based on assumptions,
expectations and projections that management believes are
reasonable based on currently available information, actual
performance and financial results may differ materially from
projections and estimates expressed in the forward-looking
statements because of many factors, including, without limitation:
the duration and impacts of the ongoing COVID-19 global pandemic
and efforts to contain its transmission, including the effect of
these factors on our business, our customers, economic conditions
and markets generally; changes in global or regional economic
conditions, inflation and supply and demand dynamics in the market
segments we serve, including demand for technologies and projects
to limit the impact of global climate change,; changes in the
financial markets that may affect the availability and terms on
which we may obtain financing; the ability to implement price
increases to offset cost increases; disruptions to our supply chain
and related distribution delays and cost increases; risks
associated with having extensive international operations,
including political risks, risks associated with unanticipated
government actions and risks of investing in developing markets;
project delays, contract terminations, customer cancellations, or
postponement of projects and sales; our ability to safely develop,
operate, and manage costs of large-scale and technically complex
projects; the future financial and operating performance of major
customers, joint ventures, and equity affiliates; our ability to
develop, implement, and operate new technologies and to market
products produced utilizing new technologies; our ability to
execute the projects in our backlog and refresh our pipeline of new
projects; tariffs, economic sanctions and regulatory activities in
jurisdictions in which we and our affiliates and joint ventures
operate; the impact of environmental, tax, safety, or other
legislation, as well as regulations and other public policy
initiatives affecting our business and the business of our
affiliates and related compliance requirements, including
legislation, regulations, or policies intended to address global
climate change; changes in tax rates and other changes in tax law;
safety incidents relating to our operations; the timing, impact,
and other uncertainties relating to acquisitions and divestitures,
including our ability to integrate acquisitions and separate
divested businesses, respectively; risks relating to cybersecurity
incidents, including risks from the interruption, failure or
compromise of our information systems; catastrophic events, such as
natural disasters and extreme weather events, public health crises,
acts of war, including Russia's
invasion of Ukraine and the
ongoing civil war in Yemen, or
terrorism; the impact on our business and customers of price
fluctuations in oil and natural gas and disruptions in markets and
the economy due to oil and natural gas price volatility; costs and
outcomes of legal or regulatory proceedings and investigations;
asset impairments due to economic conditions or specific events;
significant fluctuations in inflation, interest rates, and foreign
currency exchange rates from those currently anticipated; damage to
facilities, pipelines or delivery systems, including those we own
or operate for third parties; availability and cost of electric
power, natural gas, and other raw materials; the success of
productivity and operational improvement programs; and other risks
described in our Annual Report on Form 10-K for the fiscal year
ended September 30, 2021 and
subsequent filings we have made with the U.S. Securities and
Exchange Commission. You are cautioned not to place undue reliance
on our forward-looking statements. Except as required by law, we
disclaim any obligation or undertaking to update or revise any
forward-looking statements contained herein to reflect any change
in assumptions, beliefs, or expectations or any change in events,
conditions, or circumstances upon which any such forward-looking
statements are based.
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 and per share data)
|
2022
|
2021
|
2022
|
2021
|
Sales
|
$3,570.0
|
$2,841.1
|
$12,698.6
|
$10,323.0
|
Cost of
sales
|
2,621.2
|
2,006.3
|
9,338.5
|
7,186.1
|
Facility
closure
|
—
|
—
|
—
|
23.2
|
Selling and
administrative
|
223.9
|
202.1
|
900.6
|
828.4
|
Research and
development
|
31.1
|
25.7
|
102.9
|
93.5
|
Business and asset
actions
|
73.7
|
—
|
73.7
|
—
|
Gain on exchange with
joint venture partner
|
—
|
—
|
—
|
36.8
|
Other income (expense),
net
|
6.4
|
9.7
|
55.9
|
52.8
|
Operating
Income
|
626.5
|
616.7
|
2,338.8
|
2,281.4
|
Equity affiliates'
income
|
96.8
|
91.8
|
481.5
|
294.1
|
Interest
expense
|
32.5
|
33.4
|
128.0
|
141.8
|
Other non-operating
income (expense), net
|
20.2
|
17.2
|
62.4
|
73.7
|
Income From
Continuing Operations Before Taxes
|
711.0
|
692.3
|
2,754.7
|
2,507.4
|
Income tax
provision
|
130.6
|
125.3
|
500.8
|
462.8
|
Income From
Continuing Operations
|
580.4
|
567.0
|
2,253.9
|
2,044.6
|
Income from
discontinued operations, net of tax
|
12.6
|
51.8
|
12.6
|
70.3
|
Net
Income
|
593.0
|
618.8
|
2,266.5
|
2,114.9
|
Net income attributable
to noncontrolling interests of continuing operations
|
9.9
|
8.4
|
10.4
|
15.8
|
Net Income
Attributable to Air Products
|
$583.1
|
$610.4
|
$2,256.1
|
$2,099.1
|
|
|
|
|
|
Net Income
Attributable to Air Products
|
|
|
|
|
Net income from
continuing operations
|
$570.5
|
$558.6
|
$2,243.5
|
$2,028.8
|
Net income from
discontinued operations
|
12.6
|
51.8
|
12.6
|
70.3
|
Net Income
Attributable to Air Products
|
$583.1
|
$610.4
|
$2,256.1
|
$2,099.1
|
|
|
|
|
|
Per Share
Data*
|
|
|
|
|
Basic EPS from
continuing operations
|
$2.57
|
$2.52
|
$10.11
|
$9.16
|
Basic EPS from
discontinued operations
|
0.06
|
0.23
|
0.06
|
0.32
|
Basic EPS
Attributable to Air Products
|
$2.63
|
$2.75
|
$10.16
|
$9.47
|
|
|
|
|
|
Diluted EPS from
continuing operations
|
$2.56
|
$2.51
|
$10.08
|
$9.12
|
Diluted EPS from
discontinued operations
|
0.06
|
0.23
|
0.06
|
0.32
|
Diluted EPS
Attributable to Air Products
|
$2.62
|
$2.74
|
$10.14
|
$9.43
|
|
|
|
|
|
Weighted Average
Common Shares (in millions)
|
|
|
|
|
Basic
|
222.1
|
221.7
|
222.0
|
221.6
|
Diluted
|
222.5
|
222.5
|
222.5
|
222.5
|
*Earnings per share
("EPS") is calculated independently for each component and may not
sum to total EPS due to rounding.
|
Air Products and
Chemicals, Inc. and Subsidiaries CONSOLIDATED BALANCE
SHEETS (Unaudited)
|
|
30 September
|
30 September
|
(Millions of
dollars)
|
2022
|
2021
|
Assets
|
|
|
Current
Assets
|
|
|
Cash and cash
items
|
$2,711.0
|
$4,468.9
|
Short-term
investments
|
590.7
|
1,331.9
|
Trade receivables,
net
|
1,794.4
|
1,451.3
|
Inventories
|
514.2
|
453.9
|
Prepaid
expenses
|
156.8
|
119.4
|
Other receivables and
current assets
|
515.8
|
550.9
|
Total Current
Assets
|
6,282.9
|
8,376.3
|
Investment in net
assets of and advances to equity affiliates
|
3,353.8
|
1,649.3
|
Plant and equipment, at
cost
|
28,160.1
|
27,488.8
|
Less: accumulated
depreciation
|
13,999.6
|
14,234.2
|
Plant and equipment,
net
|
14,160.5
|
13,254.6
|
Goodwill,
net
|
823.0
|
911.5
|
Intangible assets,
net
|
347.5
|
420.7
|
Noncurrent lease
receivables
|
583.1
|
740.3
|
Other noncurrent
assets
|
1,641.8
|
1,506.5
|
Total Noncurrent
Assets
|
20,909.7
|
18,482.9
|
Total
Assets
|
$27,192.6
|
$26,859.2
|
Liabilities and
Equity
|
|
|
Current
Liabilities
|
|
|
Payables and accrued
liabilities
|
$2,771.6
|
$2,218.3
|
Accrued income
taxes
|
135.2
|
93.9
|
Short-term
borrowings
|
10.7
|
2.4
|
Current portion of
long-term debt
|
548.3
|
484.5
|
Total Current
Liabilities
|
3,465.8
|
2,799.1
|
Long-term
debt
|
6,433.8
|
6,875.7
|
Long-term debt –
related party
|
652.0
|
274.6
|
Other noncurrent
liabilities
|
1,691.2
|
1,640.9
|
Deferred income
taxes
|
1,247.4
|
1,180.9
|
Total Noncurrent
Liabilities
|
10,024.4
|
9,972.1
|
Total
Liabilities
|
13,490.2
|
12,771.2
|
Air Products
Shareholders' Equity
|
13,144.0
|
13,539.7
|
Noncontrolling
Interests
|
558.4
|
548.3
|
Total
Equity
|
13,702.4
|
14,088.0
|
Total Liabilities
and Equity
|
$27,192.6
|
$26,859.2
|
Air Products and
Chemicals, Inc. and Subsidiaries CONSOLIDATED STATEMENTS
OF CASH FLOWS (Unaudited)
|
|
Twelve Months
Ended
|
|
30 September
|
(Millions of
dollars)
|
2022
|
2021
|
Operating
Activities
|
|
|
Net income
|
$2,266.5
|
$2,114.9
|
Less: Net income
attributable to noncontrolling interests of continuing
operations
|
10.4
|
15.8
|
Net income attributable
to Air Products
|
2,256.1
|
2,099.1
|
Net income from
discontinued operations
|
(12.6)
|
(70.3)
|
Net income from
continuing operations attributable to Air Products
|
2,243.5
|
2,028.8
|
Adjustments to
reconcile income to cash provided by operating
activities:
|
|
|
Depreciation and
amortization
|
1,338.2
|
1,321.3
|
Deferred income
taxes
|
32.3
|
94.0
|
Facility
closure
|
—
|
23.2
|
Business and asset
actions
|
73.7
|
—
|
Undistributed earnings
of equity method investments
|
(214.7)
|
(138.2)
|
Gain on sale of assets
and investments
|
(24.1)
|
(37.2)
|
Share-based
compensation
|
48.4
|
44.5
|
Noncurrent lease
receivables
|
94.0
|
98.8
|
Other
adjustments
|
(304.9)
|
(116.7)
|
Working capital changes
that provided (used) cash, excluding effects of
acquisitions:
|
|
|
Trade
receivables
|
(475.2)
|
(130.5)
|
Inventories
|
(94.3)
|
(47.2)
|
Other
receivables
|
(1.8)
|
75.5
|
Payables and accrued
liabilities
|
532.5
|
187.9
|
Other working
capital
|
(77.0)
|
(69.0)
|
Cash Provided by
Operating Activities
|
3,170.6
|
3,335.2
|
Investing
Activities
|
|
|
Additions to plant and
equipment, including long-term deposits
|
(2,926.5)
|
(2,464.2)
|
Acquisitions, less cash
acquired
|
(65.1)
|
(10.5)
|
Investment in and
advances to unconsolidated affiliates
|
(1,658.4)
|
(76.0)
|
Proceeds from sale of
assets and investments
|
46.2
|
37.5
|
Purchases of
investments
|
(1,637.8)
|
(2,100.7)
|
Proceeds from
investments
|
2,377.4
|
1,875.2
|
Other investing
activities
|
7.0
|
5.8
|
Cash Used for
Investing Activities
|
(3,857.2)
|
(2,732.9)
|
Financing
Activities
|
|
|
Long-term debt
proceeds
|
766.2
|
178.9
|
Payments on long-term
debt
|
(400.0)
|
(462.9)
|
Net increase in
commercial paper and short-term borrowings
|
17.9
|
1.0
|
Dividends paid to
shareholders
|
(1,383.3)
|
(1,256.7)
|
Proceeds from stock
option exercises
|
19.3
|
10.6
|
Investments by
noncontrolling interests
|
21.0
|
136.6
|
Other financing
activities
|
(41.7)
|
(28.4)
|
Cash Used for
Financing Activities
|
(1,000.6)
|
(1,420.9)
|
Discontinued
Operations
|
|
|
Cash provided by
operating activities
|
59.6
|
6.7
|
Cash provided by
investing activities
|
—
|
—
|
Cash provided by
financing activities
|
—
|
—
|
Cash Provided by
Discontinued Operations
|
59.6
|
6.7
|
Effect of Exchange
Rate Changes on Cash
|
(130.3)
|
27.8
|
Decrease in cash and
cash items
|
(1,757.9)
|
(784.1)
|
Cash and cash items –
Beginning of year
|
4,468.9
|
5,253.0
|
Cash and Cash Items
– End of Period
|
$2,711.0
|
$4,468.9
|
Supplemental Cash
Flow Information
|
|
|
Cash paid for taxes,
net of refunds (continuing operations)
|
$428.8
|
$390.5
|
Income tax refunds
(discontinued operations)
|
59.6
|
6.7
|
Air Products and
Chemicals, Inc. and Subsidiaries
|
SUMMARY BY BUSINESS
SEGMENTS
|
(Unaudited)
|
The segment results presented below reflect the segment
reorganization announced on 4 November
2021. For additional information on the reorganization,
refer to the Company's Current Report on Form 8-K dated
9 December 2021.
(Millions of
dollars)
|
Americas
|
Asia
|
Europe
|
Middle East
and
India
|
Corporate
and other
|
Total
|
|
Three Months Ended
30 September 2022
|
Sales
|
$1,541.9
|
$860.3
|
$863.7
|
$41.5
|
$262.6
|
$3,570.0
|
|
Operating income
(loss)
|
332.8
|
263.0
|
150.4
|
4.6
|
(50.6)
|
700.2
|
(A)
|
Depreciation and
amortization
|
160.0
|
106.3
|
46.2
|
7.1
|
13.2
|
332.8
|
|
Equity affiliates'
income
|
22.5
|
3.6
|
20.4
|
63.3
|
1.8
|
111.6
|
(A)
|
Three Months Ended
30 September 2021
|
Sales
|
$1,115.2
|
$754.0
|
$644.3
|
$29.7
|
$297.9
|
$2,841.1
|
|
Operating income
(loss)
|
290.3
|
205.9
|
125.0
|
11.2
|
(15.7)
|
616.7
|
(A)
|
Depreciation and
amortization
|
152.6
|
113.0
|
51.7
|
6.4
|
8.9
|
332.6
|
|
Equity affiliates'
income
|
33.3
|
11.7
|
23.7
|
22.0
|
1.1
|
91.8
|
(A)
|
|
|
|
|
|
|
|
|
(Millions of
dollars)
|
Americas
|
Asia
|
Europe
|
Middle East
and
India
|
Corporate
and other
|
Total
|
|
Twelve Months Ended
30 September 2022
|
Sales
|
$5,368.9
|
$3,143.3
|
$3,086.1
|
$129.5
|
$970.8
|
$12,698.6
|
|
Operating income
(loss)
|
1,174.4
|
898.3
|
503.4
|
21.1
|
(184.7)
|
2,412.5
|
(A)
|
Depreciation and
amortization
|
629.5
|
436.5
|
195.2
|
26.9
|
50.1
|
1,338.2
|
|
Equity affiliates'
income
|
98.2
|
22.1
|
78.2
|
293.9
|
3.9
|
496.3
|
(A)
|
Twelve Months Ended
30 September 2021
|
Sales
|
$4,167.6
|
$2,920.8
|
$2,345.6
|
$99.3
|
$789.7
|
$10,323.0
|
|
Operating income
(loss)
|
1,065.5
|
838.3
|
529.4
|
28.0
|
(193.4)
|
2,267.8
|
(A)
|
Depreciation and
amortization
|
611.9
|
444.4
|
204.5
|
25.3
|
35.2
|
1,321.3
|
|
Equity affiliates'
income
|
112.5
|
35.9
|
62.8
|
76.4
|
6.5
|
294.1
|
(A)
|
|
|
|
|
|
|
|
|
Total
Assets
|
|
|
|
|
|
|
|
30 September
2022
|
$8,237.7
|
$6,968.7
|
$3,645.1
|
$2,980.7
|
$5,360.4
|
$27,192.6
|
|
30 September
2021
|
7,092.5
|
7,349.4
|
3,830.3
|
800.6
|
7,786.4
|
26,859.2
|
|
(A)
Refer to the Reconciliations to Consolidated Results section
below.
|
Reconciliations to Consolidated Results
The table below reconciles total operating income disclosed in
the tables above to consolidated operating income as reflected on
our consolidated income statements:
|
Three Months
Ended
|
Twelve Months
Ended
|
|
30 September
|
30 September
|
Operating
Income
|
2022
|
2021
|
2022
|
2021
|
Total
|
$700.2
|
$616.7
|
$2,412.5
|
$2,267.8
|
Facility
closure
|
—
|
—
|
—
|
(23.2)
|
Business and asset
actions
|
(73.7)
|
—
|
(73.7)
|
—
|
Gain on exchange with
joint venture partner
|
—
|
—
|
—
|
36.8
|
Consolidated
Operating Income
|
$626.5
|
$616.7
|
$2,338.8
|
$2,281.4
|
The table below reconciles total equity affiliates' income
disclosed in the tables above to consolidated equity affiliates'
income as reflected on our consolidated income statements:
|
|
|
|
|
|
Three Months
Ended
|
Twelve Months
Ended
|
|
30 September
|
30 September
|
Equity Affiliates'
Income
|
2022
|
2021
|
2022
|
2021
|
Total
|
$111.6
|
$91.8
|
$496.3
|
$294.1
|
Equity method
investment impairment charge
|
(14.8)
|
—
|
(14.8)
|
—
|
Consolidated Equity
Affiliates' Income
|
$96.8
|
$91.8
|
$481.5
|
$294.1
|
RECONCILIATIONS OF NON-GAAP FINANCIAL
MEASURES
(Millions of dollars unless otherwise indicated,
except for per share data)
We present certain financial measures, other than in accordance
with U.S. generally accepted accounting principles ("GAAP"), on an
"adjusted" or "non-GAAP" basis. On a consolidated basis, these
measures include adjusted diluted earnings per share ("EPS"),
adjusted EBITDA, adjusted EBITDA margin, adjusted effective tax
rate, and capital expenditures. On a segment basis, these measures
include adjusted EBITDA and adjusted EBITDA margin. In addition to
these measures, we also present certain supplemental non-GAAP
financial measures to help the reader understand the impact that
certain disclosed items, or "non-GAAP adjustments," have on the
calculation of our adjusted diluted EPS. For each non-GAAP
financial measure, we present a reconciliation to the most directly
comparable financial measure calculated in accordance with
GAAP.
In many cases, non-GAAP financial measures are determined by
adjusting the most directly comparable GAAP measure to exclude
non-GAAP adjustments that we believe are not representative of our
underlying business performance. For example, we previously
excluded certain expenses associated with cost reduction actions,
impairment charges, and gains on disclosed transactions. The reader
should be aware that we may recognize similar losses or gains in
the future.
When applicable, the tax impact of our pre-tax non-GAAP
adjustments reflects the expected current and deferred income tax
impact of our non-GAAP adjustments. These tax impacts are primarily
driven by the statutory tax rate of the various relevant
jurisdictions and the taxability of the adjustments in those
jurisdictions.
We provide these non-GAAP financial measures to allow investors,
potential investors, securities analysts, and others to evaluate
the performance of our business in the same manner as our
management. We believe these measures, when viewed together with
financial results computed in accordance with GAAP, provide a more
complete understanding of the factors and trends affecting our
historical financial performance and projected future results.
However, we caution readers not to consider these measures in
isolation or as a substitute for the most directly comparable
measures calculated in accordance with GAAP. Readers should also
consider the limitations associated with these non-GAAP financial
measures, including the potential lack of comparability of these
measures from one company to another.
NON-GAAP ADJUSTMENTS
Our non-GAAP adjustments for the fourth quarter and fiscal year
ended 30 September 2022 are detailed
below. There were no non-GAAP adjustments in the fourth quarter of
fiscal year 2021. For information related to non-GAAP adjustments
for the fiscal year ended 30 September
2021, refer to Exhibit 99.1 to our Current Report on Form
8-K dated 4 November 2021.
Business and Asset Actions
During the fourth quarter of fiscal year 2022, we divested our
small industrial gas business in Russia due to Russia's invasion of Ukraine. As a result, we recorded a noncash
charge of $73.7 ($61.0 after tax, or $0.27 per share), which included transaction
costs and cumulative currency translation losses. This charge is
reflected as "Business and asset actions" on our consolidated
income statements and was not recorded in the results of our
Europe segment.
Equity Method Investment Impairment Charge
During the fourth quarter of fiscal year 2022, we determined there
was an other-than-temporary impairment in two small equity
affiliates in the Asia segment. As
a result, we recorded a noncash charge of $14.8 ($11.1 after
tax, or $0.05 per share) to write
down the full carrying value of the investments. This charge is
reflected on our consolidated income statements within "Equity
affiliates' income" and was not recorded in segment results.
Discontinued Operations
In the fourth quarter of fiscal year 2022, we recognized income
from discontinued operations, net of tax, of $12.6
($0.06 per share). This primarily
resulted from a net tax benefit recorded upon release of tax
liabilities for uncertain tax positions associated with our former
Performance Materials Division for which the statute of limitations
expired.
ADJUSTED DILUTED EPS
The table below provides a reconciliation to the most directly
comparable GAAP measure for each of the major components used to
calculate adjusted diluted EPS from continuing operations, which we
view as a key performance metric. In periods that we have non-GAAP
adjustments, we believe it is important for the reader to
understand the per share impact of each such adjustment because
management does not consider these impacts when evaluating
underlying business performance. Per share impacts are calculated
independently and may not sum to total diluted EPS and total
adjusted diluted EPS due to rounding.
|
|
|
|
|
|
|
Three Months Ended 30
September
|
Q4 2022 vs. Q4
2021
|
Operating
Income
|
Equity
Affiliates'
Income
|
Income Tax
Provision
|
Net Income
Attributable
to
Air
Products
|
Diluted
EPS
|
Q4 2022 GAAP
|
$626.5
|
$96.8
|
$130.6
|
$570.5
|
$2.56
|
Q4 2021 GAAP
|
616.7
|
91.8
|
125.3
|
558.6
|
2.51
|
Change GAAP
|
|
|
|
|
$0.05
|
% Change
GAAP
|
|
|
|
|
2 %
|
|
|
|
|
|
|
Q4 2022 GAAP
|
$626.5
|
$96.8
|
$130.6
|
$570.5
|
$2.56
|
Business and asset
actions
|
73.7
|
—
|
12.7
|
61.0
|
0.27
|
Equity method
investment impairment charge
|
—
|
14.8
|
3.7
|
11.1
|
0.05
|
Q4 2022 Non-GAAP ("Adjusted")
|
$700.2
|
$111.6
|
$147.0
|
$642.6
|
$2.89
|
|
|
|
|
|
|
Q4 2021 GAAP
|
$616.7
|
$91.8
|
$125.3
|
$558.6
|
$2.51
|
No non-GAAP
adjustments
|
—
|
—
|
—
|
—
|
—
|
Q4 2021 Non-GAAP ("Adjusted")
|
$616.7
|
$91.8
|
$125.3
|
$558.6
|
$2.51
|
Change Non-GAAP
("Adjusted")
|
|
|
|
|
$0.38
|
% Change Non-GAAP
("Adjusted")
|
|
|
|
|
15 %
|
|
|
|
|
|
|
|
Twelve Months Ended 30
September
|
2022 vs.
2021
|
Operating
Income
|
Equity
Affiliates'
Income
|
Income Tax
Provision
|
Net Income
Attributable
to
Air
Products
|
Diluted
EPS
|
2022 GAAP
|
$2,338.8
|
$481.5
|
$500.8
|
$2,243.5
|
$10.08
|
2021 GAAP
|
2,281.4
|
294.1
|
462.8
|
2,028.8
|
9.12
|
Change GAAP
|
|
|
|
|
$0.96
|
% Change
GAAP
|
|
|
|
|
11 %
|
|
|
|
|
|
|
2022 GAAP
|
$2,338.8
|
$481.5
|
$500.8
|
$2,243.5
|
$10.08
|
Business and asset
actions
|
73.7
|
—
|
12.7
|
61.0
|
0.27
|
Equity method
investment impairment charge
|
—
|
14.8
|
3.7
|
11.1
|
0.05
|
2022 Non-GAAP
("Adjusted")
|
$2,412.5
|
$496.3
|
$517.2
|
$2,315.6
|
$10.41
|
|
|
|
|
|
|
2021 GAAP
|
$2,281.4
|
$294.1
|
$462.8
|
$2,028.8
|
$9.12
|
Facility
closure
|
23.2
|
—
|
5.8
|
17.4
|
0.08
|
Gain on exchange with
joint venture partner
|
(36.8)
|
—
|
(9.5)
|
(27.3)
|
(0.12)
|
Tax election benefit
and other
|
—
|
—
|
12.2
|
(12.2)
|
(0.05)
|
2021 Non-GAAP
("Adjusted")
|
$2,267.8
|
$294.1
|
$471.3
|
$2,006.7
|
$9.02
|
Change Non-GAAP
("Adjusted")
|
|
|
|
|
$1.39
|
% Change Non-GAAP
("Adjusted")
|
|
|
|
|
15 %
|
ADJUSTED EBITDA AND ADJUSTED EBITDA MARGIN
We define adjusted EBITDA as net income less income (loss) from
discontinued operations, net of tax, and excluding non-GAAP
adjustments, which we do not believe to be indicative of underlying
business trends, before interest expense, other non-operating
income (expense), net, income tax provision, and depreciation and
amortization expense. Adjusted EBITDA and adjusted EBITDA margin
provide useful metrics for management to assess operating
performance. Margins are calculated independently for each period
by dividing each line item by consolidated sales for the respective
period and may not sum to total margin due to rounding.
The tables below present consolidated sales and a reconciliation
of net income on a GAAP basis to adjusted EBITDA and net income
margin on a GAAP basis to adjusted EBITDA margin:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Q1
|
|
Q2
|
|
Q3
|
|
Q4
|
|
FY2022
|
2022
|
$
|
|
Margin
|
|
$
|
Margin
|
|
$
|
Margin
|
|
$
|
Margin
|
|
$
|
Margin
|
Sales
|
$2,994.2
|
|
|
$2,945.1
|
|
|
$3,189.3
|
|
|
$3,570.0
|
|
|
$12,698.6
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income and net
income margin
|
$549.6
|
18.4 %
|
|
$536.8
|
18.2 %
|
|
$587.1
|
18.4 %
|
|
$593.0
|
16.6 %
|
|
$2,266.5
|
17.8 %
|
Less: Income from
discontinued operations, net of tax
|
—
|
— %
|
|
—
|
— %
|
|
—
|
— %
|
|
12.6
|
0.4 %
|
|
12.6
|
0.1 %
|
Add: Interest
expense
|
30.5
|
1.0 %
|
|
32.3
|
1.1 %
|
|
32.7
|
1.0 %
|
|
32.5
|
0.9 %
|
|
128.0
|
1.0 %
|
Less: Other
non-operating income (expense), net
|
22.6
|
0.8 %
|
|
9.1
|
0.3 %
|
|
10.5
|
0.3 %
|
|
20.2
|
0.6 %
|
|
62.4
|
0.5 %
|
Add: Income tax
provision
|
113.3
|
3.8 %
|
|
122.7
|
4.2 %
|
|
134.2
|
4.2 %
|
|
130.6
|
3.7 %
|
|
500.8
|
3.9 %
|
Add: Depreciation and
amortization
|
332.3
|
11.1 %
|
|
335.9
|
11.4 %
|
|
337.2
|
10.6 %
|
|
332.8
|
9.3 %
|
|
1,338.2
|
10.5 %
|
Add: Business and asset
actions
|
—
|
— %
|
|
—
|
— %
|
|
—
|
— %
|
|
73.7
|
2.1 %
|
|
73.7
|
0.6 %
|
Add: Equity method
investment impairment charge
|
—
|
— %
|
|
—
|
— %
|
|
—
|
— %
|
|
14.8
|
0.4 %
|
|
14.8
|
0.1 %
|
Adjusted EBITDA and
adjusted EBITDA margin
|
$1,003.1
|
33.5 %
|
|
$1,018.6
|
34.6 %
|
|
$1,080.7
|
33.9 %
|
|
$1,144.6
|
32.1 %
|
|
$4,247.0
|
33.4 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Q1
|
|
Q2
|
|
Q3
|
|
Q4
|
|
FY2021
|
2021
|
$
|
Margin
|
|
$
|
Margin
|
|
$
|
Margin
|
|
$
|
Margin
|
|
$
|
Margin
|
Sales
|
$2,375.2
|
|
|
$2,502.0
|
|
|
$2,604.7
|
|
|
$2,841.1
|
|
|
$10,323.0
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income and net
income margin
|
$486.7
|
20.5 %
|
|
$477.1
|
19.1 %
|
|
$532.3
|
20.4 %
|
|
$618.8
|
21.8 %
|
|
$2,114.9
|
20.5 %
|
Less: Income from
discontinued operations, net of tax
|
10.3
|
0.4 %
|
|
—
|
— %
|
|
8.2
|
0.3 %
|
|
51.8
|
1.8 %
|
|
70.3
|
0.7 %
|
Add: Interest
expense
|
36.7
|
1.5 %
|
|
36.1
|
1.4 %
|
|
35.6
|
1.4 %
|
|
33.4
|
1.2 %
|
|
141.8
|
1.4 %
|
Less: Other
non-operating income (expense), net
|
18.6
|
0.8 %
|
|
16.8
|
0.7 %
|
|
21.1
|
0.8 %
|
|
17.2
|
0.6 %
|
|
73.7
|
0.7 %
|
Add: Income tax
provision
|
113.9
|
4.8 %
|
|
121.9
|
4.9 %
|
|
101.7
|
3.9 %
|
|
125.3
|
4.4 %
|
|
462.8
|
4.5 %
|
Add: Depreciation and
amortization
|
323.7
|
13.6 %
|
|
329.3
|
13.2 %
|
|
335.7
|
12.9 %
|
|
332.6
|
11.7 %
|
|
1,321.3
|
12.8 %
|
Add: Facility
closure
|
—
|
— %
|
|
23.2
|
0.9 %
|
|
—
|
— %
|
|
—
|
— %
|
|
23.2
|
0.2 %
|
Less: Gain on exchange
with joint venture partner
|
—
|
— %
|
|
36.8
|
1.5 %
|
|
—
|
— %
|
|
—
|
— %
|
|
36.8
|
0.4 %
|
Adjusted EBITDA and
adjusted EBITDA margin
|
$932.1
|
39.2 %
|
|
$934.0
|
37.3 %
|
|
$976.0
|
37.5 %
|
|
$1,041.1
|
36.6 %
|
|
$3,883.2
|
37.6 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2022
vs. 2021
|
Q1
|
|
Q2
|
|
Q3
|
|
Q4
|
|
Total
|
Change
GAAP
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income $
change
|
$62.9
|
|
$59.7
|
|
$54.8
|
|
($25.8)
|
|
$151.6
|
Net income %
change
|
13 %
|
|
13 %
|
|
10 %
|
|
(4 %)
|
|
7 %
|
Net income margin
change
|
(210) bp
|
|
(90) bp
|
|
(200) bp
|
|
(520) bp
|
|
(270) bp
|
Change
Non-GAAP
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA $
change
|
$71.0
|
|
$84.6
|
|
$104.7
|
|
$103.5
|
|
$363.8
|
Adjusted EBITDA %
change
|
8 %
|
|
9 %
|
|
11 %
|
|
10 %
|
|
9 %
|
Adjusted EBITDA margin
change
|
(570) bp
|
|
(270) bp
|
|
(360) bp
|
|
(450) bp
|
|
(420) bp
|
The tables below present sales and a reconciliation of operating
income and operating margin to adjusted EBITDA and adjusted EBITDA
margin for the Company's three largest regional segments for
the three months ended 30 September
2022 and 2021:
Americas
|
Q4 FY22
|
Q4 FY21
|
|
$ Change
|
Change
|
Sales
|
$1,541.9
|
$1,115.2
|
|
$426.7
|
38 %
|
|
|
|
|
|
|
Operating
income
|
$332.8
|
$290.3
|
|
$42.5
|
15 %
|
Operating
margin
|
21.6 %
|
26.0 %
|
|
|
(440) bp
|
|
|
|
|
|
|
Reconciliation of GAAP
to Non-GAAP:
|
|
|
|
|
|
Operating
income
|
$332.8
|
$290.3
|
|
|
|
Add: Depreciation and
amortization
|
160.0
|
152.6
|
|
|
|
Add: Equity affiliates'
income
|
22.5
|
33.3
|
|
|
|
Adjusted
EBITDA
|
$515.3
|
$476.2
|
|
$39.1
|
8 %
|
Adjusted EBITDA
margin
|
33.4 %
|
42.7 %
|
|
|
(930) bp
|
Asia
|
Q4 FY22
|
Q4 FY21
|
|
$ Change
|
Change
|
Sales
|
$860.3
|
$754.0
|
|
$106.3
|
14 %
|
|
|
|
|
|
|
Operating
income
|
$263.0
|
$205.9
|
|
$57.1
|
28 %
|
Operating
margin
|
30.6 %
|
27.3 %
|
|
|
330 bp
|
|
|
|
|
|
|
Reconciliation of GAAP
to Non-GAAP:
|
|
|
|
|
|
Operating
income
|
$263.0
|
$205.9
|
|
|
|
Add: Depreciation and
amortization
|
106.3
|
113.0
|
|
|
|
Add: Equity affiliates'
income
|
3.6
|
11.7
|
|
|
|
Adjusted
EBITDA
|
$372.9
|
$330.6
|
|
$42.3
|
13 %
|
Adjusted EBITDA
margin
|
43.3 %
|
43.8 %
|
|
|
(50) bp
|
Europe
|
Q4 FY22
|
Q4 FY21
|
|
$ Change
|
Change
|
Sales
|
$863.7
|
$644.3
|
|
$219.4
|
34 %
|
|
|
|
|
|
|
Operating
income
|
$150.4
|
$125.0
|
|
$25.4
|
20 %
|
Operating
margin
|
17.4 %
|
19.4 %
|
|
|
(200) bp
|
|
|
|
|
|
|
Reconciliation of GAAP
to Non-GAAP:
|
|
|
|
|
|
Operating
income
|
$150.4
|
$125.0
|
|
|
|
Add: Depreciation and
amortization
|
46.2
|
51.7
|
|
|
|
Add: Equity affiliates'
income
|
20.4
|
23.7
|
|
|
|
Adjusted
EBITDA
|
$217.0
|
$200.4
|
|
$16.6
|
8 %
|
Adjusted EBITDA
margin
|
25.1 %
|
31.1 %
|
|
|
(600) bp
|
ADJUSTED EFFECTIVE TAX RATE
The effective tax rate equals the income tax provision divided
by income from continuing operations before taxes.
|
Twelve Months
Ended
30 September
|
|
2022
|
2021
|
Income tax
provision
|
$500.8
|
$462.8
|
Income from continuing
operations before taxes
|
2,754.7
|
2,507.4
|
Effective tax
rate
|
18.2 %
|
18.5 %
|
|
|
|
Income tax
provision
|
$500.8
|
$462.8
|
Facility
closure
|
—
|
5.8
|
Business and asset
actions
|
12.7
|
—
|
Gain on exchange with
joint venture partner
|
—
|
(9.5)
|
Equity method
investment impairment charge
|
3.7
|
—
|
Tax election benefit
and other
|
—
|
12.2
|
Adjusted income tax
provision
|
$517.2
|
$471.3
|
|
|
|
Income from continuing
operations before taxes
|
$2,754.7
|
$2,507.4
|
Facility
closure
|
—
|
23.2
|
Business and asset
actions
|
73.7
|
—
|
Gain on exchange with
joint venture partner
|
—
|
(36.8)
|
Equity method
investment impairment charge
|
14.8
|
—
|
Adjusted income from
continuing operations before taxes
|
$2,843.2
|
$2,493.8
|
|
|
|
Adjusted effective tax
rate
|
18.2 %
|
18.9 %
|
CAPITAL EXPENDITURES
We define capital expenditures as cash flows for additions to
plant and equipment, including long-term deposits, acquisitions
(less cash acquired), and investment in and advances to
unconsolidated affiliates. A reconciliation of cash used for
investing activities to our reported capital expenditures is
provided below:
|
Twelve Months
Ended
|
|
30 September
|
|
2022
|
2021
|
Cash used for investing
activities
|
$3,857.2
|
$2,732.9
|
Proceeds from sale of
assets and investments
|
46.2
|
37.5
|
Purchases of
investments
|
(1,637.8)
|
(2,100.7)
|
Proceeds from
investments
|
2,377.4
|
1,875.2
|
Other investing
activities
|
7.0
|
5.8
|
Capital
expenditures
|
$4,650.0
|
$2,550.7
|
The components of our capital expenditures are detailed in the
table below:
|
Twelve Months
Ended
|
|
30 September
|
|
2022
|
2021
|
Additions to plant and
equipment, including long-term deposits
|
$2,926.5
|
$2,464.2
|
Acquisitions, less cash
acquired
|
65.1
|
10.5
|
Investment in and
advances to unconsolidated affiliates(A)
|
1,658.4
|
76.0
|
Capital
expenditures
|
$4,650.0
|
$2,550.7
|
(A)
Investment in and advances to unconsolidated affiliates of $1.7
billion for the twelve months ended 30 September 2022 includes
approximately $130 from a non-controlling partner in one of our
subsidiaries for the initial investment in the Jazan gasification
and power project completed in the first quarter.
|
We expect capital expenditures for fiscal year 2023 to be
$5.0 to $5.5
billion.
It is not possible, without unreasonable efforts, to reconcile
our forecasted capital expenditures to future cash used for
investing activities because we are unable to identify the timing
or occurrence of our future investment activity, which is driven by
our assessment of competing opportunities at the time we enter into
transactions. These decisions, either individually or in the
aggregate, could have a significant effect on our cash used for
investing activities.
OUTLOOK
The guidance provided below is on an adjusted continuing
operations basis and is compared to adjusted historical diluted EPS
attributable to Air Products. These adjusted measures exclude the
impact of certain items that we believe are not representative of
our underlying business performance, such as the incurrence of
additional costs for cost reduction actions and impairment charges
or the recognition of gains or losses on disclosed items. The per
share impact for each non-GAAP adjustment is calculated
independently and may not sum to total adjusted diluted EPS due to
rounding.
It is not always possible to identify the timing or occurrence
of similar future events or the potential for other transactions
that may impact future GAAP EPS. Furthermore, it is not possible to
identify the potential significance of these events in advance;
however, any of these events, if they were to occur, could have a
significant effect on our future GAAP EPS. Accordingly, management
is unable to fully reconcile, without unreasonable efforts, the
Company's forecasted range of adjusted EPS on a continuing
operations basis to a comparable GAAP range.
|
|
|
|
|
Diluted
EPS
|
|
Q1
|
|
Full Year
|
2022 Diluted
EPS
|
$2.52
|
|
$10.08
|
Business and asset
actions
|
—
|
|
0.27
|
Equity method
investment impairment charge
|
—
|
|
0.05
|
2022 Adjusted Diluted
EPS
|
$2.52
|
|
$10.41
|
Per share impact of
non-service pension benefit, net(A)
|
(0.04)
|
|
(0.15)
|
2022 Adjusted Diluted
EPS, excluding per share impact of non-service pension benefit,
net(A)
|
$2.48
|
|
$10.25
|
2023
Adjusted Diluted EPS
Outlook(A)
|
$2.60–$2.80
|
|
$11.20–$11.50
|
$
Change(A)
|
0.12–0.32
|
|
0.95–1.25
|
%
Change(A)
|
5%–13%
|
|
9%–12%
|
(A)
Fiscal year 2022 diluted EPS has been adjusted as illustrated and
as discussed in the Adjusted Diluted EPS Reflecting
Adjustments for Non-Service Pension Impacts section below in
order to present fiscal year 2022 results and fiscal year 2023
guidance on a consistent basis. Actual non-service pension impacts
depend in part on external factors that are impossible to predict,
such as volatility in equity and debt markets. Accordingly,
management is unable to fully reconcile the earnings per share
impact of our projection to GAAP EPS.
|
ADJUSTED DILUTED EPS REFLECTING ADJUSTMENTS FOR NON-SERVICE
PENSION IMPACTS
Effective beginning in the first quarter of fiscal year 2023,
management will review adjusted earnings per share excluding the
impact of non-service related components of net periodic
benefit/cost for our defined benefit pension plans. Non-GAAP
financial measures for the first quarter and full year fiscal year
2022 have been recast accordingly in the table below to allow
readers to compare fiscal year 2022 results and fiscal year 2023
guidance on a consistent basis. The per share impacts reflected in
this table are calculated independently and may not sum to total
adjusted diluted EPS due to rounding. For additional time periods,
please refer to our Investor Relations website.
Non-service related components are recurring items that are
reflected within "Other non-operating income (expense), net" on our
consolidated income statements and include interest cost, expected
returns on plan assets, prior service cost amortization, actuarial
loss amortization, as well as costs for special termination
benefits, curtailments, and settlements.
|
Fiscal Year
2022
|
|
Q1
|
Full Year
|
Non-service pension
benefit, net – before tax
|
$12.0
|
$44.7
|
Tax impact
|
(2.9)
|
(10.8)
|
Non-service pension
benefit, net – after tax
|
$9.1
|
$33.9
|
|
|
|
Weighted Average Common
Shares — Diluted (in millions)
|
222.6
|
222.5
|
|
|
|
Non-GAAP Measures
Reflecting Adjustments for Non-Service Pension
Impacts:
|
|
|
Adjusted diluted EPS as
reported
|
$2.52
|
$10.41
|
Per share impact of
non-service pension benefit, net(A)
|
(0.04)
|
(0.15)
|
Adjusted diluted EPS,
excluding per share impact of non-service pension benefit,
net
|
$2.48
|
$10.25
|
(A)
Calculated as "Non-service pension benefit, net – after tax"
divided by "Weighted average common shares – diluted."
|
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content:https://www.prnewswire.com/news-releases/air-products-reports-fiscal-2022-fourth-quarter-gaap-eps-of-2-56-and-adjusted-eps-of-2-89--301667356.html
SOURCE Air Products