Q3 2024 Air Products and Chemicals Inc Earnings Call Transcript
Key Points
- Air Products & Chemicals Inc (APD) reported a 7% increase in adjusted earnings per share, exceeding the upper end of their prior guidance range.
- The company announced a significant green hydrogen supply agreement with Total Energy, validating their long-term strategy and demonstrating strong demand for green hydrogen.
- APD is maintaining its full-year adjusted earnings per share guidance of $12.20 to $12.50 and expects CapEx to be in the range of $5 billion to $5.5 billion for fiscal year 2024.
- The company achieved a 42% EBITDA margin, leading the industry and demonstrating a persistent focus on profitability.
- APD announced the planned sale of its LNG Process Technology & Equipment business to Honeywell for approximately EUR 1.8 billion, which will bolster their balance sheet and liquidity position.
- Overall sales volume was flat due to lower demand for merchant products, despite strong demand for hydrogen.
- The company experienced a 2% reduction in top-line revenue primarily due to unfavorable currency impacts.
- The Middle East and India segments saw declines in sales and operating income due to unfavorable merchant price and volume.
- The Asia segment reported unfavorable EBITDA and EBITDA margin, primarily driven by planned maintenance outages and lower demand for merchant products.
- The company faces uncertainties related to geopolitical situations, Federal Reserve decisions, and the upcoming election cycle, which could impact future performance.
Good morning, and welcome to Air Products' Third Quarter Earnings Release Conference Call. Today's call is being recorded at the request of Air Products. Please note that this presentation and the comments made on behalf of Air Products are subject to copyright by Air Products and all rights are reserved.
Beginning. Today's call is Mr. Fernando Suarez.
Thank you, Tamara, and good morning, everyone. Welcome to Air Products' Third Quarter 2024 earnings results teleconference. This is Sidd Manjeshwar, who are Vice President of Investor Relations. I am pleased to be joined today by Seifi Ghasemi, our Chairman, President and CEO, Melissa Shafer, our Chief Financial Officer, Sean Major, our Executive Vice President, General Counsel and Secretary, and Eric Goto, our incoming Head of Investor Relations. After our comments, we will be pleased to take your questions. Our earnings release and the slides for this call are available on our website at airproducts.com.
Today's discussion
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