Air Products & Chemicals Inc (NYSE:APD) reported first-quarter 2024 adjusted EPS of $2.82, up 7% year-over-year, missing the consensus of $3.00.
Sales declined 5.6% YoY to $2.997 billion, missing the consensus of $3.19 billion due to lower energy cost pass-through (-11% Y/Y).
Sales by segments: Americas $1.25 billion (-10% Y/Y) and Europe $731.2 million (-8% Y/Y), while Asia sales rose by 2% Y/Y to $793.8 million.
Operating profit rose 2.3% Y/Y to $667 million, and margin expanded by 171 bps to 22.3%
Adjusted EBITDA rose 8% Y/Y to $1.2 billion, with margins expanding 510 basis points to 39.2%.
APD raised its quarterly dividend to $1.77 from $1.75 in January 2024. The dividend is payable on May 13, 2024, to shareholders of record on April 1, 2024.
Air Products’ operating cash flow for the quarter totaled $626.6 million, down from $719.3 million in 2022.
“Our reported results were lower than our expectations, mainly due to a slowdown in manufacturing in Asia, particularly in China; lower helium demand; cost headwinds from a sale of equipment project; and currency devaluation in Argentina,” commented Seifi Ghasemi, Air Products’ Chairman, President and Chief Executive Officer.
2024 Guidance:Â Air Products lowered its Adjusted EPS outlook to $12.20-$12.50 (prior $12.80-$13.10) versus consensus of $12.97.
The company reiterated its 2024 capital expenditures outlook of $5.0 billion-$5.5 billion.
Q2 Guidance: Air Products sees Adjusted EPS Of $2.60-$2.75 versus consensus Of $3.16.
Price Action:Â APD shares are trading lower by 14.74% at $220.11 on the last check Monday.
