Business Intelligence Financial – Air Products – Q4 2014


gasworld’s Business Intelligence provides you with the latest analysis of Air Products’ Q4 2014 earnings reports.


  • Total sales virtually flat year on year at $2.56bn after nearly three years of growth.
  • Operating Income again showed strong growth over +10% YoY continuing acceleration over recent years. Driven by improved volumes and pricing (around half) and costs reduction and efficiency (also around half). Latest actions involve reduction of around 500 heads.
  • Operating margin remained above trend of recent years and was up over 200bp YoY.
  • New organisation and reporting structure introduced for first time – primarily regional gases structure.
  • Selling & Admin costs down -8% YoY.
  • New focus on EBITDA reflected in +10% growth YoY in Q4 and 240bp improvement in EBITDA margin to to over 28% of sales. However Free Cash flow down due to increased Capex on project timing.
  • EPS up +16% YoY.
  • Strongest underlying growth for over three years driven by solid volume contribution (+4%) and pricing impact again positive (+1%) as seen over previous year.
  • No significant overall impact from energy cost pass-through or acquisitions but currency had significant negative impact of nearly -3%. Energy pass-through significant positive impact (+2%) in Americas offset by negative impacts in both EMEA and Asia (both -2%).

Air Products Business Performance

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