Air Products has reported fiscal Q2 2023 sales of $3.2bn, up 9% versus the prior year, in its latest financial results.

For the quarter, the industrial gas giant reported GAAP net income of $450m, down 16%, and GAAP net income margin of 14.1%,

GAAP EPS from continuing operations of $1.97, down 17% from prior year.

Seifi Ghasemi, President and CEO of Air Products, said he is proud of the team’s continued achievements despite the ongoing economic and geopolitical challenges in the world.

“Our team successfully drove pricing and volumes in our base business, delivering critical productivity, efficiency and sustainability benefits for our customers,” he added.

Results by business segment

Americas sales of $1.4bn were up 16% over the prior year on 9% higher volumes and 8% higher pricing, partially offset by 1% unfavourable currency.

Operating income of $324m increased 18% and adjusted EBITDA of $514m increased 14%, in each case due to higher pricing and higher volumes, partially offset by higher costs.

Operating margin of 23.6% increased 40 basis points primarily due to higher pricing, while adjusted EBITDA margin of 37.4% decreased 50 basis points.

Asia sales of $814m increased 8% over the prior year, as 7% higher volumes, 5% higher pricing and 3% higher energy cost pass-through more than offset seven percent unfavourable currency.

Operating income of $233m increased 14% and adjusted EBITDA of $350m increased 9%, in each case due to the favourable volumes and pricing, partially offset by higher costs and unfavourable currency.

Operating margin of 28.6% increased 150 basis points and adjusted EBITDA margin of 43% increased 20 basis points.

Europe sales of $753m increased 2% over the prior year, driven by 11% higher pricing and three percent higher volumes, partially offset by six percent lower energy cost pass-through and 6% unfavourable currency.

Operating income of $173m increased 49% and adjusted EBITDA of $251m increased 32%, in each case primarily driven by higher pricing.

Operating margin of 23% increased 720 basis points and adjusted EBITDA margin of 33.3% increased 760 basis points.

Middle East and India equity affiliates’ income of $99m increased 39% compared to the prior year, primarily due to the completion of the second phase of the Jazan project.

Corporate and other sales of $215m decreased 10% compared to the prior year, driven by lower sale of equipment activity.

Outlook

Air Products expects full-year fiscal 2023 adjusted EPS guidance of $11.30 to $11.50, up 10 to 12% over prior year adjusted EPS.

For the fiscal 2023 Q3, Air Products’ adjusted EPS guidance is $2.85 to $2.95, up 10%-14% over fiscal 2022 third quarter adjusted EPS.