Source: Air Products
Source: Air Products

Air Products sees sales slip 6% in first quarter

Air Products has released its first quarter results, reporting sales of $3bn, down 6% for the prior year.

The fiscal year of the industrial gases major runs from October to September, so its Q1 figures are for the period to end-December 2023.

Seifi Ghasemi, Chairman, President, and CEO, said “significant” geopolitical and economic headwinds had impacted performance.

“Our reported results were lower than our expectations, mainly due to a slowdown in manufacturing in Asia, particularly in China, [with] lower helium demand, cost headwinds from a sale of equipment project, and currency devaluation in Argentina,” he said.

Read more: Slowing helium demand knocks Air Products quarterly results

Despite the conditions, Air Products’ earnings per share  for the quarter were $2.73, up 6% from the prior year. GAAP net income was also up 6% to reach $622m.

Adjusted EBITDA of $1.2bn was up 8% over the prior year, due to higher equity affiliates’ income, higher volumes, and higher pricing, partially offset by higher costs.

Results by region

Americas sales of $1.3bn were down 10% versus the prior year, as 3% higher volumes driven by strong hydrogen demand and 2% higher pricing were more than offset by 15% lower energy cost pass-through.

Operating income of $354m increased 3% and adjusted EBITDA of $561m increased 9%, in each case primarily due to higher pricing and volumes, partially offset by higher costs.

Asia sales of $794m increased 2% over the prior year, as 2% higher energy cost pass-through and 1% higher pricing were partially offset by 1% unfavourable currency. Volumes were flat, as higher on-site volumes were offset by weak economic growth in China and lower activity in helium.

Europe sales of $731m decreased 8% from the prior year, as 9% favourable volumes driven by our on-site business and 5% favourable currency were more than offset by 20% lower energy cost pass-through and 2% lower pricing.

Operating income of $198m increased 36% and adjusted EBITDA of $267m increased 28%, as higher volumes, lower power costs, and favourable currency more than offset inflation and higher maintenance costs.

Middle East and India equity affiliates income of $93m increased 45% compared to the prior year, primarily due to the completion of the second phase of the Jazan project in January 2023.

Corporate and other sales of $185m increased 3% compared to the prior year and reflected higher LNG sale-of-equipment activity.


Ghasemi said he was optimistic for the remainder of 2024.

“We are moving forward to successfully implement our ambitious, long-term growth strategy through our core industrial gases business and as a leader in low-carbon intensity hydrogen.”

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