gasworld Business Intelligence provides you with the latest analysis of Air Products’ Q4 2015 earnings report.
Headlines
- Total reported sales again down -8% at $2.36bn YoY.
- Operating income at $519m – returned growth to 17% YoY, its best performance in nearly five years.
- Operating margin at 22% continued improving trend of last two years, and was up 460bp YoY and reached its highest rate in over 25 years.
- Equity affiliates income (highest amongst peers) down -22% YoY in Q4, largely driven by currency.
- Selling and admin costs down -8% YoY, reflecting recent actions – while cost of sales were down over -13%.
- Further charge of $12m for business separation costs (Materials Technologies), and $14m for project suspension costs (UK Energy to Waste project).
- Focus on EBITDA reflected in 9% growth YoY in CYQ4, and 520bp improvement in EBITDA margin to over 33% of sales.
- Reported ROCE up 160 bp, at 11.7%.
- Free cash flow again solidly higher in Q4, with lower capex and higher EBITDA.
- EPS up 15% YoY in first quarter of FY2016.
- Proceeding on schedule with spin off Materials Technoloies business during FY2016.
- EPS outlook for FY2016 unchanged at $7.25-7.50 (up 10-14% vs FY2015).
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