For the quarter ended 30th September (2020), Air Products reported GAAP EPS from continuing operations of $2.19, down 4%; GAAP net income of $495m, down 5%, and GAAP net income margin of 21.3%, down 140 basis points against the prior year.
Q4 sales of $2.3m increased 2%, as 2% higher pricing and 1% favourable currency more than offset 1% lower energy pass-through.
Results by segment
Americas sales of $912m decreased 3% from the prior year. 3% lower volumes, primarily due to lower merchant demand impacts from COVID-19, 1% unfavourable currency and 1% lower energy pass-through were partially offset by 2% higher pricing.
Operating income of $239m decreased 8%, as higher pricing was more than offset by lower volumes and higher planned maintenance. Operating margin of 26.2% decreased 160 basis points.
Adjusted EBITDA of $411m was flat, as higher pricing and a hydrogen acquisition were offset by lower volumes and higher planned maintenance activities. Adjusted EBITDA margin of 45% increased 110 basis points.
EMA sales of $505m increased 3% over the prior year. Volumes were flat despite lower merchant demand from COVID-19. 2% higher pricing and 4% favourable currency more than offset 3% lower energy pass-through.
Operating income of $123m increased 2%, primarily due to higher pricing and favourable currency but partially offset by lower volumes and increased costs, and operating margin of 24.4% decreased 30 basis points.
Adjusted EBITDA of $200m increased 4%, primarily due to higher pricing and favourable currency, partially offset by lower volumes and increased costs. Adjusted EBITDA margin of 39.6% increased 10 basis points.
Asia sales of $714m decreased 2% from the prior year. Volumes decreased 5%, primarily due to continuing adverse effects of COVID-19, the impact of a customer outage, and the end of a short-term contract that contributed to the prior year. Pricing increased 2%, with higher pricing across most major product lines.
Operating income of $211m decreased 9%, primarily due to the lower volume, and operating margin of 29.5% decreased 210 basis points.
Adjusted EBITDA of $330m decreased 7%, primarily due to lower volume, and adjusted EBITDA margin of 46.3% decreased 200 basis points.