The following is a summary of the Air Products and Chemicals, Inc. (APD) Q2 2024 Earnings Call Transcript:
Financial Performance:
Air Products reported Q2 adjusted earnings per share of $2.85, a 4% improvement from last year, mainly due to strong performances in the Americas and Europe.
The adjusted earnings per share guidance for Q3 2024 is between $3.00 and $3.05. The company maintains its full-year guidance of $12.20 to $12.50 per share.
The capital expenditure for the fiscal year 2024 is expected to be between $5 billion and $5.5 billion.
The dividend per share per quarter has been increased to $1.77, marking the 42nd year of consecutive dividend increases.
Despite inflation, the company improved its pricing with a 6% increase in U.S. merchant pricing during Q2 2024.
Business Progress:
The company's industrial gases business and large-scale, low-carbon hydrogen projects are key drivers of growth and sustainability.
Significant improvements were observed in productivity during the execution of their long-term growth strategy.
Management aims for more than 10% annual growth in adjusted earnings per share over the next decade.
Major increases in Q3 2024 maintenance costs are expected due to turnarounds in the Americas and Europe operations.
Cost actions, including severance costs, are expected to generate around $75 million in full-year savings.
The ongoing green hydrogen project in Saudi Arabia shows progress; the finalization of rules for the implementation of the ITA is awaited for making financial decisions for the North Texas project.
Upcoming new plants are anticipated to contribute to volume growth, positioning the company favorably for better-than-expected Q2 2024 results.
The company plans to operate their Steam Methane Reformers (SMRs) only with carbon capture in 15 years, a significant step towards more sustainable operations.
More details: Air Products & Chemicals IR
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