Name: Air Products & Chemicals Inc. (NYSE:APD) | Income Statement
Creator: Stock Analysis on Net

Income Statement

The income statement presents information on the financial results of a company business activities over a period of time. The income statement communicates how much revenue the company generated during a period and what cost it incurred in connection with generating that revenue.

Download chart

Air Products & Chemicals Inc., consolidated income statement

US$ in thousands

12 months ended:	Sep 30, 2020	Sep 30, 2019	Sep 30, 2018	Sep 30, 2017	Sep 30, 2016	Sep 30, 2015
Sales	8,856,300)	8,918,900)	8,930,200)	8,187,600)	9,524,400)	9,894,900)
Cost of sales	(5,858,100)	(5,975,500)	(6,189,500)	(5,753,400)	(6,402,700)	(6,944,100)
Facility closure	—)	(29,000)	—)	—)	—)	—)
Gross profit	2,998,200)	2,914,400)	2,740,700)	2,434,200)	3,121,700)	2,950,800)
Selling and administrative	(775,900)	(750,000)	(760,800)	(715,600)	(849,300)	(941,700)
Research and development	(83,900)	(72,900)	(64,500)	(57,800)	(132,000)	(138,800)
Business separation costs	—)	—)	—)	(30,200)	(52,200)	(7,500)
Cost reduction actions	—)	(25,500)	—)	(151,400)	(33,900)	(207,700)
Pension settlement loss	—)	—)	—)	(10,500)	(6,400)	(21,200)
Goodwill and intangible asset impairment charge	—)	—)	—)	(162,100)	—)	—)
Gain on exchange of equity affiliate investments	—)	29,100)	—)	—)	—)	17,900)
Company headquarters relocation income	33,800)	—)	—)	—)	—)	—)
Other income (expense), net	65,400)	49,300)	50,200)	121,000)	58,100)	47,300)
Operating income	2,237,600)	2,144,400)	1,965,600)	1,427,600)	2,106,000)	1,699,100)
Equity affiliates’ income	264,800)	215,400)	174,800)	80,100)	148,600)	154,500)
Interest expense	(109,300)	(137,000)	(130,500)	(120,600)	(115,500)	(103,500)
Other non-operating income (expense), net	30,700)	66,700)	5,100)	29,000)	—)	—)
Loss on extinguishment of debt	—)	—)	—)	—)	(6,900)	(16,600)
Income from continuing operations before taxes	2,423,800)	2,289,500)	2,015,000)	1,416,100)	2,132,200)	1,733,500)
Income tax provision	(478,400)	(480,100)	(524,300)	(260,900)	(586,500)	(415,900)
Income from continuing operations	1,945,400)	1,809,400)	1,490,700)	1,155,200)	1,545,700)	1,317,600)
Income (loss) from discontinued operations, net of tax	(14,300)	—)	42,200)	1,866,000)	(884,200)	—)
Net income	1,931,100)	1,809,400)	1,532,900)	3,021,200)	661,500)	1,317,600)
Net income attributable to noncontrolling interests	(44,400)	(49,400)	(35,100)	(20,800)	(30,400)	(39,700)
Net income attributable to Air Products	1,886,700)	1,760,000)	1,497,800)	3,000,400)	631,100)	1,277,900)

Based on: 10-K (reporting date: 2020-09-30), 10-K (reporting date: 2019-09-30), 10-K (reporting date: 2018-09-30), 10-K (reporting date: 2017-09-30), 10-K (reporting date: 2016-09-30), 10-K (reporting date: 2015-09-30).

Revenue experienced a period of volatility between 2015 and 2020, declining from 9.89 billion US dollars in 2015 to a low of 8.18 billion US dollars in 2017, before stabilizing around 8.85 billion US dollars by 2020. Despite the fluctuations in top-line sales, gross profit demonstrated a recovery trend after 2017, increasing from 2.43 billion US dollars to 2.99 billion US dollars by the end of the period. This suggests an improvement in production efficiency or a shift toward higher-margin offerings.

Operating Performance and Expense Management: Operating income showed a strong upward trajectory following a dip in 2017, rising from 1.42 billion US dollars to 2.23 billion US dollars in 2020. This growth is supported by a general reduction in selling and administrative expenses, which decreased from 941.7 million US dollars in 2015 to 775.9 million US dollars in 2020. Research and development spending remained relatively low compared to other operating costs, though it saw a gradual increase from 57.8 million US dollars in 2017 to 83.9 million US dollars in 2020.
Non-Operating Factors and Strategic Gains: Income from equity affiliates grew consistently, increasing from 154.5 million US dollars in 2015 to 264.8 million US dollars in 2020, contributing positively to the pre-tax income. Interest expenses remained relatively stable throughout the period, fluctuating between 103.5 million and 137 million US dollars, indicating a consistent debt service profile. Occasional gains, such as the headquarters relocation income of 33.8 million US dollars in 2020, provided minor boosts to the bottom line.
Net Income and Discontinued Operations: Net income attributable to the company was characterized by significant volatility due to discontinued operations. A substantial loss of 884.2 million US dollars in 2016 was followed by a massive gain of 1.86 billion US dollars in 2017, resulting in a peak net income attributable to the company of 3 billion US dollars for that year. Excluding these anomalies, the core income from continuing operations showed a steady climb from 1.31 billion US dollars in 2015 to 1.94 billion US dollars in 2020.

The overall financial trend indicates a transition from a period of restructuring and asset impairment around 2017 toward a more stable and profitable operational phase. The growth in operating income, coupled with disciplined administrative spending and increasing contributions from equity affiliates, points to improved operational leverage over the six-year period.

AI Ask an analyst for more

Hi, I’m an AI-powered financial analyst at Stock Analysis on Net.

How can I help you?