Air Products and Chemicals, Inc. (NYSE:APD) Q2 2018 Earnings Conference Call - Final Transcript

Apr 26, 2018 • 10:00 am ET


Air Products and Chemicals, Inc. (NYSE:APD) Q2 2018 Earnings Conference Call - Final Transcript


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Good morning, and welcome to Air Products and Chemicals Second Quarter Earnings Release Conference Call. Today's call is being recorded at the request of Air Products. Please note that this presentation and the comments made on behalf of Air Products are subject to copyright by Air Products and all rights are reserved.

Beginning today's call is Mr. Simon Moore, VP of IR. Please go ahead, sir.

Simon Moore

Thank you, Vickie. Good morning, everyone. Welcome to Air Products' second quarter 2018 earnings results teleconference. This is Simon Moore, VP of IR. I'm pleased to be joined today by Seifi Ghasemi, our Chairman, President and CEO; Scott Crocco, our EVP and CFO; and Corning Painter, Air Products' EVP responsible for Industrial Gases. After our comments, we will be pleased to take your questions. Our earnings release and the slides for this call are available on our website at Please refer to the forward-looking statement disclosure that can be found in our earnings release and on slide number two.

Now I'm pleased to turn the call over to Seifi.

Seifi Ghasemi

Thank you, Simon, and good morning to everyone. Thank you for taking time from your very busiest schedule to be on our call today. We do appreciate your interest in Air Products. The talented, motivated and committed team at Air Products delivered yet another excellent set of safety and financial results in the second quarter of fiscal year 2018.

Our adjusted earning per share of $1.71 were up 20% versus last year. This is the 16th consecutive quarter that we have reported year-on-year EPS growth, and the fourth consecutive quarter we have delivered EPS growth of more than 15%. We continue to be the safest and most profitable industrial gas company in the world with EBITDA margins over 34% for the quarter. And most importantly, we have a great team of focused and committed people at Air Products who work hard every day to serve our customers and create value for our shareholders.

Now please turn to slide number three. We continue to improve our safety results with a reduction of 71% in our lost time injury rate and a reduction of 57% in our recordable injury rate. These results can only happen when all of our 15,000 employees around the world are totally focused on safety and continuous improvement. This same commitment to operational excellence is what is driving our strong financial performance.

Now please turn to slide number four, which is our goal for the company: to be the most -- the safest, most diverse and most profitable industrial gas company in the world, providing excellent service to our customers.

Now please turn to slide number five. Our overall management philosophy that we have talked to you about many times in the last four years. We continue to be focused on shareholder value, cash generation, capital allocation, and an empowered and decentralized organization.

On slide number six, you can see our 5-point plan, which has been the road map to our success over