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Air Products and Chemicals, Inc., a Delaware corporation founded in 1940, serves customers globally with unique products, services, and solutions that include atmospheric gases, process and specialty gases, equipment, and services. The company is the world’s largest supplier of hydrogen and has leading positions in growth markets such as helium and natural gas liquefaction. The company designs and manufactures equipment for air separation, hydrocarbon recovery and purification, natural gas liquefaction ("LNG"), and liquid helium and liquid hydrogen transport and storage.

The company manages its operations under five reporting segments: Industrial Gases – Americas (400 production and distribution facilities); Industrial Gases – EMEA (Europe, Middle East and Africa – 180 production and distribution facilities); Industrial Gases – Asia (170 production and distribution facilities); Industrial Gases – Global; and Corporate and other.

The company’s Industrial Gas business produces atmospheric gases (oxygen, nitrogen, argon, and rare gases); process gases (hydrogen, helium, carbon dioxide, carbon monoxide, syngas, and specialty gases); and equipment for the production or processing of gases, such as air separation units and non-cryogenic generators. The Industrial Gases – Global segment includes activity related to cryogenic and gas processing equipment for air separation. The equipment is sold worldwide to customers in such industries as chemical and petrochemical manufacturing, oil and gas recovery and processing, steel and primary metal processing. The Corporate and other segment includes the LNG equipment business, Gardner Cryogenics business fabricating helium and hydrogen transport and storage containers. The company, through its subsidiaries, conducts business in 50 countries outside the United States and has approximately 16,300 employees.

According to the company´s Annual Financial Report in 2018, Air Products´ sales of  $8.9 billion increased by 9% or $742 million, compared to $8,187.6 million in 2017, primarily driven by higher volumes from a base business growth of 7%, new large industrial gas project, and favourable currency impacts of 2%. Air Products delivered an operating margin of 22.0% and an adjusted EBITDA margin of 34.9%, primarily due to the goodwill and intangible asset impairment charge, cost reduction and asset actions, and business separation costs in 2017. Adjusted EBITDA (as income from continuing operations excluding certain disclosed items) of $3,115.5 million increased by 11%, or $316.3 million, primarily due to higher volumes, favourable currency, positive pricing, and income from regional industrial gas equity affiliates. Diluted EPS of $6.59 increased 28% or $1.43 over the previous year. Operating income of $1,965.6 million increased by 37%, or by $525.6 million, due to higher volumes of $204 million, a prior year goodwill and intangible asset impairment charge of $162 million, previous year cost reduction and asset actions of $151 million, and favourable currency impacts of $47.

On a non-GAAP basis adjusted operating income of $1,941.5 million increased by 9% or $167.7 million, primarily due to higher volumes, favourable currency impacts, and favourable pricing, net of energy, fuel, and raw material costs. Adjusted operating margin of 21.7% was flat as higher volumes and favourable pricing, net of power costs, were mostly offset by higher costs. Adjusted EBITDA of $3,115.5 million increased by 11%, or $316.3 million compared to $2,799.2 million in 2017.

In 2018 Air Products increased its quarterly dividend by 16% from $0.95 to $1.10 per share, or $4.40 per share annually, the largest increase in the company´s history. This represents the 36th consecutive year that the company has increased its dividend payment.

Cost of sales of $6,189.5 million increased 8%, or $438.0 million, compared to $5,751.5 million in 2017, primarily due to higher costs attributable to sales volumes of $225 million, unfavourable currency impacts of $133 million, and higher other costs, including maintenance costs. Selling and administrative expense of $760.8 million increased by 7%, or $47.3 million compared to $713.5 million in 2017, primarily driven by unfavourable currency impacts and higher costs to support growth opportunities.

Research and development expense of $64.5 million increased by 12%, or $6.9 million in 2018 compared to $57.6 million in 2017. Research and development expense as a percentage of sales in 2018 and 2017 was 7%.

Segmentally, Industrial Gases (Americas) recorded sales of $3,758.8 million, an increase of 3% or $121.8 million in 2018, driven by higher hydrogen volumes in North America. Operating income within the segment decreased to $927.9 million, by 2%, or $18.2 million in 2018, primarily due to higher costs of $84 million and lower pricing, net of power and fuel costs of $13 million.

Industrial Gases (EMEA) segment sales amounted to $2,193.3 million in 2018 and increased by 23%, or $412.9 million, driven by a hydrogen plant in India and higher merchant volumes. Operating income of the segment amounted to $445.8 million and increased by 13%, or $50.3 million, due to higher volumes of $38 million, favourable currency impacts of $26 million, and higher pricing, net of power and fuel costs, of $4 million.

Industrial Gases (Asia) segment sales reached $2,458.0 million and increased by 25% or $493.3 million in 2018, driven by new plant on-streams, including the Lu'An project, an equipment sale resulting from the termination of a contract in the first quarter of 2018. (In 2018 Air Products completed the formation of a syngas supply joint venture with Lu'An, including the acquisition of Lu'An's gasification and syngas purification assets). Operating income of $689.9 million increased by 30%, or $157.3 million, compared to $532 million in 2017, due to higher volumes of $107, favourable price, net of power costs, of $53 million, and favourable currency impacts of $21 million.

The Industrial Gases (Global) segment includes sales of cryogenic and gas processing equipment for air separation and recorded a decrease in sales of 40% or $286.8 million from $722.9 million in 2017 to $436.1 million in 2018, driven by lower sale of equipment activity on the multiple air separation units that will serve Saudi Aramco’s Jazan oil refinery and power plant in Saudi Arabia. The company expects to complete this project in 2019. Operating income of $53.9 million decreased by 24%, or $17.2 million, primarily due to the lower sale of equipment activity.

The sales of $84 million within the Corporate and Other segment increased by 2% or $1.4 million in 2018. Operating loss of $176.0 million increased by 3%, or $4.5 million.

For the year ended 2018, cash provided by operating activities was $2,554.7 million, compared to $2,534.1 million in 2017 and $2,258.9 in 2016.

In 2019 the company intends to grow its earnings by continuing to improve base businesses and by bringing new, large projects on-stream and expects the full year impact of the Lu'An project to be a large contributor to the earnings growth.