uploads///Part  ASIAQ

APD’s Industrial Gases–Asia Revenues Rose on New Business Growth


Nov. 1 2017, Updated 9:01 a.m. ET

Industrial Gases–Asia segment

Air Products and Chemicals’ (APD) Industrial Gases–Asia segment accounted for 25.0% of APD’s total revenues in fiscal 4Q17 compared to 23.0% in fiscal 4Q16, a decrease of 2.0% on a year-over-year basis. 

The segment reported revenues of $552.2 million—an increase of 23.0% over the previous year. In fiscal 4Q16, the segment reported revenues of $448.9 million.

Air Products and Chemicals’ (APD) Industrial Gases–Asia segment’s revenue growth was primarily driven by higher volume growth due to new business deals in China. Apart from China, business growth was also noted in South Korea and Malaysia.

The other major factor for the segment’s revenue growth was due to higher pricing in the region, which helped increase its revenues 6.0%. The currency fluctuation did not have any major impact on this segment.

Article continues below advertisement

Operating income and margin

Air Products and Chemicals’ (APD) Industrial Gases–Asia segment reported operating income of $152.0 million in 4Q17, a 38.2% increase from $110.0 million in fiscal 4Q16 YoY.

The segment’s higher revenue growth and pricing resulted in higher operating income and operating margins. 

The segment reported an operating margin of 27.5% compared to 24.5% in fiscal 3Q16. This trend represents an increase of 300 basis points on a YoY basis.


Air Products and Chemicals’ (APD) Industrial Gases–Asia segment is expected to continue its upward trend, primarily driven by continued demand in China. The new business deal is expected to drive the segment’s growth.

Investors can indirectly invest in Air Products and Chemicals by investing in the Vanguard Materials ETF (VAW). VAW has invested 3.8% of its portfolio in Air Products and Chemicals. 

The fund’s other holdings include DowDuPont (DWDP), Monsanto (MON), and Praxair (PX), which had weights of 18.4%, 5.8%, and 4.6%, respectively, on October 26, 2017.


More From Market Realist

    • CONNECT with Market Realist
    • Link to Facebook
    • Link to Twitter
    • Link to Instagram
    • Link to Email Subscribe
    Market Realist Logo
    Do Not Sell My Personal Information

    © Copyright 2021 Market Realist. Market Realist is a registered trademark. All Rights Reserved. People may receive compensation for some links to products and services on this website. Offers may be subject to change without notice.